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<ACCESSION-NUMBER>0001054274-04-000009
<TYPE>8-K
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<ITEMS>7
<FILING-DATE>20040526
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<CONFORMED-NAME>HEPALIFE TECHNOLOGIES INC
<CIK>0001054274
<ASSIGNED-SIC>9995
<IRS-NUMBER>582349413
<STATE-OF-INCORPORATION>FL
<FISCAL-YEAR-END>1231
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<ACT>34
<FILE-NUMBER>000-29819
<FILM-NUMBER>04833011
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<BUSINESS-ADDRESS>
<STREET1>1628 WEST 1ST AVENUE
<STREET2>UNIT 216
<CITY>VANCOUVER
<STATE>A1
<ZIP>V6J 1G1
<PHONE>800-518-4879
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<STREET1>1628 WEST 1ST AVE
<STREET2>UNIT 216
<CITY>VANCOUVER
<STATE>A1
<ZIP>V6J 1G1
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ZETA CORP
<DATE-CHANGED>20030219
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>ZETA CORP /CA
<DATE-CHANGED>20000303
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<FILENAME>may262004crada.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
<META NAME="author" CONTENT="Jeet Sidhu">
<META NAME="date" CONTENT="05/25/2004">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-top:3pt; width:522pt; line-height:16pt; font-family:Times New Roman; font-size:14pt; border-top:3pt solid #000000" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>Washington, D.C. &nbsp;20549</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>FORM 8-K</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CURRENT REPORT</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B><U>May 26, 2004</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>Date of Report (Date of earliest event reported)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:20pt; font-family:Times New Roman; font-size:18pt" align=center><B><U>HEPALIFE TECHNOLOGIES, INC.</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:8pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>Florida</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(State or other jurisdiction of incorporation)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:8pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>000-29819</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(Commission File Number)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:8pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>58-2349413</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(I.R.S. Employer Identification No.)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>1628 West 1st Avenue, Suite 216, Vancouver, British Columbia, &nbsp;V6J 1G1</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(Address of principal executive offices)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>(800) 518-4879</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-bottom:3pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; border-bottom:3pt solid #000000" align=center>(Registrant&#146;s telephone number, including area code)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>ITEM 1. &nbsp;Changes in Control of Registrant</B>.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>ITEM 2. &nbsp;Acquisition or Disposition of Assets</B>.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>ITEM 3. &nbsp;Bankruptcy or Receivership</B>.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>ITEM 4. &nbsp;Changes in Registrant&#146;s Certifying Accountant</B>.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>ITEM 5. &nbsp;Other Events.</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>On May 24, 2004, HepaLife Technologies, Inc. agreed to extend its Cooperative Research and Development Agreement (CRADA) with the USDA&#146;s Agricultural Research Service (ARS) for an additional three years through September 30, 2007.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>ARS will receive a total of $807,828.00 in funds, of which $153,600.00 has been paid, to study experimental culture conditions for the ARS-PICM-19 cell line, its derivative cell lines, or other pig epiblast-derived liver cell lines (as described under ARS patent #5,532,156, &#147;Hepatocyte Cell Line Derived from the Epiblast of Pig Blastocysts&#148;) so as to optimize their hepatocyte functions for use as an in vitro liver model, for their use in an artificial liver device, and for their use in the in vitro assay of metabolic, toxic, or carcinogenic responses. &nbsp;Specific project objectives are the following:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>1)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Develop feeder-cell-independent and serum-free medium cell culture systems allowing the growth and differentiation of ARS-PICM-19 cells, or subclones or subpopulations of the ARS-PICM-19 cells, under defined conditions.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>2) </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Develop spheroid cultures of PICM-19 cells without STO feeder cells and testing of rotating cell culture system (RCCS) for production and maintenance of spheroids.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>3)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Investigate effects of accessory cells obtained from pig liver on ARS-PICM-19 growth, differentiation, and metabolic function. </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>4)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Assay ARS-PICM-19 cells and spheroids for liver specific functions by measuring P450 activity, &#947;-glutamyltranspeptidase activity, urea production, and ammonia clearance.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>5)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Assay ARS-PICM-19 liver specific protein synthesis and secretion by electrophoretic, immunochemical, or mass spectrophotometric techniques.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>6)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Develop and test, by in vitro assay, flow-through bioreactors that enable the growth, differentiation, and &nbsp;maintenance of metabolic function of the ARS-PICM-19 cell line, or its derivative cell lines, over long term culture (1-3 months).</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>7)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Develop and test multi-well cell culture formats for the in vitro assay of the effects of various test compounds on the metabolism and viability of ARS-PICM-19-derived hepatocytes or bile ductules.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>8)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Genetically engineer ARS-PICM-19 cells to create derivative cell lines containing gene reporter constructs, e.g., green fluorescent protein (GFP) based constructs, so that GFP expression is linked to various cell metabolic responses or stimulation of various cell signal transduction pathways.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>9)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>Develop cell transformation assay formats to demonstrate and enable the utilization of the ARS-PICM-19 cell line for the study of &nbsp;mutagenic or carcinogenic processes.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>Hepalife Technologies will provide funds for the salary of one post-doctoral researcher, one support scientist, and one technician for a period of three years and funds for the associated laboratory supplies and professional activities involved with conducting the CRADA objectives under the following payment schedule:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(1)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before August 1, 2004;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(2)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before November 1, 2004; </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(3)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before February 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(4)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before May 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(5)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before August 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(6)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before November 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(7)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before February 1, 2006;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(8)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before May 1, 2006;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(9)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before August 1, 2006;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>(10)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>$65,422.80 on or before November 1, 2006</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>ITEM 6. &nbsp;Resignations of Registrant&#146;s Director&#146;s</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>ITEM 7. &nbsp;Financial Statements and Exhibits.</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>The following exhibit is filed herewith:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><U>Exhibit Number</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:90pt; width:522pt; font-family:Times New Roman" align=justify><U>Description</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:18pt; width:522pt; font-family:Times New Roman" align=justify>10.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:90pt; width:522pt; font-family:Times New Roman" align=justify>Amendment and extension of Cooperative Research Agreement with the United </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:90pt; width:522pt; font-family:Times New Roman" align=justify>States Department of Agriculture</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>ITEM 8. &nbsp;Change in Fiscal Year</B>.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>ITEM 9. &nbsp;Regulation FD Disclosure </B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<B><P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman">SIGNATURES</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<B><P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman"><BR></B></P>
<B><P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman">HEPALIFE TECHNOLOGIES, INC.</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:216pt; width:306pt; font-family:Times New Roman"><U>/s/ Harmel S. Rayat</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman">Harmel S. Rayat</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman">Secretary/Treasurer, Director</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:288pt; text-indent:-72pt; width:234pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>Date: May 26, 2004</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; padding-right:36pt; width:576pt; font-family:Times New Roman" align=right><B>EXHIBIT 10.1</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman" align=justify><BR></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=399.733 colspan=2 rowspan=2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>UNITED STATES DEPARTMENT OF AGRICULTURE</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>RESEARCH AGREEMENT</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=321.267 colspan=2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">TYPE OF RESEARCH AGREEMENT</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Cooperative Research and Development Agreement</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=184.267><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">AGREEMENT NO.</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>58-3K95-3-0967</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=137><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">TYPE OF ACTION</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Amendment No. 3</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=399.733 colspan=2 rowspan=2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">AGENCY (Name and Address)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Agricultural Research Service</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>1400 Independence Avenue SW</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Washington, D.C. 20250-0302</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=321.267 colspan=2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">PERIOD OF AGREEMENT</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>10/01/02 through 9/30/07</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=184.267><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">FEDERAL OBLIGATION</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">$ 0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=137><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">CHANGE IN FEDERAL OBLIGATION </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=721 colspan=4><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">This Agreement is authorized by the Federal Technology Transfer Act, 15 USC 3710a, <I>et seq., </I>and is governed by its terms.</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>Items</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>Descriptions</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1. &nbsp;Technology Transfer Coordinator</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Harry D. Danforth</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2. &nbsp;Cooperator</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Hepalife Technologies, Inc.</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Suite 216 - 1628 West 1<SUP>st</SUP> Ave, </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Vancouver, BC, V6J 1G1</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Tax ID # &nbsp;</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">3. &nbsp;Principal Investigator</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Harmel Rayat, Director</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">4. &nbsp;USDA Laboratory</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Growth Biology Laboratory</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">10300 Baltimore Ave.</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Beltsville, MD &nbsp;20705-2350</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">5. &nbsp;USDA Researcher (ADODR)</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Neil Talbott, Thomas Caperna</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">6. &nbsp;National Program Leader &amp; Area</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">First &amp; Last Name of NPL</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">7. &nbsp;Accounting Code</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">X91-1265-356 </P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">8. &nbsp;Amount</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">$807,828.00 (total for 5 years)</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">9. &nbsp;Finance Office</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Budget &amp; Fiscal Office</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">USDA-ARS-BA</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Bldg. 003, Room 306, BARC-West</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Beltsville, MD &nbsp;20705-2350</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">10. &nbsp;Cris No.</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1365-31000-087-01T</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">11. &nbsp;Title of Project</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">OPTIMIZATION OF THE ARS-PICM-19 CELL LINE FOR AN IN VITRO MODEL OF PIG LIVER FUNCTION AND APPLICATION TO AN EXTRACORPOREAL LIVER ASSIST DEVICE</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">12. &nbsp;Log #</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=433.4 colspan=3><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">22659</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=721 colspan=4><P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>This Agreement is amended, as follows:</B></P>
<P style="margin:0pt; padding-left:54pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">The duration of the Agreement is extended for three (3) years through September 30, 2007. &nbsp;ARS will receive a total of &nbsp;$807,828.00 in funds of which $153,600.00 has been paid. The Statement of Work and Clause 9 have been changed and are incorporated herein. The Title of Project has been changed. &nbsp;ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME. &nbsp;</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" width=721 colspan=4><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>FOR THE UNITED STATES DEPARTEMENT OF AGRICULTURE</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">SIGNATURE</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>/s/ Richard Brenner</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=296.4 colspan=2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">TYPED NAME</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>RICHARD J. BRENNER</B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>Authorized Departmental Officer</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=137><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">DATE</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>May 19, 2004</B></P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=721 colspan=4><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>FOR THE COOPERATOR</B></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>(Signature of person(s) authorized by the governing body of the COOPERATOR to incur contractual obligations)</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=287.6><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">SIGNATURE</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>/s/ Harmel Rayat</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=296.4 colspan=2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">TYPED NAME AND TITLE</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>HARMEL RAYAT</B></P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=137><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">DATE</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center><B>May 24, 2004</B></P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:11pt; font-family:Times New Roman; font-size:9pt"><B>OTT COVER FORM</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><B><U>Clause 9</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">9.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">HEPALIFE shall have the first option to prepare and prosecute patent or Plant Variety Protection Certificate applications, foreign and domestic, on Subject Inventions owned or co-owned by the U.S. Government, subject to the following conditions:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">All documents shall be submitted to ARS sufficiently in advance of filing to allow ARS a reasonable opportunity to review and make recommendations thereon;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">Copies of all correspondence from the U.S. Patent and Trademark Office or Plant Variety Protection Office and foreign equivalent offices shall be provided promptly to ARS;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">The following USDA personnel shall be given an associate power of attorney or be listed as an attorney of record:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Patent Advisor</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Patent Attorney</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Evelyn Rabin</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">John Fado</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">USDA-ARS-OTT</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">USDA-OGC Rm. 3311</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">5601 Sunnyside Avenue</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">South Agriculture Bldg.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Beltsville MD</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Washington, D.C. 20250-1415</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Registration Number</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Registration No. 27876</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Tel: 301-504-4781</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Tel.: 202-720-2421</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Fax: 301-504-5060</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Fax: 202-720-8706</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">9.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">The act of preparing and/or filing documents, <I>per se</I>, shall not entitle HEPALIFE to any rights in such Inventions or the reimbursement of costs incident to patent prosecution.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">9.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS shall have the right at any time, at its sole discretion, concerning Inventions solely owned by the U.S. Government, to: (1) assume responsibility for prosecuting any such application; and (2) permit any application to become abandoned or issued patent/certificate to expire, subject to the provisions of any license agreement relating to the subject matter.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">9.4</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS agrees to provide HEPALIFE consultation and advice in the preparation, filing, and prosecution of patent or Plant Variety Protection Certificate applications on Subject Inventions.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>STATEMENT OF WORK</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>A.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>Introduction/Background</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:3.55pt; width:522pt; font-family:Times New Roman" align=justify>ARS has developed several in vitro model systems to investigate various aspects of hepatic gene expression and metabolic regulation. These systems encompass both established cell lines and primary liver cell cultures. One stem-like cell line, derived from porcine epiblast (embryonic) tissue is the ARS PICM-19 cell line (ARS patent #5,532,156), has been partially characterized and is a non-transformed immortal cell line that possesses many characteristics similar to that of intact liver parenchymal cells. ARS interests would be greatly enhanced by further characterization and improvements in the culture technology that would ultimately result in the cell line not requiring feeder cell support and growth in a completely serum-free defined medium. These advancements would facilitate our understanding of regulatory events in pig liver gene/proteome expression and in regulation of nutrient metabolism. Further, it has already been demonstrated that the unique hepatic characteristics of the ARS-PICM-19 cell line would have potential application for use in the production of a rescue device for human patients in liver failure (ARS patent # 5,866,420; &#147;Artificial Liver Device&#148;, granted to ARS on 2/2/1999). To date, the cellular components of artificial liver devices that are being tested by other institutions are based on freshly isolated porcine hepatocytes, human transformed tumor cells, or poorly defined stem-like cells prepared from fresh human adult liver tissue. It is widely recognized that the greatest hindrance to the development of a completely functional artificial liver rescue device is the lack of an appropriate defined cell line that will provide the functions of an intact liver. The primary interest of Hepalife is to explore the possibility that the ARS PICM-19 cell line is indeed the most appropriate cell line to use in such a device. </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>B.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>Objective</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>The overall objective of the work is to optimize the patented ARS-PICM-19 cell line as an in vitro model of the pig liver. The first objective is to investigate and discover culture conditions for the ARS-PICM-19 cell line, or modifications of the ARS-PICM-19 cell line technology itself, that will optimize function, i.e., culture conditions or cell line modifications that will enable, as closely as possible, the reproduction of normal pig liver functions in an in vitro environment. &nbsp;Directly related to the first objective will be the second and third objectives. &nbsp;The second objective is adapting and applying the optimized ARS-PICM-19 cell line technology to the development of an extracorporeal liver assist device as described in patent #5,866,420. &nbsp;The third objective is to use the ARS-PICM-19 cell line in the development of in vitro assay formats for testing, a.) cell metabolism and toxicity responses, b.) &nbsp;hepatocyte and bile duct epithelium cell function responses, and c.) cell transformation responses, i.e., loss of normal differentiation.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>C.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>Approach and Methodology</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>ARS will study experimental culture conditions for the ARS-PICM-19 cell line, its derivative cell lines, or other pig epiblast-derived liver cell lines (as described under ARS patent #5,532,156, &#147;Hepatocyte Cell Line Derived from the Epiblast of Pig Blastocysts&#148;) so as to optimize their hepatocyte functions for use as an in vitro liver model, for their use in an artificial liver device, and for their use in the in vitro assay of metabolic, toxic, or carcinogenic responses. &nbsp;Specific project objectives are the following:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>1) &nbsp;Develop feeder-cell-independent and serum-free medium cell culture systems allowing the growth and differentiation of ARS-PICM-19 cells, or subclones or subpopulations of the ARS-PICM-19 cells, under defined conditions.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>2) &nbsp;Develop spheroid cultures of PICM-19 cells without STO feeder cells and testing of rotating cell culture system (RCCS) for production and maintenance of spheroids.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>3) &nbsp;Investigate effects of accessory cells obtained from pig liver on ARS-PICM-19 growth, differentiation, and metabolic function. </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>4) &nbsp;Assay ARS-PICM-19 cells and spheroids for liver specific functions by measuring &nbsp;P450 activity, &#947;-glutamyltranspeptidase activity, urea production, and ammonia clearance.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>5) &nbsp;Assay ARS-PICM-19 liver specific protein synthesis and secretion by electrophoretic, immunochemical, or mass spectrophotometric techniques.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>6) &nbsp;Develop and test, by in vitro assay, flow-through bioreactors that enable the growth, differentiation, and &nbsp;maintenance of metabolic function of the ARS-PICM-19 cell line, or its derivative cell lines, over long term culture (1-3 months).</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>&nbsp;7) &nbsp;Develop and test multi-well cell culture formats for the in vitro assay of the effects of</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>various test compounds on the metabolism and viability of ARS-PICM-19-derived hepatocytes or bile ductules.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>8) &nbsp;Genetically engineer ARS-PICM-19 cells to create derivative cell lines containing gene reporter constructs, e.g., green fluorescent protein (GFP) based constructs, so that GFP expression is linked to various cell metabolic responses or stimulation of various cell signal transduction pathways.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>9) &nbsp;Develop cell transformation assay formats to demonstrate and enable the utilization of the ARS-PICM-19 cell line for the study of &nbsp;mutagenic or carcinogenic processes.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>Hepalife will provide funds for the salary of one post-doctoral researcher, one support scientist, and one technician for a period of three years and funds for the associated laboratory supplies and professional activities involved with conducting the CRADA objectives.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>D.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>ARS&#146; Responsibilities</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Conduct these portions of the research project or perform the following tasks:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>a. Hire one post-doctoral research associate, one support scientist, and one technician for a &nbsp;2-3 year period.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>b. Provide laboratory and office space for the research associate.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>c. Provide fully equipped cell culture laboratory and protein chemistry laboratory.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>d. Provide experimental animals (pigs) and slaughter facilities.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>e. Acquire specific laboratory equipment, e.g.., RCCS, and &nbsp;supplies to conduct the CRADA objectives.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>f. Conduct research on the optimization of the ARS-PICM-19 cell line, or its derivative cell lines (or related pig epiblast-derived cell lines), as an in vitro pig liver cell model, and adapt the ARS-PICM-19 liver cell technology to an extracorporeal liver assist device and to in vitro formats for metabolic, toxicological, and carcinogenicity assay.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>g. Prepare progress reports on project objectives.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>h. Prepare and submit technical reports for publication.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>a. Provide access to 1850 square feet of laboratory space in Building 200, Rooms 13, 202, 204 and 212, at the Beltsville Agricultural Research Center for those Hepalife personnel assigned to this project.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:72pt; text-indent:-36pt; width:450pt; font-family:Times New Roman" align=justify>b. Provide utilities, services, and general support to Hepalife's personnel, as needed and available.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>E.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>Hepalife&#146;s Responsibilities</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Perform these portions of the research effort:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>a. Provide funds for one post-doctoral research associate, one support scientist, and one technician for a 2-3 year period.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>b. Provide funds for project related laboratory equipment, supplies, and off site research services such as electron microscopy and bioreactor component manufacturing.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>c. Provide funds for position advertisement and travel expenses for position interviews.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>d. Provide funds for professional activities of research associate such as travel to meetings and project specific training activities.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>e. Prepare and file patent applications.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Pay a total of $807,828.00 to ARS for the 5-year life of the CRADA. &nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>The payment schedule for the funds which remain to be paid is:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(1)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80 </U>on or before August 1, 2004;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(2)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before November 1, 2004; </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(3)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80 </U>on or before February 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(4)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before May 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<A NAME="OLE_LINK1"></A><P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(5)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before August 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(6)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before November 1, 2005;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(7)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before February 1, 2006;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(8)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before May 1, 2006;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(9)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before August 1, 2006;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>(10)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>$<U>65,422.80</U> on or before November 1, 2006;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>Total: $654.228.00</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:72pt; text-indent:36pt; width:450pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Second year funding arrangements as negotiated in the original CRADA are superseded by this amendment. &nbsp;No additional funds are owed for Year 2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:72pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman" align=justify>b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman" align=justify>Make checks or money orders out to the &quot;Agricultural Research Service,&quot; cite Agreement No. 58-3K95-3-0967 thereon, and send to:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:108pt; width:522pt; font-family:Times New Roman" align=justify>USDA, ARS, BA, Budget and Fiscal Office</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:108pt; width:522pt; font-family:Times New Roman" align=justify>10300 Baltimore Ave.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:108pt; width:522pt; font-family:Times New Roman" align=justify>Bldg. 003, Rm. 306, BARC-West</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:108pt; width:522pt; font-family:Times New Roman" align=justify>Beltsville, Maryland 20705-2350</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>3.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Hepalife may pay the travel and per diem of ARS scientific representatives traveling pursuant to this Agreement if such payment receives the prior approval of the appropriate ARS Area Director.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>4.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Describe any personnel and/or equipment Hepalife will furnish ARS. </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Hepalife will provide funds for the hiring and laboratory research support of a post-doctoral research associate.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>F.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>ARS &amp; Hepalife&#146;s Joint or Mutual Responsibilities</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Perform these portions of the effort jointly:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>a. Develop strategy for design of a support system matrix to grow and maintain established ARS-PICM-19, or its derivative cell lines, or related pig liver epiblast-derived cell lines.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>b. Evaluate efficacy of ARS-PICM-19, &nbsp;its derivative cell lines, or related epiblast-derived pig liver cell lines, in an in vitro pig liver model system for potential use in an extracorporeal liver assist device and in the development and testing of in vitro formats for assaying metabolic, toxicological, and carcinogenic responses in pig hepatocytes and bile ductules.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>SCHEDULE 3 ESTIMATED BUDGET</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman"><B>TOTAL YEARS</B></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Hepalife</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>408,400.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>99,628.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>360,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>28,025.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>200,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>33,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>265,500.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">D. &nbsp;&nbsp;Travel</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1. &nbsp;Domestic</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2. &nbsp;Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>14,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>8,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>80,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>224,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>84,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>11,126.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>105,144.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>727,051.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>636,722.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>557,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>80,777.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>807,828.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>636,722.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>557,000.00</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman"><B>YEAR 1</B></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Hepalife</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>75,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>23,200.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>72,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>13,025.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>50,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>6,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>45,500.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">D. &nbsp;&nbsp;Travel</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1. &nbsp;Domestic</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2. &nbsp;Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>8,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>56,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>12,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,715.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>26,244.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>138,240.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>157,444.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>98,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,360.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>153,600.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>157,444.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>98,000.00</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman"><B>Year 2</B></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Hepalife</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">D. &nbsp;&nbsp;Travel</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1. &nbsp;Domestic</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2. &nbsp;Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0.00</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman"><B>Year 3</B></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Hepalife</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>125,900.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,244.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>96,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>50,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>9,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>80,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">D. &nbsp;&nbsp;Travel</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1. &nbsp;Domestic</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2. &nbsp;Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>4,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>56,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,800.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>26,300.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>217,700.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>158,544.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>153,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,187.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>241,887.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>158,544.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>153,000.00</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman"><B>Year 4</B></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Hepalife</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>135,500.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>25,456.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>96,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>50,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>9,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>80,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">D. &nbsp;&nbsp;Travel</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1. &nbsp;Domestic</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2. &nbsp;Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>4,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>56,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,800.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>26,300.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>225,300.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>159,756.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>153,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>25,030.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>250,330.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>159,756.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>153,000.00</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman"><B>Year 5</B></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Hepalife</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>74,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>26,728.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>96,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>50,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>9,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>60,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">D. &nbsp;&nbsp;Travel</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1. &nbsp;Domestic</P>
<P style="margin:0pt; padding-left:18pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">2. &nbsp;Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>4,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>56,000.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>24,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,811.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>26,300.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; font-family:Times New Roman; font-size:9pt"><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>145,800.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>161,028.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>153,000.00</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>16,200.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>162,011.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>161,028.00</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>153,000.00</P>
</TD></TR>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
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