On October 12, 2021, Xenetic Biosciences Inc. entered into an amendment number one to the master services agreement with PJSC Pharmsynthez to, among other things, terminate all work orders under the MSA. As a result, no further services were to be performed under the work order and any additional services will be covered by new work orders. In exchange, the company entered into a new work order simultaneously with the MSA amendment. Under the terms of the second work order, Pharmsynthez shall provide certain enumerated services to support the company’s development of its XCART technology upon the written request of the company, which work may be requested by the company from time to time. Pursuant to the MSA amendment and second work order, upon entry into the second work order, the company made a one-time $40,000 payment to Pharmsynthez, of which $21,000 was a one-time payment in full for all money and other compensation owed by the company under the work order, and the remaining $19,000 will be creditable against any out of pocket costs and expenses incurred by Pharmsynthez on behalf of the company pursuant to any new work orders initiated after the effective date of the MSA amendment, including the second work order.