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                                                                    EXHIBIT 10.7

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November 1, 2001                                              UBC File: 11R05319



BY COURIER

Mr. Gary Jenne
MIVI Technologies Inc.
Unit 1, 8765 Ash Street

Vancouver, BC

V6P 6T3

Dear Gary:

Re:  Collaborative Research Agreement between MIVI Technologies Inc. (the
     "Sponsor") and The University of British Columbia (the "Research
     Organization") dated May 23, 2001 (the "Agreement") - Amendment # 2 -
     Research of Dr. Tom Troczynski
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We refer to the above noted Agreement and our recent discussion in this matter.
Through mutual agreement, we understand that you wish to extend the Agreement
for an additional five (5) months term with an increase in funding in the amount
of $28,200.00 (CAD). With this in mind, UBC proposes to amend the Agreement as
follows:

AMEND ARTICLE 1.1(c) TO READ:

1.1(c) "Contract Period" shall mean October 1, 2001 through February 28, 2002.

AMEND ARTICLE 4.1 TO READ:

"It is agreed to and understood by all parties that, subject to Article 4.3, the
total costs to the Sponsor hereunder shall be $28,200.00CDN. The parties
acknowledge that any budget categories that may be set forth in the description
of the Project are estimates only and that changes from category to category may
be made at the Research Organization's discretion. Invoices shall be issued to
the Sponsor by the Research Organization in accordance with the following
schedule:

     1)  Upon execution of this Agreement..........................$25,000.00CDN
     2)  Upon receipt of final report...............................$3,200.00CDN

Research Organization reserves the right to suspend work on the Project or to
terminate the Project and this Agreement by delivering written notice of same to
the Sponsor if the Sponsor fails to pay any invoiced amount within fifteen (15)
days after the invoice is issued."

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     UNIVERSITY-INDUSTRY   IRC Room 331                     Tel: (604) 822-8580
     LIAISON OFFICE        2194 Health Sciences Mall        Fax: (604) 822-8589
                           Vancouver, BC, Canada V6T 1Z3    Web: www.uilo.ubc.ca


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APPENDIX A: The Agreement is modified by appending the attached Appendix A(1).
Unless specifically modified in this amendment, wheresoever the Agreement refers
to Appendix A, the reference shall be changed to Appendix A(1).

All other terms and conditions will remain the same.

If the foregoing is satisfactory, please have this letter executed on behalf of
MIVI Technologies Inc. in the space provided and return a fully executed copy to
me at your earliest convenience. In the meantime, if you have any questions,
please call me at (604) 822-0362.

Yours truly,



Iris Hnik
Barrister & Solicitor
Contracts Officer
Sponsored Research

IH/dd

cc:  Dr. Tom Troczynski, Department of Metals and Materials Engineering, UBC



Acknowledged and agreed to on behalf of  Acknowledged and agreed to on behalf of
MIVI Technologies Inc. by:               The University of British Columbia by:




---------------------------------------  ---------------------------------------
Name:                                    Name: Angus Livingstone
Title:                                   Title: Managing Director
Date:                                    Date:



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                          PROPOSAL TO MIVI TECHNOLOGIES
                 Term: 5 months (Oct. 1, 2001 - Feb. 28 / 2002)

                      CALCIUM PHOSPHATE COATINGS FOR STENTS
                              PHASE 2 OF THE CRA 1

                                by Tom Troczynski
UBCeram - Ceramics Group at Metals and Materials Engineering of UBC - Sept. 2001

BACKGROUND

         The Phase 1 of this program (within CRA1) has finished Aug. 31, 2001.
The general objective of that program was to demonstrate the viability of the
sol-gel process to coat thin films of HAp on wires and stent surfaces, and to
demonstrate that the coatings do not peel from the surface during placement
(deformation) of the stent. We have shown that the methyl alcohol based sol-gel
process produces good uniformity (~ 0.5 (mu)m thick) amorphous HAp coatings
after heat treatment at 500 degrees C for 10 min. Longer heat treatments
resulted in coating crystallization (and likely densification), which made them
more sensitive to substrate deformation. Behavior of the coating on deforming
substrate (e.g. in terms of adhesion of the coating on the substrate) also
depended critically on surface condition of the substrate, i.e. degree of
roughness.

         Although several surface preparation techniques were tested, and stents
with different surface finish coated, no optimum surface condition was
determined. In particular, stents after deoxidation had relatively rough and
fragmented surface, whereas after electropolishing the surface was relatively
smooth and dense. None of these conditions seems suitable for deposition of
optimum HAp coatings. One of the principal objectives of the Phase 2 of the
program is to determine the optimum surface preparation of the sent to accept
HAp coating, and to retain the coating during the bending-unbending (expansion)
deformation accompanying placement of the stent

         The current state-of-the-art sol-gel process to HAp coatings comprises:
(a) hydrolysing a phosphor precursor in an alcohol based medium ; (b) adding a
calcium salt dissolved in alcohol to obtain a calcium phosphate precursor sol;
(c) depositing the sol on the substrate, typically through dip coating, and (c)
calcining the calcium phosphate coating at 400-500C for 10-30 min.

OBJECTIVES AND TASKS

         The particular objectives of the Phase 2 - CRA1 program are as follows:

         -        to determine the optimum surface preparation of the sent to
                  accept HAp coating, and to retain the coating during the
                  expansion / bending deformation accompanying placement of the
                  stent


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         -        to optimize the dip coating processing for minimum damage
                  during expansion of the stent, best surface finish (minimum
                  surface roughness), and uniform thickness. The coating
                  thickness should be sufficient to fill the substrate surface
                  roughness while maintaining a smooth outer surface of the
                  coating

         -        to explore alternate methods of coating deposition, such as
                  evaporation

The tasks to reach the above objectives will involve:

         -        various surface roughness stents will be produced by MIVI
                  using special electropolishing techniques. The range ~0.5
                  (mu)m to 1.5 (mu)m (peak to valley) of the roughness is
                  tentatively identified as desirable in the first optimization
                  round. Such prepared stents will be delivered to UBC for
                  coating

         -        selected rough stents will be additionally etched using best
                  practice established in Phase 1 of the program. The
                  performance of just roughened, and roughened and etched stents
                  will be compared

         -        the stents with different surface preparation will be coated
                  with sol-gel HAp according to the best current practice; sol
                  dilution will be further increased to determine the effect on
                  coating uniformity and surface finish

         -        the procedures of dip coating will be optimized, including the
                  protocol for removal of excessive sol in the last stage of dip
                  coating

         -        decreased-pressure coating chamber will be designed and built;
                  decreased pressure coating experiments will be conducted to
                  determine its feasibility to achieve uniform coating on
                  internal + external stent surfaces, without the need for
                  dip-coating

         The coatings will be extensively SEM evaluated before and after
deformation, for all the coating variants. XRD and FTIR analytical techniques
for HAp evaluation may be also used in selected cases. The program findings will
be summarized in the final report to be delivered to MIVI by Jan. 15, 2002.

BUDGET

         We will involve in this program one research engineer (Dorna Hakimi, @
$2,375/month) and 50% of one PhD student (M. Keshmiri @ $1,000/month).
Additional costs will include the Metals and Materials Eng. Departmental fees
for use of all the equipment within the department (shared services scheme, @
$200/month per researcher),


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and M&S costs ($1500, including the low-pressure deposition chamber). All the
costs will carry 38% university overhead.

THE  BUDGET ITEMS FOR THE 5-MONTH PHASE 2 OF CRA1 PROGRAM ARE AS FOLLOWS:
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(rounded to the nearest $100)


Student Stipend                                      $  5,000
RE salary                                            $ 11,900
Materials and Supplies                               $  1,500
Shared Services (MMAT)                               $  2,000
Subtotal                                             $ 20,400

University Overheads (38% of subtotal)               $  7,800

TOTAL PROJECT -                                      $ 28,200
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