Document:

Exhibit 10.9

                          SPONSORED RESEARCH AGREEMENT

THIS AGREEMENT, by and between Texas Tech University Health Sciences Center
(hereinafter referred to as HSC) and HemoBioTech, having a principal place of
business at 15889 Preston Road, Suite 2006, Dallas, Texas 75248 (hereinafter
referred to as "Sponsor").

RECITALS:

1. The research program contemplated by this Agreement is of mutual interest and
benefit to HSC and Sponsor, will further multiple missions of HSC (Education,
Research, and Public Service) in a manner consistent with its status as a
non-profit, tax-exempt, educational institution, and may derive benefits for
Sponsor, HSC, and society by the advancement of science through discovery;

2. Sponsor has expressed a desire to engage HSC to create or enhance
technologies that will assist in Sponsor's understanding of science or
development and commercialization of new products and/or processes;

3. HSC's research capabilities reflect a substantial public investment which
HSC, as part of its mission, wishes to utilize in a cooperative and
collaborative research effort with Sponsor in order to meet the above-stated
interests;

NOW, THEREFORE, in consideration of the premises and mutual covenants set forth
the below, the parties hereto agree to the following:

Article 1--Definitions

As used herein, the following terms shall have the following meanings:

1.1 "Project" shall mean the research described in the Memorandum of
Understanding attached hereto, under the direction of Dr. Jan Simoni
(hereinafter referred to as "Principal Investigator"). However, should Dr.
Simoni become unavailable for any reason, HSC will appoint another individual
acceptable to both parties as Principle Investigator.

1.2 "Intellectual Property" shall mean certain inventions and/or discoveries
conceived and/or reduced to practice in performance of this Project and
resulting patents, divisions, continuations, or substitutions of such
applications and all reissues thereof, upon which a HSC employee or agent is
named inventor.

1.3 "Proprietary Information" shall mean any written information and data marked
proprietary or non-written information and data disclosed which is iden-

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tified at the time of disclosure as proprietary and is reduced to writing and
transmitted to the other party within sixty (60) days of such non-written
disclosure.

Article 2--Period of Performance

Period of Performance shall be from September 1, 2002 to August 31, 2006
(hereinafter referred to as "Period of Performance"). This Period of Performance
can be extended by mutual agreement in writing for up to two years after the end
of the second year of this agreement and prior to the current termination date.

Article 2--Research Work

HSC shall commence the performance of the Project on the first day of Period of
Performance and shall use reasonable best efforts to perform Project
substantially in accordance with the term and conditions of this Agreement.

Article 4--Reports

The Principal Investigator shall furnish Sponsor with reports regarding Project
on a monthly basis.

Article 5--Fiscal Considerations

5.1 This is a cost reimbursable agreement. Compensation is governed by the
attached Memorandum of Understanding, incorporated herein by reference.

5.2 At the end of this agreement HSC shall retain title to equipment purchased
with funds provided by Sponsor under this Agreement, except for the bioreactor
and associated filtration system which shall remain the property of Sponsor and
can be removed to Sponsor's production facility at the end of this Agreement.
HSC shall not retain title to any equipment in case of early termination of this
Agreement by HSC.

5.3 In the event of early termination of this Agreement by Sponsor pursuant to
Article 10 hereof, Sponsor shall pay all related and reasonable costs and
non-cancelable obligations incurred by HSC as of the date of termination.

Article 6--Publicity

Except as required by law, neither party to this Agreement will use the name of
the other party, nor of any member of the other party's employees, in any
public-

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ity, advertising, or news release without the prior written approval of an
authorized representative of that party.

Article 7--Publication

7.1 It is the purpose of this clause, in conjunction with Article
8--Confidentiality, to balance Sponsor's need to protect commercially feasible
technologies, products, or processes with HSC's public responsibility to freely
disseminate scientific findings for the advancement of knowledge. HSC recognizes
that the public dissemination of information based upon Research performed under
this Agreement cannot contain Proprietary Information nor should it jeopardize
Sponsor's ability to commercialize Intellectual Property developed hereunder.
Further, HSC acknowledges that commercially sensitive information related to the
design or composition of specified products or processes is not of general
interest, while its confidentiality may be critical to the commercialization of
said products or processes. Similarly, Sponsor recognizes that the scientific
results of Project must be publishable and, subject to the confidentiality
provisions of the Agreement, may be presented in forums such as symposia or
international, national or regional professional meetings, or published in
vehicles such as books, journals, websites, theses, or dissertations.

7.2 HSC agrees not to publish or otherwise disclose Proprietary Information
without the written prior consent of the Sponsor. Sponsor agrees that HSC,
subject to review by Sponsor, shall have the right to publish results of Project
that are not proprietary to the design or composition of specified projects or
processes derived from Project. Sponsor shall be furnished copies of any
proposed publication or presentation at least 30 days before submission of such
proposed publication or presentation. During that time, Sponsor shall have the
right to review the material for Proprietary Information provided by Sponsor to
assess the patentability of any invention described in the material. If Sponsor
decides that a patent application should be filed, the publication or
presentation shall be delayed an additional ninety (90) days or until a patent
application is filed, whichever is sooner. At Sponsor's request, Proprietary
Information provided by Sponsor shall be deleted.

7.3 As this project is designed to result in Phase I and Phase II Clinical
Trials, both HSC and Sponsor shall work to assure that any publication does not
jeopardize that status of such clinical trials.

Article--Confidentiality

8.1 Prior to disclosure of Proprietary Information to HSC by Sponsor, Sponsor
shall notify Principal Investigator of its intent to disclose Proprietary
Informa-

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tion; and Principal Investigator shall have the right to decline receipt of said
information. Said Proprietary Information shall be sent only to Principal
Investigator.

8.2 Each party to this Agreement agrees to treat Proprietary Information
received from the other with the same degree of care with which it treats its
own Proprietary Information, and further agrees not to disclose such Proprietary
Information to a third party without prior written consent from the party
disclosing Proprietary Information.

8.3 The foregoing obligations of non-disclosure do not apply to Proprietary
Information which:

       (a) was known to the recipient prior to the disclosure hereunder;

       (b) was received from a third party not under an obligation of confidence
       to recipient;

       (c) is in the public domain at the time of disclosure hereunder or
       subsequently entered the public domain without the fault of the
       recipient;

       (d) has been independently developed by an employee of recipient that has
       not had access directly or indirectly to Proprietary Information, and
       recipient can substantiate any claim of independent development by
       written evidence; or

       (e) is required to be disclosed by law.

8.4 Unless otherwise agreed to in writing, neither party hereto shall have any
obligation of confidentiality under this Agreement after the earliest of either
the fifth anniversary of the conclusion of Period of Performance or termination
in accordance with Article 10.

Article 9--Intellectual Property

9.1 The purpose of this clause is to balance Sponsor's ability to reasonably
exploit, with due competitive advantage, the commercial viability of
technologies, products, or processes with HSC's responsibility to seek the
broadest public benefit from the results of HSC research. HSC recognizes that
one of the prime reasons Sponsor has entered this Agreement is an effort to
secure a benefit, through the creation or enhancement of technologies. At the
same time, Sponsor recognizes that HSC has an obligation to utilize the
knowledge and technology generated by HSC research in a manner that maximizes
societal benefit and eco-

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nomic development and that provides for the education of graduate and
undergraduate students.

9.2 HSC will promptly disclose to Sponsor in writing any Intellectual Property
made during the Project performed hereunder. Such disclosure shall be
sufficiently detailed for Sponsor to assess the commercial viability of the
technology and shall be provided and maintained by Sponsor in confidence
pursuant to the terms of Article 8. Sponsor shall have up to ninety (90) days
from the receipt of the disclosure to inform HSC whether it elects to have HSC
file a patent application thereon pursuant to the procedures set forth below.
(But see 7.2)

9.3 All right and title to Intellectual Property shall belong to HSC where all
the inventors are HSC employees and shall be jointly owned by Sponsor and HSC
where inventors are from both organizations. Texas Tech University System,
through its Office of Technology Transfer and Intellectual Property, shall
include such Intellectual Property into the preexisting license agreement
between the Sponsor and the Texas Tech University System at no additional cost,
except for patent expenses. Inventions made solely by Sponsor's employees shall
belong to Sponsor.

9.4 HSC shall promptly file and prosecute patent applications, using counsel of
HSC's choice, after due consultation with Sponsor. HSC shall keep Sponsor
advised as to all developments with respect to applications(s) and shall
promptly supply copies of all papers received and filed in connection with the
prosecution in sufficient time for Sponsor to comment. Sponsor's comments shall
be taken into consideration. Sponsor shall reimburse Texas Tech University for
all reasonable out-of-pocket costs incurred in connection with such preparation,
filing, and prosecution of patent(s) within 30 days of receipt of a copy of the
invoice.

9.5 Within nine (9) months of the filing date of a U.S. patent application, the
Sponsor shall provide to HSC a written list of foreign countries in which
applications should be filed. If Sponsor elects to discontinue financial support
of any patent prosecution, in any country, the University shall be free to
continue prosecution at its expense. In such event; HSC shall have no further
obligation to Sponsor in regard to such patent applications or patents.

9.6 Copyright to copyrightable materials, including computer software, resulting
from Project shall vest in HSC, with a royalty-free license to Sponsor for its
non-commercial use. HSC shall grant Sponsor an option to license any such
material(s) it wishes to develop for commercial purposes on reasonable terms and
conditions, including a reasonable royalty, as the parties hereto agree in
subsequent writing.

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9.7 Sponsor understands that HSC must comply with the provisions of Bayh-Dole
Act 37 CFR Part 401.

Article 10--Termination

10.1 Either party may terminate this Agreement upon (90) days prior written
notice to the other; however, because of the nature of this Agreement neither
party will terminate except for reasonable cause and the terminating party will
give a full-explanation and allow the other party to cure the cause for
termination.

10.2 In the event that either party hereto shall commit any material breach of
or default in any term or conditions of this Agreement, and also shall fail to
reasonably remedy such default or breach within sixty (60) days after receipt of
written notice thereof; the non-breaching party may, at its option and in
addition to any other remedies that it may have at law or in equity, terminate
this Agreement by sending notice of termination in writing to the other party to
such effect. Termination shall be effective as of the day of the receipt of such
notice.

10.3 Termination of this Agreement by either party for any reason shall not
affect the rights and obligations of the parties accrued prior to the effective
date of termination of this Agreement, except insofar as Sponsor's breach of
contract for failure to make payments under Article 5 shall cause Sponsor to
forfeit its rights under Article 9. The rights and obligations of Article 8 of
this Agreement shall survive termination.

Article 11--Independent Contractor

11.1 In the performance of project, HSC shall be deemed to be and shall be an
independent contractor.

11.2 Neither party hereto is authorized or empowered to act as agent for the
other for any purpose and shall not on behalf of the other enter into any
contract, warranty, or representation as to any matter. Neither party shall be
bound by the acts or conduct of the other.

Article 12--Indemnity

HSC is responsible for its own negligence, gross negligence, willful misconduct,
or legal wrongdoing in any way connected with the performance of any work under
this Agreement which results in claims or liabilities, penalties, costs or
expenses. Sponsor is responsible for its own negligence, gross negligence,
willful misconduct or legal wrongdoing in any way connected with the performance
of

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any work under this agreement which results in claims or liabilities, penalties,
costs or expenses. Sponsor shall fully indemnify and hold harmless HSC against
all claims arising out of Sponsor's use, commercialization, or distribution of
information, materials or products which result in whole or in part from the
research performance pursuant to this Agreement. Sponsor will hold HSC harmless
from any claims arising from third party claims that the work performed
hereunder infringes third party intellectual property rights. HSC has no
knowledge of any such claims.

Article 13--Notices

Notices, invoices, communications, and payments hereunder shall be deemed made
if given by overnight courier or by registered or certified envelope, post
prepaid, and addressed to the party to receive such notice, invoice or
communication at the address given below or such other address as may hereafter
be designated by notice in writing:

If to Sponsor:

Name/Title            Ghassan Nino                      Phone 972/948-4000
                      Interim CEO and VP Finance        FAX 972/701-8534
Address               15889 Preston Road, Suite 2006
City/State/Zip        Dallas, Texas 75248               E-mail:
                                                        GNINO@HEMOBIOTECH.COM

If to HSC:

Name/Title            Dr. Barbara C. Pence              Phone 806/743-2556
                      Associate VP for Research         FAX 806/743-2656
Address               Room 2B106
                      Health Sciences Center            E-mail:
                      Texas Tech University             BARBARA.PENCE@TTUHSC.EDU
City/State/Zip        Lubbock, Texas 79430

For Payment
Matters:

Name/Title            ___________________               Phone:  ________________
Address               ___________________               FAX:    ________________
Address               ___________________               E-Mail: ________________
City/State/Zip        ___________________

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For Techical Issues:

Name/Title            Dr. Jan Simoni                    Phone:  806/743-2370
                      Research Assistant Professor      FAX:    806/743-2113
                      Surgery, Health Sciences Center
                      Texas Tech Universtiy
Address               3601 4th Street                   E-Mail:
City/State/Zip        Lubbock, Texas 79430            jan.simoni@ttmc.ttuhsc.edu

Notice given pursuant to this Article shall be effective as of the day of the
receipt of notice.

Article 14--Governing Law

This Agreement shall be governed and construed in accordance with the laws of
the State of Texas.

Article 15--Dispute Resolution

Except for the right of either party to apply to a court of competent
jurisdiction for a temporary restraining order, a preliminary injunction, or
other equitable relief to preserve the status quo or prevent irreparable harm,
any and all claims, disputes or controversies arising under, out of, or in
connection with the Agreement, including any dispute relating to production, use
or commercialization, which the parties shall be unable to resolve within sixty
(60) days shall be mediated in good faith. The party raising such dispute shall
promptly advise the other party of such claim, dispute or controversy in a
writing, which describes in reasonable detail the nature of such dispute. By not
later than five (5) business days after the recipient has received such notice
of dispute, each party shall have selected for itself a representative who shall
have the authority to bind such party, and shall additionally have advised the
other party in writing of the name and title of such representative. By not
later than ten (10) business days after the date of such notice of dispute, the
party against whom the dispute shall be raised shall select a mediation firm in
Texas and such representatives shall schedule a date with such firm for a
mediation hearing. The parties shall enter into good faith mediation and shall
share the costs equally. If the representatives of the parties

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have not been able to resolve the dispute within fifteen (15) business days
after such mediation hearing, the parties shall have the right to pursue any
other remedies legally available to resolve such dispute in either the Courts of
the State of Texas or in the United States District Court for the District of
Texas, to whose jurisdiction for such purposes HSC and Sponsor each hereby
irrevocably consents and submits.

Article 16--General Provisions

16.1 NON-ASSIGNABILITY--The rights and obligations of the parties under this
Agreement shall not be assignable without written permission of the other party.

16.2 SEVERABILITY--If any provisions hereof is held unenforceable or void, the
remaining provisions shall be enforced in accordance with their terms, provided
that the provision at issue is not material to the overall purpose and
operation of this Agreement.

16.3 ENTIRE AGREEMENT--This Agreement contains the entire agreement between the
parties respecting the subject matter hereof, except for the prior license
agreement between HemoBioTech, Inc., and the Texas Tech University System which
is to be read in conjunction with this Agreement. Should processing of this
Agreement require issuance of a purchase order or other contractual document,
all terms and conditions of the other document are hereby deleted in entirety.
This Agreement may not be amended in any manner except by an instrument in
writing signed by the duly authorized representatives of each of the parties
hereto.

16.4 EXPORT CONTROL REGULATIONS--Sponsor agrees that it shall comply with all
applicable export control regulations of the United States of America. Sponsor
shall be responsible for obtaining all information regarding such regulations
that is necessary for Sponsor to comply with such regulations.

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IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed
in duplicate as of the day and year first above written.

SIGNATURES

Texas Tech University Health Sciences Center

/s/ Barbara C. Pence
----------------------------------
By  Barbara C. Pence, Ph.D.

Title Associate VP for Research
      ----------------------------
Date  7/18/02
      ----------------------------

Sponsor

/s/ Ghassan Nino
----------------------------------

By

Title Interim CEO & CFO
      ----------------------------
Date  7/18/2002
      ----------------------------

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                           MEMORANDUM OF UNDERSTANDING

       This Agreement, effective September 1, 2002, between Texas Tech
University Health Sciences Center (hereinafter HSC) and HemoBioTech, Inc.,
having a principal place of business at 15889 Preston Road, Suite 2006, Dallas,
Texas 75248.

       It is agreed as follows:

       GENERAL POINTS

       If HemoBioTech is successful in obtaining FDA approval of a blood
substitute product, it will establish a $1.2M seed fund to support and
commercialize other HSC ventures.

       Unless otherwise specifically stated below or in the Agreement of which
this is a part, any costs and/or overhead owed by HemoBioTech would be accrued
for one year and then paid by HemoBioTech to HSC.

       This Agreement, including any agreed upon extensions thereof, would last
through the successful completion of Phase II clinical testing, subject to
routine contract approval.

       It is HemoBioTech's present intent to headquarter in, and create its
production facilities in Lubbock, Texas, and it is presently working with Market
Lubbock to assure those events.

       SPECIFICS

       HemoBioTech would upgrade blood substitute production facilities at HSC
to provide GMP facilities for Phase I and II clinical trial materials.

       HSC would have title to all equipment, except the bioreactor and
associated filtration system, once a free standing production facility is built.

       HemoBioTech personnel would have free access to work in the production
facility at HSC and would have access to analytical facilities at HSC, staff and
equipment required to produce, test and certify the product.

       HSC employee, Dr. Jan Simoni, will perform services under this Agreement.
HemoBioTech shall reimburse TTUHSC for that portion of Dr. Simoni's salary and
48% overhead allotted to work performed under this Agreement.

       HSC would allow HemoBioTech employee-researchers/technicians to be hired,
paid for by HemoBioTech, to work in the Blood Substitute Laboratory at HSC.

       HSC would assist in recruiting and hiring at HemoBioTech expense Texas
Tech System students to work as interns at HemoBioTech, such interns being paid
by HemoBioTech on a current basis.

       HSC would allow HemoBioTech to conduct research funded by Federal and
State Grants, should they be obtained, using HSC facilities and paying overhead.
Any such research will be considered funded research and is subject to this
Agreement and Memorandum of Understanding. Written agreements for HemoBioTech to
use HSC facilities will be developed for these additional projects as necessary.

       HSC would work with HemoBioTech in obtaining federal and state grants for
the purpose of advancing blood substitute related research development and
manufacturing activities.

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       FINANCIAL

       As stated above, costs are deferred for one year. Costs associated with
Sponsor's use of equipment, supplies and services provided by HSC will be paid
by Sponsor based on HSC's actual cost. Sponsor will pay overhead for the use of
HSC personnel.

       Dr. Pence, Dr. Simoni and Ghassan Nino of HemoBioTech shall meet
quarterly at HSC to review projected project expenses and agreement upon
payments to be made by HemoBioTech to HSC, until such time as stable longer-term
budgets can be generated.

       CONFLICT

       In the event of a conflict between this Memorandum of Understanding and
the Sponsored Research Agreement to which it is attached, the terms of the
Sponsored Research Agreement will govern.

                                       12Exhibit 10.10

Confidential portions of this Agreement have been omitted pursuant to an order
granting confidential treatment issued by the Commission on May 11, 2005,
pursuant to Rule 406 of the Securities Act of 1933, as amended.

<PAGE>

[GRAPHIC OMITTED]

     TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER

     School of Medicine
     Department of Surgery
                                http://www.ttuhsc.edu/pages/surgery/default.html
     3601 4th Street STOP 8312
     Lubbock, Texas 79430-8312
     (806) 743-2370
     (806) 743-2113 - Fax

Arthur P. Bollon, Ph.D.
Chairman & CEO
HemoBioTech, Inc.
2110 Research Row, Suite 457
Dallas, TX 75235
Tel: (469) 585-7613; Fax: (972) 620-9830; E-mail: arthurb@flash.net

Re: Phase II of the Texas Tech-HemoBioTech Joint Blood Substitute Project.

Date: December 13, 2004

Dear Dr. Bollon:

Texas Tech Administration Officials and I acknowledge the receipt of the funds
for Phase II of the Texas Tech-HemoBioTech Joint Research Project. This week the
account will be established and after a few days actual work on the project will
begin.

We would like to thank you for hosting HemoBioTech's Board of Directors Meeting
at Texas Tech. We are pleased with the results of this important meeting. We are
glad that Mr. Baron, a new member of the Board of Directors, was pleased with
the scientific and technical capability of the Texas Tech Blood Substitute R&D
Team. We are confident that other members of your Board of Directors, Drs.
Mittemeyer and Haeussler will ensure the success of the project.

As we discussed earlier I am including new FDA Guidance for the Blood Substitute
Industry: "Criteria for Safety and Efficacy Evaluation of Oxygen Therapeutics as
Red Blood Cell Substitutes" which will supercede the 1990 "Points to Consider on
the Safety Evaluation of Hb-Based Oxygen Carriers" and replaces the 1997 draft
"Guidance for Industry: Efficacy Evaluation of Hb- and Perfluorocarbon-Based
Oxygen carriers." We can confer this document on Wednesday.

Dr. Bollon we are certain that under your leadership the blood substitute
project will be a commercial success.

Regards,

Jan

/s/ Dr. Jan Simoni
-----------------------------------------------
Dr. Jan Simoni
P.I. of Sponsored Research Agreement
Associate Research Professor of Surgery and Internal Medicine
Texas Tech University Health Sciences Center
Lubbock, TX 79430
Tel: 806-743-2460 ext. 246
Fax: 806-743-2113

Cc:

Dr. Barbara C. Pence, Professor and Associate VP for Research and Dean of the
Graduate School, TTUHSC, Lubbock, TX 79430

Dr. Bernard T. Mittemeyer, Professor and HemoBioTech's Board of Directors
Member, TTUHSC, Lubbock, TX 79430

Ms. June Howard, Director, Office of Sponsored Programs, TTUHSC, Lubbock, TX
79430

Dr. K. Lance Anderson, Director, Office of Technology Transfer and Intellectual
Properties, TTU & TTUHSC, Lubbock, TX 79409

<PAGE>

PROJECT TITLE:    TEXAS TECH-HEMOBIOTECH JOINT BLOOD  SUBSTITUTE PROJECT.
                  PHASE II: U.S. PATENT EXTENSION AND INITIAL IND STAGE.

PROJECT DIRECTOR (AT HEMOBIOTECH, INC.):
                  Arthur P. Bollon, PhD, Chairman & CEO
                  HemoBioTech, Inc.
                  2110 Research Row, Suite 457, Dallas, TX 75235
                  Tel: 469-585-7613; Fax: 971-620-9830
                  Email: arthurb@flash.net
                  Web: http://www.hemobiotech.com

PROJECT PRINCIPAL INVESTIGATOR (AT TTUHSC):
                  Jan Simoni, DVM, PhD
                  Co-Inventor of Texas Tech Blood Substitute
                  Associate Research Professor of Surgery and Internal Medicine
                  Texas Tech University Health Sciences Center
                  School of Medicine
                  3601 4th Street, Office 3A119A, Lubbock, TX 79430
                  Tel: 806-743-2460 x 246; Fax: 806-743-2113
                  Email: jan.simoni@ttuhsc.edu

DATES OF THE ENTIRE PROPOSED PERIOD:
                  December 1, 2004 - November 30, 2005

TOTAL DIRECT COST REQUESTED FOR THE PROJECT:
                  $230,503

PERFORMANCE SITES: Department of Surgery
                   Texas Tech University Health Sciences Center
                   3601 4th Street, Lubbock, TX 79430, and
                   Texas Tech New Deal Farm
                   East of New Deal, TX 79405

APPLICANT ORGANIZATION:
                   Texas Tech University Health Sciences Center
                   Lubbock, TX 79430

TYPE OF ORGANIZATION:
                   State
ORGANIZATIONAL COMPONENT TO RECEIVE CREDIT FOR GRANT:
                   School of Medicine
OFFICIAL SIGNING FOR APPLICANT ORGANIZATION:
                   Barbara C. Pence, PhD, Assoc. Dean/Assoc. VP
                   Office of Research and Graduate School
                   Texas Tech University Health Sciences Center
                   3601 4th Street, BA 112; Lubbock, TX 79430
                   Tel: 806-743-2556; Fax: 806-742-2656
                   Email: Barbara.Pence@ttuhsc.edu
                   Signature: /s/ Barbara C. Pence     Date: 11/19/04

OFFICIAL IN BUSINESS OFFICE TO BE NOTIFIED ABOUT THIS FUNDING:
                   June Howard, Director
                   Office of Sponsored Program, TTUHSC
                   3601 4th Street, Office 1C283, Lubbock, TX 79430
                   Tel: 806-743-2960; Fax: 806-743-2656
                   Signature: /s/ June Howard          Date: 11/19/04

PRINCIPAL INVESTIGATOR SIGNATURE:
                   Signature: /s/ Jan Simoni           Date: 11/18/04

<PAGE>

                          Texas Tech-HemoBioTech Joint Blood Substitute Project.
                           Phase II: U.S. Patent Extension and Initial IND Stage
                                                                          Page 2

1. PROJECT DESCRIPTION:

The proposed  project  represents a joint effort  between Texas Tech  University
Health  Sciences  Center  (TTUHSC) and  HemoBioTech,  Inc.  with an objective to
commercialize the Texas Tech developed blood substitute product. The legal basis
for such an activity is the Sponsored  Research  Agreement and License Agreement
between  Texas  Tech   University   Health  Sciences  Center  (a  licensor)  and
HemoBioTech, Inc (a licensee).

After active participation in Phase I of the project including:

     o   creation of a company structure;

     o   development of the business plan; and

     o    intellectual/scientific/technical   support   during  the  process  of
     searching for an initial venture capital,

the Texas Tech Blood Substitute R&D team led by Dr. Simoni, was asked to provide
further  assistance  to the  company.  As  requested  by Dr.  Arthur P.  Bollon,
Chairman & CEO of HemoBioTech, Inc., during the October 28 meeting, new services
provided by Texas Tech to the company will include:

     o    completion  and submission to the U.S.  Patent and Trademark  Office a
     new patent on the method for stimulating erythropoiesis with the Texas Tech
     developed blood substitute (Project I),

     o    transfer of the *,  pre-clinical   and  clinical   research  data into
     digital pdf format (Project II),

     o    analysis  and  summarization  of the CMC,  pre-clinical  and  clinical
     research data for IND application (Project III),

     o    renovation  and   sanitation  of  the  Texas  Tech  Blood   Substitute
     Production Facility (Project IV), and

     o   establishment of the animal blood donor facility (Project V).

Each  project  will be done at  Texas  Tech  University  using  the  Texas  Tech
intellectual and technical resources and be paid in advance by HemoBioTech, Inc.

PROJECT I: The recently developed a new mechanism of erythropoietic  activity of
Texas Tech's blood  substitute  will be  patented.  This patent will  indirectly
protect the previously patented composition (U.S. Patent No. 5,439,882) and will
extend legal  protection for the Texas Tech invented blood  substitute  product.
The Texas Tech R&D Blood Substitute Team,

* The information omitted is confidential and has been filed separately with the
  Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

<PAGE>

                          Texas Tech-HemoBioTech Joint Blood Substitute Project.
                           Phase II: U.S. Patent Extension and Initial IND Stage
                                                                          Page 3

led by Dr.  Simoni  established  that the Texas  Tech blood  substitute  product
effectively  stimulates  erythropoietic  responses *. Using the  intramural  and
private funds,  Dr. Simoni has established  that the Texas Tech blood substitute
has erythropoietic activity under *. To submit the successful patent application
it is believed that such a response should also be tested under * conditions.

To speed up the process,  HemoBioTech,  Inc. has agreed to provide the financial
resources to complete this study.

As requested by Dr. Bollon,  this study should be completed in * after receiving
the  necessary  funds.  This  project  will also  require  that Dr.  Simoni will
prepare, in the next *, a complete patent application.

This project will also include  additional * (i.e.,  detection of * level in the
HemoTech(TM) preparations; additional * tests; additional * tests; evaluation of
a new method for *, etc.).  This project will be completed in * after completion
of the * study.  Some elements of this project will continue  through the entire
funding period.

The detailed budget is presented as ATTACHMENT 1.

PROJECT II: The transfer of the * pre-clinical and clinical data into a pdf file
will require  manual  handling of ca. * different  documents.  This work will be
done by the Electron  Microscopy and Medical  Photography  Center of TTUHSC. The
entire process will be coordinated by Dr. Simoni, and is required by the FDA.

The detailed budget and timetable of completion is presented as ATTACHMENT 2.

PROJECT III:  Analysis and  summarization  of the *,  pre-clinical  and clinical
research data will require evaluation of ca. different documents. This work will
be done by Dr. Simoni * and Dr. Mario Feola,  an employee of  HemoBioTech,  Inc.
(pre-clinical  and clinical  data).  This project  (Dr.  Simoni's  part) will be
completed in * days after  completion of the * study.  Dr.  Feola's part will be
completed in *

The detailed budget is presented in ATTACHMENT 1.

* The information omitted is confidential and has been filed separately with the
  Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

<PAGE>

                          Texas Tech-HemoBioTech Joint Blood Substitute Project.
                           Phase II: U.S. Patent Extension and Initial IND Stage
                                                                          Page 4

PROJECT IV: The  remodeling and  sanitation of the Blood  Substitute  Production
Facility will be done by the Texas Tech's  Facilities  Planning and Construction
Department  and the  Blood  Substitute's  R&D Team  under the  direction  of Dr.
Simoni.  This project can be completed in * days after  receiving  the necessary
funds.

The detailed budget is presented as ATTACHMENT 3.

PROJECT V: The  establishment of the animal blood donor facility will be done in
cooperation with the Department of Animal Sciences at TTU. This facility will be
located at * in * and supervised by Dr. Simoni. The  remodeling/renovation  part
of this project can be completed in * days after receiving the necessary  funds.
This project will continue through the entire funding period.

The detailed budget and timetable of completion is presented as ATTACHMENT 4.

2. TECHNICAL AND MANAGERIAL  RESOURCES.  Texas Tech  University  Health Sciences
Center with twenty years of  experience  in the blood  substitute  field has all
intellectual  and technical  resources to successfully  complete Phase II of the
project.

All the personnel involved are highly qualified,  well recognized experts in the
blood  substitute  field.  The proposed  structure for the  management  team was
presented to Dr. Bollon during the October 28 meeting.

3. FUNDING REQUESTS: The total funds requested for Phase II (projects I, III, IV
and V) of the project are $230,502.  This amount includes 25% overhead that will
cover use of the TTUHSC facilities during the funding period.

This budget is not yet related to the *. From this  budget,  however,  certain *
activities  will be conducted  (i.e.,  additional * tests,  evaluation  of a new
method for *, detection of * in HemoTech(TM), etc.).

The detailed budget for each project is presented as attachments 1, 3 and 4.

The budget for Project 2 (transfer of the * pre-clinical  and clinical data into
pdf format) * is presented  separately (SEE ATTACHMENT 2). The funds for Project
2 ($8,000 - $12,000) will be transferred  directly from HemoBioTech,  Inc. to EM
Center at TTUHSC (w/o 25%  overhead).  Dr. Simoni and other members of his Blood
Substitute  R&D Team are not  HemoBioTech  employees and should be reimbursed by
the  company  for  their  services.  Moreover,  Dr.  Simoni  does  not  own  any
HemoBioTech's stock.

* The information omitted is confidential and has been filed separately with the
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

<PAGE>

                          Texas Tech-HemoBioTech Joint Blood Substitute Project.
                           Phase II: U.S. Patent Extension and Initial IND Stage
                                                                          Page 5

Since Dr. Simoni and his team members will provide  services to the company on a
regular basis, therefore the salaries for the personnel are for 12 months. After
completion  of the  proposed  Phase  II of the  project  the  personnel  will be
assigned to the next phase of the program.

Dr. Mario Feola,  however, as a full time  HemoBioTech's  employee and no longer
employed by the Texas Tech University  System,  should not be reimbursed for his
services through this Sponsored Research Agreement.

SUBMITTED BY:
JAN SIMONI, DVM, PhD
Associate Research Professor of Surgery and Internal Medicine
P.I. of Sponsored Research Agreement
TTUHSC, School of Medicine
Lubbock, TX 79430
SIGNATURE: /s/ Jan Simoni               DATE: 11/18/04

APPROVED BY:
BARBARA C. PENCE, Ph.D.
Associate Vice President for Research and
Associate Dean for Research and the Graduate School
Office of Research and the Graduate School, TTUHSC, Lubbock, TX 79430
Signature: /s/ Barbara C. Pence         DATE: 11/19/04

MS. JUNE HOWARD
Director, Office of Sponsored Programs
TTUHSC, Lubbock, TX 79430
SIGNATURE: /s/ June Howard              DATE: 11/19/04

LANCE ANDERSON, JD
Director, Office of Technology Transfer and Intellectual Properties
TTU & TTUHSC, Lubbock, TX 79414
SIGNATURE: /s/ Lance Anderson           DATE: 11/19/04

<PAGE>

PROJECT II

ATTACHMENT 1
PROJECT TITLE:        The Texas Tech-HemoBioTech Joint Blood Substitute Project.
                      Phase II: U.S. Patent Extension and Initial IND Stage.

<TABLE>
<CAPTION>
PROJECT DIRECTOR (at HemoBioTech, Inc.):                        Dr. Arthur P. Bollon
PROJECT PRINCIPAL INVESTIGATOR (at TTUHSC):                     Dr. Jan Simoni
DETAILED BUDGET FOR PHASE II OF THE PROJECT

FROM: December 1, 2004                                          THROUGH: November 30, 2005/(1)
SALARY:
NAME                  ROLE ON         TYPE      %              DOLLAR AMOUNT REQUESTED
                      PROJECT         APPT      EFF    SALARY    SALARY      FRINGE    TOTAL
                                      (mo)               BASE   REQUESTED
<S>                   <C>             <C>       <C>     <C>     <C>          <C>       <C>

SOMONI, Jan           P.I.             *         *%       *         *          *         *
MOELLER, John F.      Post-doc         *         *%       *         *          *         *
SIMONI, Grace         Med. Res.        *         *%       *         *          *         *
To be hired           Animal Tech.     *         *%       *         *          *         *
SALARY SUBTOTALS:                                                   *          *         *
CONSULTANTS                                                         *          *         *
EQUIPMENT (Itemize):                                                *
Phase II of this project will not require any equipment above $*.
However, modern computer (laptop) is needed for data collection and acquisition:
SUPPLIES: (Itemize by category):
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
*                                                                              *
TOTAL (including computer)
ALTERATIONS AND RENOVATIONS:
Renovation and sanitation the Texas Tech Blood Substitute Production Facility:           *
(the exact cost will be determined later)
Renovation/remodeling of the Animal Blood Donor Facility (New Deal Farm):                *
(Cattle Facility Option 2)
OTHER EXPENSES:
Photocopying, postage, phone, secretarial, e-mail/internet connection:                   *
(Cost of the CMC, pre-clinical, clinical research data transfer into the pdf
file presented separately as Attachment 2)
TRAVEL: For P.I. and co-investigators to travel to company headquarter,
FDA, etc.:                                                                               *
SUBTOTAL DIRECT COST FOR PHASE II OF THE PROJECT:                                        *
TTUHSC OVERHEAD (25% of 158,002 base-excluding alterations/renovations)                  *
TOTAL FOR PHASE II:                                                                  230,503
</TABLE>

/(1)   THIS BUDGET REFLECTS THE PROJECT I, III, IV AND V AND IS NOT YET RELATED
       TO *

     FROM THIS BUDGET, HOWEVER, CERTAIN * ACTIVITIES WILL BE CONDUCTED (I.E.,
ADDITIONAL * TESTS, EVALUATION OF A NEW METHOD FOR *, DETECTION OF * IN
HEMOTECH(TM), ETC). THE EXACT COST OF THE PROJECT II (TRANSFER OF THE *,
PRE-CLINICAL AND CLINICAL RESEARCH DATA INTO PDF FORMAT) IS PRESENTED AS
ATTACHMENT 2 AND FUNDS WILL BE TRANSFERRED DIRECTLY FROM HEMOBIOTECH, INC. TO
EM CENTER AT TTUHSC(W/O OVERHEAD).

* The information omitted is confidential and has been filed separately with the
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

<PAGE>

PROJECT II

ATTACHMENT II

DOCUMENT SCANNING AND CONVERSION TO PDF

BASED ON AN ANTICIPATED VOLUME OF * PAGES:

The department of Medical Photography and Electron Microscopy will scan and
convert documents of PDF at the rate of $* to $* per page ($8,000.00 to
$18,000.00). Rate applied will be based on the complexity of scanning and
converting individual documents. We do not believe that actual cost will be the
maximum figure due to the fact that a large majority of the documents will not
be highly complex. However, the final cost will be established after the project
has been completed.

As we discussed during the meeting, Oct 28, 2004; Medical Photography can
provide other services relating to the presentation of IND research data as
required by the FDA. Our unit can also help in the preparation of clinical and
research data during phase one of clinical trial. Such activities will require
the development of a supplemental budget. We are open to other request relating
to electronic documentation, presentation and secure transfer of data generated
through activities at Texas Tech University Health Sciences Center Sponsored
Research Agreement or directly to HemoBio Tech Inc.

DOCUMENT SCANNING/CONVERSION TIMETABLE:

Medical Photography and Electron Microscopy estimates it will take approximately
* to properly scan and convert the anticipated volume, * pages. All documents
will be prepared according to Guidance for Industry Providing Regulatory
Submission is Electronic Format -- General Considerations, U.S. Department of
Health and Human Services Food and Drug Administration.

ADDENDUM: BID ACCEPTANCE, NOVEMBER 18, 2004

IN REFERENCE TO THE HEMOBIO TECH LETTER SENT TO DR. JAN SIMONI, DATED NOVEMBER
6, 2004.
The department of Medical Photography and Electron Microscopy will perform the
transfer of information to a digital format at the rate of $* to $* per page,
not to exceed $8,000 to $12,000 for documents required to complete Phase II.
Work will begin only after billing and payment procedures have been established
between the department of Medical Photography and Electron Microscopy and
HemoBio Tech. To set up these procedures, please contact:

Neal Hinkle
Manager -- Medical Photography and Electron Microscopy
Texas Tech University Health Sciences Center
3601 4th Street STOP 9042
Lubbock, Texas 79430-9042

(806) 743-1366 Office
(806) 743-1221 FAX

neal.hinkle@ttuhsc.edu

* The information omitted is confidential and has been filed separately with the
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

<PAGE>

PROJECT II
ATTACHMENT 3

RENOVATION AND SANITATION OF THE TEXAS TECH BLOOD SUBSTITUTE
PRODUCTION FACILITY.

The cost should not exceed *.

The renovation and sanitation of the Texas Tech Blood Substitute Production
facility will include:

1) *
2) Replacement of the * chamber
3) Replacement of the * chamber
4) Replacement of * chamber
5) Replacement of * chamber
6) Replacement of the * chamber
7) Replacement of  *
8) Replacement of  *
9) Replacement of  *

The replacement of * and replacement of * * will be included in the HemoTech's
production budget.

* The information omitted is confidential and has been filed separately with the
Commission pursuant to Rule 406 of the Securities Act of 1933, as amended.

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