Document:

SERVICE CONTRACT
Between
SanguiBioTech  AG
     Forschungs-  und  Entwicklungszentrum  (FEZ)
     Alfred-Herrhausen-Str.  44
     D-58455  Witten  an  der  Ruhr
represented  by  the Supervisory Board, the latter represented by its President,
Axel  J.  Kutscher,  Frankensteiner  Platz  95,  D-60594  Frankfurt/M.,
                                      - hereinafter referred to as the Company -

and
Mr.  Prof.  Dr.  Dr.  Wolfgang  Barnikol
     Lanzelhohl  66
     D-55128  Mainz
                     - hereinafter referred to as Member of the Managing Board -

                          1 APPOINTMENT, TASKS AND DUTIES

     (1)  The  Member  of the Managing Board is employed with effect from 15 May
1998.
     (2)  According  to the resolution passed by the Supervisory Board on 14 May
1998,  the  Member  of  the  Managing  Board has been appointed with effect from
15  May  1998  for  a  term  of 5 (five) years as a Member of the Managing Board
having  sole  power  of  representation and being exempted from the restrictions
under   181  of  the  BGB.
     (3)  The  Member  of  the  Managing  Board  shall  conduct  the business of
SanguiBioTech  AG,  together  with  the  other members of the Managing Board, in
accordance  with  the  laws, the Articles of Association, the rules of procedure
for  the management of the Company and the resolutions of the Supervisory Board,
taking  into  account  this  Contract.

                      2 ADDITIONAL OCCUPATION AND COMPETITION

     (1)  The  Member  of  the  Managing  Board  shall  use his working capacity
exclusively  for the Company and its affiliated companies. The assumption of any
additional occupation, whether for or without remuneration, of honorary posts in
the  professional  area,  of  posts in supervisory boards or similar mandates is
subject  to  the  prior  written  approval  of  the  Supervisory  Board.
     (2)  During  the  term of this Service Contract, the Member of the Managing
Board  is  prohibited  from  participating  in  any  business  firm  that  is in
competition  with  the  Company or maintains substantial business relations with
the  Company.  A  possession  of shares that does not enable an influence on the
organs  of  such  business  firm  shall  not  be  considered  a  participation.

<PAGE>
(3)  The above does not apply to activities for or a participation in affiliated
companies  as  well  as to the activities of the Member of the Managing Board as
the  head  of  the sector of Clinical Physiology or a comparable activity at the
private  university  of  Witten/Herdecke.

                                  3 REMUNERATION

     (1)  The  Member of the Managing Board shall receive an annual remuneration
to  the amount of US$ 112,000 (one hundred and twelve thousand US Dollars) to be
paid  in  12  equal instalments of US$ 8,000 (eight thousand US Dollars) each at
the end of every month after withholding the legal deductions. Together with the
instalments  for  the  months of June and November, respectively, there shall be
paid  another  instalment to the amount of US$ 8,000 (eight thousand US Dollars)
each.  The  payment shall be transferred in a cashless manner to a national bank
account  to  be  indicated  by  the  Member  of  the  Managing  Board.
     (2)  As  far  as  the  Member  of  the  Managing  Board  is  not subject to
compulsory  statutory health and pension insurance, the Company shall be obliged
to  pay  half  of  the  contributions  to  adequate health insurance and old-age
provision,  however  not  more  than  50  %  of the maximum contributions of the
statutory  health  and  pension  insurance.
(3)  The  performance of any tasks for affiliated companies shall be regarded as
compensated  by the above-mentioned remuneration, unless the performance of such
tasks  substantially  increases the workload. This does not apply to the work of
the  Member  of  the  Managing  Board  for  GlukoMediTech  AG.
(4)  Half of any earnings from other service contracts or posts performed by the
Member  of  the Managing Board in the interest or on behalf of the Company shall
be  set  off against the remuneration under Item 1 above. This does not apply to
remuneration  for  the  work  for  GlukoMediTech  AG.
(5)  The Member of the Managing Board shall be provided with an adequate service
car  for service and private use. The taxes incurred on payment in kind shall be
borne  by  the  Member  of  the  Managing  Board.
(6)  The  reimbursement of expenses incurred by the Member of the Managing Board
in  performing  his  service  activities,  including  travel  and  entertainment
expenses, shall be subject to the respectively applicable policy of the Company.

    4 CONTINUED PAYMENT OF REMUNERATION IN CASE OF ILLNESS, ACCIDENT AND DEATH

     (1)  In  case  the  Member  of  the  Managing  Board, without own fault, is
prevented  from  rendering  his  services  due  to incapacity for work caused by
illness, the remuneration under   3 shall continue to be paid during the time of
the  incapacity  for  work, up to a maximum period of 6 months. If the Member of
the  Managing  Board  receives sickness benefit from his health insurance during
the  incapacity  for  work,  it  is  to  be  set  off.
     (2)  If  the  Member  of  the  Managing  Board  dies during the term of the
Service  Contract,  his  wife  and  the  joint  legitimate children as joint and
several  creditors  or  another person to be named by the Member of the Managing
Board  who  lives  in cohabitation with him shall be paid the remuneration under
3  Subsec.  1  for  the  month  of  the  death  and  the three following months.
(3)  The  Company  shall  appropriately  insure the Member of the Managing Board
against  accidents.

<PAGE>

                           5 INDEMNITY AGAINST LIABILITY

     The  Company  shall  indemnify the Member of the Managing Board against any
claims of the Company or a third party for damages or other compensation, unless
caused  by  intention  or  gross negligence of the Member of the Managing Board.

                               6 SERVICE INVENTIONS

     If the Member of the Managing Board makes any inventions during the term of
his  employment,  the regulations of the Act on Employee Inventions, as amended,
including  any  relevant  regulations  issued,  shall  be  applicable.

                                    7  HOLIDAY

     The  Member  of  the  Managing  Board shall be granted annual holiday of 30
working  days  that  can also be taken in parts. The holiday shall be planned in
agreement  with the other members of the Managing Board, taking into account the
Company's  interests.

                                  8 CONTRACT TERM

     (1)  The  Contract  is  concluded for an initial term ending on 31 December
2003 and then shall be extended always for one year, unless terminated by either
party,  observing a notice period of 6 months. The notice of termination must be
delivered  by  registered  letter.
A  termination  by  the  Company  shall be done by resolution of the Supervisory
Board. A termination by the Member of the Managing Board must be declared before
the  Supervisory  Board.
     (2)  This  shall  not  affect  the  right  to  terminate  the  Contract  in
exceptional  cases. A reason for termination without notice by the Company shall
exist  in  particular  when  the Member of the Managing Board is prohibited from
performing  his  activity by court decision or legally valid administrative act.
     (3)  The  appointment  as  a Member of the Managing Board can be revoked by
decision  of  the  Supervisory Board at any time, notwithstanding any claims for
remuneration  and/or damages. Such revocation at the same time is to be regarded
as  a  termination  with  effect  from  the  next  possible  date.
(4)  The  Company can release the Member of the Managing Board from service duty
if  the  Service  Contract  has  been  duly or extraordinarily terminated or the
appointment  as  a  Member  of  the  Managing  Board  has  been  revoked.

<PAGE>
                             9 DUTY TO OBSERVE SECRECY

     (1)  The  Member of the Managing Board is obliged to observe secrecy on all
internal  affairs of the Company and affiliated companies within and outside the
Company.
     (2)  Upon  termination  of the Service Contract and upon his dismissal, the
Member  of the Managing Board must immediately return all documents and business
papers  to  the  Company.  He  must  not  make  any  copies  of  them.

                                10 FINAL PROVISIONS

     (1)  Should any provision of this Contract be or become invalid, this shall
not  affect  the  validity of the remaining provisions. The parties undertake to
agree,  instead of the invalid provision, on a regulation that comes as close as
possible  to  the  economic  meaning  and  purpose  of  the  invalid  provision.
     (2)  There  were  not  made any collateral agreements to this Contract. Any
alterations  of and additions to this Contract must be made in writing. The same
applies  to  a  waiver  of  the  written  form  requirement.
(3)  As  far  as  the  agreement  on a place of jurisdiction is permissible, the
place  of  jurisdiction  for all disputes on or under this Contract shall be the
seat  of  the  Company  in  Mainz.

Witten,  30  June  1998

SanguiBioTech  AG                         Member  of  the  Managing  Board
/signature/                               /signature/
-----------                              -----------
Axel  J.  Kutscher                       Prof.  Dr.  Dr.  Wolfgang  Barnikol
President  of  the  Supervisory  BoardSERVICE AGREEMENT

between

1)     Axel  Kleinkorres  Promotionsagentur,  proprietor  Axel  Kleinkorres,
       registered  offices  at Munsterstr.  306 D-40470  Dusseldorf
                               - referred to hereinafter as "Promotion agency" -

and

2)     Sangui  Bio  Tech  International,  Inc.,  registered  offices  at
     1508 Brookhollow Drive, Suite 354, Santa  Ana,  California  92705,  U.S.A
     represented  by  the  company's  President  and  CEO,  J  rg  Alte
                                        - referred to hereinafter as "Sangui " -

WHEREAS,  Sangui  Bio  Tech  International  is  a  U.S American corporation with
business interests in the research, development, manufacture and distribution of
diagnostic,  pharmaceutical  and medical products. While diagnostic equipment is
developed,  manufactured  and distributed in the U.S., SanguiBioTech AG, a 100 %
subsidiary  of  Sangui  Bio  Tech  International,  Inc.,  does  the research and
development  for  an  artificial  oxygen  carrier, which shall be used both as a
blood volume substitute and as a blood oxygen additive. GlukoMediTech AG, also a
100  %  subsidiary  of  Sangui  Bio  Tech International, Inc., is engaged in the
research  and  development  of  a  glucose  sensor  for  long-term implantation.

WHEREAS,  the Axel Kleinkorres Promotions Agency is a newly established company,
the  staff  and/or  partners  of which have gained a wealth of experience in the
field  of  advertising,  promotion,  design media work and lobbying and who have
successfully  carried  out  commissions  and assignments for renowned German and
international  groups  in  these  fields  of  activity.

NOW,  THEREFORE,  the  parties  agree  as  follows:

                      ARTICLE   1 SUBJECT OF THE AGREEMENT

(1)     Sangui  (the  "corporation") commissions the promotion agency to provide
consulting,  planning  and  supervising services for the public relations of the
corporation  and  its  subsidiaries as well to conduct and follow up such public
relations  services.

(2)     The  work  of  the  promotion agency includes, but is not limited to the
following  activities:
-     planning,  designing  and  placing  advertisements  and  carrying  out
advertising  measures  of  all  kinds,  involving  especially  the  printing and
broadcasting  media;
-     planning  and  conducting  the  public  relations and providing consulting
services  in  this  field,  especially  with  regard  to  approaching  political
organizations,  authorities  as  well  as public and private institutions in the
medical  sector,  in  the  media  industry  and  in the financial and investment
sector;
-     drawing  up  and  doing  the  art  work  for  a  Corporate  Design,
-     planning  the  external presentation of the corporation and its individual
companies  and  providing  consulting  services  in  this  field, especially for
political  decision-making  bodies  and  other  political  institutions,  for
authorities,  for  public and private institutions in the medical sector as well
as  sponsors  of  grants;

<PAGE>

-     planning,  organizing  and  conducting  information  events  and  the
participation  in  fairs,  especially  in  the  Medica  at  D  sseldorf.
-     planning, designing, setting up and updating the corporate homepage in the
internet  with  comprehensive  information  about  the  corporation.

(3)     The  promotion  agency  shall  render  its  individual  services only at
Sangui's  explicit  request  and by meeting the job specifications. Publications
referring  to the corporation in particular shall only be published after having
obtained  prior  approval.

                            ARTICLE   2 REMUNERATION

(1)     In  consideration  for the services detailed above, the promotion agency
shall  receive  2 600 000 (in words: two million six hundred thousand) shares of
common  stock  at  no  par  value  in  Sangui  Bio  Tech  International,  Inc.

(2)     All  and  any claims of the promotion agency arising from this agreement
for  the  services  to  be  rendered  shall  be settled with the transfer of the
shareholding.  This  shall  include  all  labor,  manufacturing,  material  and
production  costs, the travelling, entertainment and any other expenses incurred
by  the  promotion agency, by sub-contractors or by third parties. Nor shall any
further  claims  arise  for  the  expenses  and  fees of third parties, incurred
especially  in  connection  with  the services rendered by the promotion agency,
such  as  fees  and  charges  for fairs and exhibitions, including the ancillary
costs  and  charges  for  advertising.

     Not  included  in the above remuneration shall be the composition, printing
and  manufacturing  costs for equipping the company with suitable material, such
as  printed  note  papers,  packaging  material,  information  brochures  etc.

     Internal labor, manufacturing and material costs shall be borne exclusively
by  Sangui.

(3)     All  any  claims  of  the  promotion  agency  arising  from the services
rendered  between 1998 and the conclusion of the agreement shall also be covered
by  the  above  settlement.

(4)     The  corporation's  common  stock  shall be transferred to the promotion
agency  within  three  (3)  months  after  the  conclusion  of  this  agreement.

                          ARTICLE   3 TRANSFER OF STOCK

(1)     The  shareholding is made up of so-called Reg-S shares which are subject
to  certain  restrictions. They must not be sold or transferred in any other way
in  the sense of the US Securities Exchange Act within the United States or to a
US  citizen  within  12  (twelve)  months.

(2)     The  stock  is  transferred  on  the basis of the Offering Memorandum of
April  15,  1998,  of  the Sales Prospectus of July 27, 1998 (published by the D
sseldorf-based  "Euro-American Beteiligungsvermittlungsgesellschaft") and of the
Subscription Agreement of April 27, 1999. The three documents form a substantial
part  of  this  agreement  and  have been attached in Annexes 1-3. The promotion
agency  explicitly  confirms  to  have read and fully understood the contents of
these annexes, especially the references as to the risks involved, including the
risks  concerning the so-called penny shares and the restrictions concerning the
Reg-S  shares.

(3)     It  has been mutually agreed to assume a stock value of US-$ 1.50/share.
This  value shall only be used as a guideline and calculation basis. It does not
represent any promise or any other guaranty of the corporation as to the current
or  future  value of the shareholding or as to the possible or actual revenue if
the shareholding was sold. The promotion agency accepts the shareholding without
reservations  as the only and full consideration for the services to be rendered
under this agreement. The shareholding can only be sold or used in any other way
on  behalf  of and for the sole account and the risk of the promotion agency. No
claims  whatsoever  shall arise towards Sangui as to the sale, the realizability
or  the  sales  revenue  of  the  shareholding.

<PAGE>

(4)     The  claim  to  the transfer of the stock cannot be assigned or pledged.

                   ARTICLE   4 TERM OF AGREEMENT; TERMINATION

(1)     The  agreement shall become effective on the day of execution and remain
in  force  until  December  31,  2000.

(2)     The  agreement  can  only be terminated by either party for good reason.
The  termination  shall be communicated by registered letter. Good reasons shall
mean especially, but is by no means limited to the following occurrences, if one
of  the  contracting  parties
-     is  verging on insolvency, or becomes otherwise insolvent, especially when
bankruptcy  proceedings  or court composition proceedings are opened against the
contracting  party  concerned  or  a  petition  in  bankruptcy  is dismissed for
insufficiency  of  assets;
-     fails  to  perform its contractual duties to a more than negligible extent
and  does  not  meet its commitments despite having been requested in writing to
set  things  right  within  a  reasonable  period  of  at  least  30  days;
-     has  published  confidential  information  about  the  other party without
having  been  duly  authorized to do so or has disclosed such information in any
other  way  to  third  parties,  is trading such information or is found to have
misused  it  in  any  other  way.

(3)     If  the  agreement is terminated by Sangui for good reason, Sangui shall
be  entitled to request the payment of 225 000 shares of common stock at a price
of  US-$ 1.50 each for each and every unfinished calendar month until the agreed
expiration  date  of  the  agreement.

                      ARTICLE   5 RESTRAINT OF COMPETITION

(1)     During the term of this agreement, the promotion agency itself or in the
guise  of  a  third party shall not act in the same or in a similar capacity for
any  third  party  that  is  directly  competing  with  Sangui  or  any  of  its
subsidiaries,  neither  for  the own account of the promotion agency nor for the
account  of  any  third  party,  neither  directly  nor  indirectly.

(2)     The  promotion  agency shall neither directly nor indirectly participate
or  take  a  financial  interest  in  any  competitor  company  of  Sangui.

(3)     This  restraint  of  competition  is  deemed to have been settled by the
remuneration  agreed  in  Article   3  above.

                              ARTICLE   6 WARRANTY

(1)     The  promotion  agency  shall undertake to render all services due under
the  agreement  with  the due care and diligence of a prudent businessperson and
pursuant to the standards prevailing in the industry. The promotion agency shall
report  regularly  about the progress made in rendering its services and consult
Sangui about its work. Both parties shall designate contacts who are responsible
for  the  coordination  and  the  mutual  communication.

<PAGE>

(2)     The  promotion agency shall assign at least two suitably qualified staff
for  40  hours  per  month  each  to  the performance of this agreement and make
available  sufficient  human and equipment resources at any time for discharging
its  contractual  duties.

(3)     The promotion agency shall not be entitled to represent Sangui or any of
its subsidiaries or to make any other legal or business representations on their
behalf  or to act on behalf of Sangui, unless an explicit written commission has
been received which shall be restricted to an individual assignment in any case.

                           ARTICLE   7 CONFIDENTIALITY

(1)     The  contracting  parties shall undertake to maintain the strict secrecy
concerning  the  confidential  information and the documents of the other party.
The  contracting  parties  shall  pledge  its staff and any third parties having
access  to such confidential information and documents to maintain the same kind
of  secrecy  for  the  term  of  the  agreement  and  beyond.

(2)     The  promotion  agency  shall  especially  ensure  that  no confidential
information  relating  to  the  exchange  of Sangui's shareholding will be used,
neither  for its own purposes nor in the interest of third parties. Furthermore,
the  promotion  agency  shall  pass on to Sangui the names of all persons having
access  to  such  information,  which  is  to ensure sufficient control over all
persons  who  might  indulge  in  insider  trading.

                          ARTICLE   8 FINAL PROVISIONS

(1)     Should  any  individual  provision  of  this  agreement  be  or  become
ineffective,  the  validity  of  the  remaining  provisions  shall  in no way be
affected.  In  such  case the contracting parties shall undertake to replace the
ineffective  provision by relative provisions coming as close as possible to the
commercial  purpose  of  the  ineffective provision. The same shall apply in the
case  of  a  loophole.

(2)     Modifications  and amendments to this agreement shall be made in writing
in  order  to become legally effective. The same shall apply to the amendment of
this  clause  requiring  written  amendment.

 (3)     This agreement shall be governed by the laws of the Federal Republic of
Germany,  except the transfer and issue of the stock, which shall be governed by
the  laws  of  the  State of California. The place of jurisdiction for any legal
disputes arising from or about this agreement shall be the registered offices of
Sangui  or  any  of  its  subsidiaries.

Dusseldorf,  April  26,  1999

Axel  Kleinkorres Promotionsagentur      Sangui Bio Tech International,
Inc.

(Signature)                              (Signature)
_______________________________          _______________________________
Axel  Kleinkorres                        Joerg  Alte,
                                         President  and  CEO

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