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<TITLE>SECURITIES AND EXCHANGE COMMISSION &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TITLE>
<META NAME="author" CONTENT="Administrator">
<META NAME="date" CONTENT="03/08/2006">
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<P style="line-height:16pt; margin:0pt; padding-top:3pt; font-size:14pt; border-top:3pt solid #000000" align=center><FONT FACE="Times New Roman" COLOR=#000000><B>SECURITIES AND EXCHANGE COMMISSION</B></FONT></P>
<P style="margin:0pt" align=center><B>Washington, D.C. &nbsp;20549</B></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><B>CURRENT REPORT</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</P>
<P style="margin:0pt" align=right><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center><B><U>March 6, 2006</U></B></P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>Date of Report (Date of earliest event reported)</P>
<P style="margin:0pt"><BR></P>
<P style="line-height:20pt; margin:0pt; font-size:18pt" align=center><B><U>PHYTOMEDICAL TECHNOLOGIES, INC.</U></B></P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><B><U>NEVADA</U></B></P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(State or other jurisdiction of incorporation)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><B><U>000-28790</U></B></P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(Commission File Number)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><B><U>87-0429962B</U></B></P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(I.R.S. Employer Identification No.)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><B><U>1628 West 1st Avenue, Suite 216, Vancouver, British Columbia, &nbsp;V6J 1G1</U></B></P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(Address of principal executive offices)</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center><B><U>(800) 611-3388</U></B></P>
<P style="line-height:10pt; margin:0pt; font-size:8pt" align=center>(Registrant&#146;s telephone number, including area code)</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt; font-family:TimesNewRoman"><FONT FACE="TimesNewRoman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</FONT></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; font-family:TimesNewRoman">[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
<P style="margin:0pt; font-family:TimesNewRoman">[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
<P style="margin:0pt; font-family:TimesNewRoman">[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
<P style="margin:0pt; font-family:TimesNewRoman">[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</P>
<P style="margin:0pt; padding-bottom:3pt; border-bottom:3pt solid #000000" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt"><FONT FACE="Times New Roman"><B>SECTION 1. Registrant's Business and Operations</B></FONT></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify>None.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>SECTION 2. &nbsp;Financial Information</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify>None.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>SECTION 3. &nbsp;Securities and Trading Markets</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify>None.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>SECTION 4. &nbsp;Matters Related to Accountants and Financial Statements</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">None.</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><B>SECTION 5. &nbsp;Corporate Governance and Management</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=justify>None.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><B>SECTION 6. [Reserved]</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>N/A.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always" align=justify><B>SECTION 7. &nbsp;Regulation FD</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>None.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><B>SECTION 8. &nbsp;Other Events</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>On March 6, 2006, Polyphenol Technologies Corporation, a wholly-owned subsidiary of PhytoMedical Technologies, Inc. agreed to extend its Cooperative Research and Development Agreement (CRADA) with the USDA&#146;s Agricultural Research Service (ARS) and Iowa State University (ISU) for an additional two years through October 31, 2009.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>The USDA&#146;s Agricultural Research Service will receive $1,760,845, or $1,094,479 in additional funds, to support the research work and related administrative costs. &nbsp;This represents a 164% increase over our prior funding commitment of $666,366. </P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><B>SECTION 9. &nbsp;Financial Statements and Exhibits</B></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><U>Item 9.01 &nbsp;Financial Statements and Exhibits</U></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>The following exhibits are furnished as part of this report:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt" align=justify><U>Exhibit Number</U></P>
<P style="margin:0pt; text-indent:90pt" align=justify><U>Description</U></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:18pt" align=justify>10.1</P>
<P style="margin:0pt; text-indent:90pt" align=justify>Amendment and extension of Cooperative Research Agreement with the United States </P>
<P style="margin:0pt; padding-left:90pt" align=justify>Department of Agriculture&#146;s Agricultural Research Service and Iowa State University</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center><B>SIGNATURES</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" 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:0pt" align=justify><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-12pt; text-indent:33.5pt"><B>&nbsp;</B></P>
<P style="margin:0pt; text-indent:216pt"><B>PHYTOMEDICAL TECHNOLOGIES, INC.</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:216pt"><U>/s/ Harmel S. Rayat</U></P>
<P style="margin:0pt; text-indent:216pt">Harmel S. Rayat</P>
<P style="margin:0pt; text-indent:216pt">President and CEO</P>
<P style="margin:0pt; padding-left:288pt; text-indent:-72pt" align=justify>&nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify>Date: March 10, 2006</P>
<P style="margin:0pt" align=right><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; font-size:12pt; page-break-before:always" align=right><B>Exhibit 10.1</B></P>
<P style="margin:0pt" align=right><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=215.4></TD><TD width=84></TD><TD width=86.9></TD><TD width=165.1></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border:1pt solid #000000" valign=top width=399.2 colspan=2 rowspan=2><P style="line-height:8pt; margin:0pt; font-size:6pt" align=center>UNITED STATES DEPARTMENT OF AGRICULTURE</P>
<P style="margin:0pt" align=center><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt" align=center><B>RESEARCH AGREEMENT</B></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-top:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=336 colspan=2><P style="line-height:8pt; margin:0pt; font-size:6pt">TYPE OF RESEARCH AGREEMENT</P>
<P style="line-height:11pt; margin:0pt; font-size:9pt">Cooperative Research and Development Agreement</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=115.867><P style="line-height:8pt; margin:0pt; font-size:6pt">AGREEMENT NO.</P>
<P style="margin:0pt" align=center>58-3K95-5-1073</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="line-height:8pt; margin:0pt; font-size:6pt">TYPE OF ACTION</P>
<P style="margin:0pt">(3-WAY) Amendment No. 1</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=399.2 colspan=2 rowspan=2><P style="line-height:8pt; margin:0pt; font-size:6pt">AGENCY (Name and Address)</P>
<P style="margin:0pt" align=center>Agricultural Research Service</P>
<P style="margin:0pt" align=center>1400 Independence Avenue SW</P>
<P style="margin:0pt" align=center>Washington, D.C. 20250-0302</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=336 colspan=2><P style="line-height:8pt; margin:0pt; font-size:6pt">PERIOD OF AGREEMENT</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt" align=center>11/1/2004 through 10/31/2009</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=115.867><P style="line-height:8pt; margin:0pt; font-size:6pt">FEDERAL OBLIGATION</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">$ 0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="line-height:8pt; margin:0pt; font-size:6pt">CHANGE IN FEDERAL OBLIGATION </P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=735.2 colspan=4><P style="line-height:11pt; margin:0pt; font-size:9pt" align=center>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="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin-top:10pt; margin-bottom:2.5pt" align=center><B>Items</B></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin-top:10pt; margin-bottom:2.5pt" align=center><B>Descriptions</B></P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">1. &nbsp;Technology Transfer Coordinator</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Harry Danforth</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin-top:0pt; margin-bottom:-12pt; padding-left:17.1pt; text-indent:-18pt">2.</P>
<P style="margin:0pt; padding-left:17.1pt">Cooperator #1</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:12.6pt">Principle Investigator #1</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Polyphenol Technologies Corporation</P>
<P style="margin:0pt">Suite 216, 1628 West 1st Avenue</P>
<P style="margin:0pt">Vancouver, BC, Canada &nbsp;&nbsp;&nbsp;Tax ID # 98-0434391</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">Harmel S. Rayat , President, Polyphenol Technologies Corporation</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; padding-left:12.6pt; text-indent:-12.6pt">3. &nbsp;Cooperator #2</P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; padding-left:-0.9pt; text-indent:13.5pt">Principal Investigator #2</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Iowa State University</P>
<P style="margin:0pt">Office of Sponsored Programs Administration</P>
<P style="margin:0pt">2207 Pearson Hall, Rm. 15</P>
<P style="margin:0pt">Ames, IA &nbsp;50011-2207</P>
<P style="margin:0pt">Tax ID # <B>42-600-4224</B></P>
<P style="margin:0pt">George Kraus, 2759 Gilman Hall</P>
<P style="margin:0pt">Iowa State University, Ames, IA 50011-3111</P>
<P style="margin:0pt">Professor of Chemistry, Program Manager, BRC</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">4. &nbsp;USDA Laboratory</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Nutrient Requirements and Functions Lab.</P>
<P style="margin:0pt">10300 Baltimore Ave., Bldg. 307, Rm. 223, BARC-East</P>
<P style="margin:0pt">Beltsville, MD &nbsp;20705-2350</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">5. &nbsp;USDA Researcher (ADODR)</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Richard Anderson</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">6. &nbsp;National Program Leader &amp; Area</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Dr. David Klurfeld</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">7. &nbsp;Accounting Code</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">591-1235-650</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">8. &nbsp;Amount</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">$1,760,845</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">9. &nbsp;Finance Office</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Budget &amp; Fiscal Office</P>
<P style="margin:0pt">10300 Baltimore Ave., Bldg. 003, Room 306</P>
<P style="margin:0pt">Beltsville, MD &nbsp;20705-2350</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">10. &nbsp;Cris No.</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">1235-51520-035</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">11. &nbsp;Title of Project</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">Polyphenols complexes, similar to those found in cinnamon, as nutrient supplements and food additives</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt">12. &nbsp;Log #</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt">27318</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=735.2 colspan=4><P style="margin:0pt"><B>This Agreement is amended as follows:</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt">The duration of the agreement is extended for two (2) years. &nbsp;ARS will receive $1,094,479 in additional funds to support the research work. &nbsp;The State of Work payment schedule has been revised and is attached. &nbsp;ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME.</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" width=735.2 colspan=4><P style="line-height:9pt; margin:0pt; font-size:7pt" align=center><B>FOR THE UNITED STATES DEPARTEMENT OF AGRICULTURE</B></P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="line-height:8pt; margin:0pt; font-size:6pt">SIGNATURE</P>
<P style="margin:0pt"><U>/s/ Martha B. Steinbock</U></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=227.867 colspan=2><P style="line-height:8pt; margin:0pt; font-size:6pt">TYPED NAME</P>
<P style="margin:0pt" align=center>MARTHA B. STEINBOCK</P>
<P style="margin:0pt" align=center>Deputy Assistant Administrator</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=735.2 colspan=4><P style="line-height:10pt; margin:0pt; font-size:8pt" align=center><B>FOR THE COOPERATOR</B></P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="line-height:8pt; margin:0pt; font-size:6pt">SIGNATURE</P>
<P style="margin:0pt"><U>/s/ Harmel S. Rayat</U></P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=227.867 colspan=2><P style="line-height:8pt; margin:0pt; font-size:6pt">TYPED NAME AND TITLE</P>
<P style="margin:0pt" align=center>HARMEL S. RAYAT</P>
<P style="margin:0pt" align=center>President, Polyphenol Technologies</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center>03/06/06</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="line-height:8pt; margin:0pt; font-size:6pt">SIGNATURE</P>
<P style="margin:0pt"><U>/s/ Gary Gillet</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=227.867 colspan=2><P style="line-height:8pt; margin:0pt; font-size:6pt">TYPED NAME AND TITLE</P>
<P style="margin:0pt" align=center>For THANE J. PETERSON</P>
<P style="margin:0pt" align=center>Director, OSPA</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="margin:0pt" align=center><BR></P>
<P style="margin:0pt" align=center>2/13/06</P>
</TD></TR>
</TABLE>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; text-indent:-36pt; font-size:12pt; page-break-before:always" align=justify>&nbsp;PTC to Pay $1,760,845.00 to ARS. &nbsp;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; text-indent:36pt; font-size:12pt" align=justify>a.</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>The payment schedule is:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(1)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt" align=justify>Year 1: $<U>238,300</U> in 4 installments, the first of which is due to ARS within 30 days of the signing of this agreement and with the following three payments commencing at the hiring of the Post Doc for this Agreement and at three month intervals thereafter;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(2)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt" align=justify>Year 2: $482,964 in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(3)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt" align=justify>Year 3: $507,114 in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(4)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; font-size:12pt" align=justify>Year 4: $532,468 in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-36pt; font-size:12pt" align=justify>b.</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; font-size:12pt" align=justify>Make checks or money orders out to the &quot;Agricultural Research Service,&quot; cite Agreement No. 58-3K95-5-1072 thereon, and send to:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>USDA, ARS, BA, Budget and Fiscal Office</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>10300 Baltimore Ave.</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Bldg. 003, Rm. 306, BARC-West</P>
<P style="line-height:14pt; margin:0pt; text-indent:108pt; font-size:12pt" align=justify>Beltsville, Maryland 20705-2350</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:18pt; font-size:12pt" align=justify>PTC to Pay $264,686 to ISU:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>a.</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; font-size:12pt" align=justify>The payment schedule is:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:90pt; text-indent:-18pt; font-size:12pt" align=justify>(1) Year 1: &nbsp;$<U>60,000</U> to ISU in 4 quarterly installments, the first of which is due within 30 days of signing of this agreement and with the following three payments commencing at the hiring of the Post Doc for this Agreement and at three months intervals thereafter;</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:90pt; text-indent:-18pt; font-size:12pt" align=justify>(2) Year 2: $<U>62,251</U> to ISU in 4 quarterly installments, the first of which is due to ISU 3 months from the previous payment; and</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:108pt; text-indent:-36pt; font-size:12pt" align=justify>(3)</P>
<P style="line-height:14pt; margin:0pt; padding-left:108pt; text-indent:-18pt; font-size:12pt" align=justify>Year 3: $<U>70,295</U> to ISU in 4 quarterly installments, the first of which is due to ISU 3 months from the previous payment.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; padding-left:90pt; text-indent:-18pt; font-size:12pt" align=justify>(4) Year 4: $<U>72,140</U> to ISU in 4 quarterly installments, the first of which is due to ISU 3 months from the previous payment.</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:72pt; text-indent:-18pt; font-size:12pt" align=justify>b.</P>
<P style="line-height:14pt; margin:0pt; padding-left:72pt; font-size:12pt" align=justify>Make checks or money orders payable to Iowa State University, cite Kraus proposal 05-1072 thereon and send to:</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>Sponsored Programs Accounting</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>3609 ASB</P>
<P style="line-height:14pt; margin:0pt; text-indent:72pt; font-size:12pt" align=justify>Ames, Iowa 50011-3609</P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR></P>
<P style="margin:0pt" align=justify><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:14pt; margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-36pt; font-size:12pt; page-break-before:always" align=justify>4.</P>
<P style="line-height:14pt; margin:0pt; padding-left:36pt; font-size:12pt" align=justify>PTC 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:0pt" align=justify><BR></P>
<P style="margin:0pt" align=center><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:16pt; margin:0pt; font-size:14pt; page-break-before:always" align=center><B>SCHEDULE 3</B></P>
<P style="line-height:16pt; margin:0pt; font-size:14pt" align=center><B>ESTIMATED BUDGET</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><B>TOTAL YEARS</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=147.6></TD><TD width=84.15></TD><TD width=87.5></TD><TD width=87.5></TD><TD width=87.5></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS Receive </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Funds for</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>PTC</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ISU</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>to Receive from PTC</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>746,937</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>1,150,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>698,075</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>147,650</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">B. &nbsp;Equipment </P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>166,100</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>150,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>219,150</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>75,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>30,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>32,408</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt">D. &nbsp;Travel</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-size:11pt">a. Domestic</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-size:11pt">b. Foreign</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>68,050</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>52,288</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>11,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>17,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>40,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>35,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">E. Facilities</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>230,946</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>400,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>250,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">G. &nbsp;TOTAL DIRECT &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COSTS</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>1,483,471</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>1,803,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>1,053,075</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>180,058</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>277,374</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>234,150</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>84,628</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>1,760,845</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>1,803,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>1,287,225</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>264,686</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:5.5pt"><BR></P>
<P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt"><B>YEAR 1</B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=147.6></TD><TD width=84.15></TD><TD width=87.5></TD><TD width=87.5></TD><TD width=87.5></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS Receive </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Funds for</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>PTC</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ISU</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>to Receive from PTC</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>119,684</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>70,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>50,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>30,612</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">B. &nbsp;Equipment </P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>40,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>30,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>30,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>30,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>10,204</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt">D. &nbsp;Travel</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-size:11pt">a. Domestic</P>
<P style="line-height:13pt; margin:0pt; padding-left:36pt; font-size:11pt">b. Foreign</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">E. Facilities</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; text-indent:21.55pt; font-size:11pt">15,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>100,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>100,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">G. &nbsp;TOTAL DIRECT &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COSTS</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>214,684</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>237,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>160,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>40,816</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>23,616</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>19,184</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>238,300</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>237,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>160,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>60,000</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-bottom:5.5pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="margin:0pt; page-break-before:always"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt"><B>YEAR 2</B></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=147.6></TD><TD width=84.15></TD><TD width=87.5></TD><TD width=87.5></TD><TD width=87.5></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS Receive </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Funds for</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>PTC</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ISU</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;to Receive from PTC</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>198,970</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>360,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>300,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>32,143</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">B. &nbsp;Equipment </P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>30,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>40,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>53,901</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>15,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>10,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>10,204</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt">D. &nbsp;&nbsp;Travel</P>
<P style="line-height:13pt; margin:0pt; padding-left:54pt; font-size:11pt">a. Domestic</P>
<P style="line-height:13pt; margin:0pt; padding-left:54pt; font-size:11pt">b. Foreign</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>20,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>15,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>10,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">E. Facilities</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>68,500</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>100,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>50,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">G. &nbsp;TOTAL DIRECT &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COSTS</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>386,371</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>532,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>375,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>42,347</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>96,593</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>75,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>19,904</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>482,964</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>532,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>450,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>62,251</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR></P>
<P style="line-height:13pt; margin:0pt; padding-left:108pt; text-indent:-108pt; font-size:11pt"><B>YEAR 3</B></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=147.6></TD><TD width=84.15></TD><TD width=87.5></TD><TD width=87.5></TD><TD width=87.5></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS Receive </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Funds for</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>PTC</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ISU</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;to Receive from PTC</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>208,919</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>360,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>315,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>41,820</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">B. &nbsp;Equipment </P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>32,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>40,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>56,098</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>15,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>10,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>6,000</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt">D. &nbsp;Travel</P>
<P style="line-height:13pt; margin:0pt; padding-left:54pt; font-size:11pt">a. Domestic</P>
<P style="line-height:13pt; margin:0pt; padding-left:54pt; font-size:11pt">b. Foreign</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>21,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>15,750</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>10,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>10,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">E. Facilities</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>71,925</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>100,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>50,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">G. &nbsp;TOTAL DIRECT &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COSTS</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>405,692</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>532,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>395,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>47,820</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>101,422</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>75,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>22,475</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>507,114</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>532,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>470,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>70,295</P>
</TD></TR>
</TABLE>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt"><BR>
<BR></P>
<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
<P style="line-height:13pt; margin:0pt; padding-left:108pt; text-indent:-108pt; font-size:11pt; page-break-before:always"><B>YEAR 4</B></P>
<P style="margin:0pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD width=147.6></TD><TD width=84.15></TD><TD width=87.5></TD><TD width=87.5></TD><TD width=87.5></TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS Receive </P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>Funds for</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ARS In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>PTC</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>In-House</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt" align=center>ISU</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>&nbsp;to Receive from PTC</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>219,364</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>360,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>330,750</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>43,075</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">B. &nbsp;Equipment </P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>34,100</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>40,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>58,401</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>15,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>10,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>6,000</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin:0pt; font-size:11pt">D. &nbsp;Travel</P>
<P style="line-height:13pt; margin:0pt; padding-left:54pt; font-size:11pt">a. Domestic</P>
<P style="line-height:13pt; margin:0pt; padding-left:54pt; font-size:11pt">b. Foreign</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>22,050</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>16,538</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>2,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>5,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt" align=center><BR></P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>15,000</P>
<P style="line-height:13pt; margin:0pt; font-size:11pt" align=center>15,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">E. Facilities</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>75,521</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>100,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>50,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">G. &nbsp;TOTAL DIRECT &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COSTS</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>425,974</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>532,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>420,750</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>49,075</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>106,494</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>0</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>84,150</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>23,065</P>
</TD></TR>
<TR><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; 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="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>532,468</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>532,000</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>504,900</P>
</TD><TD style="padding-left:7.2pt; padding-top:0pt; padding-right:7.2pt; padding-bottom:0pt; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="line-height:13pt; margin-top:0pt; margin-bottom:5.5pt; font-size:11pt" align=center>72,140</P>
</TD></TR>
</TABLE>
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[{"type": "8-K", "sequence": "1", "filename": "march102006cradaamendment.htm", "secsgml_size_bytes": 111302}]
{"company-data": {"conformed-name": "PHYTOMEDICAL TECHNOLOGIES INC", "cik": "0001002422", "assigned-sic": "8093", "irs-number": "870429962", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-28790", "film-number": "06679642"}, "business-address": {"street1": "1628 WEST 1ST AVENUE", "street2": "SUITE 216", "city": "VANCOUVER", "state": "A1", "zip": "V6J 1G1", "phone": "604-659-5004"}, "mail-address": {"street1": "1628 WEST 1ST AVENUE", "street2": "SUITE 216", "city": "VANCOUVER", "state": "A1", "zip": "V6J 1G1"}, "former-company": [{"former-conformed-name": "ENTERPRISE TECHNOLOGIES INC", "date-changed": "20021220"}, {"former-conformed-name": "MEDCARE TECHNOLOGIES INC", "date-changed": "19960917"}]}
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
March 6, 2006
Date of Report (Date of earliest event reported)
PHYTOMEDICAL TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
NEVADA
(State or other jurisdiction of incorporation)
000-28790
(Commission File Number)
87-0429962B
(I.R.S. Employer Identification No.)
1628 West 1st Avenue, Suite 216, Vancouver, British Columbia,  V6J 1G1
(Address of principal executive offices)
(800) 611-3388
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
SECTION 1. Registrant's Business and Operations
None.
SECTION 2.  Financial Information
None.
SECTION 3.  Securities and Trading Markets
None.
SECTION 4.  Matters Related to Accountants and Financial Statements
None.
SECTION 5.  Corporate Governance and Management
None.
SECTION 6. [Reserved]
N/A.
SECTION 7.  Regulation FD
None.
SECTION 8.  Other Events
On March 6, 2006, Polyphenol Technologies Corporation, a wholly-owned subsidiary of PhytoMedical Technologies, Inc. agreed to extend its Cooperative Research and Development Agreement (CRADA) with the USDA's Agricultural Research Service (ARS) and Iowa State University (ISU) for an additional two years through October 31, 2009.
The USDA's Agricultural Research Service will receive $1,760,845, or $1,094,479 in additional funds, to support the research work and related administrative costs.  This represents a 164% increase over our prior funding commitment of $666,366.
SECTION 9.  Financial Statements and Exhibits
Item 9.01  Financial Statements and Exhibits
The following exhibits are furnished as part of this report:
Exhibit Number
Description
10.1
Amendment and extension of Cooperative Research Agreement with the United States
Department of Agriculture's Agricultural Research Service and Iowa State University
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PHYTOMEDICAL TECHNOLOGIES, INC.
/s/ Harmel S. Rayat
Harmel S. Rayat
President and CEO
Date: March 10, 2006
Exhibit 10.1
UNITED STATES DEPARTMENT OF AGRICULTURE
RESEARCH AGREEMENT
TYPE OF RESEARCH AGREEMENT
Cooperative Research and Development Agreement
AGREEMENT NO.
58-3K95-5-1073
TYPE OF ACTION
(3-WAY) Amendment No. 1
AGENCY (Name and Address)
Agricultural Research Service
1400 Independence Avenue SW
Washington, D.C. 20250-0302
PERIOD OF AGREEMENT
11/1/2004 through 10/31/2009
FEDERAL OBLIGATION
$ 0
CHANGE IN FEDERAL OBLIGATION
This Agreement is authorized by the Federal Technology Transfer Act, 15 USC 3710a,
et seq.,
and is governed by its terms.
Items
Descriptions
1.  Technology Transfer Coordinator
Harry Danforth
2.
Cooperator #1
Principle Investigator #1
Polyphenol Technologies Corporation
Suite 216, 1628 West 1st Avenue
Vancouver, BC, Canada    Tax ID # 98-0434391
Harmel S. Rayat , President, Polyphenol Technologies Corporation
3.  Cooperator #2
Principal Investigator #2
Iowa State University
Office of Sponsored Programs Administration
2207 Pearson Hall, Rm. 15
Ames, IA  50011-2207
Tax ID #
42-600-4224
George Kraus, 2759 Gilman Hall
Iowa State University, Ames, IA 50011-3111
Professor of Chemistry, Program Manager, BRC
4.  USDA Laboratory
Nutrient Requirements and Functions Lab.
10300 Baltimore Ave., Bldg. 307, Rm. 223, BARC-East
Beltsville, MD  20705-2350
5.  USDA Researcher (ADODR)
Richard Anderson
6.  National Program Leader & Area
Dr. David Klurfeld
7.  Accounting Code
591-1235-650
8.  Amount
$1,760,845
9.  Finance Office
Budget & Fiscal Office
10300 Baltimore Ave., Bldg. 003, Room 306
Beltsville, MD  20705-2350
10.  Cris No.
1235-51520-035
11.  Title of Project
Polyphenols complexes, similar to those found in cinnamon, as nutrient supplements and food additives
12.  Log #
27318
This Agreement is amended as follows:
The duration of the agreement is extended for two (2) years.  ARS will receive $1,094,479 in additional funds to support the research work.  The State of Work payment schedule has been revised and is attached.  ALL OTHER TERMS AND CONDITIONS REMAIN THE SAME.
FOR THE UNITED STATES DEPARTEMENT OF AGRICULTURE
SIGNATURE
/s/ Martha B. Steinbock
TYPED NAME
MARTHA B. STEINBOCK
Deputy Assistant Administrator
FOR THE COOPERATOR
SIGNATURE
/s/ Harmel S. Rayat
TYPED NAME AND TITLE
HARMEL S. RAYAT
President, Polyphenol Technologies
03/06/06
SIGNATURE
/s/ Gary Gillet
TYPED NAME AND TITLE
For THANE J. PETERSON
Director, OSPA
2/13/06
PTC to Pay $1,760,845.00 to ARS.
a.
The payment schedule is:
(1)
Year 1: $
238,300
in 4 installments, the first of which is due to ARS within 30 days of the signing of this agreement and with the following three payments commencing at the hiring of the Post Doc for this Agreement and at three month intervals thereafter;
(2)
Year 2: $482,964 in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment; and
(3)
Year 3: $507,114 in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment.
(4)
Year 4: $532,468 in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment.
b.
Make checks or money orders out to the "Agricultural Research Service," cite Agreement No. 58-3K95-5-1072 thereon, and send to:
USDA, ARS, BA, Budget and Fiscal Office
10300 Baltimore Ave.
Bldg. 003, Rm. 306, BARC-West
Beltsville, Maryland 20705-2350
PTC to Pay $264,686 to ISU:
a.
The payment schedule is:
(1) Year 1:  $
60,000
to ISU in 4 quarterly installments, the first of which is due within 30 days of signing of this agreement and with the following three payments commencing at the hiring of the Post Doc for this Agreement and at three months intervals thereafter;
(2) Year 2: $
62,251
to ISU in 4 quarterly installments, the first of which is due to ISU 3 months from the previous payment; and
(3)
Year 3: $
70,295
to ISU in 4 quarterly installments, the first of which is due to ISU 3 months from the previous payment.
(4) Year 4: $
72,140
to ISU in 4 quarterly installments, the first of which is due to ISU 3 months from the previous payment.
b.
Make checks or money orders payable to Iowa State University, cite Kraus proposal 05-1072 thereon and send to:
Sponsored Programs Accounting
3609 ASB
Ames, Iowa 50011-3609
4.
PTC 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.
SCHEDULE 3
ESTIMATED BUDGET
TOTAL YEARS
ARS Receive
Funds for
ARS In-House
PTC
In-House
ISU
to Receive from PTC
A.  Salaries and Wages
746,937
1,150,000
698,075
147,650
B.  Equipment
166,100
150,000
0
0
C.  Materials and Supplies
219,150
75,000
30,000
32,408
D.  Travel
a. Domestic
b. Foreign
68,050
52,288
11,000
17,000
40,000
35,000
E. Facilities
230,946
400,000
250,000
F.  Other Direct Costs
0
0
0
0
G.  TOTAL DIRECT           COSTS
1,483,471
1,803,000
1,053,075
180,058
H.  Indirect Costs
277,374
0
234,150
84,628
I. TOTAL COSTS…….…$
1,760,845
1,803,000
1,287,225
264,686
YEAR 1
ARS Receive
Funds for
ARS In-House
PTC
In-House
ISU
to Receive from PTC
A.  Salaries and Wages
119,684
70,000
50,000
30,612
B.  Equipment
40,000
30,000
0
C.  Materials and Supplies
30,000
30,000
0
10,204
D.  Travel
a. Domestic
b. Foreign
5,000
5,000
5,000
2,000
5,000
5,000
E. Facilities
15,000
100,000
100,000
F.  Other Direct Costs
0
0
0
G.  TOTAL DIRECT           COSTS
214,684
237,000
160,000
40,816
H.  Indirect Costs
23,616
19,184
I. TOTAL COSTS…….…$
238,300
237,000
160,000
60,000
YEAR 2
ARS Receive
Funds for
ARS In-House
PTC
In-House
ISU
to Receive from PTC
A.  Salaries and Wages
198,970
360,000
300,000
32,143
B.  Equipment
30,000
40,000
0
0
C.  Materials and Supplies
53,901
15,000
10,000
10,204
D.   Travel
a. Domestic
b. Foreign
20,000
15,000
2,000
5,000
10,000
5,000
E. Facilities
68,500
100,000
50,000
F.  Other Direct Costs
0
0
0
0
G.  TOTAL DIRECT           COSTS
386,371
532,000
375,000
42,347
H.  Indirect Costs
96,593
0
75,000
19,904
I. TOTAL COSTS…….…$
482,964
532,000
450,000
62,251
YEAR 3
ARS Receive
Funds for
ARS In-House
PTC
In-House
ISU
to Receive from PTC
A.  Salaries and Wages
208,919
360,000
315,000
41,820
B.  Equipment
32,000
40,000
0
0
C.  Materials and Supplies
56,098
15,000
10,000
6,000
D.  Travel
a. Domestic
b. Foreign
21,000
15,750
2,000
5,000
10,000
10,000
E. Facilities
71,925
100,000
50,000
F.  Other Direct Costs
0
0
0
G.  TOTAL DIRECT           COSTS
405,692
532,000
395,000
47,820
H.  Indirect Costs
101,422
0
75,000
22,475
I. TOTAL COSTS…….…$
507,114
532,000
470,000
70,295
YEAR 4
ARS Receive
Funds for
ARS In-House
PTC
In-House
ISU
to Receive from PTC
A.  Salaries and Wages
219,364
360,000
330,750
43,075
B.  Equipment
34,100
40,000
0
0
C.  Materials and Supplies
58,401
15,000
10,000
6,000
D.  Travel
a. Domestic
b. Foreign
22,050
16,538
2,000
5,000
15,000
15,000
E. Facilities
75,521
100,000
50,000
F.  Other Direct Costs
0
0
0
0
G.  TOTAL DIRECT           COSTS
425,974
532,000
420,750
49,075
H.  Indirect Costs
106,494
0
84,150
23,065
I. TOTAL COSTS…….…$
532,468
532,000
504,900
72,140