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<SEC-DOCUMENT>0001297077-08-000084.txt : 20080729
<SEC-HEADER>0001297077-08-000084.hdr.sgml : 20080729
<ACCEPTANCE-DATETIME>20080729172340
ACCESSION NUMBER:		0001297077-08-000084
CONFORMED SUBMISSION TYPE:	10KSB
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080430
FILED AS OF DATE:		20080729
DATE AS OF CHANGE:		20080729

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHAMPIONS BIOTECHNOLOGY, INC.
		CENTRAL INDEX KEY:			0000771856
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				521401755
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		10KSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		08976746

	BUSINESS ADDRESS:	
		STREET 1:		2200 WILSON BLVD
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201
		BUSINESS PHONE:		703-526-0400

	MAIL ADDRESS:	
		STREET 1:		2200 WILSON BLVD.
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHAMPIONS SPORTS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL GROUP INC
		DATE OF NAME CHANGE:	19860319
</SEC-HEADER>
<DOCUMENT>
<TYPE>10KSB
<SEQUENCE>1
<FILENAME>cbio0729.htm
<DESCRIPTION>CHAMPIONA 10-KSB
<TEXT>
<html>
<head><meta content="text/html; charset=">
<title>SECURITIES AND EXCHANGE COMMISSION</title>
</head>

<body >
<ul>
</ul>

<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>SECURITIES AND EXCHANGE COMMISSION
</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Washington, D.C. 20549</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FORM 10-KSB</b></font></p align="center">
</td>
</tr>
</table></div>
<p align="center">
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
<p>
<font size="2">Mark One</font></p>
</td>
<td width="377.333239" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
<p>
<font size="2">[X]</font></p>
</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></p>
</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">For the fiscal year ended April 30, 2008</font><p align="center">
<font size="2">OR</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
<p>
<font size="2">[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;</font></p>
</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></p>
</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
</table></div>
<p align="center">
<p align="center">
<font size="2">For the transition period from ______ to
________</font><p align="center">
<font size="2">Commission file number
<u>&nbsp;0-17263</u></font><p align="center">
<font size="2"><b><u>CHAMPIONS BIOTECHNOLOGY,
INC.</u></b></font><br><font size="2">(Exact name of registrant as specified in
its charter)</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p>
<font size="2"><u>Delaware</u></font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p>
<font size="2"><u>52-1401755</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p>
<font size="2">(State or other jurisdiction of</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p>
<font size="2">(I.R.S. Employer</font></p>
</td>
</tr>
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p>
<font size="2">organization)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p>
<font size="2">Identification No.)</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><u>1400 N. 14<sup>th</sup> Street, Arlington, VA
22209</u></font><br><font size="2">(Address of principal executive
offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip code)</font><p align="center">
<font size="2"><u>(410) 630-1313</u></font><br><font size="2">(Registrant's
telephone number, including area code)</font><p align="center">
<font size="2">Securities registered under Section 12(g) of the Exchange
Act:</font><p align="center">
<font size="2"><u>Common Stock, par value $.001 per
share</u></font><br><font size="2">(Title of Class)</font></p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">Check whether the issuer is not required to file reports pursuant
to Section 13 or 15(d) of the Exchange Act &#9633;</font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">Check whether the issuer (1) filed all reports required  to be
filed by Section 13 or 15(d) of the Securities Exchange Act during the past 12
months (or for such shorter period that the Registrant was  required  to file
such  reports),  and (2) has been  subject to such filing requirements for the
past 90 days.&nbsp;&nbsp;&nbsp;Yes <u>&nbsp;X&nbsp;</u> No    <u>
</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B is not contained in this form, and no disclosure
will be contained, to the best of the registrant's knowledge, in a definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-KSB.&nbsp;&nbsp;&nbsp;[X]</font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">Indicate by check mark whether the registration is a shell
company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;&nbsp;Yes
<u>&nbsp;</u> No  <u>X</u> </font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">For the year ended April 30, 2008, the revenues of the registrant
were $1,399,940.</font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">The Company's common stock is listed on the Over-The-Counter
Bulletin Board under the stock ticker symbol "CSBR." The aggregate market value
of the Common Stock of the Registrant held by non-affiliates of the Registrant
based on the average bid and asked price on July 14, 2008, was approximately
$9,900,000.</font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">As of July 14, 2008, the Registrant had a total of 33,272,718
shares of common stock outstanding.</font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">DOCUMENTS INCORPORATED BY REFERENCE</font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">None</font></p>
</td>
</tr>
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p>
<font size="2">Transitional Small Business Disclosure Format (check one):
&nbsp;&nbsp;Yes    <u>&nbsp;&nbsp;</u> No    <u>X&nbsp;&nbsp;</u></font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
TABLE OF CONTENTS</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">PART I</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Special Note Regarding Forward-Looking Statements</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">3</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 1.&nbsp;&nbsp;Description of Business and Risk
Factors</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">3</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 2.&nbsp;&nbsp;Description of Property</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">8</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 3.&nbsp;&nbsp;Legal Proceedings</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">8</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 4.&nbsp;&nbsp;Submission of Matters to a Vote of Security
Holders</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">8</font></p>
</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">PART II</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 5.&nbsp;&nbsp;Market for Common Equity, Related Stockholder
Matters and Small Business Issuer Purchases of Equity Securities</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">9</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 6.&nbsp;&nbsp;Management's Discussion and Analysis of
Financial Condition and Results of Operations</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">10</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 7.&nbsp;&nbsp;Financial Statements</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">12</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 8.&nbsp;&nbsp;Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">12</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 8A.&nbsp;&nbsp;Controls and Procedures</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">12</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 8B.  Other Information</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
13</p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="46.666655" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">PART III</font></p>
</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">Item 9.&nbsp;&nbsp;Directors, Executive Officers, Promoters and
Control </font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons;
Compliance with Section 16(a) of the Exchange Act</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">14</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 10.&nbsp;&nbsp;Executive Compensation</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">16</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 11.&nbsp;&nbsp;Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">17</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 12.&nbsp;&nbsp;Certain Relationships and Related
Transactions, and Director Independence</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">19</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 13.&nbsp;&nbsp;Exhibits</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">19</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 14.&nbsp;&nbsp;Principal Accountant Fees and
Services</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">19</font></p>
</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Report of Independent Accountants and Financial
Statements</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">F1-F21</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Signatures</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">37</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">38</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">39</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">40</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;2</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As used in this Annual
Report 10-KSB, "Champions Biotechnology," "Champions," "we," "ours," and "us"
refer to Champions Biotechnology, Inc., except where the context otherwise
requires or as otherwise indicated.</font><p align="center">
<font size="2">DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains
"forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933 ("Securities Act") and Section 21E of the Securities Exchange Act of
1934 ("Exchanges Act") that inherently involve risk and uncertainties.  The
Company generally uses words such as "believe," "may," "could," "will,"
"intend," "estimate," "expect," "anticipate," "plan," "likely," "promise" and
similar expressions to identify forward-looking statements.  One should not
place undue reliance on these forward-looking statements.  The Company's actual
results could differ materially from those anticipated in the forward-looking
statements for many unforeseen factors, which may include, but are not limited
to, changes in general economic conditions, the ongoing threat of terrorism,
ability to have access to financing sources on reasonable terms and other risks
that are described in this document. Although the Company believes the
expectations reflected in the forward-looking statements are reasonable, they
relate only to events as of the date on which the statements are made, and the
Company's future results, levels of activity, performance or achievements may
not meet these expectations.  The Company does not intend to update any of the
forward-looking statements after the date of this document to conform these
statements to actual results or to changes in the Company's expectations, except
as required by law.</font><p align="center">
<font size="2">PART I</font><p>
<font size="2"><b>Item 1.&nbsp;&nbsp; Description of Business and Risk
Factors</b></font><p>
<font size="2"><i>Development of Business</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions
Biotechnology, Inc. was incorporated as a merger and acquisition company under
the laws of the State of Delaware on June 4, 1985 under the name "International
Group, Inc." In September 1985 the Company completed a public offering and
shortly thereafter acquired the world-wide rights to the Champions sports theme
restaurant concept and changed its name to "Champions Sports, Inc." In 1997, the
Company sold its Champions service mark and concept to Marriott International,
Inc. and until 2005, was a consultant to Marriott International, Inc. and
operated one Champions Sports Bar Restaurant.  In January 2007, the Company
changed its business direction to focus on biotechnology and subsequently
changed its name to Champions Biotechnology, Inc. In February 2007 the Company
acquired the patent rights to two Benzoylphenylurea (BPU) sulfur analog
compounds.  On May 18, 2007, the Company acquired Biomerk, Inc. from Dr. David
Sidransky and issued 4,000,000 restricted shares of its common stock in the
merger.  On April 30, 2008, the Company issued 1,428,572 restricted shares of
the Company's common stock at $1.75 per share pursuant to the terms of a private
investment financing.</font><p>
<font size="2"><i>Current Business</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is engaged
in the development of advanced preclinical platforms and predictive tumor
specific data to enhance and accelerate the value of oncology drugs.&nbsp; The
Company's Preclinical Platform is a novel approach based upon the implantation
of primary human tumors in immune deficient mice followed by propagation of the
resulting xenografts (Biomerk Tumorgrafts&#8482;) in a manner that preserves the
biological characteristics of the original human tumor.&nbsp; The Company
believes that Biomerk Tumorgrafts closely reflect human cancer biology and their
response to drugs is more predictive of clinical outcomes in cancer
patients.&nbsp; The Company is building its Biomerk Tumorgraft platform through
the procurement, development and characterization of numerous Tumorgrafts within
each of several cancer types.&nbsp; Tumorgrafts are procured through agreements
with institutions in the United States and Europe and developed and tested
through agreement with a U.S. based preclinical facility.&nbsp; </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to leverage
our preclinical platform to evaluate oncology drug candidates and to develop a
portfolio of novel drug candidates through pre-clinical trials.&nbsp; As drugs
progress through this early stage of development, the Company plans to sell,
partner or license them to pharmaceutical and/or biotechnology companies, as
appropriate.&nbsp; We believe this strategy will enable the Company to leverage
the competencies of these partners or licensees to maximize the Company's return
on investment in a time frame that is shorter than for traditional drug
development..&nbsp; The Company believes that this model is unlike that of many
new biotechnology companies that look to bring the process of drug development
through all phases of discovery, development, regulatory approvals, and
marketing, which requires a very large financial commitment and a long
development period, typically more than a decade, to commercialize.&nbsp; Thus
far we have acquired two oncology drug candidates and we have begun preclinical
development of the most promising candidate, SG410, through the use of contract
facilities.&nbsp; We have secured preclinical supply of SG410 and it is our
intention to develop a soluble form of the compound and evaluate its efficacy in
Biomerk Tumorgrafts from several cancer types.&nbsp; If results are promising it
is our intention to continue preclinical development and then sell, partner or
license SG410 for its remaining clinical development.&nbsp; </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company also offers
its Biomerk Tumorgraft predictive preclinical platform and tumor specific data
to physicians to provide information that may enhance personalized patient care
options and to companies for evaluation of oncology drugs in a platform that
integrates predictive testing with biomarker discovery.&nbsp; We provide
Personalized Oncology services to physicians in the field of oncology by
establishing and administering expert medical information panels for their
patients to analyze medical records and test results, to assist in understanding
conventional and research options and to identify and arrange for testing,
analysis and study of cancer tissues, as appropriate.&nbsp; In FY08 the Company
generated all its revenue from its growing Personalized Oncology services while
we continued development of our Biomerk Tumorgraft platform.&nbsp; </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In late FY08, as we
expanded our number of Biomerk Tumorgraft models, we began to offer leading
pharmaceutical and biotechnology companies the benefits of our Biomerk
Tumorgrafts for their preclinical evaluation programs.&nbsp; We provide
Preclinical eValuation services that we believe are more predictive of clinical
outcomes and that might provide for a faster and less expensive path for drug
approval. &nbsp;These services utilize Biomerk Tumorgrafts to evaluate tumor
sensitivity/resistance to various single and combination standard and novel
chemotherapy agents. &nbsp;The Preclinical eValuation services we offer also
include biomarker discovery and the identification of novel drug
combinations.&nbsp; &nbsp;In the fourth quarter of FY08 the Company established
an agreement with ImClone Systems Incorporated for the preclinical evaluation of
certain therapeutic antibodies in ImClone's clinical development pipeline. As
part of the agreement, ImClone will utilize our Biomerk Tumorgrafts&#8482; in
the initial preclinical evaluation.&nbsp; We are currently providing services or
in discussions to provide services to a number of other
companies.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">3</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><i>Operations</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company generated
operating revenue of $1,399,940 solely from its Personalized Oncology services
during the year ended April 30, 2008.</font><p>
<font size="2"><i>Competition</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in the
biotechnology industry is intense and based significantly on scientific,
technological and market forces.  These factors include the availability of
patent and other protection for technology and products, the ability to
commercialize technological developments and the ability to obtain government
approval for testing, manufacturing and marketing.  The Company faces
significant competition from other biotechnology companies. The majority of
these competitors are and will be will be substantially larger than the Company,
and have substantially greater resources and operating histories. There can be
no assurance that developments by other companies will not render our products
or technologies obsolete or noncompetitive or that we will be able to keep pace
with the technological or product developments of our competitors.  These
companies, as well as academic institutions, governmental agencies and private
research organizations also compete with us in recruiting and retaining highly
qualified scientific, technical and professional personnel and
consultants.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our preclinical
platform is proprietary and requires significant know-how to both initiate and
operate but is not patented.  It is, therefore, possible for competitors to
develop other implantation procedures or to discover the same procedures
utilized by the Company that could compete with the Company in its
market.</font><p>
<font size="2"><i>Patent Applications</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the Company's
intention to protect its proprietary property through the filing of U.S. and
international patent applications, both broad and specific, where necessary and
reasonable. In February 2007, the Company acquired the patent rights to two
Benzoylphenylurea (BPU) sulfur analog compounds that have shown promising potent
activity against in vitro and in vivo models of prostate and pancreatic cancer.
The acquired rights include pending U.S. Patent Application no. 11/673,519 and
corresponding international patent application (PCT/US2006/014449) filed under
the Patent Cooperation Treaty (PCT), both entitled Design and Synthesis of Novel
Tubulin Polymerization Inhibitors:  Benzoylphenylurea (BPU) Sulfur
Analogs.</font><p>
<font size="2"><i>Research and Development</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the past fiscal
year, the Company spent $199,743 on research and developmentto develop our
preclinical platform.</font><p>
<font size="2"><i>Government Regulation</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The research,
development, and marketing of the Company's products are subject to federal,
state, local, or foreign legislation or regulation, including the interpretation
of and compliance with existing, proposed, and future regulatory requirements
imposed by the U.S. Food and Drug Administration ("FDA") in the United States
and by comparable authorities in other countries. The costs of bringing new
drugs through the regulatory approval process and to the market are extremely
high, and the Company plans to sell, partner or license its drug candidates to
pharmaceutical and/or biotechnology companies, as appropriate prior to pursuing
the FDA approval necessary to commercially market its drug products.</font><p>
<font size="2"><i>Employees</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April 30, 2008,
the Company had four employees. </font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">4</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>RISK FACTORS</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should carefully
consider the risks described below together with all of the other information
included in this report. The risks and uncertainties described below are not the
only ones we face.  Additional risks not presently known or that we currently
consider insignificant may also impair our business operations in the future. An
investment in our common stock is very risky. If any of the following risks
materialize, our business, financial condition or results of operations could be
adversely affected. In such an event, the trading price of our common stock
could decline, and you may lose part or all of your investment. </font><p>
<font size="2"><b>We historically have lost money, expect losses for the
foreseeable future, require significant capital and may never achieve
profitability.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We historically have
lost money. In the year ended April 30, 2008, we had net income of $35,698 and
in the year ended April 30, 2007, we sustained a net loss of $170,058. At April
30, 2008, we had an accumulated deficit of $7,068,547.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of these
losses may vary significantly from year-to-year and quarter-to-quarter and will
depend on, among other factors:</font></p>
<ul>
<li><font size="2">the timing and cost of development for our preclinical
platform, products and technology;</font></li>
<li><font size="2">the progress and cost of preclinical and possibly early phase
clinical development programs;</font></li>
<li><font size="2">the cost and rate of progress toward growing our revenue
generating service businesses;</font></li>
<li><font size="2">the cost of securing and defending intellectual
property;</font></li>
<li><font size="2">the timing and cost of obtaining necessary regulatory
approvals; and</font></li>
<li><font size="2">the costs of any future litigation of which we may be
subject.</font></li></ul><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through April 30, 2008 we had limited
operations. We intend to engage in product development, a process that requires
significant capital expenditures, and we have limited sources of revenue to
off-set such expenditures. Accordingly, we expect to generate operating losses
in the future until such time as we are able to generate more significant
revenues.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To become profitable, we will need to
generate revenues to off-set our operating costs, including our general and
administrative expenses. We may not achieve or, if achieved, sustain our revenue
or profit objectives, and our losses may increase in the future, and,
ultimately, we may have to cease operations.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to grow revenues, we must
invest capital to successfully develop our products. Our products may never
achieve market acceptance and we may never generate significant revenues or
achieve profitability. If we must devote a substantial amount of time to raising
capital, it will delay our ability to achieve our business goals within the time
frames that we now expect, which could increase the amount of capital we need.
In addition, the amount of time expended by our management on fund raising
distracts them from concentrating on our business affairs.<p>
<b>Our lack of operating history in the biotechnology industry makes it
difficult to evaluate or predict our future business prospects.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have little operating history in
the biotechnology industry, and our operating results are not possible to
predict at this time. We are developing our business and our operations are
subject to all of the risks inherent in establishing a new business enterprise,
including:</p>
<div style="position:relative; left: 15"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
early stage products;</p>
</td>
</tr>
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
limited capital;</p>
</td>
</tr>
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
expected substantial and continual losses for the foreseeable future;</p>
</td>
</tr>
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
limited experience in regulatory issues;</p>
</td>
</tr>
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
an expected reliance on third parties for the commercialization of some proposed
products;</p>
</td>
</tr>
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
a competitive environment characterized by numerous, well-established and
well-capitalized competitors;</p>
</td>
</tr>
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
uncertain market acceptance of our products; and</p>
</td>
</tr>
<tr valign="top">
<td width="19.999995" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="638.666507" colspan="1" rowspan="1" >
<p>
reliance on key personnel.</p>
</td>
</tr>
</table></div>
<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The likelihood of our success must be
considered in light of the problems, expenses, difficulties, complications, and
delays frequently encountered in connection with the formation of a new
business, the development of new technology, and the competitive and regulatory
environment in which we will operate. </p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">5</font></p>
</td>
</tr>
</table></div>
<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because we are subject to these risks,
you may have a difficult time evaluating our business and your investment in our
company.<p>
<b>Our initial proposed drug products are in the early development stages and
will likely not be commercially introduced for many years, if at all.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our proposed initial drug products
still are in the early development stage and will require further development,
preclinical and early phase clinical testing and investment prior to our effort
to sell, license or partner with pharmaceutical and/or biotechnology companies,
as appropriate.  Such partnership, divestiture or license agreement may have
contingencies for their possible commercialization in the United States and
abroad. We cannot be sure that these products in development will:</p>
<div style="position:relative; left: 15"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="25.333327" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="631.999842" colspan="1" rowspan="1" >
<p>
be successfully developed;</p>
</td>
</tr>
<tr valign="top">
<td width="25.333327" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="631.999842" colspan="1" rowspan="1" >
<p>
prove to be safe and efficacious in preclinical or clinical trials;</p>
</td>
</tr>
<tr valign="top">
<td width="25.333327" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="631.999842" colspan="1" rowspan="1" >
<p>
meet applicable regulatory standards or obtain required regulatory
approvals;</p>
</td>
</tr>
<tr valign="top">
<td width="25.333327" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="631.999842" colspan="1" rowspan="1" >
<p>
demonstrate substantial protective or therapeutic benefits in the prevention or
treatment of any disease;</p>
</td>
</tr>
<tr valign="top">
<td width="25.333327" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="631.999842" colspan="1" rowspan="1" >
<p>
be capable of being formulated and/or produced in clinical or commercial
quantities at reasonable costs;</p>
</td>
</tr>
<tr valign="top">
<td width="25.333327" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="631.999842" colspan="1" rowspan="1" >
<p>
obtain coverage and favorable reimbursement rates from insurers and other
third-party payors; or</p>
</td>
</tr>
<tr valign="top">
<td width="25.333327" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="631.999842" colspan="1" rowspan="1" >
<p>
be successfully marketed or achieve market acceptance by physicians and
patients.</p>
</td>
</tr>
</table></div>
<p>
<p>
<b>We have very limited staffing and will continue to be dependent upon key
employees.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success, currently, is dependent
upon the efforts of four employees, the loss of the services of which would have
a material adverse affect on our business and financial condition.  We will
continue to develop our management team and attract and retain qualified
personnel in all functional areas to expand and grow our business.  This may be
difficult in the biotechnology industry where competition for skilled personnel
is intense.<p>
<b>Because our industry is very competitive and many of our competitors have
substantially greater capital resources and more experience in research and
development than us, we may not succeed in developing our products and
technologies and having them brought to market.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in the pharmaceutical
industry is intense. Potential competitors in the United States and abroad are
numerous and include pharmaceutical and biotechnology companies, most of which
have substantially greater capital resources and more experience in research and
development than us. Academic institutions, hospitals, governmental agencies and
other public and private research organizations are also conducting research and
seeking patent protection and may develop and commercially introduce competing
products or technologies on their own or through joint ventures. We cannot
assure you that our competitors will not succeed in developing similar
technologies and products more rapidly than we do, commercially introducing such
technologies and products to the marketplace prior to introduction of our
products, or that these competing technologies and products will not be more
effective or successful than any of those that we currently are developing or
will develop.<p>
<b>If we are unable to protect our intellectual property, we may not be able to
compete as effectively.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The biotechnology industry places
considerable importance on obtaining patent and trade secret protection for new
technologies, products and processes. Our success will depend, in part, upon our
ability to obtain, enjoy and enforce protection for any products we develop or
acquire under United States and foreign patent laws and other intellectual
property laws, preserve the confidentiality of our trade secrets and operate
without infringing the proprietary rights of third parties.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where appropriate, we will seek patent
protection for certain aspects of our technology. However, our owned and
licensed patents and patent applications may not ensure the protection of our
intellectual property for a number of other reasons:<p>
&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our preclinical platform is proprietary and
requires significant know-how to both initiate and operate but is not patented.
It is, therefore, possible for competitors to develop other implantation
procedures or to discover the same procedures utilized by the Company that could
compete with the Company in its market.</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">7</font></p>
</td>
</tr>
</table></div>
<p>
<p>
&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competitors may interfere with our patents
and patent process in a variety of ways. Competitors may claim that they
invented the claimed invention before us or may claim that we are infringing on
their patents and therefore we cannot use our technology as claimed under our
patent. Competitors may also have our patents reexamined by showing the patent
examiner that the invention was not original or novel or was obvious.<p>
&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are in the process of developing
proposed products and technologies. The mere receipt of a patent does not
necessarily provide much practical protection. If we receive a patent with a
narrow scope, then it will be easier for competitors to design products that do
not infringe on our patent.  Even if the development of our proposed products is
successful and approval for sale is obtained, there can be no assurance that
applicable patent coverage, if any, will not have expired or will not expire
shortly after this approval.  Any expiration of the applicable patent could have
a material adverse effect on the sales and profitability of our proposed
product.<p>
&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enforcing patents is expensive and may
require significant time by our management. In litigation, a competitor could
claim that our issued patents are not valid for a number of reasons. If the
court agrees, we would lose protection on products covered by those patents.<p>
&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also may support and collaborate in
research conducted by government organizations or universities. We cannot
guarantee that we will be able to acquire any exclusive rights to technology or
products derived from these collaborations. If we do not obtain required
licenses or rights, we could encounter delays in product development while we
attempt to design around other patents or we may be prohibited from developing,
manufacturing or selling products requiring these licenses. There is also a risk
that disputes may arise as to the rights to technology or products developed in
collaboration with other parties.<p>
&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It also is unclear whether efforts to
secure our trade secrets will provide useful protection. While we will use
reasonable efforts to protect our trade secrets, our employees or consultants
may unintentionally or willfully disclose our proprietary information to
competitors resulting in a loss of protection. Enforcing a claim that someone
else illegally obtained and is using our trade secrets, like patent litigation,
is expensive and time consuming, and the outcome is unpredictable. In addition,
courts outside the United States are sometimes less willing to protect trade
secrets.  Finally, our competitors may independently develop equivalent
knowledge, methods and know-how.<p>
<b>Claims by others that our products infringe their patents or other
intellectual property rights could adversely affect our financial
condition.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The biotechnology industry has been
characterized by frequent litigation regarding patent and other intellectual
property rights. Patent applications are maintained in secrecy in the United
States and also are maintained in secrecy outside the United States until the
application is published. Accordingly, we can conduct only limited searches to
determine whether our technology infringes the patents or patent applications of
others. Any claims of patent infringement asserted by third parties would be
time-consuming and could likely:</p>
<div style="position:relative; left: 25"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="26.666660" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
result in costly litigation;</p>
</td>
</tr>
<tr valign="top">
<td width="26.666660" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
divert the time and attention of our technical personnel and management;</p>
</td>
</tr>
<tr valign="top">
<td width="26.666660" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
cause product development delays;</p>
</td>
</tr>
<tr valign="top">
<td width="26.666660" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
require us to develop non-infringing technology; or</p>
</td>
</tr>
<tr valign="top">
<td width="26.666660" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
require us to enter into royalty or licensing agreements.</p>
</td>
</tr>
</table></div>
<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although patent and intellectual
property disputes in the biotechnology industry have often been settled through
licensing or similar arrangements, costs associated with these arrangements may
be substantial and often require the payment of ongoing royalties, which could
hurt our gross margins. In addition, we cannot be sure that the necessary
licenses would be available to us on satisfactory terms, or that we could
redesign our products or processes to avoid infringement, if necessary.
Accordingly, an adverse determination in a judicial or administrative
proceeding, or the failure to obtain necessary licenses, could prevent us from
developing, manufacturing and selling some of our products, which could harm our
business, financial condition and operating results.<p>
<b>If any of our products that we license or partner with pharmaceutical and/or
biotechnology companies fail to obtain regulatory approval or if approval is
delayed or withdrawn, we may be unable to generate revenue from the sale or
license of our products.</b></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">8</font></p>
</td>
</tr>
</table></div>
<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our products are subject to federal,
state, local, or foreign legislation or regulation, including the interpretation
of and compliance with existing, proposed, and future regulatory requirements
imposed by the FDA in the United States and by comparable authorities in other
countries. In the United States, approval of the FDA has to be obtained for each
drug to be commercialized. The FDA approval process is typically lengthy and
expensive, and approval is never certain. Products to be commercialized abroad
are subject to similar foreign government regulation.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, only a very small
percentage of newly discovered pharmaceutical products that enter preclinical
development are approved for sale. Because of the risks and uncertainties in
biopharmaceutical development, our proposed drug products could take a
significantly longer time to gain regulatory approval than we expect or may
never gain approval. If regulatory approval is delayed or never obtained, our
management's credibility, the value of our company and our operating results and
liquidity might be adversely affected. Furthermore, even if a product gains
regulatory approval, the product and the manufacturer of the product may be
subject to continuing regulatory review. Even after obtaining regulatory
approval, such approval may entail limitations on the indicated uses for which
the product may be marketed. Moreover, a marketed product, its manufacturer, its
manufacturing facilities, and its suppliers are subject to continual review and
periodic inspections. Discovery of previously unknown problems, or the
exacerbation of problems previously deemed acceptable, with the product,
manufacturer, or facility may result in restrictions on such product or
manufacturer, potentially including withdrawal of the product from the
market.<p>
<b>Even if our proposed products receive FDA approval, they may not achieve
expected levels of market acceptance, which could have a material adverse effect
on our business, financial position and operating results and could cause the
market value of our common stock to decline.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Even if our proposed products obtain
required regulatory approvals, the success of those products is dependent upon
market acceptance by physicians and patients. Levels of market acceptance for
our new products could be impacted by several factors, including:</p>
<div style="position:relative; left: 15"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="625.333177" colspan="1" rowspan="1" >
<p>
the availability of alternative products from competitors;</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="625.333177" colspan="1" rowspan="1" >
<p>
the price of our products relative to that of our competitors;</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="625.333177" colspan="1" rowspan="1" >
<p>
the timing of our market entry; and</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
&#8226;</p>
</td>
<td width="625.333177" colspan="1" rowspan="1" >
<p>
the ability to market our products effectively.</p>
</td>
</tr>
</table></div>
<p>
<p>
Some of these factors are not within our control. Our proposed products may not
achieve expected levels of market acceptance. Additionally, continuing studies
of the proper utilization, safety and efficacy of pharmaceutical products are
being conducted by the industry, government agencies and others. Such studies,
which increasingly employ sophisticated methods and techniques, can call into
question the utilization, safety and efficacy of previously marketed products.
In some cases, these studies have resulted, and may in the future result, in the
discontinuance of product marketing. These situations, should they occur, could
have a material adverse effect on our business, financial position and results
of operations, and the market value of our common stock could decline.<p>
<b>Because the biotechnology industry is heavily regulated, we face significant
costs and uncertainties associated with our efforts to comply with applicable
regulations. Should we fail to comply, we could experience material adverse
effects on our business, financial position and results of operations, and the
market value of our common stock could decline.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The biotechnology industry is subject
to regulation by various federal and state governmental authorities. For
example, we must comply with FDA requirements with respect to the development of
our proposed products and our early clinical trials, and if any of our proposed
products are approved, the manufacture, labeling, sale, distribution, marketing,
advertising and promotion of our products. Failure to comply with FDA and other
governmental regulations can result in fines, disgorgement, unanticipated
compliance expenditures, recall or seizure of products, total or partial
suspension of production and/or distribution, suspension of the FDA's review of
New Drug Applications ("NDA's"), enforcement actions, injunctions and criminal
prosecution. Under certain circumstances, the FDA also has the authority to
revoke previously granted drug approvals. Despite our efforts at compliance,
there is no guarantee that we may not be deemed to be deficient in some manner
in the future. If we were deemed to be deficient in any significant way, our
business, financial position and results of operations could be materially
affected and the market value of our common stock could
decline.</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">9</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>Your investment in our common stock may be diluted if we issue additional
shares in the future.</b><p>
We may issue additional shares of common stock, which would reduce your
percentage ownership and may dilute your share value. Our Certificate of
Incorporation authorizes the issuance of 50,000,000 shares of common stock. As
of July 14, 2008, we had 33,272,718 shares of common stock issued and
outstanding.  The future issuance of all or part of the remaining authorized
common stock would result in substantial dilution in the percentage of the
common stock held by existing shareholders.  We may value any common stock
issued in the future on an arbitrary basis. The issuance of common stock for
future services or acquisitions or other corporate actions may have the effect
of diluting the value of the shares held by existing shareholders, and might
have an adverse effect on any trading market for our common stock.<p>
<b>There is a limited trading market for our common stock, which may make it
difficult for you to sell your shares.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is quoted on the OTC
Bulletin Board. Like many stocks quoted on the OTC Bulletin Board, trading in
our common stock is thin and characterized by wide fluctuations in trading
prices, due to many factors that may have little to do with our operations or
business prospects. This volatility could depress the market price of our common
stock for reasons unrelated to operating performance. Moreover, trading on the
OTC Bulletin Board is often more sporadic and volatile than the trading on
security exchanges like NASDAQ, American Stock Exchange or New York Stock
Exchange. Accordingly, you may have difficulty reselling your shares of our
common stock in short time periods.<p>
<b>Our common stock may be deemed a "penny stock," which would make it more
difficult for you to sell your shares.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock may be subject to the
"penny stock" rules adopted under Section 15(g) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). The penny stock rules apply to
companies whose common stock is not listed on the NASDAQ Stock Market or another
national securities exchange and trades at less than $5.00 per share or that
have tangible net worth of less than $5,000,000 ($2,000,000 if the company has
been operating for three or more years). These rules require, among other
things, that brokers who trade penny stock to persons other than "established
customers" complete certain documentation, make suitability inquiries of
investors and provide investors with certain information concerning trading in
the security, including a risk disclosure document and quote information under
certain circumstances. Many brokers have decided not to trade penny stocks
because of the requirements of the penny stock rules and, as a result, the
number of broker-dealers willing to act as market makers in such securities is
limited. If we remain subject to the penny stock rules for any significant
period, it could have an adverse effect on the market, if any, for our common
stock. If our common stock is subject to the penny stock rules, you will find it
more difficult to dispose of the shares of our common stock that you have
purchased.<p>
<b>Item 2.&nbsp;&nbsp; Description of Property.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company leases offices at 1400
North 14<sup>th</sup> Street, Arlington, VA 22209 and at 1820 East Ray Road,
Chandler, AZ 85225.  The Company's rental payments are $6,400 per month.<p>
<b>Item 3.&nbsp;&nbsp;Legal Proceedings.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is not the subject of any
pending legal proceeding and to the knowledge of management, no proceedings are
presently contemplated against the Company by any federal, state or local
governmental agency. Further, to the knowledge of management, no director or
executive officer is party to any action in which such director or executive
officer has an interest adverse to the Company.<p>
<b>Item 4.&nbsp;&nbsp;Submission of Matters to a Vote of Security
Holders.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no submissions of matters
to a vote of security holders. The Company did not hold its annual meeting of
stockholders for FY 2008 for financial reasons.</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">10</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
&nbsp;PART II	<p>
<p>
<b>Item 5.&nbsp;&nbsp;Markets for Common Equity &amp; Related Stockholder
Matters.</b><p>
<i>Principal Market or Markets</i><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information sets forth
the high and low bid price for the Company's common stock for each quarter
within the last two fiscal years. The Company's common stock (symbol CSBR) is
traded over-the-counter (OTC) and quoted on the electronic Bulletin Board
maintained by the National Association of Securities Dealers. The quotations
represent prices between dealers and do not reflect the retailer markups,
markdowns or commissions, and may not represent actual transactions. The
Company's securities are presently classified as "Penny Stocks" as defined by
existing securities laws. This classification places significant restrictions
upon broker-dealers desiring to make a market in such securities.</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="2" rowspan="1" >
<p align="center">
<font size="2">Common Stock</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">High</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Low</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
<p>
<font size="2">Fiscal 2008</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">First Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.67</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.26</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Second Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2.10</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.45</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Third Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">1.90</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.80</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Fourth Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">1.30</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.85</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">High</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Low</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
<p>
<font size="2">Fiscal 2007</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">First Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.04</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.02</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Second Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.02</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.01</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Third Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.80</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.01</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Fourth Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.60</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.27</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><i>Approximate Number of Holders of Common Stock</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of July 14, 2008,
there were 2,200 record holders of the Company's common stock.</font><p>
<font size="2"><i>Dividends</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of common stock
are entitled to receive such dividends as may be declared by the Company's Board
of Directors.  No dividends have been paid with respect to the Company's common
stock and no dividends are anticipated to be paid in the foreseeable future.
Any future decisions as to the payment of dividends will be at the discretion of
the Company's Board of Directors, subject to applicable law. </font><p>
<font size="2"><i>Securities Authorized for Issuance Under Equity Compensation
Plans</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information
regarding securities authorized for issuance under our equity compensation plans
is disclosed in Item 11-"Security Ownership of Certain Beneficial Owners and
Management and Related Stockholder Matters."</font><p>
<font size="2"><i>Recent Sales by the Company of Unregistered
Securities</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On April 30, 2008, the
Company issued 1,428,572 restricted shares of the Company's common stock at
$1.75 per share, for a total of $2,500,000, pursuant to the terms of a private
investment financing. The shares were issued to two non-US subscribers outside
the United States.  All the restricted shares issued in this offering were
issued for investment purposes in a "private transaction" exempt from
registration pursuant to Section 5 of the Securities Act. The offering was not a
public offering and was not accompanied by any general advertisement or any
general solicitation  The Company received from each of the two subscribers a
completed and signed subscription agreement containing certain representations
and warranties, including, among others, that (a) the subscriber was not a U.S.
person, (b) the subscriber subscribed for the shares for their own investment
account and not on behalf of a U.S. person, and (c) there was no prearrangement
for the sale of the shares with any buyer.  No offer was made or accepted in the
United States and the share certificates representing the shares were issued
bearing a legend with the applicable trading
restrictions.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">11</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 6.&nbsp;&nbsp;Management's Discussion and Analysis of
Financial Condition and Results of Operations.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
discussion and analysis is provided to further the reader's understanding of the
consolidated financial statements, financial condition and results of operations
of the Company.  This discussion should be read in conjunction with the
consolidated financial statements and the accompanying notes included in this
Annual Report on Form 10-KSB.  This discussion contains forward-looking
statements based upon current expectations that involve risk and uncertainties.
Our actual results and the timing of certain events could differ materially from
those anticipated in these forward-looking statements as a result of certain
factors, including those set forth below and under "Risk Factors" set forth in
Item 1A and elsewhere in this Annual Report on Form 10-KSB.</font><p>
<font size="2"><i>Overview</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2007 the
Company changed its business direction to focus on biotechnology and changed its
name to Champions Biotechnology, Inc.&nbsp; The Company is engaged in the
development of advanced preclinical platforms and predictive tumor specific data
to enhance and accelerate the value of oncology drugs.&nbsp; The Company's
Preclinical Platform is a novel approach based upon the implantation of primary
human tumors in immune deficient mice followed by propagation of the resulting
xenografts (Biomerk Tumorgrafts&#8482;) in a manner that preserves the
biological characteristics of the original human tumor.&nbsp; The Company
believes that Biomerk Tumorgrafts closely reflect human cancer biology and their
response to drugs is more predictive of clinical outcomes in cancer
patients.&nbsp; The Company is building its Biomerk Tumorgraft platform through
the procurement, development and characterization of numerous Tumorgrafts within
each of several cancer types.&nbsp; Tumorgrafts are procured through agreements
with institutions in the United States and Europe and developed and tested
through agreement with a U.S. based preclinical facility.&nbsp; </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We intend to leverage
our preclinical platform to evaluate oncology drug candidates and to develop a
portfolio of novel drug candidates through pre-clinical trials.&nbsp; As drugs
progress through this early stage of development, the Company plans to sell,
partner or license them to pharmaceutical and/or biotechnology companies, as
appropriate.&nbsp; We believe this strategy will enable the Company to leverage
the competencies of these partners or licensees to maximize the Company's return
on investment in a relatively short time frame.&nbsp; The Company believes that
this model is unlike that of many new biotechnology companies that look to bring
the process of drug development through all phases of discovery, development,
regulatory approvals, and marketing, which requires a very large financial
commitment and a long development period, typically more than a decade, to
commercialize.&nbsp; Thus far we have acquired two oncology drug candidates and
we have begun preclinical development of the most promising candidate, SG410,
through the use of contract facilities.&nbsp; We have secured preclinical supply
of SG410 and it is our intention to develop a soluble form of the compound and
evaluate its efficacy in Biomerk Tumorgrafts from several cancer types.&nbsp; If
results are promising it is our intention to continue preclinical development
and then sell, partner or license SG410 for its remaining clinical
development.&nbsp; </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company also offers
its Biomerk Tumorgraft predictive preclinical platform and tumor specific data
to physicians to provide information that may enhance personalized patient care
options and to companies for evaluation of oncology drugs in a platform that
integrates predictive testing with biomarker discovery.&nbsp; We provide
Personalized Oncology services to physicians in the field of oncology by
establishing and administering expert medical information panels for their
patients to analyze medical records and test results, to assist in understanding
conventional and research options and to identify and arrange for testing,
analysis and study of cancer tissues, as appropriate.&nbsp; In FY08 the Company
generated all its revenue from its growing Personalized Oncology services while
we continued development of our Biomerk Tumorgraft platform.&nbsp; During the
year ended April 30, 2008, the Company's revenue was derived solely from
Personalized Oncology services.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In late FY08, as we
expanded our number of Biomerk Tumorgraft models, we began to offer leading
pharmaceutical and biotechnology companies the benefits of our Biomerk
Tumorgrafts for their preclinical evaluation programs.&nbsp; We provide
Preclinical eValuation services that we believe are more predictive of clinical
outcomes and that might provide for a faster and less expensive path for drug
approval. &nbsp;These services utilize Biomerk Tumorgrafts to evaluate tumor
sensitivity/resistance to various single and combination standard and novel
chemotherapy agents. &nbsp;The Preclinical eValuation services we offer also
includes biomarker discovery and the identification of novel drug
combinations.&nbsp; &nbsp;In the fourth quarter of FY08 the Company established
an agreement with ImClone Systems Incorporated for the preclinical evaluation of
certain therapeutic antibodies in ImClone's clinical development pipeline. As
part of the agreement, ImClone will utilize our Biomerk Tumorgrafts&#8482; in
the initial preclinical evaluation.&nbsp; We are currently providing services or
in discussions to provide services to numerous other companies.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As a result of the
diligence we used in the 10-KSB process the Company reclassified certain
revenues which it had previously recorded in the third fiscal quarter and moved
them to the fourth fiscal quarter.  This change had no impact on the annual
results for the year ended April 30, 2008 as reflected in this Annual Report.
</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the late fourth
quarter of FY08 Champions Biotechnology, Inc. formed its first management
team.&nbsp; As a result, the Company is currently unable to provide business
trends and projections.</font><p>
<font size="2"><i>Results of Operations for Fiscal Years 2008 and
2007</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Operating
Revenues</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the fiscal year ended
April 30, 2008, the Company's operating revenue was $1,399,940. For fiscal year
ended April 30, 2007, the operating revenue was $0.00.  The Company commenced
its operations in the biotechnology business in January 2007, and from 2005
until 2007 had no operating revenues.  As a result, the Company only had four
months of meaningful operations in our fiscal year ended April 30, 2007. The
Company derived all of its revenue from its Personalized Oncology services which
assist physicians by providing information that may enhance personalized
treatment options for their cancer patients through access to expert medical
information panels and tumor specific data.  Revenues are also derived from the
Company's Preclinical eValuation services which offers the benefits of its
Preclinical Platform to pharmaceutical and biotechnology companies using Biomerk
Tumorgraft studies which have been shown to be predictive of how drugs perform
in clinical settings.  Expectations for growth in the future are from continued
Personalized Oncology services and expected increased use of our Preclinical
eValuation services. The Company's revenue is described as Personalized Oncology
services in the Consolidated Statements of Income.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">12</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Operating
Expenses</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For FY 2008, the operating
expenses for the Company were general and administrative expenses of $703,176
compared to $170,058 in FY 2007. The increase of $533,118 was due to the
additional expenses associated with changing the business direction and
beginning operations as a biotechnology company. <b>  </b>During FY 2007 the
Company continued to incur expenses in the process maintaining its efforts of
establishing itself as a biotechnology company prior to earning any revenue.  As
revenue was earned in FY 2008 and as revenue increases with increased
development and activity, expenses increased and are expected to increase in the
future, commensurate with the Company's increased levels of activity and
growth.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Profits /
Losses</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the reasons stated above,
the Company's net income applicable to common stockholders for fiscal 2008 was
$35,698, compared to a net loss of $170,058 for fiscal 2007.</font><p>
<font size="2"><i>Liquidity and Capital Resources for Fiscal Years 2008 and
2007</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's cash
position on April 30, 2008, was $3,709,136 compared to $3,758 on April 30, 2007.
In FY 2008, the net cash provided by operating activities was $792,404. In FY
2007, the net cash used in operating activities was $78,475. The Company's
working capital as of April 30, 2008 was $2,748,141 contrasted to a negative
$441,065 on April 30, 2007. In FY 2008 the Company received proceeds of
$2,504,250 from private investment financing. In FY 2007 the Company converted
$350,460 of dividends payable on preferred stock by issuing shares of common
stock in exchange for cancellation of outstanding preferred shares and waiver of
all accrued and unpaid dividends on such shares. In FY 2007, the Company
received advances totaling $43,693 from its executive officer, James Martell, to
meet the Company's working capital needs. The Company also issued 2,500,000
restricted shares of common stock to Dr. Manuel Hidalgo for an aggregate
purchase price of $10,000 and 7,000,000 restricted shares of common stock to Dr.
David Sidransky for an aggregate purchase price of $28,000 with all proceeds
used for working capital. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In FY 2007 the Company
acquired the patent rights to cancer drug candidates Benzoylphenylurea (BPU)
Sulfur Analogs. The purchase price for the patent rights consisted of an
aggregate of up to 550,000 restricted shares of the Company's common stock, of
which 300,000 restricted shares were issued upon execution of the acquisition
agreement and 250,000 restricted shares are issuable upon the issuance of one of
the patents based on U.S. Patent Application no. 11/673,519.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has
sufficient resources to provide for the next twelve months of operations based
on its current level of expenditure, its anticipated level of future expenditure
and revenue growth and its ability to curtail expenditures if needed.</font><p>
<font size="2"><i>Critical Accounting Policies</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Revenue
Recognition.</u>  The Company derives revenue from its Personalized Oncology
services which assist physicians by providing information that may enhance
personalized treatment options for their cancer patients through access to
expert medical information panels and tumor specific data.  Revenues are also
derived from the Company's Preclinical eValuation services which offer the
benefits of its Preclinical Platform to pharmaceutical and biotechnology
companies using Biomerk Tumorgraft studies which have been shown to be
predictive of how drugs perform in clinical settings.  The Company's revenue is
described as Personalized Oncology services in the Consolidated Statements of
Operations.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue is recognized
in accordance with the SEC's Staff Accounting Bulletin No. 104, "Revenue
Recognition" ("SAB 104").  SAB 104 requires that four basic criteria be met
before revenue can be recognized:  1) persuasive evidence of an arrangement
exists; 2) delivery has occurred or services rendered; 3) the fee is fixed and
determinable; and 4) collectability is reasonably assured.  As to 1), our
business practices require that our services be performed pursuant to contracts
with our customers.  As to 2), we recognize revenue when services are rendered
to our customers.  As to 3), the fee is determined and fixed at the time the
contract is executed.  As to 4), our business practices require that fees for
services be remit upon execution of the contract, either in full or in
contractual amounts based on management's judgments regarding the fixed nature
of our arrangements taking into account termination provisions and the
collectability of fees under our arrangements. Revenue is recognized when
services are rendered.</font><p>
<font size="2"><i>Miscellaneous for Fiscal Years 2008 and 2007</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' equity on
April 30, 2008 was $3,637,515 compared to a negative $261,065 on April 30, 2007.
In FY 2008 and FY 2007, the Board of Directors voted to defer the annual meeting
of shareholders in order to preserve the Company's cash
reserves.</font></p align="center">
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<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">13</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 7.&nbsp;&nbsp;Financial Statements and Supplementary
Data.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report  of
Independent  Accountants  appears  at  page  F-3  and  the Consolidated
Financial  Statements  and  Notes  to the  Consolidated  Financial Statements
appear at pages F4 through F21 hereof.</font><p>
<font size="2"><b>Item 8.&nbsp;&nbsp;Changes In and Disagreements with
Accountants on Accounting &amp; Financial Disclosure.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font><p>
<font size="2"><b>Item 8A(T).&nbsp;&nbsp;Controls and Procedures.</b></font><p>
<font size="2"><i>Evaluation of Disclosure Controls and Procedures</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains a
set of disclosure controls and procedures designed to ensure that information
required to be disclosed by the Company in the reports filed under the
Securities Exchange Act, is recorded, processed, summarized and reported within
the time periods specified by the SEC's rules and forms. Disclosure controls are
also designed with the objective of ensuring that this information is
accumulated and communicated to the Company's management, including the
Company's principal executive officer and chief financial officer, as
appropriate, to allow timely decisions regarding required disclosure.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon their
evaluation as of the end of the period covered by this report, the Company's
principal executive officer and also its chief financial officer concluded that,
the Company's disclosure controls and procedures are not effective to ensure
that information required to be included in the Company's periodic SEC filings
is recorded, processed, summarized, and reported within the time periods
specified in the SEC rules and forms.</font><p>
<font size="2"><i>Management's Annual Report on Internal Control over Financial
Reporting</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our management,
including our principal executive officer and chief financial officer, is
responsible for establishing and maintaining adequate internal control over
financial reporting, as such term is defined in Rules&nbsp;13a-15(f) and
15d-15(f) under the Exchange Act.  Our internal control over financial reporting
is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of our financial statements for
external reporting purposes in accordance with U.S.&nbsp;generally accepted
accounting principles (GAAP).  Internal control over financial reporting
includes those policies and procedures that: (i)&nbsp;pertain to the maintenance
of records that in reasonable detail accurately and fairly reflect the
transactions and dispositions of the assets of the Company; (ii)&nbsp;provide
reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with US GAAP, and that the
Company's receipts and expenditures are being made only in accordance with
authorizations of management and directors of the Company; and
(iii)&nbsp;provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use, or disposition of the Company's assets that
could have a material effect on the financial statements. Because of its
inherent limitations, internal control over financial reporting may not prevent
or detect misstatements. Also, projections of any evaluation of effectiveness to
future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with policies
or procedures may deteriorate.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management (with the
participation of our principal executive officer and chief financial officer and
with the advice of our independent auditor) conducted an evaluation of the
effectiveness of our internal control over financial reporting based on the
framework in <i>Internal Control&nbsp;- Integrated Framework </i>issued by the
Committee of Sponsoring Organizations of the Treadway Commission. The Company's
Board of Directors was advised by Bagell, Josephs, Levine &amp; Company, L.L.C.,
the Company's independent registered public accounting firm that during their
performance of audit procedures for FY 2008, the firm identified a material
weakness as defined in Public Company Accounting Oversight Board Standard No. 2
in the Company's internal control over financial reporting.  This deficiency
consisted primarily of inadequate staffing and supervision that could lead to
the untimely identification and resolution of accounting and disclosure matters
and failure to perform timely and effective reviews. Management is required to
apply its judgment in evaluating the cost-benefit relationship of possible
controls and procedures. At this time management has decided that considering
the employees involved and the control procedures in place, there are risks
associated with such staffing deficiencies, but the potential benefits of adding
employees to rectify the deficiency do not justify the expenses associated with
such increases.  Management will periodically review this situation.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This annual report does
not include an attestation report of the Company's registered public accounting
firm regarding internal control over financial reporting.  Management's report
was not subject to attestation by the Company's registered public accounting
firm pursuant to temporary rules of the Securities and Exchange Commission that
permit the Company to provide only management's report in this annual
report.</font></p align="center">
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<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">14</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 8B.&nbsp;&nbsp;Other Information.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font><p>
<font size="2">PART III</font><p>
<font size="2"><b>Item 9.&nbsp;&nbsp;Directors, Executive Officers, Promoters,
Control Persons and Corporate Governance; Compliance with Section 16(a) of the
Exchange Act.</b></font><p>
<font size="2"><i>Directors and Executive Officers</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Directors and
Executive Officers of the Company as of April 30, 2008 are as
follows:</font></p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2"><b><i>Name</i></b></font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2"><b><i>Position(s) Presently Held</i></b></font></p>
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2">David Sidransky , M.D.</font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2">Chairman </font></p>
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D Burkett, Ph.D.</font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2">President </font></p>
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2">Manuel Hidalgo, M.D. Ph.D.</font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Scientist</font></p>
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Administrative Officer, Director</font></p>
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood C. Settles</font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Financial Officer, Treasurer</font></p>
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2">Abba David Poliakoff</font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2">Ana I. Stancic</font></p>
</td>
<td width="393.333235" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
</tr>
<tr valign="top">
<td width="573.333190" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;David Sidransky, M.D</b>., age 48,
has served as Chairman of the Company since October 2007 and Director since
August 2007. Dr.&nbsp;Sidransky is the Director of the Head and Neck Cancer
Research Division at Johns Hopkins University School of Medicine and is a
Professor of Oncology, Otolaryngology-Head and Neck Surgery, Cellular &amp;
Molecular Medicine, Urology, Genetics, and Pathology at Johns Hopkins University
and Hospital. Dr. Sidransky is one of the most highly cited researchers in
clinical and medical journals in the world, in the field of oncology during the
past decade, with over 340 peer-reviewed publications. He has contributed more
than 60 cancer reviews and chapters. Dr. Sidransky is a founder of a number of
biotechnology companies and holds numerous biotechnology patents. He has served
as Vice Chairman of the Board of Directors of ImClone and presently is a
director of ImClone, Chairman of Alfacell Corporation and serves on the Board of
Directors of Xenomics. Dr. Sidransky is serving and has served on scientific
advisory boards of MedImmune, Roche, Amgen and Veridex, LLC. (a Johnson &amp;
Johnson diagnostic company), among others Dr. Sidransky served as Director
(2005-2008) of American Association for Cancer Research (AACR).  He was the
chairperson of the first (September 2006) and the second (September 2007) AACR
International Conference on Molecular Diagnostics in Cancer Therapeutic
Development: Maximizing Opportunities for Individualized Treatment.  Dr.
Sidransky is the recipient of many awards and honors, including the 1997
Sarstedt International Prize from the German Society of Clinical Chemistry, the
1998 Alton Ochsner Award Relating Smoking and Health by the American College of
Chest Physicians and the 2004 Hinda and Richard Rosenthal Award from the
American Association of Cancer Research. Dr. Sidransky is certified in Internal
Medicine and Medical Oncology by the American Board of Medicine. Dr. Sidransky
received his B.A. from Brandeis University and his M.D. from the Baylor College
of Medicine.<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Douglas D. Burkett, Ph.D</b>., age
44, has served as President of the Company since March 2008. Dr. Burkett has
served From July 2007 to March 2008 as executive consultant to assist the
Company in establishing and executing its strategic and business plan prior to
becoming President. Dr. Burkett served as Chairman, Chief Executive Officer and
President of Zila, Inc. from 2002 to 2007 and led a strategic transformation of
Zila into a cancer detection company. He led the FDA approval, launch and growth
of ViziLite Plus, an oral cancer screening product, and the establishment of the
first insurance reimbursement for oral cancer screening products in the United
States Dr. Burkett held several senior positions at Zila from 1995 to 2002; he
was responsible for Zila's technical operations, its manufacturing subsidiary,
its Pharmaceuticals business and business development. Early in his career he
led the building of a R&amp;D laboratory, pharmaceutical manufacturing facility,
compliance unit and regulatory team that achieved a rare "no deficiency" FDA pre
approval inspection. Dr. Burkett is the lead inventor in numerous issued and
pending patents involving novel cancer detection methods and drugs. He is quoted
in leading publications including the Wall Street Journal regarding his
pioneering efforts in early oral cancer detection. Prior to joining Zila, Dr.
Burkett was employed at the Arizona State University Cancer Research Institute
where he collaborated with the National Cancer Institute in synthesizing and
performing studies for potential cancer treatment drugs. Prior to his tenure at
ASU he researched, developed and manufactured pharmaceutical drugs for a private
pharmaceutical company. Dr. Burkett received a B.S. in Chemistry from Missouri
Western State College in 1987, and a Ph.D. in Organic Chemistry from Arizona
State University in 1994.</p align="center">
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<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">15</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manuel Hidalgo, M.D., Ph.D</b>.,
age 40, has served as Chief Scientific Officer of the Company since March 2008.
Dr. Hidalgo was a Director and Scientific Advisor from June 2007 to March 2008.
Dr. Hidalgo, for the past five years has been an Associate Professor of Oncology
at the Sidney Kimmel Comprehensive Cancer Center, Johns Hopkins University
School of Medicine. He is also currently the Director of the Centro Integral
Oncologia "Clara Campal" in Madrid, Spain. Dr. Hidalgo is serving on the
Scientific Advisory Boards of private and public companies, including Systems
Medicine, Tau Therapeutics, Targeted Molecular Diagnostics and Monogram
Biosciences. Dr. Hidalgo is considered a leading researcher in the field of
targeted therapies for the treatment of cancer in patients with solid tumors.
Dr. Hidalgo has published over 140 papers in prestigious cancer journals as well
as numerous chapters in important text books. He has received numerous awards
including an AACR Young Investigator Award, an NCI-EORTC fellowship and an ASCO
Career Development Award. He has served on the editorial board of the Journal of
Clinical Oncology and Clinical Cancer Research and is a Senior Editor for
Molecular Cancer Therapeutics. Dr. Hidalgo has chaired the AACR and ASCO Program
Committee in developmental therapeutics on numerous occasions and is frequently
invited to speak at major national and international meetings He chairs the
Pancreatic Cancer Research Team, a nonprofit organization focused on clinical,
trials in pancreatic cancer, and is also a member of the NCI Developmental
Therapeutics Study. Dr. Hidalgo's laboratory has been involved in the
development of the Champions Biotechnology's BPU sulfur analog compounds. He is
one of the inventor's of the BPU sulfur analog compounds that the Company
acquired in February 2007. <p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James M. Martell,</b> age 61,
Director of the Company, has served as Chief Administrative Officer of the
Company since March 2008. Mr. Martell founded the Company in 1985 as a small
merger and acquisition public company under the name "International Group,
Inc.," changed in 1986 to "Champions Sports, Inc." Since then he has served in
various capacities as Chairman, President and CEO until 2007 when the Company
changed its business direction to focus on biotechnology. Mr. Martell has served
as President and CEO of Champions Biotechnology until March, 2008. Since 2004,
he has worked and collaborated with Dr. Sidransky in the development of
personalized oncology information panels after his close friend was diagnosed
with cancer. Mr. Martell currently administers and oversees the Company's
medical information panels. He was a partner from 1983 to 1987 in Tomar
Associates, a consulting company specializing in European-American joint
ventures, venture capital financing, technology transfer, and corporate finance.
From 1981 to 1983, Mr. Martell was a partner in International Group, a company
involved in promoting national and international business development. He held
various administrative positions from 1973 to 1981 with the U.S. Department of
Energy. Mr. Martell received a Bachelor of Science degree in Chemistry in 1968
and Master of Science degree in Geochemistry in 1973, from George Washington
University. <p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Durwood C. Settles</b>, age 65, has
served as Chief Financial Officer of the Company since March 2008 and has served
as Treasurer since June, 2007. He has served as a Director of the Company from
March, 2001 until March, 2008.  Mr. Settles is a Certified Public Accountant in
individual practice since 1983. From 1973 to 1982, Mr. Settles was Manager of
Special Projects and served on the audit staff with Coopers &amp; Lybrand in
Washington, D.C. During the period 1974 to 1986, Mr. Settles was Treasurer or
Controller of various national, state, and congressional political campaign
organizations. From 1964 to 1973, Mr. Settles was an owner and executive of a
private manufacturing and marketing business after serving two years as a Group
Pension Management Assistant and Computer Files Service Supervisor with the
Mutual of New York Life Insurance Company (MONY) in New York. Mr. Settles
received a Bachelor of Arts degree in Economics in 1964 from Davidson College
and completed accounting studies in 1973 at George Washington University. <p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abba David Poliakoff</b>, age 56,
has served as Director of the Company since March 2008. Mr. Poliakoff is a
member of the law firm of Gordon, Feinblatt, Rothman, Hoffberger &amp;
Hollander, LLC, in Baltimore, Maryland, Chairman of the Firm's Business
Department, and a Member of the Firm's Electronic Discovery Practice Group. Mr.
Poliakoff received his J.D. degree, magna cum laude, in 1977 from the University
of Baltimore Law School, where he was an editor of the University of Baltimore
Law Review and Associate Editor of The Forum Law Journal. After law school, Mr.
Poliakoff joined the staff of the U.S. Securities and Exchange Commission in
Washington, D.C., where he became a senior attorney in the Division of
Corporation Finance. Mr. Poliakoff is currently a member of the Maryland State
Bar Association's Business Law Section and former Chair of its Committee on
Securities. Formerly he was a member of the Business Regulations Article Review
Committee of the Committee to Revise the Maryland Annotated Code. Mr. Poliakoff
is a member of the Board of Directors of the Greater Baltimore Technology
Council (GBTC) and Chair of its Legislative Committee. He is a former Chair of
the Maryland Business &amp; Technology Coalition, member of the Technology
Council of Maryland, and member of the MIT Enterprise Forum. Mr. Poliakoff is
currently the Chairman of the Maryland Israel Development
Center.</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">16</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ana I. Stancic</b>, age 51, has
served as Director of the Company since March 2008. Ms. Stancic has served since
March, 2008 as Chief Financial Officer of Aureon Laboratories Incorporated
("Aureon"), an oncology diagnostic company dedicated to enabling the advancement
of predictive and personalized cancer treatment by performing diagnostic
reference laboratory and clinical research services. Prior to joining Aureon,
Ms. Stancic was Executive Vice President and Chief Financial Officer at OMRIX
Biopharmaceuticals, Inc. Before joining OMRIX, Ms. Stancic served as Senior Vice
President, Finance at ImClone Systems, Inc. ("ImClone"), a global
biopharmaceutical company committed to advancing oncology care, where she was
responsible for ImClone's finance department, information technology and
internal audit. Ms. Stancic joined ImClone as Vice President, Controller and
Chief Accounting Officer in 2004. Prior to joining ImClone, she was Vice
President and Controller at Savient Pharmaceuticals, Inc. from 2003 to February,
2004. Ms. Stancic was Vice President and Chief Accounting Officer at Ogden
Corporation from 1999 to 2002 and Regional Chief Financial Officer at OmniCare,
Inc. from 1997 to 1999. Ms. Stancic began her career in 1985 at
PricewaterhouseCoopers in the Assurance practice where she had responsibility
for international and national companies in the pharmaceutical and services
industries. Ms. Stancic is a Certified Public Accountant and holds an M.B.A.
degree from Columbia Business School. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term of office of each Director is
until the next annual election of Directors and until a successor is elected and
qualified or until the Director's earlier death, resignation or removal.
Officers are appointed by the Board of Directors and serve at the discretion of
the Board. There is no family relationship between or among any of the Company's
Directors or Officers.<p>
<i>Board Committees</i><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors has appointed
an Audit Committee, a Compensation Committee, and a Nominating and Corporate
Governance Committee and has adopted charters for each of these committees.  The
Audit Committee financial expert is Ana Stancic.   The members of the committees
are:<p>
<u>Nominating and Corporate Governance Committee</u><p>
David Sidransky, Chair<br>Abba David Poliakoff<br>Ana Stancic<p>
<u>Compensation Committee</u><p>
Abba David Poliakoff, Chair<br>David Sidransky<br>Ana Stancic<p>
<u>Audit Committee</u><p>
Ana Stancic, Chair<br>Abba David Poliakoff<br>David Sidransky<br><p>
<i>Code of Ethics</i><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has a Code of Ethics that
applies to all Company employees, including President, as well as members of the
Board of Directors.   The Company's Code of Ethics is included as an Exhibit.<p>
<i>Compliance with Section 16(a)</i><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16(a) of the Exchange Act, as
amended, requires the Company's executive officers, directors and persons who
beneficially own more than 10% of the Company's common stock to file reports of
their beneficial ownership and changes in ownership (Forms 3, 4 and 5, and any
amendment thereto) with the SEC Executive officers, directors, and
greater-than-ten percent holders are required to furnish the Company with copies
of all Section 16(a) forms they file.  Based on the Company's review of the
activity of the officers and directors for the fiscal year ended April 30, 2008,
the Company believes that reports pursuant to Section 16(a) were
filed.</p align="center">
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<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">17</font></p>
</td>
</tr>
</table></div>
<p>
<p>
Item 10.&nbsp;&nbsp;Executive Compensation.<p>
The following sets forth information for the most recently completed fiscal year
concerning the compensation of (i) the Chief Executive Officer and (ii) all
other executive officers who earned in excess of $100,000 in salary and bonus in
the fiscal year ended April 30, 2008. <p align="center">
SUMMARY <b>COMPENSATION</b> TABLE</p>
<div style="position:relative; left: 3"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="313.333255" colspan="1" rowspan="1" >
<p>
&nbsp;<br><font size="2"><b>Name and Principal
Position</b></font><br><font size="2"><b>(a)</b></font></p>
</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br><font size="2"><b>Year</b></font><br><font size="2"><b>(b)</b></font></p align="center">
</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br><font size="2"><b>Salary&nbsp;($)</b></font><br><font size="2"><b>(c)</b></font></p align="center">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Option</b></font><br><font size="2"><b>Awards
($)</b></font><br><font size="2"><b>(f)</b></font></p align="center">
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br><font size="2"><b>Total
($)</b></font><br><font size="2"><b>(j)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="86.666645" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="94.666643" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. Douglas D. Burkett, President</font></p>
</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2008</font></p align="right">
</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
<font size="2">18,750 (1)</font></p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$336,287</font></p align="right">
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
<font size="2">355,037</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="1" rowspan="1" >
<p>
<font size="2">James Martell, Chief Administrative Officer</font></p>
</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2008</font></p align="right">
</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
<font size="2">113,416</font></p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
<font size="2">113,416</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="69.333316" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2007</font></p align="right">
</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
<font size="2">64,052 (2)</font></p align="right">
</td>
<td width="86.666645" colspan="1" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
<font size="2">64,052</font></p align="right">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">(1) Salary following March 27, 2008, date of employment
agreement</font><p>
<font size="2">(2) Accrued salary</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of Directors
has the right to change and increase the compensation of executive officers at
any time. The Company entered into an employment agreement dated March 27, 2008
with Dr. Burkett to serve as President. The term of the agreement commenced on
March 31, 2008 and extends for a two-year period, renewing automatically for
successive one year periods unless notice of non-renewal is given. Dr. Burkett's
compensation includes a salary of $225,000 per annum, participation in Company
employee benefit plans and reconfirmation of an option previously granted on
October 10, 2007 to acquire 500,000 shares of common stock at an exercise price
of $0.75 per share, the market price of the common stock on the date the option
was issued. The options to purchase shares vest at the rate of 166,665 shares on
the first anniversary of the grant date, 166,665 shares on the second
anniversary of the grant date and 166,670 shares on the third anniversary of the
grant date. All vested options will be exercisable over a five-year period
expiring on the fifth anniversary of the grant date, provided that the options
will terminate upon a material breach by the executive of the employment
agreement. The agreement further provides that if the Company terminates the
executive's employment without cause, the Company shall pay the executive
severance equal to four months' salary and his options shall immediately
vest.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company entered
into an employment agreement dated March 31, 2008 with James Martell to serve as
Chief Administrative Officer. The term of the agreement commenced on March 31,
2008 and extends for a one-year period, renewing automatically for successive
one year periods unless notice of non-renewal is given. Mr. Martell's
compensation includes a salary of $185,000 per annum and participation in
Company employee benefit plans. The agreement further provides that if the
Company terminates the executive's employment without cause, the Company shall
pay the executive severance equal to three months' salary.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In FY 2007, all
executive officers of the Company as a group (one in number) received no cash
compensation.  Effective January 2004 through May 2007, payments of salaries to
all executive officers were suspended in order to preserve the Company's cash
position.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 15, 2007,
the Company issued options for fifty thousand shares of restricted stock to
Durwood Settles, Director of the Company, exercisable over a five year period,
based on a fair value exercise price on the date of issuance ($0.17),
exercisable through January 15, 2012, and vesting one year from the date of
issuance.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table
sets forth, for each of the executive officers named in the Summary Compensation
Table, information with respect to unexercised options as of the Company's
fiscal year ended April 30, 2008:</font></p>
<div style="position:relative; left: 21"><table border="1">
<tr valign="top">
<td width="135.999966" colspan="1" rowspan="1" >
<p>
&nbsp;<br>&nbsp;<br>&nbsp;<br>&nbsp;<br>&nbsp;<br><font size="2"><b>Name</b></font><br><font size="2">(a)</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Number of Securities Underlying Unexercised Options (#)
Exercisable</b></font><br>(b)</p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Number of Securities Underlying Unexercised Options (#)
Unexercisable</b></font><p align="center">
(c)</p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br>&nbsp;<br>&nbsp;<br><font size="2"><b>Option Exercise Price
($)</b></font><br><font size="2">(e)</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br>&nbsp;<br>&nbsp;<br><font size="2"><b>Option Expiration
Date</b></font><br><font size="2">(f)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="135.999966" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D. Burkett</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">500,000<sup>(1)</sup></font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.75</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">10/9/2012</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="135.999966" colspan="1" rowspan="1" >
<p>
<font size="2">James Martell</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">(1)  These options to purchase shares vest at the rate of 166,665
shares on each of the first three anniversaries of the October 10, 2007 grant
date.  All vested options will be exercisable over a five-year period expiring
on the fifth anniversary of the grant date, provided that the options will
terminate upon a material breach by Dr. Burkett of the employment agreement. The
options shall immediately vest if the Company terminates Dr. Burkett's
employment without cause.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">18</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>DIRECTOR COMPENSATION</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In FY 2008 the Board of
Directors agreed to a Director's Compensation plan whereby non-employee
directors would receive options to purchase 50,000 shares upon their initial
appointment as a director.  In addition, the Chairman of the Board would receive
options to purchase 50,000 shares. Each director would be entitled to receive
options to purchase 20,000 shares annually upon their reelection or as of the
annual meeting date.  All options would have a term of five years, would vest
equally over three years at the rate of one-third each year, and would have an
exercise price equal to the fair market value of the stock on the date the
option is granted. Based on the foregoing, Mr. Poliakoff and Ms. Stancic, both
appointed as independent directors of the Company, were each granted options to
purchase 50,000 shares, and Dr. Sidransky was granted options to purchase 50,000
shares, all at a price of $1.15 per share as their initial option
grant.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table
summarizes the compensation paid to directors for the fiscal year ended April
30, 2008:</font></p>
<div style="position:relative; left: 74"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="215.999946" colspan="1" rowspan="1" >
<p>
<p>
<font size="2"><b>Name</b></font><p>
<font size="2">(a)</font></p>
</td>
<td width="115.999971" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2"><b>Option Awards ($)</b></font><p align="center">
<font size="2"><b>(d)</b></font></p align="center">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2"><b>Total ($)</b></font><p align="center">
<font size="2"><b>(h)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="1" rowspan="1" >
<p>
<font size="2">David Sidransky</font></p>
</td>
<td width="115.999971" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$45,889</font></p align="center">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$45,889</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="1" rowspan="1" >
<p>
<font size="2">Abba David Poliakoff</font></p>
</td>
<td width="115.999971" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$57,362</font></p align="center">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$57,362</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="1" rowspan="1" >
<p>
<font size="2">Ana Stancic</font></p>
</td>
<td width="115.999971" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$57,362</font></p align="center">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$57,362</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="1" rowspan="1" >
<p>
<font size="2">James Martell</font></p>
</td>
<td width="115.999971" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 11.&nbsp;&nbsp;Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April 30, 2008
the following were persons known to the Company to own beneficially more than 5%
of the Company's outstanding Common Stock:</font><p>
<font size="2"> </font></p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2"><b><i>Name and Address of</i></b></font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><i>Common Stock</i></b></font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2"><b><i>Beneficial Owner</i></b></font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><i>Beneficially Owned (1)</i></b></font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><i>Percent of Class</i></b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. David Sidransky</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2">10,600,000</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">31.9</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">1550 Orleans Street</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Baltimore, MD 21231</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2">8,348,000</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">25.1</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">1400 N. 14<sup>th</sup> Street</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Arlington, VA 22209</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. Manuel Hidalgo</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2,562,500</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">7.7</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">1550 Orleans Street</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Baltimore, MD 21231</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<sup><font size="2">(1))</font></sup><font size="2">&nbsp;Beneficial Ownership
includes shares for which an individual,  directly or indirectly,  has or
shares, or has the right within 60 days to have or share, voting or  investment
power or both.  Beneficial ownership as reported in the above table has been
determined in accordance with Rule 13d-3 of the Exchange
Act.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">19</font></p>
</td>
</tr>
</table></div>
<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April 30, 2008, the stock
ownership by officers and directors of the Company and all officers and
directors as a group are as follows:</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br>&nbsp;<br>&nbsp;<br><font size="2"><b><i>Name of Beneficial
Owner</i></b></font></p align="center">
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br>&nbsp;<br>&nbsp;<br><font size="2"><b><i>Title</i></b></font></p align="center">
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br><font size="2"><b><i>Common
Stock</i></b></font><br><font size="2"><b><i>Beneficially
Owned</i></b></font><br><font size="2"><b><i>(1)</i></b></font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
&nbsp;<br>&nbsp;<br><font size="2"><b><i>Percent of
Class</i></b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="197.333284" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="143.999964" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. David Sidransky </font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
<font size="2">Chairman</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">10,600,000</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">31.9</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D Burkett, Ph.D.</font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
<font size="2">President</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. Manuel Hidalgo</font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Scientific Officer</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2,562,500</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">7.7</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Administrative Officer, Director</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">8,348,000</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">25.1</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood Settles</font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Financial Officer, Treasurer</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">Abba David Poliakoff</font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">400,000</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">1.2</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">Ana I. Stancic</font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="185.333287" colspan="1" rowspan="1" >
<p>
<font size="2">All Officers &amp; Directors as a group</font></p>
</td>
<td width="197.333284" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">21,910,500</font></p align="center">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2">65.9</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<sup><font size="2">(1)</font></sup><font size="2">&nbsp;Beneficial Ownership
includes shares for which an individual, directly or indirectly, has or shares,
or has the right within 60 days to have or  share,  voting  or  investment
power or both.  Beneficial ownership as reported in the above table has been
determined in accordance with Rule 13d-3 of the Exchange Act.</font><p>
<font size="2"><i>Equity Compensation Plan Information</i></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not
maintain a stock option plan.  However, the Company has granted options to
individual employees, directors and consultants pursuant to individual
compensation arrangements.  The following table provides information, as of
April 30, 2008, with respect to all these compensation arrangements under which
shares are authorized for issuance.</font></p>
<div style="position:relative; left: -5"><table border="1">
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<p>
<font size="2"><b>Plan Category</b></font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Number of securities to be issued upon exercise of outstanding
options, warrants and rights</b></font></p align="center">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Weighted-average exercise price of outstanding options,
warrants and rights</b></font></p align="center">
</td>
<td width="221.333278" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Number of securities remaining available for future issuance
under equity compensation plans (excluding securities reflected in column
(a)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(a)</b></font></p align="center">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(b)</b></font></p align="center">
</td>
<td width="221.333278" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(c)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Equity compensation plans approved by security
holders</b></font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="221.333278" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2">0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Equity compensation plans not approved by security
holders</b></font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2">1,955,000</font></p align="center">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2">$0.65</font></p align="center">
</td>
<td width="221.333278" colspan="1" rowspan="1" >
<p align="center">
<p align="center">
<font size="2">0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="179.999955" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Total</b></font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p align="center">
<font size="2">1,955,000</font></p align="center">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0.65</font></p align="center">
</td>
<td width="221.333278" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 12.&nbsp;&nbsp;Certain Relationships and Related
Transactions.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During FY 2007, the
Company received, for working capital needs, advances, totaling $43,693, due on
demand and without interest, from James Martell, President and CEO of the
Company.  The Company repaid the advances to Mr. Martell in FY 2008.
</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">20</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2"><b>Item 13.&nbsp;&nbsp;Exhibits.</b></font><p>
<font size="2"><u>Exhibit No.</u></font></p>
<div style="position:relative; left: 10"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">3.1</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Articles of Incorporation </font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">3.2</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Bylaws, as amended </font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">10.1</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Employment Agreement dated March 27, 2008 between the Company and
Douglas D. Burkett*</font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">10.2</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Employment Agreement dated March 31, 2008 between the Company and
James Martell*</font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">10.3</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Employment Agreement dated March 26, 2008 between the Company and
Durwood C. Settles*</font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">14 </font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Code of Ethics*</font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">21 </font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Subsidiaries of the Registrant</font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">31.1</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Rule 13a-14(a)/15d-14(a) Certification of Chief Executive
Officer*</font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">31.2</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Rule 13a-14(a)/15d-14(a) Certification of Chief Financial
Officer*</font></p>
</td>
</tr>
<tr valign="top">
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">32.1</font></p>
</td>
<td width="618.666512" colspan="1" rowspan="1" >
<p>
<font size="2">Section 1350 Certifications*</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">*Filed herewith</font><p>
<font size="2"><b>Item 14.&nbsp;&nbsp;Principal Accountant Fees and
Services.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a
summary of the fees billed to the Company by its principal accountants during
the fiscal years ended April 30, 2008, and April 30, 2007:</font></p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="115.999971" colspan="1" rowspan="1" >
<p>
<font size="2">Fee Category</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p>
<font size="2">    </font></p>
</td>
<td width="63.999984" colspan="2" rowspan="1" >
<p align="center">
<font size="2">FY 2008</font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">FY 2007</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="115.999971" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Audit fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$5,000</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$8,000</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Audit-related fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$3,550</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$4,500</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Tax fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">All other fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="115.999971" colspan="1" rowspan="1" >
<p>
<font size="2">  </font></p>
</td>
<td width="159.999960" colspan="4" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Total fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$8,550</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$12,500</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit fees.  Consists
of fees for professional services rendered by our principal accountants for the
audit of the annual financial statements.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit-related fees.
Consists of fees for assurance and related services by our principal accountants
that are reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit fees."</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax  fees.  Consists of
fees for professional services rendered by our principal accountants for tax
compliance, tax advice and tax planning.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other fees.
Consists of fees for products and services provided by our principal
accountants, other than the services reported under "Audit fees," "Audit-related
fees" and "Tax fees" above.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit Committee
Policies and Procedures.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">21</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>CONSOLIDATED FINANCIAL
STATEMENTS</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>INDEX TO CONSOLIDATED FINANCIAL
STATEMENTS</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>CONSOLIDATED FINANCIAL STATEMENTS:</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="510.666539" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Report of Independent Registered Public Accounting
Firm</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">F3</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="510.666539" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Consolidated Balance Sheet as of April 30, 2008 and 2007
</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">F4</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Consolidated Statements of Income for the Years </font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="486.666545" colspan="1" rowspan="1" >
<p>
<font size="2">Ended April 30, 2008 and 2007</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
<font size="2">F5</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
<p>
<font size="2">Consolidated Statement of Stockholders' Equity (Deficit) for the
</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="486.666545" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Years ended April 30, 2008 and 2007 </font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">F6</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Consolidated Statements of Cash Flows for the Years
Ended</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="486.666545" colspan="1" rowspan="1" >
<p>
<font size="2">April 30, 2008 and 2007</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
<font size="2">F7</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="510.666539" colspan="2" rowspan="1" >
<p>
<font size="2">Notes to Consolidated Financial Statements</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
<font size="2">F8- F21</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p>
<p align="center">
<font size="2">BAGELL, JOSEPHS, LEVINE &amp; COMPANY,
L.L.C.</font><br><font size="2">Certified Public
Accountants</font><br><p align="center">
<font size="2">406 Lippincott Drive, Ste. J</font><br><font size="2">Marlton, NJ
08053-4168</font><br><font size="2">(856) 346-2828   Fax (856)
396-0022</font><br></p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font size="2">REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;Board of Directors and Stockholders	</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">Champions Biotechnology, Inc.</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">1400 N. 14<sup>th</sup> Street</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">Arlington, VA 22209-3693</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;We have audited the accompanying consolidated balance sheets of Champions Biotechnology, Inc., as of April 30, 2008 and 2007, and the related consolidated statements of operations, stockholders' equity and cash flows for each of the years in the two-year period ended April 30, 2008.  Champions Biotechnology, Inc.'s management is responsible for these financial statements.  Our responsibility is to express an opinion on these financial statements based on our audits.	</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">We conducted our audits in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement.  The company is not required to have, nor were we engaged to
perform, an audit of its internal control over financial reporting.  Our audit
included consideration of internal control over financial reporting as a basis
for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the
company's internal control over financial reporting.  Accordingly, we express no
such opinion.  An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.  We believe
that our audits provide a reasonable basis for our opinion.</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Champions Biotechnology, Inc. as of April 30, 2008 and 2007, and the results of its operations and its cash flows for each of the years in the two-year period ended April 30, 2008 in conformity with accounting principles generally accepted in the United States of America.	</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">&nbsp; </font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2"><i>/s/ BAGELL, JOSEPHS, LEVINE &amp; COMPANY,
L.L.C.</i></font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">Bagell, Josephs, Levine &amp; Company,
L.L.C.</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">Marlton, NJ 08053</font></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p>
<font face="Arial" size="2">July 28, 2008</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
(AICPA)</font><br><font size="2">CENTER FOR AUDIT QUALITY
(CAQ)</font><br><font size="2">NEW JERSEY SOCIETY OF CERTIFIED PUBLIC
ACCOUNTANTS</font><br><font size="2">PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC
ACCOUNTANTS</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-3</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.
</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES </b></font><br><font size="2"><b>CONSOLIDATED BALANCE
SHEETS</b></font><br><font size="2"><b>FOR THE YEARS ENDED APRIL 30, 2008 AND
2007</b></font></p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2"><b>ASSETS</b></font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2008</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2007</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
<p>
<font size="2"><b>CURRENT ASSETS</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;Cash and cash equivalents</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,709,136&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,758&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;Prepaid expenses</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp; 52,873&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;-&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current
Assets</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,762,009&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,758&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;Intangibles assets</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">227,465&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">180,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;Goodwill</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
<font size="2"> 661,909&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,651,383&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">183,758&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2"><b>LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)</b></font></p>
</td>
<td width="238.666607" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
<p>
<font size="2"><b>CURRENT LIABILITIES</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Accounts payable</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">147,971&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">49,736&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Deferred revenue</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
<font size="2">504,622&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Other accrued expenses</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
<font size="2">361,275&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">351,394&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Officer loans payable</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">43,693&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current
liabilities</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,013,868&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">444,823&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
<p>
<font size="2"><b>COMMITMENTS AND CONTINGENCIES</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
<p>
<font size="2"><b>STOCKHOLDERS' EQUITY (DEFICIT)</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Preferred stock, $10 par value; 56,075 shares
authorized;</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;0 and 32,450 shares issued and outstanding</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Common stock, $.001 par value; 50,000,000 shares
authorized;</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;33,247,718 and 27,624,658 shares issued and
outstanding</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
<font size="2">33,248&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">27,625&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Additional paid-in capital</font></p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
<font size="2">11,715,182&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">6,848,693&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Accumulated deficit</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(7,068,547)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (7,104,245)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
<font size="2">4,679,883&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (227,927)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Less: prepaid consulting</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(1,042,368)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(33,138)&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Total stockholders' equity (deficit)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,637,515&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (261,065)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,651,383&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
<font size="2">183,758&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of these consolidated
financial statements.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-4</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>CONSOLIDATED STATEMENTS OF
INCOME</b></font><br><font size="2"><b>FOR THE YEARS ENDED APRIL 30, 2008 AND
2007</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="15.999996" colspan="2" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"><b><u>2008</u></b></font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"><b><u>2007</u></b></font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>OPERATING REVENUE</b></font></p>
</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Personalized Oncology services</font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,399,940</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
operating revenue</b></font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="2" rowspan="1" >
<p align="right">
<font size="2">1,399,940</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2"><b>COSTS AND OPERATING EXPENSES </b></font></p>
</td>
<td width="138.666632" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Service expenses</font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">490,435</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;Research and development </font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right">
<font size="2">199,743</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;General and administrative</font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">703,176</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">170,058&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
costs and operating expenses</b></font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">1,393,354</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">170,058&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>INCOME (LOSS) BEFORE OTHER INCOME</b></font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">6,586</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> (170,058)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Other income</font></p>
</td>
<td width="138.666632" colspan="3" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
income</font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">29,112&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> -</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
other income</b></font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">29,112&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES</b></font></p>
</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">35,698</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> (170,058)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Provision for income taxes</font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-   </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS</b></font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right">
<font size="2">35,698</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (170,058)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2"><b>BASIC AND DILUTED INCOME (LOSS) PER COMMON
SHARE</b></font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> 0.00</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (0.01)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>WEIGHTED AVERAGE SHARES OUTSTANDING -  BASIC</b></font></p>
</td>
<td width="138.666632" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">31,494,025</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">20,459,726</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<font size="2"><b>WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED </b></font></p>
</td>
<td width="15.999996" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right">
<font size="2">34,279,537</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of these consolidated
financial statements.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-5</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>CONSOLIDATED STATEMENTS OF
STOCKHOLDERS' EQUITY (DEFICIT)</b></font><br><font size="2"><b>FOR THE YEARS
ENDED APRIL 30, 2008 AND 2007</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="154.666628" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b>Series A, 12%</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="154.666628" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>Convertible Cumulative</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="154.666628" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b>Preferred Stock</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="185.333287" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b>Common Stock</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b>Paid-in</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b>Accumulated</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Shares</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Amount</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Shares</b></font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Amount</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Capital</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Deficits</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Total</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Balance, April 30, 2006</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">32,450&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">324,500&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">16,824,658&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">16,825&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">5,922,349&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> (6,934,187)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> (670,513)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Issued 1,000,000 common shares  and 1,000,000 </font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;warrants in exchange for 32,450 preferred
shares</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (32,450)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (324,500)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,000,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,000&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">673,960&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">350,460&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Issued common stock for cash</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,000,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,000&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">21,000&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">28,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Issued common stock for cash</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,500,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,500&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,500&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Issued Common stock for patents rights</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">300,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">300&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">179,700&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">180,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Stock issued for consulting services (prepaid
consulting)</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">44,184&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">44,184&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Net loss </font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (170,058)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(170,058)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">    </font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">    </font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">    </font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">    </font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">    </font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">    </font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">    </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Balance, April 30, 2007</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">27,624,658&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">27,625&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">6,848,693&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (7,104,245)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (227,927)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Issued 4,000,000 common shares for 100% of Biomerk,
Inc.</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,000,000</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,000</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,156,000</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,160,000</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Stock issued for exercise of warrants</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">169,488</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">170</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">28,335</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">28,505</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Stock issued for exercise of options</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">25,000</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">25</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">4,225</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">4,250</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Issued common stock for cash</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,428,572</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,428</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,498,572</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,500,000</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Stock issued for consulting services (prepaid
consulting)</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,179,357</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,179,357</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Net income</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">35,698</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">35,698</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Balance, April 30, 2008</font></p>
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">33,247,718</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">33,248</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">11,715,182</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(7,068,547)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,679,883</font></p align="right">
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of these consolidated
financial statements.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="925.333102" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-6</font></p>
</td>
</tr>
<tr valign="top">
<td width="925.333102" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>CONSOLIDATED STATEMENTS OF CASH
FLOWS</b></font><br><font size="2"><b>FOR THE YEARS ENDED APRL 30, 2008 AND
2007</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2008</b></font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2007</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Net income (loss) from operating activities</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">35,698</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (170,058)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>    &nbsp;Adjustments to reconcile net income (loss) to net
cash </b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>    &nbsp;used in operating activities:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) in prepaid
expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(52,873)</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">    &nbsp;Increase in accounts payable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">107,341</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> 16,485  </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in deferred
revenue</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">504,623</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Increase in other accrued expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">27,488&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">64,052&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Amortization of prepaid consulting services</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">170,127&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">11,046&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Total adjustments</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">756,706&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">91,583&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>    &nbsp;Net cash provided (used in) operating
activities</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">792,404</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (78,475)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">CASH FLOWS FROM INVESTING ACTIVITIES</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in intangible
assets</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">(47,465)</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in cash from
acquisition</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">471,377</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by
investing activities</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">423,912</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;(Payment of) proceeds from officers loan
payable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(43,693)&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">43,693&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">    &nbsp;Proceeds from sale of common stock and exercise of
options</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">2,504,250&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">38,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise
of warrants</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;28,505&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;-&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash
provided by financing activities</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,489,062&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">81,693&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET INCREASE IN CASH</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>    &nbsp;AND CASH EQUIVALENTS</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">3,705,378&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> 3,218 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS -</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>    &nbsp;BEGINNING OF YEAR</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,758&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">540&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS - END OF YEAR</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,709,136&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,758&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">    &nbsp;Cash paid during the year for:</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
paid</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">997&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,287&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Tax
Paid</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>SUPPLEMENTAL SCHEDULE OF NON-CASH FLOW INVESTING AND FINANCING
ACTIVITIES:</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">In January 2007, the Company issued 340,000 stock options for
prepaid consulting services valued at $44,184.</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In  May 2007, the Company issued 525,000 stock options for
prepaid consulting valued at $157,473.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In May 2007, the Company issued 4,000,000 shares for 100% of the
shares of Biomerk, Inc.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In October 2007, the Company issued 500,000 stock options for
prepaid consulting services valued at $336,287.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In November 2007, the Company issued 61,632 shares for warrants
exercised at $9,245.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In January 2008, the Company issued 107,856 shares for warrants
exercised at  $19,260.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In March 2008, the Company issued 25,000 shares for
$4,250.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In March 2008, the Company issued 615,000 stock options for
prepaid consulting services valued at $685,597.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">In April 2008, the Company issued 1,428,572 shares for
$2,500,000.</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of these consolidated
financial statements.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-7</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</b></font><br><font size="2"><b>APRIL 30, 2008 AND 2007</b></font><p>
<font size="2"><b>NOTE 1-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION AND BASIS
OF PRESENTATION </u></b></font></p>
&nbsp;Champions Biotechnology, Inc., (the "Company") is a biotechnology company that is engaged in the development  of advanced preclinical platforms and predictive tumor specific data to  enhance  and accelerate the value of oncology drugs.Champions Biotechnology, Inc. was incorporated as a merger and acquisition company under the laws of the State of Delaware on June 4, 1985 under the name "International Group, Inc." In September 1985 the Company completed a public offering and shortly thereafter acquired the world-wide rights to the Champions sports theme restaurant concept and changed its name to "Champions Sports, Inc." In 1997, the Company sold its Champions service mark and concept to Marriott International, Inc. and until 2005, was a consultant to Marriott International, Inc. and operated one Champions Sports Bar Restaurant.  In January 2007, the Company changed its business direction to focus on biotechnology and subsequently changed its name to Champions Biotechnology, Inc. In February 2007 the Com
pany acquired the patent rights to two Benzoylphenylurea (BPU) sulfur analog compounds.  On May 18, 2007, the Company acquired Biomerk, Inc. from Dr. David Sidransky and issued 4,000,000 restricted shares of its common stock..    On April 30, 2008, the Company issued 1,428,572 restricted shares of the Company's common stock at $1.75 per share pursuant to the terms of a private investment financing. 	<p>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ALLEVIATION
OF GOING CONCERN</u></b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At April 30, 2007, the
Company reported that it had incurred substantial net losses for the years ended
April 30, 2007 and April 30, 2006 and the Company had not commenced operations
to have a revenue stream to support itself.  These factors raised substantial
doubt about the Company's ability to continue as a going concern at that
time.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the three months
ended April 30, 2008 the Company raised $2.5 million dollars in cash through a
private placement of common stock.  With this additional capital and projected
cash flow expenditures over the next twelve months, Company's management
considers the facts and circumstances which raised substantial doubt about the
Company's ability to continue as a going concern to be alleviated.</font><p>
<font size="2">   </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has
sufficient resources to provide for the next twelve months of operations based
on its current level of expenditure, its anticipated level of future expenditure
and revenue growth and its ability to curtail expenditures if needed.</font><p>
<font size="2"><b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES</u></b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Principles
of Consolidation</u></b></font><p>
<font size="2">The consolidated financial statements include the accounts of the
Company and its subsidiaries. All material intercompany transactions have been
eliminated in consolidation. </font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-8</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</b></font><br><font size="2"><b>APRIL 30, 2008 AND 2007</b></font><p>
<font size="2"><b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES</u> (CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Revenue
Recognition</u></b></font><p>
<font size="2">The Company derives revenue from its Personalized Oncology
services which assist physicians by providing information that may enhance
personalized treatment options for their cancer patients through access to
expert medical information panels and tumor specific data.  Revenues are also
derived from the Company's Preclinical EValuation services which offer the
benefits of its Preclinical Platform to pharmaceutical and biotechnology
companies using Biomerk Tumorgraft studies which have been shown to be
predictive of how drugs perform in clinical settings.  The Company's revenue is
described as Personalized Oncology services in the Consolidated Statements of
Income.</font><p>
<font size="2">Revenue is recognized in accordance with the SEC's Staff
Accounting Bulletin No. 104, "Revenue Recognition" ("SAB 104").  SAB 104
requires that four basic criteria be met before revenue can be recognized:  1)
persuasive evidence of an arrangement exists; 2) delivery has occurred or
services rendered; 3) the fee is fixed and determinable; and 4) collectability
is reasonably assured.  As to 1), our business practices require that our
services be performed pursuant to contracts with our customers.  As to 2), we
recognize revenue when services are rendered to our customers.  As to 3), the
fee is determined and fixed at the time the contract is executed.  As to 4), our
business practices require that fees for services be remit upon execution of the
contract, either in full or in contractual amounts based on management's
judgments regarding the fixed nature of our arrangements taking into account
termination provisions and the collectability of fees under our
arrangements.</font><p>
<font size="2">The Company's revenue was solely derived from its Personal
Oncology services during the year ended April 30, 2008.</font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Goodwill and
Other Intangible Assets</u></b></font><p>
<font size="2">In June 2001, the Financial Accounting Standards Board ("FASB")
issued Statement No. 142 "Goodwill and Other Intangible Assets". This statement
addresses financial accounting and reporting for acquired goodwill and other
intangible assets and supersedes APB Opinion No. 17, "Intangible Assets". It
addresses how intangible assets that are acquired individually or with a group
of other assets (but not those acquired in a </font><p>
<font size="2">business combination) should be accounted for in financial
statements upon their acquisition.  This Statement also addresses how goodwill
and other intangible assets should be accounted for after they have been
initially recognized in the financial statements. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Intangible
Assets</u></b></font><p>
<font size="2">Intangible assets represent costs incurred for patent
applications. The costs incurred were valued at the fair value of the stock at
the time of issuance.  The Company will establish its estimated useful life upon
approval of the application, which will begin the period of amortization of its
cost.  The Company will estimate the fair value of this asset annually.
</font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Accounting for
Acquisition</u></b></font><p>
<font size="2">The Company has accounted for its acquisition under the purchase
method of accounting for business combinations. Under the purchase method of
accounting, the cost, including transaction costs, are allocated to the
underlying net assets, based on their respective estimated fair values. The
excess of the purchase price over the estimated fair values of the net assets
acquired is recorded as goodwill.</font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Impairment of
Goodwill and Other Intangible Assets</u></b></font><p>
<font size="2">Goodwill and other intangible assets are tested annually for
impairment and are tested for impairment more frequently if events and
circumstances indicate that the asset might be impaired.  An impairment loss is
recognized to the extent that the carrying amount exceeds the asset's fair
value. The Company assesses the recoverability of its goodwill and other
intangible assets by comparing the projected undiscounted </font><p>
<font size="2">net cash flows associated with the related asset, over the
remaining lives, in comparison to their respective carrying amounts. Impairment,
if any, is based on the excess of the carrying amount over the fair value of
those assets.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Deferred
Revenue</u></b></font><p>
<font size="2">Deferred revenue represents payments received in advance for
services to be performed. When services are rendered, deferred revenue is then
recognized as earned.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Research and
Development</u></b></font><p>
<font size="2">Research and development costs are expensed as
incurred.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Use
of Estimates</u></b></font><p>
<font size="2">The preparation of consolidated financial statements in
conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the consolidated financial statements and the
reported amounts of revenues and expenses during the reporting period.  Actual
results could differ from those estimates. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Net
Income (Loss) Per Share</u></b></font><p>
<font size="2">Historical net income (loss) per common share is computed using
the weighted average number of common shares outstanding. Diluted earnings per
share (EPS) include additional dilution from common stock equivalents, such as
stock issuable pursuant to the exercise of stock options and warrants. Common
stock equivalents were not included in the computation of diluted earnings per
share when the Company reported a loss in 2007 because to do so would be
antidilutive for the year presented.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-9</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES </u>(CONTINUED)</b></font><p>
<font size="2">The following is a reconciliation of the computation for basic
and diluted EPS:</font></p>
<div style="position:relative; left: 30"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>April 30,</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>April 30,</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2008</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2007</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
<p>
<font size="2">Net income (loss)</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;$</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right">
<font size="2">35,698</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;$</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (170,058)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Weighted-average common shares</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">outstanding (basic)</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">31,494,025&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">20,459,726&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Weighted-average common stock</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Equivalents</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
options</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">1,955,000</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right">
<font size="2">830,512</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Weighted-average common shares</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" >
<p>
<font size="2">outstanding (diluted)</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right">
<font size="2">34,279,537&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">20,459,726&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">  </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Cash
and Cash Equivalents</u></b></font><p>
<font size="2">For purposes of the consolidated statements of cash flow, the
Company considers all highly liquid debt instruments purchased with a maturity
of six months or less, unless restricted as to use, to be cash equivalents. At
various times throughout the years the Company had amounts on deposit at
financial institutions in excess of federally insured
limits.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-10</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES </u>(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Income
Taxes</u></b></font><p>
<font size="2">The Company has adopted the provisions of Statement of Financial
Accounting Standards No. 109 (the Statement), Accounting for Income Taxes. The
Statement requires an asset and liability approach for financial accounting and
reporting for income taxes, and the recognition of deferred tax assets and
liabilities for the temporary differences between the financial reporting bases
and tax bases of the Company's assets and liabilities at enacted tax rates
expected to be in effect when such amounts are realized or settled.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Fair
Value of Financial Instruments</u></b></font><p>
<font size="2">The carrying amounts of the Company's financial instruments,
including cash and cash equivalents, accounts payable, and accrued expenses,
officer loans payable approximate fair values because of the short maturities of
these instruments.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock-Based
Compensation</u></b></font><p>
<font size="2">Employee stock awards under the Company's compensation plans are
accounted for in accordance with Statement of Financial Accounting Standards No.
123 (Revised 2004), "Share-Based Payment" ("SFAS 123R").  SFAS 123R requires
that compensation cost related to share-based payment transactions be recognized
in the financial statements. Share-based payment transactions within the scope
of SFAS 123R include stock options, restricted stock plans, performance-based
awards, stock appreciation rights, and employee share purchase plans.  The
provisions of SFAS 123R, as amended, are effective for small business issuers
beginning as of the next fiscal year after December&nbsp;15, 2005.  Accordingly,
the Company implemented the revised standard in the first quarter of fiscal year
2007. </font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-11</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES </u>(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock-Based
Compensation</u> (Continued)</b></font><p>
<font size="2">The Company measures compensation expense for its non-employee
stock-based compensation under the Financial Accounting Standards Board (FASB)
Emerging Issues Task Force (EITF) Issue No. 96-18,<i> "Accounting for Equity
Instruments that are Issued to Other Than Employees for Acquiring, or in
Conjunction with Selling, Goods or Services". </i>The fair value of the option
issued is used to measure the transaction, as this is more reliable than the
fair value of the services received. The fair value is measured at the value of
the Company's common stock on the date that the commitment for performance by
the counterparty has been reached or the counterparty's performance is complete.
The fair value of the equity instrument is charged directly to compensation
expense and additional paid-in capital.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-12</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES </u></b></font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u> </b></font><br><p>
<font size="2">In September 2006, The Financial Accounting Standards Board
("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. 157,
"Fair Value Measurement" ("SFAS No. 157"). This standard provides guidance for
using fair value to measure assets and liabilities. SFAS No. 157 applies
whenever other standards require (or permit) assets or liabilities to be
measured at fair value but does not expand the use of fair value in any new
circumstances. Prior to SFAS No. 157, the methods for measuring fair value were
diverse and inconsistent, especially for items that are not actively traded. The
standard clarifies that for items that are not actively traded, such as certain
kinds of derivatives, fair value should reflect the price in a transaction with
a market participant, including an adjustment for risk, not just the company's
mark-to-model value. SFAS No. 157 also requires expanded disclosure of the
effect on earnings for items measured using unobservable data. SFAS No. 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, and interim periods within those fiscal years. The Company is
currently evaluating the impact of this statement on its financial statements
and expects to adopt SFAS No.157 during the quarter ending July 31,
2008.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-13</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES </u>(CONTINUED)</b></font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u> (Continued)</b></font><p>
<font size="2">In September 2006, the FASB issued SFAS No. 158, "Employers'
Accounting for Defined Benefit Pension and Other Postretirement Plans -- An
Amendment of FASB Statements No. 87, 88, 106, and 132R."  This standard requires
an employer to: (a) recognize in its statement of financial position an asset
for a plan's overfunded status or a liability for a plan's underfunded status;
(b) measure a plan's assets and its obligations that determine its funded status
as of the end of the employer's fiscal year (with limited exceptions); and (c)
recognize changes in the funded status of a defined benefit postretirement plan
in the year in which the changes occur. Those changes will be reported in
comprehensive income. The requirement to recognize the funded status of a
benefit plan and the disclosure requirements are effective as of the end of the
fiscal year ending after December 15, 2006. The requirement to measure plan
assets and benefit obligations as of the date of the employer's fiscal year-end
statement of financial position is effective for fiscal years ending after
December  15, 2008. The Company is evaluating the impact of this statement on
its financial statements. </font><p>
<font size="2">In February 2007, the FASB issued SFAS No. 159, "The Fair Value
Option for Financial Assets and Liabilities, including an amendment of FASB
Statement No. 115" ("SFAS No. 159"). SFAS No. 159 permits entities to choose, at
specified election dates, to measure many financial instruments and certain
other items at fair value that are not currently required to be measured at fair
value. Unrealized gains and losses shall be reported on items for which the fair
value option has been elected in earnings at each subsequent reporting date.
SFAS No. 159 is effective for fiscal years beginning after November 15, 2007.
Early adoption is permitted as of the beginning of a fiscal year that begins on
or before November 15, 2007, provided the entity also elects to apply the
provisions of SFAS No. 157 "Fair Value Measurements" ("SFAS No. 157"). The
Company is currently assessing the impact that SFAS No. 159 will have on its
financial statements.</font><p>
<font size="2"><b>NOTE 3-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>COMMITMENTS AND
CONTINGENCIES</u></b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Operating
leases</u></b></font><p>
<font size="2">The Company leases, as tenant, space under an operating lease,
which expires September 30, 2008.  The Company also leases, as tenant, space
under an operating lease which expires August 31, 2008.</font><p>
<font size="2">Rental expense during the year ended April 30, 2008 and 2007 was
$8,500 and $420, respectively.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-14</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 4-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER ACCRUED
EXPENSES</u></b></font><p>
<font size="2">This account represents accrued officer's payroll and related
payroll taxes.  This liability was paid in full in May 2008.</font><p>
<font size="2"><b>NOTE 5- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OFFICER LOANS
PAYABLE</u></b></font><p>
<font size="2">For the year ended April 30, 2007, the Company received working
capital advances from an officer of the Company which were repaid during the
year ended April 30, 2008 without interest.  </font><p>
<font size="2"><b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS' EQUITY
(DEFICIT)</u></b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Common
Stock</u> </b></font><p>
<font size="2">The Company has 50,000,000 shares authorized and 33,247,718
shares issued and outstanding at April 30, 2008.</font><p>
<font size="2">There were 5,623,060 shares of common stock issued during the
year ended April 30, 2008 and 10,800,000 in 2007.</font><p>
<font size="2">During the year ended April 30, 2008, the Company issued
1,623,060 shares of restricted stock for cash of $2,532,755.</font><p>
<font size="2">During the year ended April 30, 2007, the Company issued
9,500,000 shares of restricted stock for cash of $38,000.</font><p>
<font size="2">In October 2006, the Company issued 1,000,000 shares of common
stock, a five-year warrant to purchase up to 500,000 shares of common stock at
an exercise price of $0.15 per share, and a five-year warrant to purchase up to
500,000 shares of common stock at an exercise price of $0.25 per share in
exchange for the cancellation of all the 32,450 shares of preferred stock
outstanding and the waiver of all accrued and unpaid dividends on such shares
which totaled $350,460. </font><p>
<font size="2">On February 14, 2007 the Company acquired all of the patent
rights underlying a pending U.S. Patent Application. The purchase price for the
patent rights consisted of an aggregate of up 550,000 restricted shares of
common stock, of which 300,000 were issued to four individuals upon execution of
the acquisition agreement and 250,000 restricted shares are
</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-15</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS' DEFICIT
(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Common
Stock</u> (Continued) </b></font><p>
<font size="2">issuable upon the issuance of the patent based on the U.S. Patent
Application.</font><p>
<font size="2">On May 18, 2007, the Company entered into an Agreement and Plan
of Merger with Biomerk, Inc., a privately owned company, whereby the Company
issued 4,000,000 restricted shares of its common stock to acquire 100% of the
outstanding stock of Biomerk, Inc.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Preferred
Stock </u></b></font><p>
<font size="2">The Company has 56,075 shares of preferred stock authorized and 0
shares issued and outstanding at April 30, 2008. </font><p>
<font size="2">There were no issuances of preferred stock during the year ended
April 30, 2008.  The 32,450 shares as of July&nbsp;31, 2006 were cancelled in
October 2006.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock
Options</u></b></font><p>
<font size="2">On January 15, 2007, the Company entered into various agreements
with consultants to issue three hundred and forty thousand options, exercisable
over a five year period based on a fair value exercise price on the date of
issuance ($0.17) exercisable expiring through January 15, 2012 for services to
be rendered in one year. The options vest on January 15, 2008 and have been
valued at $44,184 using the Black-Scholes Model with an annualized volatility
rate of 100% and a bond interest rate of 4.43%. Amortization expense for
services rendered was $33,138 for the year ended April 30, 2008.  Amortization
expense for services rendered was $11,046 for the year ended April 30, 2007.  On
May 15, 2007, the Company entered into a consulting agreement to issue five
hundred thousand options, exercisable over a five-year period based on a fair
value exercise price on the date of issuance ($0.30) exercisable expiring
through May 15, 2012 for services to be rendered over three years.  The options
vest as follows:  166,665 upon the first anniversary of the grant date, 166,665
upon the second anniversary of the grant date and 16 6,670 upon the third
anniversary of the grant date and have been valued at $149,974 using the
Black-Scholes Model with an annualized volatility rate of 270% and a bond
interest rate of 4.35%.  Amortization expense for services rendered was $48,072
for the year ended April 30, 2008. On May 15, 2007, the Company entered into a
consulting agreement to issue twenty- five thousand options, exercisable over a
five-year period based on a fair value exercise price on the date of issuance
($0.30) exercisable expiring through May 15, 2012 for services to be rendered
over one year.  The options vest on May 15, 2008 and have been valued at $7,499
using the Black-Scholes Model with an annualized volatility rate of 270% and a
bond interest rate of 4.35%.  Amortization expense for services rendered was
$7,214 for the year ended April 30, 2008   On October 10, 2007, the Company
entered into a consulting agreement to issue five hundred thousand options,
exercisable over a five-year period based on a fair value exercise price on the
date of issuance ($0.75) exercisable expiring through October 10, 2012 for
services to be rendered over three years.  The options vest as follows:  166,665
upon the first anniversary of the grant date, 166,665 upon the second
anniversary of the grant date and 166,670 upon the third anniversary of the
grant date and have been valued at $336,287 using the Black-Scholes Model with
an annualized volatility rate of 141% and a bond interest rate of 4.38%.
Amortization expense for services rendered was $62,343 for the year ended April
30, 2008.  On March 27, 2008, the Company entered into a consulting agreement to
issue two hundred thousand options, exercisable over a five-year period based on
a fair value exercise price on the date of issuance ($1.05) exercisable expiring
through March 27, 2013 for services to be rendered over three years.  The
options vest as follows:  66,666 upon the first anniversary of the grant date,
66,666 upon the second anniversary of the grant date and 66,668 upon the third
anniversary of the grant date and have been valued at $209,494 using the
Black-Scholes Model with an annualized volatility rate of 270% and a bond
interest rate of 2.25%.  Amortization expense for services rendered was $6,314
for the year ended April 30, 2008.  On March 31, 2008, the Company entered into
consulting agreements to issue four hundred fifteen thousand options,
exercisable over a five-year period based on a fair value exercise price on the
date of issuance ($1.15) exercisable expiring through March 31, 2013 for
services to be rendered over three years.  The options vest as follows:  138,333
upon the first anniversary of the grant date, 138,333 upon the second
anniversary of the grant date and 138,334 upon the third anniversary of the
grant date and have been valued at $476,103 using the Black-Scholes Model with
an annualized volatility rate of 270% and a bond interest rate of 2.25%.
Amortization expense for services rendered was $13,046 for the year ended April
30, 2008.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Warrants</u></b></font><p>
<font size="2">As noted above, in October 2006, the Company issued 1,000,000
shares of common stock, a five-year warrant to purchase up to 500,000 shares of
common stock at an exercise price of $0.15 per share, and a five-year warrant to
purchase up to 500,000 shares of common stock at an exercise price of $0.25 per
share in exchange for the cancellation of all the 32,450 shares of preferred
stock outstanding and the waiver of all accrued and unpaid dividends on such
shares which totaled $350,460.  The warrants were valued using the
Black-Scholes pricing model  using the following assumptions: interest rate
4.43%, dividend yield 0%, volatility 100% and expected life of five years.
</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-16</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS' DEFICIT
(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Warrants</u>
(Continued)</b></font><p>
<font size="2">The Company has the following warrants outstanding for the
purchase of its common stock:</font></p>
<div style="position:relative; left: 30"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="134.666633" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Year Ended April 30,</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" >
<p>
<font size="2">Exercise Price</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">Expiration Date</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2008</font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">$0.15</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">January 15, 2012</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2">361,328</font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">$0.25</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">January 15, 2012</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2">469,184</font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="center">
<font size="2">830,512</font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="234.666608" colspan="3" rowspan="1" >
<p>
<font size="2">Weighted Average exercise price</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0.20</font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">As of April 30, 2008, 830,312 warrants are exercisable.</font><p>
<font size="2">There were 830,512 warrants outstanding for the year ended April
30, 2008.</font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Prepaid
Consulting</u></b></font><p>
<font size="2">Prepaid consulting represents options granted to consultants and
directors for services to be rendered in the future, to be amortized over the
life of the contract or according to the terms of the options
grant.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-17</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font><p>
<font size="2"><b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></font><p>
<font size="2">Deferred income taxes are determined using the liability method
for the temporary differences between the financial reporting basis and income
tax basis of the Company's assets and liabilities. Deferred income taxes are
measured based on the tax rates expected to be in effect when the temporary
differences are included in the Company's consolidated tax return. Deferred tax
assets and liabilities are recognized based on anticipated future tax
consequences attributable to differences between financial statement carrying
amounts of assets and liabilities and their respective tax bases.</font><p>
<font size="2">At April 30, 2008 and 2007, deferred tax assets consist of the
following:  </font></p>
<p>
</p>
<p>
</p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="202.666616" colspan="1" rowspan="1" >
<p>
<font size="2">  &nbsp;</font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="113.333305" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>2008</u></font></p align="center">
</td>
<td width="7.999998" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>2007</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="202.666616" colspan="1" rowspan="1" >
<p>
<font size="2">Deferred tax asset </font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="113.333305" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,473,991&nbsp;&nbsp;</font></p align="right">
</td>
<td width="7.999998" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,467,155&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="202.666616" colspan="1" rowspan="1" >
<p>
<font size="2">Less:  valuation allowance</font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="113.333305" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(2,473,991)&nbsp;</font></p align="right">
</td>
<td width="7.999998" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;</font></p align="right">
</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(2,467,155)&nbsp; </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="202.666616" colspan="1" rowspan="1" >
<p>
<font size="2">Net deferred tax asset</font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="113.333305" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-0-&nbsp;&nbsp;</font></p align="right">
</td>
<td width="7.999998" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="103.999974" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-0-&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">At April 30, 2008 and 2007, the Company had federal net operating
loss carryforwards in the approximate amounts of $7,068,547 and $7,104,245
available to offset future taxable income subject to Section 382 analysis
limitations The Company established valuation allowances equal to the full
amount of the deferred tax assets due to the uncertainty of the utilization of
the operating losses in future periods. </font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-18</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS (CONTINUED)</b></font><br><font size="2"><b>APRIL 30, 2008 AND
2007</b></font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">F-19</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><b>SIGNATURES</b></font></p>
<div style="position:relative; left: 60"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="550.666529" colspan="1" rowspan="1" >
<p>
<font size="2">In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="281.333263" colspan="2" rowspan="1" >
<p>
<font size="2">CHAMPIONS BIOTECHNOLOGY, INC.</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">/s/ Douglas D. Burkett</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D. Burkett</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">President and Principal Executive Officer</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 60"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="550.666529" colspan="1" rowspan="1" >
<p>
<font size="2">In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">/s/Durwood C. Settles</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood C. Settles</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Financial Officer</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">/s/ David Sidransky</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Chairman</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">/s/ James Martell</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Administrative Officer </font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Abba Poliakoff</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Director </font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Ana Stancic</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Director </font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="right">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="right">
<font size="2"><b><u>EXHIBIT 14</u></b></font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CODE OF BUSINESS CONDUCT AND
ETHICS</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Board of directors
of <b>Champions Biotechnology, Inc.</b> (with its subsidiaries, the
"<b>Company</b>") has adopted this Code of Business Conduct and Ethics
("<b>Code</b>") to:</font></p>
<ul>
<li>Promote honest and ethical conduct, including fair dealing and the ethical
handling of conflicts of interest;</li>
<li>Promote full, fair, accurate, timely and understandable disclosure;</li>
<li>Promote compliance with applicable laws and governmental rules and
regulations;</li>
<li>Ensure the protection of the Company's legitimate business interests,
including corporate opportunities, assets and confidential information; and</li>
<li>Deter wrongdoing.</li></ul><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All directors, officers
and employees of the Company are expected to be familiar with the Code and to
adhere to those principles and procedures set forth in the Code that apply to
them.  This Code is meant to address the general ethical requirements of
business conducted by the Company, but is not all-inclusive.  Particular areas
of conduct, such as harassment, confidential employee complaints, and other
conduct which affects the workplace are addressed separately in other Company
policies included in the Company's Employee Manual.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this
Code, the "Code of Ethics Contact Person" is Ana Stancic.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From time to time, the
Company may waive some provisions of this Code.  Any waiver of the Code for
executive officers or directors of the Company may be made only by the Board of
Directors and must be promptly disclosed as required by SEC or American Stock
Exchange rules.  Any waiver for other employees may be made only by the Code of
Ethics Contact Person.</font><p>
<font size="2"><b>I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;HONEST AND CANDID
CONDUCT</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director, officer
and employee owes a duty to the Company to act with integrity.  Integrity
requires, among other things, being honest and candid.  Deceit and subordination
of principle are inconsistent with integrity.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director, officer
and employee must:</font><ul>
<li>Act with integrity, including being honest and candid while still
maintaining the confidentiality of information where required or consistent with
the Company's policies.</li>
<li></li>
<li>Observe both the form and spirit of laws and governmental rules and
regulations, accounting standards and Company policies.</li>
<li></li>
<li>Adhere to a high standard of business ethics.</li></ul><p>
<p>
<font size="2"><b>II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONFLICTS OF
INTEREST</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A "conflict of
interest" occurs when an individual's private interest interferes or appears to
interfere with the interests of the Company.  A conflict of interest can arise
when a director, officer or employee takes actions or has interests that may
make it difficult to perform his or her Company work objectively and
effectively.  For example, a conflict of interest would arise if a director,
officer or employee, or a member of his or her family, receives improper
personal benefits as a result of his or her position in the Company.  Any
material transaction or relationship that could reasonably be expected to give
rise to a conflict of interest should be discussed with the Code of Ethics
Contact Person.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Service to the Company
should never be subordinated to personal gain and advantage.  Conflicts of
interest should, wherever possible be avoided.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In particular, clear
conflict of interest situations involving directors, executive officers and
other employees who occupy supervisory positions or who have discretionary
authority in dealing with any third party specified below may include the
following:</font></p>
<ul>
<li>Any significant ownership interest in any supplier or customer;</li>
<li>Any consulting or employment relationship with any customer, supplier or
competitor;</li>
<li>Any outside business activity that detracts from an individual's ability to
devote appropriate time and attention to his or her responsibilities with the
Company;</li>
<li>The receipt of non-nominal gifts or excessive entertainment from any company
with which the Company has current or prospective business dealings;</li>
<li>Being in the position of supervising, reviewing or having any influence on
the job evaluation, pay or benefit of any immediate family member; and</li>
<li>Selling anything to the Company or buying anything from the Company, except
on the same terms and conditions as comparable directors, officers or employees
are permitted to so purchase or sell.</li></ul><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Such situations, if
material, must always be approved in advance by the Code of Ethics Contact
Person.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anything that would
present a conflict for a director, officer or employee would likely also present
a conflict if it is related to a member of his or her family.</font><p>
<font size="2"><b>III.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DISCLOSURE</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director, officer
or employee involved in the Company's disclosure process, including the Chief
Executive Officer and the Chief Financial Officer (the "<b>Senior Financial
Officers</b>"), is required to be familiar with and comply with the Company's
disclosure controls and procedures and internal control over financial
reporting, to the extent relevant to his or her area of responsibility, so that
the Company's public reports and documents filed with the SEC comply in all
material respects with the applicable federal securities laws and SEC rules.  In
addition, each such person having direct or supervisory authority regarding
these SEC filings or the Company's other public communications concerning its
general business, results, financial condition and prospects should, to the
extent appropriate within his or her area of responsibility, consult with other
Company officers and employees and take other appropriate steps regarding these
disclosures with the goal of making full, fair, accurate, timely and
understandable disclosure.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director, officer
or employee who is involved in the Company's disclosure process, including
without limitation, the Senior Financial Officers, must:</font></p>
<ul>
<li>Familiarize himself or herself with the disclosure requirements applicable
to the Company as well as the business and financial operations of the
Company.</li>
<li>Not knowingly misrepresent, or cause others to misrepresent, facts about the
Company to others, whether within or outside the Company, including to the
Company's independent auditors, governmental regulators and self-regulatory
organizations.</li>
<li>Properly review and critically analyze proposed disclosure for accuracy and
completeness (or, where appropriate, delegate this task to others).</li></ul><p>
<p>
<font size="2"><b>IV.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMPLIANCE</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the Company's
policy to comply with all applicable laws, rules and regulations.  It is the
personal responsibility of each employee, officer and director to adhere to the
standards and restrictions imposed by those laws, rules and
regulations.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is against Company
policy and in many circumstances illegal for a director, officer or employee to
profit from undisclosed information relating to the Company or any other
company.  Any director, officer or employee may not purchase or sell any of the
Company's securities while in possession of material nonpublic information
relating to the Company.  Also, any director, officer or employee may not
purchase or sell securities of any other company while in possession of any
material nonpublic information relating to that company.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any director, officer
or employee who is uncertain about the legal rules involving a purchase or sale
of any Company securities or any securities in companies that he or she is
familiar with by virtue of his or her work for the Company, should consult with
the Company's Chief Operating Officer before making any such purchase or
sale.</font><p>
<font size="2"><b>V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPORTING AND
ACCOUNTABILITY</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee of
the Company's Board of Directors is responsible for applying this Code to
specific situations presented to it for review and has the authority to
interpret this Code in any particular situation.  Any director, officer or
employee who becomes aware of any existing or potential violation of this Code
is required to notify the Code of Ethics Contact Person promptly.  Failure to do
so is itself a violation of this Code.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any questions relating
to how this Code should be interpreted or applied should be addressed to the
Code of Ethics Contact Person.  A director, officer or employee who is unsure of
whether a situation violates this Code should discuss the situation with the
Code of Ethics Contact Person to prevent possible misunderstandings and
embarrassment at a later date.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each director, officer
or employee must:</font></p>
<ul>
<li>Notify the Code of Ethics Contact Person promptly of any existing or
potential violation of this Code.</li>
<li>Not retaliate against any other director, officer or employee for reports of
potential violations that are made in good faith.</li></ul><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit Committee
shall take all action they consider appropriate to investigate any violations
reported to them.  If a violation has occurred, the Company will take such
disciplinary or preventive action as it deems appropriate, after consultation
with the Audit Committee, in the case of a director or executive officer, or
after consultation with the President, in the case of any other
employee.</font><p>
<font size="2"><b>VI.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CORPORATE
OPPORTUNITIES</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors, officers and
employees owe a duty to the Company to advance the Company's business interests
when the opportunity to do so arises.  Directors', officers and employees are
prohibited from taking (or directing to a third party) a business opportunity
that is discovered through the use of corporate property, information or
position, unless the Company has already been offered the opportunity and turned
it down.  More generally, directors, officers and employees are prohibited from
using corporate property, information or position for personal gain and from
competing with the Company.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sometimes the line
between personal and Company benefits is difficult to draw, and sometimes there
are both personal and Company benefits in certain activities.  Directors,
officers and employees who intend to make use of Company property or services in
a manner not solely for the benefit of the Company should consult beforehand
with the Code of Ethics Contact Person.</font><p>
<font size="2"><b>VII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONFIDENTIALITY</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In carrying out the
Company's business, directors, officers and employees often learn confidential
or proprietary information about the Company, its customers, suppliers or joint
venture parties.  Directors, officers and employees must maintain the
confidentiality of all information so entrusted to them, except when disclosure
is authorized or legally mandated.  Confidential or proprietary information of
the Company, and of other companies, includes any non-public information that
would be harmful to the relevant company or useful or helpful to competitors if
disclosed.</font><p>
<font size="2"><b>VIII.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FAIR DEALING</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have a history of
succeeding through honest business competition.  We do not seek competitive
advantages through illegal or unethical business practices.  Each director,
officer and employee should endeavor to deal fairly with the Company's service
providers, suppliers, competitors and employees.  No director, officer or
employee should take unfair advantage of anyone through manipulation,
concealment, abuse of privileged information, misrepresentation of material
facts, or any unfair dealing practice.</font><p>
<font size="2"><b>IX.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROTECTION AND PROPER USE OF
COMPANY ASSETS</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All directors, officers
and employees should protect the Company's assets and ensure their efficient
use.  All Company assets should be used only for legitimate business
purposes.</font></p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="right">
<font size="2"><b>EXHIBIT 21</b></font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<b>SUBSIDIARIES OF CHAMPIONS BIOTECHNOLOGY, INC.</b></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="198.666617" colspan="1" rowspan="1" >
<p align="center">
<u>Name</u></p align="center">
</td>
<td width="219.999945" colspan="1" rowspan="1" >
<p align="center">
<u>Incorporated in</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="198.666617" colspan="1" rowspan="1" >
<p align="center">
Biomerk, Inc.</p align="center">
</td>
<td width="219.999945" colspan="1" rowspan="1" >
<p align="center">
Maryland</p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="right">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="right">
<font size="2"><b><u>EXHIBIT 31.1</u></b></font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CERTIFICATION OF CHIEF EXECUTIVE
OFFICER</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Section 302 Certification</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, DOUGLAS D. BURKETT,
certify that:</font><p>
<font size="2">&nbsp;</font></p>
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">1.</font></p>
</td>
<td width="598.666517" colspan="2" rowspan="1" >
<p>
<font size="2">  I have reviewed this Annual Report on Form 10-KSB of CHAMPIONS
BIOTECHNOLOGY, INC., a Delaware corporation;</font></p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="598.666517" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">2.</font></p>
</td>
<td width="598.666517" colspan="2" rowspan="1" >
<p>
<font size="2">  Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;</font></p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="598.666517" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">3.</font></p>
</td>
<td width="598.666517" colspan="2" rowspan="1" >
<p>
<font size="2">  Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
Registrant as of, and for, the periods presented in this report;</font></p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="598.666517" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">4.</font></p>
</td>
<td width="598.666517" colspan="2" rowspan="1" >
<p>
<font size="2">  The Registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the Registrant and have:</font></p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="598.666517" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="2" rowspan="1" >
<p align="center">
<font size="2">(a)</font></p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
<p>
<font size="2">Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being
prepared;</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="2" rowspan="1" >
<p align="center">
<font size="2">(b)</font></p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
<p>
<font size="2">Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principals;</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="2" rowspan="1" >
<p align="center">
<font size="2">(c)</font></p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
<p>
<font size="2">Evaluated the effectiveness of the Registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="2" rowspan="1" >
<p align="center">
<font size="2">(d)</font></p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
<p>
<font size="2">Disclosed in this report any change in the Registrant's internal
control over financial reporting that occurred during the Registrant's most
recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial reporting;
and</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<font size="2">5.</font></p>
</td>
<td width="598.666517" colspan="2" rowspan="1" >
<p>
<font size="2">  The Registrant's other certifying officer and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the Registrant's auditors and the audit committee of Registrant's
board of directors (or persons performing the equivalent function):</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="2" rowspan="1" >
<p align="center">
<font size="2">(a)</font></p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
<p>
<font size="2">All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the Registrant's ability to record,
process, summarize and report financial information; and</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="2" rowspan="1" >
<p align="center">
<font size="2">(b)</font></p align="center">
</td>
<td width="563.999859" colspan="1" rowspan="1" >
<p>
<font size="2">Any fraud, whether or not material, that involves management or
other employees who have a significant role in the Registrant's internal control
over financial reporting</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">.</font></p>
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="350.666579" colspan="1" rowspan="1" >
<p>
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Douglas D.
Burkett                                        &nbsp;</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="350.666579" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D. Burkett</font></p>
</td>
</tr>
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="350.666579" colspan="1" rowspan="1" >
<p>
<font size="2">Principal Executive Officer</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="right">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="right">
<font size="2"><b><u>EXHIBIT 31.2</u></b></font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CERTIFICATION OF CHIEF FINANCIAL
OFFICER</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Section 302 Certification</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, DURWOOD C. SETTLES,
certify that: </font><p>
<font size="2">&nbsp;</font></p>
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">1.</font></p>
</td>
<td width="599.999850" colspan="2" rowspan="1" >
<p>
<font size="2">  I have reviewed this Annual Report on Form 10-KSB of CHAMPIONS
BIOTECHNOLOGY, INC., a Delaware corporation;</font></p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="599.999850" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">2.</font></p>
</td>
<td width="599.999850" colspan="2" rowspan="1" >
<p>
<font size="2">  Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;</font></p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="599.999850" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">3.</font></p>
</td>
<td width="599.999850" colspan="2" rowspan="1" >
<p>
<font size="2">  Based on my knowledge, the financial statements, and other
financial information included in this report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
Registrant as of, and for, the periods presented in this report;</font></p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="599.999850" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">4.</font></p>
</td>
<td width="599.999850" colspan="2" rowspan="1" >
<p>
<font size="2">  The Registrant's other certifying officer and I are responsible
for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f))
for the Registrant and have:</font></p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="599.999850" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(a)&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the Registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
</font></p>
</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="577.333189" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(b)&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Designed such internal control over financial reporting, or
caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principals;</font></p>
</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="577.333189" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(c)&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Evaluated the effectiveness of the Registrant's disclosure
controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the
period covered by this report based on such evaluation; and</font></p>
</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="577.333189" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(d)&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Disclosed in this report any change in the Registrant's internal
control over financial reporting that occurred during the Registrant's most
recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an
annual report) that has materially affected, or is reasonably likely to
materially affect, the Registrant's internal control over financial reporting;
and</font></p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="599.999850" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">5.</font></p>
</td>
<td width="599.999850" colspan="2" rowspan="1" >
<p>
<font size="2">  The Registrant's other certifying officer and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the Registrant's auditors and the audit committee of Registrant's
board of directors (or persons performing the equivalent function):</font></p>
</td>
</tr>
<tr valign="top">
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="599.999850" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(a)&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">All significant deficiencies and material weaknesses in the
design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the Registrant's ability to record,
process, summarize and report financial information; and</font></p>
</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="577.333189" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="59.999985" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(b)&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="577.333189" colspan="1" rowspan="1" >
<p>
<font size="2">Any fraud, whether or not material, that involves management or
other employees who have a significant role in the Registrant's internal control
over financial reporting.</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="259.999935" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Durwood C.
Settles                                                    </u></font></p>
</td>
</tr>
<tr valign="top">
<td width="259.999935" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood C. Settles</font></p>
</td>
</tr>
<tr valign="top">
<td width="259.999935" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Financial Officer</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p align="right">
<font size="2"><b><u>EXHIBIT 32.1</u></b></font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CERTIFICATION PURSUANT TO 18 U.S.C.  SECTION 1350 AS ADOPTED
PURSUANT TO</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>SECTION 906 OF THE SARBANES-OXLEY ACT OF
2002</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<font size="2"><b>.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the
annual report of Champions Biotechnology, Inc. (the "Company") on Form 10-KSB
for the year ended April 30, 2008 as filed with the Securities and Exchange
Commission on the date hereof (the  "Report"), each of the  undersigned,  in the
capacities  and on the  dates  indicated below,  hereby  certifies  pursuant to
18 U.S.C.  Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that to their knowledge:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully
complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934; and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information
contained in the Report fairly presents, in all material respects, the financial
condition and results of operation of the Company.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
<p>
<font size="2">Date: July 29, 2008</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="253.333270" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="253.333270" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="253.333270" colspan="1" rowspan="1" >
<p>
<font size="2">/s/ Douglas D. Burkett</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="253.333270" colspan="1" rowspan="1" >
<p>
<font size="2">Douglas D. Burkett</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="253.333270" colspan="1" rowspan="1" >
<p>
<font size="2">Principal Executive Officer</font><p>
<font size="2">/s/Durwood C. Settles</font><p>
<font size="2">Durwood C. Settles</font><p>
<font size="2">Chief Financial Officer</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="286.666595" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="253.333270" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="733.333150" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>2
<FILENAME>burkett_agreement.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<html>
<head><meta content="text/html; charset=">
<meta name="description" content="C 634">
<meta name="keywords" content="AGT - Agreement">
<title>EMPLOYMENT AGREEMENT</title>
</head>

<body >
<ul>
</ul>

<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<a name="_DV_M0"></a><font size="2">EMPLOYMENT
AGREEMENT</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<a name="_DV_M1"></a><font size="2">    &nbsp;THIS EMPLOYMENT AGREEMENT
("Agreement") made this March 27, 2008, by and between D. Douglas
</font><a name="_DV_C5"></a><font size="2">Burkett</font><a name="_DV_M2"></a><font size="2">,
PhD. (the "Executive") whose present address is 3421 S. Camellia Place,
Chandler, AZ 85248, and Champions Biotechnology, Inc. (the "Company") whose
principal office is 2200 Wilson Boulevard, Arlington, VA.</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center">
<a name="_DV_M3"></a><font size="2">EXPLANATORY
STATEMENT</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;The Company desires to employ Executive as an employee
of the Company, and Executive desires to accept such employment, upon the terms
and conditions herein provided.</font></p>
</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<a name="_DV_M5"></a><font size="2">    &nbsp;NOW, THEREFORE, the parties agree
as follows:</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<a name="_DV_M6"></a><font size="2">1.&nbsp;</font></p>
</td>
<td width="605.333182" colspan="2" rowspan="1" >
<p>
<font size="2"><u>Duties and Status</u>.</font></p>
</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="605.333182" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="49.333321" colspan="1" rowspan="1" >
<p>
<a name="_DV_M7"></a><font size="2">1.1&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<font size="2"><u>Employment</u>.  The Company hereby engages Executive as a
full time employee of the Company to serve as the President of the Company, and
Executive hereby accepts such employment, upon the terms and conditions
hereinafter set forth</font><a name="_DV_C6"></a><font size="2">.  The Company
agrees that, in his position as President of the Company, Executive shall be,
and shall remain at all times during the Term of this Agreement, the highest
ranking executive officer of the
Company</font><a name="_DV_M8"></a><font size="2">.</font></p>
</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="605.333182" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="49.333321" colspan="1" rowspan="1" >
<p>
<a name="_DV_M9"></a><font size="2">1.2&nbsp;&nbsp;</font></p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<font size="2"><u>Duties</u>.  During the term of this Agreement, Executive
shall devote his full time employment and best efforts to serving as an employee
of the Company.  Executive agrees to faithfully and competently perform all of
his duties under this Agreement to the best of his abilities.  Executive will
report to and shall, at all times, be subject to the direction and control of
the Board of Directors of the Company.  Executive shall satisfactorily carry out
the duties assigned to him and report to such persons as directed.  Executive
will not take any action which may interfere with, or may adversely affect the
business, properties or prospects of the Company or any of its affiliates, or
the performance of his duties hereunder in any way.</font></p>
</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="605.333182" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<font size="2">2.&nbsp;</font></p>
</td>
<td width="605.333182" colspan="2" rowspan="1" >
<p>
<a name="_DV_M10"></a><font size="2"><u>Term</u></font><font size="2">.  The
term of this Agreement shall commence on March 27, 2008 (the "Effective Date")
and shall continue until the close of business on the day immediately preceding
the second anniversary of the date of the Effective Date (the "Original Term").
This Agreement will automatically be renewed at the expiration of the Original
Term for successive one year periods (each one year period a "Renewal Term")
unless notice of non-renewal is given by the Company or Executive at least 60
days prior to the expiration of the Original Term or any Renewal Term or unless
this Agreement is otherwise terminated as provided herein (the Original Term and
each Renewal Term are collectively referred to as the  "Term").  </font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<a name="_DV_M11"></a><font size="2">3.&nbsp;</font></p>
</td>
<td width="597.333184" colspan="2" rowspan="1" >
<p>
<font size="2"><u>Compensation and General Benefits</u>.</font></p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="597.333184" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
<p>
<a name="_DV_M12"></a><font size="2">3.1.&nbsp;&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="553.333195" colspan="1" rowspan="1" >
<p>
<font size="2"><u>Salary</u>.  As compensation for Executive's services
hereunder, Executive shall be provided a salary at the rate of
$</font><a name="_DV_C8"></a><font size="2">225,000</font><a name="_DV_M13"></a><font size="2">
per annum.  The salary shall be payable in installments no less frequent than
bi-weekly, less any and all deductions and amounts required to be withheld in
respect of any federal, state and local taxes and other charges and assessments.
Such salary shall be subject to annual review.</font></p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="597.333184" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<a name="_DV_M14"></a>3.2.&nbsp;&nbsp;</p>
</td>
<td width="553.333195" colspan="1" rowspan="1" >
<p>
<u>Bonus Plan</u>.  Executive shall be eligible to participate in any bonus
and/or incentive compensation plan that the Company may from time to time
implement for the benefit of its full-time management employees.</p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="597.333184" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<a name="_DV_M15"></a>3.3.&nbsp;&nbsp;</p>
</td>
<td width="553.333195" colspan="1" rowspan="1" >
<p>
<u>Executive Benefit Programs</u>.  Executive shall be permitted to participate
in all employee benefit programs implemented by the Company for the benefit of
any of its full-time employees, including, without limitation, retirement plans,
disability insurance, group and other life insurance, sickness, and accident and
health insurance programs, provided that Executive qualifies or is otherwise
eligible to participate under the terms of such programs.  </p>
</td>
</tr>
<tr valign="top">
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<a name="_DV_M16"></a>&nbsp;3.4.&nbsp;&nbsp;</p>
</td>
<td width="553.333195" colspan="1" rowspan="1" >
<p>
<u>Vacation and Sick Leave</u>.  Executive shall be entitled to vacation, leave
of absence, and leave for illness or temporary disability in accordance with the
policies of the Company from time to time in effect, but in no case will the
vacation allotment be less than 15 working days per annum.</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<a name="_DV_C9"></a><a name="_DV_C10"></a><font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">3.5.&nbsp;&nbsp;</font></p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<font size="2"><u>Stock Options</u>.  On October 10, 2007 (the "Grant Date"),
the Company awarded Employee (who, as of the Grant Date, was engaged by the
Company as a consultant) the option to acquire 500,000 shares of the Company's
stock at the per share exercise price of $0.75 (the "Options"), which
represented the fair market value of the Company's common stock as of the Grant
Date.  The Company herein reaffirms its prior grant of the Options to Employee,
which shall vest as follows: (i) 166,665 Options shall vest upon the first
anniversary of the Grant Date; (ii) 166,665 Options shall vest upon the second
anniversary of the Grant Date; and (iii) 166,670 Options shall vest upon the
third anniversary of the Grant Date.  All vested Options held by Executive shall
be exercisable over a five-year period expiring on the fifth anniversary of the
Grant Date (which is October 10, 2012) (the "Exercise Period"); provided,
however, that the </font>option will terminate upon a material breach by the
Executive of this Agreement, and will expire and terminate upon any termination
of this Agreement or the Executive's employment, except as otherwise expressly
provided in Section 5 of this Agreement<font size="2">.    </font></p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="603.999849" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M17"></a>4.&nbsp;</p>
</td>
<td width="603.999849" colspan="2" rowspan="1" >
<p>
<u>Executive's Representations and Warranties</u>.&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="603.999849" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M18"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
4.1.&nbsp;&nbsp;</p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
&nbsp;<u>No Prior Agreements</u>.  Executive represents and warrants that he is
not a party to or otherwise subject to or bound by the terms of any contract,
agreement or understanding which in any manner would limit or otherwise affect
his ability to perform his obligations hereunder, including without limitation
any contract, agreement or understanding containing terms and provisions similar
in any manner to those contained in the Company's Business Protection Agreement.
</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="603.999849" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M19"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
4.2.&nbsp;&nbsp;</p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<u>Confidential Information of Others</u>.  Executive represents, warrants and
covenants he will not disclose to the Company or otherwise use, in the course of
his employment with the Company, any confidential information which he is
restricted from disclosing or using pursuant to any other agreement or duty to
any other person. </p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="603.999849" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M20"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
4.3.&nbsp;&nbsp;</p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<u>Non-Competition Covenants</u>.   Executive represents and warrants to the
Company that he is not bound by any non-competition or non-solicitation
agreement or similar restriction which would prohibit him from accepting
employment with the Company or performing any duties on behalf of the Company.
</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="603.999849" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M21"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
4.4.&nbsp;&nbsp;</p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<u>Return of Company Property</u>.  Executive agrees that upon termination of
employment he will promptly return to the Company all Confidential Information,
all Intellectual Property of the Company and all other property of the Company,
including all correspondence, manuals, notebooks, lists of customers and
suppliers, prototypes, computer programs, disks and any documents, materials or
property, whether written or stored on computerized medium, and all copies in
Executive's possession or control, he shall not shall not take any action to
preserve or regain access to such information through any means, including but
not limited to access to the Company's facilities or through a computer or other
digital or electronic means, and shall promptly pay all amounts due, owing or
otherwise payable by Executive to the Company.  Executive expressly authorizes
the Company to withhold any amounts payable to him, including for wages,
compensation, reimbursement and otherwise, until he has complied with this
Section.</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="603.999849" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M22"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
4.5.&nbsp;&nbsp;</p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<u>Business Protection Agreement</u>.  Executive acknowledges that this
Agreement is contingent upon Executive's acceptance of and agreement to be bound
by all of the terms and provisions of the Company's Business Protection
Agreement ("BPA"), a copy of which has been delivered to Executive.
Accordingly, Executive covenants and agrees to be bound and abide by all terms
and provisions of the BPA, regardless of whether such agreement is ever signed
or delivered by Executive.  </p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M24"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
4.6.&nbsp;&nbsp;</p>
</td>
<td width="555.999861" colspan="1" rowspan="1" >
<p>
<u>Company's Remedies for Breach</u>.  Executive acknowledges that, as the
violation by Executive of the provisions of Section 4 would cause irreparable
injury to the Company, and there is no adequate remedy at law for such
violation, the Company shall have the right in addition to any other remedies
available, at law or in equity, to seek to enjoin Executive in a court of equity
from violating such provisions.  Executive hereby waives any and all defenses he
may have on the ground of lack of jurisdiction or competence of the court to
grant such an injunction or other equitable relief.</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<a name="_DV_M25"></a><font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
<p>
5.&nbsp;</p>
</td>
<td width="602.666516" colspan="3" rowspan="1" >
<p>
<u>Termination</u>.      </p>
</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
<p>
<a name="_DV_M26"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
5.1.&nbsp;&nbsp;</p>
</td>
<td width="555.999861" colspan="2" rowspan="1" >
<p>
<u>Termination Upon Expiration, Death, Incapacitation or Disability</u>.  This
Agreement and Executive's employment shall expire and terminate upon the
expiration of the Term hereof.  This Agreement and Executive's employment shall
terminate upon the death of Executive and may be terminated by the Company at
any time upon the disability of Executive upon notice from the Company.   For
purposes of this Agreement, "disability" shall mean any illness or incapacity
which renders the Executive unable or incapable, in the judgment of the
Company's Board of Directors, of performing his duties hereunder in a manner
satisfactory to the Board of Directors for a period of 90 days in any 12 month
period.  In the event Executive's death, incapacity or disability, the Company
shall pay to Executive or his estate or heirs, as the case may be, his then
current salary and benefits payable to him under Section 3 hereof and provide to
the Executive the benefits that he had been receiving pursuant to Section 3.3
hereof through the remainder of the then-current term of this Agreement, and
<font size="2">all Options granted to Executive by the Company on the Grant Date
shall immediately vest, and those vested Options shall become and remain
exercisable by Executive or Executive's estate, as the case may be, through and
until the expiration of the Exercise Period, </font>subject to Executive's
compliance with his obligations under Section 4 (which for all purposes of this
Agreement includes the obligation to comply with the BPA) and provided that
Executive or his estate or heirs, as the case may be, executes a release and
agreement satisfactory to the Company pursuant to which he agrees not to make
any claims, whether at law or in equity, against the
Company.<a name="_DV_C11"></a><font size="2">  </font></p>
</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
<p>
<a name="_DV_M27"></a><a name="_DV_M28"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
5.2.&nbsp;</p>
</td>
<td width="555.999861" colspan="2" rowspan="1" >
<p>
<u>Termination by the Company</u>.&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
<p>
<a name="_DV_M29"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.1.&nbsp;&nbsp;</p>
</td>
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<u>Termination by the Company Without Cause</u>.  The Company may terminate
Executive's employment without cause, upon 30 days written notice to Executive.
In such event, the Company shall pay to Executive his then current salary and
provide to the Executive the benefits that he had been receiving pursuant to
Section 3.3 hereof for four months following such termination, and
<font size="2">all Options granted to Executive by the Company on the Grant Date
shall immediately vest, and those vested Options shall become and remain
exercisable by Executive through and until the expiration of the Exercise
Period, </font>subject to Executive's compliance with his obligations under
Section 4 hereof and provided that Executive executes a release agreement
satisfactory to the Company pursuant to which he agrees, among other things,
<a name="_DV_M30"></a><a name="OLE_LINK1"></a><a name="OLE_LINK2"></a><a name="_DV_M31"></a>not
to make any claims, whether at law or in equity, against the
Company.<a name="_DV_C12"></a><font size="2">  </font></p>
</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="34.666658" colspan="1" rowspan="1" >
<p>
<a name="_DV_M32"></a>&nbsp;</p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.2.&nbsp;&nbsp;</p>
</td>
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<u>Termination by the Company for Cause</u>.  The Company may terminate
Executive's employment for Cause (as hereinafter defined). In such event, the
Company shall have no obligation to make any payments to Executive except,
subject to Executive's compliance with his obligations under Section 4 hereof,
for any portion of his salary through the date of such termination, provided
that Executive executes a release agreement satisfactory to the Company pursuant
to which he agrees, among other things, not to make any claims, whether at law
or in equity, against the Company. The term "Cause"
means<a name="_DV_C13"></a><font size="2">: (i)</font><a name="_DV_M33"></a> an
action or failure to act by Executive constituting fraud, misappropriation or
damage to the property or business of the Company;
<a name="_DV_C14"></a><font size="2">(ii) </font><a name="_DV_M34"></a>the
commission of an act of<a name="_DV_C15"></a><font size="2">
material</font><a name="_DV_M35"></a> dishonesty,
<a name="_DV_C17"></a><font size="2">conviction of or plea of
</font><font size="2"><i>nolo contendere </i>to</font><a name="_DV_M36"></a> a
crime, or causing the Company to commit a crime;
<a name="_DV_C18"></a><font size="2">(iii) </font><a name="_DV_M37"></a>the
<a name="_DV_C19"></a><font size="2">intentional
</font><a name="_DV_M38"></a>failure by Executive to comply
<a name="_DV_C21"></a><font size="2">with reasonable directives provided to him
by the Company's</font> Board of Directors, or the Executive's material failure
to <font size="2">comply with</font> his responsibilities
or<a name="_DV_M39"></a><a name="_DV_M40"></a><a name="_DV_C23"></a><font size="2">
</font><a name="_DV_M41"></a>perform his duties hereunder;
<a name="_DV_M42"></a><a name="_DV_C26"></a><font size="2">(iv)
</font><a name="_DV_M43"></a>Executive's<a name="_DV_C27"></a><font size="2">
material</font><a name="_DV_M44"></a> breach of any of his obligations under
this Agreement or any of the policies of the Company;
<a name="_DV_C29"></a><font size="2">or (v)</font><a name="_DV_M45"></a> the
unauthorized use, misappropriation or disclosure by Executive of any
Confidential Information of the Company or of any other party to whom Executive
owes an obligation of nondisclosure as a result of his relationship with the
Company<a name="_DV_C30"></a><font size="2">, provided, however, that with
respect to (iii) and (iv) above, Executive will be provided written notice of
any failures, and/or breach constituting "Cause" and given reasonable
opportunity (not to exceed 30 days) to cure the misconduct and/or
breach</font><a name="_DV_M46"></a>. </p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:double">
<a name="_DV_M48"></a><font size="2">&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.3.&nbsp;&nbsp;</p>
</td>
<td width="517.333204" colspan="1" rowspan="1" >
<p>
<u>Termination by Executive for Good Reason</u>.  Executive may, at any time
during the Term, terminate his employment and this Agreement for "Good Reason,"
upon written notice given to the Company by Executive identifying with
specificity the cause for which he is terminating the Agreement, provided,
however, the Company shall have been given at least 30 days to cure the matter
that constitutes or gives rise to such "Good Reason" and such matter shall not
have been cured or eliminated by the Company.  For the purposes hereof, "Good
Reason" means, in the absence of any "Cause" as defined above: (i) the material
diminution of Executive's duties, authority or responsibilities without
<a name="_DV_M49"></a><a name="OLE_LINK5"></a><a name="OLE_LINK6"></a>Executive's
prior written consent; (ii)
<a name="_DV_M50"></a><a name="_DV_C31"></a><font size="2">any change in
Executive's position in the Company placing him below the position of highest
ranking executive officer of the Company; (iii) </font><a name="_DV_M51"></a>the
reduction by the Company in Executive's annual base salary as in effect on the
date hereof or as the same may be increased from time to time;
(<a name="_DV_M52"></a><a name="_DV_C34"></a><font size="2">iv</font><a name="_DV_M53"></a>)
the material breach by the Company of its obligations under this
Agreement<a name="_DV_C35"></a><font size="2">; or (v) a relocation by the
Company of Executive's principal work site to a facility or location located a
significant distance outside the greater Phoenix, Arizona metropolitan
area</font><a name="_DV_M54"></a>.  In the event of such termination, the
Company shall pay Executive his then current salary and provide to the Executive
the benefits that he had been receiving pursuant to Section 3.3 hereof for four
months following such termination, and <font size="2">all Options granted to
Executive by the Company on the Grant Date shall immediately vest, and those
vested Options shall become and remain exercisable by Executive through and
until the expiration of the Exercise Period</font>, subject to Executive's
compliance with his obligations under Section 4 hereof and provided that
Executive executes a release agreement satisfactory to the Company pursuant to
which he agrees, among other things, not to make any claims, whether at law or
in equity, against the Company.<font size="2">  </font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<a name="_DV_C36"></a><a name="_DV_M55"></a>&nbsp;</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.4.&nbsp;&nbsp;</p>
</td>
<td width="517.333204" colspan="1" rowspan="1" >
<p>
<u>Termination by Executive Without Good Reason</u>.  In the event Executive
terminates his employment without Good Reason, the Company shall have no
obligation to make any payments to Executive except, subject to Executive's
compliance with his obligations under Section 4 hereof, for any portion of his
salary through the date of such termination, provided that Executive executes a
release agreement satisfactory to the Company pursuant to which he agrees, among
other things, not to make any claims, whether at law or in equity, against the
Company.  </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="43.999989" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="567.999858" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<a name="_DV_M56"></a>&nbsp;</p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
5.3&nbsp;&nbsp;</p>
</td>
<td width="567.999858" colspan="2" rowspan="1" >
<p>
<u>No Other Obligation</u>.  Upon the termination of Executive's employment for
any reason, the Company shall have no further obligation to Executive whatsoever
except as expressly stated in this Section.<p>
&nbsp;</p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M57"></a>6.&nbsp;</p>
</td>
<td width="602.666516" colspan="2" rowspan="1" >
<p>
<u>Miscellaneous</u>.&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M58"></a>&nbsp;</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p>
6.1.&nbsp;&nbsp;</p>
</td>
<td width="562.666526" colspan="1" rowspan="1" >
<p>
<u>Entire Agreement</u>.  The Company has made no representations other than as
set forth herein.
<a name="_DV_M59"></a><a name="OLE_LINK7"></a><a name="OLE_LINK8"></a>No
modification or amendment of this Agreement, nor waiver of any of its
provisions, shall be valid or enforceable unless in writing and signed by all
parties.</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M60"></a><a name="_DV_M61"></a>&nbsp;</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p>
6.2.&nbsp;&nbsp;</p>
</td>
<td width="562.666526" colspan="1" rowspan="1" >
<p>
<u>Benefit</u>.  This Agreement shall be binding upon and inure to the benefit
of the Company, its successors and assigns.  This Agreement shall be binding
upon Executive and his heirs, personal and legal representatives, and guardians,
and shall inure to the benefit of Executive.  This Agreement may not be assigned
by Executive in whole or in part.</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M62"></a>&nbsp;</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p>
6.3.&nbsp;&nbsp;</p>
</td>
<td width="562.666526" colspan="1" rowspan="1" >
<p>
<u>Separability</u>.  The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and the Agreement
shall be construed in all respects as though such invalid or unenforceable
provisions were omitted.</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M63"></a>&nbsp;</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p>
6.4.&nbsp;&nbsp;</p>
</td>
<td width="562.666526" colspan="1" rowspan="1" >
<p>
<u>Notices</u>.  Any notice required to be given pursuant to this Agreement
shall be in writing and delivered in person, or sent by certified mail, return
receipt requested, if to the Company, at its principal office and if to
Executive, at his residence address as contained in the records of the
Company.</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M64"></a>&nbsp;</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p>
6.5.&nbsp;&nbsp;</p>
</td>
<td width="562.666526" colspan="1" rowspan="1" >
<p>
<u>Governing Law; Waiver of Jury Trial; Jurisdiction</u>.  This Agreement has
been made in and shall be governed by and construed in accordance with the laws
of the State of Maryland, without regard to any conflicts of laws principles
which would apply the law of another jurisdiction.  The parties hereby waive
trial by jury in any action arising under this Agreement.  Any action arising
under this Agreement shall be brought in and shall be subject to the exclusive
jurisdiction and venue of the state or federal courts located in Maryland,
except where injunctive relief is sought in any other jurisdiction in connection
with the enforcement of this Agreement.  </p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M65"></a>&nbsp;</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p>
6.6.&nbsp;&nbsp;</p>
</td>
<td width="562.666526" colspan="1" rowspan="1" >
<p>
<u>Waiver</u>.  The failure of any party to fully enforce any provision hereof
shall not be deemed to be a waiver of such provision or any part thereof, and
the waiver by any party of any provision hereof shall not be deemed to be a
waiver of any other provision hereof or a waiver with respect to any other
incidence of non-compliance therewith.  No waiver shall be effective unless in
writing and signed by the party so waiving.</p>
</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="602.666516" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="33.333325" colspan="1" rowspan="1" >
<p>
<a name="_DV_M66"></a>&nbsp;</p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p>
6.7.&nbsp;&nbsp;</p>
</td>
<td width="562.666526" colspan="1" rowspan="1" >
<p>
<u>Survival</u>.  The provisions of Section 4 hereof shall survive the
termination of this Agreement and Executive's employment hereunder.</p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<a name="_DV_M67"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS
WHEREOF, the parties have executed this Agreement under seal, with the intent
that this be a sealed instrument, on the day and year first above
written.</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
<p>
<a name="_DV_M68"></a><font size="2">ATTEST/WITNESS:</font></p>
</td>
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<font size="2">COMPANY:</font></p>
</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="389.333236" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="389.333236" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
<p>
<a name="_DV_M69"></a><font size="2">_________________________</font></p>
</td>
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<font size="2">By:________________________________(SEAL)</font></p>
</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<a name="_DV_M70"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="389.333236" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<a name="_DV_M71"></a><font size="2">EXECUTIVE:</font></p>
</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="389.333236" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="389.333236" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="246.666605" colspan="1" rowspan="1" >
<p>
<a name="_DV_M72"></a><font size="2">_________________________</font></p>
</td>
<td width="389.333236" colspan="1" rowspan="1" >
<p>
<font size="2">___________________________________(SEAL)</font></p>
</td>
</tr>
</table></div>
<p>
</p>


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>3
<FILENAME>exhibit103.htm
<DESCRIPTION>EXHIBIT 10.2
<TEXT>
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<title>CHAMPIONS BIOTECHNOLOGY, INC</title>
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<b>Champions Biotechnology, Inc.</b></p align="center">
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<b>2200 Wilson Boulevard</b></p align="center">
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<b>Suite 102-316</b></p align="center">
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<b>Arlington, VA</b></p align="center">
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&nbsp;</td>
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<font size="2">March 26, 2008</font></p align="center">
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<br><br><font size="2"><u>PERSONALLY DELIVERED</u></font><br><br><font size="2">Mr. Durwood Settles, CPA</font><br><br><font size="2">Dear Mr. Settles:</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions Biotechnology, Inc. (the "Company") offers to employ you upon the terms herein provided.  During the period that this Agreement is in effect:</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;<u>Employment</u>.  You agree to serve as a full time employee of the Company at the will of the President and the Board of Directors as the Principal Financial and Accounting Officer of the Company upon the terms and conditions set forth below.  </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;<u>Duties</u>.  You will devote your full time and best efforts to serving faithfully and competently performing all of your duties under this Agreement.  You will report to the President or to such other persons as the President 
directs, shall at all times be subject to the direction and control of the President, and shall satisfactorily carry out the duties assigned to you by such persons.  You will not take any action which may interfere with, or may adversely affect the business, properties or prospects of the Company or any of its affiliates, or the performance of your duties hereunder in any way.  </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;<u>Compensation</u>.  As compensation for your services hereunder, you will receive a salary at the rate of $100,000 per annum.  The salary shall be payable in installments no less frequent than monthly, less any and all deductions and amounts required to be withheld in respect of any federal, state and local taxes and other charges and assessments.  Such salary shall be subject to annual review. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;<u>Benefits</u>.  You will be eligible to participate in any bonus and
/or incentive compensation plan that the Company may from time to time implement for the benefit of its full-time management employees, and permitted to participate in all employee benefit programs implemented by the Company for the benefit of any of its full-time employees, including, without limitation, retirement plans, disability insurance, group and other life insurance, sickness, and accident and health insurance programs, provided that Executive qualifies or is otherwise eligible to participate under the terms of such programs.  You will be entitled to vacation, leave of absence, and leave for illness or temporary disability in accordance with the policies of the Company from time to time in effect, but in no case will the vacation allotment be less than 10 working days per annum. </font><br><br></p align="center">
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<font size="2">&nbsp;</font></p>
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<br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;<u>Representations</u>.  You represent and warrant to the Company that you are not a party to or otherwise subject to or bound by the terms of any agreement or understanding which would limit or otherwise affect your ability to perform your obligations hereunder, including but not limited to any non-competition or non-solicitation agreement or similar restriction which would prohibit you form or limit you in accepting employment with the Company or performing any duties on behalf of the Company.  You agree not to disclose to the Company or otherwise use, in the course of your employment with the Company, any confidential information which you are restricted from disclosing or using pursuant to any other agreement or duty to any other person. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;<u>Return of Property</u>.  You agree that upon termination of employment you will promptly return to the 
Company all confidential information, all intellectual property of the Company and all other property of the Company, including all correspondence, manuals, notebooks, lists of customers and suppliers, prototypes, computer programs, disks and any documents, materials or property, whether written or stored on computerized medium, and all copies in your possession or control; you will not take any action to preserve or regain access to such information through any means, including but not limited to access to the Company's facilities or through a computer or other digital or electronic means; and you will promptly pay all amounts due, owing or otherwise payable by Executive to the Company.  You expressly authorize the Company to withhold any amounts payable to you, including for wages, compensation, reimbursement and otherwise, until you have complied with all terms of this Agreement including this paragraph.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;<u>BPA</u>.  You 
acknowledge that this Agreement is contingent upon your agreement to be bound by all of the provisions of the Company's Business Protection Agreement ("BPA"), a copy of which has been delivered to you.  Accordingly, you covenant to be bound and abide by all terms and provisions of the BPA, regardless of whether such agreement is ever signed or delivered by you.  </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;<u>Remedies</u>.  You acknowledge that, as your violation of the provisions of paragraphs 5, 6 or 7 would cause irreparable injury to the Company, and there is no adequate remedy at law for such violation, the Company has the right, in addition to any other remedies available, at law or in equity, to seek to enjoin you in a court of equity from violating such provisions, and you waive any defenses you may have on the ground of lack of juris-dic-tion or competence of the court to grant such an injunction or other equitable relief.</font><br><br><font size="2">&nbsp;&
nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;<u>Term</u>.  This Agreement shall commence on March 31, 2008 (the "Effective Date").  This Agreement may be terminated at any time by either party upon 30 days prior written notice to the other party, provided, however, that this Agreement may be terminated immediately upon notice for "Cause" (as hereinafter defined).  Upon the termination of your employment for any reason or no reason, the Company shall have no further obligation to you whatsoever. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(a)&nbsp;&nbsp;The term "Cause" means: (i) an action or failure to act by you constituting fraud, misappropriation or damage to the property or business of the Company; (ii) the commission of an act of material dishonesty; conviction of or plea of <i>nolo contendere </i>to a crime, or causing the Company to commit a crime; (iii) your intentional failure to comply with your responsibilities hereunder or to fail to perform your dut
ies in accordance with written directives provided to him, in writing, by the President; (iv) your material breach of any of your obligations under this Agreement or any of the policies of the Company; or (v) the unauthorized use, misappropriation or disclosure by you of any confidential information of the Company or of any other party to whom you owe an obligation of nondisclosure as a result of your relationship with the Company, provided, however, that with respect to (iii) and (iv) above, you will be provided written notice of any failures, and/or breach constituting "Cause" and given reasonable opportunity (not to exceed 10 days) to cure the misconduct and/or breach.   </font><br><br><br></p align="center">
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<font size="2">&nbsp;</font></p>
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<br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;<u>Miscellaneous</u>.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(a)&nbsp;&nbsp;<u>Entire Agreement</u>.  The Company has made no representations other than as set forth herein. No modification, amendment or waiver of this Agreement or any of its provisions shall be valid unless in writing and signed by all parties. </font><br><br><a name="OLE_LINK7"></a><a name="OLE_LINK8"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(b)&nbsp;&nbsp;</font><font size="2"><u>Governing Law; Waiver of Jury Trial; Jurisdiction</u>.  This Agreement has been made in and shall be governed by and construed in accordance with the laws of the State of Maryland, without regard to any conflicts of laws principles which would apply the law of another jurisdiction.  The parties hereby waive trial by jury in any action arising under this Agreement.  Any action arising under this Agreement s
hall be brought in and shall be subject to the exclusive jurisdiction and venue of the state or federal courts located in Maryland, except where injunctive relief is sought in any other jurisdiction in connection with the enforcement of this Agreement.  </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(c)&nbsp;&nbsp;<u>Waiver</u>.  The failure of any party to fully enforce any provision hereof shall not be deemed to be a waiver of such provision or any part thereof, and the waiver of any provision shall not be deemed to be a waiver of any other provision or a waiver with respect to any other incidence of non-compliance therewith.  No waiver shall be effective unless in writing and signed by the party so waiving.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;	&nbsp;	(d)&nbsp;&nbsp;<u>Survival</u>.  The provisions of Sections 5, 6, 7 and 8 hereof, and the BPA, shall survive the termination of this Agreement and your employment hereunder.</font
><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you agree to accept employment with the Company subject to the foregoing terms, please sign in the space below and return this letter to me within 5 days of the date hereof.  </font><br><br></p>
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<font size="2">Sincerely,</font></p>
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<font size="2">Champions Biotechnology, Inc.</font></p>
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<font size="2">By:</font></p>
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<font size="2">__________________________</font></p>
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<font size="2">&nbsp;</font></p>
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<font size="2">Douglas D. Burkett, President</font></p>
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<br><font size="2">Agreed to and accepted </font><br><font size="2">on March 26, 2008</font><br><br><br><font size="2">__________________________</font><br><font size="2">Durwood Settles</font><br><br></p align="center">
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<font size="2">&nbsp;</font></p>
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<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>4
<FILENAME>exh102.htm
<DESCRIPTION>EXHIBIT 10.3
<TEXT>
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<meta name="description" content="C 634">
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<title>EMPLOYMENT AGREEMENT</title>
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<a name="_DV_M0"></a><font size="2">EMPLOYMENT
AGREEMENT</font></p align="center">
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<p>
<a name="_DV_M1"></a><font size="2">    &nbsp;THIS EMPLOYMENT AGREEMENT
("Agreement") made this March 31, 2008, by and between James Martell (the
"Executive") whose present address is 2200 Wilson Boulevard, Arlington, VA.  and
Champions Biotechnology, Inc. (the "Company") whose principal office is 2200
Wilson Boulevard, Suite 102-316, Arlington, VA. </font></p>
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<a name="_DV_M3"></a><font size="2">EXPLANATORY
STATEMENT</font></p align="center">
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<p>
<a name="_DV_M4"></a><font size="2">    &nbsp;The Company desires to employ
Executive as an employee of the Company, and Executive desires to accept such
employment, upon the terms and conditions herein provided.</font></p>
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<a name="_DV_M5"></a><font size="2">    &nbsp;NOW, THEREFORE, the parties agree
as follows:</font></p>
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<a name="_DV_M6"></a><font size="2">1.</font></p>
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<p>
<font size="2"><u>Duties and Status</u>.</font></p>
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<a name="_DV_M7"></a><font size="2">&nbsp;</font></p>
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<p>
<font size="2">1.1.</font></p>
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<font size="2"><u>Employment</u>.  The Company hereby engages Executive as a
full time employee of the Company to serve as Vice President of Administration
and the Chief Administrative Officer of the Company, and Executive hereby
accepts such employment, upon the terms and conditions hereinafter set
forth</font><a name="_DV_C6"></a><font size="2">.  </font></p>
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&nbsp;</td>
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&nbsp;</td>
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&nbsp;</td>
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&nbsp;</td>
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<a name="_DV_M8"></a><a name="_DV_M9"></a><font size="2">&nbsp;</font></p>
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<p>
<font size="2">1.2.</font></p>
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<p>
<font size="2"><u>Duties</u>.  During the term of this Agreement, Executive
shall devote his full time employment and best efforts to serving as an employee
of the Company.  Executive agrees to faithfully and competently perform all of
his duties under this Agreement to the best of his abilities.  Executive will
report to and shall, at all times, be subject to the direction and control of
the President of the Company.  Executive shall satisfactorily carry out the
duties assigned to him and report to such persons as directed.  Executive will
not take any action which may interfere with, or may adversely affect the
business, properties or prospects of the Company or any of its affiliates, or
the performance of his duties hereunder in any way.</font></p>
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&nbsp;</td>
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&nbsp;</td>
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<p>
<font size="2">2</font></p>
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<p>
<a name="_DV_M10"></a><font size="2"><u>Term</u></font><font size="2">.  The
term of this Agreement shall commence on March 31, 2008 (the "Effective Date")
and shall continue until the close of business on the day immediately preceding
the first anniversary of the date of the Effective Date (the "Original Term").
This Agreement will automatically be renewed at the expiration of the Original
Term for successive one year periods (each one year period a "Renewal Term")
unless notice of non-renewal is given by the Company or Executive at least 60
days prior to the expiration of the Original Term or any Renewal Term or unless
this Agreement is otherwise terminated as provided herein (the Original Term and
each  Renewal Term are collectively referred to as the  "Term").  </font></p>
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<p>
</p>
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&nbsp;</td>
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&nbsp;</td>
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&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<a name="_DV_M11"></a><font size="2">3.</font></p>
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<td width="581.333188" colspan="2" rowspan="1" >
<p>
<font size="2"><u>Compensation and General Benefits</u></font></p>
</td>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
&nbsp;</td>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<a name="_DV_M12"></a><font size="2">&nbsp;</font></p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
<font size="2">3.1.</font></p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<font size="2"><u>Salary</u>.  As compensation for Executive's services
hereunder, Executive shall be provided a salary at the rate of
$</font><a name="_DV_C8"></a><font size="2">185,000</font><a name="_DV_M13"></a><font size="2">
per annum.  The salary shall be payable in installments no less frequent than
monthly, less any and all deductions and amounts required to be withheld in
respect of any federal, state and local taxes and other charges and assessments.
Such salary shall be subject to annual review. </font></p>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
&nbsp;</td>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<a name="_DV_M14"></a>&nbsp;</p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
3.2.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Bonus Plan</u>.  Executive shall be eligible to participate in any bonus
and/or incentive compensation plan that the Company may from time to time
implement for the benefit of its full-time management employees.</p>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
&nbsp;</td>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<a name="_DV_M15"></a>&nbsp;</p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
3.3.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Executive Benefit Programs</u>.  Executive shall be permitted to participate
in all employee benefit programs implemented by the Company for the benefit of
any of its full-time employees, including, without limitation, retirement plans,
disability insurance, group and other life insurance, sickness, and accident and
health insurance programs, provided that Executive qualifies or is otherwise
eligible to participate under the terms of such programs.  </p>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
&nbsp;</td>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<a name="_DV_M16"></a>&nbsp;</p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
3.4.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Vacation and Sick Leave</u>.  Executive shall be entitled to vacation, leave
of absence, and leave for illness or temporary disability in accordance with the
policies of the Company from time to time in effect, but in no case will the
vacation allotment be less than 15 working days per annum. </p>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
&nbsp;</td>
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<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
3.5.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Insurance</u>.  The Company shall continue to pay and maintain during the
Term hereof the cost of the life and health insurance policies currently in
effect for the benefit of Executive and his family.  </p>
</td>
</tr>
<tr valign="top">
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="37.333324" colspan="1" rowspan="1" >
<p>
3.6.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Reimbursement</u>. The Executive shall be reimbursed for all reasonable out
of pocket costs incurred by him, provided that the prior approval of the Company
shall be obtained for all costs in excess of $2,500.  </p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M17"></a>4.</p>
</td>
<td width="582.666521" colspan="2" rowspan="1" >
<p>
<u>Executive's Representations and Warranties</u>.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M18"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
4.1.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>No Prior Agreements</u>.  Executive represents and warrants that he is not a
party to or otherwise subject to or bound by the terms of any contract,
agreement or understanding which in any manner would limit or otherwise affect
his ability to perform his obligations hereunder, including without limitation
any contract, agreement or understanding containing terms and provisions similar
in any manner to those contained in the Company's Business Protection Agreement.
</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M19"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
4.2.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Confidential Information of Others</u>.  Executive represents, warrants and
covenants he will not disclose to the Company or otherwise use, in the course of
his employment with the Company, any confidential information which he is
restricted from disclosing or using pursuant to any other agreement or duty to
any other person. </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M20"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
4.3</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Non-Competition Covenants</u>.   Executive represents and warrants to the
Company that he is not bound by any non-competition or non-solicitation
agreement or similar restriction which would prohibit him from accepting
employment with the Company or performing any duties on behalf of the Company.
</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M21"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
4.4.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Return of Company Property</u>.  Executive agrees that upon termination of
employment he will promptly return to the Company all Confidential Information,
all Intellectual Property of the Company and all other property of the Company,
including all correspondence, manuals, notebooks, lists of customers and
suppliers, prototypes, computer programs, disks and any documents, materials or
property, whether written or stored on computerized medium, and all copies in
Executive's possession or control, he shall not shall not take any action to
preserve or regain access to such information through any means, including but
not limited to access to the Company's facilities or through a computer or other
digital or electronic means, and shall promptly pay all amounts due, owing or
otherwise payable by Executive to the Company.  Executive expressly authorizes
the Company to withhold any amounts payable to him, including for wages,
compensation, reimbursement and otherwise, until he has complied with this
Section.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M22"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
4.5.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Business Protection Agreement</u>.  Executive acknowledges that this
Agreement is contingent upon Executive's acceptance of and agreement to be bound
by all of the terms and provisions of the Company's Business Protection
Agreement ("BPA"), a copy of which has been delivered to Executive.
Accordingly, Executive covenants and agrees to be bound and abide by all terms
and provisions of the BPA, regardless of whether such agreement is ever signed
or delivered by Executive.  </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M24"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
4.6.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Company's Remedies for Breach</u>.  Executive acknowledges that, as the
violation by Executive of the provisions of Section 4 would cause irreparable
injury to the Company, and there is no adequate remedy at law for such
violation, the Company shall have the right in addition to any other remedies
available, at law or in equity, to seek to enjoin Executive in a court of equity
from violating such provisions.  Executive hereby waives any and all defenses he
may have on the ground of lack of jurisdiction or competence of the court to
grant such an injunction or other equitable relief.</p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M25"></a>5.</p>
</td>
<td width="582.666521" colspan="3" rowspan="1" >
<p>
<u>Termination</u>.      </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M26"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
5.1.</p>
</td>
<td width="542.666531" colspan="2" rowspan="1" >
<p>
<u>Termination Upon Expiration, Death, Incapacitation or Disability</u>.  This
Agreement and Executive's employment shall terminate upon the expiration of the
Term hereof.  This Agreement and Executive's employment shall terminate upon the
death of Executive and may be terminated by the Company at any time upon the
disability of Executive upon notice from the Company.   For purposes of this
Agreement, "disability" shall mean any illness or incapacity which renders the
Executive unable or incapable, in the judgment of the Company's Board of
Directors, of performing his duties hereunder in a manner satisfactory to the
Board of Directors for a period of 90 days in any 12 month period.  In the event
of any such termination, the Company shall pay to Executive or his estate or
heirs, as the case may be, his then current salary and benefits payable to him
under Section 3 hereof through the remainder of the then-current term of this
Agreement, subject to Executive's compliance with his obligations under Section
4 (which for all purposes of this Agreement includes the obligation to comply
with the BPA) and provided that Executive or his estate or heirs, as the case
may be, executes a release and agreement satisfactory to the Company pursuant to
which he agrees not to make any claims, whether at law or in equity, against the
Company.<a name="_DV_C11"></a><font size="2">  </font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M27"></a><a name="_DV_M28"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
5.2.</p>
</td>
<td width="542.666531" colspan="2" rowspan="1" >
<p>
<u>Termination by the Company</u>.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M29"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.1.</p>
</td>
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<u>Termination by the Company Without Cause</u>.  The Company may terminate
Executive's employment without cause, upon 30 days written notice to Executive.
In such event, the Company shall pay to Executive his then current salary for
three months following such notice of termination, subject to Executive's
compliance with his obligations under Section 4 hereof and provided that
Executive executes a release agreement satisfactory to the Company pursuant to
which he agrees, among other things,
<a name="_DV_M30"></a><a name="OLE_LINK1"></a><a name="OLE_LINK2"></a><a name="_DV_M31"></a>not
to make any claims, whether at law or in equity, against the
Company.<a name="_DV_C12"></a><font size="2">  </font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M32"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.2.</p>
</td>
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<u>Termination by the Company for Cause</u>.  The Company may terminates
Executive's employment for Cause (as hereinafter defined). In such event, the
Company shall have no obligation to make any payments to Executive except,
subject to Executive's compliance with his obligations under Section 4 hereof,
for any portion of his salary through the date of such termination, provided
that Executive executes a release agreement satisfactory to the Company pursuant
to which he agrees, among other things, not to make any claims, whether at law
or in equity, against the Company. The term "Cause"
means<a name="_DV_C13"></a><font size="2">: (i)</font><a name="_DV_M33"></a> an
action or failure to act by Executive constituting fraud, misappropriation or
damage to the property or business of the Company;
<a name="_DV_C14"></a><font size="2">(ii) </font><a name="_DV_M34"></a>the
commission of an act of<a name="_DV_C15"></a><font size="2">
material</font><a name="_DV_M35"></a> dishonesty;
<a name="_DV_C17"></a><font size="2">conviction of or plea of
</font><font size="2"><i>nolo contendere </i>to</font><a name="_DV_M36"></a> a
crime, or causing the Company to commit a crime;
<a name="_DV_C18"></a><font size="2">(iii) </font><a name="_DV_M37"></a>the
<a name="_DV_C19"></a><font size="2">intentional
</font><a name="_DV_M38"></a>failure by Executive to
<a name="_DV_C21"></a><font size="2">comply with</font><a name="_DV_M39"></a>
his responsibilities <a name="_DV_C22"></a><font size="2">hereunder
</font><a name="_DV_M40"></a>or<a name="_DV_C23"></a><font size="2"> to
fail</font><a name="_DV_M41"></a> to perform his duties in
<a name="_DV_C25"></a><font size="2">accordance with written directives provided
to him, in writing, by the Company's</font><a name="_DV_M42"></a> President;
<a name="_DV_C26"></a><font size="2">(iv)
</font><a name="_DV_M43"></a>Executive's<a name="_DV_C27"></a><font size="2">
material</font><a name="_DV_M44"></a> breach of any of his obligations under
this Agreement or any of the policies of the Company;
<a name="_DV_C29"></a><font size="2">or (v)</font><a name="_DV_M45"></a> the
unauthorized use, misappropriation or disclosure by Executive of any
Confidential Information of the Company or of any other party to whom Executive
owes an obligation of nondisclosure as a result of his relationship with the
Company<a name="_DV_C30"></a><font size="2">, provided, however, that with
respect to (iii) and (iv) above, Executive will be provided written notice of
any failures, and/or breach constituting "Cause" and given reasonable
opportunity (not to exceed 30 days) to cure the misconduct and/or
breach</font><a name="_DV_M46"></a>. </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M48"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.3.</p>
</td>
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<u>Termination by Executive for Good Reason</u>.  Executive may, at any time
during the Term, terminate his employment and this Agreement for "Good Reason,"
upon written notice given to the Company by Executive identifying with
specificity the cause for which he is terminating the Agreement, provided,
however, the Company shall have been given at least 30 days to cure the matter
that constitutes or gives rise to such "Good Reason" and such matter shall not
have been cured or eliminated by the Company.  For the purposes hereof, "Good
Reason" means, in the absence of any "Cause" as defined above: (i)
<a name="_DV_M51"></a>the reduction by the Company in Executive's annual base
salary as in effect on the date hereof or as the same may be increased from time
to time; (<a name="_DV_M52"></a><a name="_DV_M53"></a><font size="2">ii</font>)
the material breach by the Company of its obligations to Executive under this
Agreement<a name="_DV_C35"></a><font size="2">; or (iii) a relocation by the
Company of Executive's principal work site from the area in which the Executive
currently performs his services</font>.  In the event of such termination, the
Company shall pay Executive his then current salary for the lesser of three
months following such notice of termination or the period of time remaining in
the then current Term, subject to Executive's compliance with his obligations
under Section 4 hereof and provided that Executive executes a release agreement
satisfactory to the Company pursuant to which he agrees, among other things, not
to make any claims, whether at law or in equity, against the
Company.<a name="_DV_C36"></a><font size="2">  </font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M55"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p>
5.2.4.</p>
</td>
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<u>Termination by Executive Without Good Reason</u>.  In the event Executive
terminates his employment without Good Reason, the Company shall have no
obligation to make any payments to Executive except, subject to Executive's
compliance with his obligations under Section 4 hereof, for any portion of his
salary through the date of such termination, provided that Executive executes a
release agreement satisfactory to the Company pursuant to which he agrees, among
other things, not to make any claims, whether at law or in equity, against the
Company.  </p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M56"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="2" rowspan="1" >
<p>
5.3.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>No Other Obligation</u>.  Upon the termination of Executive's employment for
any reason, the Company shall have no further obligation to Executive whatsoever
except as expressly stated in this Section.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M57"></a>6.</p>
</td>
<td width="582.666521" colspan="3" rowspan="1" >
<p>
<u>Miscellaneous</u>.<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M58"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="2" rowspan="1" >
<p>
6.1.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Entire Agreement</u>.  The Company has made no representations other than as
set forth herein.
<a name="_DV_M59"></a><a name="OLE_LINK7"></a><a name="OLE_LINK8"></a>No
modification or amendment of this Agreement, nor waiver of any of its
provisions, shall be valid or enforceable unless in writing and signed by all
parties.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M60"></a><a name="_DV_M61"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="2" rowspan="1" >
<p>
6.2.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Benefit</u>.  This Agreement shall be binding upon and inure to the benefit
of the Company, its successors and assigns.  This Agreement shall be binding
upon Executive and his heirs, personal and legal representatives, and guardians,
and shall inure to the benefit of Executive.  This Agreement may not be assigned
by Executive in whole or in part.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M62"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="2" rowspan="1" >
<p>
6.3.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Separability</u>.  The invalidity or unenforceability of any provision of
this Agreement shall not affect any other provision hereof, and the Agreement
shall be construed in all respects as though such invalid or unenforceable
provisions were omitted.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M63"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="2" rowspan="1" >
<p>
6.5.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Notices</u>.  Any notice required to be given pursuant to this Agreement
shall be in writing and delivered in person, or sent by certified mail, return
receipt requested, if to the Company, at its principal office and if to
Executive, at his residence address as contained in the records of the
Company.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M64"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="2" rowspan="1" >
<p>
6.6.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Governing Law; Waiver of Jury Trial; Jurisdiction</u>.  This Agreement has
been made in and shall be governed by and construed in accordance with the laws
of the State of Maryland, without regard to any conflicts of laws principles
which would apply the law of another jurisdiction.  The parties hereby waive
trial by jury in any action arising under this Agreement.  Any action arising
under this Agreement shall be brought in and shall be subject to the exclusive
jurisdiction and venue of the state or federal courts located in Maryland,
except where injunctive relief is sought in any other jurisdiction in connection
with the enforcement of this Agreement.  </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="582.666521" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p>
<a name="_DV_M65"></a>&nbsp;</p>
</td>
<td width="38.666657" colspan="2" rowspan="1" >
<p>
6.7.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Waiver</u>.  The failure of any party to fully enforce any provision hereof
shall not be deemed to be a waiver of such provision or any part thereof, and
the waiver by any party of any provision hereof shall not be deemed to be a
waiver of any other provision hereof or a waiver with respect to any other
incidence of non-compliance therewith.  No waiver shall be effective unless in
writing and signed by the party so waiving.</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="31.999992" colspan="2" rowspan="1" >
<p>
<a name="_DV_M66"></a>&nbsp;</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
6.7.</p>
</td>
<td width="542.666531" colspan="1" rowspan="1" >
<p>
<u>Survival</u>.  The provisions of Section 4 hereof shall survive the
termination of this Agreement and Executive's employment hereunder.</p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="637.333174" colspan="1" rowspan="1" >
<p>
<a name="_DV_M67"></a><font size="2">IN WITNESS WHEREOF, the parties have
executed this Agreement under seal, with the intent that this be a sealed
instrument, on the day and year first above written.</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border="1">
<tr valign="top">
<td width="214.666613" colspan="1" rowspan="1" >
<p>
<a name="_DV_M68"></a><font size="2">ATTEST/WITNESS:</font></p>
</td>
<td width="422.666561" colspan="1" rowspan="1" >
<p>
<font size="2">COMPANY:  Champions Biotechnology, Inc.</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="206.666615" colspan="1" rowspan="1" >
<p>
<a name="_DV_M69"></a><font size="2">_________________________</font></p>
</td>
<td width="285.333262" colspan="1" rowspan="1" >
<p>
<font size="2">By:________________________________(SEAL)</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="206.666615" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
<p>
<a name="_DV_M70"></a><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="206.666615" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="143.999964" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="206.666615" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
<p>
<a name="_DV_M71"></a><font size="2">EXECUTIVE:</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="206.666615" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="143.999964" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="206.666615" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="285.333262" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="143.999964" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="206.666615" colspan="1" rowspan="1" >
<p>
<a name="_DV_M72"></a><font size="2">_________________________</font></p>
</td>
<td width="285.333262" colspan="1" rowspan="1" >
<p>
<font size="2">___________________________________(SEAL)</font></p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p>
<font size="2">James Martell</font></p>
</td>
</tr>
</table></div>
<p>
</p>


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