Document:

PROMISSORY NOTE
 

 

	
            $ 92,648
 	
            
                                          
           
             
          December 29, 2005
 

 

VALUE RECEIVED, the undersigned, eTwine, Inc., a New York corporation whose address is 366 North Broadway, Suite 410, Jericho, New York 11573 (“Maker”) agrees to pay to the order of Darrell Lerner, an individual whose address is 141 Great Neck Rd, Apt 2H, Great Neck, NY 11021 (“Holder”), the principal sum of Ninety-two Thousand Six Hundred Forty Eight and 00/100 ($92,648.00) Dollars with interest at the rate of six (6%) percent. The principal and interest shall be repaid in full on or before December 31, 2008 to be paid in lawful money of the United States at Darrell Lerner 141 Great Neck Rd, Apt 2H, Great Neck, NY 11021 or at such other place as Holder may designate.

 

Upon mutual consent of Holder and Maker, Maker has the right to convert, in part or in total, the amount due and payable under this Note, into shares of Maker’s common stock, par value $.001, at a conversion rate of $.25 per share. At the time of conversion, all rights and obligations under this Note shall immediately cease.

 

Maker hereby waives presentment, demand, notice, protest, the benefit of any homestead exemption law of any state and all other formalities in connection with the delivery, acceptance, performance or enforcement of this Note. Any failure by Holder to exercise any right hereunder shall not be construed as a waiver of the right to exercise the same or any other right at any other time or times. The waiver by Holder of a breach or default of any provision of this Note shall not operate or be construed as a waiver of any subsequent breach or default thereof.

 

If Maker fails to make the payment required hereunder and such failure to pay continues for a fifteen (15) day period after the payment is due, it shall constitute a default under this Note. Upon the occurrence of any default under this Note, Holder shall provide written notice to Maker of such default. If Maker fails to cure such default within ten (10) days after receipt of Holder’s notice, the entire balance of this Note shall be immediately due and payable. In the event that Maker defaults under the terms of this Note, the Holder shall have all rights and remedies available under the law. 

 

This Note shall be binding upon, and inure to the benefit of Maker, Holder and their respective successors and assigns. This Note shall be construed and governed by the laws of the State of New York. The provisions of this Note are severable and the invalidity or unenforceability of any provision shall not alter or impair the remaining provisions of this Note. In the event, that Maker defaults on the terms of this Note, Maker shall pay all legal fees incurred by Holder as a result of such default. 

 

	
            ATTEST:
 	
            ETWINE, INC.
 

 

	
            _______________________________
 	
            /S/  Clifford Lerner 
                          
 

CLIFFORD LERNER

PRESIDENTKBI BIOPHARMA, INC. SERVICES AGREEMENT

This  Services  Agreement  ("Agreement")  dated  March 28, 2006 between DNAprint
Pharmaceuticals,  Inc., a Utah  company ("Client") having its principal place of
business  at  900  Cocoanut  Ave,  Sarasota, FL 34236 and KBI BioPharma, Inc., a
Delaware  company  ("KBI  BioPharma")  having its principal place of business at
1101 Hamlin Road, Durham, North Carolina 27704 (each a "Party", collectively the
"Parties").

Whereas:

Client desires KBI BioPharma to perform services in accordance with the terms of
the  Agreement  and  KBI  BioPharma  desires  to  perform  such  services.

In  consideration of the above statements, which form part of the Agreement, and
other  good and valuable consideration, the sufficiency and receipt of which are
hereby  acknowledged,  the  Parties  hereto  agree  as  follows:

1.     Performance

KBI BioPharma will perform the services (the "Services")detailed in the proposal
                                        ================
set  forth  in Attachment One (the "Proposal") on behalf of Client in accordance
=============================
with  the  Agreement  herein  incorporating  the  Proposal and incorporating the
=     ===             ========================================
Quality  Agreement  (applicableonlyfor  projectswith  cGMP  activities) attached
=                    --------------------------------------------------
hereto  as  Attachment  Two.  In the event of any conflict between the Agreement
and  the  proposal  and/or  scope-of-work,  the Agreement shall control.  In the
event  of  any  conflict  between  the  Proposal  and/or  scope-of-work  and any
applicable  Quality  Agreement,  the  Quality  Agreement  shall  control.

Client  shall support and cooperate with the execution of the services and shall
not  engage  in any act or omission, which may reasonably be expected to prevent
or  delay the successful execution of the Services. Such support and cooperation
                                          ========
shall  include,  but  not  be  limited  to,  informing  KBI  BioPharma of global
regulatory strategy for development and approval of the product(s) to the extent
                                                                  ==============
relevant  to  the  Proposal,  prompt  review and approval of documents requiring
===========================
Client's  signature, timely delivery of methods and materialsand prompt response
to  other  similar  issues.

2.     Compliance  with  Applicable  Government  Regulations

KBI BioPharma will undertake the services in compliance in all material respects
with  applicable  U.S.  Food  and  Drug  Administration  (FDA)  current  Good
Manufacturing  Practice  (cGMP)  and  all statutory and applicable international
regulatory  requirements.

3.     Client  Obligations

Unless  otherwise  agreed  to  by  the  Parties  in  writing,  Client  is solely
responsible  for,  in  each  case  as required for the Proposal and set forth in
                ================================================================
Attachment One: (a) provision of complete and accurate scientific data regarding
    ===========
the  Proposal; (b) provision of all information necessary to effect the reliable
             =
transfer  of  methods  to  KBI  BioPharma;  (c)  provision of specific reagents,
                                         =
reference  standards or other materials necessary for execution of the Proposal;
                                                                               =
(d)  if  applicable,  review  and  approve  in-process and finished product test
results  to  ensure  conformity  of  such  results  with product specifications,
regardless  of  which  party  is  responsible  for finished product release; (e)
                                                                           =
preparation of all submissions to regulatory authorities; and (f) performance of
                                                        =====
other  obligations  of  Client  set  forth  in  the  Proposal.
                                                     ========

4.     Hazardous  Materials

Client warrants to KBI BioPharma that no specific safe handling instructions are
applicable  to  any  substance  or material provided by Client to KBI BioPharma,
except  as disclosed to KBI BioPharma in sufficient time for review and training
by KBI BioPharma prior to delivery.  Where appropriate or required by law Client
shall  provide  a Material Safety Data Sheet and instructions for proper storage
for  all  Client-provided  materials,  finished product and reference standards.

5.     Facility  Visits  and  Audits

Client's  representatives  may  visit  KBI  BioPharma's facilities during normal
business  hours  and  with  prior  written notice to observe the progress of the
Proposal,  provided  that  such  access  does  not compromise cGMP compliance or
safety.  KBI  BioPharma will assist Client in scheduling such visits, which will
be conducted in a manner reasonably required to protect confidentiality of other
   =========================================
clients.
       =
Client  may  conduct one quality assurance audit per calendar year at no cost in
accordance  with  the  provisions  of  the  Quality  Agreement  (if applicable).
Additional  audits  will be invoiced separately on a time and materials basis at
the  then  current  rate  for  such  services.

6.     Regulatory  Inspections

KBI BioPharma will promptly notify Client of any regulatory inspections directly
relating  to  the Proposal in accordance with the terms of the Quality Agreement
(if  applicable)  incorporated herein.  Client accepts reasonable and documented
costs  charged by a regulatory authority for inspections directly related to the
Proposal.

7.     Compensation

KBI  BioPharma  will  invoice Client as set forth in the Proposal.  Payments are
                                                         ========
due  thirty  (30)  days  from  date of invoice.  Late payments are subject to an
interest  charge  of  one and one half percent (1 %) per month.  Failure to bill
for  interest  due  shall  not  be  a  waiver of KBI BioPharma's right to charge
interest.

8.     Taxes

Client  will  pay  any  sales, use, gross receipts, compensating or other taxes,
licenses  or  fees (excluding KBI BioPharma's net income and franchise taxes) to
be  paid  by  KBI  BioPharma  to any tax jurisdiction arising from the Proposal.

9.     Change  Orders

KBI BioPharma may revise the price for the Services as set forth in the Proposal
                                           =====================================
if  (a) Client revises KBI BioPharma's responsibilities, the specifications, the
Proposal  instructions, procedures, assumptions, processes, test protocols, test
methods,  analytical  requirements  or  otherwise requests a modification to the
Proposal,  (b)  Client's  requirements  or  any  Client-provided  information is
   ======
inaccurate  or  incomplete  and  such  inaccuracy  or incompleteness results ina
   ===                      ====================================================
materialincrease  incosts  to  KBI  BioPharma,(c)  necessitated  by  changes  to
   ===========================================
applicable  laws,  rules  or regulations (d) if necessitated by an event outside
   ====
the  control  of  KBI  BioPharma,  including  ,  without  limitation, the events
described  in section 16 (Force Majeure) or(e) for other such reasons set out in
                                         ==
the Proposal.  Client will be notified of such revision via issuance of a Change
    ========
Order  detailing  the  reasons  for  the  price revision and subject to Client's
                                                        ========================
written  consent.
     ===========

10.     Shipment

Unless  otherwise agreed in writing by the parties, all products, raw materials,
samples  components  or  other  materials shipped by KBI BioPharma are delivered
F.O.B.  KBI  BioPharma's  facilities.  KBI  BioPharma shall package for shipment
such  product, raw materials, samples, components or other materials at Client's
expense  (including  insurance) and in accordance with Client's full written and
reasonable  instructions.

11.     Limitations  of  Liability

Notwithstanding  any  other provision in the Proposal, KBI BioPharma's liability
                                             ========
under  the  Proposal,  regardless  of  the cause of action, shall not exceed the
            ========                                        ---------
total  fees  paid  and/or  due  hereunder.  Notwithstanding  the  foregoing, KBI
BioPharma's  liability for losses to Active Pharmaceutical Ingredient, bulk drug
product, intermediates, samples, reagents or other materials provided by Client,
whether  or  not  incorporated  into  finished  product,  shall  not  exceed the
undisputed fair market value thereof, taking into consideration any delay to the
          ======================================================================
Proposal  caused  by  such  loss.
================================

Notwithstanding  anything  herein  to the contrary, UNDER NO CIRCUMSTANCES SHALL
EITHER  PARTY  BE  ENTITLED TO INCIDENTAL, INDIRECT, CONSEQUENTIAL, EXEMPLARY OR
SPECIAL  DAMAGES,  WHETHER  OR  NOT  FORESEEABLE, ARISING IN CONNECTION WITH THE
DEFAULT OR BREACH OF ANY OBLIGATION OF THE OTHER PARTY UNDER THIS AGREEMENT, THE
PROPOSAL,  THE QUALITY AGREEMENT OR ANY APPENDICES OR DOCUMENTS RELATED THERETO,
========                                                                       =
SUBJECT  TO  SECTION  15  HEREOF.
================================

12.     Warranties

The  warranties  set  forth  in the Proposal and the terms and conditions of the
                                    ========     ===                     =======
Agreement  herein are the sole and exclusive warranties made by KBI BioPharma to
   ==============
the  Client  and  there  are no other warranties, representations or guarantees.
EXCEPT  AS  EXPRESSLY  STATED  HEREIN, NEITHER PARTY PROVIDES TO THE OTHER PARTY
HERETO  ANY  WARRANTIES,  EXPRESS  OR  IMPLIED WITH RESPECT TO THE MATERIALS AND
SERVICES  PROVIDED  HEREUNDER,  AND  ALL  SUCH  WARRANTIES,  EXPRESS OR IMPLIED,
INCLUDING  WITHOUT  LIMITATION  ANY  IMPLIED  WARRANTIES  OF  MERCHANTABILITY,
NONINFRINGEMENT  OR  FITNESS  FOR  A  PARTICULAR  PURPOSE  ARE  WAIVED.

13.     Confidentiality

All  information  disclosed  by a party in connection with the Proposal shall be
considered confidential information.  For the duration of the Proposal and for a
period  of  five (5) years thereafter, neither Party shall disclose confidential
information disclosed by the other Party without prior written permission unless
such  disclosure is (i) to an affiliate that is under similar obligation to keep
such  information confidential; (ii) is or becomes publicly available through no
fault  of  the  receiving Party; (iii) is disclosed by a third party entitled to
disclose  it; (iv) is already known to the receiving Party as shown by its prior
written  records;  or  (v)  is  required  to  be  disclosed  by  any  law, rule,
regulation,  order,  decision,  decree, subpoena or other legal process provided
that  the  receiving  Party  shall  give prompt notice thereof to the disclosing
Party  and shall cooperate with the disclosing Party to obtain a confidentiality
     ===========================================================================
order  or  other  similar  protection.
=====================================

14.     Intellectual  Property

All  KBI  BioPharma  Materials,  including without limitation, all improvements,
development,  derivatives or modifications to the KBI BioPharma Materials, shall
be  owned exclusively by KBI BioPharma.  For the purposes hereof, "KBI BioPharma
Materials"  means  all  KBI  BioPharma  proprietary  information,  intellectual
property  and  developments,  including  without limitation, all patents, patent
applications,  know-how,  inventions,  design, concepts, improvements, technical
information,  manuals,  instructions  which  are  owned, licensed or used by KBI
BioPharma  in  developing,  formulating,  manufacturing,  processing, packaging,
analysis  or  testing  of  pharmaceutical  or  diagnostic  products.

All  Client  Materials,  including  without  limitation,  all  improvements,
development,  derivatives  or  modifications  to  the Client Materials, shall be
owned  exclusively  by  the Client.  For the purposes hereof, "Client Materials"
means  all  Client  proprietary  information,  intellectual  property  and
developments,  including  without  limitation, all patents, patent applications,
know-how,  inventions,  design,  concepts,  improvements, technical information,
manuals,  instructions  which  are owned, licensed or used by Client relating to
pharmaceutical  or  diagnostic  products  or  the  development,  formulation,
manufacture,  processing,  packaging,  analysis  or  testing  thereof.

15.     Indemnification

Client  will indemnify and hold harmless KBI BioPharma, its affiliates and their
officers,  directors,  agents,  and  employees against any loss, cost, damage or
expense  (a  "Loss")  from  any  lawsuit,  action,  claim, demand, assessment or
proceeding  brought  by  a third party(a "Claim") arising directly or indirectly
            ==========================
from  or  related  to  the  conduct  of  the  Proposal  as  a result of Client's
                     ===========================================================
negligence,  gross  negligence  or intentional misconduct or inaction (including
         =======================================================================
violation  or  non-performance of this Agreement); provided that if such Loss or
  =======                                       =  --------
Claim  arises in whole or part from KBI BioPharma's negligence, gross negligence
or  intentional misconduct or inaction, then the amount of such loss that Client
shall  indemnify KBI BioPharma for shall be reduced by an amount proportional to
KBI  BioPharma's  responsibilities  for  such  Loss  as determined by a court of
competent  jurisdiction.

KBI  BioPharma will indemnify and hold harmless Client, its affiliates and their
officers,  directors,  agents,  and  employees against any Loss or Claim arising
directly  or  indirectly  from  or  related  to the conduct of the Proposal as a
result of KBI BioPharma's negligence, gross negligence or intentional misconduct
or inaction (including violation or non-performance of this Agreement); provided
                                                                        --------
that  if  such  Loss  or Claim arises in whole or part from Client's negligence,
gross  negligence or intentional misconduct or inaction, then the amount of such
loss that KBI BioPharma shall indemnify Client for shall be reduced by an amount
proportional to Client's responsibilities for such Loss as determined by a court
of  competent  jurisdiction.

16.     Force  Majeure

Neither  party  will  be  liable  for  any  failure  to  perform or for delay in
performance  resulting  from any cause beyond its reasonable control, including,
without  limitation, acts of God, fires, floods, or weather, disease, strikes or
lockouts,  factory  shutdowns,  embargoes,  wars,  hostilities or riots, acts of
terrorism,  shortages  in  transportation,  government  action or power failure,
provided that such failure to perform shall be excused only to the extent of and
during  such  disability.  Any  time  specified  or  estimated for completion of
performance of Servicesfalling due during or subsequent to the occurrence of any
            ===========
such  events shall be automatically extended for a period of ninety (90) days to
recover  from  such  disability.  If  any  part  of the Proposal is invalid as a
result of such disability, KBI BioPharma will, upon written request from Client,
and at Client's sole cost and expense, repeat that part of the Proposal affected
by  the  disability.

17.     Use  and  Disposal

Client represents and warrants to KBI BioPharma that it has legal title and/or a
valid  license  to  materials,  process  patents and other intellectual property
                                                     ===========================
necessary  to  conduct  the Proposal and that KBI BioPharma's performance of the
Proposal  will not violate or infringe on the patents, trademarks, service marks
or copyrights of any third party.  Client further represents and warrants to KBI
BioPharma  that  it  will  hold,  use  and/or  dispose  of Product and materials
provided  by  KBI  BioPharma  in  accordance with all applicable laws, rules and
regulations.

KBI BioPharma represents and warrants to Client that it has legal title and/or a
================================================================================
valid  license  to  materials,  process  patents and other intellectual property
================================================================================
necessary  to  conduct  the Services and that KBI BioPharma's performance of the
================================================================================
Services  will not violate or infringe on the patents, trademarks, service marks
================================================================================
or copyrights of any third party.  KBI BioPharma further represents and warrants
================================================================================
to  Client  that  it  will hold, use and/or dispose of information and materials
================================================================================
provided  by  Client  in  accordance  with  all  applicable  laws,  rules  and
==============================================================================
regulations.
============

18.     Independent  Contractor

KBI  BioPharma  shall  perform  the Proposal as an independent contractor of the
Client  and  shall  have  complete  and  exclusive  control over its facilities,
equipment, employees and agents.  The relationship between the parties shall not
constitute a partnership, joint venture or agency nor constitute either party as
the  agent,  employee  or  legal  representative  of  the  other.

19.     Publicity

Neither  Party  will make any press release or public disclosure or use the name
of  the  other  party  or  its employees in any advertising or sales promotional
material  without  the  other  Party's  express  prior  written  consent.

20.     Authority

Client  grants KBI BioPharma full authority to use any Client supplied materials
or substances. Each party represents and warrants to the other party that it has
the  full  right  and  authority  to enter into this Agreement and to perform in
accordance  with  the terms and conditions set forth herein.  Each Party further
represents and warrants to the other Party that it has obtained and will, at all
                                                                        =
times  during  the  term  of  this Agreement, hold and comply with all licenses,
permits  and  authorizations  necessary  to  perform  this  Agreement  as now or
hereafter  required  under  any applicable statutes, laws, ordinances, rules and
regulations  of  the  United  States and any applicable foreign, state and local
governments  and  governmental  agencies.

21.     Amendment  and  Precedence

The  Proposal,  the  terms  and  conditions  herein  and  any applicable Quality
     ==============       =========================
Agreement  constitute  the  entire agreement between the Parties relative to the
    ===
Proposal  and  may  not  be  modified without the mutual written consent of both
Parties.

22.     Choice  of  Law

The  Agreement  between  the  Parties  governed  by  these  standard  terms  and
conditions shall be construed and enforced in accordance with the laws of and in
the venue of the State of North Carolina except for its rules regarding conflict
of  laws.

23.     Dispute  Resolution

If  a  dispute arises between the Parties in connection with this Agreement, the
respective  presidents  or  senior  executives of KBI BioPharma and Client shall
first  meet as promptly as practicable and attempt to resolve in good faith such
dispute.  If  such  parties  cannot  resolve the dispute, then the parties shall
attempt to settle the dispute  through mediation in accordance with the rules of
the  American Arbitration Association ("AAA").  Nothing herein shall subject the
parties  to  the  jurisdiction of the AAA.  The Parties shall participate in the
mediation in a good faith attempt to settle the dispute.  The mediation shall be
held  in  Durham  County,  North  Carolina.  If  mediation  fails to resolve the
dispute,  the  dispute shall be resolved in the jurisdiction of the defendant by
binding  arbitration,  by a neutral arbitrator mutually selected by counsel from
each  party,  under  the rules of the American Arbitration Association.  Nothing
herein  shall  subject  the  parties  to  the  jurisdiction  of  the  AAA.

24.     Assignment

The  Agreement  between the Parties shall not be assigned in whole or in part by
either Party without the prior written consent of the other, which consent shall
not  be  unreasonably  withheld  or  delayedexcept that no such consent shall be
                                            ====================================
required  for  an  assignment by Client in whole or in part in connection with a
    ============================================================================
merger or other business combination or sale of all or substantially all assets.
  =============================================================================

25.     Termination

Client  may  terminate  this  Agreement  prior  to completion of the Proposal by
providing sixty (60) days written notice to KBI BioPharma.  Upon receipt of such
notice  of  termination,  KBI  BioPharma  will  promptly scale down the affected
portion  of  the  Proposal  and  avoid  (or minimize, where non-cancellable) any
further  related  expenses.  In  the  event  that Client elects to terminate for
reasons other than a material breach of this Agreement by KBI BioPharma that KBI
BioPharma fails to cure or commence such cure within thirty (30) days of written
notice  of  such  breach, Client shall pay KBI BioPharma upon receipt of invoice
all  of  its  costs  incurred  or irrevocably obligated related to the Proposal.

KBI  BioPharma  may terminate this Agreement prior to completion of the Proposal
by  giving  sixty  (60) days written notice to Client in the event of a material
breach  of  this  Agreement  by Client that is not cured after a thirty (30) day
written  notice  of  such  breach.  Upon  such  termination Client shall pay KBI
BioPharma  upon  receipt  of  invoice  all  of its costs incurred or irrevocably
obligated  related  to  the  Proposal.

The  termination of this Agreement for any reason shall not relieve either Party
of  its  obligations  to  the  other  in  respect  of: (i) confidentiality; (ii)
consents  for advertising purposes and publications; (iii) indemnification; (iv)
                                                                          =
intellectual  property;  and  (v)  compensation  for  Services  performed.
                                                      ========

26.     Survival

Sections  13,  14,  15,  18,  19,  22,  23  and this Section 26 of the terms and
======================================================================
conditions  hereinshall  survive  termination  or  expiration  of the Agreement.
=======     ======

<PAGE>
======
In Witness Whereof, the Parties by their authorized representatives execute this
================================================================================
Agreement  as  of  the  date  first  above  written
===================================================

KBI  BIOPHARMA,  INC.                    CLIENT

By:                                 By:

Name:                              Name:  Hector  J.  Gomez,  MD,  PhD

Title:                            Title:  Chairman  and  CMO

Date:                              Date:  March  28,  2006

<PAGE>

                            ATTACHMENT ONE:  PROPOSAL
                                             ========

<PAGE>

                        ATTACHMENT TWO:QUALITY AGREEMENT
                                       =================

<PAGE>
                                QUALITY AGREEMENT

1.     PURPOSE

This  Quality  Agreement  defines  the roles, responsibilities, deliverables and
reporting  time requirements with respect to the quality activities for DNAprint
Pharmaceuticals, Inc. ("Client") Proposal for PT-401 Development  and Production
performed  at  KBI  BioPharma.

2.     SCOPE

This  document  applies  to  and  is incorporated into the Agreement between KBI
BioPharma  and  Client  dated  March  28,  2006  pertaining  toPT-401.

3.     DEFINITIONS

Any  terms  not  defined  in  this  Quality  Agreement  will  be  interpreted in
accordance  with  the  definitions  provided  in ICH Q7A GMP Guidance for Active
Pharmaceutical  Ingredients,  21  CFR,  Parts  210  and 211, or other applicable
regulatory  requirements.

3.1.     CRITICAL  CHANGE

Any  change  that:  (a)  impacts  the  regulatory  commitments  and/or reporting
requirements  of the Client's API or drug product; (b) requires re-qualification
or  re-validation of test methods, or reference standards; and/or (c) results in
changing  or  modifying  the  specifications  or  test  methods.

3.2.     CRITICAL  DEVIATION

A  deviation  that  has  potential  impact  on product quality or the validation
status  of  a test method.  These deviations require a thorough investigation to
determine  the  root  cause  and  its  impact  on  any  product  or test method.

3.3.     FOR  CAUSE  VISIT

The  term "For Cause Visit" is used to describe site visits where the Client may
be following up on a reported adverse event in the field or a critical deviation
impacting  the quality of the Client's product.  The term "For Cause Visit" does
not apply to business meetings, scope discussions, technical meetings or general
quality discussions.  The visit scope and maximum number of participants will be
mutually  agreed  upon  in  advance.

<PAGE>

3.4.     QUALITY  CONTACT

All  communications  concerning  the  scope  of  this  Quality Agreement will be
between  the  Quality  Contacts,  named  below:

For  Client:

CMO          (Title),  Quality  Assurance
-----------------------------------------

For  KBI  BioPharma:
--------------------

             (Title),  Quality  Assurance
-----------------------------------------

In  the  event  of  a  change, temporary or otherwise, of either Party's Quality
Contact,  the  Party  making  the  change will notify the other Party in writing
prior  to  such  a  change.

3.5.     TECHNOLOGY  TRANSFER  PACKAGE

A  set  of  documents  supporting technical transfer of analytical methods.  Key
documentation  included  in the package includes the method development reports,
validation reports and analytical test procedures for methods to be transferred.

4.     QUALITY  PROGRAM

The  quality  program  at  KBI  BioPharma  provides:
-     An  organization  with a focus on building quality into the product, using
balanced  risk  management  in quality decisions and meeting of company business
objectives
-     An  understanding  of executive management's responsibility to ensure that
the  commitment  for  quality  is  understood, implemented and maintained at all
levels  of  operations.
-     Periodic  management  review  of  the suitability and effectiveness of the
quality  program.

4.1.     MANAGEMENT  RESPONSIBILITIES

KBI BioPharma will operate a cGMP compliant facility with regard to API testing,
drug  product  testing  and  product  stability  testing.

Client  is  responsible for ensuring that the test procedures and specifications
employed  at  KBI  BioPharma appropriately reflect the requirements submitted to
applicable  regulatory  authorities.   KBI BioPharma is responsible for ensuring
compliance  to  the  test  procedures and specifications for the Client product.

4.1.1.     ANNUAL  API  REVIEW  AND  ANNUAL  REPORT

For  commercial  products,  KBI  BioPharma  will  provide data to the Client for
inclusion  in  the  Client's  Annual  Product  Review.  This  data  will be made
available  to  Client Quality Contact to fulfill any applicable annual reporting
requirements  to  regulatory  agencies.

4.1.2.     CONFLICT  RESOLUTION

Any disputes or conflicts relating to this Quality Agreement will be resolved by
the  Quality  Contacts  in a timely manner and in compliance with all applicable
quality  and  regulatory  requirements.  Such resolutions will be documented and
signed  by  the Quality Contacts of each company.  In the event the issue cannot
be  resolved  at  the Contact level, the senior corporate quality officials from
each  Party  will  be  responsible  for  resolution.

4.1.3.     REGULATORY

All updates to regulatory applications related to product intermediates, API and
drug  product  testing  are  the  responsibility  of Client.  KBI BioPharma will
provide  Client  all  necessary  information  that  it  possesses,  pertinent to
testing.

4.2.     ANALYTICAL  METHOD  TRANSFER

Analytical  test  methods will be developed by KBI BioPharma or transferred from
the  Client  site  using  mutually  agreed  upon  processes.  Client  will  be
responsible  for  training  KBI  BioPharma  personnel  to  use product assays or
product  specific  test  methods  that  are  transferred  to KBI BioPharma.  KBI
BioPharma  will  be  responsible  for  generating  protocols  to  confirm method
equivalency,  validating  or  qualifying  the test methods and providing a final
report  for  method  transfer  to Client.  Client and KBI BioPharma will jointly
review  and  approve  the validation or qualification protocol, final report and
test  methods  prior  to  implementation  of  routine  testing.

KBI BioPharma will be responsible for any subsequent analytical method transfers
to  or  from  other  sites  identified  by  Client.

4.3.     ANALYTICAL  TESTING

KBI BioPharma will perform release and stability testing of Client's API or drug
product  per  established  method/procedure  and  review  against  defined
specifications  as  detailed  in  regulatory  submissions.

Client will be responsible for providing product reference standards for testing
and  has  the  responsibility  for  providing product reference standards to KBI
BioPharma.  KBI  BioPharma  will  be  responsible  for proper maintenance of the
inventory  of  reference  standards  in  its  possession.

KBI  BioPharma  and the Client will mutually approve the protocols for stability
studies  to  be conducted.  Client will be responsible for determining, amending
and  reporting  expiration  dates  for  all  reference  standards  and  product.

KBI  BioPharma  will  provide  a  final test result report to the Client Quality
Contact  after KBI quality review is complete.  On request of the Client, copies
of  KBI BioPharma raw data and laboratory investigation reports will be provided
to  the  Client.

Client  QA  will conduct a review of this documentation within ten (10) business
days  after  receipt.  If any issues are identified during review, these will be
communicated  to  KBI  BioPharma  in writing.  KBI BioPharma will reply to these
comments  within  ten  (10)  business  days  of  receipt.

4.4.     DOCUMENTATION

4.4.1.     SPECIFICATIONS  AND  TEST  METHODS

Specifications  will be consistent with the requirements set forth in regulatory
filings.  Where no written test method is provided by Client (such as compendial
methods),  current  KBI  BioPharma methods or current compendial methods will be
used.  Mutually  approved  Client specifications and methods will be provided to
KBI  BioPharma  thirty  (30)  days  prior  to  implementation  of  cGMP testing.

4.4.2.     DATA  REPORTING  REQUIREMENTS

Original  (raw)  product  data  generated  in KBI BioPharma laboratories will be
stored  and  retained at KBI BioPharma in accordance with cGMPs and internal KBI
BioPharma  guidelines.  Client  is  to  provide  five  (5) business days advance
notice  for  access  to  reviewed  and  approved  data.

4.4.3.     RECORD  RETENTION

KBI  BioPharma  will  retain  all  completed  testing  documentation and testing
related documentation for a minimum of one (1) year beyond the completion of the
Client  Proposal.  These  documents  will  be  readily accessible for review and
inspection  by  Client and/or regulatory authorities if requested. At the end of
the  document  retention  period,  KBI  BioPharma  will notify Client and either
provide  these records to the Client or obtain written permission to destroy any
documents  that  were  stored  beyond  the  required  retention  period.

4.5.     EXCIPIENT  AND  FINAL  CONTAINER  HANDLING

4.5.1.     SOURCING  AND  TESTING

KBI  BioPharma  will  source excipients and final containers used in formulation
development. The KBI BioPharma vendor quality program requirements will apply to
all  excipients  and  final  containers  sourced  by  KBI BioPharma. The testing
procedures  will be developed by KBI BioPharma or may be provided by the Client,
as  appropriate.  KBI  BioPharma and Client will mutually agree on excipient and
final  containers.  Specifications  will  be in accordance with requirements set
forth  in  regulatory  filings  and  as  set forth in Client provided documents.

4.5.2.     TRANSMISSIBLE  SPONGIFORM  ENCEPHALOPATHY  (TSE)  COMPLIANCE

KBI  BioPharma  will  source  excipients  from either non-animal derived sources
whenever  possible,  or  if  animal  derived  materials  are necessary, then KBI
BioPharma  will  comply  with  U.S.  and  European  regulations  regarding  TSE
compliance  by  obtaining Country of Origin certification and verifying that the
source  country  is  not  a  known  TSE-contaminated  country.

4.6.     CRITICAL  CHANGE  CONTROL

Critical  Changes  initiated  by KBI BioPharma will be communicated to Client in
writing,  using  the KBI BioPharma Critical Change Control process.  Client will
review  Critical Changes prior to implementation for conformance to registration
commitments  and  advise KBI BioPharma on any actions to take in order to assure
compliance.

Critical  Changes  initiated by the Client will be communicated to KBI BioPharma
in  writing  using  the Client's process for change control.  KBI BioPharma will
review  the  Critical  Change  prior  to implementation and advise Client on any
actions  that  must  be  taken to assure conformance to KBI BioPharma standards.

For  Critical  Changes  requiring  approval  by  KBI  BioPharma and Client, both
Parties  will  be  responsible  for  supplying  written  responses  as  soon  as
reasonably  possible  but  in  no  event  more  than ten (10) business days from
receipt  of  the  request.

CHANGES  REQUIRING  APPROVAL  BY  KBI  BIOPHARMA  AND  NOTIFICATION  OF  CLIENT:
--------------------------------------------------------------------------------

-     Change  in  the  layout or structure of the testing facility, equipment or
utilities
-     Changes  to  compendial  test  methods  and  specifications

CHANGES  REQUIRING  PRE-APPROVAL  OF  KBI  BIOPHARMA  AND  CLIENT:
------------------------------------------------------------------

-     Changes  that require revalidation of Client's product specific release or
stability  test  methods.
-     Changes  to  release or stability testing specifications for Client API or
drug  product
-     Change  of testing site for Client's product specific release or stability
test  methods
-     Changes  to  excipients (specifications, testing, suppliers or TSE status)

4.7.     DEVIATION  CONTROL

KBI  BioPharma  will  notify Client of any out of specification (OOS) results or
other Critical Deviations within three (3) working days of confirming the OOS or
observing  the  deviation.

OOS  results  will  be  investigated  using  the  KBI  BioPharma  Laboratory
Investigation  Procedure,  and  if  any retesting is conducted, the re-test plan
must  be  approved  by  KBI  BioPharma  quality  and the Client Quality Contact.

Critical  Deviations outside of OOS investigations will be investigated for root
cause  and  fully  documented by KBI BioPharma, targeting thirty (30) days after
the  date  of discovery for completion.  Investigations will include appropriate
justification,  scientific  rationale  and  supporting  data.   The  Client will
review  the completed Critical Deviation report and communicate to KBI BioPharma
the  result  of  its  review,  within  five  (5)  business  days.

4.8.     VALIDATION,  MAINTENANCE  AND  CALIBRATION

KBI  BioPharma  will  be  responsible  for initial qualification, validation and
ongoing  re-validation,  as  needed,  of  its  facilities,  utilities,  computer
systems,  stability  chambers  and  laboratory  equipment.

KBI BioPharma will ensure that equipment used in the testing of the Client's API
or  drug  product  are  routinely  calibrated  and maintained in a good state of
repair.

4.9.     AUDITS

4.9.1.     CLIENT  AUDITS

Client  may  audit  KBI  BioPharma  premises  once annually using up to four (2)
auditor  days  (1  auditor  for  2  days or 2 auditors for 1 day) for reasons of
determining  compliance  with  the  terms  of  the Quality Agreement and general
compliance  with  the  requirements  of  the  applicable internal procedures and
regulatory  requirements.

Client has the right to For Cause Visits with respect to particular functions or
areas.  KBI  BioPharma  will  schedule and host For Cause Visits within ten (10)
days  of  KBI  BioPharma's receipt of Client's request.  If a For Cause Visit is
the result of a reported adverse event, KBI BioPharma will schedule and host the
For  Cause  Visit  within  forty-eight  (48) hours of KBI BioPharma's receipt of
Client's  request.

4.9.2.     SUPPLIER  AUDITS
The  auditing  of  excipient  suppliers  will be the responsibility of the Party
sourcing  the  item(s).

4.9.3.     REGULATORY  INSPECTIONS

KBI  BioPharma  will  notify  Client,  within  twenty-four  (24)  hours,  of any
inspections  or  actions by regulatory agencies or other enforcement bodies that
could potentially impact Client product.  KBI BioPharma will provide Client with
the  results  of  all  such  regulatory audits, as they apply to Client product,
within ten (10) working days of the audit close out meeting.  KBI BioPharma will
provide  pre-approval  inspection  and  new  product  approval  support.

Client  will  fulfill  all  reporting  requirements to the respective regulatory
agency  or  agencies  with  regard  to  Client  registration documentation.  KBI
BioPharma  will  fulfill  all  reporting requirements with regard to testing and
site  registration  that  may  be required to support Client related activities.

4.10.     COMPLAINTS  AND  ADVERSE  EVENT  REPORTING

KBI  BioPharma  will  promptly  notify Client of any information coming into its
possession  concerning  the  quality of previously released API or drug product.
Any  determinations  on  whether  a regulatory notification is necessary and the
resulting  communication  with  the  regulatory  authorities  will  be  the
responsibility  of  the  Client  Quality  Contact.

QUALITY  HEAD  APPROVALS

CLIENT
Written  Signature:

Printed  Name:          Hector  J.  Gomez

Title:                         CMO
                               ---

Date:               March  28,  2006

KBI  BIOPHARMA,  INC.

Written  Signature:  __________________________________________
                     ------------------------------------------

Printed  Name:       __________________________________________
                     ------------------------------------------

Title:               __________________________________________
                     ------------------------------------------

Date:                __________________________________________
                     ------------------------------------------

                                 CONFIDENTIAL

                 PROPOSAL FOR PT-401 DEVELOPMENT AND PRODUCTION

Prepared  for:          Hector  J.  Gomez,  M.D.,  Ph.D.
                        Chairman  of  the  Board,  Chief  Medical  Officer

DNA  Print  Pharmaceuticals
     900  Cocoanut  Avenue
     Sarasota,  FL  34236

Prepared  by:  KBI  BioPharma,  Inc.
               P.O.  Box  15579
               1101  Hamlin  Road
               Durham,  NC  27704

Proposal  Number:     06.DPT.01

Version:          01

Issue  Date:          March  20,  2006

This  proposal  is  valid until April 20, 2006, after which budget estimates and
timing  are  subject to revision.  This proposal is provided for the sole use of
DNA  Print  Pharmaceuticals  in  assessing the merits of services offered by KBI
BioPharma,  Inc.  The  content  of  this  document  has  been  developed  on  a
project-specific  basis  based  on  information  provided  by  DNA  Print
Pharmaceuticals.  Budget  and  timelines are presented in the proposal, however,
these  are  subject  to  terms  and  conditions  to  be  agreed  upon.
BACKGROUND  &  SUMMARY

In its Request for Proposal, DNA Print Pharmaceuticals (DNA PRINT) has requested
KBI  BioPharma,  Inc. (KBI) provide a proposal related to PT-401 development and
production.  In  response,  KBI  is  pleased  to  submit  this  proposal.

VERSION  HISTORY

                   REVISION NUMBER     DESCRIPTION OF CHANGES
                                       ----------------------
00     New  Document
--     -------------
01     Revised  to add in vivo potency assay, BIACORE assay and Payment schedule
--     -------------------------------------------------------------------------

<PAGE>
1.0     SCOPE  RESPONSIBILITIES

This  section  outlines  responsibilities for KBI and DNA PRINT as they apply to
the  work  scope.

1.1     SAFETY

1.1.1     DNA  PRINT  will provide an MSDS and all sample/material handling data
for  the  materials  associated  with this project (if available).  If materials
have any special handling considerations, DNA PRINT will notify KBI prior to the
initiation  of  the  project.

1.1.2     KBI  will  assess  the  MSDS  and  all  safety  handling  data for the
materials  associated  with this project.  Should the materials have any special
handling  considerations  KBI  may  apply  a  reasonable additional fee to cover
actual  costs  of  handling.

1.2     METHODS/DOCUMENTATION

1.2.1     DNA  PRINT  will provide all relevant project-related documentation to
be  used  for  this  project.

1.2.2     KBI will review all relevant project-related documentation and methods
received  from  DNA  PRINT.

1.2.3     All documentation for developed or revised methods will be provided by
KBI  for  review  and  approval  by  DNA  PRINT  prior  to  implementation.

1.3     SAMPLE/MATERIALS

1.3.1     DNA PRINT will provide all non-standard samples/materials necessary to
perform  this  project.  Such  materials  will  include  all necessary reference
standards  and  any  product-specific  or  assay-specific  reagents.  The
samples/materials  should  arrive  at  KBI  with  all  proper  documentation.

1.3.2     KBI  will,  on behalf of DNA PRINT, procure all necessary standard raw
materials, reagents and disposables necessary to perform the project.  KBI will,
as  necessary,  log  in  all  samples/materials  according  to  current Standard
Operating  Procedures.  The  sample/material lot numbers will be recorded in the
laboratory  notebooks  or  standardized  data  sheets  at  the  time  of  use.

1.3.3     KBI will provide any samples of formulated material for testing by DNA
PRINT  as  deemed  necessary  by  both  KBI  and  DNA  PRINT.

2.0     SCOPE

2.1     PROJECT  SCOPE  AND  EXECUTIVE  SUMMARY

2.1.1     Objective
DNA  PRINT  has  developed  a  CHO  cell  line  which  expresses  PT-401,  an
erythropoietin  (EPO)  fusion  protein  consisting  of two EPO domains in tandem
joined by a flexible peptide linker.  A clone expressing this fusion protein has
been  isolated.

2.1.2     KBI  will  develop  a scaleable cell culture and purification process,
develop  and qualify assays for product release, develop a suitable formulation,
execute cGMP runs to produce sufficient product for Phase 1 clinical trials, and
perform  QA/QC  release  of  the  bulk  drug  substance  and  drug  product.

2.2     PROJECT  ASSUMPTIONS

-    Sponsor  has  developed  a  CHO-S cell line secreting PT-401, an EPO fusion
     protein.  This  fusion  protein  will  be  referred  to  as  Product.

-    Sponsor  has  isolated  a  clone  which  secretes  15-20  mg/L  Product.

-    Sponsor  has adapted the clone for growth in suspension and in protein free
     medium.

-    The selected  clone  is  expected to produce 50 mg/L Product in a fed-batch
     cell  culture  process.

-    The recovery  and  purification  process  is expected to have a 50% Product
     recovery.

-    The Sponsor  estimates  that ~1 gram Product will be sufficient to meet his
     Phase  1  clinical  trial  requirements.

-    The above three assumptions imply that TWO cGMP production runs (consisting
     of 2 x10-L culture harvest, pooled and purified) will suffice to meet these
     requirements.

-    The sample  requirements for QC will not significantly impact the amount of
     Bulk  Drug  Substance  obtained  per  production  run.

-    Approximately 40 samples for in-vivo potency will be analyzed in support of
     manufacturing,  drug  substance/drug  product  release, and stability. This
     analysis  will  be  outsourced.

2.3     RECEIPT  OF  CELL  LINE  FROM  DNA  PRINT

2.3.1     Objective
To transfer a tested cell line from DNA PRINT to KBI.  The transferred cell line
must  be  tested  for microbial, mycoplasma and MVM contamination.  This testing
ensures  that  our  facilities  as  well  as  other  clients' cell lines are not
inadvertently  contaminated  and  project  progress  jeopardized.

2.3.2     Activities

-    DNA PRINT will arrange to have their cell line tested by an outside vendor.
     The  minimum tests required are non-host, mycoplasma and MVM contamination.

-    Once the  cell  line  is  tested,  DNA  PRINT  will  send  KBI the results.

-    KBI will  review  the  results  and,  if acceptable, KBI will authorize DNA
     PRINT to ship the cell line. Cell lines shipped, without KBI authorization,
     will not be accepted at our loading dock and will be returned to DNA PRINT.

2.3.3     Deliverables

-     From  DNA  PRINT,  cell  line  testing  report.

-     From  KBI,  authorization  to  ship  cell  line  to  KBI.

2.4     INITIAL  CELL  LINE  CHARACTERIZATION

2.4.1     Objective
The  DNA  PRINT  cell  line will be characterized for culture parameters such as
growth  rate,  maximum  cell  density,  viability,  product  formation, nutrient
utilization  and by-product formation to gauge its readiness for introduction to
a  bioreactor  for  cell  culture  process  development.

2.4.2     Activities

-    DNA PRINT provided data will be reviewed and evaluated before the cell vial
     is  thawed  and  evaluation  begun  in  T-flasks  or  spinners.

-    These cell  culture  studies  will  investigate  the  following:

-    Cell growth  rate  (doubling time) and its comparison to other similar cell
     lines

-    Maximum  cell  density achievable in a batch culture and the maintenance of
     cell  viability

-    Nutrient  consumption  (glucose, glutamine, amino acids, etc) and byproduct
     formation  (lactate,  ammonia,  etc)  profile

-    Product  expression  rate  (product  titer  in  medium  as well as specific
     productivity  per  cell)  in  batch  culture  and  comparison  to DNA PRINT
     reported  values

-    Improvement  in maximum cell density, cell viability and product expression
     by  the  addition  of  simple  nutrients  (glucose  and  glutamine)

-    Evaluation  of DNA PRINT specified cell culture medium and its adequacy for
     the  development of a bioreactor process. Evaluate other media if necessary
     to  improve  the  culture  performance

-    The above  experiments  will  allow  KBI to design a preliminary bioreactor
     process.  The  improved  control of pH and dissolved oxygen in a bioreactor
     versus  a spinner or T-flask will generally result in higher cell densities
     and  product  titers.

-    The next  step  is  the  development  of  a  fed-batch  process  in  a 15-L
     bioreactor  (8-10  L  working  volume).

2.4.3     Deliverables

-     Report  summarizing  the  Cell  Line Characterization results of the above
experiments.

2.5     PRELIMINARY  METHOD  DEVELOPMENT  AND  ANALYTICAL  SUPPORT FOR CELL LINE
CHARACTERIZATION

2.5.1     Objective
Develop  analytical  assays  to allow evaluation of performance of the cell line
during  cell  characterization.

2.5.2     Activities

-    Transfer/develop  a  SDS-PAGE method to estimate product purity in the cell
     culture  samples.

-    Transfer/develop  a  Western  blot method to verify product identity in the
     cell  culture  samples.

-    Transfer/develop  an  ELISA  assay  to  estimate product titers in the cell
     culture  samples.

-    Analyze  cell  culture  samples  using  above  methods  to  support  cell
     characterization.

2.5.3     Deliverables

-     Method  development  reports.

2.6     DEVELOPMENT  AND  SCALE  UP  OF  THE  CELL  CULTURE  PROCESS

2.6.1     Objective
Develop  a  reproducible  and  scaleable  fed-batch  cell  culture  process  for
production  of  Product.  Considering  the low product quantity (~1 gram) needed
for  the  Phase  1  clinical  trials,  it  is expected that this Product will be
produced  using  multiple  10-Liter  runs.

2.6.2     Activities

-    The results  of  the  cell  line  characterization work will define a basic
     batch  process  for  the  production  of  Product  in  a  bioreactor.

-    Various  bioreactor  parameters  will  be  investigated  to  develop  a
     reproducible  and  scaleable  cell  culture  process.  Examples  of  these
     parameters  are:

-    Culture  pH  to  optimize  growth versus culture viability and longevity as
     well  as  product  stability

-    Aeration  of  culture  with  air,  O2  and CO2 to maintain pH and dissolved
     oxygen  in  the  most  favorable  range.

-    Maintenance  of  nutrient  levels  (glucose,  glutamine,  AA feeds, etc) to
     prolong  culture  life,  thus  improving  product  titers  in  harvest.

-    Minimization  of  harmful  byproducts  (lactate  and  ammonia) which effect
     culture  viability  and  thus  effect  culture  life.

-    Feed profile  of  nutrients  to  maximize  culture  life  and hence product
     titers.

-    Harvest  time  to  minimize  product  degradation.

-    Addition  of other nutrients (insulin, cholesterol, lipids, etc) to improve
     culture  performance.

-    Multiple  bioreactor  runs  will  be  performed  to design the cell culture
     process.

-    The cell  culture  harvest from favorable runs will be used by Purification
     to  design  the  Product  recovery  and  purification  train.

2.6.3     Deliverables

-     A reproducible and scaleable cell culture process suitable for use in cGMP
manufacturing.

2.7     DEVELOPMENT  AND  SCALE  UP  OF  THE  PURIFICATION  PROCESS

2.7.1     Objective
To  develop  a Product recovery and purification process, starting with the cell
culture  harvest  and  ending  with  bulk Product meeting agreed specifications.

2.7.2     Activities

-    The cell  culture harvest will be transferred to 1-L centrifuge bottles and
     centrifuged  in a refrigerated centrifuge containing a 6x1-L bottles rotor.
     The  transfer of the cell culture harvest to bottles and the pooling of the
     clear supernatant will be accomplished aseptically in a Class-100 biosafety
     hood.  (As  the  process  is  scaled up beyond 10-L, we expect this step to
     replaced  by  dead-end  filtration  or  a  continuous  centrifuge.)

-    The purification  process  is  expected  to  have 3-4 column steps: Product
     capture,  purification  1,  purification  2  and  polishing.

-    The product capture step will concentrate the product in the eluate as well
     as  remove  most  cell  culture  medium  derived small molecule and protein
     components.

-    The purification  steps  will  use an orthogonal purification techniques to
     improve  product  quality  as  well  remove any endotoxin and residual DNA.
     These  steps  may  also  act  as  a concentration and solvent removal step.

-    The polishing  step  (gel  filtration)  will  be used to remove any product
     aggregates.

-    All steps  will use commercially available cGMP-produced resins and buffers
     and  use  scaleable  process  conditions.

2.7.3     Deliverables

-     A  scaleable  purification  process  producing Bulk Product meeting agreed
specifications,  suitable  for  use  in  cGMP  manufacturing.

2.8     PREPARATION  OF  A  MASTER  CELL  BANK  AND  WORKING  CELL  BANK

2.8.1     Objective
To  ensure  that  the cell line meets the regulatory requirements for use in the
manufacture  of  product for Phase 1 clinical trials.   A Master Cell Bank (MCB)
and  a  Working  Cell  Bank  (WCB)  wil  be  produced  and  tested.

2.8.2     Activities

-    The MCB and WCB production and cell line testing will be done by an outside
     vendor.

-    KBI will  coordinate  these  activities  with  the outside vendor. KBI will
     review  the  vendor  report,  prior  to  using the WCB for cGMP production.

2.8.3     Deliverables
-     From  KBI,  coordination  with  vendor  and  review  of  final  report.

2.9     ANALYTICAL  METHOD  DEVELOPMENT

2.9.1     Objective

To  develop/optimize methods to characterize the Product.  These methods will be
used  in  preformulation  development  and  stability,  and  may  be  used  for
characterization  and  release  of  drug  substance  and  drug  product.

2.9.2     Activities

-    Select  methods  to  be  developed  in  consultation  with  DNA  PRINT.

-    The following  methods will be developed or optimized. Methods will be used
     to  characterize  the  purified  bulk and final product and will be used in
     preformulation  development.

-    Peptide  Map  -  Identity  and  degradation  (deamidation,  oxidation)

-    SEC-HPLC  -  Soluble  aggregates  and  breakdown  products,  purity

-    UV - Concentration  and  insoluble  aggregates

-    IEF - Charge  variants  and  pI

-    Oligosaccharide  compositional  analysis  via  Ion  Chromatography,  or CHO
     profiling  via  CE  or  HPLC

-    Sialic  Acid  Determination

-    Host cell  protein  ELISA

-    Residual  DNA

-    Biacore  or  ELISA  method to assess immunogenicity based on relative titer

2.9.3     Deliverables

-     Analytical  method  development  reports.

2.10     PREFORMULATION  DEVELOPMENT

2.10.1     Objective
To  evaluate  basic  formulation  conditions  that  will  confer  optimal
conformational,  physical  and  chemical  stability  to the protein in solution.

2.10.2     Activities

-    Evaluate  effects  of  pH,  buffer  type,  and excipients on conformational
     stability,  using  biophysical characterization techniques such as DSC, CD,
     FTIR,  and/or  Fluorescence.

-    Evaluate  the  effect  of  pH,  buffers,  excipients  and ionic strength on
     physical  and  chemical  stability.  Evaluation  will  include  a  2  week
     accelerated  stability  study.

-    Utilize  a  statistical  design approach to identify the optimal conditions
     for  structural,  physical  and  chemical  stability.

-    Utilize  the information gained during preformulation development to inform
     the  purification  process  development.

2.10.3     Deliverables
-     Development  report  recommending  formulation  buffer,  pH  and excipient
conditions.

2.11     FORCED  DEGRADATION  STUDIES

Forced  degradation  studies  will  be  performed  to  ensure that the developed
methods  to  be used in formulation development are stability indicating and can
resolve potential degradation products.  The molecule will be subjected to heat,
light,  physical  and chemical degradation stresses.  Forced degradation will be
performed at a single product concentration based on the preformulation studies.

2.11.1     Objective

To  elucidate  degradation  pathways  and  ensure  that the developed analytical
methods  are  suitable  for  detection  of  physical  and  chemical degradation.

2.11.2     Activities
-     Evaluate  forced  oxidation,  deamidation,  aggregation  (via  agitation),
      and/or  acid/base  hydrolysis.
-     Evaluate  heat  stress,  photo  stress,  and  freeze  thaw.
-     Evaluate detection of the various degradation products using the developed
      assays.

2.11.3     Deliverables

-     Forced  degradation  report.

2.12     FORMULATION  DEVELOPMENT

Based on the preformulation study, optimal pH, buffer, ionic strength, excipient
and  protein  concentration  conditions  will  be evaluated for the final liquid
formulation.

2.12.1     Objective

To  develop  a final liquid formulation for use as an intramuscular injection in
pre-filled  syringes.

2.12.2     Activities

-     Evaluate the viscosity and ease of injection through specified syringes of
      various  formulation  conditions.
-     Evaluate  the  effect  of  excipients  on  improving  viscosity if needed.
-     Evaluate  the  compatibility  of  the specified syringes with the Product.
This  evaluation  will  include  a  2  week  accelerated  stability  study.

2.12.3     Deliverables

-     Liquid  Formulation  Development  report.

2.13     ANALYTICAL  METHOD  QUALIFICATION

2.13.1     Objective

To  qualify  the  methods, following the appropriate regulatory requirements and
guidance,  to  ensure  that  the  methods are suitable for release and stability
testing  of  clinical  supplies.

2.13.2     Activities

-    Discuss  with  DNA  PRINT  the  required  method  qualification.

-    DNA PRINT  will  approve  the  qualification  protocols.

-    Qualification  of  the methods will be performed utilizing a single analyst
     to  ensure  that  methods  are  suitable for use in an early phase clinical
     study.  Parameters  to  be  evaluated  will  include  linearity,  limits of
     detection  (LOD),  limits  of  quantitation  (LOQ), accuracy and precision.

-    Qualification  criteria  will  be  agreed  upon  by both KBI and DNA PRINT.

-    Methods  that  may  be  qualified  include:

-    Peptide  Map  -  Identity  and  degradation  (deamidation,  oxidation)

-    SDS-PAGE  (reduced  and  non-reduced)  -  Covalent  and  non-covalent
     aggregation,  degradation

-     Western  blot  -  Identity

-    SEC-HPLC  -  Soluble  aggregates  and  breakdown  products,  purity

-    ELISA  -  product  concentration/potency

-    UV  -  Concentration  and  insoluble  aggregates

-    IEF

-    Host  cell  protein  ELISA

-    Bioburden

-    Endotoxin

-    In-vivo potency assay (KBI will coordinate the qualification of this assay
     with  outside  vendor.)

-    Qualification  for  Bioburden  will  consist  of bacteriostasis/fungistasis
     evaluation.  Qualification  for  endotoxin  will  consist  of
     inhibition/enhancement  evaluation.

-    The final  determination  for  which  methods require qualification will be
     made  in  consultation  with  DNA  PRINT  after  the  completion  of method
     development.

2.13.3     Deliverables

-     Method  qualification  reports.

2.14     PRODUCT  CHARACTERIZATION

2.14.1     Objective
To  characterize  the  Product  and  related  impurities.

2.14.2     Activities
-     Develop  and  perform  the  following  characterization  analyses  for the
Product:

o     Amino  Acid  Analysis  (including determination of extinction coefficient)
o     Molecular  mass  determination  via  LC-MS
o     Carboxyl  terminal  analysis
o     N-terminal  sequencing  via  MS/MS
o     Biophysical  Characterization  (DSC,  CD,  FTIR,  Fluorescence)
o     Carbohydrate  profile  and  composition
o     Light  scattering  (MALS)

2.14.3     Deliverables
-     Product  characterization  report

2.15     DEVELOPMENT  OF  BULK  DRUG  SUBSTANCE  AND DRUG PRODUCT SPECIFICATIONS

2.15.1     Objective
To  develop  Bulk  Drug Substance and Drug Product specifications for use in the
release  of  Product.

2.15.2     Activities
-     DNA  PRINT  and KBI will work jointly to develop the specifications, based
on  the  analytical  methods,  characterization  package,  critical  process
parameters,  and  established  EPO  requirements.

2.15.3     Deliverables
-     Bulk  Drug  Substance  and  Drug  Product  specifications.

2.16     PREPARATION  OF  DOCUMENTATION  FOR  CGMP  PRODUCTION

2.16.1     Objective
To  prepare  the necessary documentation for the commencement of cGMP production
of  Product.

2.16.2     Activities
-     Prepare  raw  material  specifications.
-     Prepare  intermediate  product  specifications.
-     Prepare  batch  records  for  use  in  cGMP  manufacturing.
-     Prepare  any  custom procedures for non-standard operation required by the
      manufacturing  process.
-     Prepare  and  finalize  test  methods.

2.16.3     Deliverables
-     Documents  listed  above.

2.17     TOXICOLOGY  LOT  PRODUCTION

2.17.1     Objective
Upon  completion  of  the  process  development  activities,  a demo run will be
conducted  to  finalize  documents  as  well  as produce tox material for use in
animal  studies.

2.17.2     Activities

-    Draft specifications  and  batch records will be used in this demonstration
     run.

-    It is expected  that  two  15-L  bioreactors  (8-10  L working volume each)
     running  in  parallel  will  constitute one production run. The supernatant
     from  both  bioreactors  will  be  pooled and processed further through the
     recovery  and  purification  trains.

-    The purified  non-cGMP  Bulk  Product  will  be available for use in animal
     trials.

-    This purified  non-cGMP  Bulk  Product  is  NOT  suitable  for  human  use.

-    The results  of  this  demo  run  will  be  used  to refine the process, if
     necessary.  These  results will also be used to finalize the specifications
     and  batch  records.

2.17.3     Deliverables
-     Non-cGMP  Bulk  Product  for  use  in  toxicology  studies.

2.18     CGMP  PRODUCTION  CAMPAIGN

2.18.1     Objective
To  produce  and  release  Bulk  Product  for  use  in  Phase  1 clinical trials

2.18.2     Activities

-    A cGMP  production  run  is  defined as 2x15-L bioreactors run in parallel,
     pooled  after  harvest  and  processed  to  Bulk  Product.

-    Based on  information  provided  by DNA PRINT, it is expected that two cGMP
     production  runs  will  suffice  to meet the clients Phase 1 clinical trial
     requirements.  If  cell  line  performance does not meet DNA PRINT provided
     product  titers (~50 mg/L product), then additional runs AT ADDITIONAL COST
     may  be  required.

-    Two cGMP  productions  runs  will  be conducted to produce and release Bulk
     Product.

-    QC support consisting of environmental and in-process control (IPC) testing
     as  appropriate  based  on critical process parameters and the batch record
     requirements.

-    QA support consisting of guidance for cGMP compliance, deviation review and
     assistance,  etc.

2.18.3     Deliverables
-     Bulk  drug  substance  for  release

2.19     BULK  DRUG  SUBSTANCE  RELEASE

2.19.1     Objective
To  perform testing and provide documentation required to support the release of
bulk  drug  substance  for  further  downstream  processing (i.e., fill/finish).

2.19.2     Activities

-     Perform  release  testing  as  per  batch  record  and bulk drug substance
specification,  using  qualified  methods.

-     The methods to be employed in the study will be agreed upon by KBI and DNA
PRINT.  A  subset  of  the  following  methods  will  be  employed:
o     Appearance
o     pH
o     Peptide  Mapping
o     SDS-PAGE
o     Western  blot
o     SEC-HPLC
o     IEF
o     Endotoxin
o     Bioburden
o     In-vivo  potency  assay

-     Investigate  any out of specification results according to KBI established
      procedures.
-     Review  and  approve executed batch records, release testing data, and any
associated  deviations,  OOS  reports, out-of-calibration reports, environmental
excursions,  and  any  other  documents  pertaining  to  Product  quality.

-     Generate  COA  for  each  lot  of  bulk  drug  substance.

-     Ship  bulk  drug  substance  to  DNA PRINT selected fill/finish contractor
under  cGMP  conditions.

2.19.3     Deliverables

-     COA  for  each  lot  of  bulk  drug  substance.
-     Reviewed  batch  records  and  other  associated  production  documents.
-     Shipment  of  bulk  drug  substance  to  fill/finish  contractor.

2.20     DRUG  PRODUCT  RELEASE  TESTING

2.20.1     Objective
To perform release testing on the final drug product manufactured at DNA PRINT's
fill/finish  contractor.

2.20.2     Activities
-     Perform  release  testing  as  per  batch  record  and  drug  product
specification,  using  qualified  methods.
-     The methods to be employed in the study will be agreed upon by KBI and DNA
PRINT.  A  subset  of  the  following  methods  will  be  employed  at  KBI:
o     Appearance
o     pH
o     Peptide  Mapping
o     SDS-PAGE
o     Western  blot
o     SEC-HPLC
o     IEF
o     In-vivo  potency  assay
o     Endotoxin
o     Particulate  Matter
o     Sterility  (performed  by  fill/finish  contractor  or  contracted  out)
-     Investigate  any out of specification results according to KBI established
procedures.
-     Review  and  approve  release testing data, and any associated deviations,
OOS  reports,  out-of-calibration reports, and any other documents pertaining to
Product  quality.
-     Generate  COA  for  each  lot  of  drug  product.

2.20.3     Deliverables
-     COA  for  each  lot  of  drug  product.

2.21     STABILITY  STUDIES

2.21.1     Objective

Perform  real  time and accelerated stability studies on bulk drug substance and
drug  product  to  support  clinical  studies.

2.21.2     Activities

-     Develop  protocols  in  consultation  with  DNA  PRINT.
-     DNA  PRINT  will  approve  the  stability  protocols.
-     For  planning purposes, it is assumed that two lots of bulk drug substance
and  one  lot  of  drug  product  will  be  placed  on  stability.
-     Store  samples  at  KBI under conditions appropriate for the study design.
-     Store  reserve  samples  at  each  temperature  for  use in the event that
additional  testing  is  required.
-     The  analytical methods to be employed in the study will be agreed upon by
KBI  and  DNA PRINT.  A subset of the following methods will be employed at KBI:
o     Appearance
o     pH
o     Peptide  Mapping
o     SDS-PAGE
o     Western  blot
o     SEC-HPLC
o     IEF
o     Particulate  matter
o     In-vivo  potency  assay
-     Investigate  any out of specification results according to KBI established
procedures.
-     Issue  Certificate  of  Analysis  for  each  stability  time  point.
-     For  any  out  of  specification results, testing will be performed at the
subsequent  time  point  to  verify  degradation.  If  degradation  is  verified
subsequent  time  points  may  be  cancelled.
-     Pull  times  and  schedules as well as windows for pulls and initiation of
analysis  will be detailed in the stability protocol to be approved by DNA PRINT
prior  to  the  initiation  of  the  stability  program.

2.21.3     Deliverables

-     Stability  report  will  be  provided  at each time point in the form of a
certificate  of  analysis.

3.0     PROGRAM  MANAGEMENT

3.1     OBJECTIVE

Provide  overall  management  of  the project according to scope and contractual
terms.  Develop  &  maintain  excellent  communications  and  collaborative
relationship  with  DNA  PRINT.

3.2     ACTIVITIES

KBI  values  collaborative  and open relationships with its customers.  KBI will
appoint  a  Study  Director from within the project team who will be responsible
for  project  performance,  deliverables,  invoicing  and  regular  customer
communications.  The  Study  Director  will  be  DNA  PRINT's  primary technical
point-of-contact  within  KBI.  KBI  will,  however,  further appoint a "project
sponsor"  from within its management group who will be available to DNA PRINT in
the  event  of  non-technical issues arising.  Teleconferences will be scheduled
once  per  week  and  meetings  will  be  held  at  KBI  as  appropriate.

4.0     ESTIMATED  TIMELINES

KBI  estimates  the  duration  of  each  individual  defined project activity as
detailed  in  table  1  below.  Duration  includes QA review and report writing.

TABLE  1:     DURATION  OF  ACTIVITIES

                        ACTIVITY                         DURATION OF ACTIVITY
                        --------                         --------------------
                 Initial Cell Line Characterization            2 months
                 ----------------------------------            --------
                   Preliminary Method Development              2 months
                   ------------------------------              --------
          Development and Scale Up of Cell Culture Process     2 months
          ------------------------------------------------     --------
          Development and Scale Up of Purification Process     4 months
          ------------------------------------------------     --------
          Cell line Testing and Preparation of MCB and WCB     4 months
          ------------------------------------------------     --------
                   Analytical  Method  Development          6-8  months
                   -------------------------------          -----------
                    Preformulation  Development
                    ---------------------------
                    Forced  Degradation  Studies
                    ----------------------------
                      Formulation  Development
                      ------------------------
                 Analytical  Method  Qualification
                 ---------------------------------
                     Product  Characterization
                     -------------------------
                     Toxicology Lot Production                2 months
                     -------------------------                --------
                     Specification  Development               8 months
                     --------------------------              ---------
      Preparation  of  Documentation  for  cGMP  Production
      -----------------------------------------------------
                     cGMP  Production  Campaign
                     --------------------------
                   Bulk  Drug  Substance  Release
                   ------------------------------
                   Drug  Product  Release  Testing
                   -------------------------------
                         Stability Studies                   24 months
                         -----------------                   ---------
        TOTAL ELAPSED TIME FOR PROJECT (excl. of Stability)  16 MONTHS
        ---------------------------------------------------  ---------

<PAGE>
TABLE  2:     BULK  DRUG  SUBSTANCE  STABILITY  PROGRAM  DESIGN

                                     STORAGE
         CONDITIONS     1M     3M     6M     9M     12M     18M     24M
         ----------     --     --     --     --     ---     ---     ---
                 -80 C   X     X      X      X      X        X       X
                 -----   -     -      -      -      -        -       -
                 2-8oC   X     X      X      X      X        X       X
                 -----   -     -      -      -      -        -       -
            30oC/ 60RH   X     X      X
            ----------   -     -      -
X  =  Analyses  as  described  in  section  2.21.2

TABLE  3:     DRUG  PRODUCT  STABILITY  PROGRAM  DESIGN

                                     STORAGE
         CONDITIONS     1M     3M     6M     9M     12M     18M     24M
         ----------     --     --     --     --     ---     ---     ---
                 2-8oC   X     X       X     X       X       X       X
                 -----   -     -       -     -       -       -       -
              30oC/ 60RH X     X       X     X       X       X       X
              ---------- -     -       -     -       -       -       -
              40oC/ 75RH X     X       X
              ---------- -     -       -
X  =  Analyses  as  described  in  section  2.21.2
5.0
<PAGE>
PRICE  AND  BUDGET  ESTIMATES

TABLE  4:     PRICE  FOR  PT-401  DEVELOPMENT  AND  PRODUCTION
                REGULATORY STATUS     ACTIVITY               ESTIMATED PRICE ($)
                -----------------     --------               -------------------
1     Non cGMP     Initial Cell Line testing (outside vendor estimate)    5,000
-     --------     ---------------------------------------------------  -------
2     Non cGMP     Initial Cell Line Characterization                   160,000
-     --------     ----------------------------------                   -------
3     Non cGMP     Preliminary Method Development                        60,000
-     --------     ------------------------------                       -------
4     Non cGMP     Development and Scale Up of Cell Culture Process     185,000
-     --------     ------------------------------------------------     -------
5     Non cGMP     Development and Scale Up of Purification Process     340,000
-     --------     ------------------------------------------------     -------
6     Non cGMP     Analytical Method Development                        510,000
-     --------     -----------------------------                        -------
     Non  cGMP     Preformulation  Development
     ---------     ---------------------------
     Non  cGMP     Forced  Degradation  Studies
     ---------     ----------------------------
     Non  cGMP     Formulation  Development
     ---------     ------------------------
     Non  cGMP     Product  Characterization
     ---------     -------------------------
     cGMP          Analytical  Method  Qualification
     ----          ---------------------------------
7    cGMP          Cell line testing and Preparation  of MCB and WCB
                   (estimated cost for outside vendor)                  100,000
-    ----          -------------------------------------------------    -------
8    Non cGMP      Toxicology Lot Production                            340,000
-    --------      -------------------------                            -------
9    cGMP          Specification Development                            870,000
-    ----          -------------------------                            -------
     cGMP          Preparation  of  Documentation  for  cGMP  Production
     ----          -----------------------------------------------------
     cGMP          cGMP  Production  Campaign
     ----          --------------------------
     cGMP          Bulk  Drug  Substance  Release
     ----          ------------------------------
     cGMP          Drug  Product  Release  Testing
     ----          -------------------------------
10   cGMP          Drug Substance/Product Stability Program             270,000
--   ----          ----------------------------------------             -------
                   TOTAL PRICE                                        2,840,000
                   -----------                                        ---------

6.0     ADDITIONAL  FEES  AND  PRICING
6.1     ADDITIONAL  FEES

If  copies  of  raw  data  are requested in the course of an active project, DNA
PRINT  will  be  invoiced  at  $175/hour  for the hours required to generate and
compile  the  data requested.  If copies of raw data are requested after a final
report has been issued, the DNA PRINT will be invoiced at the current laboratory
rate  for  the  hours  required  to  generate  and  compile  the data requested.

Expenses  incurred  by  KBI to procure materials and laboratory supplies for the
execution  of  the  project (direct and indirect) will be invoiced to DNA PRINT.
6.2     REVISIONS  TO  PRICING

KBI  reserves  the  right  to revise quoted costs for any project as a result of
changes in initial scope, revisions in protocols, modifications of test methods,
final  review  of  test  methods,  undocumented  requirements, or any unforeseen
difficulty  in  executing  the  project.  The  additional work will be performed
based on written agreement from DNA PRINT and will be documented on a KBI Change
Order.

All  required investigational work (such as OOS investigations, trouble shooting
chromatographic  methods, etc.) may be conducted without prior approval from DNA
PRINT,  for  up  to  24  scientist hours per occurrence.  If the additional work
requires  more than 24 hours, DNA PRINT will be contacted prior to continuation.
All  investigational  testing  performed that is not directly due to a KBI error
will  be  invoiced to DNA PRINT at current lab rates and will be documented on a
Change  Order.

7.0     INVOICING  AND  PAYMENT  TERMS
7.1     PAYMENT  SCHEDULE
TABLE  5     PAYMENT  SCHEDULE  (PLEASE  REFER  TO TABLE 4 FOR ACTIVITY NUMBERS)

<TABLE>
<CAPTION>
<S>       <C>                 <C>              <C>                                <C>
Phase          Activities     Total Price            Initial Payment
                                              (Remainder billed semi-monthly)     Initial payment due on
Development     1 - 5
                 and
               50% of 6        $1,005,000                $335,000                      1-Apr-06
Scale up and
Tox run and
cGMP prep      50% of 6,
                7 - 8
              and 25% of 9     $  912,500                $304,167                      1-Jul-06
cGMP runs and
Stability      75% of 9
                 and 10        $  922,500                $307,500                      1-Jan-07
Total          $2,840,000
</TABLE>

7.2     INVOICING

KBI  will  issue semi-monthly invoices for work in process based upon the agreed
scope  of  work and terms and conditions.  One third of the project cost will be
billed  upon  initiation  of  the  project.
7.3     PAYMENT  TERMS

Payments  toward  all  invoices  are  due  within thirty (30) days of receipt of
invoice  and  are  non-refundable.  Any  applicable  wire  transfer  fee must be
included  in  the  payment  issued  to  KBI.

8.0
<PAGE>
PROJECT  APPROVAL  AND  AUTHORIZATION

By  signing  below, DNA PRINT agrees to the project details as set forth in this
proposal  and  to  negotiate  in good faith a definitive Services Agreement that
will  include a mutually designed detailed scope-of-work and customary terms and
conditions.

DNA  PRINT  PHARMACEUTICALS               KBI  BIOPHARMA,  INC.

Signature                         Signature
---------                         ---------

Printed  Name                     Printed  Name
-------------                     -------------

Title                             Title
-----                             -----

Date                              Date
----                              ----

PO  Number
----------

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