Document:

Exhibit 10.1

                              EMPLOYMENT AGREEMENT

       This Employment Agreement ("Agreement") is effective as of the 1st day of
November, 2005, ("Effective Date") by and between OpBiz, LLC, a Nevada Limited
Liability Company ("Company") and Darby Davies ("Employee"). Together, Company
and Employee are sometimes collectively referred to as "Parties" or
independently as "Party."

       1. Employment. Effective as of the Commencement Date, as defined in
Paragraph 3, Employee shall be employed by Company as Senior Vice President of
Casino Marketing, on the terms and conditions set forth herein. In such
capacity, Employee shall be assigned such duties and responsibilities consistent
with her status and position.

          Employee accepts such employment and agrees that throughout the period
of her employment by Company, she will devote her full business time, attention,
knowledge and skills, faithfully and to the best of her ability in furtherance
of the business of Company, and that she will perform the duties assigned to her
pursuant to this Paragraph 1. Employee shall report to and be subject, at all
times, to the direction and control of the Company's Chief Executive Officer.
Employee shall, at all times, be subject to, observe and carry out such rules,
regulations, policies, directions and restrictions as Company may from time to
time reasonably establish. Employee further agrees to perform her duties in an
efficient, trustworthy, lawful, and businesslike manner. Employee agrees not to
render to others any service of any kind whether or not for compensation, or to
engage in any other business activity whether or not for compensation, that is
similar to or conflicts with the performance of Employee's duties under this
Agreement, without the prior written approval of the Board. Such services shall
be rendered primarily in Las Vegas, Nevada. During the period of Employee's
employment hereunder, she shall not, directly or indirectly, accept employment
or compensation from or perform services of any nature for any business
enterprise other than Company or its affiliates.

       2. Policies and Procedures. Employee agrees to be bound by Company's
policies and procedures including drug testing and background checks, as they
may be established or amended by Company in its sole discretion from time to
time. In the event the terms in this Agreement conflict with Company's policies
and procedures, the terms herein shall take precedence. Company recognizes that
it has a responsibility to see that its employees understand the adverse effects
that problem gambling and underage gambling can have on individuals and the
gaming industry as a whole. Employee agrees to read, understand, and comply with
Company's policy prohibiting underage gaming and supporting programs to treat
compulsive gambling.

       3. Term. Unless terminated earlier pursuant to the provisions set forth
herein, the term of this Agreement shall be three (3) years, commencing on
January 2, 2006 ("Commencement Date") and terminating on December 31, 2008.

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       4. Compensation.

          a. Base Salary. As compensation for her services to Company, as
provided in Paraqraph 1, Company will pay to Employee a base salary of $250,000
per annum ("Base Salary"). Such salary shall be reviewed by Company annually and
increased in accordance with Employee's performance. In no event shall
Employee's Base Salary be reduced. Employee's salary shall be payable in equal
installments in accordance with Company's normal payroll policy.

          b. Bonus Compensation. Employee is eligible to participate in
Company's bonus program as formulated from time to time by Company's Board of
Directors. ("Company Bonus Program"). Notwithstanding the foregoing, Company
shall pay Employee an annual bonus of at least ("Minimum Annual Bonus"): i)
$50,000 on the first anniversary of the Commencement Date; ii) $75,000 on the
second anniversary of the Commencement Date; and iii) $100,000 on December 31,
2008.

          c. Stock Options. Subject to the prior approval of Company's option
plan by the Nevada Gaming Commission, Company shall grant Employee options to
purchase a .25% (subject to dilution as set forth in the option plan) equity
interest in Mezzco, LLC (or such other entity as determined by the option plan).
Employee's options shall carry a strike price based on a $100 million equity
value and will vest in three (3) installments as follows:

             i.   40% on the first anniversary date;
             ii.  40% on the second anniversary date; and
             iii. 20% on December 31, 2008.

Company shall set forth in writing the terms and conditions of the option grant,
which upon Employee's approval, shall be deemed incorporated into this
Agreement. Employee's review and approval, in her sole discretion, of the
specific terms and conditions of the option grant are a condition precedent to
Employee's obligations under this Agreement.

       5. Employee Benefits. Employee shall be entitled to participate in any
hospitalization or medical insurance plans, 401(K) plan or other employee
benefit plans which are generally available on a group basis to Company
employees of comparable level and status which may be in effect from time to
time during the period of Employee's employment hereunder. Notwithstanding
anything to the contrary in this Agreement, Company shall provide Employee, at
Company's expense, health insurance beginning on January 2, 2006.

       6. Vacation. Employee shall be entitled to a three (3) weeks paid
vacation each year (in addition to Company-wide holidays), during the period of
her employment by Company.

       7. Expenses. Company shall reimburse Employee for expenses reasonably
incurred by her in connection with the performance of her duties hereunder and
the business of Company, upon submission of appropriate vouchers and receipts
provided that such expenses shall in all events be within applicable limits
under Company's current travel and entertainment policy.

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       8. Licensing Requirements. Employee acknowledges that Company is engaged
in a business that is or may be subject to and exists because of privileged
licenses issued by governmental authorities in Nevada and other jurisdictions in
which Company is engaged or has applied or may apply to engage in the gaming
business. If requested to do so by Company, and at Company's sole expense,
Employee shall apply for and obtain any license, qualification, clearance or the
like that shall be requested or required of Employee by any regulatory authority
having jurisdiction over Company.

       9. Failure to Satisfy Licensing Requirement. If Employee fails to satisfy
any licensing requirement referred to in Paragraph 8 above, or if any
governmental authority directs the Company to terminate any relationship it may
have with Employee, this Agreement may be terminated by Company and the parties'
obligations and responsibilities shall be determined by the provisions of
Paragraph 12.

       10. Restrictive Covenants.

           a. Non-Competition. During the term of this Agreement, Employee will
not directly or indirectly engage in any activity which competes with Company or
any subsidiary or affiliate of Company. During the term of this Agreement,
Employee agrees not to plan with others or otherwise take any preliminary steps,
either alone or in concert with others, or on her own behalf, or on behalf of
any other person, to create or engage in any business enterprise that would be
in competition with Company or any subsidiary or affiliate of Company.

              Employee agrees that, at all times after the termination or
expiration of this Agreement, Employee shall not use Company's proprietary
information to directly or indirectly (whether as principal, agent, independent
contractor, partner, employee, shareholder or otherwise) own, manage, operate,
control, participate in, perform services for, or otherwise carry on any
business or activity competitive with that of Company.

           b. Non-solicitation of Company's Employees. Employee agrees that she
will not, during the term of this Agreement and thereafter for a period of
twelve (12) months, directly or indirectly: (i) solicit any of Company's
employees for a competing business; or (ii) induce or attempt to induce any of
Company's employees to terminate their employment with Company.

       11. Termination for Death or Disability. Employee's employment hereunder
shall terminate upon Employee's death or Disability (as defined below). In the
event of Employee's death or Disability, Employee (or Employee's estate or

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beneficiaries in thecase of death) shall have no right to receive any
compensation or benefit hereunder or otherwise from Company on and after the
effective date of termination of employment other than (i) unpaid Base Salary
earned to the date of termination of employment (which shall be paid on
Company's next scheduled payroll date), (ii) any earned but unpaid bonus then
payable to Employee (which shall be paid on Company's next scheduled payroll
date), (iii) business expense reimbursement pursuant to Paragraph 7, and (iv)
benefits provided pursuant to Paragraph 5, subject to the terms and conditions
applicable thereto. For purposes of this Paragraph 11, Disability is defined as
Employee's incapacity, certified by a licensed physician selected by Employee
and approved by Company, which precludes Employee from performing the essential
functions of Employee's duties hereunder for fourty-five (45) days or more.
Notwithstanding anything to the contrary in this Agreement, Company shall
purchase disability insurance for Employee's benefit which will compensate
Employee subject to and in accordance with Company's disability benefits for its
executives as such program is amended from time to time.

       12. Termination for Cause. In addition to any other rights and remedies
provided by law or this Agreement, Company may terminate Employee's employment
under this Agreement forthwith upon written notice for "cause." For purposes of
this paragraph "cause" shall include: (i) commission of any act of material
fraud or gross negligence by Employee in course of her employment hereunder
which, in the case of gross negligence, has a materially adverse affect on the
goodwill, business or financial condition of Company; (ii) engagement by
Employee in any conduct or commission by Employee of any act which is materially
injurious or detrimental to the substantial interest of Company; (v) engagement
by Employee in any act, whether with respect to her employment or otherwise,
which is in violation of the criminal laws of the United States or any state
thereof, involving acts of moral turpitude; (vi) a failure to secure or maintain
licensing as set forth in Paragraph 9. Prior to a termination for cause under
this Paragraph 12, the Company must provide a written letter of deficiency to
Employee which details Employee's deficient conduct and thereafter provide
Employee 30 days to cure such deficiency if capable of being cured. If such
activity is incapable of being cured or if, after 30 days, Employee fails to
cure the deficient conduct, Company may terminate this Agreement "for cause." If
Company elects to terminate this Agreement, Company shall send a second letter
to Employee terminating Employee that memorializes the failure of Employee to
cure the asserted deficiency.

          If Employee's employment by Company shall be terminated pursuant to
this Paragraph 12, Employee shall be entitled to receive only the Base Salary
actually earned and payable to her pursuant to Paragraph 4 above, through the
date of termination of her employment, together with any unreimbursed expenses
and other accrued employee benefits (as described above), through the date of
termination. Employee shall not thereafter be entitled to receive any further
salary, Bonus (except as contemplated by the next sentence hereof), expenses,
benefits or other compensation of any kind hereunder. A Bonus which has been
earned but not paid shall nonetheless be paid at the time it would otherwise be
payable.

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       13. Termination Without Cause. If Company elects to terminate Employee's
employment other than for "cause," as provided in Paragraph 12 above, or for
death or disability, as provided in Paragraph 11 above, Company must give
Employee fifteen (15) days written notice of its intent to terminate this
Agreement ("Termination Notice"). At the conclusion of the 15 day notice period,
Employee shall have no further obligations to Company, except as otherwise set
forth in this Agreement. If Company terminates Employee's employment under this
Paragraph 13 Employee shall be entitled to receive from Company: (i) eighteen
(18) months, but not to exceed the balance of the Term of this Agreement, Base
Salary to which she would have been entitled had this Agreement not been
terminated prior to the conclusion of the Term, as defined in Paragraph 3 (ii)
any Bonus which has been earned but not paid; (iii) business expense
reimbursement pursuant to Paragraph 7, and (iv) benefits provided pursuant to
Paragraph 5. Amounts payable by Company under this Paragraph 13 shall be payable
when and as the same would have otherwise have been payable under the terms
hereof. Without limiting the definition or circumstances constituting "without
cause", the following shall, at Employee's election, constitute a termination of
this Agreement by Company without cause pursuant to the provisions of this
Paragraph 13: (i) the breach by Company of any of its material obligations under
this Agreement, which breach is not fully cured promptly upon written notice to
Company; (ii) a material reduction in the scope of the duties, responsibilities
or authority of Employee; or (iii) any change in Employee's line of reporting.

       14. Termination by Employee. Employee may terminate Employee's employment
hereunder upon thirty (30) days' prior written notice to Employer. If Employee
shall terminate his employment other than for (i) death, (ii) Disability, (iii)
Employer's breach of its material obligations under this Agreement, (iv)
material reductions in the scope of Employee's duties, responsibilities or
authority without her consent, or (v) any change in Employee's line of
reporting, Employee shall have no right to receive any compensation or benefit
hereunder or make any other claims against Employer or any member of the
Employer Group on and after the effective date of termination of employment
other than (1) unpaid Base Salary earned to the date of termination of
employment (which shall be paid on Employer's next scheduled payroll date), (2)
any bonus which has been earned but not yet paid, (3) business expense
reimbursement pursuant to Paragraph 7, and (4) benefits provided pursuant to
Paragraph 5, subject to the terms and conditions applicable thereto.

       15. Notices. All notices, requests, demands and other communications
provided for by this Agreement shall be in writing and shall be deemed to have
been given at the time (1) delivered if personally delivered, (2) transmitted by
facsimile transmission, or (3) deposited for mailing at any general or branch
United States Post Office enclosed in a registered or certified postpaid
envelope and addressed as follows:

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Company:                                 Michael V. Mecca
                                         OpBiz, LLC
                                         3667 Las Vegas Blvd. South
                                         Las Vegas, Nevada 89109

With a Copy to:                          Mark Helm
                                         OpBiz, LLC
                                         3667 Las Vegas Blvd. South
                                         Las Vegas, Nevada 89109

Employee:                                Darby Davies
                                         P.O. Box 30277
                                         Las Vegas, NV 89173

With a Copy to:                          Daniel P. Ayala, Esq.
                                         Ayala & Associates
                                         400 South Fourth Street
                                         Third Floor
                                         Las Vegas, Nevada 89101

The Parties hereto may designate a different place at which notice shall be
given, provided, however, that any such notice of change of address shall be
effective only upon receipt.

       16. Assiqnment. Neither this Agreement nor the right to receive any
payments hereunder may be assigned by Employee. Except as otherwise specifically
set forth in this Agreement, it is the intention of the Parties hereto that
Employee remain employed pursuant to the provisions hereof by any successor of
Company, whether by merger, consolidation, acquisition of all or substantially
all of the business or assets, or otherwise, and a company shall have the right
to assign this Agreement to any such successor in interest. This Agreement shall
be binding upon Employee, her heirs, executors and administrators, and upon
Company, its successors and assigns.

       17. Employee's Representations and Warranties. Employee represents and
warrants to Company as follows:

           a. Employee has the unfettered right to enter into this Agreement on
the terms and subject to the conditions hereof, and Employee has not done or
permitted to be done anything which may curtail or impair any of the rights
granted to Company herein.

           b. Neither the execution and delivery of this Agreement by Employee
nor theperformance by Employee of any of Employee's obligations hereunder
constitute or will constitute a violation or breach of, or a default under, any
agreement, arrangement or understanding, or any other restriction of any kind,
to which Employee is a party or by which Employee is bound.

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       18. Company's Representations and Warranties. Company represents and
warrants to Company as follows:

           a. Company has the unfettered right to enter into this Agreement on
the terms and subject to the conditions hereof;

           b. Neither the execution and delivery of this Agreement by Company
nor the performance by Company of any of Company's obligations hereunder
constitute or will constitute a violation or breach of, or a default under, any
agreement, arrangement or understanding, or any other restriction of any kind,
to which Company is a party or by which Company is bound;

           c. Company shall improve the property historically known as the
Aladdin Resort Hotel and Casino to convert same into the Planet Hollywood Resort
& Casino, including, but not limited to, construction and remodel of the casino
gaming area and a casino high-limit room.

       19. Indemnification. Except for damages or losses arising out of
Employee's gross negligence, Company agrees to hold harmless and indemnify
Employee to the extent permitted by law against all damages and/or losses which
Employee may suffer as a result of any third-party claim, action, suit or
proceeding to which she may become a party by reason of Employee's services as
and/or for activities engaged in by Employee while Employee is acting as an
officer and/or employee of Company or any affiliate thereof. Company shall
advance any attorneys fees or costs incurred by Employee as a result of any such
third-party claim, action, suit or proceeding immediately upon Employee's
written request for same. This indemnity shall survive the termination of this
Agreement.

       20. Merger. This Agreement, including any exhibits hereto, supercedes all
prior or simultaneous representations, discussions, negotiations and agreements,
whether written or oral, between the Parties hereto with respect to the matters
contemplated herein and constitutes the entire agreement among the Parties.

       21. No Waiver. No rights under this Agreement may be waived, except by an
instrument in writing signed by the party to be charged with such waiver. No
consent by either Party to, or waiver of, a breach by either Party, whether
express or implied, will constitute a consent to, waiver of, or excuse of any
other, different or subsequent breach by either Party.

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       22. Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA, WITHOUT GIVING EFFECT TO THE
CONFLICT-OF-LAW RULES AND PRINCIPLES OF SAID STATE. Any legal action between the
Parties to this Agreement arising from or relating to this Agreement shall be
brought in a court of proper jurisdiction in the County of Clark, State of
Nevada.

       23. Time of Essence. Time is of the essence in the performance of and
compliance with each of the provisions and conditions of this Agreement.

       24. Attorney' s Fees. In any action among the Parties which in any way
arises from or relates to this Agreement, the prevailing party shall be entitled
to recover his/her costs and reasonable attorney's fees.

       25. Joint Drafting. The Parties have jointly drafted this Agreement and
it shall not be construed either for or against any of the Parties based on
their role in drafting it.

       26. Construction. Words in any gender shall be deemed to include the
other gender. The singular shall be deemed to include the plural and vice versa.
The headings and underlined paragraph titles are for guidance only and shall
have no significance in the interpretation of this Agreement.

       27. Business Days. If any of the dates specified in this Agreement shall
fall on a Saturday, a Sunday or a holiday, then the date of such action shall be
deemed to be extended to the next business day.

       28. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which when
taken together shall constitute one and the same instrument. The signature page
of any counterpart may be detached therefrom without impairing the legal effect
of the signature(s) thereon provided such signature page is attached to any
other counterpart identical thereto except having additional signature pages
executed by other parties to this Agreement attached thereto.

       29. Severability. The invalidity or unenforceability of any part of this
Agreement shall not invalidate or affect the remainder, which shall continue to
govern the relative rights and duties of the Parties as though the invalid or
unenforceable part were not a part hereof.

       30. Headings. Any titles, headings and/or table of contents in this
Agreement have been inserted for convenience of reference only. They shall not
define, modify or restrict the meaning or interpretation of the terms or
provisions of this Agreement.

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       31. Acceptance of Facsimile Signature. A facsimile signature shall be
deemed acceptable as an original.

       IN WITNESS WHEREOF, the Parties acknowledge under penalties of perjury
that the matters and facts set forth in this Agreement are true and that they
have signed this Agreement to be effective as of the date first written above.

COMPANY:                                OpBiz, LLC, a Nevada Limited
                                        Liability Company

                                        /s/  Michael V. Mecca
                                        -----------------------
                                        By:  Michael V. Mecca
                                        Its: President/CEO

                                        /s/ Darby Davies
                                        -----------------------
EMPLOYEE:                               Darby Davies

                                  Page 9 of 9LICENSE AGREEMENT

                                 BY AND BETWEEN

                             PHARMAFRONTIERS CORP.

                                       AND

                  SHANGHAI INSTITUTES FOR BIOLOGICAL SCIENCES,
                           CHINESE ACADEMY OF SCIENCES

                          Dated as of January 13, 2006

<PAGE>

                               TABLE OF CONTENTS

ARTICLE I DEFINITIONS AND INTERPRETATION................................1
   1.1     Definitions..................................................1
   1.2     Interpretation...............................................1
ARTICLE II GRANT OF LICENSE.............................................2
   2.1     Grant of License by Licensor.................................2
   2.2     Fully Exclusive License......................................2
   2.3     Covenant Not to Sue..........................................2
   2.4     Sublicenses..................................................2
   2.5     Rights after Patent Expiration...............................2
   2.6     No License To Other Rights...................................2
ARTICLE III PAYMENTS AND REPORTS........................................3
   3.1     Payment......................................................3
   3.2     Royalties....................................................3
   3.3     Report and Payments of Royalties.............................3
   3.4     Method of Payment............................................4
   3.5     Audit........................................................4
   3.6     Expiration or Suspension of Royalty Payment..................4
   4.1     Organization, Good Standing and Power........................4
   4.2     Authorization and Validity of Agreement......................4
   4.3     No Conflict, Required Filings and Consents...................5
   4.4     Absence of Litigation........................................5
   4.5     Certain Agreements...........................................5
   4.6     Licensed Technology..........................................5
   4.7     No Knowledge of Infringement.................................6
   4.8     Disclaimer of Other Warranties...............................6
ARTICLE V COVENANTS OF LICENSOR AND LICENSEE............................6
   5.1     Licensor Cooperation.........................................6
   5.2     Licensee Marketing and Sales Activities......................6
   5.3     Data Sharing.................................................6
   5.4     Patent Prosecution...........................................6
   5.5     Intellectual Property Protection - Infringement..............7
   5.6     Third Party Infringement Suit................................8
   5.7     Licensor-Based Clinical Studies; Right of First Refusal......8
   5.8     Confidentiality Treatment of Confidential Information........8
   5.9     Assistance With Translation..................................9
   5.10    Cooperation During Dispute...................................9
   5.11    Product Development..........................................9
ARTICLE VI PUBLICATION..................................................9
ARTICLE VII TERM AND TERMINATION.......................................10
   7.1     Term   10
   7.2     Termination for Default.....................................10
   7.3     Termination by Mutual Agreement.............................10
   7.4     Termination by Licensee.....................................10
   7.5     Effect of Termination.......................................10
ARTICLE VIII INDEMNIFICATION
   8.1     Indemnification.............................................11
   8.2     Third Party Claims..........................................11

                                       i
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ARTICLE IX LIMITATIONS OF LIABILITY....................................11
   9.1     Limitation of Liability.....................................11
   9.2     Insurance...................................................11
ARTICLE X DISPUTE RESOLUTION...........................................12
   10.1    Dispute Resolution..........................................12
   10.2    Waiver of Sovereign Immunity................................12
ARTICLE XI MISCELLANEOUS...............................................12
   11.1    Governing Law; Venue........................................12
   11.2    Notices.....................................................12
   11.3    Severability................................................13
   11.4    Non-Waiver..................................................13
   11.5    Successors..................................................13
   11.6    Entire Agreement............................................13
   11.7    Amendments..................................................13
   11.8    Trademark...................................................13
   11.9    Counterparts................................................14
   11.10   Assignment..................................................14
   11.11   Further Assurances..........................................14
   11.12   Headings....................................................14
   11.13   Survival of Representations, Warranties, and Covenants......14
   11.14   Export Controls.............................................14
Exhibit A DEFINITIONS
Exhibit B SCIENTIFIC AND CLINICAL INFORMATION TO BE DELIVERED

                                       ii
<PAGE>

                               LICENSE AGREEMENT

     THIS LICENSE AGREEMENT (the  "Agreement"),  is entered into and dated as of
January  13,  2005,  by  and  between  PHARMAFRONTIERS  CORP.  ("Licensee"),   a
corporation  organized and existing under the laws of the State of Texas, United
States of America, and the SHANGHAI INSTITUTES FOR BIOLOGICAL SCIENCES,  CHINESE
ACADEMY OF  SCIENCES  ("Licensor"),  an  institution  with legal  person  status
organized and existing under the laws of the People's Republic of China ("PRC").
"Party" and "Parties" means Licensor and/or Licensee as the case may be.

     WHEREAS,  Licensor has  developed  and owns certain  intellectual  property
relating to the treatment of patients  suffering from rheumatoid  arthritis with
an "autologous" T-cell vaccine; and

     WHEREAS, Licensee desires to obtain a license to such intellectual property
and Licensor is willing to grant such license to Licensee,  all on the terms and
conditions set forth herein.

     NOW, THEREFORE, for and in consideration of the premises and other good and
valuable  consideration,  the  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the Parties agree as follows:

                                   ARTICLE I
                         DEFINITIONS AND INTERPRETATION

     1.1 Definitions.  Capitalized terms not otherwise defined herein shall have
the meanings set forth on Exhibit A attached hereto.

     1.2 Interpretation. Unless the context requires otherwise:

          (a) As used in this Agreement, all defined terms include the plural as
well as the singular.

          (b) Any  agreement,  document or instrument  defined or referred to in
this Agreement shall include each amendment, modification and supplement thereto
and waiver thereof as may become  effective from time to time in accordance with
the terms thereof, except where otherwise indicated.

          (c)  The  terms   "hereof"  or   "thereof,"   "herein"  or  "therein,"
"hereunder" or "thereunder,"  and comparable terms refer to the entire agreement
with  respect to which such  terms are used and not to any  particular  article,
section or other subdivision thereof.

          (d) The words  "include,"  "includes" and "including" are not limiting
and shall mean "including without limitation."

          (e) A reference  to any Person or Party  includes its  successors  and
permitted assigns.

          (f)  A  reference   to  any   governmental   authority   includes  any
governmental  authority  succeeding  to  the  functions  and  capabilities  of a
governmental authority.

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<PAGE>

          (g) Any  reference  to money  refers to legal  currency  of the United
States of America.

          (h) Any reference in this  Agreement to an "Article" or "Section" is a
reference to an article or section to this  Agreement,  except  where  otherwise
expressly indicated.

          (i) Any  reference in this  Agreement to a "day" is a calendar day and
shall include Saturdays,  Sundays and holidays,  except that if an obligation to
be performed under this Agreement  falls due on a Saturday,  Sunday or any other
day which is not a Business Day, the obligation  shall be deemed due on the next
occurring Business Day.

                                   ARTICLE II
                                GRANT OF LICENSE

     2.1 Grant of License by Licensor.  Subject to the terms and  conditions  of
this  Agreement,  Licensor  hereby  grants  Licensee an  exclusive,  world-wide,
royalty-bearing  license,  including  the right to  sublicense,  to the Licensed
Technology  for  all  uses  including  the  research,  development,  production,
marketing, use, importing,  exporting, sale, have sold and offer or have offered
for sale, of Licensed Products.

     2.2 Fully  Exclusive  License.  The license  granted under paragraph 2.1 is
exclusive  even  as  to  Licensor.  Licensor  may,  however,  use  the  Licensed
Technology solely for noncommercial academic and research purposes.

     2.3  Covenant  Not to Sue.  Licensor  agrees  that  during the Term of this
Agreement  it will not assert  against  Licensee  any patent that is or might be
infringed  by  Licensee  by reason of its  manufacture,  use or sale of Licensed
Products,  whether or not such patent has been  licensed to Licensee  hereunder.
Licensor  agrees  that  during  the Term of this  Agreement  it will not  assert
against Licensee any other intellectual property cause of action,  including but
not  limited  to a trade  secret  cause  of  action,  by  reason  of  Licensee's
manufacture, use, or sale of a Licensed Product.

     2.4 Sublicenses.  All sublicenses granted hereunder shall be in writing and
shall  include an  acknowledgment  by the  sublicensee  that the  sublicense  is
subject to all of the terms of this Agreement.

     2.5 Rights after Patent  Expiration.  After the  expiration  of the last to
expire of Patent in a  country,  Licensee  shall have a fully paid up license to
the Licensed  Technology in such country and may make,  have made,  use and sell
Licensed Products in such country without additional payments to Licensor.

     2.6 No License To Other Rights. Licensor does not grant, and Licensee shall
have no rights,  to any patents,  trade secrets or other  intellectual  property
owned or  controlled  by  Licensor  now or in the future,  except as  explicitly
granted herein.  Licensor shall retain the right to use the Licensed  Technology
in connection  with  non-commercial  research,  patient care,  and  educational,
academic, and administrative purposes.  Additionally,  nothing in this Agreement
shall be  construed  so as to  restrict  Licensor's  ability to conduct  further
research and development in the area of the Licensed Technology or other areas.

                                       2
<PAGE>

                                  ARTICLE III
                              PAYMENTS AND REPORTS

     3.1  Payment.  Within  ten (10)  days of  satisfaction  of the  "Conditions
Precedent" as defined below,  Licensee shall pay to Licensor an execution fee in
the    amount    of    ________________________________________    US    Dollars
(US$________________)  (the "Closing  Payment") via wire transfer of immediately
available funds to an account designated by the Licensor.

     "Conditions  Precedent"  means: (1) Licensee and Licensor have received all
required  third  party  consents  (if any) and PRC  governmental  approvals  and
permits  relating to the  transactions  contemplated by this Agreement;  and (2)
Licensor has delivered all the materials described in Exhibit B and Licensee has
translated such materials into English and confirmed such translation.

     3.2 Royalties

          (a) In  consideration  of the rights granted herein and subject to the
     other terms herein,  Licensee  shall pay Licensor a running  royalty on the
     sale         of         Licensed          Products         equal         to
     ___________________________________________________,   in  any  country  in
     which there  exists a Licensor  Patent,  from the date of First  Commercial
     Sale to the date of  expiration  of the last to expire  Licensor  Patent in
     such country.

          (b) Licensee  shall  deduct from all  royalties to be paid to Licensor
     all withholding  taxes lawfully imposed thereon,  which taxes shall be paid
     by Licensee for the account of Licensor;  provided that Licensee shall upon
     request  supply  Licensor  with  original or  certified  copies of official
     certificates stating that the taxes have been actually paid for the account
     of Licensor.

          (c) If (i)  Licensee  receives  notice  that the sale of the  Licensed
     Products  constitutes an  unauthorized  use or  infringement of a patent or
     other  intellectual  property right issued to or held by a third party, and
     (ii)  Licensee  is  required  to pay to such third  party a royalty for the
     right to make, use or sell the Licensed  Products as  contemplated  by this
     Agreement  after (A) notice to Licensor  and good faith  negotiations  with
     such third party, or (B) upon receipt of an order from a judicial authority
     with  competent  jurisdiction,  then Licensee may deduct the amount of such
     payments from the royalties payable to Licensor pursuant to this Agreement.

     3.3 Report and Payments of Royalties. Within 60 days following the close of
each calendar  quarters,  following the First  Commercial  Sale,  Licensee shall
furnish to Licensor a written  report for the calendar  quarter  showing the Net
Sales during such calendar quarter. Such report shall break down such amounts by
country. The report shall detail the calculation of the royalties owed hereunder
in connection  with the Net Sales of Licensed  Products  reported in the report.
Simultaneously with the submission of the report, Licensee shall pay to Licensor
the royalties owed for the calendar  quarter  pursuant to Section 3.2. Until the
First  Commercial  Sale,  within 60 days of the last day of the  calendar  year,
Licensee  shall  furnish to Licensor a written  annual report  describing  their
efforts and accomplishments in the development and commercialization of Licensed
Technology.

                                       3
<PAGE>

     3.4 Method of Payment.  All payments  due  hereunder  are  expressed in and
shall be  payable  to  Licensor  in US  Dollars  in cash via  wire  transfer  of
immediately available funds to an account designated by the Licensor.  For sales
of  Licensed  Products  in  currencies  other  than that of the  United  States,
Licensee  shall use exchange  rates  published in The Wall Street Journal on the
last business day of the Calendar Quarter in which the royalties were earned. If
for  reasons  of  currency,  tax,  or other  regulations,  transfer  of funds is
prohibited  in any country,  Licensee  may pay  royalties on Net Sales from such
country by  placing  them in a bank  account in that  country in the name of and
under the sole control of Licensor;  provided,  however,  that the bank selected
shall be  reasonably  acceptable  to Licensor  and that  Licensee  shall  inform
Licensor  of the  location,  account  number,  amount,  and  currency  of  money
deposited therein.

3.5  Audit38.  .  Licensor  shall have the  right,  at its sole  discretion  and
expense, to nominate an independent accountant acceptable to Licensee, who shall
upon  reasonable  notice  have  access to  Licensee's  records  relating  to the
Licensed Products,  during reasonable  business hours and without any disruption
of  Licensee's  business,  for the purpose of verifying  the royalty  payable as
provided for in this Agreement.  This audit right may not be exercised more than
once in any calendar year,  and the  accountant  shall only disclose to Licensor
information  relating  solely to the accuracy of the royalty  report  and/or the
royalty  payments  made  according  to this  Agreement.  If the  amount  paid to
Licensor   during   the   audited   period   shall   have  been   underpaid   by
____________________  or more  during an audited  year,  Licensee  shall pay the
costs of such audit.

          3.6 Expiration or Suspension of Royalty Payment.

          (a) Royalties shall be payable hereunder with respect to the Net Sales
     of Licensed  Products in a country until the earlier of (i) the date of the
     termination  of this  Agreement,  (ii) the expiration of the last to expire
     Licensor Patents in such country.

          (b) If the Licensor  Patent  filed in a country is denied  without any
     right to re-file,  or is held invalid or  unenforceable,  the obligation of
     Licensee to pay royalties or any other amount under this Agreement shall be
     suspended with respect to the sale of Licensed Products in such country.

                                   ARTICLE IV
                   REPRESENTATIONS AND WARRANTIES OF LICENSOR

          Licensor hereby represents and warrants to Licensee as follows:

     4.1 Organization,  Good Standing and Power. Licensor is an institution with
legal person status validly  existing and in good standing under the laws of the
People's  Republic  of China  with the power  and  authority  to own,  lease and
operate its assets and to conduct the activities now being or to be conducted by
it,  and to  perform  its  obligations  under the  Agreement.  Licensor  is duly
authorized,  qualified  or  licensed  to  conduct  its  activities  and  has all
requisite  power and  authority to enter into this  Agreement and to perform the
obligations contemplated hereunder.

     4.2  Authorization and Validity of Agreement.  The execution,  delivery and
performance by Licensor of this Agreement have been duly authorized and approved
by all  necessary  action and internal  approvals on the part of Licensor.  This
Agreement has been duly  executed and  delivered by Licensor,  and is the legal,
valid and binding  obligation of Licensor  enforceable  against it in accordance
with its terms, subject to applicable  bankruptcy,  insolvency,  reorganization,
moratorium  or other  similar  laws  relating to  creditors'  rights and general
principles of equity.

                                       4
<PAGE>

     4.3 No Conflict, Required Filings and Consents. The execution, delivery and
performance  of this  Agreement by Licensor will not violate,  conflict with, or
result in a violation  or breach of any  license,  lease,  or other  contract or
instrument to which Licensor is a party or by which or to which it or any of the
Licensed Technology may be bound or subject. Moreover, the Licensor's execution,
delivery and performance of this Agreement will not violate any order, judgment,
decree, law, rule, or regulation,  of any governmental  authority  applicable to
Licensor  or the  Licensed  Technology.  Other  than  the  registration  of this
Agreement with the Shanghai  Foreign  Investment  Commission,  no consent of any
governmental  authority is required by or with respect to Licensor in connection
with  the  execution  and  delivery  of  this   Agreement  by  Licensor  or  the
consummation of the transactions contemplated hereby or thereby.

     4.4  Absence  of  Litigation.  There is no claim,  action,  suit,  inquiry,
judicial, or administrative proceeding, grievance, or arbitration pending or, to
the knowledge of Licensor,  threatened  against  Licensor or any of the Licensed
Technology by or before any arbitrator or governmental authority,  nor are there
any  investigations  relating  to  Licensor  or any of the  Licensed  Technology
pending or, to the knowledge of Licensor, threatened by or before any arbitrator
or governmental  authority.  There is no judgment,  decree,  injunction,  order,
determination,  award,  finding,  or letter of  deficiency  of any  governmental
authority  or  arbitrator  outstanding  against  Licensor or any of the Licensed
Technology.  There is no action,  suit,  inquiry or judicial  or  administrative
proceeding pending or, to the knowledge of Licensor, threatened against Licensor
relating to the transactions contemplated by this Agreement.

     4.5  Certain  Agreements.  Exhibit B hereto  lists  each  contract  that is
material to the legal and beneficial  ownership and use the Licensed  Technology
to which  Licensor is a party or by which or to which  Licensor or the  Licensed
Technology is bound or subject.  Each such contract  described in Exhibit B is a
valid and binding obligation of Licensor and is in full force and effect without
amendment.  Licensor and, to the knowledge of Licensor, each other party to such
contracts, has performed in all material respects the obligations required to be
performed by it under such  contracts  and is not (with or without lapse of time
or the giving of notice, or both) in breach or default thereunder.  The Licensor
has not received (i) any notice,  written or otherwise,  of defaults by Licensor
under any contract listed in Exhibit B, or (ii) any notice written or otherwise,
that any other  party to any such  contract  has  terminated  or  cancelled,  or
intends to terminate or cancel, such contract. Licensor has received the consent
or approval of each Person that is a party to a Contract identified in Exhibit B
whose consent or approval shall be required in order to permit the  consummation
of the transactions contemplated hereby and such consent or approval shall be in
form and substance satisfactory to Licensee.

     4.6 Licensed Technology. Exhibit B includes a true and complete list of all
of the information in Licensor's possession relating to the Licensed Technology.
Licensor  exclusively  owns all rights to the  Licensed  Technology  pursuant to
valid, binding, and enforceable assignments. Licensor is not infringing any such
Licensed Technology,  and Licensor is not aware of any infringement by others of
any  of  the  Licensed  Technology  owned  by  Licensor.  4.7  No  Knowledge  of
Infringement48. . Licensor warrants that it has received no notice of any patent
owned by a third  party that would be  infringed  by reason of the  manufacture,
sale, use, or importation of any Product.

                                       5
<PAGE>

     4.8  Disclaimer  of Other  Warranties.  THE  LICENSED  TECHNOLOGY  IS BEING
LICENSED ON AN "AS IS" BASIS.  EXCEPT AS EXPRESSLY SET FORTH IN THIS  AGREEMENT,
LICENSOR DISCLAIMS ALL WARRANTIES,  WHETHER EXPRESS OR IMPLIED, WRITTEN OR ORAL,
STATUTORY  OR  OTHERWISE,  WITH  RESPECT  TO THIS  AGREEMENT  AND  THE  LICENSED
TECHNOLOGY,    INCLUDING,   WITHOUT   LIMITATION,   ANY   WARRANTY   OF   TITLE,
NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

                                   ARTICLE V
                       COVENANTS OF LICENSOR AND LICENSEE

     5.1 Licensor  Cooperation.  Licensor covenants and agrees that it shall use
all commercially reasonable efforts,  including making any required payments, to
file or  obtain  all  authorizations,  consents,  orders,  or  approvals  of, or
declarations  or filings with, or expirations of waiting periods imposed by, any
governmental  authority  necessary  for  the  consummation  of the  transactions
contemplated by this Agreement.

     5.2  Licensee  Marketing  and Sales  Activities.  Upon  issuance  of the US
Licensor Patent,  Licensee shall thereafter use commercially  reasonable efforts
to develop,  obtain  approval for,  promote,  market,  distribute,  and sell the
Licensed  Products in the United  States.  If, after issuance of the US Licensor
Patent, Licensee fails to use commercially reasonable efforts to develop, obtain
approval for, promote, market and sell a Licensed Products in the United States,
such  failure  shall,  upon  written  notice by the  Licensor  to the  Licensee,
constitute  an "Event of Default"  under  Section 7.2 and  Licensor may elect to
terminate  Licensee's  license  granted  hereunder  with  respect  to the United
States,  subject  to the  Licensee's  right to cure  such  Event of  Default  as
provided in Section 7.2.

     5.3 Data Sharing.  If this Agreement  terminates  for any reason,  Licensee
will,  upon request,  provide to Licensor a copy of all data used to support any
of the  filings  or  communications  with any  regulatory  authority  including,
without  limitation,  all data in any  master  file with the U.S.  Food and Drug
Administration.  Licensor  may use any  such  data in  filing,  prosecuting  and
maintaining  any  regulatory  license,  approval  or permit.  Such data shall be
treated by  Licensor as  "Confidential  Information"  pursuant  to Section  5.8.
Licensee shall continue to own such data and may use it for any purpose.

     5.4 Patent Prosecution

          (a) Patent  Prosecution.  Licensee shall use  commercially  reasonable
     efforts to file,  prosecute  and maintain,  at its sole  expense,  a patent
     application  claiming the T-Cell  Vaccine with the United States Patent and
     Trademark   Office  (the  "US  Licensor   Patent").   Licensee   shall  use
     commercially  reasonable  efforts to file such application  within one year
     following the date of this  Agreement.  Additionally,  Licensee  shall also
     have the right,  but not the  obligation,  to file,  prosecute and maintain
     patent  applications  covering the T-Cell Vaccine in other jurisdictions as
     it deems necessary or appropriate, including but not limited to the PRC.

                                       6
<PAGE>

          (b) Option of Licensor to  Prosecute  and Maintain  Patents.  Licensee
     shall give  Licensor 90 days' prior  notice of  Licensee's  intent to cease
     prosecution  and/or  maintenance of any Licensor  Patent,  without filing a
     substitute patent application.  Licensee shall then permit Licensor, at its
     sole discretion, to continue prosecution or maintenance at its own expense.
     If Licensor pursues prosecution or maintenance, Licensee shall execute such
     documents  and  perform  such  acts,  at  Licensor's  expense,  as  may  be
     reasonably  necessary  to permit  Licensor to conduct such  prosecution  or
     maintenance.

     5.5  Intellectual  Property  Protection - Infringement.  During the term of
this  Agreement,  each Party shall  promptly  inform the other of any  suspected
infringement,  misappropriation  or theft of the Licensed  Technology by a third
party. Any action or proceeding  against such third party shall be instituted as
following:

          (a)  Licensee  shall have the first right to  institute  an action for
     infringement,  misappropriation or theft of the Licensed Technology against
     such third party. Licensee shall pay all its expenses,  including costs and
     legal fees  incurred in  bringing  and  prosecuting  such  infringement  or
     misappropriation  action. Licensor will cooperate with Licensee in any suit
     brought by Licensee  against such third party,  and shall have the right to
     consult  with  Licensee  and  to  participate  in  and  be  represented  by
     independent counsel in such litigation at Licensor's own expense.  Licensee
     shall incur no liability to Licensor as a consequence of such litigation or
     any  unfavorable  decision  resulting  therefrom,  including  any  decision
     holding any issued Licensor Patent invalid, unenforceable or not infringed.

          (b) If Licensee  has not within a  reasonable  time (not to exceed 120
     days from the date on which it is notified or otherwise becomes aware of an
     infringement or  misappropriation)  either  terminated such infringement or
     initiated legal action against the infringer or defendant,  it shall,  upon
     written  request of  Licensor,  grant to Licensor the right to prosecute an
     action  against the  infringer  or  defendant.  Licensor  shall pay all its
     expenses,   including  costs  and  legal  fees  incurred  in  bringing  and
     prosecuting such  infringement or  misappropriation  action.  Licensee will
     cooperate with Licensor in any suit for  infringement  or  misappropriation
     brought by Licensor. Licensee shall have the right to consult with Licensor
     and to participate  in and be  represented  by independent  counsel in such
     litigation  at its  own  expense.  Licensor  shall  periodically  reimburse
     Licensee for its out-of-pocket  costs (excluding  independent counsel fees)
     incurred in  cooperating  with Licensor.  If Licensor  desires to settle or
     compromise such suit or action in a manner that adversely  impacts Licensee
     or the Licensed Technology, Licensor shall not so settle or compromise such
     suit or action  without  the  written  consent  of  Licensee,  which may be
     withheld in its sole discretion.

          (c) Should  either Party  commence  suit under the  provisions of this
     Section 5.5 and thereafter elect to abandon the same, such Party shall give
     timely  notice  to the  other  Party who may,  if it so  desires,  continue
     prosecution of such action.

          (d) In any action pursuant to this Section, all recoveries, whether by
     judgment, award, decree or settlement, from infringement, misappropriation,
     or theft of Licensed Technology shall be apportioned as follows:  (ii) each
     Party  shall  first  recover  an  amount  that  is  equal  to or in  direct
     proportion to the total costs and expenses  incurred by such Party directly
     related to the  prosecution  of such action or  proceeding,  (b) each Party
     shall  then  recover  an amount  equal to or in direct  proportion  to each
     Party's lost  profits,  and (iii) the  remainder  shall then be paid to the
     Party prosecuting the action.

                                        7
<PAGE>

     5.6 Third Party Infringement Suit. If a third party sues Licensee or any of
its Affiliates alleging that Licensee's,  its Affiliates' or their sublicensees'
using, distributing, marketing, promoting, offering for sale or selling Licensed
Technology  infringes or will infringe the third party's  patent,  then Licensee
may, in its sole discretion,  elect to defend such suit. Upon Licensee's request
and in connection with Licensee's  defense of any such third party  infringement
suit, Licensor shall provide reasonable  assistance to Licensee for such defense
at Licensee's sole cost.

     5.7 Licensor-Based Clinical Studies; Right of First Refusal.

          (a) When Licensee  determines  to conduct the clinical  trials for the
     first Licensed  Product it will notify Licensor of Licensee's  intent to do
     so. If  Licensor  provides  evidence,  acceptable  to  Licensee in its sole
     discretion, that Licensor is capable of conducting the contemplated trials,
     including compliance with protocol requirements,  "good clinical practices"
     and all other US Food and Drug Agency  regulations,  Licensee  will discuss
     with  Licensor  the  possible  engagement  of Licensor to act as one of the
     sites for such  trials  prior to engaging  any other  entity to conduct the
     trials.  Any such engagement of Licensor to conduct trials shall be subject
     to a separate written  agreement and shall be on mutually agreed upon terms
     that  are  customary  and  reasonable  and in  accordance  with  Licensee's
     standard terms relating to clinical research by such an organization.

          (b) After  Licensee has received any necessary  approvals to make, use
     and sell a  Licensed  Product in the  Peoples  Republic  of China  ("PRC"),
     Licensee will negotiate in good faith the terms of a non-exclusive  license
     for Licensee to make,  use and sell the Licensed  Products in the PRC. Such
     license  shall be on  reasonable  commercial  terms and  include  customary
     provisions.

     5.8 Confidentiality Treatment of Confidential Information. -

          (a) Confidentiality  Obligation.  Each Party shall hold in confidence,
     and  shall  not  disclose  to any  Person  outside  its  organization,  all
     Confidential  Information  provided to it by the other Party. A Party shall
     use such  Confidential  Information  only for the  purpose for which it was
     disclosed.  Each Party shall disclose Confidential  Information provided by
     the other Party only to Persons  within its  organization  and its advisors
     who have a need to know such Confidential  Information in the course of the
     performance   of  their   duties   and  who  are  bound  to   protect   the
     confidentiality of such Confidential Information.

          (b) Term of Confidential  Information.  The obligations of the Parties
     with regard to Confidential Information shall continue until five (5) years
     after the termination or expiration of this Agreement.

          (c) Return of  Confidential  Information.  The receiving  Party shall,
     upon  request of the  disclosing  Party,  return all  drawings,  documents,
     biological  samples  and  other  tangible  manifestations  of  Confidential
     Information  received  pursuant  to this  Agreement  (and  all  copies  and
     reproductions  thereof);  provided,  however, a Party may keep one copy for
     record  keeping  purposes  only.  If a Party is  requested  pursuant to, or
     required by, applicable law, regulation or legal process to disclose any of
     the other  Party's  Confidential  Information,  it will  notify  such Party
     promptly  (unless  prohibited  by law)  so  that  such  Party  may  seek an
     appropriate protective order or other appropriate remedy.

                                       8
<PAGE>

          (d) Irreparable Harm. Any violation of this confidentiality obligation
     by one party would cause the other party  irreparable  harm. In addition to
     any other right or remedy it may have,  at law or in equity,  any party may
     seek  an  injunction  against   threatened  or  continuing   disclosure  of
     Confidential Information without the posting of any bond or other security.

          (e) SEC Filing Obligations.  Licensor  acknowledges that Licensee is a
     reporting  company  under U.S.  securities  laws and is  obligated  to file
     public  reports  thereunder;  such  reports  will  include  a copy  of this
     Agreement and may include  amounts paid to Licensor.  Licensee will request
     confidential  treatment from U.S.  authorities  for that  information  that
     Licensee believes may be granted such treatment.

     5.9 Assistance With Translation.  Licensee will arrange for the translation
of the materials in Exhibit B at Licensee's  expense.  However,  Licensor  shall
make its employees  available to answer  questions  regarding the translation of
the  materials  in  Exhibit  B and to  otherwise  provide  assistance  with such
translations.

     5.10 Cooperation  During Dispute.  While any controversy,  dispute or claim
arising out of or relating to this Agreement is pending,  the Parties shall,  to
the extent legally permissible,  continue to perform their obligations hereunder
to the extent possible notwithstanding such controversy, dispute or claim.

     5.11  Product  Development.   All  business  decisions  including,  without
limitation, the design,  manufacture,  sale, price and promotion of the Licensed
Product and the  decision  whether to launch,  or to continue to sell a Licensed
Product  shall be  within  the sole  discretion  of  Licensee.  Nothing  in this
Agreement shall restrict Licensee from developing,  making, marketing or selling
any other product.

                                   ARTICLE VI
                                  PUBLICATION

     Licensor  agrees that  Licensee may issue a press  release upon the signing
and  closing  of this  Agreement  summarizing  the  transaction,  provided  that
Licensee shall obtain prior written  approval of the Licensor for any subsequent
use of the  Licensor's  name in any press or public  exposure  other than public
filings required by law or regulation. Both Parties recognize that each may wish
to  publish  the  results  of their work  relating  to the T-Cell  Vaccine in an
appropriate  peer review  journal.  However,  both  Parties also  recognize  the
importance of acquiring  patent  protection  with respect to the T-Cell  Vaccine
prior to  publication.  Consequently,  Licensor shall not publish or present the
results  of any of its work with  respect  to the  T-Cell  Vaccine or of related
development  studies  without  first  providing  Licensee  with a copy  of  such
publication at least 90 days prior to  "Publication."  "Publication"  shall mean
any form of publication including,  but not limited to, publication in journals,
submission  of  articles  to  journals  for   consideration   for   publication,
publication  electronically,  talks and  posters.  Licensee may then prepare and
file a patent  application for any material in such publication.  Licensor shall
cooperate  with  making any such  filing,  and  Licensor  shall  delete from any
proposed publication any of Licensee's Confidential Information.

                                        9

<PAGE>

                                  ARTICLE VII
                              TERM AND TERMINATION

     7.1 Term.  The term ("Term") of the licenses  granted herein shall commence
on the date of this Agreement and, unless terminated earlier as provided herein,
expire on a  country-by-country  basis on the  expiration  of the last to expire
Licensor Patent issued in the country.

     7.2  Termination  for Default.  This  Agreement may be terminated by either
Party upon an Event of Default by the other Party as follows:

          (a) Upon an Event of Default,  the non-defaulting Party shall have the
     right,  exercisable  at its sole  discretion,  and in addition to any other
     rights or remedies  available to it at law or in equity,  to terminate this
     Agreement  upon 45 days' prior notice to the  defaulting  Party.  "Event of
     Default" shall mean, in respect of either Party, a material  breach of this
     Agreement  by such Party and its failure to remedy  such  breach  within 30
     days  after  written  notice  thereof  by the  non-breaching  Party  or, if
     remediation  of such  breach  in such  period  is not  practicable,  if the
     breaching Party fails to commence and diligently pursue  remediation during
     such 30-day period.

          (b) If  Licensee  fails to make  any  payment  required  to be made to
     Licensor  under this  Agreement  within 30 days following the date any such
     payment is due,  Licensor shall have the right,  upon 30 days' prior notice
     to Licensee,  to terminate the  exclusivity of the license  granted by this
     Agreement  and  thereafter  the license  hereunder  shall be deemed to be a
     non-exclusive license; provided,  however, that Licensor shall not have the
     aforementioned right if Licensee is disputing the applicable  payment(s) in
     good faith and by appropriate proceedings.

          (c)  Notwithstanding  anything in the  foregoing to the  contrary,  no
     Party that is in  material  breach of this  Agreement  shall be entitled to
     terminate this Agreement except with the consent of the other Party.

     7.3  Termination by Mutual  Agreement.  This Agreement may be terminated at
any time by mutual written agreement of the Parties.

     7.4  Termination by Licensee.  At any time and from time to time,  Licensee
may terminate this  Agreement,  in its sole  discretion and without cause,  with
respect to one or more or all  countries  upon thirty  (30) days' prior  written
notice to Licensor.

     7.5 Effect of Termination.  The expiration or termination of this Agreement
shall  not  relieve  the  Parties  of any  obligation  accruing  prior  to  such
expiration or termination. If Licensor and/or Licensee terminates this Agreement
as provided in this Article VII,  neither  Licensee nor Licensor  shall have any
liability  except  for  liability  arising  out of a breach  of this  Agreement.
Section 5.7, Article VIII,  Article IX, Article XI, Article XII and this Article
VIII shall survive the termination of this Agreement.

                                       10
<PAGE>

                                  ARTICLE VIII
                                 INDEMNIFICATION

     8.1  Indemnification.  (a)  Licensor  shall  indemnify  and  hold  harmless
Licensee,  its  Affiliates and each of their  officers,  directors and employees
from and against any Claim arising from any breach or default by Licensor of any
representation,  warranty or covenant  under this  Agreement or any agreement or
document executed in connection herewith; or

          (b) Licensee  shall  indemnify and hold  Licensor,  its Affiliates and
     each of their officers,  directors and employees  harmless from and against
     any Claim arising from the development,  testing,  marketing,  manufacture,
     operation, commercialization,  sale or other disposition or use of Licensed
     Products by Licensee, its contractors, sublicensees, and customers.

     8.2  Third   Party   Claims.   Any  Person   seeking   intending   to  seek
indemnification  hereunder shall give prompt written notice to the  indemnifying
Party of the  commencement or assertion of any action,  proceeding,  demand,  or
claim by a third  party  (collectively,  a "Third  Party  Action") in respect of
which the notifying Party intends to seek indemnification for a Claim hereunder.
Any failure to give such notice  shall not  relieve  the  indemnifying  from any
liability that such Party may have under this Article VIII unless the failure to
give such notice materially and adversely prejudices the indemnifying Party. The
indemnifying  Party  shall  be  entitled,  at its own  expense  and in its  sole
discretion,  to either assume or  participate in the defense of such Third Party
Action. If the indemnifying  party assumes the defense,  the indemnified  Person
shall be entitled to participate with its own counsel at its own expense. If the
indemnifying Party assumes the defense,  the indemnifying Party shall obtain the
prior written approval of the indemnified  Person before entering into or making
any settlement, compromise, admission, or acknowledgment of the validity of such
Third Party Action or any liability in respect thereof.  The indemnified  Person
shall  not  unreasonably  withhold  or  delay  such  approval.   Moreover,   the
indemnifying  Party shall not consent to the entry of any judgment or enter into
any settlement that does not include as an unconditional term thereof the giving
by each  claimant  or  plaintiff  a release of the  indemnified  Person from all
liability in respect of such Third Party Action. The parties hereto shall extend
reasonable  cooperation in connection with the defense of any Third Party Action
pursuant to this Article VIII and, in connection  therewith,  shall furnish such
records,  information,  and  testimony  and attend such  conferences,  discovery
proceedings, hearings, trials, and appeals as may be reasonably requested.

                                   ARTICLE IX
                            LIMITATIONS OF LIABILITY

     9.1  Limitation of Liability.  NO PARTY (OR ITS  REPRESENTATIVES)  SHALL BE
LIABLE TO ANY OTHER PARTY FOR ANY INDIRECT, SPECIAL,  CONSEQUENTIAL, OR PUNITIVE
DAMAGES  OF ANY  KIND FOR ANY  CAUSE OF  ACTION  OR  CLAIM  ARISING  OUT OF THIS
AGREEMENT, WHETHER IN NEGLIGENCE, STRICT LIABILITY, CONTRACT, TORT, OR ANY OTHER
LEGAL THEORY OR CAUSE OF ACTION.  SUCH  EXCLUDED  DAMAGES  INCLUDE,  BUT ARE NOT
LIMITED   TO,  LOST   PROFITS,   EVEN  IF  THE  PARTY  TO  BE  CHARGED  (OR  ITS
REPRESENTATIVES) HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

     9.2 Insurance.  At any time Licensee is conducting clinical trials it shall
obtain  and  maintain  clinical  trial  liability  insurance  in the  amount  of
$__________________  naming  Licensor  as  an  "additional  insured."  Prior  to
commencing sales of a Licensed Product in the United States or Europe,  Licensee
shall obtain,  and maintain  throughout the Term,  product liability  insurance,
naming Licensor as an "additional insured," for the Licensed Products in amounts
reasonably  consistent with industry  practices for similar sized companies with
similar products and similar sales levels.  Upon Licensor's  request at any time
during the Term,  Licensee  shall deliver to Licensor a certificate of insurance
evidencing such insurance.

                                       11
<PAGE>

                                   ARTICLE X
                             DISPUTE RESOLUTION

     10.1 Dispute Resolution. Any Dispute shall, upon the written request of any
Party, be settled through friendly  consultation among the Parties. In the event
that a Dispute is not resolved through  consultation  within thirty (30) days of
the receipt of the request,  at the request of any Party,  such Dispute shall be
finally  settled by  arbitration  in  Singapore  before a tribunal  of three (3)
arbitrators  in  accordance  with the rules  ("Rules") of the ICC  International
Court  of  Arbitration  then  in  effect.  Each  Party  shall  nominate  one (1)
arbitrator   within  the  time  period   specified  in  the  rules  of  the  ICC
International  Court  of  Arbitration.  The  two  arbitrators  nominated  by the
claimant and the  respondent  shall  together  nominate the third and  presiding
arbitrator of the  Tribunal,  who shall be of a different  nationality  than the
Parties.  The arbitration shall be conducted in, and the award shall be rendered
in, the English  language,  and documents and evidence shall be submitted by the
Parties in their original language, subject to the Tribunal's authority to order
appropriate  translations.  The award  shall be final and binding on the Parties
and may be  confirmed  in, and  judgment  upon the award  entered  by, any court
having  jurisdiction  over  the  Parties.  This  Agreement  and the  rights  and
obligations  of the Parties  shall be fully  performed  pending the award in any
arbitration proceeding hereunder.

     10.2  Waiver  of  Sovereign  Immunity.  Each  of  the  Parties  irrevocably
represents,  warrants and agrees that this Agreement is a commercial rather than
a public or governmental  activity and that it is not entitled to claim immunity
from  legal  proceedings  with  respect  to itself  or any of its  assets on the
grounds of sovereignty or otherwise under any law or in any  jurisdiction  where
an action may be brought for the enforcement of any of the  obligations  arising
under or  relating to this  Agreement.  To the extent that any of the Parties or
any of their  assets has or  hereafter  may acquire  any right to immunity  from
set-off,  legal proceedings,  attachment prior to judgment,  other attachment or
execution of judgment on the grounds of  sovereignty  or  otherwise,  such Party
hereby  irrevocably waives such rights to immunity in respect of its obligations
arising under or relating to this Agreement.

                                   ARTICLE XI
                                 MISCELLANEOUS

     11.1 Governing Law; Venue.  This Agreement,  its validity,  interpretation,
execution and the rights and  obligations of the Parties,  and the settlement of
any disputes,  hereunder  shall be governed by and construed in accordance  with
the laws of the State of Texas (excluding its conflict of laws rules which would
refer to and apply the substantive  laws of another  jurisdiction).  The Parties
further agree that,  in connection  with the  consummation  of the  transactions
contemplated under this Agreement,  they will comply with all applicable laws of
the People's Republic of China.

     11.2  Notices.  Any  notice,  consent or  approval  to be given  under this
Agreement  shall  be in  writing  and  shall be  deemed  to have  been  given if
delivered at the address set forth below, (i) personally by a reputable  courier
service that requires a signature  upon  delivery;  (ii) by mailing the same via
registered  or  certified  first class mail,  postage  prepaid,  return  receipt
requested;  (iii) by faxing  the same with  telephonic  confirmation  of receipt
(followed by a first class  mailing of the same) to the intended  recipient;  or
(iv) by E-mailing the same with electronic  confirmation of receipt (followed by
first class mailing of the same):

                                       12
<PAGE>

If to Licensor, as follows:                   If to Licensee, as follows:

              Attn:  Director                  Attn:  Chief Operating Officer
              No.  225 South  Chongqing  Road, PharmaFrontiers Corp.
              Rm. 204 Building 1               2635 N Crescent Ridge Drive
              Shanghai, China 200025           The Woodlands TX 77381

                                               with a copy  (which  shall
                                               not  constitute notice) to:

                                                 Vinson & Elkins L.L.P.
                                                 No. 149 Yanqing Road
                                                 Shanghai, China 200031
                                                 Facsimile:   (86-21) 6474-8099

     11.3  Severability.  Whenever  possible,  each  provision of this Agreement
shall  be  interpreted  in  such  manner  as to be  effective  and  valid  under
applicable  law;  but if any  provision  of this  Agreement  or the  application
thereof  to  any  Party  or  circumstance  is  prohibited  by or  invalid  under
applicable  law, that  provision  shall be effective  only to the extent of such
prohibition or invalidity,  without invalidating the remainder of such provision
or the  remaining  provisions  of  this  Agreement  or the  application  of such
provision to other parties or circumstances.

     11.4  Non-Waiver.  No delay or omission of any Party to exercise  rights or
powers  under this  Agreement  shall  impair any such right or power or shall be
construed to be a waiver of any default or  acquiescence  therein.  No waiver of
any  default  shall be  construed,  taken,  or held to be a waiver  of any other
default,  or waiver,  acquiescence  in, or consent to any further or  succeeding
default of the same nature.

     11.5  Successors.  Except as  expressly  provided in this  Agreement,  this
Agreement and all of the terms and  provisions  hereof shall be binding upon and
shall inure to the benefit of each of the Parties and their permitted successors
and permitted assigns.

     11.6 Entire  Agreement.  This Agreement  contains the entire  understanding
between the Parties and supersedes any prior  understandings and written or oral
agreements   between  them  respecting   this  subject  matter.   There  are  no
representations,  agreements,  arrangements, or understandings, oral or written,
between the Parties  relating to the subject  matter of this  Agreement that are
not fully expressed in this Agreement.

     11.7 Amendments.  This Agreement shall not be amended, modified, or altered
except through a written consent signed by the Parties. The Agreement may not be
amended, modified, or altered through electronic means.

     11.8 Trademark.  Licensee shall be free to select the trademarks to be used
in  connection  with  the sale  and  marketing  of  Licensed  Product,  and such
trademarks  and all  associated  goodwill  shall  remain  the sole  property  of
Licensee.

                                       13
<PAGE>

     11.9  Counterparts.  This  Agreement  may be  executed  by the  Parties  in
separate counterparts,  each of which when so executed and delivered shall be an
original,  but all such counterparts  shall together  constitute but one and the
same Agreement. All signatures need not be on the same counterpart.

     11.10 Assignment.  Licensee shall not assign, transfer or otherwise dispose
of this  Agreement  or its  rights  and  obligations  hereunder  unless  (a) the
proposed  assignee or  transferee  agrees in writing to be bound by the terms of
this Agreement and to perform all obligations of Licensee  hereunder  including,
but not limited to, the payment of royalties to Licensor  under  Section3.2;  or
(b) Licensee  receives the express  written  consent of Licensor.  Any attempted
assignment,  transfer or disposal  contrary to this Section  shall be a material
breach of this  Agreement  by Licensee  and shall be void and without  force and
effect.

     11.11 Further  Assurances.  From time to time, each Party to this Agreement
agrees to execute and deliver such additional  documents,  and will provide such
additional information and assistance, as the other Party thereto may reasonably
require to effect the terms of such agreement or instrument.

     11.12 Headings. The titles of Articles, Sections, subsections or clauses of
such  agreement or  instrument  are for  convenience  only and not as an aid for
construction  and shall not be  interpreted  to limit or  otherwise  affect  the
provisions of such agreement or instrument.

     11.13 Survival of Representations,  Warranties,  and Covenants. Each of the
representations   and  warranties  made  hereunder  or  pursuant  hereto  or  in
connection with the transactions  contemplated  hereby shall survive the Closing
for a period of twenty-four (24) months,  except that this time limitation shall
not apply to any claims for  fraudulent  acts or omissions,  which shall survive
until the expiration of the  applicable  statute of  limitations.  Following the
date of termination  of a  representation  or warranty,  no claim can be brought
with  respect  to  a  breach  of  such  representation  or  warranty,  but  such
termination  shall not  affect  any claim  for a breach of a  representation  or
warranty that was asserted  before the date of  termination.  To the extent that
such are  performable  after the Closing,  each of the covenants and  agreements
contained in this Agreement  shall survive the Closing  indefinitely;  provided,
however,  effective as of the Closing,  Licensor  shall be deemed to have waived
any and all rights and remedies as to any breach by Licensee of any covenant and
agreement of Licensee occurring prior to the Closing.

     11.14 Export Controls.  The parties acknowledge that Licensor is subject to
certain  PRC laws and  regulations  regarding  the  export  of  technical  data,
software,  laboratory  prototypes  and other  commodities,  and that the Parties
obligations   hereunder  are  contingent  on  compliance   with  such  laws  and
regulations.  The transfer of certain technical data and commodities may require
receipt of approval  from the relevant PRC  governmental  authorities.  Licensor
makes no  representation  as to  whether  such a  license  is  required  or,  if
required, whether such license shall be issued.

                            [Signature page follows]

                                       14
<PAGE>

109.  IN  WITNESS   WHEREOF,   the  Parties   have  by  their  duly   authorized
representatives  executed and  delivered  this  Agreement as of the day and year
first written above.

LICENSOR:                                    LICENSEE:

SHANGHAI INSTITUTES FOR BIOLOGICAL SCIENCES, PHARMAFRONTIERS CORP.
CHINESE ACADEMY OF SCIENCES

By:               /s/ Guotong Xu       By:         /s/ David B. McWilliams
-----------------------------------    -----------------------------------
Print Name:       Guotong Xu           Print Name: David B. McWilliams
Title:            Deputy Director      Title:      President

                                       15
<PAGE>

                                   EXHIBIT A
                                  DEFINITIONS

"Affiliate"  of any  Person  means  any  other  Person  directly  or  indirectly
controlling,  directly or indirectly  controlled by, or under direct or indirect
common  control  with  such  Person.  As  used  in this  definition,  the  terms
"control," "controlling," or "controlled by" shall mean the possession, directly
or  indirectly,  of the power either to (i) vote fifty  percent (50%) or more of
the  securities or interests  having  ordinary  voting power for the election of
directors (or other comparable  controlling  body) of such Person or (ii) direct
or cause the direction of the actions,  management,  or policies of such Person,
whether through the ownership of voting securities or interests,  by contract or
otherwise, excluding in each case, any lender of such Person or any Affiliate of
such lender.

"Business Day" means any day other than a Saturday, Sunday or a holiday on which
banks in the People's Republic of China are required or authorized to be closed.

"Claims"  means any damages,  losses,  claims,  liabilities,  demands,  charges,
suits, penalties, costs, and expenses (including reasonable legal fees) actually
incurred by a Party.

"Confidential Information" means information of a technical, commercial or other
proprietary nature (including, but not limited to specifications), including the
terms of this  Agreement  and all reports made by Licensee  hereunder,  that has
been   provided  to  one  Party  by  the  other  Party  in  writing  and  marked
Confidential,  or if provided orally, reduced to writing and marked Confidential
and  provided  to the other  party  within  thirty  (30) days of its first oral;
provided "Confidential Information" shall not include information that:

     (a) is or hereafter becomes generally available to the public other than by
reason of any default with respect to confidentiality under this Agreement;

     (b) is  hereafter  disclosed  to a  Party  by a third  party  who is not in
default  of  any  confidentiality  obligation  to  the  other  Party  (and  such
disclosure can be properly demonstrated by the receiving Party);

     (c)  was  previously  or is  hereafter  developed  by or on  behalf  of the
publishing party,  without reliance on Confidential  Information provided by the
other Party (and such can be properly demonstrated by the receiving Party); or

     (d) is required to be  disclosed  in  compliance  with  applicable  laws or
regulations, including U.S. securities regulations, or order by a court or other
governmental  or  regulatory  agency  or  body  having  competent  jurisdiction,
provided  that  reasonable  measures  shall  be  taken  to  assure  confidential
treatment of such information to the extent reasonably possible.

     "Licensed Product" means any product, the manufacture, use, importation, or
sale of which would, if not licensed, infringe a Valid or Pending Claim.

     "Event of Default" has the meaning given that term in Section 7.2. 124.

     "First  Commercial  Sale" means the first sale of a Licensed Product in any
country  after  receipt  of all  governmental  approvals  required  for  regular
commercial sales, by Licensee or any sublicense to an unaffiliated  third party.
Transfers  of Licensed  Products  solely for use in research or clinical  trials
shall not constitute a "First Commercial Sale."

                                   Exhibit A-1
<PAGE>

"Licensed Technology" means:

         1.       The T-Cell  Vaccine  and all  related  know-how  developed  by
                  Licensor,   whether   or  not   patentable,   related  to  the
                  manufacture  and use of the T-Cell  Vaccine  and all  Licensor
                  Improvements;

         2.       All information and data of Licensor  relating to all clinical
                  trials on all patient  controls and patients  with  rheumatoid
                  arthritis  with the T-cell  Vaccine,  including  all clinical,
                  cell procurement and manufacturing protocols, complete patient
                  data sheets, all laboratory materials, methods and results and
                  manufacturing records/documents to include clinical lot and/or
                  batch records and any other data or information related to the
                  conduct or outcome of the clinical study; and

         3.       All  trademarks,  service  marks,  trade  names,  trade dress,
                  labels, logos, names, slogans,  plans, ideas, concepts,  data,
                  research  and  production  records,   promotional  literature,
                  customer   and   supplier   lists,    copyrights,    copyright
                  registrations  and  applications  for  registration,  patents,
                  inventions  (whether patentable or not), trade secrets and all
                  other intellectual  property and proprietary  rights,  whether
                  registered or not,  licensed to or owned by Licensor  relating
                  to the T-Cell Vaccine and the goodwill related thereto.

"Licensor Improvements" means all enhancements,  developments,  or modifications
that improve the means of manufacture, use, delivery, efficacy or performance of
the T-Cell  Vaccine  discovered or invented by the employees or  consultants  of
Licensor during the Term.

"Licensor Patents" shall mean those patents that are issued, by any country,  to
Licensor  relating to the Licensed  Technology and all  applications  therefore,
continuations,  continuations-in-part,  divisions, re-examinations, and reissues
thereof, and any corresponding foreign patents.

"Licensed Product" means any product, the manufacture, use, importation, or sale
of which would, if not licensed, infringe a Valid or Pending Claim.

"Net Sales"  means all revenue  and the fair market  value of all  consideration
other  than  revenue  received  by  Licensee  from  the  sale,  lease,  license,
distribution or other transfer of Licensed  Products to any unaffiliated  person
or entity  (including  governmental  entities) less the following  amounts:  (a)
normal and customary  discounts,  including cash discounts,  or rebates actually
allowed or granted,  (b) credits or  allowances  actually  granted upon returns,
regardless of the party requesting the return, (c) freight charges actually paid
for  delivery by  Licensee,  and (d) sales taxes or other  governmental  charges
levied on or measured by the invoiced  amount paid by Bayer,  and (e) packaging,
freight and  insurance  paid in respect of sales.  The term "Net Sales" does not
include  transfers  between  Licensee  Affiliates,  even if Licensee's  internal
accounting practices provide for a transfer price or chargeback provision.

If a  Licensed  Product  is sold or  distributed  in the  form of a  combination
product containing one or more other products,  other than the Licensed Product,
Net Sales for such Licensed Product will be calculated by multiplying actual Net
Sales  of such  combination  products  by the  fraction  A/(A+B)  where A is the
invoice  price of the  Licensed  Product if packaged and sold  separately  in an
arms-length transaction, and B is the total invoice price of any other component
or  components  in the  combination,  if  packaged  and  sold  separately  in an
arms-length transaction by Licensee.

                                   EXHIBIT A-2
<PAGE>

"Person"  means  any  individual,   corporation,   partnership,  joint  venture,
association,   joint  stock   company,   trust,   limited   liability   company,
unincorporated  organization,  governmental  authority,  or any  other  form  of
entity.

"T-Cell  Vaccine"  means the  pharmaceutical  compound  developed  by  Licensor,
whether or not patentable,  consisting of autoreactive  T-cells derived from any
source, including but not limited to, the synovial fluid or peripheral blood and
prepared as attenuated  T-cells for  therapeutic use as a vaccine in humans with
rheumatoid arthritis to induce a regulatory immune response.

"Third  Party  Action"  has the  meaning  given that term in Section 8.2 of this
Agreement.

"Valid or Pending Claim" means a claim of a pending Licensor Patent  application
or of an unexpired issued Licensed Patent that has not been withdrawn, canceled,
or disclaimed nor held invalid or unenforceable by a court or government  agency
of competent  jurisdiction in an unappealed or unappealable  decision. The scope
of a Valid or Pending  Claim shall be limited on a  country-by-country  basis to
its  terms  and as may be  defined  by any  such  court or  appropriate  body of
competent jurisdiction

"United States" means the United States of America.

"US Licensor  Patents" has the meaning given that term in Section 5.4(a) of this
Agreement.

                                  EXHIBIT A-3
<PAGE>

                                    EXHIBIT B

              Scientific and Clinical Information To Be Delivered*

     1.   Identification of parties
          a.   Sponsor
          b.   Contractor
     2.   Key Personnel and Contacts
          a.   Sponsor
          b.   Contractor
     3.   Quality Agreement
     4.   Product  being  manufactured  (Drug  substance  and drug  product)  or
          Techniques being transferred
     5  . Process Description
          a.   Overview
          b.   Process Flow Diagrams
          c.   Space Needs
          d.   Equipment Needs
                 i. specialized features noted
                ii. special settings, etc
               iii. calibration/validation needs
          e.   Materials
                 i. Reagents (Vendor & Order #s)
                ii. Supplies (Vendor & Order #s)
     6.   Procedures (Written)
          a.   General Techniques
          b.   Specific Assay Procedures
                 i. Flow cytometry
                ii. ICH staining
               iii. All specialized techniques
     7.   Lab Notebooks
          a.   Certified copy of notebooks to support patent
          b.   Proof of data audit/review
          c.   Supportive   reports  of  work
          d.   Any supplemental publications, poster presentations, talks
     8.   CVs of All Staff Involved
     9.   List of all T-Cell  Vaccine  Clinical  Trials to include Start date
          and end  date
    10.   T-Cell Vaccine Clinical Trial Protocols

*    All documents  and  information  shall be provided in English  except those
     documents  listed  under  Nos.  3 and 7may be  delivered  in Chinese if not
     available in English.

                                   EXHIBIT B

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