Document:

Compass Biotechnologies Inc.: Exhibit 10.5  - Filed by newsfilecorp.com

ASSET ASSIGNMENT AGREEMENT

THIS AGREEMENT dated for reference the 27th day of December,
2009.

BETWEEN:

Dr Joseph Sinkule a resident of
Scottsdale, Arizona and C- Virionics 
Corporation. whose principle address is
42191 N. 111th Place, Scottsdale, 
Arizona, 85262 (herein
collectively the Assignor); 

AND:

Cyplasin Biomedical Ltd. a corporation
existing under the laws of the State of 
Nevada whose principle place of
business is located at Suite 131, Advanced 
Technology Center, 9650-20th
avenue., Edmonton, Alberta Canada (herein 
called “Assignee) and where
together the Assignee and the Assignor are referred 
to as the "Parties"

WHEREAS:

A. The Assignor carries on the business of developing
therapeutic products under a License identified as L-075-2004 14.07, L-232-2002
14.07, L-154-2004 8.05 (hereinafter the "License") from the Public Health
Services of the National Institute of Health (NIH) located in Bethesda, Maryland
(the “Business”) and;

B. The Assignor has agreed to assign all of its rights related
to said License and the Assignee has agreed to acquire and be bound by all
conditions of said License (attached as Appendix 1) and thereby does acquire the
exclusive world-wide rights to commercialize and further develop such
Intellectual Property under said License L-075-2004/0, on the terms and
conditions herein provided and;

C. The Assignee has trademarks, proprietary knowledge and other
related information’s including but not limited to the technical, developmental
and commercialization data and information (for the Business) which the Parties
have agreed will also be assigned to and or otherwise acquired by the Assignor
such that going forward Dr. Sinkule will contribute all of his experience,
personal IP relative to hepatitis C product development, prior plans and
strategies, manufacturing agreements and assets related to the License and to
Ribavirin and interferon generic projects, other and related ongoing business
development activities, etc. as needed in order for us to make hepatitis C
products and;

D. Where the Assignor owes to the NIH an amount of $97,290.93
in back royalty and other associated legal costs and whereby the Assignee hereby
agrees to pay this amount (partially completed) in exchange for assignment of
the License directly to the Assignee and further;

E. The Assignee in order to further compensate the Assignor for
the License assignment will issue 3,680,000 common shares of Cyplasin Biomedical
Ltd's to the three shareholders of Virionics (3 million to Dr. Joseph Sinkule,
500,000 to Dr. Jake Liang, and 180,000 to Robert Kennedy) at a value of US$0.17
per share such that Articles D & E taken together are the Remuneration for
said License Assignment.

	1 	
      DEFINED TERMS

	 	 	 	 
	1.1 	
      For the purposes of this Agreement, unless the context
      otherwise requires, the following terms will have the respective meanings
      set out below and grammatical variations of such terms will have
      corresponding meanings:

	 	 	 	 
		(a) 	
      “Business” means the business carried on by the Assignor
      as described in Recital A of this Agreement; which shall include but not
      be limited to:

	 	 	 	 
			(i) 	
      all material samples, production materials,( including
      but not limited to the cell lines), experimental records, accounting and
      other books and records, and all other
proprietary and technical information, correspondence, documents,
  lab records & notes and material relating to the Business;

- 2 -

	 		(ii) 	
      all right, title, and interest of the Assignor in and to
      the Licensed Property described in Appendix 1 attached hereto;
  and

	 	 	 	 
	 		(iii) 	
      all permits, licenses, consents, authorizations, and
      approvals pertaining to the Business including without limitation those
      described in Appendix 2 NIH consent to transfer and related Permits and
      Licenses attached hereto, to the extent such permits licenses, consents,
      authorizations and approvals are transferable by the execution of this
      Agreement.

	 	 	 	 
	 	(b) 	
      “Business Day” means any day which is not a Saturday,
      Sunday or statutory holiday in British Columbia;

	 	 	 	 
	 	(c) 	
      “Closing” means the completion of the transactions
      contemplated in this Agreement;

	 	 	 	 
	 	(d) 	
      “Closing Date” means December 31, 2009, or such other
      date as the Assignor and the Assignee may mutually determine;

	 	 	 	 
	 	(e) 	
      “Contract” means any agreement, indenture, contract,
      lease, deed of trust, license, option, instrument or other commitment,
      whether written or oral;

	 	 	 	 
	 	(f) 	
      “Encumbrance” means any encumbrance, lien, charge,
      hypothec, pledge, mortgage, title retention agreement, security interest
      of any nature, adverse claim, exception, reservation, easement, right of
      occupation, any matter capable of registration against title, option,
      right of pre-emption, privilege or any Contract to create any of the
      foregoing;

	 	 	 	 
	 	(g) 	
      “Environmental Laws” means all applicable federal, state,
      municipal and local laws, statutes, ordinances, by-laws and regulations,
      and orders, directives and decisions rendered by any ministry, department
      or administrative or regulatory agency relating to the protection of the
      environment, occupational health and safety or the manufacture,
      processing, distribution, use, treatment, storage, disposal, transport or
      handling of any Hazardous Substances;

	 	 	 	 
	 	(h) 	
      “Environmental Permits” means any licenses, permits,
      approvals, consents, certificates, registrations and other authorizations
      under Environmental Laws required for the operation of the
  Business;

	 	 	 	 
	 	(i) 	
      “Goodwill” means the goodwill of the Business, together
      with the exclusive right of the Assignee to represent itself as carrying
      on the Business in continuation of and in succession to the Assignor, and
      the right to the “Cyplasin” or any other future to be determined name or
      any variation thereof as part of, or in connection with the
    Business;

	 	 	 	 
	 	(j) 	
      “Hazardous Substances” means any pollutants,
      contaminants, chemical or industrial toxic, or hazardous waste or
      substances;

	 	 	 	 
	 	(k) 	
      “Intellectual Property” means all registered and
      unregistered patents (issued or pending, continuances and PCTs thereof),
      patent rights, trade or brand names, business names, trade-marks,
      trade-mark registrations, copyrights, and applications thereof; drawings,
      logos, designs, trade secrets, restrictive covenants, processes,
      technology, registered user agreements, research data, inventions,
      instruction manuals, formulae, and other industrial or intellectual
      property respecting the Business, including, without limitation, the
      intellectual property

	 	 	 	 
	 	(l) 	
      ”Licenses” means all licenses, permits, approvals,
      consents, certificates, registrations and authorizations (whether
      governmental, regulatory, or otherwise) required for the conduct in
    the ordinary course of the operations of the Business and the
    uses to which the Business Assets have been put;

- 3 -

	 	(m) 	
      “Losses” means, in respect of any matter, all claims,
      demands, proceedings, losses, damages, liabilities, deficiencies, costs
      and expenses (including, without limitation, all legal and other
      professional fees and disbursements, interest, penalties and amounts paid
      in settlement) arising directly or indirectly as a consequence of such
      matter and actually incurred by a party entitled to be indemnified
      hereunder, net of (i) any tax adjustments, benefits, savings or reductions
      to which such indemnified party is entitled resulting from such matter,
      and (ii) any insurance proceeds, in either case to which such indemnified
      party is entitled by virtue of such claims, demands, proceedings, losses,
      damages, liabilities, deficiencies, costs and expenses;

	 	 	 	 
	 	(n) 	
      "NIH" means the National Institute of Health of Bethesda,
      Maryland which collectively encompasses for this agreement the Public
      Health Service and the Office of Technology Transfer thereof.

	 	 	 	 
	 	(o) 	
      “Permitted Encumbrances” means:

	 	 	 	 
	 		(i) 	
      liens for taxes, assessments, levies and other
      governmental charges either not yet due and payable or due but for which
      notice of assessment has not been given;

	 	 	 	 
	 		(ii) 	
      undetermined or inchoate liens, charges and privileges
      incidental to current construction or current operations and statutory
      liens, charges, adverse claims, security interests or encumbrances of any
      nature whatsoever claimed or held by any governmental authority that have
      not at the time been filed or registered against the title to the asset or
      served upon the Assignor pursuant to law or that relate to obligations not
      due or delinquent;

	 	 	 	 
	 		(iii) 	
      assignments of insurance provided to landlords (or their
      mortgagees) pursuant to the terms of any lease, and liens or rights
      reserved in any lease for rent or for compliance with the terms of such
      lease; and

	 	 	 	 
	 		(iv) 	
      security given in the ordinary course of the Business to
      any public utility, municipality or government or to any statutory or
      public authority in connection with the operations of the Business, other
      than security for borrowed money;

	 	 	 	 
	 	(p) 	
      “Remuneration” means the aggregate sum payable by the
      Assignee to the Assignor for the Business Assets which shall be comprised
      of a Cash Component and an Equity Component consisting of common class A
      shares of the Assignee.

	1.2 	
      Currency. Unless otherwise indicated, all dollar
      amounts in this Agreement are expressed in United States funds.

	 	 
	1.3 	
      Sections and Headings. The division of this
      Agreement into Articles, sections and subsections and the insertion of
      headings are for convenience of reference only and will not affect the
      interpretation of this Agreement. Unless otherwise indicated, any
      reference in this Agreement to an Article, section, subsection or Schedule
      refers to the specified Article, section or subsection of or Schedule to
      this Agreement.

	 	 
	1.4 	
      Number, Gender and Persons. In this Agreement,
      words importing the singular number only will include the plural and vice
      versa, words importing gender will include all genders and words importing
      persons will include individuals, corporations, partnerships,
      associations, trusts, unincorporated organizations, governmental bodies
      and other legal or business entities of any kind whatsoever.

	 	 
	1.5 	
      Entire Agreement. This Agreement constitutes the
      entire agreement between the parties with respect to the subject matter
      hereof and supersedes all prior agreements, understandings, negotiations
      and discussions, whether written or oral. There are no conditions,
      covenants, agreements, representations, warranties
or other provisions, express or implied, collateral,
      statutory or otherwise, relating to the subject matter hereof except as
  herein provided.

- 4 -

	
      1.6 
	
      Time of Essence. Time will be of the essence of
      this Agreement.

	
       
	 
	
      1.7 
	
      Applicable Law. This Agreement will be construed,
      interpreted and enforced in accordance with, and the respective rights and
      obligations of the parties will be governed by, the laws of the State of
      Nevada the federal laws of the United States of America applicable
      therein, and each party irrevocably and unconditionally submits to the
      non-exclusive jurisdiction of the courts of such state and all courts
      competent to hear appeals there from and waives, so far as is legally
      possible, its right to have any legal action relating to this Agreement
      tried by a jury.

	
       
	 
	
      1.8 
	
      Amendments and Waivers. No amendment or waiver of
      any provision of this Agreement will be binding on either party unless
      consented to in writing by such party. No waiver of any provision of this
      Agreement will constitute a waiver of any other provision, nor will any
      waiver constitute a continuing waiver unless otherwise provided.

	
       
	 
	
      2. 
	
      ASSIGNMENT

	
       
	 
	
      2.1 
	
      Subject to the terms and conditions of this Agreement,
      effective as at the Closing Date the Assignor will assign and transfer to
      the Assignee and the Assignee agrees to acquire from the Assignor, free
      and clear of all Encumbrances except as may be otherwise specifically
      provided for herein as Permitted Encumbrances, the Business as a going
      concern and related Business Assets, but not including the Excluded
      Assets. The Assignee also agrees that it will comply in total with all
      requirements as given and or defined within the NIH license which shall
      include but not be limited to all owed payments, milestone payments and
      any eventual royalty schedules and any termination effects thereof.
      Further the Assignee shall comply with all due written reports and other
      such requirements as to the product development of the technology
      therein.

	
       
	 
	
      3. 
	
      PURCHASE PRICE AND ALLOCATION

	
       
	 
	
      3.1 
	
      The Remuneration payable by the Assignee to the Assignor
      for the Business Assets shall consist of $97,2190.93( the Cash Component)
      due to the NIH for previously owed royalty payments and associated legal
      costs plus and Equity Component consisting of 3,680,000 shares of the
      Assignee's class A common stock. On or prior to the Closing Date, the
      Assignee and the Assignor shall enter into a form of subscription
      agreement in regards to the Equity Component.

	
       
	 
	
      4. 
	
      PAYMENT OF THE CASH COMPONENT

	
       
	 
	
      4.1 
	
      The Cash Component will be paid in full by the issuance
      by the Assignee to the NIH instalments to be completed on the Closing
      Date. The parties agree to treat the payment of the Cash Component as an
      instalment under Section 453 of the Internal Revenue Code

	
       
	 
	
      5. 
	
      CLOSING, POSSESSION, AND NO ADJUSTMENTS

	
       
	 
	
      5.1 
	
      The Closing will take place December 31st, 2009 at 5:00
      p.m. local time, on the Closing Date at the offices of Cyplasin Biomedical
      Ltd, Suite 131 Advanced Technology Center, 9650-20th ave, Edmonton Alberta
      Canada T6N 1G1, or at such other place, date, and time as may be mutually
      agreed upon by the parties hereto.

	
       
	 
	
      5.2 
	
      The Assignor will deliver possession of the Business
      Assets, free of any other claim to possession and any tenancies, to the
      Assignee on the Closing Date.

	
       
	 
	
      5.3 
	
      Provided that there has been no material
      misrepresentation on the part of the parties to this agreement and all of
      their respective obligations under this Agreement have been fulfilled,
      there will be no adjustment of the Purchase Price for any reason
      whatsoever.

- 5 -

	6 	
      ASSUMPTION OF LIABILITY

	 	 
	6.1 	
      Subject to the provisions of this Agreement, the Assignor
      agrees to assume, pay, satisfy, discharge, perform and fulfill, from and
      after the Closing Date, all obligations and liabilities of the Assignor in
      respect of:

	 	(a) 	
      assignment of Intellectu al Property;

	 	 	 
	 	(b) 	
      all of the required licenses, permits, approvals,
      consents, registrations, certificates and other authorizations described
      in Schedule 2 - Permits and Licenses;

	 	 	 
	 	(c) 	
      the agreements entered into by the Assignor in the
      ordinary course of the Business for the provision of services or goods to
      the Assignor; and

	7 	
      REPRESENTATIONS AND WARRANTIES OF THE
    ASSIGNOR

	 	 
	7.1 	
      The Assignor represents and warrants to the Assignee,
      with the intent that the Assignee will rely thereon in entering into this
      Agreement and in concluding the transactions contemplated hereby, as
      follows:

	 	(a) 	
      the execution and delivery of this Agreement and the
      completion of the transaction contemplated hereby have been duly and
      validly authorized by all necessary limited liability company action on
      the part of the Assignor and this Agreement constitutes a valid and
      binding obligation of the Assignor enforceable against the Assignor in
      accordance with its terms; except as enforcement may be limited by
      bankruptcy, insolvency and other laws affecting the rights of creditors
      generally and except that equitable remedies may be granted only in the
      discretion of a court of competent jurisdiction;

	 	 	 	 
	 	(b) 	
      except as will be remedied by the consents, approvals,
      releases, and discharges described in this agreement and or attached
      hereto, neither the execution and delivery of this Agreement nor the
      performance of the Assignor’s obligations hereunder will:

	 	 	 	 
	 		(i) 	
      violate or constitute default under any order, decree,
      judgment, statute, by-law, rule, regulation, or restriction applicable to
      the Assignor, the Business or any of the Business Assets, or any contract,
      agreement, instrument, covenant, mortgage, or security, to which the
      Assignor is a party or which are binding upon the Assignor,

	 	 	 	 
	 		(ii) 	
      to the knowledge of the Assignor, result in any fees,
      duties, taxes, assessments, penalties or other amounts becoming due or
      payable by the Assignee under any tax legislation.

	 	 	 	 
	 		(iii) 	
      give rise to the creation or imposition of any
      Encumbrance on any of the related Business Assets,

	 	 	 	 
	 		(iv) 	
      violate or constitute default under any license, permit,
      approval, consent or authorization held by the Assignor or necessary to
      the operation of the Business, or

	 	 	 	 
	 		(v) 	
      violate or trigger any liability on behalf of the
      Assignee pursuant to any legislation governing the sale of assets in bulk
      by the Assignor.

	 	 	 	 
	 	(c) 	
      the Assignor owns and possesses and has good and
      marketable title to the Business Assets free and clear of all Encumbrances
      of every kind and nature whatsoever;

	 	 	 	 
	 	(d) 	
      to the knowledge of the Assignor, the Business Assets are
      in good working order and in a functional state of repair and to the best
      of the knowledge of the Assignor there are no latent defects
    thereto;

- 6 -

	 		(e) 	
      the Business Assets comprise all property and assets used
      by the Assignor in connection with the Business;

	 	 	 	 	 
	 		(f) 	
      except for the NIH, the Assignor does not have any
      indebtedness which might by operation of law or otherwise now or hereafter
      constitute an Encumbrance upon any of the Business Assets;

	 	 	 	 	 
	 		(g) 	
      no person other than the Assignee has any written or oral
      agreement or option or any right or privilege (whether by law, pre-emptive
      or contractual) capable of becoming an agreement or option for the
      assignment or acquisition from the Assignor of any of the Business
      Assets;

	 	 	 	 	 
	 		(h) 	
      except as otherwise provided herein, discloses all
      contracts, engagements, and commitments, whether oral or written, relating
      to the Business or the Business Assets including in particular contracts,
      engagements, and commitments:

	 	 	 	 	 
	 		(i) 	
      out of the ordinary course of Business,

	 	 	 	 	 
	 			(ii) 	
      respecting ownership of or title to any interest or claim
      in or to any real or personal property making up the Business
    Assets,

	 	 	 	 	 
	 			(iii) 	
      respecting Intellectual Property;

	 	 	 	 	 
	 			(iv) 	
      respecting any agreement of guarantee, support,
      indemnification, assumption or endorsement of, or any similar commitment
      with respect to, the obligations, liabilities (whether accrued, absolute,
      contingent or otherwise) or indebtedness of any other person;

	 	 	 	 	 
	 			(v) 	
      any employment or consulting contracts or any other
      contract with any officer, employee or consultant, other than oral
      contracts of indefinite hire terminable by the Assignor without cause on
      reasonable notice;

	 	 	 	 	 
	 			(vi) 	
      any trust indenture, mortgage, promissory note, loan
      agreement, guarantee or other contracts for the borrowing of money or a
      leasing transaction of the type required to be capitalized using the
      License as collateral in accordance with generally accepted accounting
      principles;

	 	 	 	 	 
	 			(vii) 	
      any confidentiality, secrecy or non-disclosure contract,
      (whether the Assignor is a beneficiary or obliging there under) relating
      to any proprietary or confidential information or any non-competition or
      similar contract;.

	 	 	 	 	 
	 			(viii) 	
      there are no material contracts that create any default
      in any obligation or liability in respect of said contracts, engagements,
      or commitments by the Assignor and the Assignor has performed all of the
      material obligations required to be performed by it and is entitled to all
      benefits under the License;

	 	 	 	 	 
	 			(ix) 	
      there has not been any undisclosed amendment,
      modification, variation, surrender, or release of said License
  and

	 	 	 	 	 
	 	(i) 	
      all material Licenses required for the conduct in the
      ordinary course of the operations of the Business and the uses to which
      the Business Assets have been put have been obtained and are in good
      standing and such conduct and uses are in compliance in all material
      respects with such licenses and permits and with all laws, zoning and
      other bylaws, building and other restrictions, rules, regulations, and
      ordinances applicable to the Business and the Business Assets and neither
      the execution and delivery of this Agreement nor the completion of the
      assignment hereby contemplated will give any person the right to terminate
      or cancel the said licenses or permits or affect such
  compliance;

- 7 -

	 	(j) 	
      except as disclosed in Legal and Regulatory Proceedings,
      there are no actions, suits, proceedings, investigations, complaints,
      orders, directives, or notices of defect or noncompliance by or before any
      court, governmental or domestic commission, department, board, tribunal,
      or authority, or administrative, licensing, or regulatory agency, body, or
      officer issued, pending, or to the best of the Assignor’s knowledge
      threatened against or affecting the Assignor or in respect of the Business
      or any of the Business Assets;

	 	 	 
	 	(k) 	
      Other then with the NIH there is no requirement
      applicable to the Assignor to make any filing with, give any notice to or
      to obtain any license, permit, certificate, registration, authorization,
      consent or approval of, any governmental or regulatory authority as a
      condition to the lawful consummation of the transactions contemplated by
      this Agreement, except for the filings, notifications, licenses, permits,
      certificates, registrations, consents and approvals described in Consents,
      or that relate solely to the identity of the Assignee or the nature of any
      business carried on by the Assignee except for the notifications, consents
      and approvals described in Consents;

	 	 	 
	 	(l) 	
      the Assignor has not caused or permitted, nor does it
      have any knowledge of, the release, in any manner whatsoever, of any
      Hazardous Substance on or from any of its properties or assets (including
      any of the Leased Property) utilized in the Business, or any such release
      on or from a facility owned or operated by third parties, but with respect
      to which the Assignor in connection with the Business is or may reasonably
      be alleged to have liability. All Hazardous Substances and all other
      wastes and other materials and substances used in whole or in part by the
      Assignor in connection with the Business or resulting from the Business
      have been disposed of, treated and stored in compliance with all
      Environmental Laws;

	 	 	 
	 	(m) 	
      The Assignor is not aware of any state of facts that
      casts doubt on the validity or enforceability of any of the Intellectual
      Property. The Assignor has provided to the Assignee a true and complete
      copy of all contracts and amendments thereto that comprise or relate to
      the License;

	8 	
      REPRESENTATIONS OF THE ASSIGNEE

	 	 
	8.1 	
      The Assignee represents and warrants to the Assignor as
      follows, with the intent that the Assignor will rely thereon in entering
      into this Agreement and in concluding the purchase and sale contemplated
      hereby, that:

	 	(a) 	
      the Assignee is a corporation duly incorporated, validly
      existing, and in good standing under the laws of the State of Nevada and
      has the power, authority, and capacity to enter into this Agreement and to
      carry out its terms;

	 	 	 
	 	(b) 	
      the execution and delivery of this Agreement and the
      completion of the transactions contemplated hereby has been duly and
      validly authorized by all necessary corporate action on the part of the
      Assignee, and this Agreement constitutes a valid and binding obligation of
      the Assignee enforceable against the Assignee in accordance with its
      terms; except as enforcement may be limited by bankruptcy, insolvency and
      other laws affecting the rights of creditors generally and except that
      equitable remedies may be granted only in the discretion of a court of
      competent jurisdiction;

	 	 	 
	 	(c) 	
      there is no requirement for the Assignee to make any
      filing with, give any notice to or obtain any license, permit,
      certificate, registration, authorization, consent or approval of, any
      government or regulatory authority as a condition to the lawful
      consummation of the transactions contemplated by this Agreement except as
      might be required from the NIH.

	 	 	 
	 	(d) 	
      Neither the execution and delivery of this Agreement nor
      the performance of the Assignee’s obligations hereunder will violate or
      constitute a default under the constating documents, by-laws, or articles
      of the Assignee, any order, decree, judgment, statute, by-law, rule,
      regulation, or restriction applicable to the Assignee, or any contract,
      agreement, instrument, covenant, mortgage or security to which the
      Assignee is a party or which are binding upon the
  Assignee;

- 8 -

	 	(e) 	
      The Equity Component to be issued to the Assignor under
      this Agreement will, when so issued, be duly authorized, validly issued,
      fully paid, non-assessable, free of any Encumbrances except for SEC
      restrictions and not subject to any pre-emptive rights or rights of first
      refusal created by statute or the charter documents or Bylaws of Assignee
      or any agreement to which Assignee is a party or is bound and will be
      issued in compliance with federal and state securities laws; and

	 	 	 
	 	(f) 	
      except as disclosed in the Assignee SEC Documents, (i)
      there are no actions, suits, proceedings, investigations, complaints,
      orders, directives, or notices of defect or non-compliance by or before
      any court, governmental or domestic commission, department, board,
      tribunal, or authority, or administrative, licensing, or regulatory
      agency, body, or officer issued, pending, or to the best of the Assignee’s
      knowledge threatened against or affecting the Assignee; and (ii) the
      Assignee is in compliance in all material respects with all applicable
      laws applicable to Assignee and its business.

	9. 	
      COVENANTS OF THE ASSIGNOR

	 	 
	9.1 	
      Between the date of this Agreement and the Closing Date,
      the Assignor covenants and agrees that the
Assignor:

	 	(a) 	
      will not sell or dispose of any of the Business Assets,
      will conduct the Business diligently and only in the ordinary course
      consistent with past practice, keep the Business Assets in their present
      state, and endeavour to preserve the organization of the Business intact
      and the goodwill of the suppliers and customers and others having business
      relations with the Assignor relating to the Business;

	 	 	 
	 	(b) 	
      will afford the Assignee and its authorized
      representatives full access during normal business hours to the Business
      Assets and all other property and assets utilized in the Business and
      without limitation all title documents, abstracts of title, deeds, leases,
      contracts, financial statements, policies, reports, licenses, books,
      records, and other such material relating to the Business, and furnish
      such copies thereof and other information, as the Assignee may reasonably
      request;

	 	 	 
	 	(c) 	
      will use its best efforts to procure and obtain at or
      prior to the Closing Date all such consents, approvals, releases, and
      discharges as may be required to effect the transactions contemplated
      hereby from all federal, state, municipal or other governmental or
      regulatory bodies and from all other third parties as necessary;

	 	 	 
	 	(d) 	
      at the request of the Assignee, the Assignor will execute
      such consents, authorizations and directions as may be necessary to permit
      any inspection of the Business or any of the Business Assets or to enable
      the Assignee or its authorized representatives to obtain full access to
      all files and records relating to the Business or the Business Assets
      maintained by governmental or other public authorities;

	 	 	 
	 	(e) 	
      the Assignor will use its best efforts to take or cause
      to be taken all necessary corporate action, steps and proceedings to
      approve and authorize validly and effectively the assign and transfer the
      Business Assets to the Assignee and the execution and delivery of this
      Agreement and any other Agreements or documents contemplated hereby and to
      cause all necessary meetings of members or managers of the Assignor to be
      held for such purpose; and

	 	 	 
	 	(f) 	
      will not, without the prior written consent of the
      Assignee, enter into any transaction or refrain from doing any action
      that, if effected before the date of this Agreement, would constitute a
      breach of any representation, warranty, covenant or other obligation of
      the Assignor contained herein, and the Assignor will not enter into any
      material supply agreements relating to the Business or make any material
      decisions or enter into any material contracts with respect to the
      Business without the consent of the Assignee, which consent will not be
      unreasonably withheld.

	9.2 	
      Subject to the limitations set forth below, the Assignor
      covenants and agrees to indemnify and hold harmless the Assignee from and
      against:

- 9 -

	 	(a) 	
      any and all debts, obligations, and liabilities, whether
      accrued, absolute, contingent, or otherwise, existing at the time of
      Closing, respecting the Business or the Business Assets; and the Assignee
      may, but will not be bound to, pay or perform same and all moneys so paid
      by the Assignee in doing so will constitute indebtedness of the Assignor
      to the Assignee hereunder;

	 	 	 
	 	(b) 	
      any and all Losses resulting from any misrepresentation,
      misstatement, breach of warranty, or the non-fulfillment of any covenant
      on the part of the Assignor under this Agreement or under any document or
      instrument delivered pursuant hereto or in connection herewith;
  and

	 	 	 
	 	(c) 	
      any and all Losses which arise or are made or claimed
      against or are suffered or incurred reasonably by the Assignee in respect
      of any of the foregoing; and

	 	 	 
	 	(d) 	
      any and all Losses suffered or incurred by the Assignee
      as a result of or arising directly or indirectly out of or in connection
      with any liability incurred by the Assignor in respect of the operation of
      the Business up to the Closing Date, except for liabilities specifically
      assumed hereunder.

	
      10. 
	
      COVENANTS OF THE ASSIGNEE

	
       
	 
	
      10.1 
	
      Between the date of this Agreement and the Closing Date,
      the Assignee will make all reasonable efforts to obtain and procure in
      co-operation with the Assignor all consents, approvals, releases, and
      discharges required to effect the transactions contemplated
  hereby.

	
       
	 
	
      11. 
	
      CONDITIONS PRECEDENT

	
       
	 
	
      11.1 
	
      The obligation of the Assignee to consummate the
      transactions herein contemplated is subject to the fulfillment of each of
      the following conditions precedent at the times
  stipulated:

	 	(a) 	
      that the representations and warranties of the Assignor
      contained herein are true and correct on and as at the Closing Date with
      the same force and effect as if such representations and warranties were
      made as at the Closing Date, except as may be in writing disclosed to and
      approved by the Assignee;

	 	 	 
	 	(b) 	
      that all the terms, covenants, conditions, agreements,
      and obligations hereunder on the part of the Assignor to be performed or
      complied with at or prior to the Closing Date, including in particular the
      Assignor’s obligation to deliver the documents and instruments herein
      provided for in Clause 12, have been performed and complied with as at the
      Closing Date;

	 	 	 
	 	(c) 	
      that between the date hereof and the Closing Date no
      change, event, or circumstance has occurred which materially adversely
      affects the Business Assets or the prospects, operation, or condition of
      the Business or which, significantly reduces the value of the Business or
      the Business Assets to the Assignee;

	 	 	 
	 	(d) 	
      no legal or regulatory action or proceeding will be
      pending or threatened by any person to enjoin, restrict or prohibit the
      purchase and sale of the Business Assets contemplated hereby;

	 	 	 
	 	(e) 	
      that at the Closing Date, there will have been obtained
      from all appropriate federal, state, municipal or other governmental or
      administrative bodies such licenses, permits, consents, approvals,
      certificates, registrations and authorizations as are required to be
      obtained by the Assignor to permit the change of ownership of the Business
      Assets contemplated hereby, and all notices, consents and approvals with
      respect to the transfer or assignment of the Material Contracts,
      including, without limitation those described in 0 hereof have been
      obtained;;

	11.2 	
      The obligation of the Assignor to consummate the
      transactions herein contemplated is subject to the fulfillment of each of
      the following conditions precedent at the times
  stipulated:

- 10 -

	 	(a) 	
      that the representations and warranties of the Assignee
      contained herein are true and correct on and as of the Closing Date with
      the same force and effect as if such representations and warranties were
      made as at the Closing Date, except as may be in writing disclosed to and
      approved by the Assignor;

	 	 	 
	 	(b) 	
      that the Cash Component payment should have been
      completed on or before the Closing Date;

	 	 	 
	 	(c) 	
      that all terms, covenants, conditions, agreements, and
      obligations hereunder on the part of the Assignee to be performed or
      complied with at or prior to the Closing, including in particular the
      Assignee’s obligation to deliver the documents and
  instruments

	
      12. 
	
      TRANSACTIONS OF THE ASSIGNOR AT THE
  CLOSING

	
       
	 
	
      13. 
	
      FURTHER ASSURANCES

	
       
	 
	
      13.1 
	
      From time to time subsequent to the Closing Date, the
      parties covenant and agree, at the expense of the requesting party, to
      promptly execute and deliver all such further documents and instruments
      and do all such further acts and things as may be required to carry out
      the full intent and meaning of this Agreement and to effect the
      transactions contemplated hereby.

	
       
	 
	
      14. 
	
      ASSIGNMENT

	
       
	 
	
      14.1 
	
      Other than if the Assignees Corporate Assets are acquired
      by another business entity which acquires 100% of the Assignees business
      assets this agreement may not be assigned by any party hereto without the
      prior written consent of the NIH hereto.

	
       
	 
	
      15. 
	
      SUCCESSORS AND ASSIGNS

	
       
	 
	
      15.1 
	
      This Agreement will inure to the benefit of and be
      binding upon the parties hereto and their respective successors and
      permitted assigns.

	
       
	 
	
      16. 
	
      COUNTERPARTS

	
       
	 
	
      16.1 
	
      This Agreement may be executed in several counterparts,
      each of which will be deemed to be an original and all of which will
      together constitute one and the same instrument.

	
       
	 
	
      17. 
	
      NOTICES

	
       
	 
	
      17.1 
	
      Any notice required or permitted to be given under this
      Agreement will be in writing and may be given by personal service or by
      prepaid registered mail, and addressed to the proper party or transmitted
      by electronic facsimile generating proof of receipt of transmission at the
      address or facsimile number stated below:

	 	( a ) 	i f   t o   t h e   A s s i g n o r : 
	 	  	Dr. Joseph Sinkule 
	 	 	42191 N. 111th Place,
      Scottsdale, Arizona, 85262  
	 	  	Facsimile No.: 480-348-9709 
	 	  	  
	 	( b ) 	i f   t o   t h e   A s s i g n e e : 
	 	  	  
	 	  	President CEO 
	 	  	Cyplasin Biomedical Ltd 
	 	  	Suite 131, Advanced Technology Center, 
	 	  	9650-20th avenue, Edmonton Alberta T6N
      1G1 Canada 

- 11 -

or to such other address or
facsimile number as any party may specify by notice. Any notice sent by
registered mail as aforesaid will be deemed conclusively to have been
effectively given on the fifth business day after posting; but if at the time of
posting or between the time of posting and the third business day thereafter
there is a strike, lockout or other labour disturbance affecting postal service,
then such notice will not be effectively given until actually received. Any
notice transmitted by electronic facsimile will be deem conclusively to have
been effectively given if evidence of receipt is obtained before 5:00 p.m.
(recipient’s time) on a Business Day, and otherwise on the Business Day next
following the date evidence of receipt of transmission is obtained by the
sender.

	
      18. 
	
      REFERENCE DATE

	
       
	 
	
      18.1 
	
      This Agreement is dated for reference as of the date
      first above written, but will become binding as of the date of execution
      and delivery by all parties hereto and subject to compliance with the
      terms and conditions hereof, the transfer and possession of the Business
      Assets will be deemed to take effect as at the close of business on
      the Closing Date. References herein to the date of the Agreement or to
      the date hereof shall be deemed to mean the date set forth in the preamble
      to this Agreement.

	
       
	 
	
      19. 
	
      REFERENCES TO AGREEMENT

	
       
	 
	
      19.1 
	
      The terms “this Agreement”, “hereof’, “herein”,
      “hereby”, “hereto”, and similar terms refer to this Agreement and not to
      any particular clause, paragraph or other part of this Agreement.
      References to particular clauses are to clauses of this Agreement unless
      another document is specified.

IN WITNESS WHEREOF the parties have executed and delivered
these presents on the dates indicated below.

	WITNESSED BY: 	)

      
      )

      
      )

      
      )

    
      )   	 C-VIRIONICS
      CORPORATION. 
	  	 
	N a n c y   S i n k u l e 	 
	Name 	 
	 	 
	42191 N. 111th Place  	 
	Address 	 /s/ Dr. Joseph Sinkule
	  	 per Dr. JOSEPH SINKULE
      
	Scottsdale, AZ 85262 USA 	 
	  	 
	Assistant to the President 	 
	Occupation 	
	  	 
	Dated: 29 December,2009 	 

	CYPLASIN BIOMEDICAL LTD. 	 
	 	  	 
	Per: 	/s/
      Garth Likes	 
	 	Garth Likes 	 
	 	 	 
	Authorized Signatory 	 
	 	 
	Dated: December 29, 2009 	 

Schedule 1

PUBLIC HEALTH SERVICE

PATENT LICENSE AGREEMENT—EXCLUSIVE

COVER PAGE

For PHS internal use only: 

Patent License Number: 

A-027-2003

Serial Number(s) of Licensed
Patent(s) and/or Patent Application(s):

U.S. Patent No. 6,387,662 (U.S. S/N
09/246,441), issued May 14, 2002, entitled "Synthesis and Purification of
Hepatitis C Virus-Like particles" (E-009-1997/0) (Inventors: T. Jake Liang
(NIDDK), Thomas F. Baumert (NIDDK)). This application is a continuation of and
claims the benefit of priority of International Application No. PCT/US97/05096
designating the U.S. having International filing date of Mar. 25, 1997,
abandoned, claims the benefit of priority of U.S. S/N 60/030,238, filed Nov. 8,
1996.

PCT/US97/05096 filed March 25, 1997,
entitled "Synthesis and Purification of Hepatitis C Virus-Like particles in
vitro" (related to E-009-1997/0) (Inventors: T. Jake Liang (NIDDK), Thomas F.
Baumert (NIDDK)). National Stage filed March 25, 1997: in Australia Patent No.
738585, issued Jan. 03, 2002, in EPO patent application No. 9791652.6, in Canada
patent application No. 2269097, in Japan patent application No. 10-522521.

Licensee:

VIRIONICS CORPORATION (VIRIONICS)

Cooperative Research and Development
Agreement (CRADA) Number (if applicable):

	 	 
	 	   Additional Remarks: 
	 	 
	 	 
	 	 
	 	 
	 	 

Public Benefit(s):

Vaccines for the prevention and
treatment of chronic Hepatitis C Virus (HCV) infections.

This Patent License Agreement,
hereinafter referred to as the "Agreement", consists of this Cover Page,
an attached Agreement, a Signature Page, Appendix A (List of Patent(s)
and/or Patent Application(s)), Appendix B (Fields of Use and Territory),
Appendix C (Royalties), Appendix D (Modifications), Appendix E (Benchmarks), and
Appendix F (Commercial Development Plan). The Parties to this Agreement are:

	1) 	
      The National Institutes of Health ("NIH"), the Centers
      for Disease Control and Prevention

PHS Patent License
Agreement--Exclusive CONFIDENTIAL (L# A- 027-2003) Model 98061Ia Page 1
of 22 [Final] [VIRIONICS] [March 7, 2004]

("CDC"), or the Food and Drug
Administration ("FDA"), hereinafter singly or collectively referred to as "PHS",
agencies of the United States Public Health Service within the Department of
Health and Human Services ("DHHS"); and

	2) 	
      The person, corporation, or institution identified above
      and/or on the Signature Page, having offices at the address indicated on
      the Signature Page, hereinafter referred to as
  "Licensee".

PHS Patent License Agreement--Exclusive CONFIDENTIAL
(Lit A-027-2003) Model 980611a Page 2 of 22 [Final] [VIRION1CS]
 [March 7,
2004]

PHS PATENT LICENSE AGREEMENT—EXCLUSIVE

PHS and Licensee agree as follows:

	1. 	
      BACKGROUND

	 	 	 	 
		1.01 	
      In the course of conducting biomedical and behavioral
      research, PHS investigators made inventions that may have commercial
      applicability.

	 	 	 	 
		1.02 	
      By assignment of rights from PHS employees and other
      inventors, DHHS, on behalf of the United States Government, owns
      intellectual property rights claimed in any United States and/or foreign
      patent applications or patents corresponding to the assigned inventions.
      DHHS also owns any tangible embodiments of these inventions actually
      reduced to practice by PHS.

	 	 	 	 
		1.03 	
      The Secretary of DHHS has delegated to PHS the authority
      to enter into this Agreement for the licensing of rights to these
      inventions.

	 	 	 	 
		1.04 	
      PHS desires to transfer these inventions to the private
      sector through commercialization licenses to facilitate the commercial
      development of products and processes for public use and
benefit.

	 	 	 	 
		1.05 	
      Licensee desires to acquire commercialization
      rights to certain of these inventions in order to develop processes,
      methods, and/or marketable products for public use and benefit.

	 	 	 	 
	2. 	
      DEFINITIONS.

	 	 	 	 
		2.01 	
      "Benchmarks" mean the performance milestones that
      are set forth in Appendix E.

	 	 	 	 
		2.02 	
      "Commercial Development Plan" means the written
      commercialization plan attached as Appendix F.

	 	 	 	 
		2.03 	
      "First Commercial Sale" means the initial transfer
      by or on behalf of Licensee or its sublicensees of Licensed Products
      or the initial practice of a Licensed Process by or on behalf
      of Licensee or its sublicensees in exchange for cash or some
      equivalent to which value can be assigned for the purpose of determining
      Net Sales.

	 	 	 	 
		2.04 	
      "Government" means the Government of the United
      States of America.

	 	 	 	 
		2.05 	
      "Licensed Fields of Use" means the fields of use
      identified in Appendix B.

	 	 	 	 
		2.06 	
      "Licensed Patent Rights" shall mean:

	 	 	 	 
			a) 	
      Patent applications (including provisional patent
      applications and PCT patent applications) and/or patents listed in
      Appendix A, all divisions and continuations of these applications, all
      patents issuing from such applications, divisions, and continuations, and
      any reissues, reexaminations, and extensions of all such
patents;

	 	 	 	 
			b) 	
      to the extent that the following contain one or more
      claims directed to the invention or inventions disclosed in a) above: i)
      continuations-in-part of a) above; ii) all divisions and continuations of
      these continuations-in-part; iii) all patents issuing from such
      continuations-in-part, divisions, and continuations; iv) priority patent
      application(s) of a) above; and v) any reissues, reexaminations, and
      extensions of all such patents;

	 	c) 	
      to the extent that the following contain one or more
      claims directed to the invention or inventions disclosed in a) above: all
      counterpart foreign and U.S. patent applications and patents to a) and b)
      above, including those listed in Appendix A.

	 		
      Licensed Patent Rights shall not include b) or c)
      above to the extent that they contain one or more claims directed to new
      matter which is not the subject matter disclosed in a) above.

	 	 	 
	 	2.07 	
      "Licensed Process(es)" means processes which, in the
      course of being practiced would be within the scope of one or more claims
      of the Licensed Patent Rights that have not been held unpatentable,
      invalid or unenforceable by an unappealed or unappealable judgment of a
      court of competent jurisdiction.

	 	 	 
	 	2.08 	
      "Licensed Product(s)" means tangible materials which, in
      the course of manufacture, use, sale, or importation would be within the
      scope of one or more claims of the Licensed Patent Rights that have not
      been held unpatentable, invalid or unenforceable by an unappealed or
      unappealable judgment of a court of competent jurisdiction.

	 	 	 
	 	2.09 	
      "Licensed Territory" means the geographical area
      identified in Appendix B.

	 	 	 
	 	2.10 	
      "Net Sales" means the total gross receipts for sales of
      Licensed Products or practice of Licensed Processes by or on behalf of
      Licensee or its sublicensees, and from leasing, renting, or otherwise
      making Licensed Products available to others without sale or other
      dispositions, whether invoiced or not, less returns and allowances,
      packing costs, insurance costs, freight out, taxes or excise duties
      imposed on the transaction (if separately invoiced), and wholesaler and
      cash discounts in amounts customary in the trade to the extent actually
      granted. No deductions shall be made for commissions paid to individuals,
      whether they be with independent sales agencies or regularly employed by
      Licensee, or sublicensees, and on its payroll, or for the cost of
      collections.

	 	 	 
	 	2.11 	
      "Practical Application" means to manufacture in the case
      of a composition or product, to practice in the case of a process or
      method, or to operate in the case of a machine or system; and in each
      case, under such conditions as to establish that the invention is being
      utilized and that its benefits are to the extent permitted by law or
      Government regulations available to the public on reasonable
  terms.

	 	 	 
	 	2.12 	
      "Research License" means a nontransferable, nonexclusive
      license to make and to use the Licensed Products or Licensed Processes as
      defined by the Licensed Patent Rights for purposes of research and not for
      purposes of commercial manufacture or distribution or in lieu of
      purchase.

	3. 	
      GRANT OF RIGHTS

	 	 	 
		3.01 	
      PHS hereby grants and Licensee accepts, subject to the
      terms and conditions of this Agreement, an exclusive license under the
      Licensed Patent Rights in the Licensed Territory to make and have made, to
      use and have used, to sell and have sold, to offer to sell, and to import
      any Licensed Products in the Licensed Fields of Use and to practice and
      have practiced any Licensed Processes in the Licensed Fields of
  Use.

	 	 	 
		3.02 	
      This Agreement confers no license or rights by
      implication, estoppel, or otherwise under any patent applications or
      patents of PHS other than Licensed Patent Rights regardless of whether
      such patents are dominant or subordinate to Licensed Patent
  Rights.

PHS Patent License Agreement--Exclusive CONFIDENTIAL (L#
A-027-2003) 
Model 98061Ia Page 4 of 22 [Final] [VIRIONICS] [March 7,
2004]

	4. 	
      SUBLICENSING

	 	 	 
		4.01 	
      Upon written approval by PHS, which approval will not be
      unreasonably withheld, Licensee may enter into sublicensing agreements
      under the Licensed Patent Rights.

	 	 	 
		4.02 	
      Licensee agrees that any sublicenses granted by it shall
      provide that the obligations to PHS of Paragraphs 5.01-5.04, 8.01, 10.01,
      10.02, 12.05, and 13.07-13.09 of this Agreement shall be binding upon the
      sublicensee as if it were a party to this Agreement. Licensee further
      agrees to attach copies of these Paragraphs to all sublicense
      agreements.

	 	 	 
		4.03 	
      Any sublicenses granted by Licensee shall provide for the
      termination of the sublicense, or the conversion to a license directly
      between such sublicensees and PHS, at the option of the sublicensee, upon
      termination of this Agreement under Article 13. Such conversion is subject
      to PHS approval and contingent upon acceptance by the sublicensee of the
      remaining provisions of this Agreement.

	 	 	 
		4.04 	
      Licensee agrees to forward to PHS a copy of each fully
      executed sublicense agreement postmarked within thirty (30) days of the
      execution of such agreement. To the extent permitted by law, PHS agrees to
      maintain each such sublicense agreement in confidence.

	 	 	 
	5. 	
      STATUTORY AND PHS REQUIREMENTS AND RESERVED
      GOVERNMENT RIGHTS

		5.01 	
      (a) 
	
      PHS reserves on behalf of the Government an irrevocable,
      nonexclusive, nontransferable, royalty-free license for the practice of
      all inventions licensed under the Licensed Patent Rights throughout
      the world by or on behalf of the Government and on behalf of any foreign
      government or international organization pursuant to any existing or
      future treaty or agreement to which the Government is a signatory. Prior
      to the First Commercial Sale, Licensee agrees to provide PHS
      reasonable quantities of Licensed Products or materials made
      through the Licensed Processes for PHS research use. 

	 	  	
       
	
       

			
      (b) 
	
      In the event that Licensed Patent Rights are
      Subject Inventions made under a Cooperative Research and Development
      Agreement (CRADA), Licensee grants to the Government, pursuant to
      15 U.S.C. § 3710a(b)(1)(A), a nonexclusive, nontransferable, irrevocable,
      paid-up license to practice Licensed Patent Rights or have
      Licensed Patent Rights practiced throughout the world by or on
      behalf of the Government. In the exercise of such license, the Government
      shall not publicly disclose trade secrets or commercial or financial
      information that is privileged or confidential within the meaning of 5
      U.S.C. § 552(b)(4) or which would be considered as such if it had been
      obtained 

	 	  	
       
	
       

				
      from a non-Federal party. Prior to the First
      Commercial Sale, Licensee agrees to provide PHS reasonable
      quantities of Licensed Products or materials made through the
      Licensed Processes for PHS research use. 

	 	5.02 	
      Licensee agrees that products used or sold in the
      United States embodying Licensed Products or produced through use
      of Licensed Processes shall be manufactured substantially in the United
      States, unless a written waiver is obtained in advance from
    PHS.

	 	 	 
	 	5.03 	
      Licensee acknowledges that PHS may enter into
      future Cooperative Research and Development Agreements (CRADAs) under the
      Federal Technology Transfer Act of 1986 that relate to the subject matter
      of this Agreement. Licensee agrees not to unreasonably deny
      requests for a Research License from such future collaborators with
      PHS when acquiring such rights is necessary in order to make a
      Cooperative Research and Development Agreement (CRADA) project feasible.
      Licensee may request an opportunity to join as a party to the proposed
      Cooperative Research and Development Agreement
(CRADA).

		
      5.04 
	
      (a) 
	
      In addition to the reserved license of Paragraph 5.01
      above, PHS reserves the right to grant nonexclusive Research
      Licenses directly or to require Licensee to grant nonexclusive Research Licenses
      on reasonable terms. The purpose of this Research License is to encourage
      basic research, whether conducted at an academic or corporate facility. In
      order to safeguard the Licensed Patent Rights, however, PHS shall consult with Licensee before granting to
      commercial entities a Research License or providing to them research
  samples of materials made through the Licensed Processes. 

		(b) 	
      In exceptional circumstances, and in the event that
      Licensed Patent Rights are Subject Inventions made under a
      Cooperative Research and Development Agreement (CRADA), the Government,
      pursuant to 15 U.S.C. § 3710a(b)(1)(B), retains the right to require the
      Licensee to grant to a responsible applicant a nonexclusive,
      partially exclusive, or exclusive sublicense to use Licensed Patent
      Rights in Licensee's field of use on terms that are
      reasonable under the circumstances; or if Licensee fails to grant
      such a license, the Government retains the right to grant the license
      itself. The exercise of such rights by the Government shall only be in
      exceptional circumstances and only if the Government determines (i) the
      action is necessary to meet health or safety needs that are not reasonably
      satisfied by Licensee; (ii) the action is necessary to meet
      requirements for public use specified by Federal regulations, and such
      requirements are not reasonably satisfied by the Licensee; or (iii)
      the Licensee has failed to comply with an agreement containing
      provisions described in 15 U.S.C. § 3710a(c)(4)(B). The determination made
      by the Government under this Article is subject to administrative appeal
      and judicial review under 35 U.S.C. § 203(2). 

	6. 	
      ROYALTIES AND REIMBURSEMENT

	 	 	 
		6.01 	
      Licensee agrees to pay to PHS a
      noncreditable, nonrefundable license issue royalty as set forth in
      Appendix C within thirty (30) days from the date that this Agreement
      becomes effective.

	 	 	 
		6.02 	
      Licensee agrees to pay to PHS a nonrefundable
      minimum annual royalty as set forth in Appendix C. The minimum annual
      royalty is due and payable on January 1 of each calendar year beginning
      January 1, 2006 and may be credited against any earned royalties due for
      sales made in that year.

	 	 	 
		6.03 	
      Licensee agrees to pay PHS earned royalties as set
      forth in Appendix C.

	 	 	 
		6.04 	
      Licensee agrees to pay PHS benchmark royalties as
      set forth in Appendix C.

	 	 	 
		6.05 	
      Licensee agrees to pay PHS sublicensing royalties
      as set forth in Appendix C.

	7. 	
      PATENT FILING, PROSECUTION AND
    MAINTENANCE

	 	7.01 	
      Except as otherwise provided in this Article 7, PHS
      agrees to take responsibility for, but to consult with, the Licensee in
      the preparation, filing, prosecution, and maintenance of any and all
      patent applications or patents included in the Licensed Patent Rights and
      shall furnish copies of relevant patent-related documents to
    Licensee.

	 	 	 
	 	7.02 	
      Upon PHS's written request, Licensee shall assume the
      responsibility for the preparation, filing, prosecution, and maintenance
      of any and all patent applications or patents included in the Licensed
      Patent Rights and shall on an ongoing basis promptly furnish copies of
      all patent-related documents to PHS. In such event, Licensee
      shall, subject to the prior approval of PHS, select registered
      patent attorneys or patent agents to provide such services on behalf of
      Licensee and PHS. PHS shall provide appropriate powers of attorney
      and other documents necessary to undertake such actions to the patent
      attorneys or patent agents providing such services. Licensee and its
      attorneys or agents shall consult with PHS in all aspects of the
      preparation, filing, prosecution and maintenance of patent applications
      and patents included within the Licensed Patent Rights and shall
      provide PHS sufficient opportunity to comment on any document that
      Licensee intends to file or to cause to be filed with the relevant
      intellectual property or patent office.

	 	7.03 	
      At any time, PHS may provide Licensee with
      written notice that PHS wishes to assume control of the
      preparation, filing, prosecution, and maintenance of any and all patent
      applications or patents included in the Licensed Patent Rights. If PHS
      elects to assume such responsibilities, Licensee agrees to
      cooperate fully with PHS, its attorneys, and agents in the
      preparation, filing, prosecution, and maintenance of any and all patent
      applications or patents included in the Licensed Patent Rights and
      to provide PHS with complete copies of any and all documents or
      other materials that PHS deems necessary to undertake such
      responsibilities. Licensee shall be responsible for all costs associated
      with transferring patent prosecution responsibilities to an attorney or
      agent of PHS's choice.

	 	 	 
	 	7.04 	
      Each party shall promptly inform the other as to all
      matters that come to its attention that may affect the preparation,
      filing, prosecution, or maintenance of the Licensed Patent Rights
      and permit each other to provide comments and suggestions with respect
      to the preparation, filing, prosecution, and maintenance of Licensed
      Patent Rights, which comments and suggestions shall be considered by
      the other party.

	8. 	
      RECORD KEEPING.

	 	8.01 	
      Licensee agrees to keep accurate and correct
      records of Licensed Products made, used, sold, or imported and
      Licensed Processes practiced under this Agreement
      appropriate to determine the amount of royalties due PHS. Such
      records shall be retained for at least five (5) years following a given
      reporting period and shall be available during normal business hours for
      inspection at the expense of PHS by an accountant or other designated
      auditor selected by PHS for the sole purpose of verifying reports
      and payments hereunder. The accountant or auditor shall only disclose to
      PHS information relating to the accuracy of reports and payments
      made under this Agreement. If an inspection shows an underreporting
      or underpayment in excess of five percent (5%) for any twelve (12) month
      period, then Licensee shall reimburse PHS for the cost of the
      inspection at the time Licensee pays the unreported royalties,
      including any late charges as required by Paragraph 9.08 of this
      Agreement. All payments required under this Paragraph shall be due
      within thirty (30) days of the date PHS provides Licensee notice of
      the payment due.

	 	 	 
	 	8.02 	
      Licensee agrees to have an audit of sales and royalties
      conducted by an independent auditor at least every two (2) years if annual
      sales of the Licensed Product or Licensed Processes are over
      two (2) million dollars. The audit shall address, at a minimum, the amount
      of gross sales by or on behalf of Licensee during the audit period,
      terms of the license as to percentage or fixed royalty to be remitted to
      the Government, the amount of royalty funds owed to the
      Government under this Agreement, and whether the royalty
      amount owed has been paid to the Government and is reflected in the
      records of the Licensee. The audit shall also indicate the PHS
      license number, product, and the time period being audited. A report
      certified by the auditor shall be submitted promptly by the auditor
      directly to PHS on completion. Licensee shall pay for the entire
      cost of the audit.

	9. 	
      REPORTS ON PROGRESS BENCHMARKS, SALES AND
      PAYMENTS

	 	 	 
		9.01 	
      Prior to signing this Agreement, Licensee has
      provided to PHS the Commercial Development Plan at Appendix
      F, under which Licensee intends to bring the subject matter of the
      Licensed Patent Rights to the point of Practical Application.
      This Commercial Development Plan is hereby incorporated by
      reference into this Agreement. Based on this plan, performance
      Benchmarks are determined as specified in Appendix E.

	 	 	 
		9.02 	
      Licensee shall provide written annual reports on
      its product development progress or efforts to commercialize under the
      Commercial Development Plan for each of the Licensed Fields of
      Use within sixty (60) days after December 31 of each calendar year.
      These progress reports shall include, but not be limited to: progress on
      research and development, status of applications for regulatory approvals,
      manufacturing, sublicensing, marketing, importing, and sales during the
      preceding calendar year, as well as plans for the present calendar year.
      PHS also encourages these reports to include information on any of
      Licensee's public service activities that relate to the Licensed
      Patent Rights. If reported progress differs from that projected in the
      Commercial Development Plan and Benchmarks, Licensee shall
      explain the reasons for such differences. In any such annual report,
      Licensee may propose amendments to the Commercial Development
      Plan, acceptance of which by PHS may not be denied
      unreasonably. Licensee agrees to provide any additional information
      reasonably required by PHS to evaluate Licensee's
      performance under this Agreement. Licensee may amend the
      Benchmarks at any time upon written consent by PHS. PHS
      shall not unreasonably withhold approval of any request of
      Licensee to extend the time periods of this schedule if such
      request is supported by a reasonable showing by Licensee of diligence in
      its performance under the Commercial Development Plan and toward
      bringing the Licensed Products to the point of Practical
  Application as defined in 37 CFR 404.3(d).

	 		
      Licensee shall amend the Commercial Development
      Plan and Benchmarks at the request of PHS to address any
      Licensed Fields of Use not specifically addressed in the plan
      originally submitted.

	 	 	 
	 	9.03 	
      Licensee shall report to PHS the dates for
      achieving Benchmarks specified in Appendix E and the First
      Commercial Sale in each country in the Licensed Territory
      within thirty (30) days of such occurrences.

	 	 	 
	 	9.04 	
      Licensee shall submit to PHS within sixty
      (60) days after each calendar half-year ending June 30 and December 31 a
      royalty report setting forth for the preceding half-year period the amount
      of the Licensed Products sold or Licensed Processes
      practiced by or on behalf of Licensee in each country within
      the Licensed Territory, the Net Sales, and the amount of
      royalty accordingly due. With each such royalty report, Licensee
      shall submit payment of the earned royalties due. If no earned
      royalties are due to PHS for any reporting period, the written
      report shall so state. The royalty report shall be certified as correct by
      an authorized officer of Licensee and shall include a detailed listing of
      all deductions made under Paragraph 2.10 to determine Net Sales made under
      Article 6 to determine royalties due.

	 	 	 
	 	9.05 	
      Licensee agrees to forward semi-annually to PHS a copy of
      such reports received by Licensee from its sublicensees during the
      preceding half-year period as shall be pertinent to a royalty accounting
      to PHS by Licensee for activities under the sublicense.

	 	 	 
	 	9.06 	
      Royalties due under Article 6 shall be paid in U.S.
      dollars. For conversion of foreign currency to U.S. dollars, the
      conversion rate shall be the New York foreign exchange rate quoted in
      The Wall Street Journal on the day that the payment is due. All
      checks and bank drafts shall be drawn on United States banks and shall be
      payable, as appropriate, to "NIH/Patent Licensing." All such payments
      shall be sent to the following address: NIH, P.O. Box 360120, Pittsburgh,
      PA 152516120. Any loss of exchange, value, taxes, or other expenses
      incurred in the transfer or conversion to U.S. dollars shall be paid
      entirely by Licensee. The royalty report required by Paragraph 9.04 of
      this Agreement shall accompany each such payment, and a copy of such
      report shall also be mailed to PHS at its address for notices indicated on
      the Signature Page of this Agreement.

	 	 	 
	 	9.07 	
      Licensee shall be solely responsible for determining if
      any tax on royalty income is owed outside the United States and shall pay
      any such tax and be responsible for all filings with appropriate agencies
      of foreign governments.

	 	 	 
	 	9.08 	
      Interest and penalties may be assessed by PHS on any
      overdue payments in accordance with the Federal Debt Collection Act. The
      payment of such late charges shall not prevent PHS from exercising any
      other rights it may have as a consequence of the lateness of any
      payment.

	 	 	 
	 	9.09 	
      All plans and reports required by this Article 9 and
      marked "confidential" by Licensee shall, to the extent permitted by law,
      be treated by PHS as commercial and financial information obtained from a
      person and as privileged and confidential, and any proposed disclosure of
      such records by the PHS under the Freedom of Information Act (FOIA), 5
      U.S.C. § 552 shall be subject to the predisclosure notification
      requirements of 45 CFR § 5.65(d).

	10. 	PERFORMANCE

	 	10.01 	
      Licensee shall use its reasonable best efforts to bring
      the Licensed Products and Licensed

	 		
      Processes to Practical Application.
      "Reasonable best efforts" for the purposes of this provision shall
      include adherence to the Commercial Development Plan at Appendix F
      and performance of the Benchmarks at Appendix E. The efforts of a
      sublicensee shall be considered the efforts of Licensee.

	 	 	 
	 	10.02 	
      Upon the First Commercial Sale, until the
      expiration of this Agreement, Licensee shall use its reasonable best
      efforts to make Licensed Products and Licensed Processes reasonably
      accessible to the United States public.

	11. 	
      INFRINGEMENT AND PATENT
  ENFORCEMENT

		11.01 	
      PHS and Licensee agree to notify
      each other promptly of each infringement or possible infringement of the
      Licensed Patent Rights, as well as any facts which may affect the
      validity, scope, or enforceability of the Licensed Patent Rights of
      which either Party becomes aware. 

	 	  	
       

		11.02 	
      Pursuant to this Agreement and the provisions of
      Chapter 29 of title 35, United States Code, Licensee may: a) bring suit in
      its own name, at its own expense, and on its own behalf for infringement
      of presumably valid claims in the Licensed Patent Rights; b) in any
      such suit, enjoin infringement and collect for its use, damages, profits,
      and awards of whatever nature recoverable for such infringement; and c)
      settle any claim or suit for infringement of the Licensed Patent Rights
      provided, however, that PHS and appropriate Government authorities
      shall have the first right to take such actions. If Licensee desires to
      initiate a suit for patent infringement, Licensee shall notify PHS in
      writing. If PHS does not notify Licensee of its intent to pursue legal
      action within ninety (90) days, Licensee will be free to initiate suit.
      PHS shall have a continuing right to intervene in such suit. Licensee
      shall take no action to compel the Government either to initiate or
      to join in any such suit for patent infringement. Licensee may request the
      Government to initiate or join in any such suit if necessary to avoid
      dismissal of the suit. Should the Government be made a party to any such
      suit, Licensee shall reimburse the Government for any costs,
      expenses, or fees which the Government incurs as a result of such
      motion or other action, including any and all costs incurred by the
      Government in opposing any such motion or other action. In all
      cases, Licensee agrees to keep PHS reasonably apprised of the
      status and progress of any litigation. Before Licensee commences an
      infringement action, Licensee shall notify PHS and give careful
      consideration to the views of PHS and to any potential effects of the
      litigation on the public health in deciding whether to bring suit.
  

	 	  	
       

		11.03 	
      In the event that a declaratory judgment action alleging
      invalidity or non-infringement of any of the Licensed Patent Rights
      shall be brought against Licensee or raised by way of
      counterclaim or affirmative defense in an infringement suit brought by
      Licensee under Paragraph 11.02, pursuant to this Agreement and the
      provisions of Chapter 29 of Title 35, United States Code or other
      statutes, Licensee may: a) defend the suit in its own name, at its
      own expense, and on its own behalf for presumably valid claims in the
      Licensed Patent Rights; b) in any such suit, ultimately to
      enjoin infringement and to collect for its use, damages, profits, and
      awards of whatever nature recoverable for such infringement; and c) settle
      any claim or suit for declaratory judgment involving the Licensed
      Patent Rights-provided, however, that PHS and appropriate
      Government authorities shall have the first right to take such
      actions and shall have a continuing right to intervene in such suit. If
      PHS does not notify Licensee of its intent to respond to the legal
      action within a reasonable time, Licensee will be free to do so. Licensee
      shall take no action to compel the Government either to initiate or
      to join in any such declaratory judgment action. Licensee may
      request the Government to initiate or to join any such suit if
      necessary to avoid dismissal of the suit. Should the Government be
      made a party to any such suit by motion or any other action of Licensee,
      Licensee shall reimburse the Government for any costs, expenses, or
      fees which the Government incurs as a result of such motion or
      other action. If Licensee elects not to defend against such declaratory
      judgment action, PHS, at its option, may do so at its own expense.
      In all cases, Licensee agrees to keep PHS reasonably apprised of the
      status and progress of any litigation. Before Licensee commences an
      infringement action, Licensee shall notify PHS and give
      careful consideration to the views of PHS and to any potential
      effects of the litigation on the public health in deciding whether to
      bring suit. 

	 	  	
       

		11.04 	
      In any action under Paragraphs 11.02 or 11.03, the
      expenses including costs, fees, attorney fees, and disbursements, shall be
      paid by Licensee. The value of any recovery made by Licensee
      through court judgment or settlement shall be treated as Net Sales
      and subject to earned royalties. 

	 	  	
       

		11.05 	
      PHS shall cooperate fully with
      Licensee in connection with any action under Paragraphs 11.02 or
      11.03. PHS agrees promptly to provide access to all necessary
      documents and to render reasonable assistance in response to a request by
      Licensee. 

	12. 	
      NEGATION OF WARRANTIES AND
  INDEMNIFICATION

	 	 
		
      12.01 
	 PHS offers no warranties other
      than those specified in Article 1.

		12.02 	
      PHS does not warrant the validity of the Licensed Patent
      Rights and makes no representations whatsoever with regard to the scope of
      the Licensed Patent Rights, or that the Licensed Patent Rights may be
      exploited without infringing other patents or other intellectual property
      rights of third parties. 

	 	  	
       

		12.03 	
      PHS MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, OF
      MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY SUBJECT MATTER
      DEFINED BY THE CLAIMS OF THE LICENSED PATENT RIGHTS OR TANGIBLE MATERIALS
      RELATED THERETO. 

	 	  	
       

		12.04 	
      PHS does not represent that it will commence legal
      actions against third parties infringing the Licensed Patent Rights.
    

	 	  	
       

		12.05 	
      Licensee shall indemnify and hold PHS, its employees,
      students, fellows, agents, and consultants harmless from and against all
      liability, demands, damages, expenses, and losses, including but not
      limited to death, personal injury, illness, or property damage in
      connection with or arising out of: a) the use by or on behalf of Licensee,
      its sublicensees, directors, employees, or third parties of any Licensed
      Patent Rights; or b) the design, manufacture, distribution, or use of any
      Licensed Products, Licensed Processes or materials by Licensee, or other
      products or processes developed in connection with or arising out of the
      Licensed Patent Rights. Licensee agrees to maintain a liability insurance
      program consistent with sound business practice.

	13. 	
      TERM, TERMINATION, AND MODIFICATION OF
    RIGHTS

	 	 	 
		13.01 	
      This Agreement is effective when signed by all parties
      and shall extend to the expiration of the last to expire of the Licensed
      Patent Rights unless sooner terminated as provided in this Article
    13.

	 	 	 
		13.02 	
      In the event that Licensee is in default in the
      performance of any material obligations under this Agreement, including
      but not limited to the obligations listed in Article 13.05, and if the
      default has not been remedied within ninety (90) days after the date of
      notice in writing of such default, PHS may terminate this Agreement by
      written notice and pursue outstanding amounts owed through procedures
      provided by the Federal Debt Collection Act.

	 	 	 
		13.03 	
      In the event that Licensee becomes insolvent, files a
      petition in bankruptcy, has such a petition filed against it, determines
      to file a petition in bankruptcy, or receives notice of a third party's
      intention to file an involuntary petition in bankruptcy, Licensee shall
      immediately notify PHS in writing. Furthermore, PHS shall have the right
      to terminate this Agreement immediately upon Licensee's receipt of written
      notice.

	 	 	 
		13.04 	
      Licensee shall have a unilateral right to terminate this
      Agreement and/or any licenses in any country or territory by giving PHS
      sixty (60) days written notice to that effect.

	 	 	 
		13.05 	
      PHS shall specifically have the right to terminate or
      modify, at its option, this Agreement, if PHS determines that the
      Licensee: I) is not executing the Commercial Development Plan
      submitted with its request for a license and the Licensee cannot
      otherwise demonstrate to PHS's satisfaction that the Licensee has taken,
      or can be expected to take within a reasonable time, effective steps to
      achieve Practical Application of the Licensed Products or Licensed
      Processes; 2) has not achieved the Benchmarks as may be modified
      under Paragraph 9.02; 3) has willfully made a false statement of, or
      willfully omitted, a material fact in the license application or in any
      report required by the license Agreement; 4) has committed a material
      breach of a covenant or agreement contained in the license; 5) is not
      keeping Licensed Products or Licensed Processes reasonably available to
      the public after commercial use commences; 6) cannot reasonably satisfy
      unmet health and safety needs; or 7) cannot reasonably justify a failure
      to comply with the domestic production requirement of Paragraph 5.02
      unless waived. In making this determination, PHS will take into account
      the normal course of such commercial development programs conducted with
      sound and reasonable business practices and judgment and the annual
      reports submitted by Licensee under Paragraph 9.02. Prior to invoking this
      right, PHS shall give written notice to Licensee providing Licensee
      specific notice of, and a ninety (90) day opportunity to respond to, PHS's
      concerns as to the previous items 1) to 7). If Licensee fails to alleviate
      PHS's concerns as to the previous items 1) to 7) or fails to initiate
      corrective action to PHS's satisfaction, PHS may terminate this
      Agreement.

	 	13.06 	
      When the public health and safety so require, and after
      written notice to Licensee providing Licensee a sixty (60) day opportunity
      to respond, PHS shall have the right to require Licensee to grant
      sublicenses to responsible applicants, on reasonable terms, in any
      Licensed Fields of Use under the Licensed Patent Rights, unless Licensee
      can reasonably demonstrate that the granting of the sublicense would not
      materially increase the availability to the public of the subject matter
      of the Licensed Patent Rights. PHS will not require the granting of
      a sublicense unless the responsible applicant has first negotiated in good
      faith with Licensee.

	 	 	 
	 	13.07 	
      PHS reserves the right according to 35 U.S.C. §
      209(0(4) to terminate or modify this Agreement if it is determined
      that such action is necessary to meet requirements for public use
      specified by federal regulations issued after the date of the license and
      such requirements are not reasonably satisfied by Licensee.

	 	 	 
	 	13.08 	
      Within thirty (30) days of receipt of written notice of
      PHS's unilateral decision to modify or terminate this Agreement,
      Licensee may, consistent with the provisions of 37 CFR 404.11, appeal
      the decision by written submission to the designated PHS official.
      The decision of the designated PHS official shall be the final
      agency decision. Licensee may thereafter exercise any and all
      administrative or judicial remedies that may be available.

	 	 	 
	 	13.09 	
      Within ninety (90) days of expiration or termination of
      this Agreement under this Article 13, a final report shall be
      submitted by Licensee. Any royalty payments, including those incurred but
      not yet paid (such as the full minimum annual royalty), and those related
      to patent expense, due to PHS shall become immediately due and
      payable upon termination or expiration. If terminated under this Article
      13, sublicensees may elect to convert their sublicenses to direct licenses
      with PHS pursuant to Paragraph 4.03. Unless otherwise specifically
      provided for under this Agreement, upon termination or expiration
      of this Agreement, Licensee shall return all Licensed Products
      or other materials included within the Licensed Patent Rights
      to PHS or provide PHS with certification of the
      destruction thereof.

	14. 	
      GENERAL PROVISIONS

	 	14.01 	
      Neither Party may waive or release any of its rights or
      interests in this Agreement except in writing. The failure of the
      Government to assert a right hereunder or to insist upon compliance
      with any term or condition of this Agreement shall not constitute a
      waiver of that right by the Government or excuse a similar
      subsequent failure to perform any such term or condition by
    Licensee.

	 	 	 
	 	14.02 	
      This Agreement constitutes the entire agreement
      between the Parties relating to the subject matter of the Licensed
      Patent Rights, and all prior negotiations, representations,
      agreements, and understandings are merged into, extinguished by, and
      completely expressed by this Agreement.

	 	 	 
	 	14.03 	
      The provisions of this Agreement are severable, and in
      the event that any provision of this Agreement shall be determined to be
      invalid or unenforceable under any controlling body of law, such
      determination shall not in any way affect the validity or enforceability
      of the remaining provisions of this Agreement.

	 	 	 
	 	14.04 	
      If either Party desires a modification to this Agreement,
      the Parties shall, upon reasonable notice of the proposed modification by
      the Party desiring the change, confer in good faith to determine the
      desirability of such modification. No modification will be effective until
      a written amendment is signed by the signatories to this Agreement or
      their designees.

	 	 	 
	 	14.05 	
      The construction, validity, performance, and effect of
      this Agreement shall be governed by Federal law as applied by the Federal
      courts in the District of Columbia.

	 	 	 
	 	14.06 	
      All notices required or permitted by this Agreement shall
      be given by prepaid, first class, registered or certified mail or by an
      express/overnight delivery service provided by a commercial carrier,
      properly addressed to the other Party at the address designated on the
      following Signature Page, or to such other address as may be designated in
      writing by such other Party. Notices shall be considered timely if such
      notices are received on or before the established deadline date or sent on
      or before the deadline date as verifiable by U.S. Postal Service postmark
      or dated receipt from a commercial carrier. Parties should request a
      legibly dated U.S. Postal Service postmark or obtain a dated receipt from
      a commercial carrier or the U.S. Postal Service. Private metered postmarks
      shall not be acceptable as proof of timely
mailing.

		
      14.07 
	
      This Agreement shall not be assigned by Licensee except:
      a) with the prior written consent of PHS, such consent not to be withheld
      unreasonably; or b) as part of a sale or transfer of substantially the
      entire business of Licensee relating to operations which concern this
      Agreement. Licensee shall notify PHS within ten (10) days of any
      assignment of this Agreement by Licensee,

	 	
       
	
       

		
      14.08 
	
      Licensee agrees in its use of any PHS-supplied materials
      to comply with all applicable statutes, regulations, and guidelines,
      including PHS and DHHS regulations and guidelines. Licensee agrees not to
      use the materials for research involving human subjects or clinical trials
      in the United States without complying with 21 CFR Part 50 and 45 CFR Part
      46. Licensee agrees not to use the materials for research involving human
      subjects or clinical trials outside of the United States without notifying
      PHS, in writing, of such research or trials and complying with the
      applicable regulations of the appropriate national control authorities.
      Written notification to PHS of research involving human subjects or
      clinical trials outside of the United States shall be given no later than
      sixty (60) days prior to commencement of such research or
trials.

	 	
       
	
       

		
      14.09 
	
      Licensee acknowledges that it is subject to and agrees to
      abide by the United States laws and regulations (including the Export
      Administration Act of 1979 and Arms Export Control Act) controlling the
      export of technical data, computer software, laboratory prototypes,
      biological material, and other commodities. The transfer of such items may
      require a license from the cognizant Agency of the U.S. Government
      or written assurances by Licensee that it shall not export such items
      to certain foreign countries without prior approval of such agency. PHS
      neither represents that a license is or is not required or that, if
      required, it shall be issued.

	 	
       
	
       

		
      14.10 
	
      Licensee agrees to mark the Licensed Products
      or their packaging sold in the United States with all applicable U.S.
      patent numbers and similarly to indicate "Patent Pending" status. All
      Licensed

Products manufactured in, shipped to,
or sold in other countries shall be marked in such a manner as to preserve PHS
patent rights in such countries.

	 	14.11 	
      By entering into this Agreement, PHS does not directly or
      indirectly endorse any product or service provided, or to be provided, by
      Licensee whether directly or indirectly related to this Agreement.
      Licensee shall not state or imply that this Agreement is an endorsement by
      the Government, PHS, any other Government organizational unit, or any
      Government employee. Additionally, Licensee shall not use the names
      of NIH, CDC, PHS, or DHHS or the Government or their
      employees in any advertising, promotional, or sales literature without the
      prior written consent of PHS.

	 	 	 
	 	14.12 	
      The Parties agree to attempt to settle amicably any
      controversy or claim arising under this Agreement or a breach of this
      Agreement, except for appeals of modifications or termination
      decisions provided for in Article 13. Licensee agrees first to appeal any
      such unsettled claims or controversies to the designated PHS official, or
      designee, whose decision shall be considered the final agency decision.
      Thereafter, Licensee may exercise any administrative or judicial remedies
      that may be available.

	 	 	 
	 	14.13 	
      Nothing relating to the grant of a license, nor the grant
      itself, shall be construed to confer upon any person any immunity from or
      defenses under the antitrust laws or from a charge of patent misuse, and
      the acquisition and use of rights pursuant to 37 CFR Part 404 shall not be
      immunized from the operation of state or Federal law by reason of the
      source of the grant.

	 	 	 
	 	14.14 	
      Paragraphs 4.03, 8.01, 9.05-9.07, 12.01-12.05, 13.08,
      13.09, and 14.12 of this Agreement shall survive termination of
      this Agreement.

PHS PATENT LICENSE AGREEMENT--EXCLUSIVE

Mailing Address for Notices:

Office of Technology Transfer 
National Institutes of
Health
6011 Executive Boulevard, Suite 325 Rockville, Maryland 20852-3804
U.S.A.

For Licensee (Upon, information and belief, the undersigned
expressly certifies or affirms that the contents of any statements of
Licensee made or referred to in this document are truthful and
accurate.): 

Any false or misleading statements made, presented, or
submitted to the Government, including any relevant omissions, under this
Agreement and during the course of negotiation of this Agreement are subject to
all applicable civil and criminal statutes including Federal statutes 31 U.S.C.
§§ 3801-3812 (civil liability) and 18 U.S.C. § 1001 (criminal liability
including fine(s) and/or imprisonment).

APPENDIX A—Patent(s) or Patent Application(s)

Patent(s) or Patent Application(s):

	Serial Number 	Country 	Filing Date 	Issue Date 	Status 	Patent Number 
	60/030,238 	U.S.A. 	11/08/1996 	  	Abandoned 	  
	09/296,441 	U.S.A. 	04/21/1999 	05/14/2002 	Issued 	6,387,662 
	PCTTUS97/05096 	PCT 	03/25/1997 	  	Expired 	  
	23479/97 	Australia 	03/25/1997 	01/03/2002 	Issued 	738585 
	9791652.6 	EPO 	03/25/1997 	  	Pending 	  
	10-522521 	Japan 	03/25/1997 	  	Pending 	  
	2269097 	Canada 	03/25/1997 	  	Pending 	  

entitled "Synthesis and Purification of Hepatitis C Virus-Like
particles" (PHS Ref. E-09-1997/0).

APPENDIX B--Licensed Fields of Use and Territory

Licensed Fields of Use:

Vaccines for the prevention and treatment of chronic Hepatitis
C Virus (HCV) infections.

Licensed Territory: Worldwide.

APPENDIX C--Royalties

Royalties:

Licensee agrees to pay to PHS a noncreditable, nonrefundable
license issue royalty in the amount of Seventy-Five Thousand Dollars, payable
according to the following schedule:

Twenty-Five Thousand Dollars ($25,000) within Thirty (30) days
of this Agreement becoming effective; 
Twenty-Five Thousand Dollars ($25,000)
on August 1, 2004 
Twenty-Five Thousand Dollars ($25,000) on November 1,
2004.

Licensee agrees to pay to PHS a nonrefundable minimum annual
royalty in the amount of Five Thousand Dollars ($ 5,000), with payments
beginning January 1, 2006.

Licensee agrees to pay PHS earned royalties on Net Sales by or
on behalf of Licensee and its sublicensees as follows:

Five Percent (5 %).

Licensee or its sublicensee agrees to pay PHS benchmark
royalties as follows for each Licensed Product therapeutically or
prophylactically active in humans arising from the Licensed Patent Rights:

	Initiation of Phase I Clinical Trials 	$	 25,000 	 
	Initiation of Phase II Clinical Trials 	$	 100,000 	 
	3. Initiation of Phase III Clinical Trials
    	$	 250,000 	 
	Biologics License Application (BLA) submission 	$	 500,000 	 
	BLA (or its foreign equivalent) approval
	$	 3,000,000 	 

Licensee agrees to pay PHS additional sublicensing royalties as
follows, based on the fair market value of any consideration received for
granting each sublicense or option to sublicense:

	1. Pre-Phase I 	25% 
	2. Pre-Phase II 	20% 
	3. Pre-Phase III 	17.5% 
	4. Pre-BLA approval 	15% 
	5. Post-BLA approval 	12.5%
  

- 27 -

APPENDIX D—Modifications

PHS and Licensee agree to the following modifications to the
Articles and Paragraphs of this Agreement:

Modifications to this Agreement shall be incorporated into this
Agreement.

APPENDIX E--Benchmarks and Performance

Licensee agrees to the following Benchmarks for
its performance under this Agreement and, within thirty (30) days of
achieving a Benchmark, shall notify PHS that the Benchmark has been
achieved.

	Initiate Phase I Clinical Trials: 	To Be Determined 
	Initiate Phase II Clinical Trials: 	  
	Initiate Phase HI Clinical Trials: 	  
	Submission of BLA to FDA: 	  
	Approval of BLA by FDA: 	  

PHS Patent License Agreement--Exclusive CONFIDENTIAL (L#
A-027-2003) 
Model 980611a Page 21 of 22 [Final] WIRIONICS1 [March 7,
20041

APPENDIX F--Commercial Development Plan

Attached below: Licensee's PHS License Application.

- 30 -

APPLICATION FOR LICENSE TO 

  PUBLIC HEALTH SERVICE
INVENTIONS

Thank you for your interest in the
technology transfer activities of the U.S. Public Health Service. Your answers
to the following questions will provide the foundation for licensing decisions.
Please return this form and the required attachments to: Office of Technology
Transfer, National Institutes of Health, 6011 Executive Boulevard, Suite 325,
Rockville, MD 20852.

IDENTIFICATION OF INVENTIONS(S) FOR WHICH LICENSE IS SOUGHT
(Complete all relevant sections)

U.S. Patent Application(s) Serial
Number(s), Filing Date(s), and Patent Number(s) (if issued):

U.S. Patent No. 6,387,662, issued
May 14, 2002 - 0 ) e t ( 1 °
-

Title of Patent Application(s):
Ifj3-

 

Synthesis and Purification of
Hepatitis C Virus-Like Particle

Biological Material(s): N/A

Inventor(s):

T. Jake Liang and Thomas F.
Baumert

Source from which you learned of
availability of a license to the present invention(s):

Internet search

INFORMATION ABOUT APPLICANT

	1. 	Name & Address of Applicant: 
	 	 
	  	VIRIONICSCORPORATION 
	  	2638 Cedar Elm Drive 
	  	Odenton, MD 21113 
	 	 
	2. 	 Name, title, address, phone and FAX
      numbers of Applicant's licensing representative: 
	 	 
	  	Dr. Joseph Sinkule 
	  	President 
	  	2638 Cedar Elm Drive 
	  	Odenton, MD 21113 
	  	Phone/Fax: (410) 695-2359 
	  	 
	3. 	Is Applicant a U.S. Corporation? _X 
      yes ____ no 
	  	If no, state country of origin: 
      ________________________________________
	  	 
	  	State of incorporation or citizenship (if an
      individual): Delaware 
	 	 
	4. 	Is Applicant a Small Business Firm? _X_
      yes _____ no 

TYPE OF LICENSE SOUGHT

	X 	   Exclusive Commercialization
      License 	_____	Coexciusive Commercialization License 
	  	  	 	  
	_____	Nonexclusive Commercialization License 	_____	Nonexclusive Internal Commercial Use 
	  	  	 	  
	_____	License (internal use only—no right
      to sell or otherwise distribute materials) 
	 	 
	_____	Nonexclusive Biological Materials License 	_____	Commercial Evaluation License 
	  	   (for materials not covered under a
    	 	(for a limited-term evaluation) 
	_____	   patent or patent application) 	 	  

PROPOSED FIELD(S) OF USE:

Vaccines for prevention and treatment of Hepatitis
C.

	I. 	
      DESCRIPTION OF APPLICANT

VIRIONICS CORPORATION (VIRIONICS) is
a developmental stage biotechnology company with offices in Odenton, Maryland.
The company currently has three employees and has operating to date as a virtual
company. The company obtained initial "seed" financing and, with the conclusion
of this license arrangement, will close a Series A financing of at least
$5,000,000 to fund initial R&D and support a CRADA with NIH. VIRIONICS is
totally focused on the development of a broad and enabling virus-like particle
("VLP") technology platform using recombinant virus-like particles as the core
technology for the R&D of prophylactic and therapeutic vaccines for cancer,
infectious diseases, and chronic inflammatory diseases. The company will develop
a close relationship with the inventor's laboratories at NIH through a CRADA to
facilitate research and development activities. The staff of VIRIONICS and its
consultants and advisors, are extremely experienced in the development and
commercialization of vaccines for the treatment of cancer, infectious diseases
and chronic inflammatory diseases. The hepatitis C technology will be one of the
two lead candidate vaccines brought into the clinic by the Company in
2003.

	II. 	
      OTHER LICENSES AND USE OF 1111,
  INVENTION

VIRIONICS has been focused on
putting together a portfolio of antigen delivery technology using VLPs.
VIRIONICS has applied for exclusive and non-exclusive licenses to the following
patents and patent applications from PHS. These applications pertain to
papillomavirus-like particles (inventors Lowy and Schiller).

	 	1). 	
      USPA SNO8/319, 467, filed 10/06/94, now USPN
      5,618,536, issued 04/08/97

	 	2). 	
      USPA SN 08/781,084, filed 01/09/97, now USPN
      5,855,891, issued 01/05/99

	 	3). 	
      USPA SN 09/878,840, filed 06/11/01. pending ,
      PCT/US95/12914, filed 10/06/95

and background rights to
"Self-Assemblying Recombinant Papillomavirus Capsid Proteins.

To the best of our knowledge, there
are no known licensees of this particular hepatitis C VLP technology working in
our proposed fields-of-use, we believe primarily due to the Chiron Corporation
patent issues. When these patents are combined with the intellectual property
requested for licensing in this application, VIRIONICS will possess a protected,
broad and enabling position in the field of VLPs as antigen delivery systems for
preventative and therapeutic vaccines.

III.          
PROPOSED LICENSE TERMS

Intended products include
recombinant hepatitis C virus-like particles to be used as prophylactic and
therapeutic vaccines for hepatitis C and hepatitis B. Licensed products and
methods are those described or proposed in the relevant granted patents and/or
patent applications, those conceived through the company's R&D efforts, and
all relevant background rights related to self-assemblying recombinant hepatitis
C virus capsid and envelope proteins described in other referenced and enabling
patents by Liang and Baumert. The intent is for an exclusive, worldwide license
of rights under all claims of the patents and patent applications (including
divisionals and their foreign counterparts) for vaccines against, hepatitis C,
and antigen carriers for vaccines against cancer, other chronic viral disease,
and chronic inflammatory disease fields-of-use for the term of the patent's
lifecycle (to expiration of last issued licensed patent).

The license will be royalty-bearing
with a minimal up-front fee in return for a higher proposed royalty payment to
PHS. The proposed up-front payment is $20,000 with a $500,000 milestone payment
to PHS when each candidate product is first used in a randomized Phase III
study, and a $5 million milestone payment upon FDA market approval of each
immunotherapy product derived from the core technology, excluding Orphan
products; PHS will receive a $2.5 million milestone payment upon market approval
of all products with Orphan designation). The proposed royalty to PHS is 4% of
all direct net revenue received by VIRIONICS from this technology. If any
candidate product is sublicensed to third party, PHS will receive sublicensing
fees according to the following schedule, which are creditable against milestone
fees paid in same year (i.e. if sublicense fee is for a milestone cited above,
then company does not pay milestone fee to PHS and the percentage of sublicense
fee described below):

	               
           Licensing Event 	Paid to PHS by VIRIONICS 
	* Products sublicensed before Phase I 	30% of sublicense payments received
  
	* Products sublicensed before Phase II 	25% of sublicense
      payment received 
	* Products sublicensed before Phase III 	15% of sublicense
      payment received 
	* Products sublicensed before market 	10% of sublicense payment
      received 
	approval * Products sublicensed after market 	5% of sublicense payment received
  

	IV. 	
      RESEARCH, DEVELOPMENT AND MARKETING
  PLAN

Using the licensed technology,
VIRIONICS is planning to research and develop vaccine products in
the prevention and treatment of chronic hepatitis C infections. A lead product
candidate has been identified and will serve as the company's initial product
pipeline. As the initial product pipeline is created and moved forward into
manufacturing, GLP pre-clinical and clinical testing, new candidate products
will be created by the ongoing research program within the company and/or by our
NIH collaborators through a CRADA relationship.

VIRIONICS' overall
development plan is focused to move the proof of principle data already achieved
in animals into human clinical trials as quickly as possible. Pre-clinical
proof-of-concept efficacy data has already been generated and published. The
R&D program, the estimated costs, and development timeline for the lead
product is proposed below.

A contract manufacturer will be
contracted to produce a GMP clincial lot of material ($250,000; 6 months). A GLP
contractor will be engaged to perform a repeat-dose GLP toxicology study in rats
to support the proposed clinical dosing schedule ($150,000; 6 months).
Immunology assays and product release assays must be developed and applied
($100,000; 3 months). An "opinion leader" clinical researcher experienced with
hepatitis C will be sought to conduct the Phase I and Phase II protocols. A
pre-IND meeting will take place with FDA to discuss the clinical plan and any
remaining issues. If requested, appropriate in vitro and
animal models (chimpanzee hepatitis C challenge model) will be utilized for
additional proof-of-concept testing and screening prior to human safety and
efficacy studies ($500,000 chimp challenge study).

Initial Phase I clinical trials will
be conducted in normal healthy volunteers evaluating safety and immunology
($300,000; 6 months). At this point, the company will plan two different Phase
II studies as a prophylacitic vaccine (randomized and controlled study in high
risk volunteers) and as a therapeutic vaccine (randomized and controlled study
in chronically-infected volunteers with measurable viral load). These
studies of 60 subjects each are projected to cost $500,000 and $650,00,
respectively and last 12-18 months duration. The Company anticipates entry into
advanced, randomized Phase II-III clinical trials in both patient populations
over 18 months and a Biologic License Application within 36 months of beginning
a Phase III pivotal trial (based on Orphan Drug designation, Expedited Review
and Fast-Track Approval).

 - 33 -

It is the company's intention to
out-license the preventative vaccine development efforts to Chiron Corporation
while retaining the therapeutic vaccine rights in all markets. The company will
either use a contract marketing organization to market to sell the therapeutic
vaccine product for the company, or assemble our own marketing and sales force
for the U.S., while licensing in all other areas. Product launch costs in the
U.S and Europe are estimated to cost around $3 million. We will partner with
Asian partners for marketing and sales in that market area.

	V. 	
      MARKET ANALYSIS

The Vaccine Market

VIRIONICS plans to research,
develop, and manufacture this entirely new class of immunotherapy, targeting
diseases with tremendous market potential and for which no effective vaccines
currently exist. These markets include chronic infectious diseases (like HIV,
hepatitis B, hepatitis C, etc.), cancers (breast, prostate, colon, cervical,
etc.), and chronic inflammatory diseases (arthritis, Crohn's, and
allergy).

The current global market for
infectious disease preventative vaccines surpass $7 Billion and is expected to
grow at a compounded annual rate exceeding 10% throughout the license period,
reaching —$30 Billion by 2015. VIRIONICS' cummulative revenue
expectations approach $1 Billion within five years of its initial product
launches for products in these large markets. There are no approved and marketed
vaccines for treatment of chronic infectious diseases, nor for treatment or
prevention of cancers or chronic inflammatory diseases.

VIRIONICS' therapeutic
vaccine platform is unique in its ability to directly activate
antigen-presenting cells of the body's immune system, especially dendritic
cells. The Company has identified chronic infectious diseases (HIV, HBV, HCV,
HPV), cancer (breast cancer, prostate cancer, and cervical cancer) and chronic
inflammatory diseases (allergy, Crohn's, and arthritis) as its initial target
market indications for therapy. The company's market research validates our
believe that products for these conditions could generate total annual sales
revenue in excess of $1 billion for many of the product indications.

The Hepatitis C
Market

There are no effective preventative
vaccines or therapeutic agents that are active against hepatitis C. It is
suspected that there are over 5 million people in the U.S. that are infected
with hepatitis C and perhaps as many as 200-400 million around the world. This
patient population would be the target market for a therapeutic vaccine.
According to 1996 statistics, there are an estimated 36,000 new cases of
hepatitis C diagnosed in the U.S. each year; 66% of those infected are
baby-boomers between the ages of 30-49 years old. Hepatitis C causes chronic
lever disease in 20% of those infected.

This often leads to cirrhosis of the
liver, cancer of the liver and liver failure. Each year hepatitis C causes
8,000-10,000 deaths. It is estimated that hepatitis C costs the U.S. over $600
million in medical costs and lost work (excluding liver transplants). For
patients who do not undergo liver transplants, the average lifetime cost of
hepatitis C is over $100,000, a staggering $500 billion total patient cost in
today's dollars (5 million patients x $100,000).

For a safe and effective new
immunotherapy product used in the treatment of hepatitis C chronic infection,
the annual U.S. sales based on a very conservative 20% market share, would be
estimated at $1 Billion (20% of 5 million = 1,000,000 x $1,000 per course of
therapy).

Print Name and Title

- 35-

	VI. 	
      OTHER INFORMATION WHICH YOU BELIEVE WILL SUPPORT A
      DETERMINATION TO GRANT THE REQUESTED LICENSE

VIRIONICS is totally focused
on the development and commercialization of this core platform technology. We
are building a company around this core technology and strongly believe we can
raise the capital and fund the research and development of several products from
this baseline vaccine platform technology. Because of limited interest by other
companies to date in an exclusive license to develop therapeutic and
preventative vaccine products in the field of hepatitis C prevention and
treatment, we request your consideration of granting us the requested license.
Also because of close location of our corporate offices and research labs to the
NIH campus, our intent to support continued R&D efforts in the labs of the
NIH inventors, we suggest this clearly justifies our interest and dedication to
this technology license and its medical applications.

	VII. 	
      FOR APPLICANTS FOR EXCLUSIVE OR PARTIALLY EXCLUSIVE
      LICENSES ONLY

It is important that this particular
technology become commercialized and VIRIONICS is dedicated to its comprehensive
development for hepatitis C treatment and prevention. As U.S. taxpayers, we
believe the Federal and public interests will best be served by a small
entrepreneureal U.S. company, VIRIONICS, obtaining an exclusive license to this
invention. It is a major dis-incentive for the company and our private and
institutional investors to invest a tremendous amount of capital on a
proprietary technology if several other companies are allowed to practice the
same inventions. The protection and market exclusivity granted by an exclusive
license is fundamental to the company's success at raising the money needed to
commercialize the products envisioned from this enabling technology. The
granting of non-exclusive licenses to this important technology, or the division
into much smaller and limited fields-of-use, will not provide proper incentives
for investment of risk capital. A non-exclusive license is just not practical
nowdays as a platform for building a successful company. There is already
tremendous market concentration in the fields of infectious disease vaccines and
immunotherapies, and the exclusive licensing of these inventions will certainly
not lessen competition in these markets. The proposed license terms and scope of
exclusivity are not that different than other license agreements concluded in
the past by the Federal government, or by other academic or industrial
organizations for other similar technology.

We feel the proposed terms are
reasonable and just, but the final terms of the license proposal can be modified
as negotiated in the final license agreement.

I certify, to the best of my knowledge, that all of the
information provided on this application and on attachments to this application
is true and accurate.

- 36-

	   
                     Joseph
      Sinkule 	         October 22,
      2002 
	X 	  
	  	
	Signature of Applicant or Authorized Representative 	           
           Date 
	  	  
	  	  
	  	  
	Dr. Joseph A. Sinkule, President VIRIONICS
      CORPORATION 	  
	 	 

APPLICATION FOR LICENSE TO 

  PUBLIC HEALTH SERVICE
INVENTIONS

Thank you for your interest in the
technology transfer activities of the U.S. Public Health Service. Your answers
to the following questions will provide the foundation for licensing decisions.
Please return this form and the required attachments to: Office of Technology
Transfer, National Institutes of Health, 6011 Executive Boulevard, Suite 325,
Rockville, MD 20852.

IDENTIFICATION OF INVENTIONS(S) FOR WHICH LICENSE IS SOUGHT
(Complete all relevant sections)

U.S. Patent Application(s) Serial
Number(s), Filing Date(s), and Patent Number(s) (if issued):

U.S. Patent No. 6,387,662, issued
May 14, 2002

Title of Patent Application(s):

Synthesis and Purification of
Hepatitis C Virus-Like Particle

Biological Material(s): N/A 

Inventor(s):

T. Jake Liang and Thomas F.
Baumert

Source from which you learned of
availability of a license to the present invention(s):

Internet search

INFORMATION ABOUT APPLICANT

	1 . 	N a m e   &   A d d r e s s   o f   A p p l i c a n
      t : 
	 	 
	  	VIRIONICS CORPORATION 
	  	2638 Cedar Elm Drive 
	  	Odenton, MD 21113 
	 	 
	2 . 	 Name, title, address, phone and FAX
      numbers of Applicant's licensing representative: 
	 	 
	  	Dr. Joseph Sinkule 
	  	President 
	  	2638 CedarElm Drive 
	  	Odenton, MD 21113 
	  	Phone/Fax: (410) 695-2359 
	  	 
	3 . 	Is Applicant a U.S. Corporation? _X yes
      ____  no 
	  	If no, state country of
      origin:_________________________________ 
	  	State of incorporation or citizenship (if an
      individual): Delaware 
	 	 
	4. 	Is Applicant a Small Business Firm? _X_
      yes ____ no 

- 38 -

TYPE OF LICENSE SOUGHT

	X	Exclusive Commercialization License 	_____	Coexciusive Commercialization License 
	 	  	 	  
	_____	Nonexclusive Commercialization License 	_____	Nonexclusive Internal Commercial Use 
	 	  	 	  
	_____	License (internal use only—no right
      to sell or otherwise distribute materials) 
	_____	Nonexclusive Biological Materials License 	_____	Commercial Evaluation License 
	 	(for materials not covered under a 	 	(for a limited-term evaluation) 
	 	patent
      or patent application) 	 	  

PROPOSED FIELD(S) OF USE:

Vaccines for prevention and treatment of Hepatitis
C.

	I . 	
      DESCRIPTION OF APPLICANT

VIRIONICS CORPORATION (VIRIONICS) is
a developmental stage biotechnology company with offices in Odenton, Maryland.
The company currently has three employees and has operating to date as a virtual
company. The company obtained initial "seed" financing and, with the conclusion
of this license arrangement, will close a Series A financing of at least
$5,000,000 to fund initial R&D and support a CRADA with NIH. VIRIONICS is
totally focused on the development of a broad and enabling virus-like particle
("VLP") technology platform using recombinant virus-like particles as the core
technology for the R&D of prophylactic and therapeutic vaccines for cancer,
infectious diseases, and chronic inflammatory diseases. The company will develop
a close relationship with the inventor's laboratories at NIH through a CRADA to
facilitate research and development activities. The staff of VIRIONICS and its
consultants and advisors, are extremely experienced in the development and
commercialization of vaccines for the treatment of cancer, infectious diseases
and chronic inflammatory diseases. The hepatitis C technology will be one of the
two lead candidate vaccines brought into the clinic by the Company in
2003.

	II. 	
      OTHER LICENSES AND USE OF 1111,
  INVENTION

VIRIONICS has been focused on
putting together a portfolio of antigen delivery technology using VLPs.
VIRIONICS has applied for exclusive and non-exclusive licenses to the following
patents and patent applications from PHS. These applications pertain to
papillomavirus-like particles (inventors Lowy and Schiller).

	 	1) . 	
      USPA SNO8/319, 467, filed 10/06/94, now USPN
      5,618,536, issued 04/08/97

	 	2) . 	
      USPA SN 08/781,084, filed 01/09/97, now USPN
      5,855,891, issued 01/05/99

	 	3) . 	
      USPA SN 09/878,840, filed 06/11/01. pending,
      PCT/US95/12914, filed 10/06/95

and background rights to
"Self-Assemblying Recombinant Papillomavirus Capsid Proteins.

To the best of our knowledge, there
are no known licensees of this particular hepatitis C VLP technology working in
our proposed fields-of-use, we believe primarily due to the Chiron Corporation
patent issues. When these patents are combined with the intellectual property
requested for licensing in this application, VIRIONICS will possess a protected,
broad and enabling position in the field of VLPs as antigen delivery systems for
preventative and therapeutic vaccines.

- 39 -

Intended products include
recombinant hepatitis C virus-like particles to be used as prophylactic and
therapeutic vaccines for hepatitis C and hepatitis B. Licensed products and
methods are those described or proposed in the relevant granted patents and/or
patent applications, those conceived through the company's R&D efforts, and
all relevant background rights related to self-assemblying recombinant hepatitis
C virus capsid and envelope proteins described in other referenced and enabling
patents by Liang and Baumert. The intent is for an exclusive, worldwide license
of rights under all claims of the patents and patent applications (including
divisionals and their foreign counterparts) for vaccines against, hepatitis C,
and antigen carriers for vaccines against cancer, other chronic viral disease,
and chronic inflammatory disease fields-of-use for the term of the patent's
lifecycle (to expiration of last issued licensed patent).

The license will be royalty-bearing
with a minimal up-front fee in return for a higher proposed royalty payment to
PHS. The proposed up-front payment is $20,000 with a $500,000 milestone payment
to PHS when each candidate product is first used in a randomized Phase III
study, and a $5 million milestone payment upon FDA market approval of each
immunotherapy product derived from the core technology, excluding Orphan
products; PHS will receive a $2.5 million milestone payment upon market approval
of all products with Orphan designation). The proposed royalty to PHS is 4% of
all direct net revenue received by VIRIONICS from this technology. If any
candidate product is sublicensed to third party, PHS will receive sublicensing
fees according to the following schedule, which are creditable against milestone
fees paid in same year (i.e. if sublicense fee is for a milestone cited above,
then company does not pay milestone fee to PHS and the percentage of sublicense
fee described below):

	   
                       Licensing
      Event 	 Paid to PHS by VIRIONICS 
	* Products sublicensed before Phase I 	30% of sublicense payments received
  
	* Products sublicensed before Phase II 	25% of sublicense payment received

	* Products sublicensed before Phase III 	15% of sublicense payment received

	* Products sublicensed before market 	10% of sublicense payment received

	approval * Products sublicensed after market 	5% of sublicense payment received
  

	IV. 	
      RESEARCH, DEVELOPMENT AND MARKETING
  PLAN

Using the licensed technology,
VIRIONICS is planning to research and develop vaccine products in
the prevention and treatment of chronic hepatitis C infections. A lead product
candidate has been identified and will serve as the company's initial product
pipeline. As the initial product pipeline is created and moved forward into
manufacturing, GLP pre-clinical and clinical testing, new candidate products
will be created by the ongoing research program within the company and/or by our
NIH collaborators through a CRADA relationship.

VIRIONICS' overall
development plan is focused to move the proof of principle data already achieved
in animals into human clinical trials as quickly as possible. Pre-clinical
proof-of-concept efficacy data has already been generated and published. The
R&D program, the estimated costs, and development timeline for the lead
product is proposed below.

A contract manufacturer will be
contracted to produce a GMP clincial lot of material ($250,000; 6 months). A GLP
contractor will be engaged to perform a repeat-dose GLP toxicology study in rats
to support the proposed clinical dosing schedule ($150,000; 6 months).
Immunology assays and product release assays must be developed and applied
($100,000; 3 months). An "opinion leader" clinical researcher experienced with
hepatitis C will be sought to conduct the PhaseI and Phase II protocols. A
pre-IND meeting will take place with FDA to discuss the clinical plan and any
remaining issues. If requested, appropriate in vitro and
animal models (chimpanzee hepatitis C challenge model) will be utilized for
additional proof-of-concept testing and screening prior to human safety and
efficacy studies ($500,000 chimp challenge study).

Initial PhaseI clinical trials will
be conducted in normal healthy volunteers evaluating safety and immunology
($300,000; 6 months). At this point, the company will plan two different Phase
II studies as a prophylacitic vaccine (randomized and controlled study in high
risk volunteers) and as a therapeutic vaccine (randomized and controlled study
in chronically-infected volunteers with measurable viral load). These
studies of 60 subjects each are projected to cost $500,000 and $650,00,
respectively and last 12-18 months duration. The Company anticipates entry into
advanced, randomized Phase II-III clinical trials in both patient populations
over 18 months and a Biologic
LicenseApplicationwithin36monthsofbeginningaPhaseIIIpivotaltrial(basedonOrphanDrug
designation, Expedited Review and Fast-Track Approval).

It is the company's intention to
out-license the preventative vaccine development efforts to Chiron Corporation
while retaining the therapeutic vaccine rights in all markets. The company will
either use a contract marketing organization to market to sell the therapeutic
vaccine product for the company, or assemble our own marketing and sales force
for the U.S., while licensing in all other areas. Product launch costs in the
U.S and Europe are estimated to cost around $3 million. We will partner with
Asian partners for marketing and sales in that market area.

V. MARKET ANALYSIS

The Vaccine Market

VIRIONICS plans to research,
develop, and manufacture this entirely new class of immunotherapy, targeting
diseases with tremendous market potential and for which no effective vaccines
currently exist. These markets include chronic infectious diseases (like HIV,
hepatitis B, hepatitis C, etc.), cancers (breast, prostate, colon, cervical,
etc.), and chronic inflammatory diseases (arthritis, Crohn's, and
allergy).

The current global market for
infectious disease preventative vaccines surpass $7 Billion and is expected to
grow at a compounded annual rate exceeding 10% throughout the license period,
reaching —$30 Billion by 2015. VIRIONICS cummulative revenue
expectations approach $1 Billion within five years of its initial product
launches for products in these large markets. There are no approved and marketed
vaccines for treatment of chronic infectious diseases, nor for treatment or
prevention of cancers or chronic inflammatory diseases.

VIRIONICS therapeutic vaccine
platform is unique in its ability to directly activate antigen-presenting cells
of the body's immune system, especially dendritic cells. The Company has
identified chronic infectious diseases (HIV, HBV, HCV, HPV), cancer (breast
cancer, prostate cancer, and cervical cancer) and chronic inflammatory diseases
(allergy, Crohn's, and arthritis) as its initial target market indications for
therapy. The company's market research validates our believe that products for
these conditions could generate total annual sales revenue in excess of $1
billion for many of the product indications.

The Hepatitis C
Market

There are no effective preventative
vaccines or therapeutic agents that are active against hepatitis C. It is
suspected that there are over 5 million people in the U.S. that are infected
with hepatitis C and perhaps as many as 200-400 million around the world. This
patient population would be the target market for a therapeutic vaccine.
According to 1996 statistics, there are an estimated 36,000 new cases of
hepatitis C diagnosed in the U.S. each year; 66% of those infected are
baby-boomers between the ages of 30-49 years old. Hepatitis C causes chronic
lever disease in 20% of those infected.

This often leads to cirrhosis of the
liver, cancer of the liver and liver failure. Each year hepatitis C causes
8,000-10,000 deaths. It is estimated that hepatitis C costs the U.S. over $600
million in medical costs and lost work (excluding liver transplants). For
patients who do not undergo liver transplants, the average lifetime cost of
hepatitis C is over $100,000, a staggering $500 billion total patient cost in
today's dollars (5 million patients x $100,000).

For a safe and effective new
immunotherapy product used in the treatment of hepatitis C chronic infection,
the annual U.S. sales based on a very conservative 20% market share, would be
estimated at $1 Billion (20% of 5 million = 1,000,000 x $1,000 per course of
therapy).

OTHERINFORMATIONWHICH YOU BELIEVE WILLSUPPORT A

DETERMINATION TO GRANT THE REQUESTED LICENSE

VIRIONICS is totally focused
on the development and commercialization of this core platform technology. We
are building a company around this core technology and strongly believe we can
raise the capital and fund the research and development of several products from
this baseline vaccine platform technology. Because of limited interest by other
companies to date in an exclusive license to develop therapeutic and
preventative vaccine products in the field of hepatitis C prevention and
treatment, we request your consideration of granting us the requested license.
Also because of close location of our corporate offices and research labs to the
NIH campus, our intent to support continued R&D efforts in the labs of the
NIH inventors, we suggest this clearly justifies our interest and dedication to
this technology license and its medical applications.

	VI. 	FOR APPLICANTS
      FOR EXCLUSIVE OR PARTIALLY EXCLUSIVE LICENSES ONLY

It is important that this particular
technology become commercialized and VIRIONICS is dedicated to its comprehensive
development for hepatitis C treatment and prevention. As U.S. taxpayers, we
believe the Federal and public interests will best be served by a small
entrepreneureal U.S. company, VIRIONICS, obtaining an exclusive license to this
invention. It is a major dis-incentive for the company and our private and
institutional investors to invest a tremendous amount of capital on a
proprietary technology if several other companies are allowed to practice the
same inventions. The protection and market exclusivity granted by an exclusive
license is fundamental to the company's success at raising the money needed to
commercialize the products envisioned from this enabling technology. The
granting of non-exclusive licenses to this important technology, or the division
into much smaller and limited fields-of-use, will not provide proper incentives
for investment of risk capital. A non-exclusive license is just not practical
nowdays as a platform for building a successful company. There is already
tremendous market concentration in the fields of infectious disease vaccines and
immunotherapies, and the exclusive licensing of these inventions will certainly
not lessen competition in these markets. The proposed license terms and scope of
exclusivity are not that different than other license agreements concluded in
the past by the Federal government, or by other academic or industrial
organizations for other similar technology. We feel the proposed terms are
reasonable and just, but the final terms of the license proposal can be modified
as negotiated in the final license agreement.

I certify, to the best of my
knowledge, that all of the information provided on this application and on
attachments to this application is true and accurate.

	               
         Joseph Sinkule 	 	October 22, 2002 
	 x 	 	 
    
	Signature of Applicant or Authorized Representative Date
	 	  

	Dr. Joseph A. Sinkule, President VIRIONICS
      CORPORATION 	 
	 	 

- 2 -

Schedule 2- PERMITS AND LICENSES

There are no permits or licenses required except for the
License agreement attached herein 
As Schedule 1

Schedule 3 Form of Consulting Agreement Dr. Joseph Sinkule
attached as a appending document

subsequent to the daqte of the Asset
Agreement.

MANAGEMENT CONSULTING AGREEMENT

THIS AGREEMENT is made effective the 15 day of January,
2010

BETWEEN:

Dr. Joseph Sinkule (the
"Consultant") whose residence 

Is 42191 N. 111th Place,
Scottsdale, AZ 85262 USA

AND:

Cyplasin Biomedical Ltd, (the
"Company") a Nevada 
company, having an office at Unit 131 9650-20th Street,

Edmonton Alberta Canada T6N 1G1

WHEREAS:

A. The Company is a United States reporting company under the
US Securities Exchange Act of 1934; and

B. The Company is engaged in the development and
commercialization of products used for the prevention and treatment of hepatitis
viral infections and wishes to engage the Consultant to provide, and the
Consultant has agreed to provide to the Company, certain management services in
the role as Director and Chief Development Officer of the Company (CDO).

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of
the sum of $1.00 now paid by each of the parties to the other and for
other good and valuable consideration the receipt and sufficiency of which are
hereby acknowledged by both parties) and in consideration of the premises and
the mutual covenants and agreements set forth herein, the parties hereto
covenant and agree as follows:

ARTICLE 1
DEFINITIONS AND INTERPRETATIONS

	1.1 	
      Definitions

	 	 	 
		
      In this Agreement, the following words and phrases,
      unless there is something in the context inconsistent therewith, shall
      have the following meanings:

	 	 	 
		(a) 	
      "Agreement" means this agreement dated as of June
      1, 2009 and made between the Company and the Consultant as the same is
      from time to time amended;

	 	 	 
		(b) 	
      "Board" means the Board of Directors of the
      Company;

	 	 	 
		(c) 	
      "Business" means the business carried on by the
      Company from time to time;

	 	 	 
		(d) 	
      "Business Day" means any day other than a day which is
      a Saturday, a Sunday or a statutory holiday in Edmonton,
    Alberta;

	 	(e) 	
      "Term" means the term during which this
      Agreement shall be in full force as defined by section 5.1 of this
      Agreement; and any other capitalized term shall have the meaning ascribed
      to it in this Agreement.

	1.2 	
  Captions and Section Numbers

	 	 
		
      The headings and section references in this Agreement are
      for convenience of reference only and do not form a part of this Agreement
      and are not intended to interpret, define or limit the scope, extent or
      intent of this Agreement or any provision thereof.

	 	 
	1.3 	
      Extended Meanings

	 	 
		
      The words "hereof", "herein", "hereunder" and similar
      expressions used in any clause, paragraph or section of this Agreement
      shall relate to the whole of this Agreement and not to that clause,
      paragraph or section only, unless otherwise expressly provided.

	 	 	 
	1.4 	
      Number and Gender

	 	 	 
		
      Whenever the singular or masculine or neuter is used in
      this Agreement, the same shall be construed to mean the plural or feminine
      or body corporate where the context of this agreement or the parties
      hereto so require.

	 	 	 
	1.5 	
      Section References

	 	 	 
		
      Any reference to a particular "article", "section",
      "subsection" or other subdivision is to the particular article, section or
      other subdivision of this Agreement.

	 	 	 
	1.6 	
      Governing Law

	 	 	 
		
      This Agreement and all matters arising hereunder shall be
      governed by, construed and enforced in accordance with the laws of the
      State of Nevada and the federal laws of United States of America
      applicable therein and all disputes arising under this Agreement shall be
      referred to the Courts of the State of Nevada.

	 	 	 
	1.7 	
      Severability of Clauses

	 	 	 
		
      In the event that any provision of this Agreement or any
      part thereof is invalid, illegal or unenforceable, such provision shall be
      ineffective to the extent of such illegality or unenforceability, but
      shall not invalidate or affect the validity, legality and enforceability
      of the remaining provisions of this Agreement.

	 	 	 
	1.8 	
      Currency

	 	 	 
		
      All sums of money to be paid or calculated pursuant to
      this Agreement shall be paid or

	 	 	 
		
      be construed as a whole andneither strictly for
      nor strictly against any of the parties.

	 	 	 
	1.10 	
      Action on Non- Business
  Day

     If by the terms of this Agreement
any payment, delivery or event provided for herein is scheduledto takeplace
atatimewhichfallsonadaywhichisnotaBusinessDay,suchdelivery, payment or event
shall take place on the first Business Day next following.

ARTICLE 2
ENGAGEMENT OF CONSULTANT

	2.1 	
      Engagement of
Consultant

		
      Subject to the terms and conditions of this Agreement,
      the Company hereby engages the Consultant for the Term to provide to the
      Company certain management services including, without limitation,
      scientific oversight of all R&D activities, product development
      activities interactions with R&D staff and or such similar other
      Company consultants, scientific business administration, corporate
      planning and governance as it pertains to the managing of manufacturing,
      product regulatory affairs and clinical development and assisting in the
      raising of capital.

	 	 	 
	2.2 	
      Duties and Responsibilities

	 	 	 
		
      Without limiting the generality of section 2.1, the
      Consultant shall:

	 	 	 
		(a) 	
      perform such management services in relation to the
      Company and the Business as the Board from time to time may request of
      it;

	 	 	 
			
      in the performance of his management services, observe
      and comply with all policies and guidelines of the Company and all
      resolutions and directions from time to time made or given by the
      Board;

	 	 	 
			
      comply with all applicable laws, rules, regulations and
      orders of any authority having jurisdiction over the affairs of the
      Company and the Business;

	 	 	 
			
      perform his management services honestly, in good faith
      and in the best interests of the Company exercising the degree of care,
      diligence and skill that a reasonably prudent person would exercise in
      comparable circumstances;

	 	 	 
			
      devote so much time and attention to the affairs of the
      Company as is required to complete, or cause the completion of, his
      management services as described in Section 2.1 herein, on a timely
      basis;

	 	 	 
			
      conform to such hours of work as may from time to time be
      reasonably required of it; and perform his management services in such
      manner as the Consultant sees fit provided that such performance shall
      always meet with the standards of the Company.

	 	 	 
	2.3 	
      Consultant Status

	 	 	 
		
      The Consultant shall perform his management services as
      an independent contractor of the Company and neither the Consultant nor
      any of the Consultant's employees is nor shall be deemed to be an employee
      of, or co-venturer or partner of, the Company and nothing in this
      Agreement shall be construed so as to make either the Consultant or any of
      the Consultant's employees an employee of, or co-venturer or partner of,
      the Company. Without limiting the generality of the foregoing, this
      Agreement is an independent contractor agreement and is not nor will it be
      deemed to be an employment agreement, co-venturer agreement or partnership
      agreement and nothing in this Agreement will be construed so as to make
      this Agreement an employment agreement, co-venturer agreement or
      partnership agreement.

	 	 	 
	2.4 	
      No Employment Benefits

	 	 	 
		
      Neither the Consultant nor any of his employees shall be
      entitled to any registered pension fund or plan contributions, group
      sickness or accident insurance coverage, medical service plan coverage,
      supplementary employment benefits, profit sharing or group term life
      insurance, vacation pay or any other type of benefit provided by the
      Company to the employees of the Company.

	 	 	 
	2.5 	
      No Unemployment Benefits

	 	 	 
		
      The Consultant acknowledges that as an independent
      contractor, the Consultant shall not qualify for any assistance under any
      Employment Insurance Act in Canada or the United
States.

ARTICLE 3
 REMUNERATION

	3.1 	
      Remuneration

	 	 
		
      As compensation for his management services, the
      Consultant shall receive a monthly management fee of US$10,000. The
      Company shall pay such management fee monthly on the first day of the
      month to which payment of such management fee relates. If in the event the
      Company is unable to pay such compensation fee, or portion thereof, then
      the amounts left unpaid shall accrue to the benefit of the consultant
      until such time as all fees are paid in full or a suitable debt for stock
      agreement can be put into effect at the discretion of the
    consultant.

	 	 
	3.2 	
      Expenses

     In addition to the remuneration
referred to in section 3.1, the Company shall in line with the reimbursement
policies in effect at the time reimburse the Consultant for all expenses
actually and reasonably incurred by the Consultant for the benefit of the
Company.

	3.3 	
      Stock Options

	 	 
		
      The Consultant shall be entitled to participate in any
      stock option plan the Company may adopt, on such terms as may be
      determined by the Board, subject to any restrictions imposed
    thereon.

ARTICLE 4
CONFIDENTIALITY AND COMPANY
CLIENTS

	 4.1 	Company Confidential
      Information 
	  	  	  
	  	The Consultant acknowledges and
      agrees that: 
	  	  	  
		(a) 	
      proprietary, financial and confidential information and
      materials relating to the Company have been, and will in the future be,
      disclosed to the Consultant (the "Company Confidential Information");
    

	  	  	
   

		(b) 	
      the Company Confidential Information is the exclusive
      property of the Company and that all right, title and interest in and to
      the Company Confidential Information shall remain the property of Company
      and shall be held in confidence by the Consultant; and 

	  	  	
   

		(c) 	
      the Company Confidential Information derives its value
      from not being generally known to the public or by other persons who can
      obtain economic value or other advantage from its disclosure and use, and
      is subject to efforts by the Company to maintain its confidentiality.
    

	  	  	
   

	4.2 	Consultant Confidentiality
      Covenants 
	  	  	
   

	  	The Consultant covenants and agrees
      that: 
	  	  	
   

		(a) 	
      he shall not directly or indirectly acquire any
      proprietary interest in, or otherwise deal with or use, the Company
      Confidential Information except as reasonably required for the Business;
      

	  	  	
   

		(b) 	
      he shall use his best efforts to keep confidential and
      protect the Company Confidential Information and the interests of the
      Company in the Company Confidential Information and shall exercise the
      degree of care that the owner of such information would reasonably be
      expected to employ for his own benefit with respect to his own proprietary
      and confidential information; and 

	  	  	
   

		(c) 	
      he shall not directly or indirectly disclose, allow
      access to, or transfer the Company Confidential Information to third
      parties, excluding employees of the Consultant, without the prior written
      consent of the Company. 

	  	  	  
	4.3 	Covenants Survive 
	  	  	  
	  	The covenants and agreements in
      sections 4.2: (b) shall survive the termination of this
      Agreement. 

ARTICLE 5
TERM AND TERMINATION

	5.1 	
      Term

	 	 	 	 
		
      Unless otherwise terminated as provided for in section
      5.3, this Agreement shall be in full force for an initial term commencing
      the date first above written and ending midnight January 14,
  2013.

	 	 	 	 
	5.2 	
      Renewal

	 	 	 	 
		
      Unless notice of termination has been given by either the
      Company or the Consultant not less than 21 days prior to the expiry of the
      Term, this Agreement shall be automatically renewed for a further one year
      term from and including the day immediately following the last day
      of the Term on the same terms and conditions as contained in this
      Agreement (including this term and condition) as amended from time
      to time, unless earlier terminated pursuanttosection5.3.

	 	 	 	 
	5.3 	
      Early Termination

	 	 	 	 
		
      Notwithstanding the other provisions of this Agreement,
      this Agreement shall be terminated as follows:

	 	 	 	 
		(a) 	
      forthwith by the Company on written notice to the
      Consultant in the event of:

	 	 	 	 
			(i) 	
      the commission by the Consultant of any material
      fraudulent act in performing any of the Consultant's obligations under
      this Agreement;

	 	 	 	 
			(ii) 	
      thecommissionofanymaterialmisrepresentationtotheCompanyby
      theConsultant;

	 	 	 	 
			(iii) 	
      failure of the Consultant to perform his duties and
      discharge his obligations under this Agreement;

	 	 	 	 
			(iv) 	
      the malfeasance or misfeasance of the Consultant in
      performing his duties and discharging his obligations under this
      Agreement; or

	 	 	 	 
			(v) 	
      other just cause such as disability to perform during a
      period of 6 weeks or longer; or where the service of the consultant can
      not be carried out by the consultants designate or;

	 	 	 	 
		(b) 	
      forthwith upon the mutual agreements of all the parties
      to this Agreement;

	 	 	 	 
		(c) 	
      forthwith upon the occurrence of any one of the following
      events:

	 	 	 	 
			
      (ii) 
	if a bankruptcy petition is filed or
      presented against either the Company or the Consultant and is not
      continually contested;
	 	 	 	 
			(iii) 	
      if any order is made or resolution passed for the winding
      up, dissolution or liquidation of the Company, or if the Company has its
      existence otherwise terminated; or

	 	 	 	 
			(iv) 	
      either the Company or the Consultant ceases to carry on
      business in the ordinary course; or

	 	 	 	 
		(d) 	
      forthwith by the Company and the Consultant upon the
      Company and the Consultant being advised in writing by any securities
      authority having jurisdiction over the affairs of the Company that this
      Agreement is unsatisfactory for a public company, provided that the
      Company and the Consultant have entered into a new management agreement on
      terms and conditions acceptable to the Company, the Consultant and, as
      necessary, all securities regulatory authorities having jurisdiction over
      the affairs of the Company.

	5.4 	 Effect of Termination  
	 	 
	  	 Upon the termination of this
      Agreement, the obligations of the parties shall cease and determine
      except: 
	 	 
		(a) 	the Consultant shall deliver to the Company, in
      a reasonable state of repair, all property, personal or real, owned or
      leased by the Company and bailed to the Consultant and used by, or in the
      possession of, the Consultant or any of the Consultant's employees; 
	 	 	 
		(b) 	the provisions of Article 4 5 & 6 shall
      continue to bind the Company and the Consultant; and 
	 	 	 
		(c) 	the Company shall pay all amounts due to the
      Consultant as of such termination date. 
	 	 	 
	 5.5 	Sole Provisions

This Agreement may only be terminated in accordance with the
provisions of this Article.

ARTICLE 6 
GENERAL PROVISIONS

	6.1 	
      Notices

	 	 
		
      All notices, requests, demands and other
      communications hereunder shall be in writing and shall be deemed to have
      been duly given if delivered by telecopier, scanned email in PDF format or
      hand or mailed postage prepaid addressed as set out on the face page of
      this Agreement or to such other address as may be given in writing by the
      parties and shall be deemed to have been received, if delivered by
      telecopier or hand, on the date of delivery and if mailed as aforesaid to
      the addresses set out above then on the fifth business day following the
      posting thereof provided that if there shall be between the time of
      mailing and the actual receipt of the notice a mail strike, slowdown or
      other labour dispute which might affect the delivery of the notice by the
      mails, then the notice shall only be effective if actually
      delivered.

	 	 
	4 	
      Time of Essence

Time is hereby expressly made
of the essence of this Agreement with respect to the performance by the
parties of their respective obligations under this Agreement.

	6.3 	
      Arbitration

	 	 
		
      Any dispute or disagreement among the parties with
      respect to this Agreement may be referred to a single arbitrator pursuant
      to the Arbitration Act provided that if the parties are
      unable to agree on the appointment of a single arbitrator, each of the
      Company and the Consultant will appoint an arbitrator and the two
      arbitrators so appointed will appoint a third arbitrator to act as
      chairman. The determination of the arbitrator or arbitrators will be final
      and binding on the parties hereto and the cost of arbitration will be
      borne equally by the Company and theConsultant.

	 	 
	6.4 	
      Binding Effect

	 	 
		
      This Agreement shall inure to the benefit of and be
      binding upon the parties hereto and their respective heirs,
      executors,administrators, personal representatives, successors and
      assigns.

	 	 
	6.5 	
      Entire Agreement

	 	 
		
      This Agreement constitutes the entire agreement between
      the parties with respect to the subject matter hereof and shall supersede
      all previous expectations, understandings, communications, representations
      and agreements whether verbal or written between the parties with
  respect to the subject matter hereof.

	6.6 	
      Further Assurances

	 	 
		
      Each of the parties hereto hereby covenants and agrees to
      execute such further and other documents and instruments and do such
      further and other things as may be necessary or desirable to implement and
      carry out the intent of this Agreement.

	 	 
	6.7 	
      Assignment

	 	 
		
      None of the parties may assign or transfer their
      respective rights under this Agreement without the prior written consent
      of the other party hereto.

	 	 
	6.8 	
      Amendments

	 	 
		
      No amendment to this Agreement shall be valid unless it
      is evidenced by a written agreement executed by all of the parties
      hereto.

	 	 
	6.9 	
      Counterparts

	 	 
		
      This Agreement may be executed in several counterparts
      each of which when executed by any party hereto shall be deemed to be an
      original and such counterparts shall together constitute one and the same
      instrument.

	 	 
	6.10 	
      Non Compete

	 	 
		
      In the event of any termination of this agreement, the
      Consultant agrees he may not be employed, or own more then substantially
      50% of any corporation, or enter into any activity which is in direct
      competition with the Company for a period following three years of effect
      of such termination. This period of time may at the discretion of the
      board of directors be reduced or waived where it can be sufficiently
      demonstrated by the consultant to the board that direct competition does
      not exist.

IN WITNESS WHEREOF the parties hereto have executed this
Agreement on the day and year first above written.

	Cyplasin Biomedical Ltd 	 	Consultant 
	 	 	 
	Per: /s/ Garth Likes	 	Per: Dr. Joseph
  Sinkuleimsc8k_ex10-1.htm

Exhibit 10.1

 

 

OMNIBUS FIFTH AMENDMENT TO CREDIT AGREEMENT AND

 

SEVENTH AMENDMENT TO NOTE AND WARRANT PURCHASE AGREEMENT

 

This Omnibus Fifth Amendment to Credit Agreement and Seventh Amendment to Note and Warrant Purchase Agreement (“Amendment”) is made as of the 7th day of April, 2011 between Implant Sciences Corporation, a Massachusetts corporation (the “Company”), and DMRJ Group LLC, a Delaware limited liability company (the “Investor”).

BACKGROUND

 

A. Company and Investor are parties to a certain Note and Warrant Purchase Agreement dated as of December 10, 2008 (as modified or amended from time to time, including, without limitation, as amended by that certain Omnibus Waiver and First Amendment to Credit Agreement and Third Amendment to Note and Warrant Purchase Agreement dated as of January 12, 2010 (the “First Omnibus Amendment”), that certain Omnibus Second Amendment to Credit Agreement and Fourth Amendment to Note and Warrant Purchase Agreement dated as of April 23, 2010 (the “Second Omnibus Amendment”), that certain Omnibus Third Amendment to Credit Agreement and Fifth Amendment to Note and Warrant Purchase Agreement dated as of September 30, 2010 (the “Third Omnibus Amendment”), and that certain Omnibus Fourth Amendment to Credit Agreement and Sixth Amendment to Note and Warrant Purchase Agreement dated as of March 30, 2011 (the “Fourth Omnibus Amendment” and collectively, the “Purchase Agreement”), pursuant to which, among other things, Investor purchased that certain Amended and Restated Senior Secured Convertible Promissory Note dated March 12, 2009 in the original aggregate principal amount of $5,600,000 (the “March 2009 Note”).

 

B. Pursuant to the Purchase Agreement, Investor subsequently purchased that certain Senior Secured Promissory Note dated July 1, 2009 in the original aggregate principal amount of $1,000,000 (the “July 2009 Note” and together with the March 2009 Note, the “Term Notes” and each a “Term Note”).

 

C.   The Purchase Agreement and all instruments, documents and agreements executed in connection therewith, or related thereto, including, without limitation, the March 2009 Note and the July 2009 Note, are referred to herein collectively as the “Purchase Documents”.

 

D. Company and Investor are also parties to a certain Credit Agreement dated September 4, 2009 (as modified or amended from time to time, including, without limitation, as amended by the First Omnibus Amendment, the Second Omnibus Amendment, the Third Omnibus Amendment and the Fourth Omnibus Amendment, the “Credit Agreement”), pursuant to which, among other things, the Company executed and delivered to Investor that certain Promissory Note dated September 4, 2009 in the original aggregate principal amount of $3,000,000 (as amended by that certain Amended and Restated Promissory Note dated January 12, 2010 in the original aggregate principal amount of $5,000,000, that certain Amended and Restated Promissory Note dated as of April 23, 2010 but effective as of April 7, 2010 in the original aggregate principal amount of $10,000,000, and that certain Amended and Restated Promissory Note dated as of March

 

 

  

  

  

 

30, 2011 in the original aggregate principal amount of $15,000,000, the “Revolver Note” and together with the March 2009 Note and the July 2009 Note, each a “Note” and collectively, the “Notes”).

 

E. The Credit Agreement and all instruments, documents and agreements executed in connection therewith, or related thereto, including, without limitation, the Revolver Note, are referred to herein collectively as the “Credit Documents” and together with the Purchase Documents, each a “Transaction Document” and collectively, the “Transaction Documents”.

 

F. Company has requested that Investor modify certain definitions, terms and conditions in the Transaction Documents, and Investor is willing to do so on the terms and conditions hereafter set forth.

 

G. All capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Transaction Documents.

 

NOW, THEREFORE, with the foregoing Background incorporated by reference and made a part hereof and intending to be legally bound, the parties agree as follows:

 

1. Amendments to the Transaction Documents.  Upon the effectiveness of this Amendment:

 

(a) Maturity Date.  Notwithstanding anything to the contrary contained in any of the Transaction Documents (including, without limitation, any of the Notes), the “Maturity Date” (as defined in the March 2009 Note, the July 2009 Note and the Credit Agreement) shall be defined as September 30, 2011.

 

(b) Financial Covenants. Notwithstanding anything to the contrary contained in the Purchase Agreement, the Credit Agreement and the Transaction Documents, Investor and the Company agree and acknowledge that the financial covenants contained in Sections 3.29(a), 3.30, 3.32 and 3.33 of the Purchase Agreement and Sections 5.1(q)(i), (r), (t) and (u) of the Credit Agreement shall not be tested from the date hereof through September 30, 2011 (it being understood that any failure to comply with such covenants during such period shall not cause or result in any default or Event of Default).

 

(c) Prepayment Notice. The words “three (3) Business Days” in the penultimate sentence of Section 1.3 of the March 2009 Note shall be replaced with the words “ten (10) days”.

 

(d) Prepayment Payments. Notwithstanding anything to the contrary contained in the Purchase Agreement, the Credit Agreement and the Transaction Documents (including, without limitation, Section 2.9(b)(i) of the Credit Agreement), (1) following an Event of Default under any Transaction Document, all prepayments and proceeds of Collateral shall be applied by Investor in its sole discretion; (2) so long as no Event of Default has occurred and is continuing under any Transaction Document, all prepayments and proceeds of Collateral shall be applied by Investor as follows:

 

(i) first, to pay Obligations in respect of any cost or expense reimbursements, indemnities or other liabilities then due to Investor until such Obligations have been paid in full;

 

 

  

2

  

 

(ii) second, to pay Obligations in respect of any fees then due to Investor until such fees have been paid in full;

 

(iii) third, to pay interest due in respect of the Obligations until such interest has been paid in full;

 

(iv) fourth, to pay the outstanding principal amount of the Advances (as defined in the Credit Agreement);

 

(v) fifth, to pay the outstanding principal amount on account of the July 2009 Note;

 

(vi) sixth, to pay the outstanding principal amount on account of the March 2009 Note;

 

(vii) seventh, to all other unpaid Obligations until such Obligations have been paid in full; and

 

(viii) eighth, to the Company, or as otherwise required by law

 

(e) Section 3.6(a)(ii) of the March 2009 Note shall be deleted and replaced with the words “Reserved”.

 

(f) Section 3.2 of the March 2009 Note shall be amended and restated as follows:

 

“Section 3.2  Conversion Price.  The term “Conversion Price” shall mean eight cents (0$.08), subject to adjustment under Section 3.6 hereof (the “Set Price”).”

 

(g) Section 4(c) of the Amended and Restated Warrant to purchase 1,000,000 shares of Common Stock originally issued to the Investor on December 10, 2008 (the “Warrant”) shall be deleted and replaced with the words “Reserved”

 

(h) Section 9 of the Warrant shall be amended by amending and restating the definition of “Warrant Price” as follows:

 

““Warrant Price” means U.S. $0.08, as such price may be adjusted from time to time as shall result from the adjustments specified in this Warrant, including Section 4 hereto.”

 

2. Exchanges.

 

(a) Promptly following the Effective Date (as defined below), the Company shall file with the Secretary of the Commonwealth of Massachusetts Articles of Amendment, in the form attached as Exhibit A hereto (the “Articles of Amendment”), designating 650,000 shares of Preferred Stock of the Company as  Series G Convertible Preferred Stock, par value $0.10 per share (the “Series G Preferred Stock”). The Company hereby agrees to issue to the Investor, immediately upon the effectiveness of such Articles of Amendment, 164,667 shares (the “Closing Shares”) of Series G Preferred Stock in exchange for 1,646,663 shares (the “Original Shares”) of

 

 

  

3

  

 

Series F Convertible Preferred Stock, par value $0.10 per share of the Company (the “Series F Preferred Stock”) and the Investor hereby agrees to transfer and deliver to the Company duly endorsed for transfer the Series F Preferred Stock in exchange for the issuance of the Closing Shares by the Company (the “Closing Exchange”).

 

(b) Notwithstanding anything else contained in the  Transaction Documents to the contrary, following receipt by Investor of a notice of a prepayment under Section 1.3 of the March 2009 Note (as modified by this Amendment), Investor shall have the right upon five (5) Business Days prior written notice to the Company, to cause the Company to exchange all or a portion of the March 2009 Note for additional shares of Series G Preferred Stock at the rate of 0.01 of a share of Series G Preferred Stock for each share of Common Stock into which such March 2009 Note being exchanged could have been converted into on such date in accordance with its terms.  No fractional shares of Series G Preferred Stock will be issuable in connection with any such exchange and the Company shall issue to Investor one whole share of Series G Preferred Stock in lieu of such fractional share.

 

(c) The Series G Preferred Stock and the common stock issuable upon conversion of the Series G Preferred Stock (the “Series G Conversion Shares”) shall be “Securities” as such term is defined in the Purchase Agreement.  All references to Warrant Shares in Section 3.27 of the Purchase Agreement are hereby amended to refer to Warrant Shares Conversion Shares and Series G Conversion Shares.  For avoidance of doubt, nothing in this Section 2 shall prohibit, limit, or in any way restrict the right and ability of the Investor to convert the March 2009 Note into Common Stock in accordance with its terms.

 

3. Consent Right. Notwithstanding anything else to the contrary contained in the Transaction Documents, the Company shall not issue or sell any equity securities of the Company  or any rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable for such securities (“New Securities”) at a purchase price or exercise price, as the case may be, equal to or less than $0.15 per share without the prior written consent of the Investor.

 

4. Right of First Offer.

 

(a) If the Company intends to offer for sale or sell any New Securities, the Company shall give notice (the "Offer Notice") to the Investor, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities.

 

(b) By notification to the Company within twenty (20) days after the Offer Notice is given, the Investor may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, all or a portion of such New Securities.

 

(c) If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided above, the Company may, during the ninety (90) day period following the expiration of the Offer Notice period, offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement for the sale of the New Securities within such period, or if such agreement

 

 

  

4

  

 

is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Investor.

 

(d) The right of first offer describe above shall not be applicable to the issuance of securities pursuant to the conversion, exercise, or exchange of securities outstanding on the date hereof or to the issuance of any shares of Common Stock or options issued to employees or directors of, or consultants or advisors to, the Company or any of its subsidiaries pursuant to one or more benefit plans, agreements or arrangements approved by the Compensation Committee of the Company’s Board of Directors; provided, however, that (i) a majority of the members of the Compensation Committee approving any such issuance must be “Non-Employee Directors,” as that term is defined in Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended, or any successor provision, and (ii) the Company shall not, after the Effective Date, amend any such benefit plan, agreement or arrangement to increase the number of shares of Common Stock issuable thereunder (other than to make appropriate adjustments upon any stock split, stock dividend or other similar change in the Company’s capital structure), without the prior written consent of the Investor.

 

5. Representations and Warranties of the Company.  Company represents and warrants to Investor that:

 

(a) All warranties and representations made to Investor under the Transaction Documents are true and correct, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified by materiality, Material Adverse Effect or dollar thresholds in the text thereof), as to the date hereof unless they specifically relate to an earlier date in which case they shall be true and correct as of such date, other than as set forth on the disclosure schedules (the “Updated Disclosure Schedules”) to be delivered to Investor pursuant to Section 4 below (the numbers of which shall correspond to the numbers of the disclosure schedules to the applicable Transaction Document); notwithstanding the foregoing, the representations and warranties made as of the Closing Date (as defined in the Purchase Agreement) in Section 2.1(c) of the Purchase Agreement shall be made as of the date hereof.

 

(b) The Company and the Guarantors (as applicable) have the requisite corporate power and authority to enter into and perform this Amendment in accordance with the terms hereof.  The execution, delivery and performance of this Amendment by the Company and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action, no further consent or authorization of the Company, its Board of Directors, stockholders or any other third party is required.  When executed and delivered by the Company and the Guarantors, this Amendment shall constitute a valid and binding obligation of the Company and the Guarantors enforceable against the Company and the Guarantors in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

(c) This Amendment, and all other documents, instruments and agreements executed in connection with this Amendment and any assignment, instrument, document, or

 

 

  

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agreement executed and delivered in connection herewith, will be valid, binding, and enforceable in accordance with its respective terms.

 

(d) Upon the effectiveness of this Amendment, no default or Event of Default is outstanding under any of the Transaction Documents.

 

6. Representations and Warranties of the Investor.  Investor represents and warrants to Company that:

 

(a) Investor has the requisite power and authority to enter into and perform this Amendment in accordance with the terms hereof.  The execution, delivery and performance of this Amendment by Investor and the consummation by it of the transactions contemplated hereby have been duly and validly authorized by all necessary action, no further consent or authorization of the Investor, its managers, members or any other third party is required.  When executed and delivered by Investor, this Amendment shall constitute a valid and binding obligation of Investor enforceable against Investor in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, reorganization, moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the enforcement of, creditor’s rights and remedies or by other equitable principles of general application.

 

(b) Investor is the sole lawful owner, beneficially and of record, of 1,646,663 shares of Series F Preferred Stock. Such shares of Series F Preferred Stock constitute all of the Original Shares owned beneficially or of record by the Investor, and the Company has no obligation, contingent or otherwise, issued additional shares of Series F Preferred Stock to the Investor. Investor has good and marketable title to the Original Shares, free and clear of any and all liens, charges and encumbrances of any kind or description. Investor hereby further represents and warrant that there are no pending, or to Investor’s knowledge, threatened suits, claims or actions with respect to the Original Shares. Upon the consummation of the transactions at the Closing Exchange, Company will acquire from Investor good title to such Original Shares, free and clear of all liens, charges, encumbrances, debt, restrictions, rights, claims, options to purchase, proxies, voting trusts, rights of first refusal, or similar rights and other voting agreements, calls and commitments of any kind.

 

(c) Investor hereby represents and warrants to Company that Investor will acquire the shares of Series G Preferred Stock issuable in the Closing Exchange solely for its own account and not with a view to or for sale in connection with distribution.  Investor does not have a present intention to sell any of the shares of Series G Preferred Stock or any shares of Common Stock issuable upon conversion of the such shares, nor a present arrangement (whether or not legally binding) or intention to effect any distribution of any of such securities to or through any person or entity; provided, however, that by making the representations herein, Investor does not agree to hold any of such securities for any minimum or other specific term and reserves the right to dispose of the securities at any time in accordance with Federal and state securities laws applicable to such disposition. Investor further represents and warrants to Company that (i) Investor has such knowledge and experience in financial and business matters that Investor is capable of evaluating the merits and risks of the proposed investment in such securities; (ii) Investor understands that neither the shares of Series G Preferred Stock nor any shares of Common Stock issuable upon conversion of such shares may be sold, transferred or otherwise disposed of by it without registration under the Securities Act and any applicable state securities laws, or an exemption therefrom, and that in the

 

 

  

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absence of an effective registration statement covering such securities or an available exemption from registration, Investor might be required to hold such securities indefinitely; and (iii) Investor is an “accredited investor” within the meaning of Regulation D promulgated under the Securities Act.

 

7. Effectiveness Conditions.  This Amendment shall be effective upon completion of the following conditions precedent (all documents to be in form and substance satisfactory to Investor and Investor’s counsel) which shall take place on the date hereof or such other date as agreed to by the parties hereto (the “Effective Date”):

 

(a) Delivery by Company to Investor of a secretary’s certificate, dated as of the date hereof, as to (i) the resolutions adopted by the Board of Directors approving the transactions contemplated hereby, (ii) the Articles of Organization, (iii) the Bylaws, each as in effect as of the date hereof, and (iv) the authority and incumbency of the officers of the Company and the Guarantors executing this Amendment, and any other documents required to be executed or delivered in connection therewith; and

 

(b) Execution and delivery by Company and each Person who delivered a Guarantee to Investor in connection with the Transaction Documents (each a “Guarantor” and collectively, the “Guarantors”) to Investor of this Amendment; and

 

(c) Execution and/or delivery by Company of all agreements, instruments and documents requested by Investor to effectuate and implement the terms hereof and the Transaction Documents.

 

8. Additional Covenants.

 

(a) Within two (2) Business Days after the Effective Date, the Company shall file the Articles of Amendment with the Secretary of the Commonwealth of Massachusetts. Within three (3) Business Days after the Articles of Amendment become effective under Massachusetts law (i) the Company shall deliver to the Investor one (1) or more certificates, duly executed by the Company, representing the Closing Shares, registered in the name of the Investor, and (ii) the Investor shall deliver to the Company two (2) certificates representing an aggregate of 1,646,663 shares of Series F Preferred Stock, duly endorsed for transfer to the Company. 

 

(b) Promptly, but in any event not less than fifteen (15) days after the date hereof, the Company shall deliver to Investor the Updated Disclosure Schedules, in form and substance satisfactory to Investor.

 

9. Expenses.  The Company shall pay any and all costs, fees and expenses of Investor (including without limitation, attorneys’ fees) in connection with this Amendment and the transaction contemplated hereby.  The Company shall pay such amounts upon execution of this Amendment.

 

10. No Waiver.  Investor reserves all of its rights and remedies arising with respect to any and all defaults or events of defaults under the Transaction Documents that may be in existence on the date hereof, regardless of whether such defaults or events of default have been identified, or which may occur in the future.  Investor has not modified, is not waiving and has not agreed to forbear in the exercise of, any of its present or future rights and remedies.  No action taken or claimed to be taken by Investor will constitute such a waiver, modification or agreement to forbear.

 

 

  

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This Amendment does not obligate Investor to agree to any other extension or modification of the Transaction Documents nor does it constitute a course of conduct or dealing on behalf of Investor or a waiver of any other rights or remedies of Investor except as and only to the extent expressly set forth herein.  No omission or delay by Investor in exercising any right or power under the Transaction Documents, this Amendment or any related instruments, agreements or documents will impair such right or power or be construed to be a waiver of any default or Event of Default or an acquiescence therein, and any single or partial exercise of any such right or power will not preclude other or further exercise thereof or the exercise of any other right, and no waiver will be valid unless in writing and then only to the extent specified.

 

11. Ratification of Loan Documents.  Except as expressly set forth herein, all of the terms and conditions of the Purchase Agreement, the Credit Agreement and the other Transaction Documents are hereby ratified and confirmed and continue unchanged and in full force and effect.  All references to any of the Transaction Documents shall mean the applicable Transaction Document as modified by this Amendment.

 

12. Confirmation of Indebtedness.  Company confirms and acknowledges that as of the close of business on March 31, 2011, Company was indebted to Investor without any deduction, defense, setoff, claim or counterclaim, of any nature, in the aggregate principal and interest in the amount of $19,004,881.98 of which $4,529,000.00 is due on account of the March 2009 Note, $1,350,916.67  is due on account of the July 2009 Note and $13,124,965.31  is due on account of Advances (as defined in the Credit Agreement), plus all fees, costs and expenses incurred to date in connection with the Purchase Agreement, the Credit Agreement and the other Transaction Documents.

 

13. Collateral.  Company and Guarantors hereby confirm and agree that all security interests and liens granted to Investor pursuant to the Transaction Documents continue in full force and effect and shall continue to secure the Obligations (as defined in the Security Agreements (as defined in the Purchase Agreement and as defined in the Credit Agreement)), including all liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing, under the Notes and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from Investor as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time.

 

14. Acknowledgment of Guarantors.  By execution of this Amendment, each Guarantor hereby acknowledges the terms and conditions of this Amendment and confirms that Guarantors jointly and severally and absolutely and unconditionally guarantee, as surety, all of Guarantied Obligations (as defined in the Guaranty from Guarantors to Investor dated December 10, 2008 and in the Guaranty from Guarantors to Investor dated September 4, 2009) including all liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing, under the Notes and covenants

 

 

  

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that each such Guaranty remains unchanged and in full force and effect and shall continue to cover the existing and future Obligations of Company to Investor.

 

15. Governing Law.  This Amendment shall be governed by and construed in accordance with the internal laws of the State of New York, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction.  This Amendment shall not be interpreted or construed with any presumption against the party causing this Amendment to be drafted.

 

16. Signatories:  Each individual signatory hereto represents and warrants that he or she is duly authorized to execute this Amendment on behalf of his or her principal and that he or she executes the Amendment in such capacity and not as a party.

 

17. Duplicate Originals:  Two or more duplicate originals of this Amendment may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument.  This Amendment may be executed in counterparts, all of which counterparts taken together shall constitute one completed fully executed document.  Signature by facsimile or PDF shall bind the parties hereto.

 

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IN WITNESS WHEREOF, the parties have executed this Amendment the day and year first above written.

 

	
COMPANY:

	
IMPLANT SCIENCES CORPORATION

 

By: /s/ Glenn D. Bolduc

Name: Glenn D. Bolduc

Title:  CEO

 

	
GUARANTORS:

	
C ACQUISITION CORP.

 

 

By: /s/ Glenn D. Bolduc

Name: Glenn D. Bolduc

Title:  President

 

	  	
ACCUREL SYSTEMS INTERNATIONAL CORPORATION

 

 

By: /s/ Glenn D. Bolduc

Name: Glenn D. Bolduc

Title:  President

 

	  	
IMX ACQUISITION CORP.

 

 

By: /s/ Glenn D. Bolduc

Name: Glenn D. Bolduc

Title:  President

 

	
INVESTOR:

	
DMRJ GROUP LLC

 

By: /s/ Daniel J. Small

Name: Daniel Small

Title:  MD

 

 

 

 

[SIGNATURE PAGE TO OMNIBUS AMENDMENT]

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