Document:

EXHIBIT 10.23

                                OPTION AGREEMENT
                                ----------------

         This  AGREEMENT  is made this 8th day of  August,  2000,  between  Duke
University  (hereinafter  referred to as  "University"),  a university having an
office at Durham, North Carolina, and Celsion Corporation  (hereinafter referred
to as "Celsion"), a company having an office at Columbia, MD.

                                   WITNESSETH:

         WHEREAS, University is the owner of certain Patent Rights and Technical
Data hereinafter defined, relating to compounds, assays, cell lines, and methods
useful in  development  of agents  useful in gene  therapy  of cancer  and other
diseases  referred  to  collectively  as  ("Invention")  and  defined  in detail
hereinafter; and

         WHEREAS,  Celsion  wishes to obtain an option  for a license  under the
Patent  Rights  and  Technical  Data,  and  University  is  willing to make such
disclosure  and to grant such option and license  upon the terms and  conditions
hereinafter set forth:

         NOW, THEREFORE,  in consideration of the mutual agreements  hereinafter
set forth, the parties hereto do hereby mutually agree as follows:

1.                Definitions:  As used in this  Agreement,  the following terms
                  shall have the following meanings:

(a)               "Patent Rights" shall mean any and all patents and any and all
                  rights,   title  and  interest  in  applications  for  patents
                  relating to Invention owned, licensed or otherwise acquired by
                  University  during the term of this  Agreement  throughout the
                  world,  including all patents and reissue  patents  issuing on
                  said  patent  applications  and  any  extensions,   divisions,
                  continuations or continuations-in-part thereof.

(b)               "Technical  Data"  shall mean all  information,  know-how  and
                  inventions   (including,    but   not   limited   to,   patent
                  applications)  disclosed by University to Celsion  pursuant to
                  this Agreement and relating to the Invention.

(c)               "Invention" shall include all Patent Rights and Technical Data
                  disclosed  to  University  in  connection  with the  Office of
                  Science &  Technology  Invention  Disclosures  File [OST File]
                  1519, "Selective express of genes in cancer cells".  Invention
                  shall include  additional  Patent  Rights and  Technical  Data
                  related to these OST Files that are  developed  by  University
                  during the term of this Agreement.

(d)               "Effective Date" shall mean 8 August, 2000.

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(e)              "Option Period" shall mean a six (6) month period beginning on
                  the Effective Date.

2.                Disclosure and Evaluation:
                   ---------------------------

(a)               During the Option  Period,  University  shall provide  Celsion
                  with a copy of each U.S.  or foreign  Patent and each U.S.  or
                  foreign  Patent  Application  filed  on  the  Invention  and a
                  written  disclosure of such  Technical  Data then possessed by
                  University   relating  to  or   relevant  to  the   Invention.
                  University shall also disclose all relevant  experimental data
                  to Celsion and disclose any  relationships  it, or to the best
                  of its knowledge,  the  researchers  involved in the Invention
                  have with any other  persons  relating to the Invention or any
                  related   technologies.   Celsion   shall,   based  upon  such
                  disclosure,  evaluate the  technical,  economic and commercial
                  advantages, in Celsion's option, of said Technical Data during
                  the Option Period.

(b)               University   shall  also   furnish   to   Celsion   reasonable
                  opportunity to confer with University's  research personnel on
                  the   Invention   and   Technical   Data.   Celsion  will  pay
                  consultation  fees and expenses to the  inventors in the event
                  that travel to Celsion facilities is required.

(c)               From time to time during the Option Period,  University  shall
                  augment its written  disclosure with any additional  Technical
                  Data to assure that Celsion has the most current information.

3.                Option:  University  hereby  grants to  Celsion,  and  Celsion
                  hereby  accepts,  a  non-assignable  Option to negotiate  with
                  University to obtain a worldwide,  exclusive license under the
                  Patent   Rights  and  Technical   Data,   said  Option  to  be
                  exercisable  by Celsion at any time  during the Option  Period
                  upon written notice to  University.  In the event that Celsion
                  shall exercise said Option,  the parties agree to negotiate in
                  good faith towards license terms.

4.                Consideration:
                  -------------

(a)               As  consideration  for the Option granted Celsion in Article 2
                  hereof,  Celsion  hereby  agrees  to  reimburse  all  expenses
                  incurred by University during the Option Period in the pursuit
                  of a legal opinion regarding patent  protection  available for
                  the  Invention.  Celsion  shall not be  obligated to reimburse
                  University  for such  expenses in excess of two thousand  five
                  hundred dollars [$2,500] during the Option Period.  University
                  shall provide Celsion with a copy of said legal opinion.

(b)               Celsion shall  reimburse  University for said patent  expenses
                  relating to a legal opinion  concerning  patentability  of the
                  invention  within  thirty  (30)  days  of  being  invoiced  by
                  University for such expenses.

(c)               Any amount paid under this  Article 3 shall not be  refundable
                  under any circumstances.

                                       62
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5.                Termination:
                  -----------

(a)               If the Option  granted  by  University  pursuant  to Article 4
                  hereof is not  exercised  by  Celsion,  this  Agreement  shall
                  terminate upon the expiration of the Option Period.

(b)               Celsion  may  terminate  the  Option  Period  at any  time  by
                  notifying  University  of its  decision  not to exercise  said
                  Option.

(c)               In the event this  Agreement is terminated in accordance  with
                  the immediately preceding  paragraphs,  Celsion shall promptly
                  return to University any and all Technical Data.

6.                Default:
                  -------

(a)               If the Option  granted  by  University  pursuant  to Article 4
                  hereof is not  exercised  by  Celsion,  this  Agreement  shall
                  terminate upon the expiration of the Option Period.

(b)               Celsion  may  terminate  the  Option  Period  at any  time  by
                  notifying  University  of its  decision  not to exercise  said
                  Option.

(c)               In the event this  Agreement is terminated in accordance  with
                  the immediately preceding  paragraphs,  Celsion shall promptly
                  return to University any and all Technical Data.

7.                Default:  If  Celsion  shall fail to perform or fulfill at the
                  time and in the  manner  herein  provided  any  obligation  or
                  condition  required to be  performed  or  fulfilled by Celsion
                  hereunder,  and if Celsion  shall fail to remedy such  default
                  within  thirty (30) days after  written  notice  thereof  from
                  University,  University shall have the right to terminate this
                  Agreement by written notice of termination to Celsion given at
                  any time within thirty (30) days  thereafter.  Any termination
                  of  this  Agreement  pursuant  to  this  Article  shall  be in
                  addition to, and shall not be exclusive of or prejudicial  to,
                  any  other  rights  or  remedies  at  law  or in  equity  that
                  University may have on account of the default of Celsion.

8.                Governing  Law:  This  Agreement  shall be construed as having
                  been entered into in the State of North Carolina.

9.                Non-Assignability: Any assignment by Celsion of this Agreement
                  or of any of the rights or licenses  granted to it  hereunder,
                  without  the  written  consent of  University,  shall be void;
                  provided,   however,   that  nothing  contained  herein  shall
                  restrict the transfer of this  Agreement as a part of a merger
                  or corporate acquisition to which Celsion may be a party.

10.               Notices:  It  shall  be a  sufficient  giving  of any  notice,
                  request, report, statement,  disclosure or other communication
                  hereunder,  if the party giving the same shall  deposit a copy
                  thereof in the Post Office in certified mail, postage prepaid,
                  addressed  to the other part at its  address  hereinafter  set
                  forth or at such other  address as the other  party shall have
                  theretofore in writing designated:

                                       63

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    Duke University                            Celsion
    ------------------------                   ------------------------------
    University Administrator                   Dr. Augustine Cheung, Chairman
    Duke University                            Celsion Corporation
    Office of Science and Technology           10220-1 Old Columbia Road
    Box 90083/Room 234 North Building          Columbia, MD  21046-1705
    Durham, NC  27708

         The  date of  giving  any  such  notice,  request,  report,  statement,
         disclosure or other  communication,  and the date of making any payment
         hereunder  required  (provided such payment is received),  shall be the
         U.S.  postmark of such  envelope if marked or actual date of receipt if
         delivered otherwise.

11.      Indemnification:  Celsion agrees to indemnify University, its employees
         and officers and to hold such parties harmless from any action,  claim,
         or  liability,   including  without  limitation  liability  for  death,
         personal  injury,  or property  damage,  arising directly or indirectly
         from Celsion's possession,  testing,  screening,  distribution or other
         use of Patent  Rights and/or  Technical  Data or  distribution  of test
         reports,  data, and other information relating to said items; provided,
         however,  this indemnification shall not apply if such action, claim or
         liability  is  directly  and  principally  caused  by or the  result of
         negligence or the intentional acts of University. It is understood that
         indemnification  of  University  by  licensee  will be  included in any
         subsequent license agreements.

12.      Non-Commercial  Use:  Celsion  promises to allow use of  Invention  and
         Technical   Data   only  by  its   authorized   personnel   (including,
         consultants, advisors, experts, attorneys and accountants) and only for
         the  purpose  of  ascertaining  its  interest  in  pursuing   licensing
         negotiations with University, and will not employ the Invention for any
         gain prior to exercising its Option hereunder. Should Celsion market or
         in any way make or use  Invention in a way other than to ascertain  its
         interest in pursuing licensing negotiations, Celsion shall be liable to
         University in damages.

13.      Confidentiality:  Celsion agrees to accept samples of the Invention and
         Technical  Data  and/or   information   concerning  the  Invention  and
         Technical Data on a confidentiality  of the Invention and any data that
         is generated  concerning it as it uses to protect its own  confidential
         information,  and shall limit  exposure of Invention and Technical Data
         to   those  of  its   personnel,   consultants,   experts,   attorneys,
         accountants,  potential  investors  and  personnel  of  its  affiliated
         companies who have an actual need to know and who have an obligation to
         protect the  confidentiality  of such information,  Celsion agrees that

                                       64
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         Invention and all confidential information about Invention received and
         generated  under this  Agreement  shall be maintained in confidence for
         the  duration  of this  Agreement  and for three  (3) years  thereafter
         regardless of the manner of termination,  and further agrees not to use
         such confidential  information for any purpose other than to assess its
         interest  in  obtaining  a  license   hereunder.   The   disclosure  of
         confidential  information  hereunder  shall not  result in any right or
         license  under any patent or know-how  being  granted to  Celsion.  All
         written documents containing  confidential  information,  together with
         copies of excerpts thereof, shall promptly be returned to University by
         Celsion upon request.  Notwithstanding anything to the contrary herein,
         any  information,  including  information  that may be considered to be
         Technical Data or part of the Invention,  that is or becomes  generally
         known to the public  through no wrongful  acts of Celsion  shall not be
         deemed to be  confidential  or proprietary  and shall not be subject to
         the  confidentiality,  use or other restrictions or obligations imposed
         under this Agreement,  including,  but not limited to those obligations
         set  forth  in this  paragraph  "Confidentiality"  and  the  proceeding
         paragraph "Non-Commercial Use".

14.      Transfer:  It is expressly  agreed that neither  Celsion nor University
         transfers by operation of this  Agreement  any rights  either party now
         has or hereafter acquires in the Invention.

15.      Use of  University  Name: It is agreed that in no  circumstances  shall
         Celsion  use  the  name  of   University   or  its   employees  in  any
         advertisement,  press  release,  or  publicity  with  reference to this
         Agreement,   without  prior  written  approval  of  University.  It  is
         anticipated  and  agreed  to  that  Celsion  may  use  the  name of the
         University  in  discussions  with  potential   investors  and  partners
         interested in the Invention.

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the date and year firs written above.

DUKE UNIVERSITY:       By:
                       Robert Taber, Director, Office of Science & Technology

CELSION:               By:
                       Augustine Cheung, Chairman

                                       65EXHIBIT 10.24

                                SERVICE AGREEMENT
                                -----------------

This Agreement,  made and entered into this 20th day of September 2000,  between
the   British   Columbia   Cancer   Agency,   Division   of  Medical   Oncology,
Investigational  Drug Section's ProPharma  Pharmaceutical  Clean Room (hereafter
ProPharma),  and  Celsion  Corp.,  having its  principal  place of  business  at
10220-Suite 1, Old Columbus Road,  Columbia,  MD (hereafter  Celsion)  witnessed
that:

WHEREAS,  each  party  desires  to enter into this  Agreement  for the  benefits
reasonably expected to be gained therefrom;

1.       ProPharma  will provide the service as  described  in the  statement of
         work budget  which is attached to this  agreement  as APPENDIX A, under
         the direction of the Division of Medical Oncology BCCA.

2.       CELSION  agrees to pay  ProPharma for the  performance  of the work set
         forth in APPENDIX A provided that such costs will be in accord with the
         budget  attached in APPENDIX A and  provided  that  CELSION will not be
         obligated  to pay  ProPharma  any  sums in  excess  of $ #  (US$),  not
         including  specified raw material costs and stability  monitoring costs
         nor will  ProPharma  be  obligated to incur costs in excess of the said
         sum without the written consent of both parties.  It is agreed that the
         amount shown in the respective budget categories are estimates and that
         changes  from item to item  will be  acceptable.  CELSION  will make an
         initial payment of $ # ($ # for GMP implementation,  $ # for1/2of batch
         production  costs and $ # for assay  qualification)  upon  receipt of a
         fully  executed  copy of the  agreement  and CELSION  will make a final
         payment of $ # plus additional raw material and other incidental direct
         costs for items such as shipping, requested testing, etc. (e.g. lipids)
         upon ProPharma competing the manufacturing  production.  CELSION agrees
         to make the final  payment  within  thirty days of receipt of the final
         invoice providing that ProPharma has delivered the product manufactured
         according  to GMP and all test records  including,  but not limited to,
         the following:

2.1.   Batch  Production  Records  (BPR)  with all the data,  printouts,  etc.
       specified by the BPR.
2.2.   All test data.
2.3.   Raw material receiving and disposition records.
2.4.   Sterilization records for equipment and supplies, stoppers, seals, vials.
2.5.   Cleaning records for equipment,  materials,  supplies, stoppers, vials,
       seals and clean rooms.
2.6.   Label manufacturing, testing, and release records.

     ProPharma  reserves the right to  discontinue  the work if CELSION fails to
     make payments tendered within the time herein specified.

                                       66

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3.       If the number of final product vials  delivered to CELSION by ProPharma
         falls  below  # % of  theoretical  batch  yield  (taking  into  account
         processing  and dead volume  losses) and the low yield is determined to
         be due to the  performance  of ProPharma  personnel,  the final payment
         will be  adjusted  by  dividing  the number of vials  delivered  by the
         number of vials representing # % theoretical yield and multiplying this
         factor times $ # or $ # for liposomes and alkalinizer, respectively.

4.       CELSION  will provide  materials as described in Appendix B.  ProPharma
         agrees  not to use nor permit  the use of these  materials  for its own
         purposes or for any other party through ProPharma.  ProPharma will take
         all  reasonable  steps  to  ensure  reasonable  confidentiality  of the
         documentation  produced  and proper  handling  and  containment  of the
         materials  supplied  in  accordance  with good  manufacturing  practice
         (GMP).  Any materials or equipment  purchased by CELSION that is in the
         possession of ProPharma will be returned to CELSION upon termination of
         the agreement.

5.       Potential   CELSION   participation  in  Batch   Production   Services.
         Representatives  of  CELSION  may  attend at the  ProPharam  clean room
         facility under the  supervision of a qualified  clean room  technician,
         GMP  facility  manager  or clean  room  director  to observe or perform
         processes involved in batch production activities. any such individuals
         will only be admitted to the clean room facility after having completed
         such training and having  performed  such other  formalities  as may be
         required by ProPharma pursuant to their Standard Operating  Procedures.
         any such individuals shall at all times be subject to the direction and
         control of ProPharma  regarding clean room occupation  operations while
         in attendance at the clean room facility. Any CELSION equipment brought
         into the clean room  facility  must be  pre-approved  by ProPharma  and
         shall at all times remain the property and responsibility of CELSION.

6.       Indemnity  by  CELSION.  CELSION  shall  indemnify  and  save  harmless
         ProPharma  and  the BC  Cancer  Agency  and  its  directors,  officers,
         employees,  agents and invitees  (collectively the "Indemnities")  from
         and against any and all losses, costs, liabilities,  expenses,  claims,
         damages, actions, causes of action and obligations that the Indemnities
         or any of them  may  sustain,  suffer,  incur  or be put to at any time
         either before or after the expiration or termination of this agreement,
         which arise out of, relate to or are caused directly or indirectly by:

a.       the very presence of CELSION raw materials or final batched  product at
         the clean  room  facility  and  related  laboratories  (aside  from the
         services performed hereunder on such product);
b.       the presence and activity of any CELSION  representatives  at the clean
         room facility;
c.       the presence or  operation  of any CELSION  equipment at the clean room
         facility; and
d.       the  transportation,  distribution  or use of any final batched product
         after it has been accepted by and becomes under the control of CELSION.

except that CELSION shall not have any obligations  hereunder arising out of the
negligence, misconduct or reckless acts or omissions of ProPharma or its agents,
employees or contractors.

                                       67
<PAGE>

7.       Limited  Warranties.  CELSION raw  materials  and final  batch  product
         remain at all time the  property  of  CELSION  and  ProPharma  makes no
         representations  or warranties  whatsoever either expressed or implied,
         oral or written, in fact or by operation of law, concerning the CELSION
         raw materials, the final batched product or its fitness for use (either
         before or after the performance of the services).  ProPharma convenants
         to perform the  services  specified  in Schedule A and to report on the
         results of those services  (together with such quality  testing results
         specified in Schedule B).  ProPharma shall have no  responsibility  for
         determining  whether  the  services  contracted  for  will or will  not
         achieve  any  intended  compliance,  result or  purpose  on the part of
         CELSION  except for those  responsibilities  specified  in  Appendix A.
         Under no  circumstances  will  ProPharma be responsible to CELSION with
         respect to any indirect,  economic or consequential loss or damage. The
         performance of the services  hereunder  shall not be interpreted in any
         manner as any approval of any product or protocal design.

8.       Batching  and test  results from work  performed  under this  Agreement
         shall be delivered by ProPharma to CELSION upon completion of the batch
         production.  The  documentation  will  become the  property of CELSION:
         however,  ProPharma  shall  have the right to retain  and use copies of
         said documentation as required for GMP compliance.

9.       This  agreement   constitutes  the  entire  understanding  between  the
         parties.   No  other  terms  and   conditions,   be  they   consistent,
         inconsistent, or additional to those contained herein, shall be binding
         upon  ProPharma,  unless and until such terms and conditions  have been
         specifically accepted in writing by ProPharma.

10.      Arbitration. IN the event of any controversy or claim arising out of or
         relating to any  provision of this  Agreement,  or the breach  thereof,
         CELSION and ProPharma  shall attempt to settle such conflicts  amicably
         between themselves. Any conflict that the parties are unable to resolve
         shall  be  submitted  to   arbitration   pursuant  to  the   Commercial
         Arbitration Act (British Columbia).  Submission to arbitration shall be
         to a single  independent  arbitrator  appointed by agreement of CELSION
         and  ProPharma  within ten days after  written  notice by either one of
         them to the other requesting the appointment of an arbitrator,  failing
         which,  the  arbitrator  may be appointed in the manner  provided under
         section 17 of the Commercial  Arbitration Act (British  Columbia).  The
         arbitrator agreed to or appointed shall have the appropriate  technical
         expertise to consider and make a determination in respect of the issues
         submitted to arbitration.  the arbitration shall take place in the city
         of Vancouver,  British Columbia.  Each party will bear its own costs of
         the  arbitration.  The costs of the arbitrator and related costs of the
         arbitration shall be apportioned  equally between CELSION and ProPharma
         and determined by the arbitrator. The decisions of the arbitrator shall
         be final and binding upon the parties.

11.      Notice  is  sufficiently  given  if  it is  mailed,  postage  paid  and
         registered, addressed:

a.                in the case of ProPharma, to
                  Dr. Lawrence D. Mayer
                  Director, ProPharma Pharmaceutical Clean Room
                  British Columbia Cancer Agency
                  600 West 10th Avenue

                  Vancouver,  BC V5Z 4E6 Tel (604) 877-6000 local 3153 FAX (604)
                  877-6011

                                       68
<PAGE>

b.                and, in the case of CELSION, to
                  Dr. Augustine Cheung
                  Celsion Corp.
                  10220-Suite 1
                  Old Columbia Road
                  Columbia, MD  21046-1705
                  Tel:  410-290-5390
                  Fax:  410-290-5394

12.      This Agreement  shall be governed and construed in accordance  with the
         laws of British Columbia.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by those duly authorized officers this day and year first above written.

Dr. Lawrence Mayer                                   Dr. Augustine Cheung
BCCA-ProPharma Pharmaceutical                        Chairman, Celsion Corp.
Clean Room

                                       69

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                                   APPENDIX A

ProPharma Pharmaceutical Clean Room Batch Production Activities/Cost Analysis

         Production of Lyso-Thermosensitive Liposomes and Alkalinizer

1. Assist with preparation of Master  Production and Control Records:  ProPharma
personnel  will  assist  PhotoVision  in the  preparation  of master  production
records  required for GMP  compliance.  These  documents may include (but not be
limited to)  Quantitative  Formula,  Raw  Materials,  Supplies and Final Product
Specifications and Master Batch Records.

2.  Preparation  of batch  records:  Batch  production  records  will be drafted
according  to standard  format  utilized by  ProPharma.  the batch  records will
contain  information on the quantitative  formula;  raw materials,  supplies and
equipment used for  production;  batching  process and in process  tests;  batch
reconciliation.  Batch records will be reviewed by the Quality Assurance Officer
of the BC Cancer Agency Investigational Drug Program.

3. Qualify vial,  stopper and crimp  supplies:  Non-destructive  measurements of
vials,  stoppers and crimp seals to be used for batch production will be made on
10% of all supply lots  delivered to ProPharma and checked for  compliance  with
supplier specifications.

4. Maintain materials and supply inventory:  All materials and supplies used for
the batch production will be handled through the Inventory Control system of the
Investigational  Drug  Program at the BC Cancer  Agency in  compliance  with GMP
regulations   regarding   quarantine,   release,  use,  storage  conditions  and
associated documentation.

5. Maintenance of clean room: ProPharma personnel will ensure that all cleaning,
preparation  and  monitoring  of the  pharmaceutical  clean room is performed in
accordance  with GMP  guidelines  and that the clean room  facility is operating
within design specifications.

6. Preparation for batch production:  ProPharma personnel will perform cleaning,
sterilization  and  depyrogenation  for all  equipment  and supplies used in the
batch production.  These activities will be documented and the documents will be
attached to the batch records.

7. Batch  production:  For GMP  batches of  Lyso-thermosensitive  liposomes  and
Sodium Carbonate  alkalinizer,  ProPharma will provide all conventional batching
equipment and will ensure that the batch is produced under conditions  complaint
with GMP  regulations for the preparation of sterile  parenteral  products.  All
necessary documents will also be maintained for GMP compliance.

8. Visual  inspection and vial pulls:  Vials will be 100% visually  inspected by
ProPharma  personnel in compliance  with GMP regulations and will be verified by
the QA officer of the BC Cancer Agency  Investigational  Drug Program. The vials
required for specification testing stability testing and QA retain will be taken
at this time.
                                       70
<PAGE>

9.   Labeling of vials:  Labels for the vials will be  provided  by PhotoVision.
Labels will be 100% inspected and placed onto vials.

10.  Qualification  of specification  assays:  Assays to be utilized to test the
final products for compliance with  specifications will be adapted and qualified
for  suitability  with the  products to be  manufactured.  Basic  validation  of
specific assays such as lipid concentration and percent  doxorubicin  entrapment
will be performed as necessary. Bacteriostasis and fungistasis validation of USP
sterility tests will be performed at an external contract microbiology lab.

11. QC testing for release specifications: Liposome and alkalinizer batches will
be tested for compliance with specifications such as lipid content, pH, liposome
size,  osmolality,  and  appearance.  In addition,  percent  entrapment  will be
evaluated for the individual  components  constituted with doxorubicin according
to standard  procedures.  Analysis report  summaries will be provided to Celsion
with notation of results in relationship to specifications.

12. Stability  monitoring of GMP batches:  Liposome and alkalinizer batches will
be  tested  for  compliance  with  specifications  during  extended  storage  at
4(degree)C. Timepoints will be according to GMP recommendations for establishing
shelf life, namely 3, 6, 9, 12, 18 and 24 months. Analysis report summaries will
be  provided  to  Celsion   with   notation  of  results  in   relationship   to
specifications.

                                       71
<PAGE>

ACTIVITY/COST  ANALYSIS FOR GMP FINAL DRUG PRODUCT PRODUCTION OF THERMOSENSITIVE
LIPOSOMES AND ALKALINZATION AGENT

         ACTIVITY                                                    COST (US$)
--------------------------------------------------------------------------------
                  GMP IMPLEMENTATION PHASE

1.  Master Production and Control Records (Incl. QC specs.)            $   #
2.  Batch Record preparation (Master and Production)                   $   #
3.  Raw Material and Packaging Sourcing and spec. development          $   #
4.  Raw Material Qualification                                         $   #
5.  Packaging Qualification                                            $   #
         Sub-Total for GMP Implementation                              $   #

                  GMP LIPOSOME BATCH PRODUCTION PHASE

1.  Materials and supplies (not incl. lipids):                          $   #
2.  Preparation for and production of batch (Inc. QA):                  $   #
3.  Vial inspection and pulls (incl. QA):                               $   #
4.  Vial labeling (inc. QA)                                             $   #
         Sub-Total for GMP Production Phase                             $   #

                  GMP ALKANIZER BATCH PRODUCTION PHASE

5.  Materials and supplies:                                             $   #
6.  Preparation for and production of batch (Inc. QA):                  $   #
7.  Vial inspection and pulls (inc. QA):                                $   #
8.  Vial labeling (incl. QA)                                            $   #
         Sub-Total for GMP Production Phase                             $   #

                           QC ANALYTICAL ACTIVITIES

1.  Qualification of all QC spec. assays (incl. trapping efficiency):   $   # *
2.  QC testing for release of GMP batches (incl. USP sterility + pyro)  $   #
3.  Stability monitoring of GMP batches (3,6,9,12,18,24 months)         $   #
         timepoint

*Does not include direct costs for sterility and  pyrogenicity  validation (cost
approx. $ * )

#  Confidential  portions  have  been  omitted  and  filed  separately  with the
Commission.

                                       72
<PAGE>

                                   APPENDIX B

                           ADDITIONAL RESPONSIBILITIES

1.  Addition  activities  such as outside  identity  testing  of raw  materials,
contracted  microbiological  monitoring  and shipping  costs will be billed at a
rate of direct costs +25% processing and handling fee. Lipids  purchased for the
liposome  batch will be billed at direct cost plus 15%  processing  and handling
fee.

2. Results from QC analyses either for release or stability  monitoring purposes
will be  reviewed  by the IDP QA  unit.  The  results  will  be  summarized  and
presented in comparison to the product  specifications.  The IDP QC Officer will
indicate whether to the best of our understanding whether the results are within
acceptance criteria of the specifications.  However, Celsion will be responsible
for  establishing  whether the batches  should be rejected or released for their
intended use.

3. The IDP focuses on production and testing of GMP supplies  intended for early
stage Phase I and II) clinical  trials,  as well as  preclinical  and  stability
evaluation.  The IDP will not be responsible for aspects of product,  process or
equipment  validation  that may be required for the use of batches in late stage
clinical trials  (pivotal Phase II and beyond).  The site reference file for the
IDP manufacturing and QC facility and procedures will be forwarded upon approval
of this  agreement  to  provide  details  on the  procedures  in  place  for GMP
compliance at the IDP.

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