Document:

Employment Agreement

 Exhibit 10.35 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT (“Agreement”) effective as of the 1st day of
September 2005 
 BETWEEN: 
 Sterling Mining
Company 
 2201 Government Way, Suite E 
 Coeur d’Alene,
ID 83814 
 (the “Company”) 
 -and- 
 James N. Meek 
 Senior
Vice President and CFO 
 9027 Maple Street 
 Hayden, ID 83835

 (the “Executive”) 
 RECITALS 
 WHEREAS, the Company recognizes that the current business environment makes it difficult to attract and
retain highly qualified executives unless a certain degree of security can be offered to such individuals against organizational and personnel changes which frequently follow changes in control of a corporation; and 
 WHEREAS, the Company desires to assure fair treatment of its executives in the event of a Change in Control (as defined below) and to allow them to make
critical career decisions without undue time pressure and financial uncertainty, thereby increasing their willingness to remain with the Company notwithstanding the outcome of a possible Change in Control transaction; and 
  

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 WHEREAS, the Company recognizes that its executives will be involved in evaluating or negotiating any
offers, proposals or other transactions which could result in Changes in Control of the Company and believes that it is in the best interest of the Company and its stockholders for such executives to be in a position, free from personal financial
and employment considerations, to be able to assess objectively and pursue aggressively the interests of the Company’s stockholders in making these evaluations and carrying on such negotiations; and 
 WHEREAS, the Board of Directors (the “Board”) of the Company believes it is essential to provide the Executive with compensation arrangements
upon a Change in Control which provide the Executive with individual financial security and which are competitive with those of other corporations, and in order to accomplish these objectives, the Board has caused the Company to enter into this
Agreement. 
 WHEREAS the Executive is an Officer of the Company and is employed in the Business (as defined below) operated by the Company;

 WHEREAS, the Board of Directors of the Company (the “Board”), has determined that it is in the best interests of the Company and
its shareholders to assure that the Company will have the continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change in Control (as defined herein). The Board believes it is imperative to diminish the
inevitable distraction of the Executive by virtue of the personal uncertainties and risks created by a pending or threatened Change in Control and to encourage the Executive’s full attention and dedication to the current Company and in the
event of any threatened or pending Change in Control, and to provide the Executive with compensation and benefits arrangements upon a Change in Control that ensure that the compensation and benefits expectations of the Executive will be satisfied
and that are competitive with those of other corporations. Therefore, in order to accomplish these objectives, the Board has caused the Company to enter into this Agreement. 
 NOW THEREFORE in consideration of the promises and mutual covenants herein contained, the parties hereto agree as follows: 
 1. 
 Defined Terms 
 (a) 
 “Cause” shall mean
(i) the continued failure by the Executive to perform his material responsibilities and duties toward the Company (other than any such failure resulting from the Executive’s incapacity due to physical or mental illness), (ii) the
engaging by the Executive in willful or reckless conduct that is demonstrably injurious to the Company monetarily or otherwise, 

  

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(iii) the conviction of the Executive of, or a plea of nolo contendre to, a felony or a crime of moral turpitude, or (iv) the commission or
omission of any act by the Executive that is materially inimical to the best interests of the Company and that constitutes on the part of the Executive common law fraud or malfeasance, misfeasance, or nonfeasance of duty; provided, however, that
“cause” shall not include the Executive’s lack of professional qualifications. For purposes of this Agreement, an act, or failure to act, on the Executive’s part shall be considered “willful” or “reckless”
only if done, or omitted, by him not in good faith and without reasonable belief that his action or omission was in the best interest of the Company. The Executive’s employment shall not be deemed to have been terminated for “cause”
unless the Company shall have (A) given or delivered to the Executive reasonable notice setting forth the reasons for the Company’s intention to terminate the Executive’s employment for “cause,” and (B) provided the
Executive a reasonable opportunity to cure the act or omission that is the basis for the proposed termination for cause, to the extent curable. 
 (b) 
 “Change in Control” shall mean: 
 (i) 
 The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or more of either
(A) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this Section 1(d), the following acquisitions shall not constitute a Change in Control: (i) any acquisition directly
from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Affiliated Company or (iv) any acquisition by any corporation
pursuant to a transaction that complies with Sections 1(b)(iii)(A), 1(b)(iii)(B) and 1(b)(iii)(C); 
 (ii) 
 Any time at which individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a 

  

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majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board; 
 (iii) 
 Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of its
subsidiaries or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (A) all or substantially all of
the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50%
of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation that, as a result of such transaction, owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same
proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from
such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 50% or more of, respectively, the then-outstanding
shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business
Combination, and (C) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the
action of the Board providing for such Business Combination; 
 (iv) 
 A sale or disposition of all or substantially all of the assets of the Company to an unrelated party; or 
  

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 (v) 
 Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
 (c)

 “Code” shall mean the Internal Revenue Code as of 2005, as amended. 
 (d) 
 “Disability,” for purposes
of this Agreement, shall mean total disability as defined in any long-term disability plan sponsored by the Company in which the Executive participates, or, if there is no such plan or it does not define such term, then it shall mean the physical or
mental incapacity of the Executive that prevents him from substantially performing the duties of the office or position to which he was elected or appointed by the Board for a period of at least 180 days and the incapacity is expected to cause death
or last at least one (1) year. 
 (e) 
 The “Change in Control Date” shall be any date during the term of this Agreement on which a Change in Control occurs. Anything in this Agreement to the contrary notwithstanding, if the Executive’s
employment or status as an elected officer with the Company is terminated within six (6) months before the date on which a Change in Control occurs, and it is reasonably demonstrated that such termination (i) was at the request of a third
party who has taken steps reasonably calculated or intended to effect a Change in Control or (ii) otherwise arose in connection with or anticipation of a Change in Control, then for all purposes of this Agreement the “Change in Control
Date” shall mean the date immediately before the date of such termination. 
 (f) 
 “Parent” shall mean any entity that directly or indirectly through one or more other entities owns or controls more than 50 percent of the
voting stock or common stock of the Company. 
 (g) 
 “Subsidiary” shall mean a company 50 percent or more of the voting stock, common stock or other economic interests of which are owned, directly or indirectly, by the Company. 
 (h) 
 “Board” shall mean the Board
of Directors of the Company; 
  

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 (i) 
 “ Business” shall mean the business presently or hereafter carried on by the Company in the area of mineral resource exploration and development; 
 (j) 
 “Stock Option Plan” shall mean the incentive stock option plan of the Company for directors,
officers, employees and other service providers of the Company. 
 2. 
 Employment 
 (a) 
 The Company shall employ the Executive and the Executive shall serve the Company and its subsidiaries as Senior Vice President and CFO or in such other capacity or capacities as may be determined by the Board from
time to time. 
 (b) 
 The Executive represents
that he has the required skills and experience to perform the duties required of him as Senior Vice President and CFO and agrees to be bound by the terms and conditions of this Agreement. 
 (c) 
 The Executive will be employed on a full-time basis for
the Company and will devote himself exclusively to the Business and will not be employed or engaged in any capacity in any other business which is in competition with the Business of the Company, without the prior written approval of the Company.

 (d) 
 The Executive acknowledges that in
carrying out his duties and responsibilities: 
 (i) 
 the Executive shall comply with all lawful and reasonable instructions as may be given by the Chief Executive Officer of the Company or the Board; 
 (ii) 
 the Executive will perform his duties
with the highest level of integrity and in a manner which shall engender the Company’s complete confidence in the Executive’s relationship with other employees of the Company and with all persons dealt with by the Executive in the course
of employment; and 
  

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 (iii) 
 the Executive will perform his duties in a diligent, loyal, productive and efficient manner and use his best efforts to advance the Business and goodwill of the Company. 
 (e) 
 The Executive is employed on a full-time basis for the
Company and he understands that the hours of work involved will vary and be irregular and are those hours required to meet the objectives of the employment. 
 3. 
 Compensation and Benefits  
 As compensation for the services to be rendered by the Executive to the Company, the Company agrees to provide the remuneration and benefits set out in this clause 3. 
 (a) 
 Base Salary and Discretionary Bonus 
 The Executive shall be paid a minimum annual base salary of US $120,000.00 to be reviewed annually by the Board. Said salary shall be subject to all statutory and other
deductions and shall be paid monthly or bi-monthly, in arrears, by check or deposit, or such other periodic installments as may be from time to time agreed. In addition, the Executive is entitled to receive a discretionary performance bonus in such
amount, if any, as the Board in its sole discretion may determine. If a Change in Control occurs, a bonus will automatically become payable and not be less than 40% of the Executive’s annual salary. The minimum base salary shall become
effective September 1, 2005. As soon as the Company has raised the sum of $10,000,000 (ten million), to the treasury in private placements, exercise of stock warrants, exercise of stock options, IPO’s or upon Change in Control in which the
Executive retains his current position, which ever occurs first, the annual salary will increase to US $180,000.00. The Executive shall also be paid, at his choosing a combination of cash and/or in common stock (discounted at 10%): 
  

	 	(i)	the sum of $25,000 within 90 days of the filing of the From 10, 

  

	 	(ii)	the sum of $25,000 within 90 days of an approved listing on the Bulletin Board, 

  

	 	(iii)	the sum of $20,000 within 90 days of applying for a listing on the AMEX and 

  

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	 	(iv)	the sum of $50,000 upon approval for trading on the AMEX. 

 (b)

 Grant of Stock Options, Shares, and Bonuses 
 The
Executive shall be eligible to receive stock options granted pursuant to the Stock Option Plan, and, as may be effected for bonuses, on such terms and conditions as the Board in its discretion may determine but at a minimum of 100,000 shares per
year. Upon a Change of Control, any and all Common Shares, options, or other forms of securities issued by the Company and beneficially owned by the Executive (whether granted before or after the date of this Agreement) that are unvested,
restricted, or subject to any similar restriction that would otherwise require continued ownership by the Executive beyond the Change of Control Date in order to be vested in the hands of the Executive shall vest automatically without further action
by the Board. 
 (c) 
 Health (Medical and Vision), Dental,
Long Term Disability and Life Insurance 
 The Executive shall be entitled to receive and participate in health (medical and vision), dental,
long-term disability and life insurance programs as are made available by the Company to other employees holding similar positions of importance to the Company, provided that the Company may modify, suspend, or discontinue any or all of such
benefits for its employees generally or for any group thereof, without obligation to replace any such modified, discontinued or suspended benefit with any other benefit or to otherwise compensate the Executive in respect thereof. 
  

	(d)	

 Stock Appreciation Award in the Event of a Change in Control

 In the event of a contemplated Change in Control, the Executive shall become entitled to receive an additional equity stake equal to the equity
stake he then holds, contingent upon the occurrence of a Change in Control. Executive’s equity stake shall include all shares, options (vested and unvested), and warrants in Executive’s name or beneficially owned by Executive, and the
additional equity stake shall be provided in kind to the Executive. 
  

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	(e)	

 Long-term Incentive 
 The long-term incentive obligation will require the Company to issue stock options granted pursuant to the Stock Option Plan, 100,000 shares of Company stock per year
which will vest at 25% per year on the grant date. 
 (f) 
 Signing Bonus 
 A signing bonus award of 15,000 shares of restricted common stock will be issued to the Executive within 60 days of
this agreement. 
 4. 
 Vacation
 
 The Executive will be entitled to twenty (20) days of vacation for the first five years of employment and twenty-five (25) days after
five years of employment during each twelve (12) month period plus usual statutory and other public holidays, the timing of such vacation to be mutually agreed upon between the Executive and the Company. In that the spirit of this vacation
provision is that the Executive should take vacation but may, because of the duties required of the Executive, prevent him from taking said vacation, the Executive shall be paid the cash equivalent of any unused vacation entitlement at the end of
each year. 
 5. 
 Expenses 

 The Executive shall be reimbursed by the Company for any business, educational or organizational membership expenses incurred as a result of his work
on behalf of the Company. The Company shall reimburse the Executive for such expenses upon presentation of supporting documentation satisfactory to the Company in accordance with the tax principles applicable in the United States for such
reimbursement and the Company’s established reimbursement policies, as those policies may be modified from time to time in the Company’s discretion. Once the Company has raised US $10,000,000 (ten million dollars) after the
September 1, 2005 employment agreement date, the Executive will be entitled to receive either a company vehicle or an auto allowance, paid on a monthly basis, equivalent to a monthly lease of a vehicle approved by the Company. 
  

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 6. 
 Terms of the Agreement and Termination  
 (a) 
 This Agreement shall commence on September 1, 2005 and shall terminate three years hence on September 1, 2008, unless terminated pursuant to the provisions hereof. 
 (b) 
 The Executive may terminate his employment pursuant to
this Agreement by giving at least two (2) months’ advance notice in writing to the Company. The Company may waive such notice, in whole or in part and if it does so, the Executive’s entitlement to remuneration and benefits pursuant to
this Agreement will cease on the date it waives such notice. 
 (c) 
 The Executive’s employment shall be terminated upon the death of the Executive whereupon all stock options granted to the Executive shall immediately vest and shall be exercisable by the Executive’s heirs,
executors, administrators, or personal representatives in accordance with the terms of the Stock Option Plan. 
  

	(d)	

 The Executive’s employment shall be terminated upon
the Disability of the Executive whereupon all stock options granted to the Executive shall immediately vest and shall be exercisable by the Executive in accordance with the terms of the Stock Option Plan. 
 (e) 
 In the event of an Effective Change of Control, the
Executive’s employment shall be deemed to have been terminated without cause and the Company shall be obligated to pay the Executive the amount of severance payments calculated in accordance with subparagraph 6(f) hereof in addition to the
benefits of subparagraph 3(b) hereof. 
  

	(f)	

 The Executive’s employment may be terminated without
cause by majority vote of the Board. In the event that the Executive’s employment is so terminated, or is deemed to have been terminated pursuant to subparagraph 6 (e) herein, without cause, any stock options granted but not vested shall
be deemed to have immediately vested and the Company shall pay to the Executive 36 months salary, in compensation for the Executive’s loss of employment, together with a payment equal to 100% of the greater of any target 

  

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bonus or bonus actually earned for each year in such 24 month period and any other compensation which the Executive is entitled to receive. Substantially
similar health related benefits as provided by the company will also continue for a period of 24 months. The Executive shall not have the duty to mitigate damages. For the purpose of calculating such payments, all Federal and State taxes and Federal
excise taxes (parachute taxes) shall be grossed-up such that the Executive receives the amount specified after all taxes have been paid. 
 (g) 

The Company may terminate the Executive’s employment without notice or payment in lieu thereof, for cause. 
 7. 
 Notices  
 (a) 
 Any notice required or permitted to be given to the
Executive shall be sufficiently given if delivered to the Executive personally or if mailed by registered mail to the Executive’s address disclosed on the face page hereof (or such address as the Executive may later provide in writing to the
Chief Executive Officer or Secretary of the Company). 
 (b) 
 Any notice required or permitted to be given to the Company shall be sufficiently given if delivered to the Chief Executive Officer or Secretary of the Company personally or if mailed by registered mail to the
Company’s head office at its address disclosed on the face page hereof. 
 (c) 
 Any notice given by mail shall be deemed to have been given forty-eight hours after the time it is posted. 
 8. 
 Entire Agreement  
 This Agreement terminates, replaces and supersedes all prior agreements, oral or written, between the parties hereto. This Agreement contains the final and entire
understanding and agreement between the parties hereto with respect to the subject matter hereof, and they shall not be bound by any terms, conditions, statements, covenants, representations, or warranties, oral or written, not herein contained with
respect to the subject matter hereof. 
  

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 9. 
 Headings  
 The headings in this Agreement are for convenience of reference only, and under no circumstances should they be construed
as being a substantive part of this Agreement nor shall they limit or otherwise affect the meaning hereof. 
 10. 
 Warranty  
 The parties represent and warrant
that there are no restrictions, agreements or limitations on their rights or ability to enter into and perform the terms of this Agreement. 
 11.

 Severability  
 In the event
that any provision of this Agreement is found to be void, invalid, illegal or unenforceable by a court of competent jurisdiction, such finding will not affect any other provision of this Agreement. If any provision of this Agreement is so broad as
to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. 
 12. 
 Modification  
 Any modification of this
Agreement must be in writing and signed by both the Executive and the Company or it shall have no effect and shall be void. 
 13. 
 Waiver  
 The wavier by either party of any
breach or violation of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach or violation. 
  

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 14. 
 Assignment of Rights  
 The rights which accrue to the Company under this Agreement shall pass to its successors or assigns. The
rights of the Executive under this Agreement are not assignable or transferable in any manner. 
 15. 
 Independent Legal Advice  
 The Executive
acknowledges that he has read and understands this Agreement, and acknowledges that he has had the opportunity to obtain independent legal advice with respect to it. 
 16. 
 Time of Essence  
 Time shall be of the essence of this Agreement. 
 17. 
 Governing Law  
 The Agreement shall be governed
by and construed in accordance with the laws of the State of Idaho. Any dispute between the Company and Executive shall be brought exclusively in the State or Federal Courts located in Idaho State. In the event of such dispute, the prevailing party
shall be entitled to recover its reasonable attorney’s fees and costs. 
 18. 
 Indemnification  
 The Executive, including the
heirs, executors, administrators, or estate of such person, shall be indemnified by the Company to the full extent permitted by the Idaho Business Corporations Act against any liability, judgment, fine, amount paid in settlement, costs and expenses,
including attorney fees, incurred as a result of any claim arising in connection with such person’s conduct in his capacity, or in connection with his status as an officer in performance of his duties for the Company. The indemnification
provided by this provision shall not be exclusive of any other rights to which he may be entitled under any other By-laws or agreement, vote of disinterested Directors, or otherwise, and shall not limit in any way any right that the Company may have
to make different or further indemnification with respect to the same or different person or classes of persons. 
  

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 IN WITNESS WHEREOF the parties have duly executed this Agreement effective as of the date first written above.

 STERLING MINING COMPANY 
  

					
		 	By:	 	
	 /s/ James N. Meek
	 		 	 /s/ Ray DeMotte

	James N. Meek	 		 	Ray DeMotte
		 		 	President & CEO

  

	
	 /s/ Kevin G. Shiell

	Kevin G. Shiell
	
	 /s/ Carol Stephan

	Carol Stephan
	
	 /s/ Dave Waisman

	Dave Waisman

 ATTEST: 
  

	
	 /s/ Mike Mooney

	Mike Mooney, Secretary

  

 14Letter of Intent

     

      
        

      

    

    
Exhibit 10.1

     

     

    SAMARIUM
      TECHNOLOGY GROUP, LTD.

    

    

    January
      31, 2007

    

    LETTER
      OF INTENT

    

    

    Cryobanks
      International, Inc.

    

    
      	
              PERSONAL
                AND CONFIDENTIAL

            

    

    

    Cryobanks
      International, Inc.

    270
      S.
      North Lake Blvd.

    Altamonte
      Springs, Florida 32701

    

    On
      the
      terms and subject to the conditions set forth below, Samarium Technology Group,
      Ltd., a BVI Company (the “Investor”)
      will
purchase
      Nine Million Dollars ($9,000,000)
      of Class
      A Secured Convertible Debentures of Cryobanks International, Inc. (the
“Issuer”)
      on the
      principal terms set forth below. Except for the Confidentiality Provision,
      this
      letter is non binding and subject to the parties entering into formal agreements
      setting forth their respective rights and obligations. Such agreements will
      contain customary representations, warranties and indemnifications. This
      term sheet will expire on January 31, 2007.
      The
      material terms of the offering are set forth below:

    

    

      
        	
                Issuer

                 

              	
                Cryobanks
                  International, Inc.

              
	
                 

                Investor

                 

              	
                 

                Samarium
                  Technology Group, Ltd. or its designees

                 

              
	
                 

                Securities

                 

              	
                 

                Class
                  A Secured Convertible Debenture

                 

              
	
                 

                Debenture
                  Terms

                 

              	
                 

                The
                  Convertible Debenture shall bear interest at the rate of ten percent
                  per
                  annum, and shall be convertible into 7.50% of the common stock
                  of the
                  Issuer on a fully diluted basis. The Convertible Debenture shall
                  be all
                  due and payable on December 31, 2008. The Convertible Debenture
                  shall
                  automatically convert into registered, freely tradeable common
                  stock of
                  BioStem, Inc. upon the completion of the merger of BioStem and
                  Cryobanks
                  pursuant to that certain Agreement and Plan of Merger, dated November
                  22,
                  2005, as amended to date, and the subsequent effectiveness of a
                  registration statement on Form S-4 (or such other available registration
                  statement as may be available in the opinion of the Issuer’s counsel) (the
                  “Effective Date”).

                 

              

      

    

     

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    

    
      	
               

              Closing

               

            	
               

              At
                Closing, the Investor shall wire good and immediately available funds
                in
                the amount of $9,000,000 to the attorney-client trust account of
                the
                Issuer at Corporate Legal Services, LLP. $2,000,000 of such funds
                shall be
                released immediately to the Issuer. The balance of the funds shall
                not be
                released until the Effective Date.

               

            
	
               

              Registration

               

            	
               

              The
                Issuer shall take all action necessary to complete the purchase of
                not
                less than eighty percent (80%) of the outstanding common stock of
                the
                Issuer by BioStem, Inc. within thirty days following the Closing,
                complete
                the merger with BioStem, Inc. as set forth in the Agreement and Plan
                of
                Merger, and complete the filing of the registration statement on
                Form S-4
                within sixty days of the Closing. Issuer shall take such action as
                is
                necessary to cause the registration statement to be declared effective
                within 150 days following the Closing. In the event the registration
                statement is not declared effective within such 150 day period, the
                Convertible Debenture shall thereafter bear interest at fifteen percent
                (15%) per annum, and the Issuer shall commence monthly interest only
                payments starting the first day of the month following the expiration
                of
                such 150 day period.

               

            
	
               

              Board
                Representation

               

            	
               

              Upon
                the Closing, Issuer shall take such action as is required to increase
                the
                number of directors on the Issuer’s board of directors to five, and
                Investor shall appoint two members to the Issuer’s board of directors who
                shall commence their service immediately following the
                Closing.

               

            

    

     

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

      
        	
                 

                Warrants

                 

              	
                 

                The
                  Investor shall receive a five-year warrant (the “Class A Investor
                  Warrant”) to purchase up to 3.5% of the outstanding common stock of the
                  Issuer on a fully diluted basis (including without limitation the
                  shares
                  issuable upon conversion of the Secured Debenture), at an exercise
                  price
                  equal to the per-share conversion price of the Senior Debenture.
                  

                 

                 

                The
                  Investor shall also receive a five-year warrant (the “Class B Investor
                  Warrant,” and, together with the Class A Investor Warrant, the “Investor
                  Warrants”) to purchase up to 3.75% of the issued and outstanding common
                  stock of the Company on a fully diluted basis (including without
                  limitation shares issuable upon conversion of the Secured Debenture),
                  for
                  a purchase price of $0.001 per share.

                 

                 

                The
                  common stock underlying the Investor Warrants shall be registered
                  within
                  180 days of the Closing Date. In the event the Issuer fails to
                  register
                  such underlying shares, then the Investor shall have the right
                  to exercise
                  the Investor Warrant on a cashless-exercise basis at any time after
                  180
                  days of the Closing Date.

                 

              
	
                 

                Fee

                 

              	
                 

                On
                  the Closing Date, the Issuer shall pay from the escrowed funds
                  a fee of
                  thirteen percent (13%) of the proceeds received by or for the benefit
                  of
                  the Company, and a warrant to purchase 1.125 percent of the outstanding
                  shares of the Issuer’s common stock, on a fully-diluted basis, on the same
                  terms as the Investor Warrant, to Hyperion Fund, L.P. and its
                  designees.

                 

              
	
                 

                Shareholder
                  Lockup

                 

              	
                 

                All
                  shareholders of the Issuer will agree to a shareholder lockup which
                  will
                  last until one year from the effective date of the merger of Cryobanks
                  and
                  BioStem, Inc. (the “Merger Date”). The lockup shall terminate as to twenty
                  five percent (25%) of the shares held by each shareholder of Cryobanks
                  on
                  each of the 90th,
                  180th,
                  270th
                  and 365th
                  day following the Merger Date. The lockup shall not apply to shares
                  held
                  by Investor. During the shareholder lockup period, no Cryobanks
                  shareholder shall sell, transfer, hypothecate or alienate any BioStem
                  shares received in exchange for their Cryobanks shares with respect
                  to
                  which the lockup has not yet terminated.

                 

              

      

    

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

      
        	
                 

                Registration
                  Rights

                 

              	
                 

                Promptly,
                  but no later than 60 calendar days from the Closing Date, the Company
                  shall file a Registration Statement with the United States Securities
                  & Exchange Commission (“SEC”) and use its best efforts to ensure that
                  such Registration Statement is declared effective within 120 calendar
                  days
                  from the Closing Date. The Issuer shall continuously maintain the
                  effectiveness of the registration statement for a period of twenty
                  four
                  (24) months after the effective date. The Issuer shall pay all
                  offering
                  expenses in connection with the registration.

                 

              
	
                 

                Structuring
                  Fee

                 

              	
                 

                The
                  Issuer will pay to the Investor a Structuring fee of Thirty Five
                  Thousand
                  Dollars ($35,000).

                 

              
	
                 

                Due
                  Diligence

                 

              	
                 

                Investor
                  shall have a period of thirty days to complete due diligence. All
                  obligations of Investor under this Letter of Intent shall be subject
                  to
                  Investor’s satisfaction, in its sole discretion, of Issuer’s financial
                  condition, prospects and management, and the results of Investor’s due
                  diligence investigation.

                 

              

      

      

      

      If
        the
        terms and conditions contained herein this Letter of Intent are satisfactory,
        please sign as indicated below. We appreciate this opportunity to work with
        you.
        We look forward to an expeditious and successful closing of this
        transaction.

      

      

      

        
          	 	
                  Sincerely,

                
	
                  AGREED
                    TO AND ACCEPTED:

                	 
	 	 
	
                  Cryobanks
                    International, Inc..

                	
                  Samarium
                    Technology Group, Ltd.

                
	 	 
	 	 
	
                  By:
                    /s/ Dwight C. Brunoehler      

                	
                  By:
                    /s/ Volkmar Hable      

                
	
                  Name:
                    Dwight C. Brunoehler      

                	
                  Name:
                    Volkmar Hable      

                
	
                  Title:
                    President & CEO      

                	
                  Title:
                    CEO      

                
	
                  Date:
                    1-31-07

                	
                  Date:
                    2-13-07

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]