Document:

EXHIBIT
10.2

    

    

    SIGNPATH
PHARMA INC. 2009 EMPLOYEE STOCK

    INCENTIVE
PLAN

    (Approved
and adopted by the Board of Directors on February 9, 2009)

    

    STATEMENT
OF PURPOSE

    

    The
SignPath Pharma Inc. 2008 Employee Stock Incentive Plan is intended to afford an
incentive to employees, corporate officers, directors, consultants and other key
persons employed or retained by SIGNPATH PHARMA INC. (the “Company”) and its
subsidiaries and affiliates to acquire a proprietary interest in the Company and
to enable the Company and its subsidiaries and affiliates to attract and retain
such persons.

    

    DEFINITIONS

    

    For
purposes of the Plan, the following terms are defined as set forth
below:

    

    a.  “10% Holder”  shall
mean any person who, for purposes of Section 422 of the Code owns more than 10%
of the total combined voting power of all classes of stock of the employer
corporation or of any Subsidiary.

    

    b.  "Award" means a Stock Option,
Stock Appreciation Right or Restricted Stock.

    

    c.  "Board" means the Board of
Directors of the Company.

    

    d.  "Change of Control" has the
meaning set forth in Section 4.3.1.

    

    e.  "Code" means the Internal
Revenue Code of 1986, as amended from time to time, and any successor
thereto.

    

    f.  "Committee" means the
Committee referred to in Section 3.1.

    

    g.  "Common Stock" means common
stock, par value $.001 per share, of the Company.

    

    h.  "Company" means SignPath
Pharma Inc., a Delaware corporation.

    

    i.  "Covered Employee" means a
participant designated prior to the grant of Restricted Stock by the Committee
who is or may be a "covered employee" within the meaning of Section 162(m)(3) of
the Code in the year in which Restricted Stock is expected to be taxable to such
participant.

    

    j.  "Eligible Persons” means the
Eligible Persons referred to in Section 2 of the Plan.

    

    k.  "Exchange Act" means the
Securities Exchange Act of 1934, as amended from time to time, and any successor
thereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    l.  "Fair Market Value" means, as
of any given date, (i) if the Common Stock is listed or admitted to trade on a
national securities exchange, the closing price of the Common Stock on the
Composite Tape, as published in The Wall Street Journal, of the principal
national securities exchange on which the Common Stock is so listed or admitted
to trade, on such date, or, if there is no
trading of the Common Stock on such date, then the closing price of the Common
Stock as quoted on such Composite Tape on the next preceding date on which there
was trading in such shares; (ii) if the Common Stock is not listed or admitted
to trade on a national securities exchange, the mean between the closing bid and
asked price for the Common Stock on such date, as furnished by the
Over-The-Counter Bulletin Board (the “OTCBB”) maintained by FINRA; (iii) if the
Common Stock is not listed or admitted to trade on a national securities
exchange and closing bid and asked prices are not furnished by the OTCBB, the
mean between the closing bid and asked price for the Common Stock on such date,
as furnished by the Pink Sheets, LLC (“Pink Sheets”) or similar organization;
and (iv) if the stock is not listed or admitted to trade on a national
securities exchange and if bid and asked prices for the Common Stock are not
furnished by the OTCBB, Pink Sheets or a similar organization, the value
established in good faith by the Committee taking into account such facts and
circumstances deemed to be material by the Committee to the value of the Common
Stock in the hands of the Eligible Person.

    

    Notwithstanding
the foregoing, for purposes of granted Non-Qualified Stock Options or Stock
Appreciation Rights, Fair Market Value of Common Stock shall be determined in
accordance with the requirements of Code Section 409A, and for purposes of
granting Incentive Stock Options, Fair Market Value of Common Stock shall be
determined in accordance with the requirements of Code Section 422.

    

    m.  "Incentive Stock Option"
means any Stock Option designated as, and intended to qualify as, an "incentive
stock option" within the meaning of Section 422 of the Code.

    

    n.  "Non-Qualified Stock Option"
means any Stock Option that is not an Incentive Stock Option.

    

    o.  "Performance Goals" means the
performance goals established by the Committee in connection with the grant of
Restricted Stock.

    

    p.  "Plan" means the SignPath
Pharma Inc. 2009 Employee Stock Incentive Plan, as set forth herein and as
hereinafter amended from time to time.

    

    q.  "Qualified Performance-Based
Award" means an Award of Restricted Stock designated as such by the
Committee at the time of grant, based upon a determination that (i) the
recipient is or may be a "covered employee" within the meaning of Section
162(m)(3) of the Code in the year in which the Company would expect to be able
to claim a tax deduction with respect to such Restricted Stock and (ii) the
Committee wishes such Award to qualify for the Section 162(m)
Exemption.

    

    r.  "Restricted Stock" means an
Award granted under Section 6.

    

    s.  "Section 162(m) Exemption"
means the exemption from the limitation on deductibility imposed by Section
162(m) of the Code that is set forth in Section 162(m)(4)(C) of the
Code.

    

    t.  "Stock Appreciation Right"
means an Award granted under Section 5.

    

    u.  "Stock Option” means an Award
granted under Section 4.

     

    
      
         

      

      
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    v.  “Subsidiary” shall have the
meaning given to the term "Subsidiary corporation" in Section 424(f) of the
Code.

    

    w.  "Termination of Employment"
means the termination of the participant's employment with the Company and any
of its Subsidiaries. A participant employed by a Subsidiary shall also be deemed
to incur a Termination of Employment if the Subsidiary ceases to be such a
Subsidiary, and the participant does not immediately thereafter become an
employee of the Company or another Subsidiary. Temporary absences from
employment because of illness, vacation or leave of absence and transfers among
the Company and its Subsidiaries shall not be considered Terminations of
Employment. If so determined by the Committee, a participant shall be deemed not
to have incurred a Termination of Employment if the participant enters into a
contract with the Company or a Subsidiary providing for the rendering by the
participant of consulting services to the Company or such Subsidiary on terms
approved by the Committee; however, Termination of Employment of the participant
shall occur when such contract ceases to be in effect.

    

    In
addition, certain other terms used herein have definitions given to them in the
first place in which they are used.

    

    STATEMENT
OF THE PLAN

    

    
      1.  Shares
Subject to the Plan.

    

    

    Subject
to the provisions of Section 7, the maximum number of shares which may be issued
under the Plan shall be five hundred thousand (500,000) shares of Common Stock,
par value $.001 per share, of the Company (the "Shares”). The Company shall at
all times while the Plan is in effect reserve such number of shares of Common
Stock as will be sufficient to satisfy the requirements of outstanding Awards
granted under the Plan. The Shares subject to the Plan shall be either
authorized and unissued shares or treasury shares of Common Stock.  If
any Award is forfeited, or if any Stock Option (and related Stock Appreciation
Right, if any) terminates, expires or lapses  for any reason without
having been exercised in full or shall cease for any reason to be exercisable in
whole or in part, or if any Stock Appreciation Right is exercised for cash, the
unpurchased Shares subject to such Awards shall again be available for
distribution under the Plan.  No more than 40% of the shares of Common
Stock available for grant under the Plan as of the first day of any calendar
year in which the Plan is in effect shall be utilized in that fiscal year for
the grant of Awards in the form of Restricted Stock.

    

    
      2.  Eligibility.

    

    

    Awards
may be granted only to employees, salaried officers and other key persons
employed or retained by the Company or its Subsidiaries, and any non-employee
director, consultant, vendor or other individual having a business relationship
with the Company or its Subsidiaries to the extent not prohibited by law
("Eligible Persons"). As used in this Plan, the term "Subsidiaries" shall
include Subsidiaries of a Subsidiary.

     

    
      
         

      

      
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      3.  Administration
of the Plan.

    

    

    3.1.  The
Plan shall be administered by either the full Board of Directors or by a
committee (either the full Board or the committee is referred to hereinafter as
the "Committee") composed of at least two non-employee directors, each of whom
shall be a disinterested person, as defined by Rule 16b-3(c)(2)(i) under the
Exchange Act, which Committee shall be appointed by and serve at the pleasure of
the Board. Within the limits of the express provisions of the Plan, the
Committee shall have the authority to determine, in its absolute discretion, (i)
the individuals to whom, and the time or times at which Awards shall be granted,
(ii) whether and to what extent Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights and Restricted Stock or any combination
thereof are to be granted hereunder, (iii) the number of Shares to be covered by
each Award granted hereunder, (iv) subject to Sections 4.7 and 6.3(G), the terms
and conditions of any Award granted hereunder including, but not limited to, the
option price, any vesting condition, restriction or limitation (which may be
related to the performance of the participant, the Company or any Subsidiary),
and any vesting, acceleration, forfeiture or waiver regarding any Award and the
shares of Common Stock relating thereto, (v) modify, amend or adjust the terms
and conditions of any Award, at any time or from time to time, including but not
limited to, Performance Goals; provided,
however,
that the Committee may not adjust upwards the amount payable with respect to
Qualified Performance-Based Awards or waive or alter the Performance Goals
associated therewith or cause such Restricted Stock to vest earlier than
permitted by Section 6.3(G); (vi) to what extent and under what circumstances
Common Stock and other amounts payable with respect to an Award shall be
deferred; and (vii) under what circumstances an Award may be settled in cash or
Common Stock under Sections 6.3(B) and 10.2, provided, however, that the Committee shall
not have such power to the extent that the mere possession (as opposed to the
exercise) of such power would result in adverse tax consequences to any
participant under Code Section 409A. In making such determinations, the
Committee may take into account such factors as the Committee, in its absolute
discretion, shall deem relevant. Subject to the express provisions of the Plan,
the Committee shall also have the authority to interpret the Plan, to prescribe,
amend and rescind rules and regulations relating to it, to determine the terms
and provisions of the respective option instruments or agreements (which need
not be identical) and to make all other determinations and take all other
actions necessary or advisable for the administration of the Plan. The
Committee's determinations on the matters referred to in this Section 3.1 shall
be conclusive. Any determination by a majority of the members of the Committee
shall be deemed to have been made by the whole Committee.

    

    3.2.  Each
member of the Committee shall be indemnified and held harmless by the Company
against any cost or expense (including counsel fees) reasonably incurred by such
member, or liability (including any sum paid in settlement of a claim with the
approval of the Company) arising out of any act or omission to act in connection
with the Plan unless arising out of such member’s own fraud or bad faith, to the
extent permitted by applicable law. Such indemnification shall be in addition to
any rights of indemnification the members may have as directors or otherwise
under the By-laws of the Company, any agreement or vote of stockholders or
disinterested directors or otherwise.

     

    
      
         

      

      
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      4.  Stock
Options.

    

    

    Stock
Options may be granted alone or in addition to other Awards.  Stock
Options granted hereunder may be either Incentive Stock Options or Non-Qualified
Stock Options.  Any Stock Option granted hereunder shall be in such
form as the Committee may from time to time approve. Stock Options granted under
the Plan shall be subject to the following terms and conditions and shall
contain such additional terms and conditions as the Committee shall deem
desirable:

    

    4.1.  Stock Option Exercise
Price.  Subject to adjustments in accordance with Sections 7
and 8, the exercise price of each Stock Option granted under the Plan shall be
set forth in the applicable Option Agreement, but in no event shall such price
be less than the Fair Market Value of the Shares subject to the Stock Option on
the date the Stock Option is granted. The exercise price for Incentive Stock
Options shall not be less than 100% of the Fair Market Value per share of the
Common Stock at the time the Stock Option is granted, nor less than 110% of such
Fair Market Value in the case of an Incentive Stock Option granted to an
individual who, at the time the option is granted, is a 10% Holder. The Fair
Market Value of the Shares shall be determined in good faith by the Committee,
with the approval of the Board, in accordance with the Plan and in accordance
with the requirements of Code Sections 409A and 422.

    

    4.2.  Maximum Stock Option
Grant.  With respect to Stock Options which are intended to
qualify as Incentive Stock Options, the aggregate Fair Market Value (determined
as of the time the Stock Option is granted) of the Common Stock with respect to
which Incentive Stock Options granted to any participant (whether under this
Plan or under any other stock option plan of the Company or its Subsidiaries)
become exercisable for the first time in any calendar year, may not exceed
$100,000. The number of Shares for which any participant, in any calendar year,
may be granted Stock Options under the Plan not treated as Incentive Stock
Options shall be limited to not more than 125,000.  Notwithstanding the
forgoing, nothing contained in the Plan shall be construed to prohibit the grant
of Stock Options under the Plan to an Eligible Person by reason of such person
holding Stock Options to purchase shares of Common Stock or any other securities
of the Company granted otherwise than under the Plan.

    

    4.3.  Exercise of Stock
Options.

    

    4.3.1.  Subject
to the provisions in this Section 4.3 and in Section 9, Stock Options may be
exercised in whole or in part.  The Committee, in its absolute
discretion, shall determine the time or times at which any Stock Option granted
under the Plan may be exercised; provided, however, that each Stock
Option:

    

    (A)  shall
be exercisable by a participant only if such participant was an Eligible Person
(and in the case of an Incentive Stock Option, was an employee or salaried
officer of the Company or any of its Subsidiaries) at all times beginning from
the date of the grant of the Incentive Stock Option to a date not more than
three months (except as otherwise provided in Section 8) before exercise of such
Stock Option;

    

    (B)  may
not be exercised prior to the expiration of at least one year from the date of
grant except in the case of the death or disability of the participant or
otherwise with the approval of the Committee or the Board of Directors or, if
the option agreement evidencing such Stock Option so provides, upon a "Change of
Control" as defined below;

     

    
      
         

      

      
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    (C)  shall
expire no later than the expiration of ten years (five years in the case of an
Incentive Stock Option granted to a 10% Holder) from the date of its grant;
and

    

    (D)  shall
not be exercisable by a participant until such participant executes and delivers
a written representation to the effect that such participant is acquiring the
Common Stock for investment and not with the intent of distributing the same
(unless such Common Stock shall be appropriately registered under the Securities
Act of 1933, as amended, or exempt from registration thereunder).

    

    A "Change of Control" as
used in this Section 4.3 shall mean any of the following:

    

    (i)  any
consolidation, merger or sale of the Company in which the Company is not the
continuing or surviving corporation or pursuant to which shares of the Company’s
stock would be converted into cash, securities or other property;
or

    

    (ii)  the
stockholders of the Company approve an agreement for the sale, lease, exchange
or other transfer (in one transaction or a series of related transactions) of
all or substantially all of the assets of the Company; or

    

    (iii)  any
approval by the stockholders of the Company of any plan or proposal
for  the liquidation or dissolution of the Company; or

    

    (iv)  the
acquisition of beneficial ownership (within the meaning of Rule  13d-3
under the Exchange Act of an aggregate of 25% or more of the voting power of the
Company’s outstanding voting securities by any single person or group (as such
term is used in Rule 13d-5 under the Exchange Act), unless such acquisition was
approved by the Board of Directors prior to the consummation thereof);
or

    

    (v)  the
appointment of a trustee in a Chapter 11 bankruptcy proceeding involving the
Company or the conversion of such a proceeding into a case under Chapter
7.

    

    As a
condition of the grant of a Stock Option, the Committee, in its absolute
discretion, may require an Eligible Person to enter into an employment agreement
with the Company or any Subsidiary or affiliate of the Company covering a period
of at least one year following the grant, and if the grant specifically
requires, compliance with all terms and conditions of any such employment
agreement shall be a condition to the exercise by the participant of such
participant’s Stock Option (provided, however, that such compliance may be
waived by the Committee in its absolute discretion).

    

    4.3.2.  Stock
Options granted under the Plan shall be exercised by the delivery by the holder
thereof to the Company at its principal offices (to the attention of the
Secretary) of written notice of the number of Shares with respect to which the
Stock Option is being exercised, accompanied by payment in full of the Stock
Option exercise price of such Shares. The exercise price shall be payable in
cash by a certified or bank check or such other instrument as the Company may
accept; provided, however,
that in lieu of payment in cash, a participant may, with the approval of the
Company's Board and on the recommendation of the Committee, pay for all or part
of the Shares to be purchased upon exercise of such participant’s Stock Option
by:

     

    
      
         

      

      
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    (A)  tendering
to the Company shares of the Company's Common Stock owned by such participant
and having a Fair Market Value (as determined pursuant to Section 4.1) equal to
the exercise price (or the balance thereof) applicable to such participant's
Stock Option; or

    

    (B)  complying
with any exercise and sell (or cashless exercise) program which the Company has
established with a broker-dealer.

    

    4.3.3.  The
holder of an option shall have none of the rights of a stockholder with respect
to the Shares covered by such holder’s option until such Shares shall be issued
to such holder upon the exercise of such holder’s option.

    

    4.4.  Termination of
Service.  In the event that the service of an individual to
whom a Stock Option has been granted under the Plan shall terminate (otherwise
than by reason of such individual’s death or total disability, or for cause),
such option may be exercised (if and to the extent that such individual was
entitled to do so at the date of termination of such individual’s service) at
any time within three months after such termination, but in no event after the
expiration of the term of the option. No option granted under the Plan may be
exercised by a participant following termination of such participant's
employment for cause. "Termination for cause" shall mean dismissal for
dishonesty, conviction or confession of a crime punishable by law (except minor
violations), fraud, misconduct or disclosure of confidential information. If the
service of an individual to whom a Stock Option has been granted under the Plan
shall be suspended pending an investigation of whether or not the individual
shall be terminated for cause, all of the individuals rights under any option
granted hereunder likewise shall be suspended during the period of
investigation.

    

    4.5.  Death or Total Disability of a Stock
Option Holder.  In the event of the death or total disability
of an individual to whom a Stock Option has been granted under the Plan (i)
while serving as an Eligible Person; or (ii) within three months after the
termination of such service, other than for cause, such option may be exercised
(if and to the extent that the deceased individual was entitled to do so at the
date of such individual’s death or total disability) by a legatee or legatees of
such participant under such individual's last will and testament or by such
individual’s personal representatives or distributees, at any time within twelve months
after such individual’s death or total disability, but in no event after the
expiration of the term of the option.

    

    As used
in this Plan, the term "total disability" refers to a mental or physical
impairment of the individual which has lasted or is expected to last for a
continuous period of twelve months or more and which causes the individual to be
unable, in the opinion of the Company and two (if more than one is required by
the Company in its sole discretion) independent physicians, to perform such
individual’s duties for the Company and to be engaged in any substantial gainful
activity. Total disability shall be deemed to have occurred on the first day
after the Company and the two (if more than one is required by the Company in
its sole discretion) independent physicians have furnished their opinion of
total disability to the Committee.

     

    
      
         

      

      
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    4.6.  Non-transferability of Stock
Options. A Stock Option shall not be transferable otherwise than by will
or the laws of descent and distribution and is exercisable during the lifetime
of the Eligible Person only by such Eligible Person or such Eligible Person’s
guardian or legal representative. Notwithstanding the foregoing, the Committee
shall have discretionary authority to grant Stock Options which will be
transferable to members of a participant's immediate family, including trusts
for the benefit of such family members and partnerships in which such family
members are the only partners. A transferred option would be subject to all of
the same terms and conditions as if such option had not been transferred. Upon
any attempt to transfer a Stock Option granted under this Plan otherwise than as
permitted hereunder, or upon the levy of attachment or similar process upon such
option, such option shall automatically become null and void and of no further
force and effect.

    

    4.7.  Evidence of Stock Option
Grant.  Each option granted pursuant to the Plan shall be
evidenced by an agreement (the "Option Agreement") which shall clearly identify
the status of the Stock Options granted thereunder (i.e., whether an Incentive
Stock Option or Non-Qualified Stock Option).  The Option Agreement
shall comply in all respects with the terms and conditions of the Plan and may
contain such additional provisions, including, without limitation, restrictions
upon the exercise of the option, as the Committee shall deem
advisable.

    

    4.8.  Deferral of Stock Option
Shares.  The Committee may from time to time establish
procedures pursuant to which a participant may elect to defer, until a time or
times later than the exercise of a Stock Option, receipt of all or a portion of
the shares of Common Stock subject to such Stock Option and/or to receive cash
at such later time or times in lieu of such deferred shares, all on such terms
and conditions as the Committee shall determine.  If any such
deferrals are permitted, then notwithstanding Sections 4.3.1 and 4.3.2. above, a
participant who elects such deferral shall not have any rights as a stockholder
with respect to such deferred shares unless and until shares are actually
delivered to the participant with respect thereto, except to the extent
otherwise determined by the Committee.  Notwithstanding anything
herein to the contrary, in no event will any deferral of the delivery of shares
of Common Stock or any other payment with respect to any Award be allowed if the
Committee determines, in its sole discretion, that the deferral would result in
the imposition of additional tax under Code Section 409A(a)(1)(B).

    

    
      5.  Stock
Appreciation Rights

    

    

    5.1.  Grant and
Exercise.  Stock Appreciation Rights may be granted in
conjunction with all or part of any Stock Option granted under the Plan. In the
case of a Non-Qualified Stock Option, such rights may be granted either at or
after the time of grant of such Stock Option. In the case of an Incentive Stock
Option, such rights may be granted only at the time of grant of such Stock
Option. A Stock Appreciation Right shall terminate and no longer be exercisable
upon the termination or exercise of the related Stock Option.

    

    A Stock
Appreciation Right may be exercised by a participant in accordance with Section
5.2 by surrendering the applicable portion of the related Stock Option in
accordance with procedures established by the Committee. Upon such exercise and
surrender, the participant shall be entitled to receive an amount determined in
the manner prescribed in Section 5.2. Stock Options which have been so
surrendered shall no longer be exercisable to the extent the related Stock
Appreciation Rights have been exercised.

     

    
      
         

      

      
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    5.2.  Terms and Conditions. Stock
Appreciation Rights shall be subject to such terms and conditions as shall be
determined by the Committee, including the following:

    

    (A)  Stock
Appreciation Rights shall be exercisable only at such time or times and to the
extent that the Stock Options to which they relate are exercisable in accordance
with the provisions of Section 4 and this Section 5.

    

    (B)  Upon
the exercise of a Stock Appreciation Right, a participant shall be entitled to
receive an amount in cash, shares of Common Stock or both, in value equal to the
excess of the Fair Market Value of one share of Common Stock over the option
price per share specified in the related Stock Option multiplied by the number
of shares in respect of which the Stock Appreciation Right shall have been
exercised, with the Committee having the right to determine the form of
payment.

    

    (C)  Stock
Appreciation Rights shall be transferable only to permitted transferees of the
underlying Stock Option in accordance with Section 4.6.

    

    (D)  Upon
the exercise of a Stock Appreciation Right, the Stock Option or part thereof to
which such Stock Appreciation Right is related shall be deemed to have been
exercised for the purpose of the limitation set forth in Section 1 on the number
of shares of Common Stock to be issued under the Plan, but only to the extent of
the number of shares covered by the Stock Appreciation Right at the time of
exercise based on the value of the Stock Appreciation Right at such
time.

    

    
      6.  Restricted
Stock

    

    

    6.1.  Administration.  Shares
of Restricted Stock may be awarded either alone or in addition to other Awards
granted under the Plan. The Committee shall determine the Eligible Persons to
whom and the time or times at which grants of Restricted Stock will be awarded,
the number of shares to be awarded to any Eligible Person, the conditions for
vesting, the time or times within which such Awards may be subject to forfeiture
and any other terms and conditions of the Awards, in addition to those contained
in Section 6.3.

    

    6.2.  Awards and Certificates.
Shares of Restricted Stock shall be evidenced in such manner as the
Committee may deem appropriate, including book-entry registration or issuance of
one or more stock certificates. Any certificate issued in respect of shares of
Restricted Stock shall be registered in the name of such Eligible Person and
shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such Award, substantially in the following
form:

    

    "The
transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) of the SignPath
Pharma Inc. 2009 Employee Stock Incentive Plan and a Restricted Stock Agreement.
Copies of such Plan and Agreement are on file at the offices of SignPath Pharma
Inc., 1375 California Road, Quakertown, PA 18951.”

     

    
      
         

      

      
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    The
Committee may require that the certificates evidencing such shares be held in
custody by the Company until the restrictions thereon shall have lapsed and
that, as a condition of any Award of Restricted Stock, the participant shall
have delivered a stock power, endorsed in blank, relating to the Common Stock
covered by such Award.

    

    6.3.  Terms and Conditions. Shares
of Restricted Stock shall be subject to the following terms and
conditions:

    

    (A)  The
Committee may, prior to or at the time of grant, designate an Award of
Restricted Stock as a Qualified Performance-Based Award, in which event it shall
condition the grant or vesting, as applicable, of such Restricted Stock upon the
attainment of Performance Goals. If the Committee does not designate an Award of
Restricted Stock as a Qualified Performance-Based Award, it may also condition
the grant or vesting thereof upon the attainment of Performance Goals.
Regardless of whether an Award of Restricted Stock is a Qualified
Performance-Based Award, the Committee may also condition the grant or vesting
thereof upon the continued service of the participant. The conditions for grant
or vesting and the other provisions of Restricted Stock Awards (including
without limitation any applicable Performance Goals) need not be the same with
respect to each recipient. The Committee may at any time, in its sole
discretion, accelerate or waive, in whole or in part, any of the foregoing
restrictions; provided, however, that in the case of
Restricted Stock that is a Qualified Performance-Based Award, the applicable
Performance Goals have been satisfied and further, provided, however,
that the Committee shall not have such power to the extent that the mere
possession (as opposed to the exercise) of such power would result in adverse
tax consequences to any participant under Code Section 409A.

    

    (B)  Subject
to the provisions of the Plan and the Restricted Stock Agreement referred to in
Section 6.3(F), during the period, if any, set by the Committee, commencing with
the date of such Award for which such participant's continued service is
required (the "Restriction Period"), and until the later of (i) the expiration
of the Restriction Period and (ii) the date the applicable Performance Goals (if
any) are satisfied, the participant shall not be permitted to sell, assign,
transfer, pledge or otherwise encumber shares of Restricted Stock; provided, however, that the foregoing shall
not prevent a participant from pledging Restricted Stock as security for a loan,
the sole purpose of which is to provide funds to pay the option price for Stock
Options.

    

    (C)  Except
as provided in this Section 6.3(C) and Sections 6.3(A) and 6.3(B) and the
Restricted Stock Agreement, the participant shall have, with respect to the
shares of Restricted Stock, all of the rights of a stockholder of the Company
holding the class or series of Common Stock that is the subject of the
Restricted Stock, including, if applicable, the right to vote the shares and the
right to receive any dividends. If so determined by the Committee in the
applicable Restricted Stock Agreement, (i) cash dividends on the class or series
of Common Stock that is the subject of the Restricted Stock Award shall be
automatically deferred and reinvested in additional Restricted Stock, held
subject to the vesting of the underlying Restricted Stock, or held subject to
meeting Performance Goals applicable only to dividends; and (ii) dividends
payable in Common Stock shall be paid in the form of Restricted Stock of the
same class as the Common Stock with which such dividend was paid, held subject
to the vesting of the underlying Restricted Stock, or held subject to meeting
Performance Goals applicable only to dividends.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (D)  Except
to the extent otherwise provided in the applicable Restricted Stock Agreement or
Sections 6.3(A), 6.3(B), 6.3(E) or 8.1(D), upon a participant's Termination of
Employment for any reason during the Restriction Period or before the applicable
Performance Goals are satisfied, all shares still subject to restriction shall
be forfeited by the participant.

    

    (E)  Except
to the extent otherwise provided in Section 8.1(D), in the event that a
participant retires or such participant's employment is involuntarily
terminated, the Committee shall have the discretion to waive, in whole or in
part, any or all remaining restrictions (other than, in the case of Restricted
Stock with respect to which a participant is a Covered Employee, satisfaction of
the applicable Performance Goals unless the Participant's employment is
terminated by reason of death or Disability) with respect to any or all of such
participant's shares of Restricted Stock.

    

    (F)  If
and when any applicable Performance Goals are satisfied and the Restriction
Period expires without a prior forfeiture of the Restricted Stock, unlegended
certificates for such shares shall be delivered to the participant upon
surrender of the legended certificates.

    

    (G)  Each
Award shall be confirmed by, and be subject to, the terms of a Restricted Stock
Agreement.

    

    (H)  Notwithstanding
the foregoing, but subject to the provisions of Section 8 hereof, no Award in
the form of Restricted Stock, the vesting of which is conditioned only upon the
continued service of the participant, shall vest earlier than the first, second
and third anniversaries of the date of grant thereof, on each of which dates a
maximum of one-third of the shares of Common Stock subject to the Award may
vest, and no award in the form of Restricted Stock, the vesting of which is
conditioned upon the attainment of a specified Performance Goal or Goals, shall
vest earlier than the first anniversary of the date of grant
thereof.

    

    
      7.  Adjustments
Upon Change in Capitalization.

    

    

    In the
event of changes in the outstanding shares of Common Stock of the Company by
reason of stock dividends, stock splits, reverse stock splits,
recapitalizations, mergers, consolidations, combinations or exchanges of shares,
separations, reorganizations or liquidations, the number and class of shares
available under the Plan, the number and class of Shares or the amount of cash
or other assets or securities available upon the exercise of any Award granted
hereunder and the number of Shares to be issued pursuant to an Award shall be
correspondingly adjusted, to the end that the participant's proportionate
interest in the Company, any successor thereto or in the cash, assets or other
securities into which Shares are converted or exchanged shall be maintained to
the same extent, as near as may be practicable, as immediately before the
occurrence of any such event. All references in this Plan to "Common Stock" from
and after the occurrence of such event shall be deemed for all purposes of this
Plan to refer to such other class of shares or securities issuable upon the
exercise or payment of Awards granted pursuant hereto.

    

    
      8.  Material
Transaction, Liquidation or Dissolution of the Company.

    

    

    8.1.  In
the event of a reorganization, merger or consolidation in which the Company is
not the surviving corporation, or a sale of all or substantially all of the
assets of the Company to another person or entity (each a "Material
Transaction"), unless otherwise provided in the Option Agreement, the Committee
shall:

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    (A)  provide
for the assumption of outstanding Awards, or the substitution of outstanding
Awards for new Awards, for equity securities of the surviving, successor or
purchasing corporation, or a parent or Subsidiary thereof, with appropriate
adjustments as to the number, kind, vesting and prices of Shares subject to such
Awards, as determined in good faith by the Board in its sole discretion,
or

    

    (B)  provide
that the vesting of each outstanding Stock Option and Stock Appreciation Right
shall automatically be accelerated so that 100% of the unvested Shares covered
by such Award shall be fully vested upon the consummation of the Material
Transaction, and

    

    (i)  provide
notice to Participants that all outstanding Stock Options must be exercised on
or before a specified date (which date shall be at least ten days from the date
of notice), after which the Stock Options and Stock Appreciation Rights shall
terminate; or

    

    (ii)  terminate
each outstanding Stock Option and Stock Appreciation Right in its entirety and
exchange such Award for a payment of cash, securities and/or property equal to
the Fair Market Value of the Common Stock into which such Award convertible,
less the exercise price for such Award.

    

    (C)  provide
that the restrictions and deferral limitations applicable to any Restricted
Stock shall lapse, and such Restricted Stock shall become free of all
restrictions and become fully vested and transferable, and

    

    (D)  the
Committee may also make additional adjustments and/or settlements of outstanding
Awards as it deems appropriate and consistent with the Plan's
purposes.

    

    Notwithstanding
the foregoing, for purposes of Sections 8.1(A), 8.1(B), 8.1(C) and 8.1(D), the
Committee shall not have any of the foregoing powers to the extent that the mere
possession (as opposed to the exercise) of such power would result in adverse
tax consequences to any participant under Code Section 409A.

    

    8.2.  In
the event of the dissolution or liquidation the Company, whether voluntary or
otherwise, that is not a Material Transaction, all outstanding unexercised Stock
Options and Stock Appreciation Rights must be exercised, if at all, within the
ninety day period commencing on the date specified in Section 8.3 below. All
such Awards which become exercisable during the ninety day period commencing on
the date specified in Section 8.3 below, shall terminate at the end of such
ninety day period to the extent not exercised prior thereto.

    

    8.3.  The
date specified in this Section 8.3 is the date of the earliest to occur of the
following events:

    

    (i)  the
entry, in a court having jurisdiction, of an order that the Company be
liquidated or dissolved;

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    (ii)  adoption
by the stockholders of the Company of a resolution resolving that the Company be
liquidated or dissolved voluntarily; or

    

    (iii)  adoption
by the stockholders of the Company of a resolution to the effect that the
Company cannot, by reason of its liabilities, continue its business and that it
is advisable to liquidate or dissolve the Company.  Notwithstanding
anything herein to the contrary, in no event may any option granted hereunder be
exercised after the expiration of the term of such option.

    

    
      9.  Further
Conditions.

    

    

    Each
Award granted under the Plan shall be subject to the requirement that if at any
time the Committee shall determine, in its absolute discretion, that it is
necessary or desirable as a condition of, or in connection with the grant and/or
issuance of Award or the exercise thereof, to effect or obtain, as the case may
be:

    

    (i)  the
listing, registration or qualification of the Shares subject to such Award upon
any securities exchange or under any state or federal law;

    

    (ii)  the
consent or approval of any governmental body;

    

    (iii)  any
investment representation or agreement by the individual desiring to be issued
or to exercise an Award granted under the Plan; or

    

    (iv)  an
opinion of counsel for the Company,

    

    then, no
Award may be issued or exercised, as the case may be, in whole or in part unless
such listing, registration, qualification, consent, approval, investment or
representation agreement or opinion shall have been effected or obtained, as the
case may be, free of any condition not acceptable to the Board or the
Committee.

    

    
      10.  Exchange
and Buyout of Awards.

    

    

    10.1.  The
Committee may, at any time or from time to time, authorize the Company, with the
consent of the respective participants, to issue new Awards in exchange for the
surrender and cancellation of any or all outstanding Awards.

    

    10.2.  The
Committee may, at any time or from time to time, authorize the Company to buy
from a participant an Award previously granted with payment in cash, Shares
(including Restricted Stock) or other consideration, based on such terms and
conditions as the Committee and the participant may agree.

    

    
      11.  Termination,
Modification and Amendment.

    

    

    11.1.  The
Plan (but not Awards previously granted under the Plan) shall terminate on, and
no Awards shall be granted after, the tenth anniversary of its adoption by the
Board; provided that the Board may at any time terminate the Plan prior thereto
upon the adoption of a resolution of the Board.

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    11.2.  The
Board shall have complete power and authority to modify or amend the Plan in
whole or in part and from time to time in such respects as it shall deem
advisable; provided, however, that the Board shall not, without the approval of
the votes represented by a majority of the outstanding Common Stock of the
Company present or represented and entitled to vote at a meeting of stockholders
duly held in accordance with the applicable laws of the Company's jurisdiction
of incorporation or by the written consent of stockholders owning stock
representing a majority of the votes of the Company's outstanding stock entitled
to vote:

    

    (i)  increase
the number of Shares available for the grant of Awards under Section 1 of the
Plan (except as provided in Section 7);

    

    (ii)  extend
the term of the Plan or the period during which Awards may be granted or
exercised;

    

    (iii)  reduce
the Stock Option price below 100% (110% in the case of an Incentive Stock Option
granted to a 10% Holder) of the Fair Market Value of the Shares issuable upon
exercise of Stock Options at the time of the granting thereof, other than to
change the manner of determining the Fair Market Value thereof;

    

    (iv)  alter
the maximum number of Shares available for the grant of Awards in the form of
Incentive Stock Options and Restricted Stock;

    

    (v)  materially
increase the benefits accruing to participants under the Plan;

    

    (vi)  modify
the requirements as to eligibility for participation in the Plan;

    

    (vii)  modify
the nature of the Awards which may be granted under the Plan;

    

    (viii)  with
respect to Stock Options which are Incentive Stock Options, amend the Plan in
any respect which would cause such Stock Options to no longer qualify for
Incentive Stock Option treatment pursuant to the Code; and

    

    (ix)  alter
the provisions set forth in Section 6.3(H) with respect to minimum vesting
schedules relating to Awards in the form of Restricted Stock.

    

    No
termination or amendment of the Plan shall, without the consent of the
individual participant, adversely affect the rights of such participant under an
Award theretofore granted to such participant.

    

    
      12.  Taxes.

    

    

    The
Company may make such provisions as it may deem appropriate for the withholding
of any taxes which it determines is required in connection with any Awards
granted under the Plan.  The Company may further require notification
from the participants upon any disposition of Common Stock acquired pursuant to
the Awards granted hereunder.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    
      13.  Effectiveness
Of The Plan.

    

    

    The Plan
shall become effective immediately upon its approval and adoption by the Board,
subject to approval by a majority of the votes of the outstanding shares of
capital stock of the stockholders of the Company cast at any duly called annual
or special meeting of the Company's stockholders held within one year from the
date of Board adoption and approval.

    

    
      14.  Designation
of Beneficiary by Participant.

    

    

    A
participant may designate one or more beneficiaries to receive any rights and
payments to which such participant may be entitled in respect of any option
granted under the Plan in the event of such participant’s death.  Such
designation shall be on a written form acceptable to and filed with the
Committee.  The Committee shall have the right to review and approve
beneficiary designations.  A participant may change the participant’s
beneficiary(ies) from time to time in the same manner as the original
designation, unless such participant has made an irrevocable
designation.  Any designation of beneficiary under the Plan (to the
extent it is valid and enforceable under applicable law) shall be controlling
over any other disposition, testamentary or otherwise, as determined by the
Committee.  If no designated beneficiary survives the participant and
is living on the date on which any right or amount becomes payable to such
participant’s beneficiary(ies), such payment will be made to the legal
representatives of the participant’s estate, and the term “beneficiary” as used
in the Plan shall be deemed to include such person or persons.  If
there is any question as to the legal right of any beneficiary to receive a
distribution under the Plan, the Committee may determine that the amount in
question be paid to the legal representatives of the estate of the participant,
in which event the Company, the Committee, the Board and the Committee and the
members thereof will have no further liability to any person or entity with
respect to such amount.

    

    
      15.  Certificates.

    

    

    All
Shares delivered under this Plan will be subject to such stock transfer orders,
legends and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
law, or any rules, regulations and other requirements promulgated under such
laws or any stock exchange or automated quotation system upon which the Shares
may be listed or quoted and each stock certificate evidencing such Shares and
other certificates shall have the appropriately legend.

    

    
      16.  Securities
Law and Other Regulatory Compliance.

    

    

    16.1.  The
issuance of Awards under the Plan will not be effective unless such issuance is
made in compliance with all applicable federal and state securities laws, rules
and regulations of any governmental body, and the requirements of any stock
exchange or automated quotation system upon which the Shares may then be listed
or quoted, as they are in effect on the date of issuance/grant and also on the
date of exercise or other issuance. Notwithstanding any other provision in this
Plan, the Company will have no obligation to issue or deliver stock certificates
for Shares under this Plan prior to:

    

    (i)  obtaining
any approvals from governmental agencies that the Committee determines are
necessary or advisable; and/or

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    (ii)  completion
of any registration or other qualification of such Shares under any state or
federal law or ruling of any governmental body that the Committee determines to
be necessary or advisable.

    

    16.2.  The
Company will be under no obligation to register the Shares under the Securities
Act of 1933, as amended, or to effect compliance with the registration,
qualification or listing requirements of any state securities laws, stock
exchange or automated quotation system, and the Company will have no liability
for any inability or failure to do so.

    

    
      17.  No
Obligation to Employ.

    

    

    The Plan
shall not constitute a contract of employment and nothing in this Plan shall
confer or be deemed to confer on any participant any right to continue in the
employ of, or to continue any other relationship with, the Company or any
Subsidiary or affiliate of the Company or limit in any way the right of the
Company or any Subsidiary or affiliate of the Company to terminate the
participant’s employment or other relationship at any time, with or without
cause.

    

    
      18.  Non-exclusivity
of the Plan.

    

    

    Neither
the adoption of the Plan by the Board, the submission of the Plan to the
shareholders of the Company for approval, nor any provision of this Plan will be
construed as creating any limitations on the power of the Board or the Committee
to adopt such additional compensation arrangements as the Board may deem
desirable, including, without limitation, the granting of Stock Options
otherwise than under the Plan, and such arrangements may be either generally
applicable or applicable only in specific cases.

    

    
      19.  Miscellaneous
Provisions.

    

    

    19.1.  Determinations
made by the Committee under the Plan need not be uniform and may be made
selectively among Eligible Persons under the Plan, whether or not such Eligible
Persons are similarly situated.

    

    19.2.  No
Shares, other Company securities or property, other securities or property, or
other forms of payment shall be issued hereunder with respect to any option
granted under the Plan unless counsel for the Company shall be satisfied that
such issuance will be in compliance with applicable federal, state, local and
foreign legal, securities exchange and other applicable
requirements.

    

    19.3.  It
is the intent of the Company that the Plan comply in all respects with Rule
16b-3 under the Exchange Act, that any ambiguities or inconsistencies in
construction of the Plan be interpreted to give effect to such intention and
that if any provision of the Plan is found not to be in compliance with Rule
16b-3, such provision shall be deemed null and void to the extent required to
permit the Plan to comply with Rule 16b-3.

    

    19.4.  The
appropriate officers of the Company shall cause to be filed any reports, returns
or other information regarding the grant of Stock Options hereunder or any
Shares issued pursuant hereto as may be required by Section 13 or 15(d) of the
Exchange Act (or any successor provision) or any other applicable statute, rule
or regulation.

    

    19.5.  The
validity, construction, interpretation, administration and effect of the Plan,
and of its rules and regulations, and rights relating to the Plan and Awards
granted under the Plan and any agreements in connection therewith, shall be
governed by the substantive laws, but not the choice of law rules, of the State
of Delaware.

     

    
      
         

      

      
        16Exhibit
10.3

    

    

    PATENT
AND TECHNOLOGY LICENSE AGREEMENT

    

    This
thirty (30) page AGREEMENT ("AGREEMENT") is made on this 21st day of
February, 2007, by and between THE BOARD OF REGENTS ("BOARD") of THE UNIVERSITY
OF TEXAS SYSTEM ("SYSTEM"), an agency of the State of Texas, whose address is
201 West 7th Street, Austin, Texas 78701, on behalf of THE UNIVERSITY OF TEXAS
M. D. ANDERSON CANCER CENTER ("UTMDACC"), a component institution of SYSTEM, and
SIGNPATH PHARMACEUTICALS, INC., a Delaware corporation having a principal place
of business located at 45 Broadway, 2nd Floor,
New York, New York 10006 ("LICENSEE").

    

    RECITALS

    

    
      	
              A.

            	
              BOARD
      owns certain PATENT RIGHTS and TECHNOLOGY RIGHTS related to LICENSED
      SUBJECT MATTER developed at
UTMDACC.

            

    

    

    
      	
              B.

            	
              BOARD,
      through UTMDACC, desires to have the LICENSED SUBJECT MATTER developed in
      the LICENSED FIELD and used for the benefit of LICENSEE, BOARD, SYSTEM,
      UTMDACC, the inventor(s), and the public as outlined in BOARD’s
      Intellectual Property Policy.

            

    

    

    
      	
              C.

            	
              LICENSEE
      wishes to obtain a license from BOARD to practice LICENSED SUBJECT
      MATTER.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NOW,
THEREFORE, in consideration of the mutual covenants and promises herein
contained, the parties agree as follows:

    

    I.  EFFECTIVE
DATE

    

    
      	
              1.1

            	
              This
      AGREEMENT is effective as of the date written above ("EFFECTIVE DATE"),
      which is the date fully executed by all
parties.

            

    

    

    II.  DEFINITIONS

    

    As used
in this AGREEMENT, the following terms have the meanings indicated:

    

    
      	
              2.1

            	
              AFFILIATE means any
      business entity more than fifty percent (50%) owned by LICENSEE, any
      business entity which owns more than fifty percent (50%) of LICENSEE, or
      any business entity that is more than fifty percent (50%) owned by a
      business entity that owns more than fifty percent (50%) of
      LICENSEE.

            

    

    

    
      	
              2.2

            	
              LICENSED FIELD means
      human and animal use.

            

    

    

    
      	
              2.3

            	
              LICENSED PRODUCTS means
      any product or service sold by LICENSEE, its AFFILIATES or its
      sublicensees comprising LICENSED SUBJECT MATTER pursuant to this
      AGREEMENT.

            

    

    

    
      	
              2.4

            	
              LICENSED SUBJECT MATTER
      means inventions and discoveries covered by PATENT RIGHTS or TECHNOLOGY
      RIGHTS within the LICENSED FIELD.

            

    

    

    
      	
              2.5

            	
              LICENSED TERRITORY means
      worldwide.

            

    

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
              2.6

            	
              NET SALES means the
      gross revenues received by LICENSEE, its AFFILIATES, or its sublicensees
      from a SALE less sales discounts actually granted, sales and/or use taxes
      actually paid, import and/or export duties actually paid, outbound
      transportation actually prepaid or allowed, and amounts actually allowed
      or credited due to returns (not exceeding the original billing or invoice
      amount), all as recorded by LICENSEE in LICENSEE’s official books and
      records in accordance with generally accepted accounting practices and
      consistent with LICENSEE’s published financial statements and/or
      regulatory filings with the United States Securities and Exchange
      Commission.  In the event of a SALE of a COMBINATION PRODUCT,
      the parties shall work together in good faith to determine what portion of
      resulting gross revenues shall be used for determining NET SALES based on
      the value added to the price of such COMBINATION PRODUCT by LICENSED
      SUBJECT MATTER relative to value added by other therapeutically active
      ingredients or other proprietary technology or information.  For
      purposes of this Section 2.6, the term "COMBINATION PRODUCT" means any
      LICENSED PRODUCT that contains at least one other therapeutically active
      ingredient or, in the case of a service, at least one other proprietary
      technology.

            

    

     

    
      	
              2.7

            	
              PATENT RIGHTS means
      BOARD's rights in the information or discoveries described in invention
      disclosures, or claimed in any patents and/or patent applications, whether
      domestic or foreign, as identified in Exhibit I attached hereto, and all
      divisionals, continuations, continuations-in-part (to the extent the
      claims of such continuations-in-part are entitled to claim priority to the
      aforesaid patents and/or patent applications identified in Exhibit I),
      reissues, reexaminations or extensions of the patents and/or patent
      applications identified in Exhibit I, and any letters patent, domestic or
      foreign that issue thereon.

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              2.8

            	
              PHASE 1 STUDY means: (a)
      that portion of the drug development and review process which provides for
      the initial introduction of an investigational new drug into human
      subjects, as more specifically defined by the rules and regulations of the
      FDA, including 21 C.F.R. § 312.21 or
      any future revisions or substitutes therefor; or (b) a similar clinical
      trial in any national jurisdiction other than the United
      States.

            

    

    

    
      	
              2.9

            	
              PHASE 2 STUDY means: (a)
      that portion of the drug development and review process which provides for
      early controlled clinical studies conducted to obtain preliminary data on
      the effectiveness of an investigational new drug for a particular
      indication, as more specifically defined by the rules and regulations of
      the FDA, including 21 C.F.R. § 312.21 or
      any future revisions or substitutes therefor; or (b) a similar clinical
      trial in any national jurisdiction other than the United
      States.

            

    

    

    
      	
              2.10

            	
              PHASE 3 STUDY means (a)
      that portion of the drug development and review process in which expanded
      clinical studies are conducted to gather the additional information about
      effectiveness and safety that is needed to evaluate the overall
      benefit-risk relationship of an investigational new drug, as more
      specifically defined by the rules and regulations of the FDA, including 21
      C.F.R.
      § 312.21 or any future revisions or substitutes therefor; or (b) a
      similar clinical trial in any national jurisdiction other than the United
      States.

            

    

    

    
      	
              2.11

            	
              REGULATORY APPROVAL means the FDA
      approval necessary for the SALE of a LICENSED PRODUCT in the United
      States.

            

    

    

    
      	
              2.12

            	
              SALE or SOLD means the
      transfer or disposition of a LICENSED PRODUCT for value to a party other
      than LICENSEE, an AFFILIATE or a ROYALTY-FREE PRACTITIONER.  As
      used herein, "ROYALTY-FREE PRACTITIONER" means UTMDACC and Dr. Razelle
      Kurzrock, M.D. ("PHYSICIAN INVENTOR"), and any partner or associate who
      practices medicine with the PHYSICIAN INVENTOR, but with respect to such
      partner or associate, only for such time as they are engaged in a bona
      fide medical practice with the PHYSICIAN
  INVENTOR.

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
              2.13

            	
              TECHNOLOGY RIGHTS means
      BOARD's rights in any technical information, know-how, processes,
      procedures, compositions, devices, methods, formulae, protocols,
      techniques, software, designs, drawings or data created by the inventor(s)
      listed in Exhibit I at UTMDACC before the EFFECTIVE DATE, which are not
      claimed in PATENT RIGHTS but that are necessary for practicing PATENT
      RIGHTS.

            

    

    

    III.  LICENSE

    

    
      	
              3.1

            	
              BOARD,
      through UTMDACC, hereby grants to LICENSEE a royalty-bearing, exclusive
      license under LICENSED SUBJECT MATTER to manufacture, have manufactured,
      use, import, offer to sell and/or sell LICENSED PRODUCTS within LICENSED
      TERRITORY for use within LICENSED FIELD. This grant is subject to Sections
      14.2 and 14.3 hereinbelow, the payment by LICENSEE to UTMDACC of all
      consideration as provided herein, the timely payment of all amounts due
      under any related sponsored research agreement between UTMDACC and
      LICENSEE in effect during this AGREEMENT, and is further subject to the
      following rights retained by BOARD and UTMDACC
  to:

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (a)

            	
              Publish
      the general scientific findings from research related to LICENSED SUBJECT
      MATTER, subject to the terms of ARTICLE XI–Confidential Information and
      Publication; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              Use
      LICENSED SUBJECT MATTER for non-commercial research, non-commercial
      patient care, teaching and other educationally-related
      purposes.  Use of LICENSED SUBJECT MATTER in clinical trials and
      other research involving patients shall be considered non-commercial
      research or non-commercial patient care provided that BOARD and UTMDACC do
      not sell such LICENSED SUBJECT MATTER to said
  patients.

            

    

    

    
      	
              3.2

            	
              LICENSEE
      may extend the license granted herein to any AFFILIATE provided that the
      AFFILIATE consents in writing to be bound by this AGREEMENT to the same
      extent as LICENSEE.  LICENSEE agrees to deliver such contract to
      UTMDACC within thirty (30) calendar days following execution
      thereof.

            

    

    

    
      	
              3.3

            	
              LICENSEE
      may grant sublicenses under LICENSED SUBJECT MATTER consistent with the
      terms of this AGREEMENT provided that LICENSEE is responsible for its
      sublicensees relevant to this AGREEMENT, and for diligently collecting all
      amounts due LICENSEE from sublicensees. If a sublicensee pursuant hereto
      becomes bankrupt, insolvent or is placed in the hands of a receiver or
      trustee, LICENSEE, to the extent allowed under applicable law and in a
      timely manner, agrees to use its best reasonable efforts to collect all
      consideration owed to LICENSEE and to have the sublicense agreement
      confirmed or rejected by a court of proper
  jurisdiction.

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              3.4

            	
              LICENSEE
      must deliver to UTMDACC a true and correct copy of each sublicense granted
      by LICENSEE, and any modification or termination thereof, within thirty
      (30) calendar days after execution, modification, or
      termination.

            

    

    

    
      	
              3.5

            	
              If
      this AGREEMENT is terminated pursuant to ARTICLE XIII-Term and
      Termination, BOARD and UTMDACC agree to accept as successors to LICENSEE,
      existing sublicensees in good standing at the date of termination provided
      that each such sublicensee consents in writing to be bound by all of the
      terms and conditions of this
AGREEMENT.

            

    

    

    IV.  CONSIDERATION,
PAYMENTS AND REPORTS

    

    
      	
              4.1

            	
              In
      consideration of rights granted by BOARD to LICENSEE under this AGREEMENT,
      LICENSEE agrees to pay UTMDACC the
following:

            

    

    

    
      	
               
      

            	
              (a)

            	
              All
      reasonable out-of-pocket expenses incurred by UTMDACC in filing,
      prosecuting, enforcing and maintaining PATENT RIGHTS, and all such future
      expenses incurred by UTMDACC, for so long as, and in such countries as
      this AGREEMENT remains in effect. UTMDACC will invoice LICENSEE after the
      AGREEMENT has been fully executed by all parties for expenses incurred as
      of that time and on a quarterly basis thereafter.  The invoiced
      amounts will be due and payable by LICENSEE within thirty (30) calendar
      days of invoice; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              A
      nonrefundable license documentation fee in the amount of fifteen thousand
      dollars ($15,000). This fee will not reduce the amount of any other
      payment provided for in this ARTICLE IV, and is due and payable within
      thirty (30) calendar days after the AGREEMENT has been fully executed by
      all parties and LICENSEE has received an invoice for the amount from
      UTMDACC; and

            

    

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              Nonrefundable
      Annual Maintenance Fees and Minimum Annual Royalties due and payable
      according to the following
schedule:

            

    

    

    
      	
               
      

            	
              (1)

            	
              An
      Annual Maintenance Fee of ten thousand dollars ($10,000), due and payable
      within thirty (30) calendar days of the first anniversary of the EFFECTIVE
      DATE and every anniversary occurring thereafter until: (i) the seventh
      anniversary of the EFFECTIVE DATE; (ii) the first SALE; or (iii) issuance
      of a patent for any PATENT RIGHTS ("PATENT"), whichever comes first;
      and

            

    

    

    
      	
               
      

            	
              (2)

            	
              An
      Annual Maintenance Fee of thirty thousand dollars ($30,000), due and
      payable within thirty (30) calendar days of the
      seventh  anniversary of the EFFECTIVE DATE and every anniversary
      occurring thereafter until the first SALE, subject to Sections
      4.1(c)(3)-(4), below;

            

    

    

    
      	
               
      

            	
              (3)

            	
              Subject
      to Section 4.1(c)(4), below, if a PATENT issues prior to the first SALE or
      the seventh anniversary of the EFFECTIVE DATE, the Annual Maintenance Fee
      shall be increased from ten thousand dollars ($10,000) to fifteen thousand
      dollars ($15,000) per year, due and payable on the anniversary of the
      EFFECTIVE DATE immediately following issuance of the PATENT and every
      anniversary occurring thereafter until: (i) the first SALE; or (ii) the
      seventh anniversary of the EFFECTIVE DATE, whichever comes
      first;

            

    

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (4)

            	
              Notwithstanding
      any provision in Sections 4.1(c)(1)-(3) to the contrary, upon the first
      SALE, the Annual Maintenance Fee shall be converted to a Minimum Annual
      Royalty of  seventy-five thousand dollars ($75,000), due and
      payable within thirty (30) calendar days of the anniversary of the
      EFFECTIVE DATE immediately following the first SALE, and every anniversary
      occurring thereafter;

            

    

    

    
      	
               
      

            	
              (5)

            	
              Running
      royalties accrued under Section 4.1(d) and paid to UTMDACC during the one
      year period preceding an anniversary of the EFFECTIVE DATE may be credited
      against the Minimum Annual Royalty due on that anniversary date;
      and

            

    

    

    
      	
               
      

            	
              (d)

            	
              A
      running royalty as follows:

            

    

    

    
      	
               
      

            	
              (1)

            	
              two
      and one half percent (2.5%) of NET SALES less than $250 million for
      LICENSED PRODUCTS covered by an issued
patent;

            

    

    

    
      	
               
      

            	
              (2)

            	
              three
      percent (3%) of NET SALES equal to or greater than $250 million for
      LICENSED PRODUCTS covered by an issued patent;
  and

            

    

    

    
      	
               
      

            	
              (3)

            	
              one
      and one half percent (1.5%) of NET SALES of LICENSED PRODUCTS not covered
      by an issued patent.

            

    

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

     

    If
LICENSEE is obligated to pay running royalties to a third party to avoid
infringing such third party’s patent rights which dominate BOARD'S PATENT RIGHTS
(as documented by a written opinion of an independent, qualified patent
attorney, a copy of which is provided to BOARD), LICENSEE may reduce the running
royalty due UTMDACC by one half of the running royalty rate being paid to such
third party, provided, however, the running royalty rate due UTMDACC will not be
reduced to less than two percent (2%) of NET SALES of LICENSED PRODUCTS covered
by an issued patent or one percent (1%) of NET SALES of LICENSED PRODUCTS not
covered by an issued patent; and

    

    
      	
               
      

            	
              (e)

            	
              The
      following one-time milestone payments, regardless of whether the milestone
      is achieved by LICENSEE, a sublicensee or AFFILIATE, or, in the case of
      milestone 4.1(e)(5), by any of the foregoing, BOARD and/or
      UTMDACC

            

    

    

    (1) 
Ten thousand dollars ($10,000) upon dosing the first patient with a LICENSED
PRODUCT in a PHASE 1 STUDY;

    

    (2) 
Twenty-five thousand dollars ($25,000) upon dosing the first patient with a
LICENSED PRODUCT in a PHASE 2 STUDY;

    

    (3) 
Fifty thousand dollars ($50,000) upon dosing the first patient with a LICENSED
PRODUCT in a PHASE 3 STUDY, provided that, if no PATENT has issued at the time
this milestone is achieved, the amount of the milestone shall be reduced from
fifty thousand dollars ($50,000) to forty thousand dollars
($40,000);

    

    (4) 
Four hundred thousand dollars ($400,000) upon the first REGULATORY APPROVAL of a
LICENSED PRODUCT, provided that, if no PATENT has issued at the time this
milestone is achieved, the amount of the milestone shall be reduced from four
hundred thousand dollars ($400,000) to two hundred thousand dollars ($200,000);
and

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

     

    (5) 
Fifteen thousand dollars ($15,000) upon issuance of a PATENT.

    

    
      Each of
the foregoing milestone payments shall be made by LICENSEE to UTMDACC (without
invoice) within thirty (30) calendar days of achieving the milestone event and
shall not reduce the amount of any other payment provided for in this ARTICLE
IV; and

    

    

    
      	
               
      

            	
              (f)

            	
              The
      following percentages of all non-royalty consideration received by
      LICENSEE from any sublicensee pursuant to Sections 3.3 and 3.4
      hereinabove, including but not limited to, up-front payments, marketing,
      distribution, franchise, option, license, or documentation fees, research
      and development money, bonus and milestone payments and equity
      securities:

            

    

    

    (1) 
twenty-five percent (25%) of all non-royalty consideration if the sublicense is
executed before the third anniversary of the EFFECTIVE DATE; and

    

    (2) 
twenty percent (20%) of all non-royalty consideration if the sublicense is
executed on or after the third anniversary of the EFFECTIVE DATE;
and

    

    
      	
               
      

            	
              (g)

            	
              This
      AGREEMENT may be assigned in accordance with the provisions of Section
      12.1 subject to the payment to UTMDACC of a one hundred thousand dollar
      ($100,000) assignment fee prior to the assignment. In the event the
      assignment fee is not paid prior to the assignment, said assignment shall
      be void.

            

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

     

    
      	
              4.2

            	
              Unless
      otherwise provided, all such payments are payable quarterly within thirty
      (30) days after finalization of the financial statements for the quarters
      ended March 31, June 30, September 30, and December 31 of each year during
      the term of this AGREEMENT or within sixty (60) days after March 31, June
      30, September 30, and December 31 of each year during the term of this
      AGREEMENT (whichever is earlier), at which time LICENSEE will also deliver
      to UTMDACC a true and accurate report, giving such particulars of the
      business conducted by LICENSEE, its AFFILIATES and its sublicensees, if
      any exist, during the preceding three (3) calendar months under this
      AGREEMENT as necessary for UTMDACC to account for LICENSEE's payments
      hereunder.  This report will include pertinent data, including,
      but not limited to:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      accounting methodologies used to account for and calculate the items
      included in the report and any differences in such accounting
      methodologies used by LICENSEE, its AFFILIATES and
      sublicensees  since the previous report;
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              a
      list of LICENSED PRODUCTS produced by LICENSEE, its AFFILIATES and
      sublicensees for the three (3) preceding calendar months;
    and

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      total quantities of LICENSED PRODUCTS produced by LICENSEE, its AFFILIATES
      and sublicensees; and

            

    

    

    
      	
            	
              (d)

            	
              the
      total SALES by LICENSEE, its AFFILIATES and sublicensees;
    and

            

    

    

    
      	
            	
              (e)

            	
              the
      calculation of NET SALES; and

            

    

     

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
      	
            	
              (f)

            	
              the
      royalties so computed and due UTMDACC and/or minimum
      royalties; and

            

    

    

    
      	
               
      

            	
              (g)

            	
              all
      consideration received from each sublicensee or assignee and payments due
      UTMDACC; and

            

    

    

    
      	
            	
              (h)

            	
              all
      other amounts due UTMDACC herein.

            

    

    

    Simultaneously
with the delivery of each such report, LICENSEE agrees to pay UTMDACC the amount
due, if any, for the period of such report.  These reports are
required even if no payments are due.

    

    
      	
              4.3

            	
              During
      the term of this AGREEMENT and for one (1) year thereafter, LICENSEE
      agrees to keep complete and accurate records of its, its AFFILIATES' and
      its sublicensees' SALES and NET SALES in sufficient detail to enable the
      royalties and other payments due hereunder to be determined. LICENSEE
      agrees to permit UTMDACC or its representatives, at UTMDACC's expense, to
      periodically examine upon reasonable notice LICENSEE’s books, ledgers, and
      records during regular business hours for the purpose of and to the extent
      necessary to verify any report required under this AGREEMENT. If any
      amounts due UTMDACC are determined to have been underpaid in an amount
      equal to or greater than five percent (5%) of the total amount due during
      the period so examined, then LICENSEE will pay the cost of the examination
      plus accrued interest at the lesser of: (1) the highest allowable rate; or
      (2) the prime rate plus two
percent.

            

    

    

    
      	
              4.4

            	
              Within
      thirty (30) calendar days following each anniversary of the EFFECTIVE
      DATE, LICENSEE will deliver to UTMDACC a written progress report as to
      LICENSEE's and any sublicensee’s efforts and accomplishments during the
      preceding year in diligently commercializing LICENSED SUBJECT MATTER in
      the LICENSED TERRITORY and LICENSEE's and sublicensees' commercialization
      plans for the upcoming year.

            

    

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

     

    
      	
              4.5

            	
              All
      amounts payable hereunder by LICENSEE will be paid in United States funds
      without deductions for taxes, assessments, fees, or charges of any
      kind.  Checks are to be made payable to The University of Texas
      M. D. Anderson Cancer Center, and sent by United States mail to Box
      297402, Houston, Texas 77297, Attention: Grants and Contracts or by wire
      transfer to:

            

    

    

    JPMorgan
Chase Bank, N.A.

    910
Travis

    Houston,
Texas 77002

    SWIFT:  CHASUS33
(for international wires only)

    ABA
ROUTING NO: 021000021

    ACCOUNT
NAME: Univ. of
Texas M. D. Anderson Cancer Center

    ACCOUNT
NO.: 1586838979

    REFERENCE:  include
title and EFFECTIVE DATE of AGREEMENT and type of payment (e.g., license
documentation fee, milestone payment, royalty [including applicable
patent/application identified by MDA reference number and patent number or
application serial number], or maintenance fee, etc.).

    

    
      	
              4.6

            	
              No
      payments due or royalty rates owed under this AGREEMENT will be reduced as
      the result of co-ownership of LICENSED SUBJECT MATTER by BOARD and another
      party, including, but not limited to,
LICENSEE.

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    V.  IND AND
SPONSORED RESEARCH

    

    
      	
              5.1

            	
              LICENSEE shall use best efforts to file an
      Investigational New Drug Application ("IND") with
      the FDA for a LICENSED PRODUCT containing liposomal curcumin within two
      (2) years of the EFFECTIVE DATE.

            

    

    

    
      	
              5.2

            	
              In addition to the consideration set forth in
      ARTICLE IV, LICENSEE shall provide funding for the completion of all
      preclinical studies necessary to file an IND on a
      LICENSED PRODUCT containing liposomal curcumin, and shall fund at least
      $250,000.00 towards such preclinical studies.  Of the
      $250,000 funding obligation, at least $100,000 shall be funded within six
      months of the EFFECTIVE DATE, and an aggregate total of at least $200,000
      shall be funded within one year of the EFFECTIVE
      DATE.  

            

    

    

    
      	
              5.3

            	
              If
      LICENSEE desires to sponsor
      additional research for or related to the LICENSED SUBJECT MATTER,
      and particularly where LICENSEE receives payments for sponsored research
      pursuant to a sublicense under this AGREEMENT, LICENSEE (a) will notify
      UTMDACC in writing of all opportunities to conduct this sponsored research
      (including clinical trials, if applicable), (b) will solicit research
      and/or clinical proposals from UTMDACC for this purpose, and (c) will give
      good faith consideration to funding the proposals at
    UTMDACC.

            

    

    

    VI.  PATENTS
AND INVENTIONS

    

    
      	
              6.1

            	
              If
      after consultation with LICENSEE both parties agree that a new patent
      application should be filed for LICENSED SUBJECT MATTER, UTMDACC will
      prepare and file appropriate patent applications, and LICENSEE will pay
      the reasonable cost of searching, preparing, filing, prosecuting and
      maintaining same.  If LICENSEE notifies UTMDACC that it does not
      intend to pay the cost of an application, or if LICENSEE does not respond
      or make an effort to agree with UTMDACC on the disposition of rights of
      the subject invention, then UTMDACC may file such application at its own
      expense and LICENSEE’s rights to such invention under this AGREEMENT shall
      terminate in their entirety.  UTMDACC will provide LICENSEE with
      a copy of the application for which LICENSEE has paid the cost of filing,
      as well as copies of any documents received or filed during prosecution
      thereof.  The parties agree that they share a common legal
      interest to get valid enforceable patents and that LICENSEE will keep all
      privileged information received pursuant to this Section
      confidential.

            

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

     

    VII.  INFRINGEMENT
BY THIRD PARTIES

    

    
      	
              7.1

            	
              LICENSEE,
      at its expense, must enforce any patent exclusively licensed hereunder
      against infringement by third parties and is entitled to retain recovery
      from such enforcement.  After reimbursement of LICENSEE’s
      reasonable legal costs and expenses related to such recovery, LICENSEE
      agrees to pay UTMDACC either:  (a) the royalty detailed in
      Section 4.1(d) for any monetary recovery that is for sales of LICENSED
      PRODUCTS lost due to the infringement and related punitive damages; or (b)
      fifty percent (50%) of reasonable royalties awarded and related punitive
      damages in any monetary recovery in which the award is for reasonable
      royalties. LICENSEE must notify UTMDACC in writing of any potential
      infringement within thirty (30) calendar days of knowledge
      thereof.  If LICENSEE does not file suit against or enter into a
      sublicense with a substantial infringer within six (6) months of knowledge
      thereof, then BOARD or UTMDACC may, at its sole discretion, enforce any
      patent licensed hereunder on behalf of itself and LICENSEE, with UTMDACC
      retaining all recoveries from such enforcement, and/or reduce the license
      granted hereunder to non-exclusive.

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    
      	
              7.2

            	
              In
      any suit or dispute involving an infringer, the parties agree to cooperate
      fully with each other.  At the request and expense of the party
      bringing suit, the other party will permit access during regular business
      hours, to all relevant personnel, records, papers, information, samples,
      specimens, and the like in its
possession.

            

    

    

    VIII.  PATENT
MARKING

    

    
      	
              8.1

            	
              LICENSEE
      agrees that all packaging containing individual LICENSED PRODUCT(S),
      documentation therefor, and, when possible, actual LICENSED PRODUCT(S)
      sold by LICENSEE, AFFILIATES, and/or sublicensees of LICENSEE will be
      permanently and legibly marked with the number of any applicable patent(s)
      licensed hereunder in accordance with each country's patent laws,
      including Title 35, United States
Code.

            

    

    

    IX.  INDEMNIFICATION
AND INSURANCE

    

    
      
        	
                9.1

              	
                LICENSEE
      agrees to hold harmless and indemnify BOARD, SYSTEM, UTMDACC, their
      Regents, officers, employees, students and agents from and against any
      claims, demands, or causes of action whatsoever, costs of suit and
      reasonable attorney’s fees, including without limitation, those costs
      arising on account of any injury or death of persons or damage to property
      caused by, or arising out of, or resulting from, the exercise or practice
      of the rights granted hereunder by LICENSEE, its officers, its AFFILIATES
      or their officers, employees, agents or
  representatives.

              

      

    

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    
      	
              9.2

            	
              In
      no event shall BOARD, SYSTEM or UTMDACC be liable for any indirect,
      special, consequential or punitive damages (including, without limitation,
      damages for loss of profits or expected savings or other economic losses,
      or for injury to persons or property) arising out of, or in connection
      with, this AGREEMENT or its subject matter, regardless of whether BOARD,
      SYSTEM or UTMDACC knows or should know of the possibility of such
      damages.

            

    

    

    
      
        	
                9.3

              	
                Beginning
      at the time when any LICENSED SUBJECT MATTER is being distributed or sold
      (including for the purpose of obtaining regulatory approvals) by LICENSEE,
      an AFFILIATE, or by a sublicensee, LICENSEE shall, at its sole cost and
      expense, procure and maintain commercial general liability insurance in
      amounts not less than two million dollars ($2,000,000) per incident and
      two million dollars ($2,000,000) annual aggregate, and LICENSEE shall use
      reasonable efforts to have the BOARD, SYSTEM, UTMDACC, their Regents,
      officers, employees, students and agents named as additional insureds.
      Such commercial general liability insurance shall provide: (i) product
      liability coverage; (ii) broad form contractual liability coverage for
      LICENSEE's indemnification under this AGREEMENT; and (iii) coverage for
      litigation costs. The minimum amounts of insurance coverage required
      herein shall not be construed to create a limit of LICENSEE's liability
      with respect to its indemnification under this
  AGREEMENT.

              

      

    

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    
      	
              9.4

            	
              LICENSEE
      shall provide UTMDACC with written evidence of such insurance within
      thirty (30) calendar days of its procurement.  Additionally,
      LICENSEE shall provide UTMDACC with written notice of at least fifteen
      (15) calendar days prior to the cancellation, non-renewal or material
      change in such insurance.

            

    

    

    
      	
              9.5

            	
              LICENSEE
      shall maintain such commercial general liability insurance beyond the
      expiration or termination of this AGREEMENT during: (i) the period that
      any LICENSED SUBJECT MATTER developed pursuant to this AGREEMENT is being
      commercially distributed or sold by LICENSEE, an AFFILIATE or by a
      sublicensee or agent of LICENSEE; and (ii) the two (2) year period
      immediately after such period.

            

    

    

    
      X.  USE
OF BOARD AND UTMDACC’S NAME

    

    

    

    
      	
              10.1

            	
              LICENSEE
      will not use the name of (or the name of any employee of) UTMDACC, SYSTEM
      or BOARD in any advertising, promotional or sales literature, on its Web
      site, or for the purpose of raising capital without the advance express
      written consent of BOARD secured
through:

            

    

    

    The
University of Texas

    M. D.
Anderson Cancer Center

    Legal
Services, Unit 0537

    P.O. Box
301439

    Houston,
TX  77230-1439

    ATTENTION:  Natalie
Wright

    Email:  nwright@mdanderson.org

    

    

    Notwithstanding
the above, LICENSEE may use the name of (or name of employee of) UTMDACC, SYSTEM
or BOARD in routine business correspondence, or as needed in appropriate
regulatory submissions without express written consent.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

    XI.  CONFIDENTIAL
INFORMATION AND PUBLICATION

    

    
      	
              11.1

            	
              UTMDACC
      and LICENSEE each agree that all information contained in documents marked
      "confidential" and forwarded to one by the other (i) are to be received in
      strict confidence, (ii) are to be used only for the purposes of this
      AGREEMENT, and (iii) will not be disclosed by the recipient party (except
      as required by law or court order), its agents or employees without the
      prior written consent of the disclosing party, except to the extent that
      the recipient party can establish by competent written proof that such
      information:

            

    

    

    
      	
               
      

            	
              (a)

            	
              was
      in the public domain at the time of disclosure;
  or

            

    

    

    
      	
               
      

            	
              (b)

            	
              later
      became part of the public domain through no act or omission of the
      recipient party, its employees, agents, successors or assigns;
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              was
      lawfully disclosed to the recipient party by a third party having the
      right to disclose it; or

            

    

    

    
      	
               
      

            	
              (d)

            	
              was
      already known by the recipient party at the time of disclosure;
      or

            

    

    

    
      	
               
      

            	
              (e)

            	
              was
      independently developed by the recipient party without use of the
      disclosing party’s confidential information;
or

            

    

    

    
      	
               
      

            	
              (f)

            	
              is
      required by law or regulation to be
disclosed.

            

    

    

    
      	
              11.2

            	
              Each
      party’s obligation of confidence hereunder will be fulfilled by using at
      least the same degree of care with the disclosing party's confidential
      information as it uses to protect its own confidential information, but
      always at least a reasonable degree of care. This obligation will exist
      while this AGREEMENT is in force and for a period of three (3) years
      thereafter.

            

    

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

     

    
      	
              11.3

            	
              UTMDACC
      reserves the right to publish the general scientific findings from
      research related to LICENSED SUBJECT MATTER, with due regard to the
      protection of LICENSEE’s confidential information.  UTMDACC will
      submit the manuscript of any proposed publication to LICENSEE at least
      thirty (30) calendar days before publication, and LICENSEE shall have the
      right to review and comment upon the publication in order to protect
      LICENSEE’s confidential information. Upon LICENSEE’s request, publication
      may be delayed up to sixty (60) additional calendar days to enable
      LICENSEE to secure adequate intellectual property protection of LICENSEE’s
      confidential information that would otherwise be affected by the
      publication.

            

    

    

    XII.  ASSIGNMENT

    

    
      	
              12.1

            	
              Except
      in connection with the sale of substantially all of LICENSEE's assets to a
      third party, this AGREEMENT may not be assigned by LICENSEE without the
      prior written consent of UTMDACC, which will not be unreasonably
      withheld.

            

    

    

    XIII.  TERM
AND TERMINATION

    

    
      	
              13.1

            	
              Subject
      to Sections 13.3 and 13.4 hereinbelow, the term of this AGREEMENT is from
      the EFFECTIVE DATE to the full end of the term or terms for which PATENT
      RIGHTS have not expired, or if only TECHNOLOGY RIGHTS are licensed and no
      PATENT RIGHTS are applicable, for a term of fifteen (15) years. If no
      PATENT has issued and a LICENSED PRODUCT receives REGULATORY APPROVAL
      prior to the end of the term set forth in this Section 13.1, and the
      AGREEMENT has not otherwise terminated or expired, then the term shall be
      automatically extended until fifteen (15) years past regulatory approval
      of the LICENSED PRODUCT.

            

    

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

     

    
      	
              13.2

            	
              Any
      time after the third anniversary of the EFFECTIVE DATE, BOARD or UTMDACC
      have the right to terminate this license in any national political
      jurisdiction within the LICENSED TERRITORY if LICENSEE, within ninety (90)
      calendar days after receiving written notice from UTMDACC of the intended
      termination, fails to provide written evidence satisfactory to UTMDACC
      that LICENSEE or its sublicensee(s) has commercialized or is actively and
      effectively attempting to commercialize a licensed invention in such
      jurisdiction(s).  The following definitions apply to Section
      13.2: (a) "commercialized" means having SALES in such jurisdiction; and
      (b) "actively and effectively attempting to commercialize" means having an
      ongoing and active research, development, manufacturing, marketing or
      sales program as appropriate, directed toward obtaining regulatory
      approval, and/or production and/or SALES in any
    jurisdiction.

            

    

    

    
      	
              13.3

            	
              Subject
      to any rights herein which survive termination, this AGREEMENT will
      earlier terminate in its entirety:

            

    

    

    
      	
               
      

            	
              (a)

            	
              automatically,
      if LICENSEE becomes bankrupt or insolvent and/or if the business of
      LICENSEE shall be placed in the hands of a receiver, assignee, or trustee,
      whether by voluntary act of LICENSEE or otherwise;
  or

            

    

    

    
      	
               
      

            	
              (b)

            	
              upon
      thirty (30) calendar days written notice from UTMDACC, if LICENSEE
      breaches or defaults on the payment or report obligations of ARTICLE IV,
      or use of name obligations of ARTICLE X, unless, before the end of the
      such thirty (30)-calendar day notice period, LICENSEE has cured the
      default or breach to UTMDACC’s satisfaction, and so notifies UTMDACC,
      stating the manner of the cure; or

            

    

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              upon thirty (30) calendar days written notice from
      UTMDACC, if LICENSEE fails to fund completion of preclinical studies or
      file an IND, as provided in ARTICLE V, unless, before the end of the such
      thirty (30)-calendar day notice period, LICENSEE has cured the default or
      breach to UTMDACC’s satisfaction, and so notifies UTMDACC, stating the
      manner of the cure; or 

            

    

    

    
      	
               
      

            	
              (d)

            	
              upon
      ninety (90) calendar days written notice from UTMDACC if LICENSEE breaches
      or defaults on any other obligation under this AGREEMENT, unless, before
      the end of the such ninety (90) calendar-day notice period, LICENSEE has
      cured the default or breach to UTMDACC’s satisfaction and so notifies
      UTMDACC, stating the manner of the cure;
or

            

    

    

    
      	
               
      

            	
              (e)

            	
              at
      any time by mutual written agreement between LICENSEE and UTMDACC upon one
      hundred eighty (180) calendar days written notice to all parties and
      subject to any terms herein which survive termination;
  or

            

    

    

    
      	
               
      

            	
              (f)

            	
              if
      Section 13.2 is invoked.

            

    

    

    
      	
              13.4

            	
              Upon
      termination of this AGREEMENT:

            

    

    

    
      	
               
      

            	
              (a)

            	
              nothing
      herein will be construed to release either party of any obligation
      maturing prior to the effective date of the termination;
    and

            

    

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              LICENSEE
      covenants and agrees to be bound by the provisions of ARTICLES IX
      (Indemnification and Insurance), X (Use of Board and UTMDACC’s Name) and
      XI (Confidential Information and Publication) of this AGREEMENT;
      and

            

    

    

    
      	
               
      

            	
              (c)

            	
              LICENSEE
      may, for a period of one year after the effective date of the termination,
      sell all LICENSED PRODUCTS and parts therefor that it has on hand at the
      date of termination, if LICENSEE pays the earned royalty thereon and any
      other amounts due pursuant to ARTICLE IV of this AGREEMENT;
      and

            

    

    

    
      	
               
      

            	
              (d)

            	
              Subject
      to Section 13.4(c), LICENSEE agrees to
      cease and desist any use and all SALE of the LICENSED SUBJECT MATTER and
      LICENSED PRODUCTS upon termination of this
  AGREEMENT.

            

    

    

    XIV.  WARRANTY:
SUPERIOR-RIGHTS

    

    
      	
              14.1

            	
              Except
      for the rights, if any, of the Government of the United States of America
      as set forth below, BOARD represents and warrants its belief that (a) it
      is the owner of the entire right, title, and interest in and to LICENSED
      SUBJECT MATTER, (b) it has the sole right to grant licenses thereunder,
      and (c) it has not knowingly granted licenses thereunder to any other
      entity that would restrict rights granted hereunder except as stated
      herein.

            

    

    

    
      	
              14.2

            	
              LICENSEE
      understands that the LICENSED SUBJECT MATTER may have been developed under
      a funding agreement with the Government of the United States of America
      ("Government") and, if so, that the Government may have certain rights
      relative thereto.  This AGREEMENT is explicitly made subject to
      the Government's rights under any such agreement and any applicable law or
      regulation.  To the extent that there is a conflict between any
      such agreement, applicable law or regulation and this AGREEMENT, the terms
      of such Government agreement, applicable law or regulation shall
      prevail.  LICENSEE agrees that LICENSED PRODUCTS used or SOLD in
      the United States will be manufactured substantially in the United States,
      unless a written waiver is obtained in advance from the
      GOVERNMENT.

            

    

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

     

    
      	
              14.3

            	
              LICENSEE
      understands and agrees that BOARD and UTMDACC, by this AGREEMENT, make no
      representation as to the operability or fitness for any use, safety,
      efficacy, approvability by regulatory authorities, time and cost of
      development, patentability, and/or breadth of the LICENSED SUBJECT MATTER.
      BOARD and UTMDACC, by this AGREEMENT, also make no representation as to
      whether any patent covered by PATENT RIGHTS is valid or as to whether
      there are any patents now held, or which will be held, by others or by
      BOARD or UTMDACC in the LICENSED FIELD, nor do BOARD and UTMDACC make any
      representation that the inventions contained in PATENT RIGHTS do not
      infringe any other patents now held or that will be held by others or by
      BOARD.

            

    

    

    
      	
              14.4

            	
              LICENSEE,
      by execution hereof, acknowledges, covenants and agrees that LICENSEE has
      not been induced in any way by BOARD, SYSTEM, UTMDACC or employees thereof
      to enter into this AGREEMENT, and further warrants and represents that (a)
      LICENSEE has conducted sufficient due diligence with respect to all items
      and issues pertaining to this AGREEMENT; and (b) LICENSEE has adequate
      knowledge and expertise, or has used knowledgeable and expert consultants,
      to adequately conduct such due diligence, and agrees to accept all risks
      inherent herein.

            

    

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

     

    XV.  GENERAL

    

    
      	
              15.1

            	
              This
      AGREEMENT constitutes the entire and only agreement between the parties
      for LICENSED SUBJECT MATTER and all other prior negotiations,
      representations, agreements and understandings are superseded
      hereby.  No agreements altering or supplementing the terms
      hereof will be made except by a written document signed by both
      parties.

            

    

    

    
      	
              15.2

            	
              Any
      notice required by this AGREEMENT must be given by prepaid, first class,
      certified mail, return receipt requested, and addressed in the case of
      UTMDACC to:

            

    

    

    The
University of Texas M. D. Anderson Cancer Center

    Office of
Technology Commercialization

    7515 S.
Main, Suite 490, Unit 0510

    Houston,
Texas 77030

    ATTENTION:
Christopher C. Capelli, M.D.

     

    or in the
case of LICENSEE to:

    

    SIGNPATH
PHARMACEUTICALS, INC.

    c/o Myers
Associates

    45
Broadway

    2nd
Floor

    New York,
New York  10006

    ATTENTION:  Bruce
Myers

    

    or other
addresses as may be given from time to time under the terms of this notice
provision.

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    

    
      	
              15.3

            	
              LICENSEE
      must comply with all applicable federal, state and local laws and
      regulations in connection with its activities pursuant to this AGREEMENT.
      LICENSEE acknowledges that the LICENSED SUBJECT MATTER is subject to U. S.
      export control jurisdiction.  LICENSEE agrees to comply with all
      applicable international and national laws that apply to the LICENSED
      SUBJECT MATTER, including U.S. Export Administration Regulations, as well
      as end-user, end-use, and destination restrictions applied by the United
      States.

            

    

    

    
      	
              15.4

            	
              This
      AGREEMENT will be construed and enforced in accordance with the laws of
      the United States of America and of the State of Texas, without regard to
      its conflict of law provisions.  The Texas State Courts of
      Harris County, Texas (or, if there is exclusive federal jurisdiction, the
      United States District Court for the Southern District of Texas) shall
      have exclusive jurisdiction and venue over any dispute arising out of this
      AGREEMENT, and LICENSEE consents to the jurisdiction of such courts;
      however, nothing in this AGREEMENT shall be deemed as a waiver by BOARD,
      SYSTEM or UTMDACC of its sovereign
immunity.

            

    

    

    
      	
              15.5

            	
              Any
      dispute or controversy arising out of or relating to this AGREEMENT, its
      construction or its actual or alleged breach will be decided by
      mediation.  If the mediation does not result in a resolution of
      such dispute or controversy, it will be finally decided by an appropriate
      method of alternate dispute resolution, including without limitation,
      arbitration, conducted in the city of Houston, Harris County, Texas, in
      accordance with the applicable, then-current procedures of the American
      Arbitration Association.  The arbitration panel will include
      members knowledgeable in the evaluation of the LICENSED SUBJECT
      MATTER.  Judgment upon the award rendered may be entered in the
      highest court or forum having jurisdiction, state or
      federal.  The provisions of this Section 15.5 will not apply to
      decisions on the validity of patent claims or to any dispute or
      controversy as to which any treaty or law prohibits such
      arbitration.  The decision of the arbitration must be sanctioned
      by a court of law having jurisdiction to be binding upon and enforceable
      by the parties.

            

    

     

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

     

    
      	
              15.6

            	
              Failure
      of BOARD or UTMDACC to enforce a right under this AGREEMENT will not act
      as a waiver of right or the ability to later assert that right relative to
      the particular situation involved.

            

    

    

    
      	
              15.7

            	
              Headings
      included herein are for convenience only and will not be used to construe
      this AGREEMENT.

            

    

    

    
      	
              15.8

            	
              If
      any part of this AGREEMENT is for any reason found to be unenforceable,
      all other parts nevertheless will remain
  enforceable.

            

    

     

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused their duly authorized representatives to execute this
AGREEMENT.

     

    
      
        	
                BOARD
      OF REGENTS OF THE

                UNIVERSITY
      OF TEXAS SYSTEM

              	 	
                SIGNPATH
      PHARMACEUTICALS, INC.

              
	 
      	 
      	 
      	 	 
      	 
      	 
      
	
                By

              	
                /s/ John Mendelsohn

              	 	
                By

              	
                /s/ Bruce Meyers

              
	 
      	
                John
      Mendelsohn, M.D.

              	 	 
      	
                Bruce
      Meyers

              
	 
      	
                President

              	 	 
      	
                Acting
      President

              
	 
      	
                The
      University of Texas

              	 	 
      	 
      	 
      
	 
      	
                M.
      D. Anderson Cancer Center

              	 	 
      	 
      	 
      
	
                Date:

              	
                2/21/07

              	 
      	 	
                Date:

              	
                1/26/07

              	 
      
	 	 	 	 	 	 	 
	
                THE
      UNIVERSITY OF TEXAS M. D. ANDERSON CANCER CENTER

              	 	 
      	 
      	 
      
	 
      	 
      	 
      	 	 
      	 
      	 
      
	
                By

              	
                /s/ Leon Leach

              	 	 
      	 
      	 
      
	
              	      
                Leon
      Leach

              	 	 
      	 
      	 
      
	 
      	
                Executive
      Vice President

              	 	 
      	 
      	 
      
	 
      	
                The
      University of Texas

              	 	 
      	 
      	 
      
	 
      	
                M.
      D. Anderson Cancer Center

              	 	 
      	 
      	 
      
	
                Date:

              	
                2/16/07

              	 
      	 	 
      	 
      	 
      
	 
      	 
      	 
      	 	 
      	 
      	 
      
	
                Approved
      as to Content:

              	 
      	 	 
      	 
      	 
      
	 
      	 
      	 
      	 	 
      	 
      	 
      
	
                By

              	
                /s/ Christopher C. Capelli

              	 	 
      	 
      	 
      
	
                 

              	      
                Christopher C.
      Capelli, M.D.

              	 	 
      	 
      	 
      
	 
      	
                Vice
      President, Technology Transfer

              	 	 
      	 
      	 
      
	 
      	
                M.
      D. Anderson Cancer Center

              	 	 
      	 
      	 
      
	
                Date:

              	
                2/5/07

              	 
      	 	 
      	 
      	 
      

      

    

     

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

     

     

     

    EXHIBIT
I

    MDA03-001,
"Liposomal Curcumin for treatment of Cancer," Inventors Razelle Kurzrock, M.D.,
Lan Li, Kapil Mehta, Ph.D., Bharat B. Aggarwal, Ph.D.

     

    
      
         

      

      
        30

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