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Agreement

CONFIDENTIAL

Agreement between A5 Laboratories Inc. and Zabolotny
Institute of Microbiology for production of interferon based
products

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This agreement (the “Agreement”) sets out the principal terms and conditions
upon which Zabolotny Institute of Microbiology (“Zabolotny”) is willing to enter
into an exclusive `commercial relationship with A5 Laboratories Inc. (“A5 Labs”)
with respect to production of interferon products using A5 Labs production
technology.

Each of A5 Labs and Zabolotny may be referred to as a “party” or collectively as
the “parties”. The parties agree as follows:

1. Product(s) Natural source interferon-based products       2. Zabolotny’s
Responsibilities Notwithstanding any specific obligations set out in this
Letter, in general terms Zabolotny will:

  (a)

be responsible for production of interferon based- products;

        (b)

Laboratory scale production of bovine or porcine interferon;

  1.

For technology development and refinement of 1 liter interferon (approximately
50000 doses):

- interferon of porcine
- interferon of bovine

  2.

If necessary, by transfer of know-how interferon can be elaborated in Canada or
other countries.

  (c)

Scale up production of bovine and porcine interferon;

        (d)

other responsibilities as may be added by mutual consent of the parties.

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3. A5 Labs’ Notwithstanding any specific obligations set out in this  
Responsibilities Letter, in general terms A5 Labs will:

  (a)

be responsible for providing the technology for the production of natural source
interferon;

        (b)

Provide necessary financing for the development, registration and marketing of
interferon products in the Territory;

        (c)

promote and market the Products in the territory;

        (d)

other responsibilities as may be added by mutual consent of the parties.

4. Termination Standard termination provisions including:

  (a)

mutual consent;

        (b)

the insolvency of either party; or

        (c)

breach of this Letter or warranties.

5. Pricing

Pricing policies and strategies for the products shall be made jointly by both
of the parties.

   

6. Confidentiality

The parties agree that this Letter and its contents are confidential and further
agree that neither party shall disclose this Letter’s existence or content to
anyone except for Zabolotny and/or A5 Labs’s Board of Director or their
necessary advisors and as required by securities regulation. Any public
communication with respect to this Letter must be approved by both parties.

   

 

7. Governing Law

Canada and Ukraine.

Zabolotny Institute of microbiology

/s/Acad. V. S. Pidgorskii   Prof Dr. Acad. V. S. Pidgorskii      

  “I have authority to bind the corporation.”

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* * * * *

Acceptance:
I hereby accept the terms and conditions of this Agreement on behalf of A5 Labs
Inc.

Per: /s/ Richard Azani     Dr. Richard Azani     President & CEOA5 LABS Labs
Inc.  

“I have authority to bind the corporation

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