Document:

B-50 INDEMNITY AGREEMENT

INDEMNITY AGREEMENT 

This INDEMNITY AGREEMENT, dated as of the 20th day of August, 2008, is hereby entered into by and between COMMUNITY BUILDERS, INC.  a Colorado corporation (“Indemnitor”); and BIOMEDICAL TECHNOLOGY SOLUTIONS HOLDINGS, INC., a Colorado corporation, (“Holdings”) and its wholly-owned subsidiaries BIOMEDICAL TECHNOLOGY SOLUTIONS, INC. a Colorado corporation (“BMTS”)  and BMTS PROPERTIES,  INC., a Colorado corporation (“BMTSPI”) ("Indemnitees")  Indemnitor and Indemnitees are hereinafter sometimes referred to herein individually as a “party” and collectively as the “parties”.

W I T N E S S E T H

A.

Indemnitor has agreed to convey to BMTSPI certain real property identified in Section 4.7 of that Agreement and Plan of Merger dated May 8, 2008, as amended by Amendment No. 1 thereto dated July 9, 2008 (together the “Merger Agreement”), consisting of property commonly known as 1550 S. Idalia Court, Aurora, CO, (“Idalia”)   (hereafter together the “Properties”),  free and clear of debts or obligations except those obligations expressly assumed by BMTSPI; and

B.

Pursuant to the Merger Agreement, Indemnitor shall retain ownership of certain real properties commonly known as 7335 Lowell Boulevard, and 7215 Meade Street, both in Westminster, Colorado, and has sold real property commonly known as 7305 Lowell Boulevard, Westminster, Colorado, and property owned of record by Arizona Avenue, LLC, a Colorado limited liability company (“Arizona”) (hereafter collectively referred to as the “Remaining Properties”); and

C.

Indemnitor has further agreed in the Merger Agreement to provide the covenants and undertakings contained herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinbelow set forth, the parties agree as follows:

1.

In consideration of the mutual covenants and agreements of the parties contained herein and in the Merger Agreement, the receipt and sufficiency whereof are hereby acknowledged, for a period of three years from the date hereof (the “Indemnity Period”), Indemnitor, for itself, its officers, directors, shareholders, agents, representatives, successors and assigns (hereafter collectively the "Indemnitors") hereby agrees to defend, indemnify and hold harmless Indemnitees, together with their officers, directors, shareholders, any person, firm or corporation acting as transfer agent, registrar, trustee, depository, redemption, fiscal or paying agent, agents, representatives, successors and assigns (hereafter collectively the "Indemnitees") from and against any and all claims, debts, liabilities, obligations and damages of whatsoever kind or description, known or unknown, direct or indirect, at law or in equity, whether now existing or arising in the future, including any and all judgments and/or awards to which they may become subject under any federal, state or local statute, rule, regulation or order, at common law or otherwise, arising out of or in connection with the ownership or improvement of the Properties prior to the date hereof or the transfer and assignment of the Properties to BMTSPI pursuant to the Merger Agreement, as well as arising out of the ownership, 

improvement of the Remaining Properties including, without limitation, all secured debt constituting liens or encumbrances against those Remaining Properties, general contractor hold-backs, general contractor final draws, accrued and accumulated interest and accrued and accumulated real property taxes or assessments (hereafter collectively the “Indemnified Claims”).  Notwithstanding the foregoing, the Indemnified Claims shall not include a promissory note having a remaining principal balance of approximately $472,000 which is secured by a deed of trust encumbering the Idalia property, which note BMTSPI expressly assumes and agrees to pay. 

2.

Without in any way limiting the generality of the foregoing, the indemnity contained herein shall include any and all expenses, witness fees, damages, judgments, fines, attorneys fees and amounts paid in settlement and any other amounts that either Indemnitee becomes legally obligated to pay because of any Indemnified Claim made against the Indemnitees. 

3.

All expenses incurred by Indemnitees for which indemnification hereunder is provided and after any final judgment or award shall have been rendered by a court, arbitration board or administrative agency of competent jurisdiction, or a settlement shall have been consummated, Indemnitees shall forward to Indemnitor written notice of any sums due and owing by them pursuant to this Indemnity Agreement and Indemnitor shall pay all of the sums due and owing to Indemnitees within ten days of such notice.  

4.

Upon the occurrence of any event which would give rise to a claim by Indemnitees against, or to a rights of defense and indemnity against Indemnitor hereunder, or in the event that any suit, action, proceeding, investigation or claim is begun, made or instituted as a result of which Indemnitor may become obligated to Indemnitees hereunder, Indemnitees shall give written notice to Indemnitor of the occurrence of such event and shall identify Indemnitee’s choice of counsel to represent such  investigation, claim or proceedings, provided that the failure of Indemnitees to give notice  shall not affect the indemnification obligations of Indemnitor hereunder.  Indemnitees shall have the exclusive right to so defend, contest or protect against such matter utilizing the counsel of Indemnitee’s choice (who shall be reasonably acceptable to Indemnitor). Indemnitor shall have the right, but not the obligation, to participate at its own expense in the defense thereof by counsel of their choice.  Indemnitees shall not pay, acknowledge, compromise or settle any such claim without the consent of Indemnitor, unless such payment, acknowledgment, compromise or settlement results in a full and complete release and discharge of Indemnitor from any liability.

5.

For the Indemnity Period, Indemnitor shall (i) take all actions necessary or advisable to maintain its corporate existence in good standing under the laws of the state of Colorado, and (ii) maintain net assets (total assets less total liabilities) of not less than $250,000.

6.

Miscellaneous Provisions.

.

Waiver.  No waiver by Indemnitee of any of its rights and privileges under this Agreement nor any consent of Indemnitee to any failure to comply with the terms hereof by Indemnitor shall be effective unless made in writing and signed by Indemnitee.  No waiver by Indemnitee of any default or of any right to enforce this Agreement shall operate as a waiver of any other default, or of the same default on a future occasion, or of the right to enforce this Agreement on any future occasion.  No delay in or discontinuance of the enforcement of this Agreement, nor the acceptance by Indemnitee of installments of principal or interest after the occurrence of any Event of Default, shall operate as a waiver of any defaults.

2

.

Rights Cumulative.  The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies afforded by any other agreement executed in connection herewith, or provided by law.  Indemnitee's remedies may be exercised concurrently or separately, in any order, and the election of one remedy shall not be deemed a waiver of any other remedy.

.

Expenses.  Indemnitor will pay to Indemnitee on demand all expenses, including fees and expenses of attorneys, paid or incurred by Indemnitee, in connection with the making or collection of Indemnified Claims pursuant to this Agreement.

.

Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of Indemnitor, Indemnitee and their respective successors and assigns.  However, Indemnitor shall not be permitted to assign or otherwise transfer any rights under this Agreement without Indemnitee's prior written consent.

.

Governing Law.  This Agreement shall be construed in accordance with, governed by and enforced under the laws of the State of Colorado.

.

Recitals.  The recitals to this Agreement and any definitions set forth therein are made a part hereof and incorporated in this Agreement.

 

IN WITNESS WHEREOF, this Indemnity Agreement has been duly executed and delivered by the duly authorized officers of the respective parties, on the date first above written.

COMMUNITY BUILDERS, INC.

By:  /s/ Steven Davis ____________

Name:  Steven Davis

Title: CEO

BIOMEDICAL TECHNOLOGY SOLUTIONS HOLDINGS, INC.

By: /s/ Don Cox__________________

Name:  Don Cox

Title:  President

BIOMEDICAL TECHNOLGY SOLUTIONS, INC.

By:  /s/ Don Cox ___________________

Name:  Don Cox

Title:  President

BMTS PROPERTIES, INC.

By:  /s/ Don Cox

Name:  Don Cox

Title:  President

3ex101.htm

     

    LICENSE
AGREEMENT (this “License”)

     

    is
entered into as of

     

    August 21, 2008 (the “Effective
Date”)

     

    by

     

    Hamilton Atlantic, a company
incorporated under the laws of the Cayman Islands, (Registration No. 209852) and
having its registered office at c/o The Harbour Trust Co. Ltd., One Capital
Place, PO Box 897, George Town, Grand Cayman, KY1-1103, Cayman Islands, British
West Indies (“Hamilton”);

     

    to

     

    Sunburst Acquisitions III, Inc.,
a Colorado corporation having its principal place of business at 10990
Wilshire Blvd., Suite 1410, Los Angeles, California, 90024, United States of
America (“Sunburst”)

     

    (Hamilton
and Sunburst hereinafter to be collectively referred to as the “Parties” and
singularly as a “Party”)

     

    WHEREAS:

     

    
      	
              (A)

            	
              Hamilton
      is the owner of the Hamilton IP (as defined
  below);

            

    

     

    
      	
              (B)

            	
              Sunburst
      is willing to become the licensee of the Hamilton IP, on the terms and
      conditions set out in this License.

            

    

     

    
      	
              (C)

            	
              On
      the following terms and conditions, Hamilton has agreed to grant to
      Sunburst an exclusive worldwide license to undertake further research and
      development, and to market and sell products using the Hamilton
      IP.

            

    

     

     

    
      	
               
      

            	
              NOW,
      THEREFORE:

            

    

     

    For and
in consideration of the foregoing premises and the mutual covenants set forth
herein and other valuable consideration;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              THE PARTIES AGREE as
      follows:

            

    

     

    
      	1. 	
              DEFINITIONS
      AND INTERPRETATION

            

    

     

    
      	1.1 	
              In
      this License (including the Recitals), unless the context otherwise
      requires:

            

    

     

    Act means the Federal Food,
Drug and Cosmetic Act, 21 U.S.C. §§ 301 et seq., as such may be amended from
time to time.

     

    Affiliate means any
corporation or other business entity, which controls, is controlled by or is
under common control with a Party. For purposes of this definition, “control”
means, as of or subsequent to the Effective Date, direct or indirect ownership
of more than fifty percent (50%) of the voting interest or income interest
in a corporation or business entity;

     

    FDA means the United States
Food and Drug Administration;

     

    
      	
               
      

            	
              Hamilton IP means the
      Know-How and Materials, and any and all worldwide intellectual property
      rights including but not limited to, patents and patent applications set
      out in Schedule A and Schedule B hereto which are held, as at the
      Effective Date, in the name of Hamilton, VSL or Viragen, or in the joint
      names of VSL and Viragen, together with any related pending patent
      applications, issued patents, reissue patents, extensions, substitutions,
      continuations, divisional applications, divisions, continuation-in-part
      applications and supplementary protection certificates in any part of the
      world which are based on the Know-How and Materials, patents or patent
      applications set out in Schedule A or Schedule B
  hereto;

            

    

     

    
      	
               
      

            	
              Know-How and Materials
      means the laboratory note books, clinical trials and other research
      results, cell lines, and other data, all as are set out in Schedule
      B;

            

    

     

    
      	
               
      

            	
              Licensed Product means
      any item, thing, method or process developed by Sunburst that falls within
      the scope of a Hamilton IP or which contains or was developed using
      Hamilton IP;

            

    

     

    NDA means a New Drug
Application (as described in 21 C.F.R. § 314.50 et. seq.) filed with the FDA for
marketing approval for a drug pursuant to the Act and the regulations
promulgated thereunder, including any amendments or supplements
thereto.

     

    Net Sales means the invoiced
amount actually received for sales of Licensed Products to a Third Party trade
purchaser (the “Customer”) by Sunburst or its Affiliates, or, to the extent
permitted in this License, through Sublicenses, less the following items to the
extent they are paid or incurred or allowed and included in the invoice price:
(i) quantity, trade, and/or cash discounts or rebates actually granted or
accrued; (ii) amounts repaid or credited and allowances including cash, credit
or free goods allowances given by reason of billing errors and rebates actually
allowed or paid or accrued; (iii) amounts refunded or credited for Licensed
Products which were rejected or damaged or recalled; and (iv) taxes, tariffs,
customs duties and surcharges and other governmental charges incurred in
connection with the sale, exportation or importation of Licensed
Products;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    Party or Parties has the meaning set
forth in the Preamble above.

     

    
      	
               
      

            	
              Product Registration
      means, with respect to a Licensed Product, a NDA approved by the
      FDA in the United States or any other government approval required by a
      government or regulatory authority of a country in the Territory necessary
      to permit the marketing, import, use and sale of a Licensed Product in
      such country. Product Registration shall include governmental approval of
      pricing and/or reimbursement in jurisdictions where such approval is
      required (either legally or commercially) for commercial sale of a
      Licensed Product.

            

    

     

    
      	
               
      

            	
              Sub-license means any
      agreement with a Third Party (the “Sub-licensee”) in which Sunburst has
      granted (i) the right to make or sell a Licensed Product in the
      Territory, with respect to Licensed Products made and sold by such Third
      Party or (ii) the right to distribute a Licensed Product made by or
      for Sunburst in the Territory, provided that such Third Party is
      responsible for the marketing and promotion of such Licensed Product in
      the applicable territory and has the right to record sales of such
      Licensed Product for its account.

            

    

     

    
      	
               
      

            	
              Sub-license Fees means all gross
      consideration (including upfront and milestone payments) other than
      royalty payments that accrue to Sunburst under any
      Sub-license.

            

    

     

    
      	
               
      

            	
              Territory means, with
      respect to each Licensed Product, all countries of the world and their
      respective territories and
possessions.

            

    

     

    
      	
               
      

            	
              Third Party means any
      person or entity other than Hamilton, Sunburst, or any of their
      Affiliates.

            

    

     

    
      	1.2 	
              Words
      denoting the singular include the plural and vice versa, words denoting a
      gender include all genders, and words denoting persons include
      corporations and all other legal
entities.

            

    

     

    
      	1.3 	
              Unless
      the context otherwise requires, references in this License to any Clause
      will be deemed to be a reference to the relevant clause of this
      License.

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	1.4 	
              The
      headings are inserted for ease of reference only and will not affect the
      interpretation or construction of this
License.

            

    

     

     

    
      	2. 	
              LICENSE

            

    

     

    
      	2.1 	
              Hamilton
      hereby grants Sunburst an exclusive right and license under all of its
      rights in the Hamilton IP in the Territory to research, develop, use,
      keep, make, have made, market, distribute, sell, offer to sell, advertise
      or otherwise dispose of Licensed
Products.

            

    

     

    
      	2.2 	
              The
      license granted in Clause 2.1 shall, in relation to a particular country
      in the Territory, terminate on the expiry of the relevant Hamilton IP in
      the relevant country.

            

    

     

    
      	2.3 	
              Sunburst
      shall have the independent right to grant Sub-licenses of any or all of
      the rights granted to it pursuant to Clause 2.1 to Third Parties or
      Affiliates if, in respect of each Sub-license, Sunburst ensures that
      Hamilton’s rights under this License are maintained and that Sunburst
      meets the material terms and conditions of the
      License.  Sunburst shall also have the independent right to
      enter into sub-contract manufacturing, co-marketing or distribution
      agreements with Third Parties under which Sunburst appoints such Third
      Party as its agent to manufacture, promote or sell Licensed
      Products.  Within thirty (30) business days of the grant of any
      Sub-license to a Third Party, Sunburst shall provide Hamilton with a true
      copy of the Sub-license signed by Sunburst and such Third
      Party.  Any Sub-license that is granted in breach of this Clause
      2.3 shall be void but shall not otherwise affect this
    License.

            

    

     

    
      	3 	
              COMMERCIAL
      DEVELOPMENT AND PATENT RIGHTS

            

    

     

    
      	3.1 	
              Sunburst
      shall, and shall cause its Affiliates and Sub-licensees to, at its own
      cost and expense, use their commercially reasonable efforts to: (i) obtain
      all necessary and desirable Product Registrations, and (ii) commercialize
      the Licensed Products in the Territory to the maximum extent practicable
      and desirable.

            

    

     

    
      	3.2 	
              Sunburst
      shall independently undertake or procure the filing, prosecution, and
      maintenance of the Hamilton IP, in the name of the patent holder, and be
      responsible for any enforcement proceedings relating to them (including
      any interference or opposition proceedings); provided, however, that the
      Parties agree that Sunburst’s obligations hereunder shall extend only as
      such undertakings relate to the Licensed Products and Clause
      3.1.  Sunburst shall use their independent judgment to determine
      which actions are desirable for satisfaction of Clauses of 3.1 and 3.2 and
      is not required to consult with or obtain consent from Hamilton with
      respect to these actions.

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	3.3 	
              Each
      Party shall give the other immediate notice of any actual or suspected
      infringement of the Hamilton IP or any actual or suspected misuse or
      misapplication of the Hamilton IP by a Third Party which comes to that
      Party’s attention during the term of this
  License.

            

    

     

    
      	3.4 	
              If
      either Party receives any notice, claim, or proceedings from any Third
      Party alleging infringement of that Third Party’s intellectual property by
      reason of either Party’s activities in relation to this License or the use
      and exploitation of the Hamilton IP, the Party receiving that notice shall
      notify the other Party of the notice, claim, or proceeding within three
      (3) business days.

            

    

     

    
      	4 	
              CONSIDERATION

            

    

     

    
      	4.1 	
              Sunburst
      shall pay to Hamilton:

            

    

     

    
      	4.1.1 	
              Royalties
      of one percent of Net Sales of Licensed Products (“Direct
      Royalties”).

            

    

     

    
      	4.1.2 	
              Two
      percent of all payments received by Sunburst through Sub-license Fees
      (“Indirect Royalties”).

            

    

     

    
      	4.2 	
              The
      Direct Royalties and Indirect Royalties shall be paid quarterly in arrears
      within thirty (30) business days at the end of the calendar quarter in
      which relevant sales of Licensed Products occur.  Within thirty
      (30) business days of the end of each calendar quarter, Sunburst shall
      provide to Hamilton a written report detailing the sales of Licensed
      Products on a country-by-country basis, if any, made by Sunburst and the
      calculation of Net Sales and the royalty payable to Hamilton in respect of
      such Net Sales together with any Sub-license
  Fees.

            

    

     

    
      	4.3 	
              Where
      Hamilton does not receive payment of any sums due to it within thirty (30)
      business days of the relevant date set out in Clause 4.2 (the “Due Date”),
      interest shall accrue on the sum due and owing to Hamilton at the rate
      equivalent to an annual rate of six percent (6%), without prejudice to
      Hamilton’s right to receive payment on the Due
  Date.

            

    

     

    
      	4.4 	
              Sunburst shall keep
      true and accurate records and books of account, and shall require in its
      contracts with Sub-licensees that its Sub-licensees shall keep true and
      accurate records and books of account, containing all data necessary for
      the calculation of the amounts payable by Sunburst to Hamilton pursuant to
      Clause 4.1.  Such records and books of account shall be kept for
      six (6) years following the end of the calendar year to which they relate
      and Sunburst’s records and books of account shall, upon reasonable notice
      having been given by Hamilton, be open at reasonable times on business
      days for inspection by an independent firm of accountants appointed by
      agreement between the
Parties.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	5 	
              WARRANTIES
      AND LIABILITY

            

    

     

    
      	5.1 	
              Sunburst
      represents and warrants that it has legal power, authority and right to
      enter into this License and to perform its obligations hereunder and this
      License is valid, binding and enforceable against Sunburst in accordance
      with its terms.

            

    

     

    
      	5.2 	
              Hamilton
      represents and warrants
that:

            

    

     

    
      	
               
      

            	
              5.2.1  It
      is the sole owner of the Hamilton IP existing as of the Effective Date and
      has all right, title, claims, interest, and privilege arising from such
      ownership, free and clear of any liens, security interests, encumbrances,
      rights, or restrictions;

            

    

    

    
      	
               
      

            	
              5.2.2  The
      Hamilton IP existing as of the Effective Date and the subject matter of
      the Hamilton IP existing as of the Effective Date (a) are not the product
      or subject of any joint development activity or agreement with any Third
      Party, (b) are not the product or subject of any joint research activity
      or agreement with a Third Party, (c) are not the subject of any consortia
      agreement or cross-license, and (d) have not been financed in whole or in
      part by any Third Party; and any Hamilton IP which comes to exist after
      the Effective Date and the subject matter of any Hamilton IP which comes
      to exist after the Effective Date shall (w) not be the product or subject
      of any joint development activity or agreement with any Third Party, (x)
      not be the product or subject of any joint research activity or agreement
      with a Third Party, (y) not be the subject of any consortia agreement or
      cross-license, and (z) not have been financed in whole or in part by any
      Third Party;

            

    

    

    
      	
               

            	
              
                5.2.3
      The Hamilton IP are enforceable as of the Effective
      Date;

              

            

    

    

    
      	
               

            	
              
                5.2.4
      It has not assigned, licensed, or granted to any other person or
      entity any rights, title, claims, interest, or privilege in the Hamilton
      IP;

              

            

    

    

    
      	
               

            	
              
                5.2.5
      The Hamilton IP are not now and have not been subject to any action
      related to validity, enforceability, inventorship, or
      ownership.

              

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
               

            	
              
                5.2.6
      It has no knowledge of any fact that could give rise to a claim or
      allegation that any portion of the Hamilton IP is invalid or
      unenforceable, and it has not engaged in any conduct or omitted to perform
      any necessary act, and will not engage in any conduct or omit to perform
      any necessary act, that would be the grounds for invalidation of any of
      the Hamilton IP or preclude their
enforceability;

              

            

    

    

    
      	
               
      

            	
              5.2.7  It
      has all requisite legal and corporate power and authority to enter into
      this License, to consummate the transactions contemplated in this License,
      and to carry out and perform its obligations under the terms of this
      License; and

            

    

    

    
      	
               

            	
              
                5.2.8
      The execution, delivery, and performance of and compliance with
      this License has not resulted and will not result in any violation of,
      conflict with, constitute a default, or give rise to a right of
      termination, cancellation, or acceleration of any obligation or loss of
      any benefit under any agreement to which it is a
  party.

              

            

    

     

    
      	5.3 	
              Neither
      Party shall be liable to the other Party, its Affiliates or Sub-licensees
      in contract, tort, negligence, breach of statutory duty or otherwise for
      any loss, damage, cost or expense of an indirect or consequential nature
      (including any economic loss or other loss of revenue, profits, business
      or goodwill) arising out of or in connection with this License or the
      subject matter of this License.

            

    

     

    
      	5.4 	
              Nothing
      in this License shall be construed as a representation made or warranty
      given by either Party that any patent will issue based upon the Hamilton
      IP, that any patent included in the Hamilton IP which issues will be
      valid, or that the use of any Hamilton IP will not infringe the patent or
      proprietary rights of any other person.  Furthermore, neither
      Party makes any representation or warranty, express or implied, with
      respect to the Hamilton IP, including without limitation, any warranty of
      merchantability or fitness for a particular
  purpose.

            

    

     

    
      	5.5 	
              All
      Hamilton IP, including Know How and Materials, provided by or on behalf of
      either Party and data generated by or on behalf of either Party under this
      License are provided “as is” and without any representation or warranty,
      express or implied, including without limitation any implied warranty of
      merchantability or fitness for any particular purpose or any warranty that
      the use of the Know How and Materials will not infringe or violate any
      patent or other proprietary rights of any other
  person.

            

    

     

    
      	5.6 	
              Subject to Clause
      5.3, Sunburst shall be responsible for, indemnify and hold harmless
      Hamilton, its Affiliates and their officers, servants, and agents against
      any and all liability, loss, damage, cost or expense (including reasonable
      attorney’s fees and court and other expenses of litigation) (“Losses”)
      arising out of or in connection with Third Party claims relating to the
      discovery, research, development, manufacture, marketing, selling and
      disposal of Licensed Products by Sunburst, its Affiliates and/or
      any Sub-licensees, provided always that no
      such Losses arise or have arisen as a consequence of any breach of this
      License, breach of statutory duty, gross negligence, willfull omission or
      willful misconduct of or by Hamilton or its Affiliates or their officers,
      servants or agents.

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	5.7 	
              Subject
      to Clause 5.3, Hamilton shall be responsible for, indemnify and hold
      harmless Sunburst, its affiliates and their officers, servants and agents
      against any and all Losses, arising out of or in connection with Third
      Party claims that arise or have arisen as a consequence of any breach,
      whether actual, apparent, real, or perceived, of this License, breach of
      statutory duty, gross negligence, willfull omission or willful misconduct
      of or by Hamilton or its Affiliates or their officers, servants or
      agents.

            

    

     

    
      	5.8 	
              In
      the event that a Party intends to seek indemnification under Clause 5.6 or
      5.7, as applicable, it shall promptly inform the indemnifying Party of a
      claim after receiving notice of the claim and shall permit the
      indemnifying Party to direct and control the defense of the claim and
      shall provide such reasonable assistance as reasonably requested by the
      indemnifying Party.

            

    

     

    
      	 	
              INFRINGEMENT
      CLAIMS

            

    

     

    
      	
                       
      6.1

            	
              Infringement
      — Should it become necessary, in Sunburst’s sole discretion, to enforce
      the Hamilton IP against a Third Party infringement of any Hamilton IP,
      then the Parties agree that Sunburst shall take all reasonable steps
      toward abating the infringement and resolving all outstanding infringement
      claims at Sunburst’s sole expense. Hamilton agrees to assign to Sunburst
      any infringement damage claims that Hamilton may
  have.

            

    

    

    If
Sunburst has not substantially abated the infringement or filed suit against the
infringer(s) within 180 days after receiving notice of the infringement from
Hamilton, Hamilton shall have the right, upon 30 day’s written notice to
Sunburst, to file suit for infringement in Hamilton’s own name and at Hamilton’s
sole expense and it shall have the sole right to settle or recover on all
infringement claims.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
                        6.2

            	
              Other
      Actions — Hamilton agrees to pay all reasonable costs and expenses for any
      reasonable action necessary to defend the validity of any Hamilton IP,
      including but not limited to, bringing an infringement suit, declaratory
      judgment actions and reexamination proceedings. Hamilton shall be entitled
      to any award resulting from the defense of such an action. Hamilton shall
      have the right to decline to defend the validity of any Hamilton IP if,
      after reviewing the merits of the action, Hamilton, in its sole
      discretion, decides that a reasonable likelihood of success does not exist
      or the defense is imprudent.

            

    

     

    
      	7 	
              TERM
      AND TERMINATION

            

    

     

    
      	7.1 	
              This
      License shall come into effect on the Effective Date and, unless sooner
      terminated as provided hereunder, shall continue in full force and effect
      until the termination of all licenses granted to Sunburst pursuant to
      Clause 2.1 above.  Sunburst’s obligations to make royalty
      payments to Hamilton pursuant to Clause 4.1 shall expire with respect to a
      country upon the termination of the license in such country pursuant to
      Clause 2.2.

            

    

     

    
      	7.2 	
              If
      for any reason Sunburst or its Sub-licensees no longer wish to develop,
      make, market, sell and/or otherwise dispose of Licensed Products in the
      Territory, or in a particular country within the Territory, Sunburst shall
      so notify Hamilton in writing and this License shall terminate in the
      country or Territory, as may be applicable, ninety (90) business days from
      receipt of such notice.

            

    

     

    
      	7.3 	
              Either
      Hamilton on the one hand or Sunburst on the other hand (the “Terminating
      Party”) shall have the right to terminate this License forthwith upon
      giving written notice of termination to Sunburst on the one hand or
      Hamilton on the other hand as the case may be (the “Defaulting Party”),
      upon the occurrence of any of the following events at any time during this
      License:

            

    

     

    
      	 	
              7.3.1
      The Defaulting Party commits a material breach of this License which in
      the case of a breach capable of remedy has not been remedied ninety (90)
      days after the receipt by the Defaulting Party from the Terminating Party
      of written notice identifying the breach and requiring its
      remedy;

            

    

     

    
      	 	
              7.3.2 The Defaulting
      Party for a period of longer than ninety (90) days suspends payment of its
      debts or otherwise ceases or threatens to cease to carry on its business
      or becomes bankrupt or insolvent (including without limitation
      being deemed to be unable to pay its
debts);

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    
      
        	 	
                
                  7.3.3
      The
      Defaulting Party applies for a trustee, receiver or other custodian for it
      or a substantial part of its
  property;

                

              

      

       

    

    
      
        	 	
                7.3.4
      A
      trustee, receiver or other custodian is appointed for the Defaulting Party
      or for a substantial part of its
  property;

              

      

       

    

    
      
        	 	
                7.3.5
      Any
      bankruptcy, reorganization, debt arrangement, or other case of proceeding,
      is commenced in respect of the Defaulting
  Party.

              

      

       

    

    
      	8 	
              CONSEQUENCES
      OF TERMINATION

            

    

     

    
      	8.1 	
              Subject
      to Clause 8.2, upon termination of this
License:

            

    

     

    
      	
            	
              8.1.1
      The license rights granted to Sunburst by Hamilton pursuant to Clause 2
      shall terminate and any Sub-licenses granted by Sunburst pursuant to
      Clause 2.3 shall terminate;

            

    

     

    
      	 	
              8.1.2
      Sunburst shall pay to Hamilton within ninety (90) days all sums due to
      Hamilton hereunder which have accrued prior to the date of
      termination;

            

    

     

    
      	 	
              8.1.3
      Upon written request by Hamilton, Sunburst shall within thirty (30) days
      of receipt of said notice, return to Hamilton, or, at Hamilton’s option,
      destroy Know-How and Materials held by Sunburst.  Nothing herein
      shall require Sunburst to return publicly available
    materials.

            

    

     

    
      	8.2 	
              In
      the event of expiry of this License or the termination of this License by
      Sunburst pursuant to Clause 7.3, Hamilton shall grant to Sunburst an
      exclusive, perpetual, fully paid up, royalty-free license to the Hamilton
      IP to research, develop, use, keep, make, have made, market, distribute,
      sell, offer to sell, advertise or otherwise dispose of the Licensed
      Products in the Territory.

            

    

     

    
      	9 	
              NOTICES

            

    

     

    
      	9.1 	
              Any
      notice required to be given under this License shall be served personally
      or by first class recorded delivery post addressed to the relevant party
      at its registered office.  Any notice so given shall be deemed
      to have been duly served if personally delivered, on the day of delivery
      or if posted, two (2) days after posting and in proving posting it shall
      be sufficient to produce a copy of the notice properly addressed with the
      relevant post office receipt for dispatch by first class recorded
      delivery.

            

    

     

    
      	10 	
              GOVERNING LAW
      AND PRESUMPTIONS

            

    

     

    
      	10.1 	
              This
      License will be governed by and construed and interpreted in accordance
      with the laws of the State of New York and the Parties hereby submit to
      the exclusive jurisdiction of the courts of the State of New York and the
      United States of America.

            

    

     

    
      	10.2 	
              This
      License shall be deemed to be jointly created and drafted, and no
      presumption shall arise, and no provision shall be construed, against the
      drafter of a particular section or provision, when interpreting this
      License.

            

    

     

    
      	10.3 	
              Severability -
      If one or more provisions of this License are held to be unenforceable
      under applicable law, such provision(s) shall be excluded from this
      License and the balance of the License shall be interpreted as if such
      provision(s) were so excluded and shall be enforceable in accordance with
      its terms.

            

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

     

    
      	
               
      

            	
              IN WITNESS WHEREOF these presents
      consisting of this and the preceding eleven (11) pages together with the
      Schedules annexed have been executed as
follows:

            

    

     

     

    
      
        	 	 	 
	 	 	SIGNED by	 
	 	 	 	 
	 	 	HAMILTON
    ATLANTIC	 
	 	 	 	 
	
                August
      21, 2008

              	
                By:
      

              	/s/ Amy
      Wang   	 
	 	 	Amy
      Wang   	 
	 	 	Director          	 
	 	 	 	 

      

    

     

    
      
        	 	 	 
	 	 	SIGNED by	 
	 	 	 	 
	 	 	SUNBURST ACQUISITIONS III,
      INC.	 
	 	 	 	 
	
                August
      21, 2008  

              	
                By:
      

              	/s/ Robert
      Brooke   	 
	 	 	Robert
      Brooke   	 
	 	 	Chief
      Executive Officer 	 
	 	 	 	 

      

    

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    
 

     

    
      	
              SCHEDULE
      A

            

    

     

    The
Patents

    

      
        	
                Title

              	
                Applicant
      (VSL/Viragen or Hamilton Atlantic)

              	
                Priority
      Date and Number

              	
                VSL
      Reference / comment

              
	
                [redacted]
      for use as an immunological adjuvant

              	
                Hamilton
      Atlantic

              	
                GB
      0812046.1

                Priority
      date 1st
      July 2008

              	
                VG107

              
	
                Use
      of [redacted] in the Treatment of Cancer

              	
                Viragen
      Inc. and Viragen (Scotland) Ltd

              	
                GB
      0619816.2

                6th
      October 2006

              	
                VG106

                Note:
      This application terminated on 7 December 2007

              
	
                Use
      of [redacted] in the Treatment of Cancer

              	
                Viragen
      Inc. and Viragen (Scotland) Ltd

              	
                PCT/GB2007/003814

                filed
      8th October 2007

              	
                VG106

              
	
                [redacted]
      for use as an immunological adjuvant

              	
                Viragen
      Inc.

              	
                GB
      0619814.7

                6th
      October 2006

              	
                 

                VG106

              
	
                Composition
      and Method for treating disease

              	
                Viragen
      Inc.

              	
                GB
      0507963.7

                20th
      April 2005

              	
                VG106

                N.B.
      This application terminated on 21 April 2006

              
	
                Composition
      and Method for treating disease

              	
                Viragen
      Inc.

              	
                GB
      0522732.7

                7th
      November 2005

              	
                VG106

                N.B.
      This application terminated on 8 November 2006

              
	
                Composition
      and Method for treating disease

              	
                Viragen
      Inc.

              	
                US  60/741,734

                2nd
      December 2005

              	
                VG106

              
	
                Composition
      and method for treating viral infection

              	
                Viragen
      Inc.

              	
                PCT/GB2006/001432

                Filed
      20th
      April 2006

                (WO
      2006/11745)

                 

              	
                VG106

                Filed
      in EU, AU, IN,CH National phase

                 

              
	
                Multisubtype
      [redacted] for use as an immunological adjuvant

              	
                Viragen
      Inc.

              	
                GB
      0619815.4

                6th
      October 2006

              	 
      

      

       

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

     

    SCHEDULE
B

     

    

    A.          The
following books and records, currently stored at the premises of PWC
Scotland:

    
    

     

    
      	Box
      Number  	Contents	 	 
	 	 	 	 
	334314711	Anti CD55 Patent App
      - Countries A-G	 	 
	 	CD55 Correspondence
      2004-2005	 	 
	 	CD55 Correspondence
      2002-2003	 	 
	 	Anti CD55 Patent App
      - Countries H-Z	 	 
	 	

              CD55
      Binding

            	 	 
	 	 	 	 
	334314712    	CRT License
      Correspondence	 	 
	 	CRCT Contract
      Copies	 	 
	 	 	 	 
	334314713	[redacted]	 	 
	 	[redacted]	 	 
	 	[redacted]
      Cancer	 	 
	 	[redacted] Viral
      1	 	 
	 	[redacted] Viral
      2	 	 
	 	[redacted] as
      Adjuvant	 	 
	 	[redacted] as an
      Immunological Adjuvant VG108	 	 
	 	[redacted] as an
      Immunological Adjuvant VG107	 	 
	 	 	 	 
	334314715        	VG106 Freedom to Op
      Search Aug/Sep 07	 	 
	 	Patent Application
      WO 01/25438 A2	 	 
	 	Patent Application
      WO 83/04053	 	 
	 	US Patent US6610830
      B1	 	 
	 	Patent Application
      WO 02/36627 A2	 	 
	 	Patent Application
      WO 2006/079121 A2	 	 
	 	Patent Application
      WO 2007/000769 A2	 	 
	 	Patent Application
      WO 2004/031352 A2	 	 
	 	Patent Application
      WO 2004/022593 A2	 	 
	 	Patent Application
      WO 2006/020580 A2	 	 
	 	Patent Application
      WO 2004/046365 A2	 	 
	 	 	 	 
	334314717   	Patent Info
      [redacted]	 	 
	 	 	 	 
	334314718     	Specific Binding
      Members	 	 
	 	 	 	 
	334314721	Algonomics
    NV	 	 
	 	Lonza
      Biologics	 	 
	 	Southern Research
      Institute	 	 
	 	 	 	 
	334314731	Antipoliferation
      Patent Book 1	 	 
	 	General & Daudi
      Cell Line	 	 
	 	WM-266-4 Cell
      Line	 	 
	 	Malme - 3M Cell
      Line	 	 
	 	General & Daudi
      Cell Line	 	 
	 	General & Daudi
      Cell Line Book 3	 	 
	 	Skemel 5 Cell
      Line	 	 
	 	Skemel 28 Cell
      Line	 	 
	 	Skemel 2 Cell
      Line	 	 
	 	Mewo Cell
    Line	 	 
	 	HT-144 Cell
      Line	 	 
	 	WM35 Cell
    Line	 	 
	 	G-361 Cell
      Line	 	 
	 	[redacted] Subtypes
      Book 8	 	 
	 	General Purification
      Book 1	 	 
	 	Cell Culture Work
      Book 1	 	 
	 	Chimeric Antibodies
      Analysis Book 2	 	 
	 	General Assay
      Book	 	 
	 	Chimeric Antibody
      Analysis 1	 	 
	 	CD55 Book
1	 	 

    

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

      
        	
                334314732

              	 
      	
                CD55
      Book 2

              
	 
      	 
      	
                MDR
      Project Book 1

              
	 
      	 
      	
                A-375
      Cell Line

              
	 
      	 
      	
                791T/36
      Research Book 2

              
	 
      	 
      	
                General
      Molecular/Cell Culture Work Book 1

              
	 
      	 
      	
                791T36
      Book 8

              
	 
      	 
      	
                791T36
      Research Book 10

              
	 
      	 
      	
                791T36
      Research Book 12

              
	 
      	 
      	
                PLD79

              
	 
      	 
      	
                791T
      Research Book 14

              
	 
      	 
      	
                General
      Cell Culture Book 2

              
	 
      	 
      	
                VG106
      Book 1

              
	 
      	 
      	
                VG107
      Book 1

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                334314736

              	 
      	
                105AD7
      (Onyvax 105)

              
	 
      	 
      	
                EN-CD55

              
	 
      	 
      	
                Complement

              
	 
      	 
      	
                Panorex
      (Edrecolomab)

              
	 
      	 
      	
                Rituximab

              
	 
      	 
      	 
      
	
                334314737

              	 
      	
                Monoclonal
      Antibody

              
	 
      	 
      	
                Cancer
      Mabs

              
	 
      	 
      	
                Cancer

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                334314746

              	 
      	
                Lonza
      CD55/R24

              
	 
      	 
      	
                IFN
      Subtypes

              
	 
      	 
      	 
      
	
                334314747

              	 
      	
                VG102

              
	 
      	 
      	
                VG106

              
	 
      	 
      	 
      
	
                334314748

              	
                Lab
      Books

              	
                Dev100
      - [redacted] Work 3

              
	 
      	 
      	
                Dev101
      - [redacted] Comparison Book 7 C Haslam

              
	 
      	 
      	
                Dev106
      - 791T36 6

              
	 
      	 
      	
                Dev108
      - General Cell Culture 2

              
	 
      	 
      	
                Dev124
      - 791T Research 7 L Davidson

              
	 
      	 
      	
                Dev125
      - [redacted] Comparison 8

              
	 	 	

                Dev126
      - Expression & Production of Human
  Antibodies

              

      

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    
      
        	
                334314749

              	
                Lab
      Books

              	
                Dev
      75 - Recombinant [redacted]

              
	 
      	 
      	
                Dev
      76 - [redacted]

              
	 
      	 
      	
                Dev
      77 - CD55 Antiody & Derivatives 1

              
	 
      	 
      	
                Dev
      78 - 791T36 3

              
	 
      	 
      	
                Dev
      79 - [redacted] Comparison 3

              
	 
      	 
      	
                Dev
      83 - [redacted] Comparison 6

              
	 
      	 
      	
                Dev
      86 - [redacted] Work 2

              
	 
      	 
      	
                Dev
      89 - General Cell Culture 1

              
	 
      	 
      	
                Dev
      90 - Recombinant Interferon 3

              
	 
      	 
      	
                Dev
      93 - [redacted] Comparison 4

              
	 
      	 
      	
                Dev
      94 - CD55

              
	 
      	 
      	
                Dev
      95 - CD55 2

              
	 
      	 
      	
                Dev
      96 - Bioassay Cell Lines 1

              
	 
      	 
      	
                Dev
      96a - [redacted] Work 1

              
	 
      	 
      	
                Dev
      97 - 791T36 5

              
	 
      	 
      	 
      
	
                334314750

              	
                Lab
      Books

              	
                Dev
      48 - Antibody Work

              
	 
      	 
      	
                Dev
      49 - Dev of [redacted] Elisa Based Assay Bk 1

              
	 
      	 
      	
                Dev
      50 - Molecular Science Bk 2

              
	 
      	 
      	
                Dev
      54 - Mab Purification Bk 6

              
	 
      	 
      	
                Dev
      55 - 791T36 Bk 1

              
	 
      	 
      	
                Dev
      61 - [redacted] Research Bk 1

              
	 
      	 
      	
                Dev
      62 - Molecular Science Bk 4

              
	 
      	 
      	
                Dev
      63 - 791T36 Bk 2

              
	 
      	 
      	
                Dev
      66 - Recombinant Interferon Bk 1

              
	 
      	 
      	
                Dev
      67 - [redacted] Research Bk 2

              
	 
      	 
      	
                Dev
      72 - [redacted] Comparison Bk 5

              
	 
      	 
      	 
      
	
                334314751

              	
                Lab
      Books

              	
                Dev
      171 - R24 & 791T36 Antibody 2

              
	 
      	 
      	
                Dev
      173 - 791T36 Research 9 L Davidson

              
	 
      	 
      	
                Dev
      186 - [redacted] P Barnard

              
	 
      	 
      	 
      
	
                334314752

              	
                Lab
      Books

              	
                Dev
      202 - [redacted] Purification 2 J Smith

              
	 
      	 
      	
                Dev
      209 - [redacted] 

              
	 
      	 
      	
                Dev
      212 - [redacted] 

              
	 
      	 
      	
                Dev
      216 - Real Time PCR Book 1 C Haslam

              
	 
      	 
      	
                Dev
      219 - [redacted] J Smith

              
	 
      	 
      	
                Dev
      223 - [redacted] J Smith

              
	 
      	 
      	
                Dev
      228 - 791T36 13 L Davidson

              
	 
      	 
      	
                Dev
      231 - [redacted] J Smith

              
	 
      	 
      	 
      
	
                334314753

              	
                Lab
      Books

              	
                Dev
      134 - [redacted] 5 P Barnard

              
	 
      	 
      	
                Dev
      141 - [redacted] 1

              
	 
      	 
      	
                Dev
      146 - Anti CD59 - Antibodes 1

              
	 
      	 
      	
                Dev
      153 - [redacted] P Barnard

              
	 
      	 
      	
                Dev
      160 - [redacted] 2 N McLean

              
	 
      	 
      	
                Dev 161 - R24 & 791T36
      Antibody Expression 1 C Haslam

              
	 
      	 
      	
                Dev
      167 - [redacted] & Subtypes Purification 1 J Smith

              
	 
      	 
      	 
      
	
                334314755

              	 
      	
                [redacted]/N72D

              
	 
      	 
      	
                CD55
      General Info

              
	 
      	 
      	 
      
	
                334314764

              	 
      	
                Spur
      & CD55 Applications &
Claims

              

      

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    
 

    
      
        	 
      	 
      
	
                334314765

              	
                Spur
      Grant Claims

              
	 
      	 
      
	 
      	 
      
	
                334314787

              	
                VG106
      Anti-viral Search Report

              
	 
      	
                [redacted]
      Folders 1-3

              
	 
      	
                VG106
      Intellectual Property File

              
	 
      	 
      
	 
      	 
      
	
                334314792

              	
                CD55

              
	 
      	
                CRCT

              
	 
      	
                General
      Antibody Gene Stuff CD55

              
	 
      	
                E
      Coli Recombinants

              
	 
      	
                CD46

              
	 
      	
                Peptech

              
	 
      	
                Dyax

              
	 
      	
                A6
      Studies Archive

              
	 
      	 
      
	 
      	 
      
	
                334314799

              	
                VG106

              
	 
      	
                VG106
      Aptuit

              
	 
      	
                VG106
      Xenograft

              
	 
      	
                VG106
      / Multiferon Adjuvants

              
	 
      	
                VG107

              
	 
      	
                IFN-X
      Subtype Exploitation

              
	 
      	
                VG102
      IP

              
	 
      	
                VG102
      General

              
	 
      	
                VG102
      Immunogenicity

              
	 
      	
                CD55
      Literature

              
	 
      	 
      

      

    

    

    
      	
              B.

            	
              The
      following cell lines currently preserved in liquid nitrogen and stored in
      standard freezers at the premises of Biobest
  Laboratories:

            

    

    

    
      	
              (i)

            	
              Chinese
      Hamster Ovary (CHO) cell line(s) producing the biological protein referred
      to as VG102 in its three variant
forms;

            

    

    

    
      	
              (ii)

            	
              Chinese
      Hamster Ovary (CHO) cell line producing the biological protein referred to
      as VG106; and

            

    

    

    
      	
              (iii)

            	
              Chinese
      Hamster Ovary (CHO) cell line producing the biological protein referred to
      as VG107

            

    

     

    
      * The
above redacted information is confidential in nature and, as a result, the
company has intentionally omitted this information from this
filing.  The Company will file the omitted portion with the Securities
and Exchange Commission requesting confidential treatment.

    

     

     

    16

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