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| l.l | ARS      means the United States Department of Agriculture, Agricultural      Research  Service. |
|-----|------------------------------------------------------------------------------------------------------------|

| 1.2 | COOPERATOR      means Viridax Corporation (“Viridax"), 270 NW 3rd      Court, Boca Raton, FL 33432-3720. |
|-----|----------------------------------------------------------------------------------------------------------------|

| 1.3 | Agreement      means this Cooperative Research and Development  Agreement. |
|-----|----------------------------------------------------------------------------|

| 1.4. | Confidential      Information means trade secrets or commercial or financial information      that is privileged or confidential under the meaning of 5 USC      552(b)(4). |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.5 | Subject      Invention means any invention or other intellectual property conceived or      first reduced to practice under this Agreement which 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. Specifically not included in      the definition of Subject Inventions are inventions made outside the Scope      of Agreement or prior to the execution of this      Agreement. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.6 | Scope      of Agreement means those activities set forth in Schedule 2, entitled      "Statement of Work." |
|-----|------------------------------------------------------------------------------------------------------------|

| 1.7 | Period      of Agreement means that period set forth under the Period of Agreement on      the ARS Office of Technology Transfer cover form for the      Agreement. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1 | Subject      to the requirements of confidentiality and preservation of rights in      SubjectInventions,      either party may publish the results of this Agreement,      PROVIDED: |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | The      other party is 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      as necessary to preserve both United States of America and foreign patent      rights in a Subject Invention. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 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 SubjectInvention. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

| 3.1 | Confidential      Information, which is owned by one party to this Agreement and disclosed      to the other, 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 either party orally submits its Confidential information to the      other party, 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      party within thirty (30) days ofdisclosure. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3 | Neither      party shall be bound by confidentiality if the Confidential Information      received from the other party: |
|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | c. | Is      non-confidentially received from another party legally entitled to      it. |
|--------|----|-------------------------------------------------------------------------------------|

| 4.1 | Frequent      and effective communication is essential to the successful accomplish-ment      of the objectives of this Agreement. To this end, the scientific      representatives of ARS and COOPERATOR shall meet (meetings need not be in      person if agreed upon) at least once every six (6) months to exchange      results, perform critiques, and make plans and recommendations. Written      progress reports shall be supplied by each party to the other at least      fifteen (I5) calendar days prior to each semi-annual    meeting. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.2 | Any      such plan or recommendation that is outside the Scope of Agreement shall      bereduced      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 either 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 either party at reasonable      times. The records, or true copies of them, shall be delivered to either      party upon request. |
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| 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 COOPERATOR and ARS. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.5 | A      final report summarizing all data shall be submitted by each party,      separately or jointly, to both party’s Authorized Agents within sixty (60)      days of the completion of thisAgreement. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.2 | Plants      and animals, their genetic materials or information relating thereto, or      partsthereof,      covered by Plant Variety Protection Certificates, Plant Patents, or      Utility Patents, owned or co-owned by ARS, may be made available by ARS to      third parties for bona fide research purposes including the development of      new animals or plants. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.1 | All      rights, title, and interest in any Subject Invention made solely by      employee(s) of ARS shall be owned byARS. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

| 6.2 | All      rights, title, and interest in any Subject Invention made jointly by at      least one (1) employee of ARS and at least one (1) employee of COOPERATOR      shall be jointly owned by ARS andCOOPERATOR. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.3 | All      rights, title, and interest in any Subject Invention made solely by      employees ofCOOPERATOR      shall be owned by COOPERATOR. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| 7.1 | COOPERATOR      is granted an option to negotiate an exclusive license in each Subject      Invention owned or co-owned by ARS for one or more field(s) of` use      encompassed by the Scope of Agreement. ARS does not conduct research on      human diagnostic and/or therapeutic technologies. In instances where a      Subject Invention has human diagnostic and/or therapeutic application,      COOPERATOR is granted an option to negotiate an exclusive license for such      uses. 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      COOPERATOR and ARS. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 7.2 | This      option shall terminate whenever COOPERATOR fails  to: |
|-----|-----------------------------------------------------------------|

|   | a. | Submit      a complete application for an exclusive license within one-hundred twenty      (120) days of being notified by ARS of an Invention’s availability for      licensing; or |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Submit      a good faith written response to a written proposal of licensing terms      within sixty (60) days of suchproposal. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------|

| 7.3 | COOPERATOR      grants ARS, on behalf of the U.S. Government, a royalty free,      nonexclusive, worldwide, irrevocable, nontransferable license for any      COOPERATOR 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 I research or other U.S. Government      purposes. 15 USC 3710a(b)(2). |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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 party, 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. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.1 | ARS      and COOPERATOR agree to cooperate with the other in the preparation,      filing, and prosecution of Patent or Plant Variety Protection Certificate      applications on Subject Inventions in the United States of America and any      other country. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.2 | ARS      shall provide COOPERATOR’S Authorized Agent or their designee 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 or co-owned by the U.S. Government, which option may be waived in      whole or in part. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 11.1 | COOPERATOR      is 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, COOPERATOR      shall: |
|------|--------------------------------------------------------------------------------------|

|  | a.  | Consult      and coordinate regulatory approval actions with ARS;  and |
|--|----------|------------------------------------------------------------------------|

|  | b.  | Give      ARS’ Authorized Agent or designee a copy of any applications      andopinions,      permits, or licenses issued. |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------|

| 11.3 | Both      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 thelike. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.1 | Either      party may unilaterally terminate this entire Agreement at any time by      giving the other party written notice not less then sixty (60) calendar      days prior to the desired termination date. In the event that ARS      unilaterally terminates the Agreement not-for-cause and does not continue      the research project, and assuming that there is not yet technology      available for licensing, then, if COOPERATOR so requests, ARS will provide      non-exclusive access to transfer the research materials and associated      know how for such materials to COOPERATOR to finish the research      project. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 13.2 | Article      2. “Publications", 3. "Confidentiality", 6. "Ownership", 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      either party unilaterally terminates 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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. |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.2 | Each      party agrees to seek in good faith to resolve the issue through      negotiation or other forms of nonbinding dispute resolution processes      mutually acceptable to the parties. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.3 | Pending      the resolution of any dispute or claim pursuant to Artic1e 15, the parties      agree that performance of all obligations shall be pursued      diligently. |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ARS’      Authorized Agent        | Cooperator’s      Authorized Agent       |
|-----------------------------------------|------------------------------------------------|
| Martha      B. Steinbock                | Ledyard      H. DeWees, JD                     |
| USDA-ARS-OTT                            | Corporate      Secretary & General Counsel |
| 5601      Sunnyside Ave.                | 270      NW 3rd Court                          |
| Beltsville,      Maryland 20705-5131    | Boca      Raton, Fl 33432-3720                 |
| Tel.:      301-504-6905                 | 561-368-1427                                   |
| Fax:      301-504-5060                  | Fax:      561-395-8312                         |
| E-mail:      crada.ott@nps.ars.usda.gov | E-mail:      idewees@gmail.com                 |

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| 18.1 | Neither      this Agreement nor any rights or obligations of the parties hereto shall      beassigned      or otherwise transferred by either party without the prior written consent      of the other party, which consent shall not be unreasonably      withheld. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.2 | In      no case shall COOPERATOR 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.1 | ARS      and COOPERATOR act in their independent capacities in the performance of      their respective functions under this Agreement and neither party is to be      considered the officer, agent, or employee of the  other. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 19.2 | Each      party shall allow, consistent with policies and procedures of ARS and      theCOOPERATOR,      access to their facilities, asneeded. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 20.1 | Neither      party shall 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      thisAgreement;      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 party. 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. |
|--------|----|--------------------------------------------------------------------------------------------------------------------|

| 21.1 | If      either 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 bothparties. |
|------------|--------------------------------------------------------------------------------------------------------------------------------------|

| 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 generalbenefit. |
|------|----------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 27.1 | This      Agreement constitutes the entire agreement between COOPERATOR 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 AuthorizedAgent. |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 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. |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| o | an      individual |
|---|--------------------|

| o | a      partnership |
|---|--------------------|

| x | a      corporation |
|---|--------------------|

| o | limited      liability corporation |
|---|------------------------------------|

| o | public      institution |
|---|-------------------------|

| o | private      institution |
|---|--------------------------|

| o | educational      institution; |
|---|-------------------------------|

| 4. | Has      not paid or agreed to pay any company or person (other than a bona fide      employee working solely for COOPERATOR) 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 COOPERATOR) to solicit or secure      this Agreement. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Its      Principal Officers are not listed on the U.S. Governments 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. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | a. | Fusion      antimicrobials will be evaluated for their effect on pathogenic Staphylococcus aureus.      The fusion antimicrobials were created by ARS by fusing three      peptidoglycan hydrolase lytic domains that each can individually target a      unique staphylococcal cell wall peptidoglycan bond and cause cell lysis      (hereinafter referred to as "Background Invention” and described in Fig.      l). The Background Invention harbors three cell lytic activities that each      target a different bond of the peptidoglycan. The three existing fusion      proteins (LysK-lyso, 390LysK-lyso, & Lyso-390LysK) are described in      Fig. l. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | b. | Verification      that all three lytic domains are functional in each triple      fusion  construct is currently being conducted under an ARS      project plan objective. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | This      CRADA may be amended for up to four years to include additional      research. |
|--------|----|------------------------------------------------------------------------------------------|

|   | l. | Conduct      these portions of the research project or perform the following      tasks: |
|--------|----|------------------------------------------------------------------------------------------|

|   | a. | Evaluate      the level of antimicrobial activity of the fusion antimicrobials in a      variety of in vitro assays (turbidity reduction assays, MIC assays, plate      lysis assays) against Ventilator Associated Pneumonia (VAP) S. aureus clinical      isolates (broth-grown cultures). |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Cooperate      with Cooperator employee(s) in the testing of the Background Invention for      purity, stability and other parameters deemed necessary for the use of      these proteins in VAP animalmodels. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Develop      purification, stabilization, and formulation protocols that are compatible      with testing in vitro (turbidity reduction assays, MIC assays, plate lysis      assays) and in vivo (VAP animalmodels). |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d. | Evaluate      and optimize storage and assay conditions (e. g. pH, salt, osmolytes,      heavy metals) for maintaining optimal activity of the fusion      constructs. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e. | Via      nickel-chromatography, produce sufficient quantities, of the His-tagged,      stabilized, purified, fusion antimicrobials for testing in the VAP animal      models.  (Exact amounts will be determined by activity testing      described above but is not expected to exceed a cost of $6,000 in      production supplies.) These protein preparations will be tested via SDS      PAGE for purity determinations and other assays, mutually agreed upon by      Cooperator and ARS (e.g. endotoxin assay), as deemed necessary for      optimizing their use in animalmodels. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | f. | If      deemed necessary for optimization of the preparation, alternative      purification strategies and new constructs lacking His-tags will be      attempted for the purpose of removing the endotoxin and/or the      His-tag. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Provide      laboratory space in Building 230, utilities, services, and general support      to COOPERATOR'S personnel, as needed and available at the ARS      location. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | Perform      these portions of the researcheffort: |
|--------|----|----------------------------------------------------|

|   | a. | Provide      supplies, and facility costs, including but not limited to: use of      MALDI-TOF services at USDA, DNA sequencing services via outside      contractor, PCR primer synthesis via outside contractor, space charges,      computer purchase, and computer and internet access at    USDA. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Identify      a collaborating laboratory with expertise in VAP animal model(s) and      oversee these collaborators in the testing of the ARS-produced      fusion |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c. | Provide      VAP S. aureus      clinical isolates for testing in the ARS in vitro  assays. |
|--------|----|--------------------------------------------------------------------------------------------|

|   | 2. | Pay      $      150,000 (first year) to  ARS. |
|--------|----|-----------------------------------------------|

|   | a. | The      payment schedule is: Three payments of $50,000 each, one every 4 months      with the first payment due within 30 days of final signature on the      agreement. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | Make      checks or money orders out to the "Agricultural Research Service," cite      Agreement No. 58-3K95-9-1339 thereon, and send  to: |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | l. | Perform      these portions of the effortjointly: |
|--------|----|---------------------------------------------------|

|   | a. | Jointly      identify a Postdoctoral Fellow to perform the work (USDA      employee). |
|--------|----|---------------------------------------------------------------------------------------|

|   | b. | Communicate      goals and jointly decide on the strategy to identify the optimization      protocols for the models/assays with which they should be      tested. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                             |   | ARS ReceivesFunds for |       |   | ARS In-House |   |      | CooperatorIn-House |   |
|--------------------------------------------------|--------|---------------------------------|------------|--------|-------------------|--------|-----------|--------------------|--------|
| A.  Salaries      and Wages            |   |                            | 85,000.00  |   |              |   | 6,000.00  |               |   |   | 7,000.00 |   |
| B.  Equipment                          |   |                            |       |   |              |   |      |               |   |   |   |   |
| C.  Materials      and Supplies        |   |                            | 15,000.00  |   |              |   | 5,000.00  |               |   |   | 4,000.00 |   |
| D.      Travel                              |   |                            |       |   |              |   |      |               |   |   |   |   |
| 1.      Domestic                                 |   |                            |       |   |              |   |      |               |   |   |   |   |
| 2.      Foreign                                  |   |                            |       |   |              |   |      |               |   |   | 3,000.00 |   |
| E.   Facilities                   |   |                            | 10,000.00  |   |              |   | 8,000.00  |               |   |   | 7,000.00 |   |
| F.   Other      Direct Costs      |   |                            | 10,000.00  |   |              |   |      |               |   |   |   |   |
| G.   TOTAL      DIRECT            |   |                            | 120,000.00 |   |              |   | 19,000.00 |               |   |   |   |   |
| H.   Indirect      Costs          |   |                            | 30,000.00  |   |              |   |      |               |   |   |   |   |
| I.     TOTAL      COSTS |   | $                               | 150,000.00 |   |              |   | 19,000.00 |               |   |   | 21,000.00 |   |

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