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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="12/02/2004">
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-top:3pt; width:522pt; line-height:16pt; font-family:Times New Roman; font-size:14pt; border-top:3pt solid #000000" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B>Washington, D.C. &nbsp;20549</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>FORM 8-K</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:246pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B>CURRENT REPORT</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=right><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B><U>December 1, 2004</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>Date of Report (Date of earliest event reported)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:20pt; font-family:Times New Roman; font-size:18pt" align=center><B><U>PHYTOMEDICAL TECHNOLOGIES, INC.</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:8pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>Nevada</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(State or other jurisdiction of incorporation)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:8pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>000-28790</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(Commission File Number)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:8pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>87-0429962B</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(I.R.S. Employer Identification No.)</P>
<P style="margin-top:10pt; margin-right:90pt; margin-bottom:2.5pt; width:522pt; font-family:Times New Roman" align=center><B><U>1628 West 1st Avenue, Suite 216, Vancouver, British Columbia, &nbsp;V6J 1G1</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center>(Address of principal executive offices)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B><U>(800) 611-3388</U></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-bottom:3pt; width:522pt; line-height:10pt; font-family:Times New Roman; font-size:8pt; border-bottom:3pt solid #000000" align=center>(Registrant&#146;s telephone number, including area code)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>SECTION 1. Registrant's Business and Operations</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><U>Item 1.01 Entry into a Material Definitive Agreement</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>On December 1, 2004, Polyphenol Technologies Corporation, a wholly owned subsidiary of Phytomedical Technologies, Inc., entered into a three-way Cooperative Research and Development Agreement (CRADA) with the USDA's Agricultural Research Service (ARS) and Iowa State University.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>SECTION 2. &nbsp;Financial Information</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>SECTION 3. &nbsp;Securities and Trading Markets</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>SECTION 4. &nbsp;Matters Related to Accountants and Financial Statements</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>SECTION 5. &nbsp;Corporate Governance and Management</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>SECTION 6. [Reserved]</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>N/A.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>SECTION 7. &nbsp;Regulation FD</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>None</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>SECTION 8. &nbsp;Other Events</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>None.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><B>SECTION 9. &nbsp;Financial Statements and Exhibits</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>The following exhibits are furnished as part of this report:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:63pt; text-indent:-63pt; width:459pt; font-family:Times New Roman" align=justify>Exhibit 10.1 &#150; Cooperative Research and Development Agreement (CRADA) between Polyphenol Technologies Corporation, &nbsp;USDA&#146;s Agricultural Research Services (ARS) and Iowa State University.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B>SIGNATURES</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<B><P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman"><BR></B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:33.5pt; width:522pt; font-family:Times New Roman"><B>&nbsp;</B></P>
<B><P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman">PHYTOMEDICAL TECHNOLOGIES, INC.</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:216pt; width:306pt; font-family:Times New Roman"><U>/s/ Indy Panchi</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman">Indy Panchi</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:216pt; width:522pt; font-family:Times New Roman">President and CEO</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:288pt; text-indent:-72pt; width:234pt; font-family:Times New Roman" align=justify>&nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify>Date: December 2, 2004</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right><B>Exhibit 10.1</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=right><BR></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:1pt solid #000000" valign=top width=399.2 colspan=2 rowspan=2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt" align=center>UNITED STATES DEPARTMENT OF AGRICULTURE</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:6pt" align=center><BR></P>
<P style="margin-top:10pt; margin-bottom:2.5pt; font-family:Times New Roman" align=center><B>RESEARCH AGREEMENT</B></P>
</TD><TD style="border-top:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=336 colspan=2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">TYPE OF RESEARCH AGREEMENT</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Cooperative Research and Development Agreement</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=115.867><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">AGREEMENT NO.</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>58-3K95-5-1073</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">TYPE OF ACTION</P>
<P style="margin:0pt; font-family:Times New Roman">NEW (3-WAY)</P>
</TD></TR>
<TR><TD style="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="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">AGENCY (Name and Address)</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Agricultural Research Service</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>1400 Independence Avenue SW</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Washington, D.C. 20250-0302</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=336 colspan=2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">PERIOD OF AGREEMENT</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:6pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>11/1/2004 through 10/31/2007</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=115.867><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">FEDERAL OBLIGATION</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:6pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">$ 0</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">CHANGE IN FEDERAL OBLIGATION </P>
</TD></TR>
<TR><TD style="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; line-height:11pt; font-family:Times New Roman; 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="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; font-family:Times New Roman" align=center><B>Items</B></P>
</TD><TD style="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; font-family:Times New Roman" align=center><B>Descriptions</B></P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">1. &nbsp;Technology Transfer Coordinator</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Harry Danforth</P>
</TD></TR>
<TR><TD style="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:36pt; text-indent:-18pt; font-family:Times New Roman">1.</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Cooperator #1</P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:18pt; text-indent:18pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:18pt; text-indent:18pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:18pt; text-indent:18pt; font-family:Times New Roman">Principle Investigator #1</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Polyphenol Technologies Corporation</P>
<P style="margin:0pt; font-family:Times New Roman">Suite 216, 1628 West 1st Avenue</P>
<P style="margin:0pt; font-family:Times New Roman">Vancouver, BC, Canada &nbsp;&nbsp;&nbsp;Tax ID # 98-0434391</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman">Harmel S. Rayat , President, Polyphenol Technologies Corporation</P>
</TD></TR>
<TR><TD style="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:36pt; text-indent:-18pt; font-family:Times New Roman">2.</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman">Cooperator #2</P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-6pt; text-indent:42pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; padding-left:-6pt; text-indent:42pt; font-family:Times New Roman">Principal Investigator #2</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Iowa State University</P>
<P style="margin:0pt; font-family:Times New Roman">Office of Sponsored Programs Administration</P>
<P style="margin:0pt; font-family:Times New Roman">2207 Pearson Hall, Rm. 15</P>
<P style="margin:0pt; font-family:Times New Roman">Ames, IA &nbsp;50011-2207</P>
<P style="margin:0pt; font-family:Times New Roman">Tax ID # <B>42-600-4224</B></P>
<P style="margin:0pt; font-family:Times New Roman">George Kraus, 2759 Gilman Hall</P>
<P style="margin:0pt; font-family:Times New Roman">Iowa State University, Ames, IA 50011-3111</P>
<P style="margin:0pt; font-family:Times New Roman">Professor of Chemistry, Program Manager, BRC</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">4. &nbsp;USDA Laboratory</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Nutrient Requirements and Functions Lab.</P>
<P style="margin:0pt; font-family:Times New Roman">10300 Baltimore Ave., Bldg. 307, Rm. 223, BARC-East</P>
<P style="margin:0pt; font-family:Times New Roman">Beltsville, MD &nbsp;20705-2350</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">5. &nbsp;USDA Researcher (ADODR)</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Richard Anderson</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">6. &nbsp;National Program Leader &amp; Area</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Dr. David Klurfeld</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">7. &nbsp;Accounting Code</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">591-1235-650</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">8. &nbsp;Amount</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">$666,366.00 (Beltsville) &nbsp;$186,865 (Iowa State)</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">9. &nbsp;Finance Office</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Budget &amp; Fiscal Office</P>
<P style="margin:0pt; font-family:Times New Roman">10300 Baltimore Ave., Bldg. 003, Room 306</P>
<P style="margin:0pt; font-family:Times New Roman">Beltsville, MD &nbsp;20705-2350</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">10. &nbsp;Cris No.</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">1235-51520-035</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">11. &nbsp;Title of Project</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">Polyphenols complexes, similar to those found in cinnamon, as nutrient supplements and food additives</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; font-family:Times New Roman">12. &nbsp;Log #</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=448 colspan=3><P style="margin:0pt; font-family:Times New Roman">27318</P>
</TD></TR>
<TR><TD style="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; font-family:Times New Roman"><B>Incorporated into this Agreement are the Following:</B></P>
<P style="margin:0pt; font-family:Times New Roman">1. &nbsp;Articles</P>
<P style="margin:0pt; font-family:Times New Roman">2. &nbsp;Schedule 1 - Certifications</P>
<P style="margin:0pt; font-family:Times New Roman">3. &nbsp;Schedule 2 &#150; Statement of Work</P>
<P style="margin:0pt; font-family:Times New Roman">4. &nbsp;Schedule 3 &#150; Estimated Budget</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" width=735.2 colspan=4><P style="margin:0pt; line-height:9pt; font-family:Times New Roman; font-size:7pt" align=center><B>FOR THE UNITED STATES DEPARTEMENT OF AGRICULTURE</B></P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">SIGNATURE</P>
<P style="margin:0pt; font-family:Times New Roman"><U>/s/ Richard J. Brenner</U></P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=227.867 colspan=2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">TYPED NAME</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>RICHARD J. BRENNER</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Authorized Departmental Officer</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133>&nbsp;</TD></TR>
<TR><TD style="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; line-height:10pt; font-family:Times New Roman; font-size:8pt" align=center><B>FOR THE COOPERATOR</B></P>
<P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt" align=center>(Signature of person(s) authorized by the governing body of the COOPERATOR to incur contractual obligations)</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">SIGNATURE</P>
<P style="margin:0pt; font-family:Times New Roman"><U>/s/ Harmel S. Rayat</U></P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=227.867 colspan=2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">TYPED NAME AND TITLE</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>HARMEL S. RAYAT</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>President, Polyphenol Technologies</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="margin:0pt; font-family:Times New Roman; font-size:6pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Dec 1, 2004</P>
</TD></TR>
<TR><TD style="border-left:1pt solid #000000; border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=287.2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">SIGNATURE</P>
<P style="margin:0pt; font-family:Times New Roman"><U>/s/ Thane J. Peterson</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;11/29/04</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=227.867 colspan=2><P style="margin:0pt; line-height:8pt; font-family:Times New Roman; font-size:6pt">TYPED NAME AND TITLE</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>THANE J. PETERSON</P>
<P style="margin:0pt; font-family:Times New Roman" align=center>Director, OSPA</P>
</TD><TD style="border-right:1pt solid #000000; border-bottom:1pt solid #000000" valign=top width=220.133><P style="margin:0pt; font-family:Times New Roman"><BR></P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>OTT COVER FORM</B></P>
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<HR style="padding-top:7.2pt; padding-bottom:7.2pt" noshade size=1.333>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><B>ARTICLES</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 1. &nbsp;Definitions</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">1.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">ARS means the United States Department of Agriculture, Agricultural Research Service.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">1.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">PTC means Polyphenol Technologies Corporation.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">1.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">ISU &nbsp;means Iowa State University.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">1.4</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Party or Parties means ARS and/or Polyphenol Technologies Corporation &amp; Iowa State University.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">1.5</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">Agreement means this Cooperative Research and Development Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">1.6</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Confidential Information means trade secrets or commercial or financial information that is privileged or confidential under the meaning of 5 USC 552(b)(4).</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">1.7</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Subject Invention means any invention or other intellectual property conceived or first reduced to practice under this Agreement that is patentable or otherwise protectable under Title 35 of the United States Code, under 7 USC 2321, et seq., or under the patent laws of a foreign country. &nbsp;Our current patent applied for entitled &#147;Insulin Potentiating Compounds from Cinnamon&#148;, Serial No. 10/046,088 will be used in this work but is outside the scope of this agreement since it was applied for prior to this agreement. </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">1.8</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Scope of Agreement means those activities set forth in Schedule 2, entitled &#147;Statement of Work.&#148;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">1.9</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:5pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Period of Agreement means that period set forth under Period of Agreement on the ARS Office of Technology Transfer cover form for the Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 2. &nbsp;Publications</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">2.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Subject to the requirements of confidentiality and preservation of rights in Subject Inventions, a Party may publish the results of this Agreement, PROVIDED:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">The other Parties are allowed to review the manuscript at least sixty (60) days prior to submission for publication by submission to the Authorized Agent.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">The publication shall acknowledge this Agreement and the contributions of each Party&#146;s personnel.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">The final decision as to the publication content rests with the Party that writes the publication.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">2.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Publication and/or other disclosure of the results of this Agreement shall be delayed no longer than sixty (60) days to preserve both United States of America and foreign patent rights in a Subject Invention.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Such a delay will only be granted if requested in writing; and</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">The requesting Party demonstrates promptness and diligence in seeking patent protection on the Subject Invention.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 3. &nbsp;Confidentiality</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">3.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Confidential Information, which is owned by one Party to this Agreement and disclosed to the other Parties, shall be labeled &#147;CONFIDENTIAL&#148; by the submitter and shall not be disclosed by the recipient without permission of the owner, EXCEPT in accordance with Article 2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">3.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">To the extent any Party orally submits its Confidential Information to other Parties, the submitting Party will prepare a document marked &#147;CONFIDENTIAL&#148; embodying or identifying in reasonable detail such orally submitted Confidential Information and provide the document to the other Parties within thirty (30) days of disclosure.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">3.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">A Party shall not be bound by confidentiality if the Confidential Information received from another Party:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Already is available to the public or known to the recipient;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Becomes available to the public through no fault of the recipient; or</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Is nonconfidentially received from another person or entity legally entitled to it.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">3.4<B> </B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><B></B>If ARS&#146; work under this Agreement has a result that would be, if independently developed by PTC &amp; ISU, Confidential Information, then ARS may agree not to disclose said result for a period not to exceed five (5) years from the date said Confidential Information is generated.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">3.5</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Confidential Information provided under this Agreement shall be used by the recipient only for the purpose of facilitating research activities covered under this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 4. &nbsp;Meetings, Reports and Records</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">4.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Frequent and effective communication is essential to the successful accomplishment of the objectives of this Agreement. &nbsp;To this end, the scientific representatives of the Parties shall meet (meetings need not be in person if agreed upon) at least once every four (4) months to exchange results, perform critiques, and make plans and recommendations. &nbsp;Written progress reports shall be supplied by each of the Parties to the other at least fifteen (15) calendar days prior to each meeting.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">4.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Any such plan or recommendation that is outside the Scope of Agreement shall be reduced to writing and referred to the Authorized Agent of each Party for appropriate action. &nbsp;Any such plan or recommendation so referred shall not be binding upon a Party unless incorporated into this Agreement by written amendment.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">4.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Each Party shall keep complete records relating to this research. &nbsp;All such records shall be available for inspection by the other Parties at reasonable times. &nbsp;The records, or true copies of them, shall be delivered to the other Parties upon request.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">4.4</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">The results of this Agreement and research data that are collected, compiled, and evaluated under this Agreement shall be shared and mutually interchanged by all Parties.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">4.5</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">A final report summarizing all data shall be submitted by each Party, separately or jointly, to Authorized Agents of the other Parties within sixty (60) days of the completion of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 5. &nbsp;Research Exclusion</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">5.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">The results of this Agreement owned or co-owned by the U.S. Government may be made available to others by ARS for bona fide noncommercial research purposes if:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Confidentiality is not breached; or</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Patent or Plant Variety Protection Certificate rights are not compromised.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">5.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:5pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Plants and animals, their genetic materials or information relating thereto, or parts thereof, covered by Plant Variety Protection Certificates, Plant Patents, or Utility Patents, owned or co-owned by ARS, may be made available by ARS to others for bona fide research purposes including the development of new animals or plants.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 6. &nbsp;Ownership of Inventions</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">6.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All rights, title, and interest in any Subject Invention made solely by employee(s) of ARS shall be owned by ARS.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">6.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All rights, title, and interest in any Subject Invention made solely by employee(s) of PTC shall be owned by PTC.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">6.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All rights, title, and interest in any Subject Invention made solely by employee(s) of ISU shall be owned by ISU.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">6.4</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:5pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All right, title, and interest in any Subject Invention made by at least one (1) employee of ARS and at least one employee of PTC shall be jointly owned by ARS and PTC.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:5pt; padding-left:18pt; width:504pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">6.5</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">All right, title, and interest in any Subject Invention made by at least one (1) employee of </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS and at least one employee of ISU shall be jointly owned by ARS and ISU.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:18pt; width:504pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">6.6</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All rights, title, and interest in any Subject Invention made by at least one (1) employee &nbsp;&nbsp;of &nbsp;PTC and at least one employee of ISU shall be jointly owned by PTC and ISU.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:18pt; width:504pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">6.7</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All right, title, and interest in any Subject Invention made by at least one (1) employee of ARS, at least one employee of PTC, and at least one (1) employee of ISU shall be Jointly owned by ARS, PTC, and ISU.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:4pt; padding-left:18pt; width:504pt; font-family:Times New Roman; font-size:8pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 7. &nbsp;Subject Invention Licenses</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">7.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">PTC &amp; ISU are granted an option to negotiate a co-exclusive license in ARS&#146;s share of each Subject Invention owned or co-owned by ARS for one or more field(s) of use encompassed by the Scope of Agreement. &nbsp;This license shall be consistent with the requirements of 35 USC 209(a), 209(b) (manufactured substantially in the U.S.), and 209(f) and other such terms and conditions as may be reasonable under the circumstances, as agreed upon through good faith negotiations between PTC &amp; ISU and ARS.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">7.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">This option shall terminate as to a particular Party if that party fails to:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; width:472.5pt; font-family:Times New Roman">Submit a complete application for an exclusive license within (sixty to one hundred &amp; twenty 60-120) days of being notified by ARS of an Inventions availability for licensing; or</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; width:472.5pt; font-family:Times New Roman">Submit a good faith written response to a written proposal of licensing terms within (forty-five to sixty 45-60) days of such proposal.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">7.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">PTC &amp; ISU grant ARS, on behalf of the U.S. Government, a royalty free, nonexclusive, worldwide, irrevocable, nontransferable license for any of &nbsp;&nbsp;PTC and /or ISU solely owned Subject Invention. &nbsp;The purpose of this license shall be to practice the Subject Invention or have it practiced, by or on behalf of the U.S. Government, for research or other U.S. Government purposes. &nbsp;15 USC 3710a(b)(2).</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 8. &nbsp;Subject Invention Information</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">8.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">The Authorized Agents or designees of each Party shall promptly make written disclosure to each other of each Subject Invention.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">8.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">This information shall be treated in confidence by the receiving parties, EXCEPT: it may be shared with those having a need to know.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">8.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Each Party shall provide, when requested by the other, all information in its possession, or true copies thereof, pertaining to a Subject Invention which may be necessary or useful in the preparation, filing, and prosecution of patent or Plant Variety Protection Certificate applications covering the Subject Invention.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 9. &nbsp;Intellectual Property Protection Applications</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">9.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All the Parties agree to cooperate with one another in the preparation, filing, and prosecution of Patent applications on Subject Inventions in the United States of America and any other country.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">9.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">The Authorized Agents of each party or their designee shall provide the other Parties with a copy of any such application on a Subject Invention within fourteen (14) calendar days of filing.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">9.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS shall have the first option to prepare and prosecute patent or Plant Variety Protection Certificate applications on Subject Inventions that are owned by the U.S. Government, PTC &amp; ISU shall have the first option to prepare and prosecute patent or Plant Variety Protection Certificate applications on Subjects Inventions that are owned by PTC &amp; ISU. &nbsp;ARS, PTC, and ISU agree to negotiate, which Party, shall have the first option to prepare and prosecute patent or Plant Variety Protection Certificate applications on co-owned Subject Inventions, at the time such inventions are disclosed.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 10. &nbsp;Use of Name or Endorsements</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">PTC &amp; ISU shall not in any way state or imply that this Agreement or the results of this Agreement are an endorsement of PTC and/or ISU organizational units, employees, products, or services except to the extent permission is specifically granted by ARS.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 11. &nbsp;Regulatory Compliance with Government Rules &amp; Regulations</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">11.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">PTC &amp; ISU are responsible for obtaining appropriate opinions, permits, or licenses from Federal or State agencies, which regulate research materials, or commercial products that may arise from the research work performed within the Scope of Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">11.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">In carrying out its responsibilities under this Article, PTC &amp; ISU shall:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Consult and coordinate regulatory approval actions with ARS; and</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">Give ARS&#146; Authorized Agent or designee a copy of any applications and opinions, permits, or licenses issued.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">11.3 </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:5pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All parties acknowledge and agree to comply with all applicable laws and regulations of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Animal Plant Health and Inspection Service, the Center for Disease Control, and /or Export Control Administration pertaining to possession or transference of technical information, biological materials, pathogens, toxins, genetic elements, genetically engineered microorganisms, vaccines, and the like.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 12. &nbsp;Liability</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">It is understood and agreed that none of the parties to this Agreement shall be responsible for any damages or injuries arising out of the conduct of activities governed by this Agreement, except to the extent that such damages and/or injuries were caused by the negligent or wrongful acts or omissions of its employees, agents or officers. &nbsp;ARS&#146; liability shall be limited by the Federal Tort Claims Act, 28 USC 2671, <I>et seq</I>.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 13. &nbsp;Termination</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">13.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Any Party may unilaterally terminate participation in this Agreement as a whole at any time by giving the other Parties written notice not less then sixty (60) calendar days prior to the desired termination date. &nbsp;Remaining Parties may determine to continue participation.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">13.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Articles 2. &#147;Publications&#148;, 3. &#147;Confidentiality&#148;, 6. &#147;Ownership of Inventions&#148;, 7. &#147;Subject Invention Licenses&#148;, 10. &#147;Use of Name or Endorsements&#148;, and 12. &#147;Liability&#148; shall survive the expiration or termination of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">13.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">If any Party unilaterally terminates participation this Agreement pursuant to Article 13.1, each Party shall return to the other or destroy, as shall be then agreed, any and all data and materials originated or provided by one Party to the other that is still in the receiving Party&#146;s possession within 30 days of termination, unless the Parties agree otherwise.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 14. &nbsp;Availability of Appropriations</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:18pt; width:504pt; font-family:Times New Roman">The continuance of this Agreement is subject to the passage by the Congress of the United States of an appropriation of funds from which expenditures may legally be made to cover ARS&#146; contributions.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 15. &nbsp;Disputes</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">15.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Any dispute arising under this Agreement, which cannot be readily resolved, shall be submitted jointly to the Authorized Agents, identified in Article 16 of these General Provisions.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">15.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Each Party agrees to seek in good faith to resolve the issue through negotiation or other forms of nonbonding/nonbinding dispute resolution processes mutually acceptable to the Parties.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">15.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Pending the resolution of any dispute or claim pursuant to Article 15, the Parties agree that performance of all obligations shall be pursued diligently.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 16. &nbsp;Notices and Authorized Agents</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Notices between the Parties and copies of correspondence among the scientific and/or technical representatives of each Party that interpret or may have a bearing on the legal effect of this Agreement&#146;s terms and conditions shall be sent to the Authorized Agents. &nbsp;Referencing Agreement Number 58-3K95-5-1073 thereon, send copies to:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS&#146; Authorized Agent</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">PTC Authorized Agent</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Richard J. Brenner</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Harmel S. Rayat</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">USDA-ARS-OTT</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Polyphenol Technologies Corporation</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">5601 Sunnyside Ave.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Suite 216, 1628 West 1st Avenue</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Beltsville, Maryland 20705-5131</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Vancouver, BC, Canada</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Tel.: 301-504-6905</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Tel.: &nbsp;604-659-5005</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Fax: 301-504-5060</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">Fax:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">E-mail: crada.ott@nps.ars.usda.gov</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:216pt; width:486pt; font-family:Times New Roman">E-mail: &nbsp;HSRayat@MontgomeryCorp.com</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">ISU&#146;s</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">Authorized Agent</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">Principal Investigator</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">Thane J. Peterson</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">George Kraus</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">2207 Pearson Hall, Rm. 15</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">2759 Gilman Hall</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">Office of Sponsored Programs Admin.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">Iowa State University</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">Ames, Iowa 50011</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">Ames, IA 50011-3111</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">Tel: 515-294-5225</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">Tel: 515-294-7794</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">Fax: 515-294-8000</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">Fax: 515-294-0105</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman">E-Mail: grants@iastate.edu</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:252pt; width:522pt; font-family:Times New Roman">E-Mail: gakraus@iastate.edu</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 17. &nbsp;Limitation on ARS&#146; Scientific Representative&#146;s Authority</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS&#146; Scientific Representative, also known as the Authorized Departmental Officer&#146;s Designated Representative (&#147;ADODR&#148;), is authorized to perform the research and development falling within the Scope of Agreement. &nbsp;This individual is not authorized to change or interpret with authority the terms and conditions of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article18. &nbsp;Assignments</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">18.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Neither this Agreement nor any rights or obligations of the Parties hereto shall be assigned or otherwise transferred by either Party without the prior written consent of the other Parties, which consent shall not be unreasonably withheld.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">18.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">In no case shall PTC &amp; ISU assign or transfer this Agreement to a Party not a citizen or legal resident of the United States.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">18.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS is an agency of the U.S. Government and any rights or obligations created under this Agreement are freely transferable within the U.S. Government and shall not be deemed an &#147;assignment&#148; as contemplated by this Article 18.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article19. &nbsp;Relationship of Parties</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">19.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS and PTC &amp; ISU act in their independent capacities in the performance of their respective functions under this Agreement and no Party is to be considered the officer, agent, or employee of another Party.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">19.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Each Party shall allow, consistent with policies and procedures of ARS, PTC, &amp; ISU, access to their facilities, as needed.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">19.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Each Party shall separately assign personnel, equipment, supplies, transportation, and facilities, as needed and available to meet respective responsibilities hereunder, such resources to remain the property of the assignor.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 20. &nbsp;Force Majeure</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">20.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">A Party shall not be liable for any unforeseeable event beyond its reasonable control not caused by the fault or negligence of such Party:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:72pt; text-indent:-36pt; width:450pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; width:472.5pt; font-family:Times New Roman">Which causes the Party to be unable to perform its obligations under this Agreement; and</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; width:472.5pt; font-family:Times New Roman">Which it has been unable to overcome by the exercise of due diligence.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:49.5pt; text-indent:-13.5pt; width:472.5pt; font-family:Times New Roman">c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:49.5pt; width:472.5pt; font-family:Times New Roman">This includes, but is not limited to, flood, drought, earthquake, storm, fire, pestilence, lightning and other natural catastrophes, epidemic, war, riot, civil disturbance or disobedience, strikes, labor dispute, failure or sabotage of either party&#146;s facilities or any order or injunction made by a court or public agency.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">20.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">In the event of the occurrence of such force majeure event, the Party unable to perform shall promptly notify the other Parties. &nbsp;It shall also:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:13.5pt; width:486pt; font-family:Times New Roman">Use its best efforts to resume performance as quickly as possible;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:60pt; text-indent:-24pt; width:462pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:60pt; text-indent:-10.5pt; width:462pt; font-family:Times New Roman">Suspend performance only for such period of time as is necessary as a result of the force majeure event.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 21. &nbsp;Amendment</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">21.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">If a Party desires a modification in this Agreement, the Parties shall confer in good faith to determine the desirability of such modification.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">21.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Such modification shall not be effective until a written amendment is signed by the Authorized Agents of all Parties.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 22. &nbsp;Severability</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">The illegality or invalidity of any provision of this Agreement shall not impair, affect, or invalidate the other provisions of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 23. &nbsp;Ambiguities</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS and PTC &amp; ISU agree that each party has reviewed this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply to the interpretation of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 24. &nbsp;Officials Not To Benefit</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">24.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">No Delegate to or Member of the Congress of the United States of America shall have a part of or benefit from this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman">24.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">This requirement does not include corporations if this Agreement is entered into for the &nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman">corporation&#146;s general benefit.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 25. &nbsp;Subcontracting Approval</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">25.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">A Party hereto desiring to obtain and use the services of a third Party via contract or otherwise shall give prior notice to the other Party, including details of the contract or other arrangement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">25.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">This requirement is to assure that confidentiality is not breached and rights in Subject Inventions are not compromised.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 26. &nbsp;Governing Law</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">26.1 </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">The construction, validity, performance, and effect of this entire Agreement shall be governed by the laws applicable to the location of the conduct of the research. &nbsp;If any claim is filed against ARS, it shall be in the Federal Courts located in the District of Columbia. &nbsp;If any claim is filed against ISU, it shall be in the courts of Iowa.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 27. &nbsp;Entire Agreement</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">27.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">This Agreement constitutes the entire agreement between PTC, ISU and ARS and supersedes all prior agreements and understandings between them with respect to its subject matter.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">27.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Any representations, promise, or condition in connection with such subject matter, which is not incorporated in this Agreement, shall not be binding upon either Party.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">27.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">No modification, renewal, extension, waiver, or termination of this Agreement or any of its provisions shall be binding upon the Party against whom enforcement of such modification, renewal, extension, waiver, or termination is sought, unless made in writing and signed on behalf of such Party by that Party&#146;s Authorized Agent.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">27.4</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">As used herein, the word &#147;termination&#148; includes any and all means of bringing to an end prior to its expiration by its own terms of this Agreement, or any provision thereof, whether by release, discharge, abandonment, or otherwise.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 28. &nbsp;Nonexpendable Equipment</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">28.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">All nonexpendable equipment purchased by any Party and contributed to this Agreement is and shall remain the property of the purchasing party.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">28.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Nonexpendable equipment placed upon or in ARS property by PTC and/or ISU must have ARS&#146; prior approval and be clearly marked as the owners&#146; property.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">Said property shall be transported and maintained at the owners&#146; expense, absent a clear prior commitment from ARS to transport and maintain the equipment.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">All property of PTC and/or ISU placed upon or in ARS property must be promptly removed by the owner at the owner&#146;s expense upon termination or completion of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">ARS shall retain any property of PTC and/or ISU and take title thereto if said property is not removed from ARS property within thirty (30) days of the termination or completion of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">d.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">ARS property disturbed by the placement of PTC and/or ISU property must be returned to their original condition by and at the expense of owner.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 29. &nbsp;Conduct of PTC &amp; ISU Employees</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">29.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">PTC and/or ISU employee(s) while engaged in work upon or in an ARS facility shall abide by ARS&#146; &#147;rules of the workplace.&#148;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">29.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Such rules address conduct, hours of work, laboratory procedures, equipment operating standards, research notebooks, etc.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">29.3</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS&#146; Scientific Representative shall respond to PTC &amp; ISU when queried concerning the details of ARS&#146; &#147;rules of the workplace.&#148;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 30. &nbsp;Insurance</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">30.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">PTC &amp; ISU shall provide Workers Compensation and other insurance coverage in types and amounts sufficient to protect the Federal Government&#146;s interest from damage </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">claims resulting from PTC &amp; ISU use of ARS facilities, equipment, materials, and supplies.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=center><U>Article 301. &nbsp;Supervision of PTC &amp; ISU Employee(s)</U></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">31.1</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS may supervise the technical work of PTC and/or ISU employee(s) while at the ARS facility and while engaged in work within the scope of this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman">31.2</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">ARS may not interfere in the employer/employee relationship between PTC &amp; ISU and employee(s) of PTC &amp; ISU.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14.55pt; font-family:Times New Roman; font-size:14pt" align=center><B>SCHEDULE 1</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14.55pt; font-family:Times New Roman; font-size:14pt" align=center><B>CERTIFICATIONS</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>PTC certifies that it:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>X</U> is, <U>&nbsp;&nbsp;&nbsp;</U>&nbsp;is not, a small business.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;is, <U>X</U> is not, a minority business.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>3.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Operates as:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;an individual</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;a partnership</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;X</U> a corporation</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>__ limited liability corporation</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>__ public institution</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>__ private institution</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>__ educational institution;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>4.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Has not paid or agreed to pay any company or person (other than a bona fide employee working solely for PTC) any fee, commission, percentage, or brokerage fee, contingent upon the award of this Agreement, and if so, agrees to furnish information relating thereto, as requested, by the Authorized Departmental Officer.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>5.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Has not employed or retained any company or person (other than a full-time bona fide employee working solely for PTC) to solicit or secure this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>6.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Its Principal Officers are not listed on the U.S. Government's list of debarred and suspended organizations and individuals; shall notify the Authorized Departmental Officer if so listed; and shall not subcontract or otherwise award to any organization or individual so listed.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>7.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Agrees to comply with the provisions of the Civil Rights Act of 1964, as amended, and Executive Order 11246, addressing equal opportunity and affirmative action.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>8.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Agrees to comply with the provisions of Title IX of the Education Amendment of 1972, 20&nbsp;USC&nbsp;1681, <I>et seq.</I>; Section 504 of the Rehabilitation Act of 1973, as amended, 29 USC 794; Age Discrimination Act of 1975, 42 USC 6101-6107; Clean Air Act, 42 USC 7401, <I>et seq.</I>; and Drug-Free Workplace Act of 1988, 41 USC 701, <I>et seq.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>9.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Is in a position to undertake, perform, and complete this Agreement and will diligently perform work in accordance with its provisions.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14.55pt; font-family:Times New Roman; font-size:14pt" align=center><B>SCHEDULE 1</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14.55pt; font-family:Times New Roman; font-size:14pt" align=center><B>CERTIFICATIONS</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>ISU certifies that it:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;is, <U>&nbsp;x &nbsp;</U>&nbsp;is not, a small business.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;is, <U>&nbsp;x &nbsp;</U>&nbsp;is not, a minority business.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>3.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Operates as:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;an individual</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;a partnership</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify><U>&nbsp;&nbsp;&nbsp;</U>&nbsp;a corporation</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>__ limited liability corporation</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>_<U>x</U> public institution</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>__ private institution</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; line-height:10.95pt; font-family:Times New Roman" align=justify>__ educational institution;</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>4.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Has not paid or agreed to pay any company or person (other than a bona fide employee working solely for ISU) any fee, commission, percentage, or brokerage fee, contingent upon the award of this Agreement, and if so, agrees to furnish information relating thereto, as requested, by the Authorized Departmental Officer.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>5.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Has not employed or retained any company or person (other than a full-time bona fide employee working solely for ISU) to solicit or secure this Agreement.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>6.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Its Principal Officers are not listed on the U.S. Government's list of debarred and suspended organizations and individuals; shall notify the Authorized Departmental Officer if so listed; and shall not subcontract or otherwise award to any organization or individual so listed.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>7.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Agrees to comply with the provisions of the Civil Rights Act of 1964, as amended, and Executive Order 11246, addressing equal opportunity and affirmative action.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>8.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Agrees to comply with the provisions of Title IX of the Education Amendment of 1972, 20&nbsp;USC&nbsp;1681, <I>et seq.</I>; Section 504 of the Rehabilitation Act of 1973, as amended, 29 USC 794; Age Discrimination Act of 1975, 42 USC 6101-6107; Clean Air Act, 42 USC 7401, <I>et seq.</I>; and Drug-Free Workplace Act of 1988, 41 USC 701, <I>et seq.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>9.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; line-height:10.95pt; font-family:Times New Roman" align=justify>Is in a position to undertake, perform, and complete this Agreement and will diligently perform work in accordance with its provisions.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:14.55pt; font-family:Times New Roman; font-size:14pt" align=center><B>SCHEDULE 2</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>STATEMENT OF WORK</B></P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>A.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>Introduction/Background</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">Diabetes is one of the leading causes of morbidity and mortality and the incidence of type 2 diabetes is expected to more than double in the next three decades. &nbsp;While the causes of diabetes are not entirely clear, it is known that diet plays a key role in the prevention and cure of diabetes. &nbsp;We have shown that aqueous extracts of the most commonly consumed spice, cinnamon, improve the action of insulin and help to control risk factors associated with diabetes including, glucose, insulin, cholesterol, triglycerides and related variables. We are able to isolate and characterize the insulin potentiating forms of natural and synthetic compounds. &nbsp;Compounds similar to the naturally occurring compounds will be synthesized in conjunction with collaborators. &nbsp;Animal and human testing will be done in conjunction with collaborators. &nbsp;It is anticipated that we will be able to synthesize compounds that improve the action of insulin that can be used to control blood sugars and fats and that these compounds can be used as nutrient supplements and(or) food and beverage additives.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>B.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>Objective</I></P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>The primary objective of this work is to synthesize the active components found in cinnamon and characterize their beneficial health effects in cell cultures systems, animals and ultimately humans.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify><I>C.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><I>Approach and Methodology</I></P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">We have isolated and characterized the insulin potentiating components found in cinnamon and have demonstrated that components found in cinnamon may be very important in the control of glucose intolerance and diabetes. &nbsp;While we know the structure of the active components, we are unable to isolate sufficient amounts to used as additives for foods and beverages. &nbsp;The stability of the isolated compounds is also a problem. &nbsp;In this collaboration, we hope to synthesize and characterize sufficient amounts of the insulin potentiating compounds that they can be used to improve health as additives added to high sugar foods and beverages. &nbsp;The synthetic work will be done in collaboration with George Kraus, Iowa State University, who has a proven track record in the synthesis and characterization of synthetic organic compounds and our CRADA partner Polyphenol Technologies. Our group at Beltsville will be responsible for the determination of the compounds to be synthesized and the biological testing of the compounds. &nbsp;Testing will involve chromatographic isolation and characterization of the synthesized compounds and determination of the insulin potentiating effects in cell cultures, animals and humans. &nbsp;Mechanistic studies involving the action of insulin will also be completed. &nbsp;Our CRADA partner, Polyphenol Technologies Corporation, will be responsible for assisting with the selection of highly qualified scientific personnel and selection of the most efficacious means of getting the active components into the food supply including nutrient supplements and adding to foods and beverages. They will also be responsible for the assuring that the proposed compounds are synthesized </P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>D.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>ARS</I><FONT FACE="WP TypographicSymbols"><I>&#146;</I></FONT><I> Responsibilities</I></P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Conduct these portions of the research project or perform the following tasks:</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><I></I>a. Isolate natural products from cinnamon that potentiate insulin activity. &nbsp;We will isolate trimmers, tetramers and polymers of the natural products as we have described (Anderson et al., Isolation and characterization of polyphenols type-A polymers from cinnamon with insulin-like biological activity. &nbsp;J. Agric. Food Chem. 52:65-70, 2004).</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>b. Further characterize natural products defined above using but not limited to high pressure liquid chromatography (HPLC), mass spectroscopy, HPLC/mass spectroscopy and nuclear magnetic resonance spectroscopy.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">c. In collaboration with scientists selected by us but of mutual consent, synthesize natural products and related products with enhanced insulin-like activity and(or) stability.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">d. Compare activities of synthetic products to those of the corresponding natural products using the following:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">-glucose uptake and oxidation by epididymal cells from rats (Broadhurst et al., Insulin-like biological activity of culinary and medicinal plant aqueous extracts in vitro. &nbsp;J. Agric Food Chem 48:849-52, 2000)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">-cell growth (Jurkat or related cells) effects determined by cell number and effects on cell cycle using flow cytometry (Schoene et al., Water-soluble polymeric polyphenols from cinnamon inhibit proliferation and alter cell cycle distribution patterns of hematologic tumor cell lines. &nbsp;Manuscript is being revised for publication and is available upon request) </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">-antioxidant effects on copper-induced LDL cholesterol (Plasma LDL will be isolated by the method of &nbsp;Esterbauer et al., Continuous monitoring of in vitro oxidation of human low density lipoproteins. Free Radical Res. Common, 6, 67-75, 1989) and oxidation &nbsp;initiated by copper chloride (1&#181;mol.for Apo B concentration of 0,05g/l) and &nbsp;changes in absorbance monitored as described( Gieseg and Esterbauer , Low density &nbsp;lipoprotein is saturable by pro-oxidant copper, FEBS letter, 343, 188-194, 1994)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">-rat feeding studies to determine the effects of the new compounds on glucose, insulin and clinical variables.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">e. Once active compounds have been synthesized, characterized and tested, apply for patents for synthesis and use of synthetic compounds as nutrient supplements or additives for foods and beverages.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">f. Plan future studies to determine the effects in human subjects with impaired glucose metabolism or diabetes.</P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:15.15pt; width:432pt; font-family:Times New Roman" align=justify>Provide 40 square feet of desk space with computer, printer etc in Building &nbsp;307C at the Beltsville Human Nutrition Research &nbsp;Center for each Cooperator person &nbsp;assigned to this project.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:51.15pt; padding-right:54pt; text-indent:-123.15pt; width:416.85pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:15.15pt; width:432pt; font-family:Times New Roman" align=justify>Provide utilities, services, and general support to the Cooperator's personnel, as needed and available.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:123.15pt; padding-right:54pt; text-indent:-123.15pt; width:344.85pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:15.15pt; width:432pt; font-family:Times New Roman" align=justify>Provide laboratory space and equipment to conduct proposed studies.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>E.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>PTC &amp; ISU Responsibilities </I>(Complete this section for both PTC &amp; ISU) </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>PTC Perform these portions of the research effort:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:15.15pt; width:432pt; font-family:Times New Roman" align=justify>Provide expertise on suitable products that are candidates for the cinnamon compounds to be effective in the control of risk factors associated with glucose intolerance and diabetes.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:36pt; width:432pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:15.15pt; width:432pt; font-family:Times New Roman" align=justify>Provide expertise regarding methods of testing efficac<B>y</B> of the compounds.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:15.15pt; width:432pt; font-family:Times New Roman" align=justify>Provide synthetic compounds that are suitable candidates to be used as food additives or nutrient supplements.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:-36pt; width:432pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>d.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; text-indent:15.15pt; width:432pt; font-family:Times New Roman" align=justify>Provide financial assistance to ARS and ISU for personnel and supplies to conduct the proposed research (see Budget).</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:123.15pt; padding-right:54pt; text-indent:-36pt; width:344.85pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:18pt; padding-right:54pt; width:450pt; font-family:Times New Roman" align=justify>2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:18pt; padding-right:54pt; text-indent:18pt; width:450pt; font-family:Times New Roman" align=justify>ISU Perform the following portions of the research effort:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman">a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman">Dr. Kraus and his postdoc will synthesize selected procyanidin trimmers isolated from cinnamon. The trimmers will have the structure shown below. &nbsp;The synthetic route will begin with commercially available catechin. &nbsp;The synthetic route will involve selective oxidations to sequentially form bonds a, b, and c. &nbsp;Dr. Kraus will send all synthetic compounds &nbsp;to Dr. Anderson for biological testing. &nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman">[GRAPHIC INSERTED HERE]</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-right:54pt; width:468pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:123.15pt; padding-right:54pt; text-indent:-36pt; width:344.85pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; padding-right:54pt; width:432pt; font-family:Times New Roman" align=justify>b. &nbsp;Synthesize related compounds as mutually agreed upon by collaborators and send to the Beltsville group for testing.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:51.15pt; padding-right:54pt; width:416.85pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>3.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>PTC to Pay $ 666,336.00 to ARS. &nbsp;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:60pt; width:522pt; font-family:Times New Roman" align=justify>The payment schedule is:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>(1)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:24pt; width:486pt; font-family:Times New Roman" align=justify>Year 1: $ <U>238,300</U> in 4 installments, the first of which is due to ARS 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 month intervals thereafter;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>(2)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:24pt; width:486pt; font-family:Times New Roman" align=justify>Year 2: $ <U>210,531</U> in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment; and</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>(3)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:24pt; width:486pt; font-family:Times New Roman" align=justify>Year 3: $ <U>217,505</U> in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:60pt; text-indent:-24pt; width:462pt; font-family:Times New Roman" align=justify>b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:60pt; width:462pt; font-family:Times New Roman" align=justify>Make checks or money orders out to the &quot;Agricultural Research Service,&quot; cite Agreement No. 58-3K95-5-1072 thereon, and send to:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:60pt; width:522pt; font-family:Times New Roman" align=justify>USDA, ARS, BA, Budget and Fiscal Office</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:60pt; width:522pt; font-family:Times New Roman" align=justify>10300 Baltimore Ave.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:60pt; width:522pt; font-family:Times New Roman" align=justify>Bldg. 003, Rm. 306, BARC-West</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:60pt; width:522pt; font-family:Times New Roman" align=justify>Beltsville, Maryland 20705-2350</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify>2.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>PTC to Pay $186,865 to ISU:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:18pt; width:504pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman" align=justify>The payment schedule is:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>(1)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman" align=justify>Year 1: $ <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 month intervals thereafter;</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:54pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>(2)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman" align=justify>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-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:54pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>(3)</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; text-indent:18pt; width:486pt; font-family:Times New Roman" align=justify>Year 3: $ <U>64,614</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-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:54pt; text-indent:-18pt; width:468pt; font-family:Times New Roman">b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:54pt; width:468pt; font-family:Times New Roman">Make checks or money orders payable to Iowa State University, cite Kraus proposal 05-1072 and sent to:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:72pt; width:522pt; font-family:Times New Roman" align=justify>Sponsored Programs Accounting</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:72pt; width:522pt; font-family:Times New Roman" align=justify>3609 ASB</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:72pt; width:522pt; font-family:Times New Roman" align=justify>Ames, Iowa 50011-3609</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>4.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>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-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; width:522pt; font-family:Times New Roman" align=justify><I>F.</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify><I>ARS, PTC, &amp; ISU Joint or Mutual Responsibilities</I></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; padding-left:36pt; text-indent:-36pt; width:486pt; font-family:Times New Roman" align=justify>1.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:36pt; width:486pt; font-family:Times New Roman" align=justify>Perform these portions of the effort jointly:</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>a.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>Conduct studies to determine suitable synthetic compounds </P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>b.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>Test safety and efficacy of compounds that improve the action of insulin</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:-12pt; text-indent:36pt; width:522pt; font-family:Times New Roman" align=justify>c.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; text-indent:54pt; width:522pt; font-family:Times New Roman" align=justify>Apply for patents that allow the technology to be used to improve health.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=justify><BR></P>
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<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:14pt" align=center><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>SCHEDULE 3</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; line-height:16pt; font-family:Times New Roman; font-size:14pt" align=center><B>ESTIMATED BUDGET</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>TOTAL YEARS</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>PTC</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ISU</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>to Receive from PTC</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>377,303</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>210,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>150,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>96,505</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>58,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>90,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>90,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>90,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,612</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:21pt; text-indent:-21pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1</P>
<P style="margin:0pt; padding-left:21pt; text-indent:-3pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;Travel</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">a.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Domestic</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">b.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>6,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>45,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>300,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>300,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>600,303</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>711,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>480,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>127,117</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>66,033</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>59,748</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>666,336</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>711,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>480,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>186,865</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>YEAR 1</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>PTC</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ISU</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>to Receive from PTC</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>119,684</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>70,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>50,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,612</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>40,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>10,204</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:21pt; text-indent:-21pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1</P>
<P style="margin:0pt; padding-left:21pt; text-indent:-3pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;Travel</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">a.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Domestic</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">b.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; text-indent:24.3pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">15,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>100,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>100,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>214,684</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>237,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>160,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>40,816</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>23,616</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>19,184</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>238,300</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>237,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>160,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>60,000</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman"><B>YEAR 2</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:108pt; text-indent:-108pt; width:414pt; font-family:Times New Roman"><BR></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>PTC</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ISU</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>&nbsp;to Receive from PTC</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>125,668</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>70,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>50,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>32,143</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>9,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>10,204</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:21pt; text-indent:-21pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1</P>
<P style="margin:0pt; padding-left:21pt; text-indent:-3pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;Travel</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">a.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Domestic</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">b.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>100,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>100,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>189,668</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>237,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>160,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>42,347</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>20,863</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>19,904</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>210,531</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>237,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>160,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>62,251</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:108pt; text-indent:-108pt; width:414pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:108pt; text-indent:-108pt; width:414pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:108pt; text-indent:-108pt; width:414pt; font-family:Times New Roman"><B>YEAR 3</B></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:108pt; text-indent:-108pt; width:414pt; font-family:Times New Roman"><BR></P>
<TABLE style="margin-right:90pt" cellspacing=0><TR><TD style="border:0.5pt solid #000000" valign=top width=196.8>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS Receive </P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>Funds for</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ARS In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>PTC</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>In-House</P>
</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>ISU</P>
<P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>&nbsp;to Receive from PTC</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">A. &nbsp;Salaries and Wages</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>131,950</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>70,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>50,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin:0pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>33,750</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">B. &nbsp;Equipment </P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>9,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">C. &nbsp;Materials and Supplies</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>30,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>4,796</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:-11pt; padding-left:21pt; text-indent:-21pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">1</P>
<P style="margin:0pt; padding-left:21pt; text-indent:-3pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">&nbsp;Travel</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">a.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Domestic</P>
<P style="margin-top:0pt; margin-bottom:-11pt; padding-left:72pt; text-indent:-36pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">b.</P>
<P style="margin:0pt; padding-left:72pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">Foreign</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>2,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; font-family:Times New Roman; font-size:9pt" align=center><BR></P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
<P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>5,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">E. Facilities</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>15,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>100,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>100,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">F. &nbsp;Other Direct Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>0</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">G. &nbsp;TOTAL DIRECT COSTS</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>195,951</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>237,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>160,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>43,954</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">H. &nbsp;Indirect Costs</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>21,555</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667>&nbsp;</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>20,660</P>
</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=196.8><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt">I. TOTAL COSTS&#133;&#133;.&#133;$</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=112.2><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>217,505</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>237,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>160,000</P>
</TD><TD style="border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.667><P style="margin-top:0pt; margin-bottom:4.5pt; line-height:11pt; font-family:Times New Roman; font-size:9pt" align=center>64,614</P>
</TD></TR>
</TABLE>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:108pt; text-indent:-108pt; width:414pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; padding-left:108pt; text-indent:-108pt; width:414pt; font-family:Times New Roman"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman">PTC is providing funds to ARS and ISU. &nbsp;ISU has no in-house costs associated with this CRADA.</P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-right:90pt; margin-bottom:0pt; width:522pt; font-family:Times New Roman" align=right><BR></P>
<BR>
<BR>
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{"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": "041181123"}, "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
December 1, 2004
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)
SECTION 1. Registrant's Business and Operations
Item 1.01 Entry into a Material Definitive Agreement
On December 1, 2004, Polyphenol Technologies Corporation, a wholly owned subsidiary of Phytomedical Technologies, Inc., entered into a three-way Cooperative Research and Development Agreement (CRADA) with the USDA's Agricultural Research Service (ARS) and Iowa State University.
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
None.
SECTION 9.  Financial Statements and Exhibits
The following exhibits are furnished as part of this report:
Exhibit 10.1 – Cooperative Research and Development Agreement (CRADA) between Polyphenol Technologies Corporation,  USDA's Agricultural Research Services (ARS) 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/ Indy Panchi
Indy Panchi
President and CEO
Date: December 2, 2004
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
NEW (3-WAY)
AGENCY (Name and Address)
Agricultural Research Service
1400 Independence Avenue SW
Washington, D.C. 20250-0302
PERIOD OF AGREEMENT
11/1/2004 through 10/31/2007
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
1.
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
2.
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
$666,366.00 (Beltsville)  $186,865 (Iowa State)
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
Incorporated into this Agreement are the Following:
1.  Articles
2.  Schedule 1 - Certifications
3.  Schedule 2 – Statement of Work
4.  Schedule 3 – Estimated Budget
FOR THE UNITED STATES DEPARTEMENT OF AGRICULTURE
SIGNATURE
/s/ Richard J. Brenner
TYPED NAME
RICHARD J. BRENNER
Authorized Departmental Officer
FOR THE COOPERATOR
(Signature of person(s) authorized by the governing body of the COOPERATOR to incur contractual obligations)
SIGNATURE
/s/ Harmel S. Rayat
TYPED NAME AND TITLE
HARMEL S. RAYAT
President, Polyphenol Technologies
Dec 1, 2004
SIGNATURE
/s/ Thane J. Peterson
11/29/04
TYPED NAME AND TITLE
THANE J. PETERSON
Director, OSPA
OTT COVER FORM
ARTICLES
Article 1.  Definitions
1.1
ARS means the United States Department of Agriculture, Agricultural Research Service.
1.2
PTC means Polyphenol Technologies Corporation.
1.3
ISU  means Iowa State University.
1.4
Party or Parties means ARS and/or Polyphenol Technologies Corporation & Iowa State University.
1.5
Agreement means this Cooperative Research and Development Agreement.
1.6
Confidential Information means trade secrets or commercial or financial information that is privileged or confidential under the meaning of 5 USC 552(b)(4).
1.7
Subject Invention means any invention or other intellectual property conceived or first reduced to practice under this Agreement that is patentable or otherwise protectable under Title 35 of the United States Code, under 7 USC 2321, et seq., or under the patent laws of a foreign country.  Our current patent applied for entitled "Insulin Potentiating Compounds from Cinnamon", Serial No. 10/046,088 will be used in this work but is outside the scope of this agreement since it was applied for prior to this agreement.
1.8
Scope of Agreement means those activities set forth in Schedule 2, entitled "Statement of Work."
1.9
Period of Agreement means that period set forth under Period of Agreement on the ARS Office of Technology Transfer cover form for the Agreement.
Article 2.  Publications
2.1
Subject to the requirements of confidentiality and preservation of rights in Subject Inventions, a Party may publish the results of this Agreement, PROVIDED:
a.
The other Parties are allowed to review the manuscript at least sixty (60) days prior to submission for publication by submission to the Authorized Agent.
b.
The publication shall acknowledge this Agreement and the contributions of each Party's personnel.
c.
The final decision as to the publication content rests with the Party that writes the publication.
2.2
Publication and/or other disclosure of the results of this Agreement shall be delayed no longer than sixty (60) days to preserve both United States of America and foreign patent rights in a Subject Invention.
a.
Such a delay will only be granted if requested in writing; and
b.
The requesting Party demonstrates promptness and diligence in seeking patent protection on the Subject Invention.
Article 3.  Confidentiality
3.1
Confidential Information, which is owned by one Party to this Agreement and disclosed to the other Parties, shall be labeled "CONFIDENTIAL" by the submitter and shall not be disclosed by the recipient without permission of the owner, EXCEPT in accordance with Article 2.
3.2
To the extent any Party orally submits its Confidential Information to other Parties, the submitting Party will prepare a document marked "CONFIDENTIAL" embodying or identifying in reasonable detail such orally submitted Confidential Information and provide the document to the other Parties within thirty (30) days of disclosure.
3.3
A Party shall not be bound by confidentiality if the Confidential Information received from another Party:
a.
Already is available to the public or known to the recipient;
b.
Becomes available to the public through no fault of the recipient; or
c.
Is nonconfidentially received from another person or entity legally entitled to it.
3.4
If ARS' work under this Agreement has a result that would be, if independently developed by PTC & ISU, Confidential Information, then ARS may agree not to disclose said result for a period not to exceed five (5) years from the date said Confidential Information is generated.
3.5
Confidential Information provided under this Agreement shall be used by the recipient only for the purpose of facilitating research activities covered under this Agreement.
Article 4.  Meetings, Reports and Records
4.1
Frequent and effective communication is essential to the successful accomplishment of the objectives of this Agreement.  To this end, the scientific representatives of the Parties shall meet (meetings need not be in person if agreed upon) at least once every four (4) months to exchange results, perform critiques, and make plans and recommendations.  Written progress reports shall be supplied by each of the Parties to the other at least fifteen (15) calendar days prior to each meeting.
4.2
Any such plan or recommendation that is outside the Scope of Agreement shall be reduced to writing and referred to the Authorized Agent of each Party for appropriate action.  Any such plan or recommendation so referred shall not be binding upon a Party unless incorporated into this Agreement by written amendment.
4.3
Each Party shall keep complete records relating to this research.  All such records shall be available for inspection by the other Parties at reasonable times.  The records, or true copies of them, shall be delivered to the other Parties upon request.
4.4
The results of this Agreement and research data that are collected, compiled, and evaluated under this Agreement shall be shared and mutually interchanged by all Parties.
4.5
A final report summarizing all data shall be submitted by each Party, separately or jointly, to Authorized Agents of the other Parties within sixty (60) days of the completion of this Agreement.
Article 5.  Research Exclusion
5.1
The results of this Agreement owned or co-owned by the U.S. Government may be made available to others by ARS for bona fide noncommercial research purposes if:
a.
Confidentiality is not breached; or
b.
Patent or Plant Variety Protection Certificate rights are not compromised.
5.2
Plants and animals, their genetic materials or information relating thereto, or parts thereof, covered by Plant Variety Protection Certificates, Plant Patents, or Utility Patents, owned or co-owned by ARS, may be made available by ARS to others for bona fide research purposes including the development of new animals or plants.
Article 6.  Ownership of Inventions
6.1
All rights, title, and interest in any Subject Invention made solely by employee(s) of ARS shall be owned by ARS.
6.2
All rights, title, and interest in any Subject Invention made solely by employee(s) of PTC shall be owned by PTC.
6.3
All rights, title, and interest in any Subject Invention made solely by employee(s) of ISU shall be owned by ISU.
6.4
All right, title, and interest in any Subject Invention made by at least one (1) employee of ARS and at least one employee of PTC shall be jointly owned by ARS and PTC.
6.5
All right, title, and interest in any Subject Invention made by at least one (1) employee of
ARS and at least one employee of ISU shall be jointly owned by ARS and ISU.
6.6
All rights, title, and interest in any Subject Invention made by at least one (1) employee   of  PTC and at least one employee of ISU shall be jointly owned by PTC and ISU.
6.7
All right, title, and interest in any Subject Invention made by at least one (1) employee of ARS, at least one employee of PTC, and at least one (1) employee of ISU shall be Jointly owned by ARS, PTC, and ISU.
Article 7.  Subject Invention Licenses
7.1
PTC & ISU are granted an option to negotiate a co-exclusive license in ARS's share of each Subject Invention owned or co-owned by ARS for one or more field(s) of use encompassed by the Scope of Agreement.  This license shall be consistent with the requirements of 35 USC 209(a), 209(b) (manufactured substantially in the U.S.), and 209(f) and other such terms and conditions as may be reasonable under the circumstances, as agreed upon through good faith negotiations between PTC & ISU and ARS.
7.2
This option shall terminate as to a particular Party if that party fails to:
a.
Submit a complete application for an exclusive license within (sixty to one hundred & twenty 60-120) days of being notified by ARS of an Inventions availability for licensing; or
b.
Submit a good faith written response to a written proposal of licensing terms within (forty-five to sixty 45-60) days of such proposal.
7.3
PTC & ISU grant ARS, on behalf of the U.S. Government, a royalty free, nonexclusive, worldwide, irrevocable, nontransferable license for any of   PTC and /or ISU solely owned Subject Invention.  The purpose of this license shall be to practice the Subject Invention or have it practiced, by or on behalf of the U.S. Government, for research or other U.S. Government purposes.  15 USC 3710a(b)(2).
Article 8.  Subject Invention Information
8.1
The Authorized Agents or designees of each Party shall promptly make written disclosure to each other of each Subject Invention.
8.2
This information shall be treated in confidence by the receiving parties, EXCEPT: it may be shared with those having a need to know.
8.3
Each Party shall provide, when requested by the other, all information in its possession, or true copies thereof, pertaining to a Subject Invention which may be necessary or useful in the preparation, filing, and prosecution of patent or Plant Variety Protection Certificate applications covering the Subject Invention.
Article 9.  Intellectual Property Protection Applications
9.1
All the Parties agree to cooperate with one another in the preparation, filing, and prosecution of Patent applications on Subject Inventions in the United States of America and any other country.
9.2
The Authorized Agents of each party or their designee shall provide the other Parties with a copy of any such application on a Subject Invention within fourteen (14) calendar days of filing.
9.3
ARS shall have the first option to prepare and prosecute patent or Plant Variety Protection Certificate applications on Subject Inventions that are owned by the U.S. Government, PTC & ISU shall have the first option to prepare and prosecute patent or Plant Variety Protection Certificate applications on Subjects Inventions that are owned by PTC & ISU.  ARS, PTC, and ISU agree to negotiate, which Party, shall have the first option to prepare and prosecute patent or Plant Variety Protection Certificate applications on co-owned Subject Inventions, at the time such inventions are disclosed.
Article 10.  Use of Name or Endorsements
PTC & ISU shall not in any way state or imply that this Agreement or the results of this Agreement are an endorsement of PTC and/or ISU organizational units, employees, products, or services except to the extent permission is specifically granted by ARS.
Article 11.  Regulatory Compliance with Government Rules & Regulations
11.1
PTC & ISU are responsible for obtaining appropriate opinions, permits, or licenses from Federal or State agencies, which regulate research materials, or commercial products that may arise from the research work performed within the Scope of Agreement.
11.2
In carrying out its responsibilities under this Article, PTC & ISU shall:
a.
Consult and coordinate regulatory approval actions with ARS; and
b.
Give ARS' Authorized Agent or designee a copy of any applications and opinions, permits, or licenses issued.
11.3
All parties acknowledge and agree to comply with all applicable laws and regulations of       the Animal Plant Health and Inspection Service, the Center for Disease Control, and /or Export Control Administration pertaining to possession or transference of technical information, biological materials, pathogens, toxins, genetic elements, genetically engineered microorganisms, vaccines, and the like.
Article 12.  Liability
It is understood and agreed that none of the parties to this Agreement shall be responsible for any damages or injuries arising out of the conduct of activities governed by this Agreement, except to the extent that such damages and/or injuries were caused by the negligent or wrongful acts or omissions of its employees, agents or officers.  ARS' liability shall be limited by the Federal Tort Claims Act, 28 USC 2671,
et seq
.
Article 13.  Termination
13.1
Any Party may unilaterally terminate participation in this Agreement as a whole at any time by giving the other Parties written notice not less then sixty (60) calendar days prior to the desired termination date.  Remaining Parties may determine to continue participation.
13.2
Articles 2. "Publications", 3. "Confidentiality", 6. "Ownership of Inventions", 7. "Subject Invention Licenses", 10. "Use of Name or Endorsements", and 12. "Liability" shall survive the expiration or termination of this Agreement.
13.3
If any Party unilaterally terminates participation this Agreement pursuant to Article 13.1, each Party shall return to the other or destroy, as shall be then agreed, any and all data and materials originated or provided by one Party to the other that is still in the receiving Party's possession within 30 days of termination, unless the Parties agree otherwise.
Article 14.  Availability of Appropriations
The continuance of this Agreement is subject to the passage by the Congress of the United States of an appropriation of funds from which expenditures may legally be made to cover ARS' contributions.
Article 15.  Disputes
15.1
Any dispute arising under this Agreement, which cannot be readily resolved, shall be submitted jointly to the Authorized Agents, identified in Article 16 of these General Provisions.
15.2
Each Party agrees to seek in good faith to resolve the issue through negotiation or other forms of nonbonding/nonbinding dispute resolution processes mutually acceptable to the Parties.
15.3
Pending the resolution of any dispute or claim pursuant to Article 15, the Parties agree that performance of all obligations shall be pursued diligently.
Article 16.  Notices and Authorized Agents
Notices between the Parties and copies of correspondence among the scientific and/or technical representatives of each Party that interpret or may have a bearing on the legal effect of this Agreement's terms and conditions shall be sent to the Authorized Agents.  Referencing Agreement Number 58-3K95-5-1073 thereon, send copies to:
ARS' Authorized Agent
PTC Authorized Agent
Richard J. Brenner
Harmel S. Rayat
USDA-ARS-OTT
Polyphenol Technologies Corporation
5601 Sunnyside Ave.
Suite 216, 1628 West 1st Avenue
Beltsville, Maryland 20705-5131
Vancouver, BC, Canada
Tel.: 301-504-6905
Tel.:  604-659-5005
Fax: 301-504-5060
Fax:
E-mail: crada.ott@nps.ars.usda.gov
E-mail:  HSRayat@MontgomeryCorp.com
ISU's
Authorized Agent
Principal Investigator
Thane J. Peterson
George Kraus
2207 Pearson Hall, Rm. 15
2759 Gilman Hall
Office of Sponsored Programs Admin.
Iowa State University
Ames, Iowa 50011
Ames, IA 50011-3111
Tel: 515-294-5225
Tel: 515-294-7794
Fax: 515-294-8000
Fax: 515-294-0105
E-Mail: grants@iastate.edu
E-Mail: gakraus@iastate.edu
Article 17.  Limitation on ARS' Scientific Representative's Authority
ARS' Scientific Representative, also known as the Authorized Departmental Officer's Designated Representative ("ADODR"), is authorized to perform the research and development falling within the Scope of Agreement.  This individual is not authorized to change or interpret with authority the terms and conditions of this Agreement.
Article18.  Assignments
18.1
Neither this Agreement nor any rights or obligations of the Parties hereto shall be assigned or otherwise transferred by either Party without the prior written consent of the other Parties, which consent shall not be unreasonably withheld.
18.2
In no case shall PTC & ISU assign or transfer this Agreement to a Party not a citizen or legal resident of the United States.
18.3
ARS is an agency of the U.S. Government and any rights or obligations created under this Agreement are freely transferable within the U.S. Government and shall not be deemed an "assignment" as contemplated by this Article 18.
Article19.  Relationship of Parties
19.1
ARS and PTC & ISU act in their independent capacities in the performance of their respective functions under this Agreement and no Party is to be considered the officer, agent, or employee of another Party.
19.2
Each Party shall allow, consistent with policies and procedures of ARS, PTC, & ISU, access to their facilities, as needed.
19.3
Each Party shall separately assign personnel, equipment, supplies, transportation, and facilities, as needed and available to meet respective responsibilities hereunder, such resources to remain the property of the assignor.
Article 20.  Force Majeure
20.1
A Party shall not be liable for any unforeseeable event beyond its reasonable control not caused by the fault or negligence of such Party:
a.
Which causes the Party to be unable to perform its obligations under this Agreement; and
b.
Which it has been unable to overcome by the exercise of due diligence.
c.
This includes, but is not limited to, flood, drought, earthquake, storm, fire, pestilence, lightning and other natural catastrophes, epidemic, war, riot, civil disturbance or disobedience, strikes, labor dispute, failure or sabotage of either party's facilities or any order or injunction made by a court or public agency.
20.2
In the event of the occurrence of such force majeure event, the Party unable to perform shall promptly notify the other Parties.  It shall also:
a.
Use its best efforts to resume performance as quickly as possible;
b.
Suspend performance only for such period of time as is necessary as a result of the force majeure event.
Article 21.  Amendment
21.1
If a Party desires a modification in this Agreement, the Parties shall confer in good faith to determine the desirability of such modification.
21.2
Such modification shall not be effective until a written amendment is signed by the Authorized Agents of all Parties.
Article 22.  Severability
The illegality or invalidity of any provision of this Agreement shall not impair, affect, or invalidate the other provisions of this Agreement.
Article 23.  Ambiguities
ARS and PTC & ISU agree that each party has reviewed this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply to the interpretation of this Agreement.
Article 24.  Officials Not To Benefit
24.1
No Delegate to or Member of the Congress of the United States of America shall have a part of or benefit from this Agreement.
24.2
This requirement does not include corporations if this Agreement is entered into for the
corporation's general benefit.
Article 25.  Subcontracting Approval
25.1
A Party hereto desiring to obtain and use the services of a third Party via contract or otherwise shall give prior notice to the other Party, including details of the contract or other arrangement.
25.2
This requirement is to assure that confidentiality is not breached and rights in Subject Inventions are not compromised.
Article 26.  Governing Law
26.1
The construction, validity, performance, and effect of this entire Agreement shall be governed by the laws applicable to the location of the conduct of the research.  If any claim is filed against ARS, it shall be in the Federal Courts located in the District of Columbia.  If any claim is filed against ISU, it shall be in the courts of Iowa.
Article 27.  Entire Agreement
27.1
This Agreement constitutes the entire agreement between PTC, ISU and ARS and supersedes all prior agreements and understandings between them with respect to its subject matter.
27.2
Any representations, promise, or condition in connection with such subject matter, which is not incorporated in this Agreement, shall not be binding upon either Party.
27.3
No modification, renewal, extension, waiver, or termination of this Agreement or any of its provisions shall be binding upon the Party against whom enforcement of such modification, renewal, extension, waiver, or termination is sought, unless made in writing and signed on behalf of such Party by that Party's Authorized Agent.
27.4
As used herein, the word "termination" includes any and all means of bringing to an end prior to its expiration by its own terms of this Agreement, or any provision thereof, whether by release, discharge, abandonment, or otherwise.
Article 28.  Nonexpendable Equipment
28.1
All nonexpendable equipment purchased by any Party and contributed to this Agreement is and shall remain the property of the purchasing party.
28.2
Nonexpendable equipment placed upon or in ARS property by PTC and/or ISU must have ARS' prior approval and be clearly marked as the owners' property.
a.
Said property shall be transported and maintained at the owners' expense, absent a clear prior commitment from ARS to transport and maintain the equipment.
b.
All property of PTC and/or ISU placed upon or in ARS property must be promptly removed by the owner at the owner's expense upon termination or completion of this Agreement.
c.
ARS shall retain any property of PTC and/or ISU and take title thereto if said property is not removed from ARS property within thirty (30) days of the termination or completion of this Agreement.
d.
ARS property disturbed by the placement of PTC and/or ISU property must be returned to their original condition by and at the expense of owner.
Article 29.  Conduct of PTC & ISU Employees
29.1
PTC and/or ISU employee(s) while engaged in work upon or in an ARS facility shall abide by ARS' "rules of the workplace."
29.2
Such rules address conduct, hours of work, laboratory procedures, equipment operating standards, research notebooks, etc.
29.3
ARS' Scientific Representative shall respond to PTC & ISU when queried concerning the details of ARS' "rules of the workplace."
Article 30.  Insurance
30.1
PTC & ISU shall provide Workers Compensation and other insurance coverage in types and amounts sufficient to protect the Federal Government's interest from damage
claims resulting from PTC & ISU use of ARS facilities, equipment, materials, and supplies.
Article 301.  Supervision of PTC & ISU Employee(s)
31.1
ARS may supervise the technical work of PTC and/or ISU employee(s) while at the ARS facility and while engaged in work within the scope of this Agreement.
31.2
ARS may not interfere in the employer/employee relationship between PTC & ISU and employee(s) of PTC & ISU.
SCHEDULE 1
CERTIFICATIONS
PTC certifies that it:
1.
X
is,
is not, a small business.
2.
is,
X
is not, a minority business.
3.
Operates as:
an individual
a partnership
X
a corporation
__ limited liability corporation
__ public institution
__ private institution
__ educational institution;
4.
Has not paid or agreed to pay any company or person (other than a bona fide employee working solely for PTC) any fee, commission, percentage, or brokerage fee, contingent upon the award of this Agreement, and if so, agrees to furnish information relating thereto, as requested, by the Authorized Departmental Officer.
5.
Has not employed or retained any company or person (other than a full-time bona fide employee working solely for PTC) to solicit or secure this Agreement.
6.
Its Principal Officers are not listed on the U.S. Government's list of debarred and suspended organizations and individuals; shall notify the Authorized Departmental Officer if so listed; and shall not subcontract or otherwise award to any organization or individual so listed.
7.
Agrees to comply with the provisions of the Civil Rights Act of 1964, as amended, and Executive Order 11246, addressing equal opportunity and affirmative action.
8.
Agrees to comply with the provisions of Title IX of the Education Amendment of 1972, 20 USC 1681,
et seq.
; Section 504 of the Rehabilitation Act of 1973, as amended, 29 USC 794; Age Discrimination Act of 1975, 42 USC 6101-6107; Clean Air Act, 42 USC 7401,
et seq.
; and Drug-Free Workplace Act of 1988, 41 USC 701,
et seq.
9.
Is in a position to undertake, perform, and complete this Agreement and will diligently perform work in accordance with its provisions.
SCHEDULE 1
CERTIFICATIONS
ISU certifies that it:
1.
is,
x
is not, a small business.
2.
is,
x
is not, a minority business.
3.
Operates as:
an individual
a partnership
a corporation
__ limited liability corporation
_
x
public institution
__ private institution
__ educational institution;
4.
Has not paid or agreed to pay any company or person (other than a bona fide employee working solely for ISU) any fee, commission, percentage, or brokerage fee, contingent upon the award of this Agreement, and if so, agrees to furnish information relating thereto, as requested, by the Authorized Departmental Officer.
5.
Has not employed or retained any company or person (other than a full-time bona fide employee working solely for ISU) to solicit or secure this Agreement.
6.
Its Principal Officers are not listed on the U.S. Government's list of debarred and suspended organizations and individuals; shall notify the Authorized Departmental Officer if so listed; and shall not subcontract or otherwise award to any organization or individual so listed.
7.
Agrees to comply with the provisions of the Civil Rights Act of 1964, as amended, and Executive Order 11246, addressing equal opportunity and affirmative action.
8.
Agrees to comply with the provisions of Title IX of the Education Amendment of 1972, 20 USC 1681,
et seq.
; Section 504 of the Rehabilitation Act of 1973, as amended, 29 USC 794; Age Discrimination Act of 1975, 42 USC 6101-6107; Clean Air Act, 42 USC 7401,
et seq.
; and Drug-Free Workplace Act of 1988, 41 USC 701,
et seq.
9.
Is in a position to undertake, perform, and complete this Agreement and will diligently perform work in accordance with its provisions.
SCHEDULE 2
STATEMENT OF WORK
A.
Introduction/Background
Diabetes is one of the leading causes of morbidity and mortality and the incidence of type 2 diabetes is expected to more than double in the next three decades.  While the causes of diabetes are not entirely clear, it is known that diet plays a key role in the prevention and cure of diabetes.  We have shown that aqueous extracts of the most commonly consumed spice, cinnamon, improve the action of insulin and help to control risk factors associated with diabetes including, glucose, insulin, cholesterol, triglycerides and related variables. We are able to isolate and characterize the insulin potentiating forms of natural and synthetic compounds.  Compounds similar to the naturally occurring compounds will be synthesized in conjunction with collaborators.  Animal and human testing will be done in conjunction with collaborators.  It is anticipated that we will be able to synthesize compounds that improve the action of insulin that can be used to control blood sugars and fats and that these compounds can be used as nutrient supplements and(or) food and beverage additives.
B.
Objective
The primary objective of this work is to synthesize the active components found in cinnamon and characterize their beneficial health effects in cell cultures systems, animals and ultimately humans.
C.
Approach and Methodology
We have isolated and characterized the insulin potentiating components found in cinnamon and have demonstrated that components found in cinnamon may be very important in the control of glucose intolerance and diabetes.  While we know the structure of the active components, we are unable to isolate sufficient amounts to used as additives for foods and beverages.  The stability of the isolated compounds is also a problem.  In this collaboration, we hope to synthesize and characterize sufficient amounts of the insulin potentiating compounds that they can be used to improve health as additives added to high sugar foods and beverages.  The synthetic work will be done in collaboration with George Kraus, Iowa State University, who has a proven track record in the synthesis and characterization of synthetic organic compounds and our CRADA partner Polyphenol Technologies. Our group at Beltsville will be responsible for the determination of the compounds to be synthesized and the biological testing of the compounds.  Testing will involve chromatographic isolation and characterization of the synthesized compounds and determination of the insulin potentiating effects in cell cultures, animals and humans.  Mechanistic studies involving the action of insulin will also be completed.  Our CRADA partner, Polyphenol Technologies Corporation, will be responsible for assisting with the selection of highly qualified scientific personnel and selection of the most efficacious means of getting the active components into the food supply including nutrient supplements and adding to foods and beverages. They will also be responsible for the assuring that the proposed compounds are synthesized
D.
ARS
'
Responsibilities
1.
Conduct these portions of the research project or perform the following tasks:
a. Isolate natural products from cinnamon that potentiate insulin activity.  We will isolate trimmers, tetramers and polymers of the natural products as we have described (Anderson et al., Isolation and characterization of polyphenols type-A polymers from cinnamon with insulin-like biological activity.  J. Agric. Food Chem. 52:65-70, 2004).
b. Further characterize natural products defined above using but not limited to high pressure liquid chromatography (HPLC), mass spectroscopy, HPLC/mass spectroscopy and nuclear magnetic resonance spectroscopy.
c. In collaboration with scientists selected by us but of mutual consent, synthesize natural products and related products with enhanced insulin-like activity and(or) stability.
d. Compare activities of synthetic products to those of the corresponding natural products using the following:
-glucose uptake and oxidation by epididymal cells from rats (Broadhurst et al., Insulin-like biological activity of culinary and medicinal plant aqueous extracts in vitro.  J. Agric Food Chem 48:849-52, 2000)
-cell growth (Jurkat or related cells) effects determined by cell number and effects on cell cycle using flow cytometry (Schoene et al., Water-soluble polymeric polyphenols from cinnamon inhibit proliferation and alter cell cycle distribution patterns of hematologic tumor cell lines.  Manuscript is being revised for publication and is available upon request)
-antioxidant effects on copper-induced LDL cholesterol (Plasma LDL will be isolated by the method of  Esterbauer et al., Continuous monitoring of in vitro oxidation of human low density lipoproteins. Free Radical Res. Common, 6, 67-75, 1989) and oxidation  initiated by copper chloride (1µmol.for Apo B concentration of 0,05g/l) and  changes in absorbance monitored as described( Gieseg and Esterbauer , Low density  lipoprotein is saturable by pro-oxidant copper, FEBS letter, 343, 188-194, 1994)
-rat feeding studies to determine the effects of the new compounds on glucose, insulin and clinical variables.
e. Once active compounds have been synthesized, characterized and tested, apply for patents for synthesis and use of synthetic compounds as nutrient supplements or additives for foods and beverages.
f. Plan future studies to determine the effects in human subjects with impaired glucose metabolism or diabetes.
2.
a.
Provide 40 square feet of desk space with computer, printer etc in Building  307C at the Beltsville Human Nutrition Research  Center for each Cooperator person  assigned to this project.
b.
Provide utilities, services, and general support to the Cooperator's personnel, as needed and available.
c.
Provide laboratory space and equipment to conduct proposed studies.
E.
PTC & ISU Responsibilities
(Complete this section for both PTC & ISU)
1.
PTC Perform these portions of the research effort:
a.
Provide expertise on suitable products that are candidates for the cinnamon compounds to be effective in the control of risk factors associated with glucose intolerance and diabetes.
b.
Provide expertise regarding methods of testing efficac
y
of the compounds.
c.
Provide synthetic compounds that are suitable candidates to be used as food additives or nutrient supplements.
d.
Provide financial assistance to ARS and ISU for personnel and supplies to conduct the proposed research (see Budget).
2.
ISU Perform the following portions of the research effort:
a.
Dr. Kraus and his postdoc will synthesize selected procyanidin trimmers isolated from cinnamon. The trimmers will have the structure shown below.  The synthetic route will begin with commercially available catechin.  The synthetic route will involve selective oxidations to sequentially form bonds a, b, and c.  Dr. Kraus will send all synthetic compounds  to Dr. Anderson for biological testing.
[GRAPHIC INSERTED HERE]
b.  Synthesize related compounds as mutually agreed upon by collaborators and send to the Beltsville group for testing.
3.
PTC to Pay $ 666,336.00 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 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: $
210,531
in 4 quarterly installments, the first of which is due to ARS 3 months from the previous payment; and
(3)
Year 3: $
217,505
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
2.
PTC to Pay $186,865 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 month 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: $
64,614
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 and sent 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.
F.
ARS, PTC, & ISU Joint or Mutual Responsibilities
1.
Perform these portions of the effort jointly:
a.
Conduct studies to determine suitable synthetic compounds
b.
Test safety and efficacy of compounds that improve the action of insulin
c.
Apply for patents that allow the technology to be used to improve health.
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
377,303
210,000
150,000
96,505
B.  Equipment
58,000
90,000
0
C.  Materials and Supplies
90,000
90,000
0
30,612
1
Travel
a.
Domestic
b.
Foreign
15,000
15,000
15,000
6,000
15,000
15,000
E. Facilities
45,000
300,000
300,000
F.  Other Direct Costs
0
0
0
G.  TOTAL DIRECT COSTS
600,303
711,000
480,000
127,117
H.  Indirect Costs
66,033
59,748
I. TOTAL COSTS…….…$
666,336
711,000
480,000
186,865
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
1
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
125,668
70,000
50,000
32,143
B.  Equipment
9,000
30,000
0
C.  Materials and Supplies
30,000
30,000
0
10,204
1
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
G.  TOTAL DIRECT COSTS
189,668
237,000
160,000
42,347
H.  Indirect Costs
20,863
19,904
I. TOTAL COSTS…….…$
210,531
237,000
160,000
62,251
YEAR 3
ARS Receive
Funds for
ARS In-House
PTC
In-House
ISU
to Receive from PTC
A.  Salaries and Wages
131,950
70,000
50,000
33,750
B.  Equipment
9,000
30,000
0
C.  Materials and Supplies
30,000
30,000
0
4,796
1
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
G.  TOTAL DIRECT COSTS
195,951
237,000
160,000
43,954
H.  Indirect Costs
21,555
20,660
I. TOTAL COSTS…….…$
217,505
237,000
160,000
64,614
PTC is providing funds to ARS and ISU.  ISU has no in-house costs associated with this CRADA.