Document:

EXHIBIT
      10.18

    

    HEMOBIOTECH

    

    

    

    TEXAS
      TECH - HEMOBIOTECH JOINT BLOOD SUBSTITUTE

    

    

    

    PHASE
      IV:

    

    HEMOTECH(TM)
      FDA
      IND/PHASE I CLINICAL TRIAL REQUIREMENT IMPLEMENTATION

    

    

    

    

    

    JANUARY
      2007 - OPEN
      ENDED

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

     

    
      	
              PROJECT
                TITLE:  

            	
              Texas
                Tech-HemoBioTech Joint Blood Substitute Project. 

              Phase
                IV: HemoTechTM FDA IND/Phase I Clinical Trial Requirement
                Implementation

            
	 
	
              PROJECT
                DIRECTOR
                (at HemoBioTech, Inc.): 

            
	 	
              Arthur
                P. Bollon, Ph.D.

              Chairman,
                President & CEO

              HemoBioTech,
                Inc.

              14221
                Dallas Parkway Suite 1400

              Dallas,
                TX 75254

              Tel:
                214-540-8411; Fax: 214-540-8416

              e-mail:
                arthurb@flash.net

              http://www.hemobiotech.com

            
	 
	
              PROJECT
                PRINCIPAL INVESTIGATOR (at TTUHSC):

            
	 	
              Jan
                Simoni, DVM, PhD 

              Co-Inventor
                of HemoTechTM

              Associate
                Research Professor of Surgery and Internal Medicine

              Texas
                Tech University Health Sciences Center

              School
                of Medicine

              3601
                4th Street, Office 3A119A

              Lubbock,
                TX 79430-8312

              Tel:
                806-743-2460 x 246; Fax: 806-743-2113

              e-mail:
                jan.simoni@ttuhsc.edu

            
	 
	
              DATES
                OF THE PROPOSED PERIOD: 

            
	 	
              January
                1, 2007 - open ended

            
	 	 
	
              TOTAL
                DIRECT COSTS REQUESTED FOR THE PROJECT: Initial down payment of
                $779,647.36

            
	 	
              The
                first installment of $779,647.36 will initiate Phase IV of the SRA
                Project. The residual funds from Phase III of the SRA Project will
                be
                added to the Phase IV budget and assigned to specific object codes
                accordingly. The exact cost of Phase IV will be determined during
                its
                realization. The
                budget will be adjusted as necessary and will represent the dollar
                amount
                needed to accommodate the costs of HemoTech’s FDA IND/Phase I Clinical
                Trial requirement implementation program. Since, as of December 2006,
                the
                Texas Tech SRA Team and HemoBioTech, Inc. are unaware of any future
                FDA
                recommendations/ requirements, besides those assigned to date, it
                is
                difficult to predict the total cost of Phase IV of the Project. This
                includes, but is not limited to, the total costs of any consumables,
                equipment, services, travel, labor compensation, related overhead
                and any
                other relevant expenses needed for satisfactory completion of Phase
                IV.
                

            
	 	 
	
              PERFORMANCE
                SITES: 

            	
              Department
                of Surgery, Division of Blood Substitutes

              Department
                of Surgery

              Texas
                Tech University Health Sciences Center

              3601
                4th Street, 3A119A, 3A131, 3A134, 3A135 & 3A136

              Lubbock,
                TX 79430, and

              Texas
                Tech New Deal Farm

              East
                of New Deal, TX 79405

            
	 	 
	
              APPLICANT
                ORGANIZATION:

            
	 	
              Texas
                Tech University Health Sciences Center

              Lubbock,
                TX 79430

            
	 	 
	
              TYPE
                OF ORGANIZATION:

            	
              State

            
	 	 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              ORGANIZATIONAL
                COMPONENT TO RECEIVE CREDIT FOR GRANT:

            
	 	
              School
                of Medicine

            
	 	 
	
              OFFICIAL
                SIGNING FOR APPLICANT ORGANIZATION:

            
	 	
              Barbara
                C. Pence,
                PhD, Assoc. Dean/Assoc. VP

              Office
                of Research and Graduate School

              Texas
                Tech University Health Sciences Center

              3601
                4th
                Street, BA 112

              Lubbock,
                TX 79430-6206

              Tel:
                806-743-2556; Fax: 806-742-2656

              Email:
                Barbara.Pence@ttuhsc.edu

              Signature:     Date:

            
	 	 
	
              OFFICIAL
                IN BUSINESS OFFICE TO BE NOTIFIED ABOUT THIS
                FUNDING:

            
	 	
              June
                Howard,
                Director

              Office
                of Sponsored Program, TTUHSC

              3601
                4th
                Street, Office 2B107

              Lubbock,
                TX 79430-6271

              Tel:
                806-743-2960; Fax: 806-743-2656

              Signature:     Date:

            
	 	 
	
              PRINCIPAL
                INVESTIGATOR SIGNATURE:                                   
                Date:

            
	 	 

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    1.
      Project Description:

     

    Phase
      IV
      of the SRA Project proposed project is a continuation of the joint endeavor
      between Texas Tech University Health Sciences Center (TTUHSC) and HemoBioTech,
      Inc. with its main goal to commercially develop HemoTechTM, the Texas Tech
      invented blood substitute. Phase IV will officially start on January 1, 2007.
      Due to uncertainties related to constantly changing FDA regulations in the
      field
      of blood substitutes, Phase IV of the SRA project has not been assigned with
      an
      ending date. This project is legally regulated by the Sponsored Research
      Agreement (SRA) and the License Agreement between Texas Tech University Health
      Sciences Center (a licensor) and HemoBioTech, Inc (a licensee), signed into
      effect in 2002.

    

    Since
      2002, the SRA Project has had the first 3 (three) Phases completed.

    

    Phase
      I (2002-04)
      of the project included: 

    

    
      	·  	
              creation
                of a company structure; 

            

    

    
      	·  	
              development
                of the business plan; and 

            

    

    
      	·  	
              intellectual/scientific/technical
                support during the process of searching for an initial venture capital.
                

            

    

    

    Phase
      II
      of the
      Project, which was completes in 2005 by the Texas Tech SRA Team led by Dr.
      Simoni, consisted of:

    

    
      	·  	
              completion
                and submission to the U.S. Patent and Trademark Office of a new patent
                on
                the method for stimulating erythropoiesis with HemoTechTM 
                (Project
                I),
                

            

    

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

            

    

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

            

    

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

            

    

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

            

    

    

    Phase
      III
      of the
      Project that was accomplished in 2006 was focused on:

    

    
      	·  	
              continuation
                of the necessary activities associated with maintaining the animal
                blood
                donor facility in cooperation with the Department of Animal Sciences
                at
                TTU (Project
                I),

            

    

    
      	·  	
              participation
                in the IND process that included (Project
                II):

            

    

    

    
      	1.  	
              Scientific
                and technical interaction with and support of CRO groups, which will
                represent HemoBioTech, Inc. at the FDA
                level.

            

    

    
      	2.  	
              Preparation
                for additional [*] studies with HemoTechTM [*] by the
                FDA.

            

    

    
      	3.  	
              Conducting
                additional [*] studies with HemoTechTM [*] by the
                FDA.

            

    

    
      	4.  	
              Conducting
                of more studies on the interaction of HemoTechTM with automated analytical
                clinical tests, recommended by the
                FDA.

            

    

    
      	5.  	
              Expanding
                the intellectual property base for HemoTechTM.

            

    

    
      	6.  	
              Any
                other activities requested by CRO groups, the FDA, or other involved
                parties.

            

    

     

    
      	·  	
              Preparation
                for
                manufacturing of [*] HemoTechTM  (Project
                III)
                that included Creation and partial implementation of the [*] for
                the SRA
                Team. [*].

            

    

    

    
      	·  	
              additional
                R&D on HemoTechTM  (Project
                IV and Project V)
                described in detail in the ongoing monthly progress reports, submitted
                by
                Dr. Simoni, P.I., to HemoBioTech, Inc.

            

    

    

    Each
      project in Phase I, II and III was done at Texas Tech University using the
      Texas
      Tech intellectual and technical resources. Phases II and III were paid for
      by
      HemoBioTech, Inc. in the amount of $517,505 (Phase II 230,503 and Phase III
      286,999). HemoBioTech,
      Inc. provided no financial assistance for Phase I of the Project. Any residual
      funds from Phase III will be automatically transferred to the budget of Phase
      IV
      and assigned to specific object codes accordingly.

     

     

    
      
        *
          Blank spaces contained confidential information that has been filed separately
          with the Securities and Exchange Commission pursuant to Rule 24b-2 under
          the
          Securities Exchange Act of 1934, as amended.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
On
      December 14, 2006, the TTUHSC SRA Team was asked to continue their scientific,
      intellectual and technical assistance to the licensee, HemoBioTech, Inc. Dr.
      Arthur P. Bollon, Chairman, President & CEO of HemoBioTech, Inc., expressed
      interest in obtaining from the SRA Team, services to accomplish the below listed
      Projects:

    

    Phase
      IV will include:

    

    PROJECT
      NO. 1. CONTINUATION OF MAINTENANCE OF THE ANIMAL BLOOD DONOR FACILITY IN
      COLLABORATION WITH THE DEPARTMENT OF ANIMAL SCIENCE AT TEXAS TECH
      UNIVERSITY.

    

    This
      facility, which is housing [*] cows, was established in March 2005, is located
      at TTU Farm in [*] and supervised by Dr. Simoni. The detailed maintenance budget
      for the period January 1, 2007 - December 31, 2007 is presented as Attachment
      1.

    

    The
      maintenance budget for the period of January 1, 2008 - December 31, 2008, and
      beyond if necessary, will be presented at the end of 2007. 

    

    PROJECT
      NO. 2. IMPLEMENTATION OF THE IND PROCESS THAT WILL INCLUDE BUT NOT BE LIMITED
      TO:

    

    
      	1.  	
              Scientific
                and technical interaction with and support of [*], our regulatory
                organization that represents HemoBioTech, Inc. at the FDA
                level.

            

    

    
      	2.  	
              Finalizing
                and implementation of the CMC Master Plan (Attachment
                2 is submitted at the end of this document).

            

    

    
      	3.  	
              Conducting
                [*] studies with HemoTechTM [*]. The type and number of experiments to be
                conducted at Texas Tech University Health Sciences Center will be
                determined following consultation with the
                FDA.

            

    

    
      	4.  	
              Scientific
                and technical consulting support to [*] during performance of the
                [*]
                studies. [*]

            

    

    
      	5.  	
              Continuation
                of [*] studies with HemoTechTM, [*].
                [*].

            

    

    
      	6.  	
              Continuation
                of studies on the interaction of HemoTechTM
[*].

            

    

    
      	7.  	
              Any
                other activities requested by CRO groups, the FDA, or other involved
                parties.

            

    

    
      	8.  	
              Expanding
                the intellectual property base for HemoTechTM.

            

    

     

    These
      activities that were initiated in 2006, should take place in the first half
      of
      2007. The time for completion of particular tasks can vary and can be more
      precisely determined after receiving the FDA clearance for submitted or planned
      protocols. The implementation of these tasks will depend on the availability
      of
      adequate funds. As of December 2006, it is impossible to predict the exact
      cost
      of these activities, due to uncertainties surrounding future FDA recommendations
      and decisions. This also can apply to the timeline for completion of
      tasks.

     

    PROJECT
      NO. 3. MANUFACTURING OF HEMOTECHTM.

     

    [*].
      

    

    The
      animal blood donors and the HemoTechTM production facility are generally ready to
      be used for this activity. The patented HemoTechTM manufacturing technology,
      developed at TTUHSC, will be implemented in this process. HemoTechTM
manufacturing process will be similar to that described in the CMC documents
      and
      will include (see Attachment
      3):

    

    •
      [*]

    •
      [*]

    •
      [*]

     

     

    
      
        *
          Blank spaces contained confidential information that has been filed separately
          with the Securities and Exchange Commission pursuant to Rule 24b-2 under
          the
          Securities Exchange Act of 1934, as amended.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

                   
      • [*]

    •
      [*]

    •
      [*]

    •
      [*]

    •
[*]
      

    •
      [*]

     

    [*].
      The
      FDA decisions will dictate future activities and their associated costs. The
      exact cost of Project 3 will depend on the FDA recommended size and number
      of
      the HemoTechTM [*]. 

     

    If,
      for
      instance, the FDA will recommend [*] larger than [*] liters, the SRA Team should
      be furnished with the necessary funds to scale up the manufacturing process.
      The
      scale-up process will require purchasing of the necessary production equipment
      and probably expansion of the production facility within the TTUHSC building.
      

     

    The
      volume and number of HemoTechTM [*] for [*] is presently unknown and can only be
      determined after receiving the FDA clearance of the [*] that are now under
      construction and in need of FDA approval.

     

    The
      volume and number of HemoTechTM [*] will depend on the scope of the clinical
      applications and number of patients selected for HemoTechTM in Phase I and Phase
      IIA of the clinical trials. 

     

    The
      CMC
      Master Plan that is under construction will determine the organizational
      structure of the HemoTechTM production team. As of December 2006, HemoBioTech,
      Inc. is reimbursing only [*] hours per week for P.I. J. Simoni, [*] hours per
      week for Sr. Res. Assoc. J.F. Moeller, and [*] hours per week for Med. Res.
      Assist. G. Simoni. It is possible that in order to avoid any interruption
      throughout the project a different percentage of time could be assigned to
      current SRA Team members, on a case-by-case basis, at any time during the
      Project. The initial budget for 2007 will reserve [*] and [*] a certain amount
      of money (see Attachment 5) to accommodate emerging personnel needs for this
      growing project, especially in the area of reorganizing of the current SRA
      Team
      structure and wages for employees that are planned to be hired for this project.
      However, the exact amount of money that will be needed to fully accommodate
      the
      project personnel needs is unknown at the present time. 

     

    Our
      22
      years plus experience in the manufacturing of blood substitutes teaches us
      that
      its production requires a 24/7 commitment. Therefore, the successful completion
      of this task will depend on the ability of HemoBioTech, Inc. to provide the
      necessary funds to adequately compensate the current SRA Team Members and
      possible new hires, particularly during the manufacturing of HemoTechTM.

     

    [*].

    

    [*].
      

    

    Taken
      together, the personnel requirements for Phase IV, particularly manufacturing
      of
      HemoTechTM can increase. Therefore, if necessary, the SRA Team should have access
      to additional funds for hiring of new employees to accommodate the anticipated
      expansion as presented to HemoBioTech’s Executives in 2003 (Attachment 4). The
      CMC Master Plan that is under construction will deal in more detail with this
      subject. 

    

    The
      exact
      costs of Project 3 will be known later. 

    

     

    
      
        *
          Blank spaces contained confidential information that has been filed separately
          with the Securities and Exchange Commission pursuant to Rule 24b-2 under
          the
          Securities Exchange Act of 1934, as amended.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    PROJECT
      NO. 4. ADDITIONAL
      R&D ON HEMOTECHTM.

     

    Legal
      protection for HemoTechTM will be continued. After successful completion of the
      patent application for HemoTech'sTM related [*] property, which according to the
      patent lawyers, will provide HemoTechTM with another [*] years of protection, the
      SRA Team is in the process of patenting of other aspects of HemoTech’s
      manufacturing and therapeutics. Project IV will include the completion of
      provisional and full patent applications for [*]. This patent [*] is exclusively
      assigned to Texas Tech University Health Sciences Center and will be available
      to HemoBioTech under provisions described in the Licensing Agreement. The
      details are described in [*]. Project 4 could also contain currently unknown
      intellectual, scientific, technical, managerial and manufacturing activities,
      which will result from conducting Phase IV and the FDA
      recommendations.

     

    The
      SRA
      Team is planning to present certain aspects of HemoTechTM [*] and [*] during the
      [*] and various national meetings related to the blood substitute field.

     

    Technical
      and managerial resources.
      Texas
      Tech University Health Sciences Center with twenty years plus of experience
      in
      the blood substitute field has all intellectual and almost all technical
      resources to successfully complete Phase IV of the Project. If scale-up will
      be
      recommended, new production equipment, facility expansion and hiring of new
      personnel must be funded. 

    .

    Funding
      requests.
      The
      total funds requested for Phase IV of the Project cannot be determined at the
      present time. The down payment of $779,647.36 will initiate Phase IV of the
      SRA
      Project. The residual fund from Phase III of the SRA Project will be added
      to
      the Phase IV budget and assigned to specific object codes accordingly. The
      exact
      cost of Phase IV will be determined during its realization. The budget will
      be
      adjusted as necessary and will represent the dollar amount needed to accommodate
      the costs of HemoTech’s FDA IND/Phase I Clinical Trial requirement
      implementation program. Since, as of December 2006, the Texas Tech SRA Team
      and
      HemoBioTech, Inc. are unaware of any future FDA recommendations/requirements,
      besides  those
      assigned to date, it is difficult to predict the total cost of Phase IV of
      the
      Project. This includes, but is not limited to, the total costs of any
      consumables, equipment, services, travel, labor compensation, related overhead
      and any other relevant expenses needed for satisfactory completion of Phase
      IV.

     

    The
      budget for Phase IV of the Project includes 25% overhead as mandated by the
      Sponsored Research Agreement. This 25% overhead will cover use of the TTUHSC
      facilities during the funding period. (Attachment 5)

    

    
      
        *
          Blank spaces contained confidential information that has been filed separately
          with the Securities and Exchange Commission pursuant to Rule 24b-2 under
          the
          Securities Exchange Act of 1934, as amended.

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Submitted
      by:

    

    Jan
      Simoni, DVM, PhD

    Associate
      Research Professor of Surgery and Internal Medicine

    P.I.
      of
      Sponsored Research Agreement

    TTUHSC,
      School of Medicine

    Lubbock,
      TX 79430

    

    Signature:        Date:

    

    

    Approved
      by:

     

    Barbara
      C. Pence, Ph.D.

    Associate
      Vice President for Research and

    Associate
      Dean for Research and the Graduate School

    Office
      of
      Research and the Graduate School, TTUHSC, Lubbock, TX 79430

    

    Signature:        Date:

    

    

    Ms.
      June Howard

    Director,
      Office of Sponsored Programs

    TTUHSC,
      Lubbock, TX 79430

    

    Signature:        Date:

    

    

    Susanne
      Moore, RN, JD

    Director,
      Office of Technology Transfer and Intellectual Properties

    TTU
&
      TTUHSC, Lubbock, TX 79414

    

    Signature:        Date:

    

    

    

    Approved
      by (HemoBioTech, Inc.):

     

    Arthur
      P. Bollon, Ph.D.

    Chairman,
      President & CEO

    HemoBioTech,
      Inc.

    14221
      Dallas Parkway Suite 1400

    Dallas,
      TX 75254

    Tel:
      214-540-8411

    e-mail:
      arthurb@flash.net

    

    Signature:        Date:

    

    

    
      
        *
          Blank spaces contained confidential information that has been filed
          separately with the Securities and Exchange Commission pursuant to Rule
          24b-2
          under the Securities Exchange Act of 1934, as amended.Management Fee Suspension Agreement

    Exhibit
      10.3    Management Fee
      Suspension Agreement

    

                      Management
        Fee
        Suspension Agreement 

      

      This
        Agreement is made and dated as of March 22, 2007.

      
Between:
        Patterson Brooke Resources Inc. (the “Company”) of #21 - 2386 Haines Road,
        Mississauga, Ontario, Canada, L4Y 1Y6

       

      And:
        B.
        Gordon Brooke (the “Brooke”) of 15 Angelene Street, Mississauga, Ontario,
        Canada, L5G 1X1

      

      Wheras:

      	A.  	
              Brooke
                is the President of the Company;

            

      

      	B.  	
              In
                accordance with a resolution passed by the directors of the Company,
                since
                November 1, 2006 the Company has paid Brooke a monthly management
                fee of
                $1,000 payable on the first day of each month (the
                “Fee”);

            

      

      	C.  	
              Brooke
                has agreed to permit the Company to suspend payment of the Fee
                indefinitely, from and after the June 2007 payment, until such time
                as the
                Company has sufficient cash to meet all its other budgeted expenses
                for at
                least as six month period; 

            

      

      	D.  	
              The
                parties wish to formalize this agreement between them by committing
                it to
                writing 

            

      

      Now
        therefore in consideration of the premises and the mutual covenants and
        agreements between the parties, the parties hereto herby agree as
        follows:

      

      	1.  	
              In
                order to conserve the Company’s working capital Brooke hereby agrees to
                permit the Company to suspend payment of the Fee, from and after
                June
                2007, for an indefinite period.

            

      

      	2.  	
              Brooke
                understands and agrees that reinstatement of payment of the Fee will
                occur, if ever, only after the Company’s Principal Financial Officer
                determines that the Company has sufficient cash available to recommence
                payment of the Fee on a monthly basis after having reserved sufficient
                cash to defray all of the Company’s other budgeted expenses for a period
                of at least six months from the date a determination is made. Brooke
                further agrees that arrears of the Fee, accumulated while payment
                thereof
                has been suspended, will likewise remain unpaid unless and until
                the
                Company’s Principal Financial Officer determines the Company has
                sufficient cash available to pay such arrears, in whole or in part,
                while
                still reserving sufficient cash to defray all of the Company’s other
                budgeted expenses for a period of at least six months from the date
                a
                determination is made.

            

      

      	3.  	
              Brooke
                agrees not to dispute, but to accept as a good faith determination,
                any
                determination made by the Company’s Principal Financial Officer pursuant
                to paragraph 2. of this Agreement.

            

      

      	4.  	
              This
                Agreement shall be binding upon the parties hereto and the heirs,
                executors administrators and assigns of Brooke and the successors
                and
                assigns of the Company.

            

       

       

      
 

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

      

      In
        witness whereof the parties hereto have hereunto affixed their respective
        hands
        and seals, or corporate seals, as the case may be, as of the day and year
        first
        above written.

      

      Patterson
        Brooke Resources, Inc.

      

      

      By:
        DAVID
        A. MOORE 

      Secretary
        Treasurer and Director 

      

      

      

      Signed:
        B.
        GORDON BROOKE 

      B.
        Gordon
        Brooke

      

      

      
        
           

        

        
          -2-

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