The termination of the Collaboration and Exclusive License Agreement! WTH, no sales in 12 months?!
Section 1 – Registrant’s Business and Operations
Item 1.02 Termination of a Material Definitive Agreement.
On February 2, 2010, Power3 Medical Products, Inc. (the “Company”) delivered notice of termination of the Collaboration and Exclusive License Agreement (the “Agreement”), dated January 23, 2009, between the Company and Transgenomic, Inc. (“Transgenomic”), to Transgenomic.
Under the Agreement, the Company granted an exclusive, royalty-bearing license to Transgenomic to develop certain patent rights and other proprietary information of the Company and sell products that use the patent rights and other proprietary information. The Company had the right to terminate the Agreement in the event Transgenomic failed to complete the first commercial sale of a licensed product within 12 months of the date the Agreement was executed, and had the right to terminate the Agreement in the event Transgenomic committed one or more material breaches of the Agreement. Transgenomic failed to complete the first commercial sale of a licensed product within 12 months of the date the Agreement was executed. In addition, Transgenomic committed material breaches of the Agreement, including a breach of the confidentiality provisions of the Agreement. As a result, on February 2, 2010, the Company exercised its right to terminate the Agreement for the aforementioned reasons.
The termination of the Agreement becomes effective 90 days after the date the notice of termination was received by Transgenomic in connection with its failure to complete the first commercial sale of a licensed product within 12 months of the date the Agreement was executed, and becomes effective 45 days after the date the notice of termination was received by Transgenomic in connection with the material breaches of the Agreement that were committed by Transgenomic, including its breach of the confidentiality provisions of the Agreement.
The Company did not incur any early termination penalties in connection with its decision to terminate the Agreement.
--------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
POWER3 MEDICAL PRODUCTS, INC.
Dated: February 3, 2010 /s/ Helen R. Park
Helen R. Park
Chief Executive Officer
Market Data 
Markets 
AI
