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                                                                   EXHIBIT 10.1
                                    AGREEMENT

         THIS AGREEMENT made and entered into as of the 1st day of May, 2002 by
and between EnviroGene LLC, a company organized and existing under the laws of
the State of New Jersey and having a regular place of business at 750 Vassar
Avenue, Second Floor, Lakewood, NJ 08701-6007 (hereinafter Center) and Advanced
Viral Research Corporation (hereinafter "Company"), a company organized and
existing under the laws of the State of Delaware and having a regular place of
business at 200 Corporate Boulevard, South Yonkers, NY 10701, USA.

         WHEREAS:

         A. The Company has developed new formulations for the pharmaceutical
composition Product R, sometimes known under the registered trademark
Reticulose(R), and new uses thereof;

         B. The Center is well staffed with scientists and administrative
personnel and well connected with persons qualified to conduct clinical trials
and medical research throughout Israel, and is familiar with the governmental
requirements for organizing and conducting clinical trials and medical research
in the State of Israel;

         C. The Company is interested in having the Center organize, conduct and
evaluate a Company Project including studies including clinical trials
(study/trial) to evaluate the effects of Product R and products related to
Product R on various types of cancer, conditions associated with acquired
immunodeficiency and on other diseases;

         D. The Center declares that it has designed, organized and made
preparations for Phase I and Phase I/II clinical trials in Israel on behalf of
the Company during the period May 1st 2001

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and April 30th 2002 and that the Center has an interest in conducting and
evaluating such clinical trials and strive for their high scientific quality on
behalf of the Company.

         E. The Center therefore declares with regard to such Company Project,
including Phase I and Phase I/II clinical trials designed and organized during
the period May 1st 2001 and April 30th 2002, that it will make arrangements, on
behalf of the Company, to conduct, evaluate and maintain for high scientific
quality of three (3) clinical trials approved by Institutional Review Boards of
Medical Centers and the Ministry of Health in Israel as described below in
paragraph 1.2.

         NOW THEREFORE, in consideration of the mutual promises, covenants and
undertakings hereon, the parties hereby agree as follows:

I. PERFORMING THE PHASE I AND PHASE I/II CLINICAL TRIALS

         1.1 In consideration of the sums paid and to be paid to the Center by
the Company pursuant to Article II below and subject to the Company's provision
to the Center of GMP grade Product R for systemic use and data and information
relating to Product R as required for any clinical trial, the Center hereby
undertakes to prepare and perform said clinical trials in accordance with the
protocols and procedures developed by the Center and approved by the Company and
consultants of Globomax LLC and under the supervision of the Center's
scientists.

         1.2 The Phase I and Phase I/II clinical trials shall be directed
towards assessment of toxicity and safety of Product R and secondary outcome
variables as evaluation of effects of Product R in patients with cancer, by
conducting one clinical trial on patients with advanced stage solid tumors and
one clinical trial on patients with hematopoietic and lymphocytic neoplasms, and
a third trial to treat patients with advanced stage acquired immunodeficiency
syndrome. These trials shall be prepared and performed by the Center and
collaborating

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investigators during a period of twelve (12) months and fifteen (15) days shall
commencing on May 1st, 2002 and with regard to the actual commencement of the
field work such as recruitment, as close as possible to this date following
final approval by the Ministry of Health and approval of export license from the
USA and import license to Israel of Product R as investigational drug. Said
twelve (12) months and fifteen (15) days period will be divided into three
sub-periods as follows:

         1.2.1 a one (1) month and fifteen (15) days period during which period
the Center will finalize all Israeli governmental and hospital approval
documents, said period start on May 1st, 2002;

         1.2.2 a two (2) months period, said to commence on June 16th 2002 to
complete organization of the three (3) clinical trials including all the
necessary work for establishing a network of scientists to perform said
study/trial and to initiate recruitment of patients and secure the necessary
logistics;

         1.2.3 the ensuing nine (9) month period will be devoted to performing
the study/trial and evaluating the results thereof, said period is aimed to
commence on August 15th, 2002. Failure of the Center to obtain the necessary
minimum recruitment of patients up to 60 days after the target date of
commencement or to failure to demonstrate continuity of the trials to enable the
Center to commence said study/trial on August 15, 2002 shall be grounds for
cancellation of this contract by the Company.

         1.3 The Company agrees that Globomax LLC, a consultant of the Company
in the field of US FDA regulations, or any company that acts as FDA consultant
to Advanced Viral Research Corp., will advise the Center on an ongoing basis
related to the work that the Center performs on the study/trial so that the
Centers work product will be acceptable to the US FDA as

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Phase I and Phase I/II clinical trials. The Company further agrees that the
Center will have reasonable access to Globomax LLC for the purpose of seeking
Globomax's LLC advice on the Center's present and future course of action in
order to assist the Center in performing the study/trial in a manner that will
maximize likelihood of approval of said clinical trials by the US FDA possible.
Nothing herein is intended to be a warranty that if the Center follows
Globomax's LLC advice it will produce a work product acceptable to the US FDA.
Globomax LLC and the Company must both approve the protocols. However, if
GloboMax LLC determines that the protocol, the clinical study facilities,
medical personnel, patient study population, informed consent forms, monitoring
of patient compliance, patient data forms and method of study patient accrual or
any of them do not meet U.S.F.D.A. requirements for proper patient therapeutic
trials, that, by itself, will be deemed a reasonable ground for non-approval of
commencement of the second nine (9) month (beginning on August 15th, 2002)
period of said studies/trials. However, the Center will be given reasonable time
to amend any insufficiencies related to the issues stated above, which is
considered sixty (60) days.

         1.4 The Company and GloboMax LLC will have the right to dispatch
personnel to Israel to meet with appropriate members of the Center and in
coordination with the clinical centers, meet with personnel at clinical centers
participating in any clinical study pursuant to this Agreement to determine that
any planned or ongoing trial previously approved by GloboMax LLC is adhering to
the approved study parameters specified by the Center and approved by GloboMax
LLC, as set forth in paragraph 1.3 above, and to obtain additional information
(if any) and explanations, in order to discuss, in detail, the study/trial, its
results, procedures and any other matter deemed by Globomax LLC and/or the
Company necessary with the scientists and members of their team involved in the
study/trial, provided that such visits shall take place

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during normal business hours and shall not unreasonably interfere with the
conduct of the study/trial and any other work being carried out by the
scientists.

         1.5 Should, during the Contract period, any of the scientists (as
hereinafter identified in Article III) cease to be available for the design,
supervision, conduct and evaluation of said study/trial, such cessation shall
not by itself constitute a breach of this Agreement by the Center. The Center,
however, shall be obligated to immediately notify the Company in writing of the
loss of availability of any such scientist or scientists and shall undertake to
find a replacement scientist(s) of equal qualifications, but no substitution of
said scientists shall be permitted unless and until the name and the resume of
said substitute scientist is submitted to the Company for approval, which
approval shall not be unreasonably withheld. It is understood that during the
evaluation of a substitute scientist, the Company shall have the right to
interview such substitute entirely at the Company's expense and should the
substitute scientist refuse to submit to such an interview that, by itself,
shall constitute a reasonable basis for withholding the Company's approval of
such substitute scientist. Should no replacement scientist acceptable to the
Company be found within sixty (60) days of an original scientist(s) ceasing to
work on the study/trial, the Company shall be entitled, by written Notice to the
Center, to cancel the Agreement which cancellation shall become effective upon
delivery of the Notice of Cancellation to the Center. Upon such cancellation,
the Center shall arrange to gather the data (as such term is hereinafter
defined) in any and all media relating to the work done in the organization,
conduct and evaluation of said study/trial and deliver all such data to the
Company.

         1.6 The parties agree that the protocols prepared by the Center for
said clinical trials related to this Agreement, including CRF documents, shall
be considered intellectual properties of the Center, to the extent such
protocols were designed by the Center, but, to the extent that

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such protocols were designed or altered by the Company, the Company shall own
said intellectual property in whole or in proportional part with the Center as
determined by the parties.

         1.7 It is hereby agreed by the parties that nothing contained in this
Agreement shall be construed as a warrantee or obligation on the part of the
Center that the data, the information or any other results deriving from the
performance of the study are or will be of any commercial or practical value,
and the Center makes no warranties whatsoever in respect of such results.

         1.8 In the event that, for any reason of drug associated toxicity
and/or adverse effect, a medical center and/or investigator decide to
discontinue ongoing clinical trial, the Center shall not be held responsible for
such discontinuation. Cessation of a clinical trial for the said reason does not
constitute a basis for cancellation of the Agreement between the Center and the
Company. In the event of interruption of a clinical trial, the Center must be
given reasonable time, ninety (90) days from the notification of cessation by
the medical center or clinical investigator, to analyze and report on the
reasons for the discontinuation of the study, and, if medically acceptable, to
resume said clinical trial in its original form or in modified form agreed to by
both parties. If the said clinical trial is not resumed within ninety (90) days
of cessation, either the Company or the Center can, in its sole discretion,
terminate the clinical trial and cancel this Agreement upon said ninetieth day.

         1.9 The Center covenants and agrees that it will not make any other use
of Product R during the term of this Agreement and for five (5) years after the
termination or cancellation, thereof for any reason other than the study/trial,
and the Center further covenants and agrees not to manufacture or cause to be
manufactured Product R for any purpose, unless Product R is licensed to the
Center by the Company.

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         1.10 The Company and the Center agree that the Center will function as
the sole importer of Product R in Israel, if permitted by Israeli law, for
purposes of said studies/trials and sole distributor to investigators and
medical center during the period of the studies/trials and solely for the
purposes of said studies/trials. The Company intends to export to the Center GMP
grade Product R for systemic use and the gathering of data and information
relating to Product R as required for any clinical trial. Any delay in or all
three (3) of the Phase I and Phase I/II clinical trials resulting from a delay
in the exportation from the U.S. of GMP grade Product R, will be deemed to be
the Company's fault and will result in an extension of said nine (9) month
period by the same number of days as said delay, but will not be treated as
grounds for cancellation of this agreement nor as the basis for action against
the Company based on breach of contract, tort or any other legal theory. The
Center intends to obtain a permit to legally import Product R into Israel for
use in said three (3) clinical trials. If for legal reasons, the importer of
Product R as an investigational drug for said clinical trials must be an entity
other than the Center by law, such as the respective medical center, the Center
must notify the Company of such condition and the Center shall promptly make the
necessary arrangements for legal import of Product R into Israel and prepare any
contract and/or agreement regarding this issue between the Company and the
designated importer to be approved by the Company.

         1.11 Costs for shipping and fees associated with the importation of
Product R to Israel and its use in the proposed studies/trials, such as
registration and (temporary) licensing lees, will be paid by the Company. These
costs are in addition to the total amount to be paid to the Center according to
this Agreement.

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         1.12 Costs for obtaining approval of legal import of GMP Product R into
Israel, whether by the Center as importer or by any other person, firm or
corporation as importer (as provided in paragraph 1.11 above), shall be borne by
the Center.

II. FUNDING THE STUDY

         2.1 In addition to supplying the Center with Product R and data and
information relating to Product R, covering the costs charged by the medical
centers and insurance coverage, and costs of export and import of Product R, the
Company agrees and undertakes to pay in a sole payment to the Center for the
period defined in the paragraph 1.2.1, the amounts of U.S. dollar $127,820 (one
hundred twenty seven thousand eight hundred and twenty). Thereafter, the Company
agrees and undertakes to pay to the Center for the periods defined in the
paragraphs 1.2.2 and 1.2.3 the amounts of U.S. dollar $1,625,631 (one million
six hundreds twenty five thousands and six hundred thirty one) for the thee
c1inical trials as detailed in Schedules A, B and C.

         (a) Within 7 days after signing this contract, the Company will pay to
the Center the total amount of U.S. dollar $127,820 (one hundred twenty seven
thousand eight hundred and twenty) defined in the paragraph 1.2.1 for the period
May 1st, 2002 to June 16th, 2002.

         (b) On or before the twenty fifth (25th) day of each month during said
initial two (2) month period (July and August 2002), the Company will pay to the
Center a total equivalent of twenty five (25) percent (12.5 percent each month)
of the total amount as detailed in Schedules A, B and C;

         (c) If the Agreement is not cancelled prior to commencement of the nine
(9) month period, then at the commencement of said four and a half month period
(August 15th, 2002), the

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Company will pay the Center said ten (10) percent on or before September 25th,
2002, of the total amount as detailed in SCHEDULES A, B AND C;

         (d) On or before the twenty fifth (25th) day of each of said seven
month period commence on October 15th, 2002 and ended on April 15th, 2003, the
Company will pay the Center said each month seven (7) percent of the total
amount as detailed in SCHEDULES A, B AND C;

         (e) Promptly after completion of the second nine month period and
submission by the Center to the Company of a final report prepared as required
in paragraph 5.1 below, a final payment of, said sixteen (16) percent of the
total amount as detailed in SCHEDULES A, B AND C. Last payment will be no more
than thirty (30) days from date of the final report submitted by the Center to
the Company.

         (f) In the event that the trial is delayed or postponed with the
approval of the Company for any reason whatsoever (including but not limited to
the loss of a scientist) for more than fifteen (15) days, then payment will be
suspended during such delay but will be resumed on the above basis upon
resumption of the study/trial.

         (g) All payments pursuant to this Agreement shall be made by direct
wire transfer to the Center's bank account, the details of which the Center
shall notify the Company.

         (h) In the event that the Company does not fulfill the scheduled
payments according to item 2.1 (a-c), the Center shall not be responsible for
any delay in the time schedule of the clinical trials as described in SCHEDULE
D, resulting from said delay but such delay in time schedule may not exceed the
duration of the Company's delay.

         (i) In the event that the Company delayed the schedule payment
according to item 2.1 (a-d) in more than five (5) days, said the thirty (30) of
each month, the Company will pay to

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the Center the delayed payment amount by adding one (1) percent for each 30 days
of delay day, said starting from the twenty fifth (25) day. In this case the
Center is not responsible for any delay in the time schedule of the clinical
trials as described in SCHEDULE D, resulting from said delay but such delay in
time schedule may not exceed the duration of the Company's delay.

         (j) In the event that the Company delayed the schedule payment
according to item 2.1 (a-d) more than sixty (60) days, the Center may suspend or
cancel the clinical trials as detailed in paragraph 1.2. In the case of
suspension the Center is not responsible for any delay in the time schedule of
the clinical trials as described in SCHEDULE D, resulting from said delay but
such delay in time schedule may not exceed the duration of the Company's delay.

         2.2 In addition to the funding to the Center said by organizing,
conducting, evaluating and submit a reports of each of the three (3) clinical
trials with Product R, the Company has a direct contract a with each of the
participating Medical Centers in Israel as follow:

         (a) A proposed budget of expenses for each of the three (3) clinical
trials was submitted by the collaborating medical centers in Israel to the
Center. Such budget proposals that include Medical Center expenses, patient
evaluations and treatments were forwarded by the Center to the Company for
approval. The Company has notified the Center of the approval of the funding of
the three (3) clinical trials cost requested by the medical centers.

         (b) The parties agree that failure of such medical center to have
adequate liability coverage to protect itself from any and all liability in tort
or conduct or otherwise arising out of said study/trial should be a reasonable
basis for the Company to withhold approval of such medical center.

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         (c) The Company and the Center agree that any delay of the Company to
pay according to conditions stipulated in the contract with each Medical Center,
is the sole responsibility of the Company, that will not affect the funding
schedule agreed on item 2.1 (a-e).

         (d) The Company and the Center agree that such direct contracts between
the Company and each Medical Center shall be executed concurrently with said
direct contracts and failure of such execution by any Medical Center shall
constitute a failure of the execution of this Agreement by the Center.

III. CORE (SENIOR) SCIENTISTS

         3.1 The following scientists shall work on said studies/trials unless
substituted as set forth in paragraph 1.5 above:

         Dr. Alf Fischbein will devote at least 75% of his time to the ADVR
project set forth in Paragraphs C, D and E, during which time Dr. Fischbein will
work on the development and completion of CRF of the project, the assessment of
clinical and laboratory parameters as they become available, will interact
closely with the clinical team, i.e. physicians, nurses/interviewers and will
work with his co-workers Drs. Iscovich, Mark Levitt regarding the clinical
aspects of each trial, with Michael Davison, Ido Sadan MSc, and Professor
Laurence Freedman regarding CRF, database and statistical aspects of the project
and the procedures relating to data analysis and generation of reports. Dr.
Fischbein will also keep abreast of scientific-medical exchanges among all
principals participating in the study and will serve as liaison with the Company
on a continuous basis, together with Dr. Iscovich.

         Dr. Jose Iscovich will devote 75% of his time to the ADVR project set
forth in Paragraphs C, D and E. Dr. Iscovich, who together with Dr. Fischbein,
designed and developed the protocols for the 3 clinical trials, will work in the
organizational and management aspects of

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each trial in close collaboration with Dr. Fischbein and Dr. Mark Levitt. Dr.
Iscovich will be responsible and will supervise closely the operations of the
data communication system, both on-line and in-house, quality control procedures
and quality assurance, and will also act a liaison among participating
institutions and scientists, Government authorities and with the Company. In
addition, he will work with Michael Davison, Ido Sadan MSc and Professor
Laurence Freedman regarding CRF, database and statistical aspects of the project
and the procedures relating to data analysis and generation of reports.

         Dr. Mark Levitt will devote 50% of his time to the project set forth in
Paragraphs C, D and E. In his capacity as an eminent and experienced clinical
investigator, he will act as a `resident' Center clinical scientist at the
various medical centers in which the clinical trials are performed. Dr. Levitt
will have daily access to the operations of the clinical trial and be able to
interact with the clinical investigator and nurse(s). This will enable him to
perform close supervision of the progress of the trial. He will also be
available, as required, for interaction with the monitor and the individual
responsible for the logistics of the part of the clinical trial that is
performed off hospital campus, i.e. in the patients' home. Dr. Levitt will also
assist in the preparations of the CRF documents, data analysis and generation of
reports.

         A project coordinator/manager (to be named) with either a Ph.D. or a
MSc degree in pharmacology, biology or management science will devote (two-third
percentage time effort for each of the clinical trials) during the entire eleven
(11) months period of the Project. The coordinator will be responsible for the
coordination of all activities of the project both within the Center and
externally at the various medical centers and will also ascertain that the
coordination of activities required for the ongoing interaction between the
Center and the Company functions optimally.

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         A Senior Clinical Research Associate will be engaged as an independent
expert for monitoring activities of the three clinical trials. Their task will
include monitoring and quality assurance of activities both in the medical
centers and in the patients' residence. They will collect, review and approve
regulatory documents associated with the clinical trials. Their monitoring will
ensure strict compliance with applicable FDA and Israeli regulations and
protocols.

         An Assistant Statistician (to be named) with a Master of Science degree
in statistics is expected to devote 50% time efforts during the entire eleven
(11) month period. The Assistant Statistician will coordinate with Dr. Iscovich
and Professor Freedman (see below) and Dr. Fischbein the management and
provision of data on a continuous basis to those parties, who have been
determined to be receivers of such data including the Company.

         Professor Laurence Freedman, statistical consultant, will act as a
consultant for the organization of collected data, calculations, quality control
and data analysis.

IV. COMPANY INFORMATION AND CONFIDENTIALITY

         4.1 All information imparted to the Center by the Company as set forth
in Paragraph 1.1 and any and all other confidential information, trade secrets
and know-how imparted to the Center by the Company, whether in connection with
the study/trial or otherwise, shall be the sole and exclusive property of the
Company, shall be divulged to scientists of the Center only on a need to know
basis and subject to Paragraph 4.2 below, and shall not be used by (the) said
scientists for any purpose other than the performance of said study/trial nor
divulged to anyone outside of the Center without the prior written approval of

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the Company; provided, however, that any information divulged to the Center or
its scientists shall not be included in this paragraph, if such information:

         (i) is at the time of disclosure in the public domain;

         (ii) becomes part of the public domain thereafter other than through a
violation by the Center or its scientists of the obligation set forth in this
article;

         (iii) the scientists can prove, by written evidence submitted within 30
(thirty) days of the scientists receiving such information that (a) information
had previously been known to him/her prior to such disclosure; or (b) was
received from a third party not in violation of any confidentiality obligation
with the Company.

         4.2 The Center is permitted to disclose any such confidential
information to the scientists named in Article III above or their approved
substitutes, but only after such scientists execute an undertaking of
confidentiality in the form annexed hereto and such scientists shall be
permitted to divulge any such confidential information to its employees or
others who are engaged in the performance of the study provided such employees
or others execute an undertaking in the form attached hereto. The Center will
promptly forward such executed undertaking to the Company.

         4.3 Neither the Center nor anyone connected with the Center shall
publish any of the data or information developed or resulting from said
study/trial without first submitting said publication to the Company. If the
Company concludes that any such publication will adversely affect its
proprietary position in any way whatsoever, the Company has the right to object
to publication for up to a period of no more than one (1) year and said author
and/or the scientist and/or the Center shall not publish such data or
information during the period of said objection.

         4.4 Nothing in this Article IV shall be deemed to prevent the Center
from disclosing the Company's confidential information to a legally competent
authority legally requiring such disclosure, or for the purpose of this
Agreement. In such a case, the Center shall inform such

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authority of the confidential nature of the information and prior to making such
disclosure shall notify the Company of such a requirement.

         4.5 This article IV shall survive the cancellation or termination of
this Agreement.

V. REPORTING

         5.1 The Center shall procure the submission by the scientists of a
quarterly report containing a summary of the work performed by them and the
Center during said quarter, including a copy of any data developed and any and
all conclusions reached from said data. Said three-quarterly reports shall be
submitted within thirty (30) days of the close of the contract quarter (or, if
extended as provided in paragraph 2.1(e) above, then thirty (30) days after the
extended date of the close of the quarter), said within thirty (30) days from
September 30, 2002; December 31, 2002 and March 31, 2003. The final report shall
be submitted to the Company within sixty (60) days of the end of the nine-month
period (as defined in paragraph 1.2.3), from May 15, 2003. All quarterly reports
and the final report will present a detailed description of the work done during
the period covered, the data collected, any conclusions and recommendations
based on said data and any recommendations for future actions by the Center
and/or the Company.

VI. COMPANY'S OBLIGATION OF CONFIDENTIALITY

         6.1 Should the Company or any of its employees or representatives of
GloboMax, LLC receive from the Center or any of its scientists confidential
information developed by the Center prior to work performed by the Center
pursuant to this Agreement, then the Company agrees to hold such information
confidential and to not use it itself nor divulge it to others unless:

         (i) the information is at the time of the disclosure in the public
domain;

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         (ii) the information becomes part of the public domain thereafter
through other than a violation by the Company of its obligation of
confidentiality;

         (iii) the Company can prove by documentary evidence submitted to the
Center within thirty (30) days of receipt of such confidential information that
it was previously known to the Company and/or its employees; or

         (iv) after such confidential information is imparted by the Center to
the Company, the same information is received by the Company from a third party
who is not in violation of any confidentiality obligation to the Center.

         (v) no Medical Center nor any of its scientists shall use any
information which it/he/or she considers its/his/or her confidential information
in the performance of work relating to the Company's project without the prior
written consent of the Company and such use shall constitute a waiver of any
asserted right of confidentiality.

         6.2 Notwithstanding paragraph 6.1, the Company may disclose to its
employees and those of GloboMax LLC such confidential information received from
the Center necessary for the fulfillment of the undertakings of this Agreement
provided that the Company shall bind such employees in writing with the same
undertaking of confidentiality as annexed hereto. The Company will promptly
forward such executed undertakings to the Center.

         6.3 Nothing in this Article VI shall be deemed to prevent the Company
from disclosing the Center's confidential information to a legally competent
authority legally requiring such disclosure, or for the purpose of this
Agreement. In such a case, the Company shall inform such authority of the
confidential nature of the information and prior to making such disclosure shall
notify the Center of such a requirement.

         6.4 This Article VI shall survive the termination of this agreement.

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VII. OWNERSHIP

         7.1 All right, title and interest in and to the data developed by the
Center through said studies/trials or derived therefrom and all conclusions
derived therefrom shall be the sole and exclusive property of the Company.

         7.2 Any and all discoveries, ideas and inventions conceived in whole or
in part by the Center or its scientists or staff arising out of said study/trial
shall be the sole and exclusive property of the Company.

         7.3 This Article VII shall survive the cancellation or termination of
this Agreement.

VIII. INDEMNITY

         8.1 The Center will obtain prior to May 1, 2002 liability insurance in
its name and in the name of the Company in the amount of three million (US
$3,000,000) U.S. dollars against any claims, whether in tort or in contract or
otherwise, arising from the work of the Center in connection with said
studies/trials and for no other work or project being performed now or at any
time at or by the Center. The insurance policy in the name of the Company in
like amount that holds the Company harmless against and all claims arising in
contract or in tort or otherwise from said studies/trials must be valid prior to
commencement of the clinical trials. The Center may obtain said policies as two
separate policies or as one policy with the Center and the Company as named
co-insured, provided said one policy provides the same coverage to both the
Center and the Company as two separate policies.

         8.2 The Company agrees to bear the full cost of all insurance required
by this Article VIII provided, however, if the total premiums for such policy or
policies covering the Company and the Center exceed one hundred thousand (U.S.
$100,000) dollars, the Company will have the

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right to cancel this Agreement and such cancellation will not give rise to any
claims, cross-claims or counterclaims by either party against the other.

IX. GOVERNING LAW

         9.1 The parties agree that the manner in which the studies/trials are
performed shall in all respects be governed by Israeli law; and the parties
further agree that any disputes between the parties relating to their rights and
obligations to each under this Agreement will be resolved in accordance with the
law of the State of New York, U.S.A.

X. DISPUTES BETWEEN THE PARTIES

         10.1 In the event that a dispute arises between the parties that
requires judicial intervention for resolution, if the Center institutes an
action against the Company, that action must be commenced only in a U.S.
District Court or a New York State Court located in the City of New York or in
Westchester County, N.Y.; and if an action is instituted by the Company against
the Center, that action must be commenced only in Israel. Nothing herein,
however, shall prevent the defendant in any action between the parties from
filing a counterclaim after being sued in its own home jurisdiction by the
plaintiff.

XI. PAYMENTS

         11.1 All amounts paid pursuant to this Agreement do not include the US
State tax and VAT prescribed by US and Israeli law. The Company will pay US
State taxes and VAT if required by law.

XII. MISCELLANEOUS

         12.1 Neither party may assign in whole or in part any of its rights or
obligations under this Agreement without the prior written consent of the other.

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<PAGE>

         12.2 This Agreement, including any Exhibits, is the entire Agreement
between the parties as to the subject matter contained herein and supersedes all
other agreements and memoranda of understanding, both oral and written,
heretofore made between the parties. Any amendment hereto must be made in
writing and signed by an authorized representative of each of the parties.
Should any portion of this Agreement be held invalid or unlawful, the remainder
of this Agreement shall continue to remain in full force and effect as to both
parties.

         12.3 The Center and its scientists and employees are independent
contractors and are not the agents, employees, legal representatives of the
Company, and are not authorized to do business in the Company's name or to
obligate the Company in any way.

         12.4 Section titles and captions herein are for reference only and
shall not be considered in construing this Agreement.

         12.5 The waiver by either party of any material breach or alleged
material breach of any provision hereunder shall not be construed to be a
continuing waiver of any concurrent, prior or succeeding breach of said
provision or any other provision herein.

XIII. NOTICES

         13.1 Any notices to be given hereunder shall be served on a party by
prepaid First Class Mail or by Federal Express or DHL courier to the address set
forth in the beginning of this Agreement or to any other address as a party may
subsequently notify the other in writing, and any such notice so served shall be
deemed to have been served seven (7) days after the time at which it was sent.
Either party shall have the right, if it chooses, to give notice by facsimile in
which case it shall be deemed that the notice was served twenty-four (24) hours
after its actual transmission. Each party agrees to exchange facsimile numbers
with the other and if such number shall be changed, to inform the other in

                                       19
<PAGE>

writing of the new number. All telecopier notices shall be confirmed by a
standard confirmatory notice given as provided above, but the date said notice
takes effect will be 24 hours after the time of transmission of the facsimile
notice.

XIV. TERMINATION

         14.1 Unless sooner terminated or cancelled in accordance with this
Agreement, this Agreement shall terminate upon receipt and approval of the final
report required in paragraph 5.1 above, which approval shall not be unreasonably
withheld.

         14.2 In the event that either party shall determine that in its opinion
the other is breaching the Agreement or otherwise violating the terms thereof, a
written notice shall be forwarded to the allegedly breaching party setting forth
in detail the manner or manners in which such breach is occurring and the party
receiving notice shall have forty-five (45) days in which to cure said breach
and to notify in writing to the complaining party that said breach has been
cured. If such notice of cure is not sent or, if sent, the allegedly breaching
party takes no substantial action to cure the default or, if it takes such
action and the complaining party is dissatisfied with the nature of the cure,
then the termination or cancellation shall take effect thirty (30) days after
the allegedly breaching party received written notice from the other party of
such breach.

         14.3 The termination of this agreement for any reason shall not relieve
the parties of any obligations that shall have accrued prior to such
termination.

         IN WITNESS WHEREOF THE PARTIES HAVE EXECUTED THIS AGREEMENT AS OF THE
DATE FIRST ABOVE WRITTEN.

/s/ AUTHORIZED REPRESENTATIVE               /s/ SHALOM Z. HIRSCHMAN
-------------------------------             ----------------------------
    EnviroGene LLC                          Advanced Viral Research Corporation

                                       20<PAGE>

                                                                    EXHIBIT 10.2

                           GENERAL SERVICES AGREEMENT

         This General Services Agreement ("Agreement") is made between Advanced
Viral Research Corporation, Inc - ADVR, which has a place of business at 200
Corporate Boulevard South, Yonkers, New York 10701, USA (hereinafter "Sponsor"),
and Quintiles Israel Ltd. having its office at P.O.B 8567, Poleg Industrial Park
Netanya 42505, Israel (hereinafter "Quintiles"). When signed by both parties,
this Agreement will set forth the terms and conditions under which Quintiles
agrees to provide certain services to Sponsor as set forth herein.

                                    RECITALS:

         A. Sponsor is in the business of developing, manufacturing and/or
distributing pharmaceutical products, medical devices and/or biotechnology
products. Quintiles is in the business of providing clinical trial services,
research, and other services for the pharmaceutical, medical device and
biotechnology industries and has made significant, up-front investments in
technologies related to those industries, building on important inventions and
web-based technologies.

         B. Sponsor and Quintiles desire to enter into this Agreement whereby
Quintiles will perform services relating to ADVR's three projects:

         Phase I Clinical Trial of the Peptide Nucleic Acid Complex `Product R'
         in Patient with Advanced-Stage Acquired Immunodeficiency Syndrome

         Phase I Clinical Trial of the Peptide Nucleic Acid Complex `Product R'
         in Patient with Advanced-Stage Hematopoietic Neoplasms

         Phase I Clinical Trial of the Peptide Nucleic Acid Complex `Product R'
         in Patient with Advanced-Stage Cancer, Preceded by a Pre-Phase I single
         Injection Study (the "Project").

                                   AGREEMENT:

         1.0      SERVICES TO BE PROVIDED. The services to be performed
                  hereunder (the "Services") shall be specified in the Scope of
                  Work attached hereto as Attachment 1. Any responsibilities not
                  specifically transferred in this Agreement shall remain the
                  responsibility of Sponsor.

         2.0      PAYMENT OF FEES AND EXPENSES. Sponsor will pay Quintiles for
                  fees, expenses and pass-through costs in accordance with the
                  budget and payment schedule attached hereto as Attachment 2.
                  Sponsor agrees that the budget and payment schedule will be
                  structured in an effort to maintain cash neutrality for
                  Quintiles (with respect to the payment of professional fees,
                  pass-through costs and otherwise). As a minimum requirement in
                  this context, if requested by Quintiles, Sponsor agrees that
                  it shall provide an up-front payment equal to fifteen percent
                  (15%) of the budget, which up front payment shall be credited
                  to Sponsor on the

<PAGE>

                  final invoice. Quintiles will invoice Sponsor monthly for the
                  fees, expenses and pass-through costs incurred in performing
                  the Services, and Sponsor shall pay each invoice within thirty
                  (30) days of the date of the invoice. If any portion of an
                  invoice is disputed, then Sponsor shall pay the undisputed
                  amounts as set forth in the preceding sentence and the parties
                  shall use good faith efforts to reconcile the disputed amount
                  as soon as practicable. Sponsor shall pay Quintiles interest
                  in an amount equal to four percent (4%) above the LIBOR rate
                  per month of all undisputed amounts owing hereunder and not
                  paid when due (or the maximum lesser amount permitted by
                  applicable law). In the event that taxes or duties, of
                  whatever nature, are required to be withheld on payments made
                  pursuant to this Agreement by any state, federal, provincial
                  or foreign government, including, but not limited to, Value
                  Added Tax, Sponsor shall promptly pay said taxes and duties to
                  the appropriate taxing authority without any deduction to any
                  amount owed to Quintiles. Sponsor shall secure and deliver to
                  Quintiles any official receipt for any such taxes paid.
                  Quintiles shall send all invoices to the attention of Alan V.
                  Gallantar at the following address: 200 Corporate Boulevard
                  South, Yonkers, New York 10701, USA. Sponsor shall send all
                  payments to the following address: Quintiles Israel Ltd.
                  P.O.B. 8567, Poleg Industrial Park Netanya 42505, Israel.

         3.0      TERM. This Agreement shall commence on the date it has been
                  signed by all parties and shall continue until the Services
                  are completed or until terminated by either party in
                  accordance with Section 17 below.

         4.0      CHANGE ORDERS. Any change in the details of this Agreement or
                  the assumptions upon which this Agreement is based (including,
                  but not limited to, changes in an agreed starting date for the
                  Project or suspension of the Project by Sponsor) may require
                  changes in the budget and/or time lines, and shall require a
                  written amendment to the Agreement (a "Change Order"). Each
                  Change Order shall detail the requested changes to the
                  applicable task, responsibility, duty, budget, time line or
                  other matter. The Change Order will become effective upon the
                  execution of the Change Order by both parties, and Quintiles
                  will be given a reasonable period of time within which to
                  implement the changes. Both parties agree to act in good faith
                  and promptly when considering a Change Order requested by the
                  other party. Without limiting the foregoing, Sponsor agrees
                  that it will not unreasonably withhold approval of a Change
                  Order, even if it involves a fixed price contract, if the
                  proposed changes in budgets or time lines result from, among
                  other appropriate reasons, forces outside the reasonable
                  control of Quintiles or changes in the assumptions upon which
                  the initial budget or time lines were based, including, but
                  not limited to, the assumptions set forth in the budget or
                  timelines. Quintiles reserves the right to postpone effecting
                  material changes in the Project's scope until such time as the
                  parties agree to and execute the corresponding Change Order.
                  For any Change Order that affects the scope of the regulatory
                  obligations that have been transferred to Quintiles, Quintiles
                  and Sponsor shall execute a corresponding amendment to the
                  Transfer of Obligations Form. Sponsor shall file such
                  amendment where appropriate, or as required by law or
                  regulation.

                                       2
<PAGE>

5.0               CONFIDENTIALITY. It is understood that during the course of
                  this Agreement, Quintiles and its employees may be exposed to
                  data and information that are confidential and proprietary to
                  Sponsor. All such data and information (hereinafter "Sponsor
                  Confidential Information") written or verbal, tangible or
                  intangible, made available, disclosed, or otherwise made known
                  to Quintiles and its employees as a result of Services under
                  this Agreement shall be considered confidential and shall be
                  considered the sole property of Sponsor. All information
                  regarding Quintiles' operations, methods, and pricing and all
                  Quintiles' Property (as defined in Section 6.0 below),
                  disclosed by Quintiles to Sponsor in connection with this
                  Agreement is proprietary, confidential information belonging
                  to Quintiles (the "Quintiles Confidential Information", and
                  together with the Sponsor Confidential Information, the
                  "Confidential Information"). The Confidential Information
                  shall be used by the receiving party and its employees only
                  for purposes of performing the receiving party's obligations
                  hereunder. Each party agrees that it will not reveal, publish
                  or otherwise disclose the Confidential Information of the
                  other party to any third party without the prior written
                  consent of the disclosing party. Each party agrees that it
                  will not disclose the terms of this Agreement to any third
                  party without the written consent of the other party, which
                  shall not unreasonably be withheld. These obligations of
                  confidentiality and nondisclosure shall remain in effect for a
                  period of ten (10) years after the completion or termination
                  of the Agreement.

                  The foregoing obligations shall not apply to Confidential
                  Information to the extent that it: (a) is or becomes generally
                  available to the public other than as a result of a disclosure
                  by the receiving party; (b) becomes available to the receiving
                  party on a non-confidential basis from a source which is not
                  prohibited from disclosing such information; (c) was developed
                  independently of any disclosure by the disclosing party or was
                  known to the receiving party prior to its receipt from the
                  disclosing party, as shown by contemporaneous written
                  evidence; or, (d) is required by law or regulation to be
                  disclosed.

         6.0      OWNERSHIP AND INVENTIONS. All data and information generated
                  or derived by Quintiles as the result of services performed by
                  Quintiles under this Agreement shall be and remain the
                  exclusive property of Sponsor. Any inventions that may evolve
                  from the data and information described above or as the result
                  of services performed by Quintiles under this Agreement shall
                  belong to Sponsor and Quintiles agrees to assign its rights in
                  all such inventions and/or related patents to Sponsor.
                  Notwithstanding the foregoing, Sponsor acknowledges that
                  Quintiles possesses certain inventions, processes, know-how,
                  trade secrets, improvements, other intellectual properties and
                  other assets, including but not limited to analytical methods,
                  procedures and techniques, procedure manuals, personnel data,
                  financial information, computer technical expertise and
                  software, which have been independently developed by Quintiles
                  and which relate to its business or operations (collectively
                  "Quintiles' Property"). Sponsor and Quintiles agree that any
                  Quintiles' Property or improvements thereto which are used,
                  improved,

                                       3
<PAGE>

                  modified or developed by Quintiles under or during the term of
                  this Agreement are the sole and exclusive property of
                  Quintiles.

         7.0      RECORDS AND MATERIALS. At the completion of the Services by
                  Quintiles, all materials, information and all other data owned
                  by Sponsor, regardless of the method of storage or retrieval,
                  shall be delivered to Sponsor in such form as is then
                  currently in the possession of Quintiles, subject to the
                  payment obligations set forth in Section 2 herein.
                  Alternatively, at Sponsor' s written request, such materials
                  and data may be retained by Quintiles for Sponsor for an
                  agreed-upon time period, or disposed of pursuant to the
                  written directions of Sponsor. Sponsor shall pay the costs
                  associated with any of the above options and shall pay a
                  to-be-determined fee for storage by Quintiles of records and
                  materials after completion or termination of the Services.
                  Quintiles, however, reserves the right to retain, at its own
                  cost and subject to the confidentiality provisions herein,
                  copies of all materials that may be needed to satisfy
                  regulatory requirements or to resolve disputes regarding the
                  Services. Nothing in this Agreement shall be construed to
                  transfer from Sponsor to Quintiles any FDA or regulatory
                  record-keeping requirements unless such transfer is
                  specifically provided for in the applicable Transfer of
                  Obligations Form.

         8.0      INDEPENDENT CONTRACTOR RELATIONSHIP. For the purposes of this
                  Agreement, the parties hereto are independent contractors and
                  nothing contained in this Agreement shall be construed to
                  place them in the relationship of partners, principal and
                  agent, employer/employee or joint venturers. Neither party
                  shall have the power or right to bind or obligate the other
                  party, and neither party shall hold itself out as having such
                  authority. If, however, Sponsor desires to conduct clinical
                  trials in one or more countries that require a local sponsor
                  or representative, and Sponsor requests that Quintiles or its
                  affiliates serve as its agent for that purpose, then Quintiles
                  may serve as Sponsor's agent for the purpose of fulfilling
                  local sponsor or representative duties. Sponsor shall pay
                  Quintiles for such local representative services at Quintiles'
                  standard daily rates, unless otherwise specified in the
                  attached Budget.

         9.0      REGULATORY COMPLIANCE; INSPECTIONS. Quintiles agrees that its
                  Services will be conducted in compliance with all applicable
                  laws, rules and regulations, and with the standard of care
                  customary in the contract research organization industry. If
                  this study will be conducted under an FDA Investigational New
                  Drug Application ("IND") or Investigational Device Exemption
                  ("IDE"), or any other FDA application, Quintiles represents
                  that it has a compliance plan in place regarding the FDA's
                  electronic records and signatures regulation, 21 CFR Part 11
                  ("Part 11") and that it is working diligently to implement its
                  plan. Quintiles, however, is not responsible for the
                  compliance or non-compliance of applications or systems used
                  by third parties (including, but not limited to, investigative
                  sites or third party laboratories) unless such applications or
                  systems are owned by Quintiles. Quintiles shall process all
                  personal data in accordance with this Agreement or as
                  otherwise instructed by Sponsor or its affiliates in
                  compliance with the EU Data Protection Directive 95/46/EC and
                  any applicable national legislation enacted

                                       4
<PAGE>

                  thereunder ("Data Protection Legislation"). Sponsor represents
                  and affirms to Quintiles that Sponsor has complied with, and
                  will continue to comply with its obligations under the Data
                  Protection Legislation.

                  Quintiles' standard operating procedures will be used in
                  performance of the Services, unless otherwise specifically
                  stated in the Scope of Work. Quintiles certifies that it has
                  not been debarred under the Generic Drug Enforcement Act and
                  that it will not knowingly employ any person or entity that
                  has been so debarred to perform any Services under this
                  Agreement. Sponsor represents and certifies that it will not
                  require Quintiles to perform any assignments or tasks in a
                  manner that would violate any applicable law or regulation.
                  Sponsor further represents that it will cooperate with
                  Quintiles in taking any actions that Quintiles reasonably
                  believes are necessary to comply with the regulatory
                  obligations that have been transferred to Quintiles. If
                  Sponsor is transferring to Quintiles responsibility for any
                  regulatory obligations under United States laws or
                  regulations, Quintiles and Sponsor shall cooperate in the
                  completion of a Transfer of Obligations Form in conjunction
                  with this Agreement. Any such regulatory responsibilities not
                  specifically transferred in the Transfer of Obligations Form
                  shall remain the regulatory responsibility of Sponsor. The
                  Transfer of Obligations Form will be filed with the United
                  States Food and Drug Administration ("FDA") by Sponsor where
                  appropriate, or as required by law or regulation.

                  Each party acknowledges that the other party may respond
                  independently to any regulatory correspondence or inquiry in
                  which such party or its affiliates is named. Each party,
                  however, shall: a) notify the other party promptly of any
                  governmental or regulatory inspection or inquiry concerning
                  any study or Project of Sponsor in which Quintiles is
                  providing Services, including, but not limited to, inspections
                  of investigational sites or laboratories; b) forward to the
                  other party copies of any correspondence from any regulatory
                  or governmental agency relating to such a study or Project,
                  including, but not limited to, U.S. FDA Form 483 notices, and
                  any refusal to file, rejection or warning letters, even if
                  they do not specifically mention the other party; and, c)
                  obtain the written consent of the other party, which will not
                  unreasonably be withheld, before referring to the other party
                  or any of its affiliates in any regulatory correspondence.
                  Where reasonably practicable, each party will be given the
                  opportunity to have a representative present during any
                  regulatory inspection. Each party, however, acknowledges that
                  it may not direct the manner in which the other party fulfills
                  its obligations to permit inspection by governmental entities.

                  Each party agrees that, during an inspection by any regulatory
                  authority concerning any study or Project of Sponsor in which
                  Quintiles is providing Services, it will not disclose
                  information and materials that are not required to be
                  disclosed to such agency, without the prior consent of the
                  other party, which shall not unreasonably be withheld. Such
                  information and materials includes, but are not limited to,
                  the following: 1) financial data and pricing data (including,
                  but not limited to, the budget and payment schedule); 2) sales
                  data (other than shipment

                                       5
<PAGE>

                  data); and, 3) personnel data (other than data as to
                  qualification of technical and professional persons performing
                  functions subject to regulatory requirements).

                  During the term of this Agreement, Quintiles will permit
                  Sponsor's representatives (unless such representatives are
                  competitors of Quintiles) to examine or audit the work
                  performed hereunder and the facilities at which the work is
                  conducted upon reasonable advance notice during regular
                  business hours to determine that the Project assignment is
                  being conducted in accordance with the agreed task and that
                  the facilities are adequate. All information disclosed,
                  revealed to or ascertained by Sponsor in connection with any
                  such audit or examination or in connection with any
                  correspondence between Quintiles and any regulatory
                  authorities (including any FDA Form 483 notices) shall be
                  deemed to constitute Quintiles Confidential Information, for
                  purposes of this Agreement. Sponsor shall reimburse Quintiles
                  for its time and expenses (including reasonable attorney fees
                  and the costs of responding to findings) associated with any
                  inspection, audit or investigation relating to the Services
                  ("Inspection") instigated by Sponsor or by a governmental
                  authority, unless such Investigation finds that Quintiles
                  breached this Agreement or any applicable law or regulation.

         10.0     RELATIONSHIP WITH INVESTIGATORS. If Quintiles will be
                  obligated to contract with investigators or investigative
                  sites (collectively, "Investigators") then Quintiles will use
                  its standard Clinical Trial Agreement ("Global CTA") form, a
                  copy of which can be reviewed on request along with certain
                  local CTA forms ("Local CTAs") that have developed for use in
                  certain countries based on local requirements with the benefit
                  of local legal advice, which have been prepared in local
                  language and English language where applicable. Any applicable
                  Local CTAs will be made available for inspection by the
                  Sponsor upon request. If the Global CTA form or a Local CTA is
                  updated, Quintiles will use its then current Global CTA form
                  (or Local CTA as appropriate) as of the time of the agreement.
                  If Sponsor insists that any CTA form other than the Global CTA
                  and Local CTAs be used, then Sponsor shall pay all translation
                  costs and additional negotiation time may be required. If an
                  Investigator insists upon any material changes to any
                  provisions that directly affect Sponsor, then Quintiles shall
                  submit the proposed material change to Sponsor, and Sponsor
                  shall review, comment on and/or approve such proposed changes
                  within five (5) working days. If the Global CTA form (or Local
                  CTA, where applicable), or any changes approved by Sponsor,
                  differ from the terms of this Agreement (including, but not
                  limited to, provisions allowing an Investigator to publish
                  results or data that Quintiles is prohibited from revealing),
                  then Quintiles shall have no liability for any such approved
                  provisions or changes. Unless otherwise stated in the attached
                  Budget, the time incurred by Quintiles in negotiating CTA
                  changes proposed by sites shall be billed at Quintiles'
                  Standard Rates. The parties acknowledge and agree that
                  Investigators shall not be considered the employees, agents,
                  or subcontractors of Quintiles or Sponsor and that
                  Investigators shall exercise their own independent medical
                  judgment. Quintiles' responsibilities with respect to
                  Investigators shall be limited to those responsibilities
                  specifically set forth in this Agreement.

                                       6
<PAGE>

                  If Quintiles will be paying Investigators on behalf of
                  Sponsor, the parties will agree in the attached Payment
                  Schedule as to a schedule of amounts to be paid to
                  Investigators. Sponsor acknowledges and agrees Quintiles will
                  only pay Investigators from advances or pre-payments received
                  from Sponsor for Investigators' services, and that Quintiles
                  will not make payments to Investigators prior to receipt of
                  sufficient funds from Sponsor. Sponsor acknowledges and agrees
                  that Quintiles will not be responsible for delays in a study
                  or Project to the extent that such delays are caused by
                  Sponsor's failure to make adequate pre-payment for
                  Investigators' services. Sponsor further acknowledges and
                  agrees that payments for Investigators' services are
                  pass-through payments to third parties and are separate from
                  payments for Quintiles' Services. Sponsor agrees that it will
                  not withhold Investigator payments except to the extent that
                  it has reasonable questions about the services performed by a
                  particular Investigator. For the avoidance of doubt, nothing
                  contained in this clause, or elsewhere in this Agreement, is
                  intended to confer any right or benefit on any third party
                  including, but not limited to, any Investigator, whether under
                  the provisions of the Contracts (Rights of Third Parties) Act
                  1999 or otherwise.

         11.0     THIRD PARTY INDEMNIFICATIONS AND AGREEMENTS. If any
                  investigative sites or any other third parties, including, but
                  not limited to, Data Safety Monitoring Boards, independent
                  laboratories, Advisory Boards, or End Point Adjudication
                  Committees (collectively, "Third Parties"), request an
                  indemnification for loss or damage caused by the sponsor's
                  Project, then Sponsor shall provide such indemnification
                  directly to the Third Party. If Sponsor requests Quintiles'
                  assistance in negotiating the terms of such indemnities,
                  Quintiles shall provide such negotiation services at its
                  standard daily rates, unless otherwise agreed in the attached
                  Budget. Quintiles shall not sign such indemnifications on
                  Sponsor's behalf unless Sponsor has expressly authorized
                  Quintiles to act as its agent for such purpose or has given
                  Quintiles a written power of attorney to sign such
                  indemnifications. In countries in which local laws or local
                  ethics committees require that a local company must sign such
                  indemnifications and Sponsor has no local presence, Quintiles
                  will sign such indemnities only if the parties have entered
                  into an agreement regarding local representative duties. Such
                  agreement can be reviewed on request.

                  If Sponsor requests that Quintiles enter into agreements to
                  retain Third Parties to perform services regarding the
                  Project, such Third Parties shall be independent contractors
                  and shall not be considered the employees, agents, or
                  subcontractors of Quintiles or Sponsor. Sponsor shall pay
                  Quintiles for its reasonable time and expenses in negotiating
                  and administering any such Third Party Agreements.

         12.0     CONFLICT OF AGREEMENTS. Quintiles represents to Sponsor that
                  it is not a party to any agreement which would prevent it from
                  fulfilling its obligations under this Agreement and that
                  during the term of this Agreement, Quintiles agrees that it
                  will not enter into any agreement to provide services which
                  would in any way prevent it from providing the Services
                  contemplated under this Agreement.

                                       7
<PAGE>

                  Sponsor agrees that it will not enter into an agreement with a
                  third party that would alter or affect the regulatory
                  obligations delegated to Quintiles pursuant to this Agreement
                  without the written consent of Quintiles, which will not be
                  unreasonably withheld.

         13.0     PUBLICATION. Project results may not be published or referred
                  to, in whole or in part, by Quintiles or its affiliates
                  without the prior expressed written consent of Sponsor.
                  Neither party will use the other party's name in connection
                  with any publication or promotion without the other party's
                  prior, written consent.

         14.0     LIMITATION OF LIABILITY. Neither Quintiles, nor its
                  affiliates, nor any of Quintiles' or, its affiliate's
                  directors, officers, employees, subcontractors or agents shall
                  have any liability of any type to the extent that such
                  liabilities have not resulted from Quintiles' negligence or
                  intentional misconduct, for any loss of profits, opportunity
                  or goodwill, or any type of special, incidental, indirect or
                  consequential damage or loss in connection with or arising out
                  of this Agreement or the Services performed by Quintiles
                  hereunder.

         15.0     INDEMNIFICATION. Sponsor shall indemnify, defend and hold
                  harmless Quintiles and its affiliates, and its and their
                  directors, officers, employees and agents (each, a "Quintiles
                  Indemnified Party"), from and against any and all losses,
                  damages, liabilities, reasonable attorney fees, court costs,
                  and expenses (collectively "Losses"), joint or several,
                  resulting or arising from any third-party claims, actions,
                  proceedings, investigations or litigation relating to or
                  arising from or in connection with the Services furnished by
                  Quintiles under this Agreement (including, without limitation,
                  any Losses arising from or in connection with any study, test,
                  device, product or potential product to which this Agreement
                  relates), provided, however, that (1) Quintiles is shown to
                  have adhered to and complied with all applicable rules and
                  regulations, (2) that Sponsor is promptly notified in writing
                  of any such claim or suit, and (3) that Quintiles agrees to
                  fully cooperate in the handling of any such claim and in the
                  event of suit, to attend hearings and trials and assist in
                  securing and giving evidence and in obtaining the attendance
                  of necessary and proper witnesses. This agreement by Sponsor
                  to indemnify and to hold harmless shall not cover Losses that
                  are determined to have resulted solely from the negligence or
                  intentional misconduct of the Quintiles Indemnified Party
                  seeking indemnity hereunder.

         16.0     INDEMNIFICATION PROCEDURE. Quintiles shall give Sponsor prompt
                  notice of any such claim or lawsuit (including a copy thereof)
                  served upon it and shall fully cooperate with Sponsor and its
                  legal representatives in the investigation of any matter the
                  subject of indemnification. Quintiles shall not unreasonably
                  withhold its approval of the settlement of any claim,
                  liability, or action covered by this Indemnification
                  provision.

         17.0     TERMINATION. Sponsor or Quintiles may terminate this Agreement
                  without cause at any time during the term of the Agreement on
                  sixty (60) day's prior written notice

                                       8
<PAGE>

                  to Quintiles or Sponsor, as appropriate. Either party may
                  terminate this Agreement for material breach upon thirty (30)
                  days' written notice specifying the nature of the breach, if
                  such breach has not been substantially cured within the thirty
                  (30) day period. During the 30-day cure period for termination
                  due to breach, each party will continue to perform its
                  obligations under the Agreement. If the termination notice is
                  not due to a breach, or if the cure period has expired without
                  a substantial cure of the breach, then the parties shall
                  promptly meet to prepare a close-out schedule, and Quintiles
                  shall cease performing all work not necessary for the orderly
                  close-out of the Services or required by laws or regulations.
                  If Quintiles determines that its continued performance of the
                  Services contemplated by this Agreement would constitute a
                  potential or actual violation of regulatory or scientific
                  standards of integrity, then Quintiles may terminate this
                  Agreement by giving written notice stating the effective date
                  (which may be less than thirty days but at least fifteen days
                  from the notice date) of such termination and the basis for
                  such termination, provided that such violation will not result
                  from Quintiles' misconduct and there is a reasonable belief
                  that such violation is likely to occur. Either party may
                  terminate this Agreement immediately upon provision of written
                  notice if the other party becomes insolvent or files for
                  bankruptcy.

                  If this Agreement is terminated by Sponsor without cause or by
                  Quintiles for cause, Sponsor shall pay Quintiles for all
                  Services performed in accordance with the payment schedule
                  indicated in Attachment 2 of this Agreement and reimburse
                  Quintiles for all costs and expenses incurred in performing
                  those Services, including all non-cancelable costs incurred
                  prior to termination but paid after the termination date.
                  Under no circumstance the amount of the payment shall exceed
                  the cap specified in Attachment 2 of this Agreement.

         18.0     RELATIONSHIP WITH AFFILIATES. Sponsor agrees that Quintiles
                  may use the Services of its corporate affiliates to fulfill
                  Quintiles' obligations under this Agreement. Any affiliate so
                  used shall be subject to all of the terms and conditions
                  applicable to Quintiles under this Agreement and entitled to
                  all rights and protections afforded Quintiles under this
                  Agreement. The term "affiliate" shall mean all entities
                  controlling, controlled by or under common control with
                  Quintiles. The term "control" shall mean the ability to vote
                  fifty percent (50%) or more of the voting securities of any
                  entity or otherwise having the ability to influence and direct
                  the polices and direction of an entity.

         19.0     COOPERATION; SPONSOR DELAYS; DISCLOSURE OF HAZARDS. Sponsor
                  shall forward to Quintiles in a timely manner all documents,
                  materials and information in Sponsor's possession or control
                  necessary for Quintiles to conduct the Services. Quintiles
                  shall not be liable to Sponsor nor be deemed to have breached
                  this Agreement for errors, delays or other consequences
                  arising from Sponsor's failure to timely provide documents,
                  materials or information or to otherwise cooperate with
                  Quintiles in order for Quintiles to timely and properly
                  perform its obligations. If Sponsor delays a project from its
                  agreed starting date or suspends

                                       9
<PAGE>

                  performance of the project for a period longer than 10 working
                  days, then either: a) Sponsor will pay the standard daily rate
                  of the Quintiles' personnel assigned to the project, based on
                  the percentage of their time allocated to the project, for the
                  period of the delay beginning on the eleventh working day, in
                  order to keep the current team members; or, b) Quintiles may
                  re-allocate the personnel at its discretion, and Sponsor will
                  pay the costs of re-training new personnel. In addition,
                  Sponsor will pay all non-cancelable costs and expenses
                  incurred by Quintiles due to the delay and will adjust all
                  timelines to reflect additional time required due to the
                  delay. In order for Quintiles to comply with the Health and
                  Safety at Work Act 1974 and any applicable regulation made
                  pursuant thereto it is a condition of Quintiles providing the
                  contract Services that Sponsor shall provide Quintiles with
                  all information available to it regarding known or potential
                  hazards associated with the use of any substances supplied to
                  Quintiles by Sponsor, and Sponsor shall comply with all
                  current legislation and regulations concerning the shipment of
                  substances by the land, sea or air.

         20.0     PERFORMANCE. Quintiles shall use reasonable efforts to perform
                  the Service in accordance with the terms and conditions of
                  this Agreement, and promptly report in writing to Sponsor upon
                  completion of each task listed in the Table of
                  Responsibilities of Attachment 1 of this Agreement.

         21.0     FORCE MAJEURE. In the event either party shall be delayed or
                  hindered in or prevented from the performance of any act
                  required hereunder by reasons of strike, lockouts, labor
                  troubles, inability to procure materials or services, failure
                  of power or restrictive government or judicial orders, or
                  decrees, riots, insurrection, war, Acts of God, inclement
                  weather or other reason or cause beyond that party's control,
                  then performance of such act (except for the payment of money

                  owed) shall be excused for the period of such delay.

         22.0     NOTICES AND DELIVERIES. Any notice required or permitted to be
                  given hereunder by either party hereunder shall be in writing
                  and shall be deemed given on the date received if delivered
                  personally or by a reputable overnight delivery service, or
                  three (3) days after the date postmarked if sent by registered
                  or certified mail, return receipt requested, postage prepaid
                  to the following addresses:

                  If to Quintiles: Hagit Nof

                  If to Sponsor: Dr. Shalom Z. Hirschman

                  If Sponsor delivers, ships, or mails materials or documents to
                  Quintiles, or requests that Quintiles deliver, ship, or mail
                  materials or documents to Sponsor or to third parties, then
                  the expense and risk of loss for such deliveries, shipments,
                  or mailings shall be borne by Sponsor. Quintiles disclaims any
                  liability for the actions or omissions of third-party delivery
                  services or carriers.

         23.0     INSURANCE. During the term of this Agreement to cover its
                  obligations hereunder, each party shall maintain insurance
                  coverage with a reputable insurance company. The insured party
                  will, upon specific written request, provide evidence in the
                  form

                                       10
<PAGE>

                  of a certificate of insurance that the other party is an
                  additional insured on the insured party's policy/policies as
                  their interests may appear.

         24.0     FOREIGN CURRENCY EXCHANGE. The currency to be used to invoice
                  and for payment shall be set forth in the Budget attached
                  hereto as part of Attachment 1 (the "Budget"). If Quintiles is
                  to perform services whereby it earns fees or incurs expenses
                  in a currency(ies) differing from the invoice and payment
                  currency (hereafter, "foreign currency(ies)"), the initial
                  foreign currency exchange rates used as a basis for
                  calculating the Budget shall be referred to as the "Budgeted
                  Rate". For this Agreement, the Budgeted Rate is as follows:
                  [INSERT RATE]. In addition the Budget will state for each
                  currency its percentage of the total fees (and expenses, if
                  applicable), after its conversion into the invoice and payment
                  currency, which will be applied to all invoices. If a currency
                  referenced within the Budget is replaced by the Euro or
                  otherwise ceases to become legal tender, the applicable
                  replacement currency will be substituted for such currency for
                  purposes of this provision at an established conversion rate.

                  Each end of month, an average actual foreign exchange rate
                  will be computed for each foreign currency exchange rate
                  indicated in the Budget. The actual foreign currency exchange
                  rate will be calculated based upon the foreign currency
                  exchange spot rates published at WWW.OANDA.COM on the last
                  business Friday of each month (the "Current Rates").

         25.0     INFLATION ADJUSTMENTS. If Services are provided by Quintiles
                  over multiple calendar years, Quintiles may increase its fees
                  at the beginning of each calendar year to reflect increases in
                  Quintiles' business costs on a prospective basis only.
                  Quintiles' overall costs may be increased for the next twelve
                  (12) month period using the greater of four percent (4%) or
                  the average percentage change in the wages/earnings survey as
                  published in the Economist (or as reported at
                  WWW.ECONOMIST.COM or the equivalent inflation index of the
                  country where services are performed, over the preceding
                  twelve (12) month period.

         26.0     BINDING AGREEMENT AND ASSIGNMENT. This Agreement shall be
                  binding upon and inure to the benefit of Sponsor and Quintiles
                  and their respective successors and permitted assigns. Except
                  as stated above in Section 18, neither party may assign any of
                  its rights or obligations under this Agreement to any party
                  without the express, written consent of the other party.

         27.0     CHOICE OF LAW, WAIVER AND ENFORCEABILITY. This Agreement shall
                  be construed, governed, interpreted, and applied in accordance
                  with the laws of Israel exclusive of its conflicts of law
                  provisions. The failure to enforce any right or provision
                  herein shall not constitute a waiver of that right or
                  provision. Any waiver of a breach of a provision shall not
                  constitute a waiver of any subsequent breach of that
                  provision. If any provisions herein are found to be
                  unenforceable on the grounds that they are overly broad or in
                  conflict with applicable laws, it is the intent of the parties
                  that such provisions be replaced, reformed or narrowed so that

                                       11
<PAGE>

                  their original business purpose can be accomplished to the
                  extent permitted by law, and that the remaining provisions
                  shall not in any way be affected or impaired thereby.

         28.0     SURVIVAL. The rights and obligations of Sponsor and Quintiles,
                  which by intent or meaning have validity beyond such
                  termination (including, but not limited to, rights with
                  respect to inventions, confidentiality, discoveries and
                  improvements, indemnification and liability limitations) shall
                  survive the termination of this Agreement.

         29.0     ARBITRATION. Any controversy or claim arising out of or
                  relating to this Agreement or the breach thereof shall be
                  settled by arbitration administered by the International
                  Chamber of Commerce ("ICC") under its International Rules of
                  Arbitration, and judgment on the award rendered by the
                  arbitrator shall be binding and may be entered in any court
                  having jurisdiction thereof. Such arbitration shall be filed
                  and conducted at the office of the ICC closest to the
                  Quintiles office having responsibility for the Project, and
                  shall be conducted in English by one arbitrator mutually
                  acceptable to the parties selected in accordance with ICC
                  Rules.

         30.0     ENTIRE AGREEMENT, HEADINGS AND MODIFICATION. This Agreement
                  contains the entire understandings of the parties with respect
                  to the subject matter herein, and supersedes all previous
                  agreements (oral and written), negotiations and discussions.
                  The descriptive headings of the sections of this Agreement are
                  inserted for convenience only and shall not control or affect
                  the meaning or construction of any provision hereof. Any
                  modifications to the provisions herein must be in writing and
                  signed by the parties.

                                       12
<PAGE>

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto
through their duly authorized officers on the date(s) set forth below.

                  ACKNOWLEDGED, ACCEPTED AND AGREED TO:

                                          [INSERT SPONSOR'S FULL LEGAL NAME]
Quintiles Israel Ltd.                     Advanced Viral Research Corp.
ID - 051256654

By: /s/ EHUD SHOSHANI                     By: /s/ SHALOM Z. HIRSCHMAN, M.D.
    --------------------------------          --------------------------------

Print Name:  EHUD SHOSHANI                Print Name:  SHALOM Z. HIRSCHMAN
            ------------------------                  ------------------------

Title:  GENERAL MANAGER                   Title:  PRESIDENT AND CEO
       -----------------------------             -----------------------------

Date:  OCTOBER 8, 2002                    Date:  OCTOBER 4, 2002
      ------------------------------            ------------------------------

LIST OF ATTACHMENTS

ATTACHMENT 1 - SCOPE OF WORK (FINAL PROPOSAL)

ATTACHMENT 2 - PAYMENT SCHEDULE

ATTACHMENT 3 - QUINTILES ICH-GCP COMPLIANCE

                                       13

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