|   |   |   |
|--------|--------|--------|

|   |   |   |
|--------|--------|--------|

----

| ARTICLE 1 – INTERPRETATION  |  1                                                     |
|---------------------------------------------|-------------------------------------------------------------|
|                                        |                                                        |   |
|                                        |  Section 1.1 Definitions                          |  1 |
|                                        |                                                        |   |
|                                        |  Section 1.2 Headings and References              |  16 |
|                                        |                                                        |   |
|                                        |  Section 1.3 Extended Meanings and Interpretation |  16 |
|                                        |                                                        |   |
|                                        |  Section 1.4 Knowledge                            |  16 |
|                                        |                                                        |   |
|                                        |  Section 1.5 Date for Any Action                  |  17 |
|                                        |                                                        |   |
|                                        |  Section 1.6 Statutory References                 |   17 |
|                                        |                                                        |   |
|                                        |  Section 1.7 Currency                        |   17 |
|                                        |                                                        |   |
|                                        |  Section 1.8 Accounting Principles                |   17 |
|                                        |                                                        |   |
|                                        |  Section 1.9 Schedules                            |   17 |
|                                        |                                                        |   |

| ARTICLE 2 – THE ARRANGEMENT |  18                                                                         |
|----------------------------------------|----------------------------------------------------------------------------------|
|                                   |                                                                             |   |
|                                   |  Section 2.1 Arrangement and Implementation Steps by Vasogen           |   18 |
|                                   |                                                                             |   |
|                                   |  Section 2.2 Interim Order                                             |   19 |
|                                   |                                                                             |   |
|                                   |  Section 2.3 Articles of Arrangement; Closing                     |   19 |
|                                   |                                                                             |   |
|                                   | Section 2.4 Joint Circular                                                  |  20 |
|                                   |                                                                             |   |
|                                   |  Section 2.5 Preparation of Filings                                    |  21 |
|                                   |                                                                             |   |
|                                   |  Section 2.6 Court Proceedings                                         |  23 |
|                                   |                                                                             |   |
|                                   |  Section 2.7 Withholding                                               |  23 |
|                                   |                                                                             |   |
|                                   |  Section 2.8 Public Communications                                     |  24 |
|                                   |                                                                             |   |
|                                   |  Section 2.9 Calculation of Net Cash and IPC Current Liabilities  |  24 |
|                                   |                                                                             |   |
|                                   |  Section 2.10 IPC Bridge Loan                                          |  26 |

| ARTICLE 3 – REPRESENTATIONS AND WARRANTIES OF VASOGEN |  26 |
|------------------------------------------------------------------|----------|

----

|   |  Section 3.1 Representations and Warranties        |  26 |
|--------|-------------------------------------------------------------------|----------|
|   |                                                              |     |
|   |  Section 3.2 Survival of Representations and Warranties |  42 |
|   |                                                              |     |

| ARTICLE 4 – REPRESENTATIONS AND WARRANTIES OF IPC OPCO |  42                                                                                       |
|-------------------------------------------------------------------|------------------------------------------------------------------------------------------------|
|                                                              |                                                                                           |   |
|                                                              |  Section 4.1 Representations and Warranties                                          |  42 |
|                                                              |                                                                                           |   |
|                                                              |  Section 4.2 Survival of Representations and Warranties                              |  61 |
|                                                              |                                                                                           |   |
| ARTICLE 5 – REPRESENTATIONS AND WARRANTIES OF IPC US   |  61                                                                                       |
|                                                              |                                                                                           |   |
|                                                              |  Section 5.1 Representations and Warranties                                          |  61 |
|                                                              |                                                                                           |   |
|                                                              |  Section 5.2 Survival of Representations and Warranties                              |  79 |
|                                                              |                                                                                           |   |
| ARTICLE 6 – COVENANTS OF THE PARTIES                   |   79                                                                                 |
|                                                              |                                                                                           |   |
|                                                              |  Section 6.1 Covenants of IPC Opco and IPC US Regarding the Conduct of Business      |   79 |
|                                                              |                                                                                           |   |
|                                                              |  Section 6.2 Covenants of Vasogen Regarding the Conduct of Business                  |   82 |
|                                                              |                                                                                           |   |
|                                                              |  Section 6.3 Covenants of Vasogen Regarding the Arrangement                          |  84 |
|                                                              |                                                                                           |   |
|                                                              |  Section 6.4 Covenants of the IPC Companies Regarding the Performance of Obligations | 85  |
|                                                              |                                                                                           |   |
|                                                              |   Section 6.5 Mutual Covenants                                                  | 86  |

| ARTICLE 7 – CONDITIONS  |   87                                                                                 |
|-----------------------------------------|------------------------------------------------------------------------------------------------|
|                                    |                                                                                           |   |
|                                    |  Section 7.1 Mutual Conditions Precedent                                        |   87 |
|                                    |                                                                                           |   |
|                                    |  Section 7.2 Additional Conditions Precedent to the Obligations of the IPC Companies |   88 |
|                                    |                                                                                           |   |
|                                    |  Section 7.3 Additional Conditions Precedent to the Obligations of Vasogen           |   89 |
|                                    |                                                                                           |   |
|                                    |  Section 7.4 Satisfaction of Conditions                                              | 91 |
|                                    |                                                                                           |   |

| ARTICLE 8 – ADDITIONAL AGREEMENTS |   91                                    |
|----------------------------------------------|---------------------------------------------------|
|                                         |                                              |   |
|                                         |  Section 8.1 Notice and Cure Provisions |   91 |
|                                         |                                              |   |
|                                         |  Section 8.2 Acquisition Proposal  |  92 |

----

|   |  Section 8.3 Right to Match                         |  93       |
|--------|---------------------------------------------------------------|----------------|
|   |                                                          |           |
|   |  Section 8.4 Agreement as to Termination Fee   |  94       |
|   |                                                          |           |
|   |  Section 8.5 Fees and Expenses                 |  94       |
|   |                                                          |           |
|   |  Section 8.6 Use of Net Cash                        |  94       |
|   |                                                          |           |
|   |  Section 8.7 Listing                                |  95       |
|   |                                                          |           |
|   |  Section 8.8 Access to Information; Confidentiality |   95 |
|   |                                                          |           |
|   |  Section 8.9 Insurance and Indemnification          |   96 |
|   |                                                          |           |
|   |  Section 8.10 Take-over Statutes                    |   96 |
|   |                                                          |           |
|   |  Section 8.11 Resignations                          |   96 |
|   |                                                          |           |
|   |  Section 8.12 Board Appointments                    | 96        |
|   |                                                          |

| ARTICLE 9 - TERM, TERMINATION, AMENDMENT AND WAIVER  |   97                     |
|----------------------------------------------------------------|------------------------------------|
|                                                           |                               |   |
|                                                           |  Section 9.1 Term        |   97 |
|                                                           |                               |   |
|                                                           |  Section 9.2 Termination |  97 |
|                                                           |                               |   |
|                                                           |  Section 9.3 Amendment   | 98 |
|                                                           |                               |   |
|                                                           |  Section 9.4 Waiver      | 98  |
|                                                           |                               |   |

| ARTICLE 10 – GENERAL PROVISIONS  |   99                             |
|--------------------------------------------------|--------------------------------------------|
|                                             |                                       |   |
|                                             |  Section 10.1 Further Assurances |  99 |
|                                             |                                       |   |
|                                             |  Section 10.2 Notices            |  99 |
|                                             |                                       |   |
|                                             |  Section 10.3 Time               | 100 |
|                                             |                                       |   |
|                                             |  Section 10.4 Governing Law      | 100 |
|                                             |                                       |

|   |  Section 10.5 Entire Agreement         | 100    |
|--------|--------------------------------------------------|--------|
|   |                                             |   |
|   |  Section 10.6 Severability             | 100    |
|   |                                             |   |
|   |  Section 10.7 Assignment and Enurement | 101    |
|   |                                             |

----

|   |                                                 |      |
|--------|------------------------------------------------------|-----------|
|   |  Section 10.8 Injunctive Relief       |  101 |
|   |                                                 |      |
|   |  Section 10.9 No Third Party Beneficiaries |  101 |
|   |                                                 |      |
|   |  Section 10.10 Counterparts, Execution     | 101       |

----

----

----

----

----

|   | (a) | copyrights and applications therefor in any original works and all rights in any works of authorship not subject to copyright, including moral rights and any waivers thereof, design elements, ordering of content, graphic user interface, ideas or concepts, software, programs or applications (in both source code and object form code), algorithms, data, databases and data collections, documentation, technical manuals, compilers, interpreters and tangible or intangible proprietary information or material relating to same; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | trade-marks, including both registered and unregistered trade-marks and service marks, applications for registration of any of the foregoing, designs, logos, indicia, distinguishing guises, trade dress, trade or brand names, business names, any other source or business identifiers including domain names, and all goodwill associated with the foregoing; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | industrial designs and applications therefor; |
|--------|-----|-----------------------------------------------|

|   | (d) | trade secrets, confidential information and know-how, innovations, processes, technology, rights and interests in licences and sub-licences, rights and interests in any government or governing body approvals including site and product licenses and applications therefor and any foreign equivalents, drug master files,  formulas, reports and studies, data, research designs, research results, records and notes, prototypes, drawings, product designs and/or specifications, mask works, integrated circuit topographies, net lists, schematics, inventions, discoveries and invention records; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | patents and utility models, and applications therefor, and all provisionals, re-issuances, continuations, continuations-in-part, divisions, revisions, extensions, and re-examinations thereof and all equivalent or similar rights anywhere in the world in inventions and discoveries including invention disclosures; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | any licenses or other rights to the foregoing. |
|--------|-----|------------------------------------------------|

----

----

----

|   | (a) | any change in general economic, business, regulatory, market conditions or political conditions, in each case whether regional, domestic or international, including changes or disruptions in international capital, financial, currency exchange or commodities markets; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | natural disasters, acts of God, any outbreak or escalation of hostilities, declared or undeclared acts of war or terrorism or civil unrest; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | any change in applicable Laws of any Governmental Entity or interpretations thereof by any Governmental Entity or in generally accepted accounting principles; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | any change generally affecting the industries in which a Party conducts its business; |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (e) | the execution, announcement or performance of this Agreement or consummation of the transactions contemplated hereby, including any loss or threatened loss of, or adverse change or threatened adverse change in, the relationship of a Party with any of its customers, employees, shareholders, financing sources, vendors, distributors, partners or suppliers as a direct result thereof or in connection therewith; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | in respect of Vasogen, any change in the market price or trading volume of the securities of Vasogen, or any suspension of trading in securities generally on any securities exchange on which the securities of Vasogen trade or any delisting of securities on the Nasdaq Capital Market; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the failure of a Party in and of itself to meet any internal or public projections, forecasts or estimates of revenues or earnings (but it being understood that the causes underlying such failure may be taken into account in determining whether a Material Adverse Effect has occurred); |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | in respect of Vasogen, any actions taken (or omitted to be taken) by Vasogen at the written request of IPC Opco or IPC US; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (i) | in respect of Vasogen, any actions taken (or omitted to be taken) by Vasogen, Cervus or their respective Affiliates pursuant to the terms and conditions of the Cervus Agreements; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | in respect of any of the IPC Companies, any actions taken (or omitted to be taken) by such IPC Company at the written request of Vasogen or its Affiliates; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | any action taken by any Party that is required pursuant to this Agreement; or |
|--------|-----|-------------------------------------------------------------------------------|

|   | (l) | any of the matters specifically disclosed in the IPC Disclosure Letter or the Vasogen Disclosure Letter; |
|--------|-----|----------------------------------------------------------------------------------------------------------|

----

|   | (a) | the sum of: |
|--------|-----|-------------|

|   | (i) | the Vasogen Companies’ cash and cash equivalents, short-term and long-term investments, and restricted cash; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the accounts receivable of the Vasogen Companies as follows: |
|--------|------|--------------------------------------------------------------|

|   | (A) | those listed in Schedule I; |
|--------|-----|-----------------------------|

|   | (B) | the amount of any principal, interest or other payments that may become due under any IPC Bridge Loan; |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (C) | those outstanding as of the Effective Date for additional government cash tax credits for research expenses, VAT, GST or similar items; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | those outstanding as of the Effective Date and determined in a manner substantially consistent with the manner in which such items were determined for the Vasogen Financial Statements that satisfy the following criteria: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (I) | are not for amounts loaned by the Vasogen Companies; and |
|--------|-----|----------------------------------------------------------|

|   | (II) | are for the sale or licensing of intellectual property or other assets of the Vasogen Companies where: |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | a) | the amount owing is payable within three months of the Effective Date in cash from a commercial party with a reasonable credit rating; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | if any representations, warranties or covenants are required from the Vasogen Parties, they shall be subject to the written consent of IPC Opco that shall not be unreasonably withheld or delayed. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | minus the sum of: |
|--------|-----|-------------------|

----

|   | (i) | the Vasogen Companies’ accounts payable and accrued expenses as of the Effective Date, in each case determined in a manner substantially consistent with the manner in which such items were determined for the Vasogen Financial Statements; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any Indebtedness of the Vasogen Companies as of the Effective Date; |
|--------|------|---------------------------------------------------------------------|

|   | (iii) | any amounts owing or payable as of the Effective Date under the Contracts listed in Section 3.1(s) of the Vasogen Disclosure Letter; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | any amounts owing or payable as of the Effective Date to the Vasogen Employees or contractors of any Vasogen Company, including any severance payments, or payments that become due to any Vasogen Employee as a result of the consummation of the transactions contemplated herein; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | the cash cost of any accrued and unpaid retention payments due to any Vasogen Employee in respect of the transactions contemplated by this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | the remaining cash cost of restructuring accruals as of the Effective Date determined in a manner substantially consistent with the manner in which such item was determined in the Vasogen Financial Statements; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | the cash cost of any change of control payments or other payments that become due to any Person as a result of the consummation of the transactions contemplated herein; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | the cash cost of any and all billed and unpaid Taxes (including estimates from any estimated tax costs arising out of any specific tax review that may be underway at the Effective Time) for which any Vasogen Company is liable in respect of any period ending on or before the Effective Date; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | the amounts owing or payable by Vasogen as of the Effective Date contemplated under Section 8.9 of this Agreement; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

|   | (x) | unpaid Taxes and Tax accruals or good faith estimates therefor, including sales and use Taxes, any alternative minimum tax due and related professional and filing fees; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | any fees, expenses or payments, including without limitation legal, accounting or brokers fees, and any payments or settlement offers with respect to the exercise by Vasogen Shareholders of their Dissent Rights, for which any Vasogen Company is liable pursuant to this Agreement and/or incurred by any Vasogen Company in connection with this Agreement, the Arrangement and the Merger. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | liabilities arising after closing for satisfying Vasogen’s responsibilities after the Effective Date as a public entity arising after closing e.g. the cost of the first shareholder’s meeting following the Effective Date; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | any non-cash liabilities that will ultimately be paid out of Vasogen’s ownership percentage in Vasogen after the Effective Date including the accrued liability for the current Vasogen Deferred Share Unit Plan; and |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | liabilities of Vasogen or its Affiliates arising out of or under the Cervus Agreements. |
|--------|-------|-----------------------------------------------------------------------------------------|

----

----

----

----

|   | (a) | “knowledge of Vasogen” means to the knowledge, information and belief of Chris Waddick and/or Graham Neil after due enquiry and shall include any matter that would be expected to be known by an officer holding a similar position in a company of similar size and scope; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | “knowledge of IPC Opco” and “knowledge of IPC US” each means to the knowledge, information and belief of Dr. Isa Odidi, Dr. Amina Odidi and/or John Allport after due enquiry and shall include any matter that would be expected to be known by an officer holding a similar position in a company of similar size and scope. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (a) | subject to the terms of this Agreement, as soon as reasonably practicable, but in any event in sufficient time to hold the Vasogen Meeting in accordance with Section 2.1(c), proceed with a motion to the Court for the Interim Order under Section 192 of the CBCA in substantially the form acceptable to IPC Opco, acting reasonably, and thereafter diligently pursue obtaining the Interim Order in such form; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | fix a record date for the purposes of determining the Vasogen Shareholders entitled to receive notice of the Vasogen Meeting in accordance with the Interim Order; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | subject to the terms of this Agreement and in accordance with the Interim Order and applicable Laws, as soon as reasonably practicable, convene and hold the Vasogen Meeting for the purpose of considering the Vasogen Resolution and for any other proper purpose as may be set out in the Joint Circular; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | except as required for quorum purposes or otherwise permitted under this Agreement, not adjourn, postpone or cancel (or propose the adjournment, postponement or cancellation of) or fail to call the Vasogen Meeting without the  prior written consent of the IPC Companies, not to be unreasonably withheld; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | subject to compliance by the directors and officers of Vasogen with their fiduciary duties, use commercially reasonable efforts to solicit from the Vasogen Shareholders proxies in favour of the approval of the Vasogen Resolution; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | subject to obtaining such approvals as are required by the Interim Order, bring an application as soon as reasonably practicable after the Vasogen Meeting, before the Court pursuant to Section 192 of the CBCA for the Final Order in substantially the form acceptable to IPC Opco, acting reasonably, and thereafter diligently pursue obtaining the Final Order in such form; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | subject to obtaining the Final Order and in accordance with Section 2.3, send to the Director, for endorsement and filing by the Director, the Articles of Arrangement and such other documents as may be required in connection therewith under the CBCA to give effect to the Arrangement, in substantially the form acceptable to IPC Opco, acting reasonably. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | for confirmation of the record date for the Vasogen Meeting; |
|--------|-----|--------------------------------------------------------------|

|   | (b) | for the class of persons to whom notice is to be provided in respect of the Arrangement and the Vasogen Meeting and for the manner in which such notice is to be provided; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | that, subject to the approval of the Court, the requisite approval for the Vasogen Resolution shall be two-thirds of the votes cast with respect to the Vasogen Resolution by Vasogen Shareholders present in person or represented by proxy at the Vasogen Meeting (the “Required Vote”); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | that, in all other respects, the terms, restrictions and conditions of the by-laws and articles of Vasogen, including quorum requirements and all other matters, shall apply in respect of the Vasogen Meeting; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | for the grant of the Dissent Rights as contemplated in the Plan of Arrangement; |
|--------|-----|---------------------------------------------------------------------------------|

|   | (f) | for the notice requirements with respect to the presentation of the application to the Court for a Final Order; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (g) | that the Vasogen Meeting may be adjourned or postponed from time to time by Vasogen in accordance with this Agreement without the need for additional approval of the Court; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | that the record date for Vasogen Shareholders entitled to vote at the Vasogen Meeting will not change in respect of any adjournments or postponements unless required by applicable Law; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | for such other matters as Vasogen or the IPC Companies may reasonably require subject to obtaining the prior consent of the other, such consent not to be unreasonably withheld or delayed. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

----

|   | (a) | Board Approval.  (i) As of the date hereof, the Vasogen Board, after consultation with its financial and legal advisors, has determined that the Arrangement is fair to the Vasogen Shareholders and is in the best interests of Vasogen and has resolved to recommend to the Vasogen Shareholders that they vote their Vasogen Shares in favour of the Arrangement.  The Vasogen Board has  approved the Arrangement and the execution and performance of this Agreement.  The Board has received the |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Organization and Qualification.  Each Vasogen Company has been duly incorporated and organized and is a subsisting corporation under the laws of its jurisdiction of incorporation and has the requisite corporate power and capacity to own its assets as now owned and to carry on its business as it is now being conducted.  Each Vasogen Company is duly registered or otherwise authorized to do business and is in good standing in each jurisdiction in which the character of its properties, owned, leased, licensed or otherwise held, or the nature of its activities makes such registration or authorization necessary, except where the failure to be so registered, authorized or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Correct, current and complete copies of the articles of incorporation and by-laws, each as amended to date, of Vasogen and the Vasogen Subsidiaries (collectively, the “Vasogen Organizational Documents”) have been made available to the IPC Companies.  No Vasogen Company is in violation of the Vasogen Organizational Documents. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | *****Authority Relative to this Agreement and the Merger Agreement.  Vasogen has the requisite corporate power and capacity to enter into this Agreement and the Merger Agreement and to carry out its obligations hereunder and thereunder.  Vasogen US has the requisite corporate power and capacity to enter into the Merger Agreement and to carry out its obligations thereunder.  The execution and delivery of this Agreement by Vasogen and, subject to the Required Vote, the consummation by Vasogen of the transactions contemplated by this Agreement have been duly authorized by the Vasogen Board, and no other corporate proceedings on the part of Vasogen are necessary to authorize the execution and delivery by it of this Agreement or any agreement ancillary hereto and the consummation by it of the transactions contemplated hereby and thereby, subject, in the case of consummation of the Arrangement, to the receipt of the Required Vote, granting the Final Order by the Court and filing of the Articles of Arrangement. The execution and delivery of the Merger Agreement by Vasogen and Vasogen US and the consummation by Vasogen and Vasogen US of the transactions contemplated by the Merger Agreement have been duly authorized by the Vasogen Board and the board of directors of Vasogen US, and no other corporate proceedings on the part of Vasogen and Vasogen US are necessary to authorize the execution and delivery of the Merger Agreement or any agreement ancillary thereto and the consummation by them of the transactions contemplated thereby, subject, in the case of consummation of the Merger to receipt of the approval of the shareholders of Vasogen to the Arrangement, filing of the Plan of Arrangement and to the filing of the Certificate of Merger pursuant to the General Corporation law of the State of Delaware. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Enforceability.  This Agreement has been duly and validly executed and delivered by Vasogen and constitutes a legal, valid and binding obligation of Vasogen |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | No Violations.  Subject to receipt of any consents, approvals or waivers set forth in Section 3.1(f) of the Vasogen Disclosure Letter, none of the execution and delivery of this Agreement by Vasogen, the consummation of the Arrangement by Vasogen,  compliance by Vasogen with any of its obligations under this Agreement, the execution and delivery of the Merger Agreement by Vasogen and Vasogen US, the consummation of the Merger by Vasogen and Vasogen US or compliance by Vasogen and Vasogen US with any of their obligations under the Merger Agreement will: (i) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which with or without notice or lapse of time or both, would constitute a default) under, or result in a right of termination or acceleration under, or result in the creation of any Lien upon, any of the properties or assets of any Vasogen Company or cause any Indebtedness of any Vasogen Company to come due before its stated maturity or cause any credit commitment to cease to be available or cause any payment or other obligation to be imposed on any Vasogen Company under, any of the terms, conditions or provisions of, (A) the Vasogen Organizational Documents, or (B) any note, bond, mortgage, indenture, loan agreement, deed of trust, Lien, Lease or other Contract to which any Vasogen Company is a party or to which its properties or assets may be subject or by which any Vasogen Company is bound; or (ii) subject to obtaining the Regulatory Approvals and the Required Vote and except for complying with applicable corporate, competition and securities Laws, (A) violate any Law applicable to any Vasogen Company or any of its properties or assets; or (B) cause the suspension or revocation of any Permit currently in effect (except, in the case of clauses (i)(B) and (ii) above, for such violations, conflicts, breaches, defaults, terminations, accelerations, creations of Liens, payments or other obligations which, or any Permits which, if suspended or revoked, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Required Consents.  Except as set forth in Section 3.1(f) of the Vasogen Disclosure Letter, there is no requirement to obtain any consent, approval or waiver of a party under any Material Contract to which any Vasogen Company is a party in connection with, and no change in any obligation or right under or in any term or condition of any such Material Contract will occur (and no right to cause any such change will arise) as a result of, the execution and delivery by Vasogen of this Agreement and the Merger Agreement, the execution and delivery by Vasogen US of the Merger Agreement the performance by Vasogen of its obligations hereunder and under the Merger Agreement, the performance by Vasogen US of its obligations under the Merger Agreement and the completion of the transactions contemplated by this Agreement and the Merger Agreement, including the Arrangement and the Merger, |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | Capitalization. |
|--------|-----|-----------------|

|   | (i) | Section 3.1(g) of the Vasogen Disclosure Letter sets out the authorized share capital of each of the Vasogen Companies and, as of the close of business on July 31, 2009, the issued and outstanding share capital of the Vasogen Companies; and there are outstanding no other shares of any class or series in the share capital of any of the Vasogen Companies.  July 31, 2009, no Vasogen Company has issued any shares or other securities, and there has not been any split, combination or reclassification or redemption or repurchase of any shares or other securities of any Vasogen Company. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | As of the close of business on July 31, 2009, an aggregate of up to 7,094,973 Vasogen Shares were issuable upon the exercise of the Vasogen Options and pursuant to the Vasogen Deferred Share Unit Plan, the exercise prices, expiration dates and other material terms of which are set forth in Section 3.1(g) of the Vasogen Disclosure Letter and an aggregate of up to 477,686.05 Vasogen Shares were issuable upon the exercise of Vasogen Warrants, the material terms of which have been made available to the IPC Companies; and, except as set forth above, there are no options, warrants or other rights, shareholder rights plans, agreements or commitments of any character whatsoever requiring or which may require the issuance, sale or transfer by any Vasogen Company of any shares of any Vasogen Company or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right to acquire, any shares of any Vasogen Company. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | All outstanding Vasogen Shares and all of the outstanding shares of the Vasogen Subsidiaries have been duly authorized and validly issued, and, where required by applicable law, are fully paid and non-assessable.  All Vasogen Shares issuable upon the exercise of rights under the Vasogen Options, the Vasogen Deferred Share Unit Plan, and the Vasogen Warrants have been duly authorized and, upon issuance, will be duly authorized and validly issued as fully paid and non-assessable and are not and will not be subject to, or issued in violation of, any pre-emptive rights. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Other than the Vasogen Shares, Vasogen Options, the units issued pursuant to the Vasogen Deferred Share Unit Plan, the Vasogen Warrants and the outstanding shares of the Vasogen Subsidiaries set out in Section 3.1(g) of the Vasogen Disclosure Letter, there are no securities of any Vasogen Company outstanding which have the right to vote generally (or are convertible into or exchangeable for securities having the right to vote |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | No Subsidiaries.  Except as set forth in Section 3.1(h) of the Vasogen Disclosure Letter, none of the Vasogen Companies, directly or indirectly, own or have any interest in any shares or other securities of any person, and none of the Vasogen Companies have the option or any other entitlement to acquire any shares or other securities of any person. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Shareholders and Similar Agreements.  Other than the Vasogen Employee Stock Option Plan, the Vasogen Shareholder Rights Plan Agreement and the Vasogen Director Stock Option Plan, current, complete and accurate copies of which have been made available to the IPC Companies, none of the Vasogen Companies is a party to any shareholder, pooling, voting trust or other similar agreement relating to any of the issued and outstanding shares of any Vasogen Company. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Reporting Status and Securities Laws Matters.  Vasogen is a “reporting issuer” or equivalent under applicable Securities Laws, is not on the list of reporting issuers in default under the applicable Canadian provincial and territorial Securities Laws, and is in compliance in all material respects with all Securities Laws.  Except as provided on Schedule 3.1(j) of the Vasogen Disclosure Letter, no delisting of, suspension of trading in or cease trading order with respect to any securities of Vasogen and, to the knowledge of Vasogen, no inquiry or investigation (formal or informal) of any Securities Authority, is in effect or ongoing relating to any securities of any Vasogen Company or, to the knowledge of Vasogen, expected to be implemented or undertaken.  Section 3.1(j) of the Vasogen Disclosure Letter contains a listing of all material correspondence between any Securities Authority or Exchange and any Vasogen Company during the prior twelve (12) month period except for those matters disclosed in Vasogen’s Public Disclosure Record. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Reports.  The documents comprising Vasogen’s Public Disclosure Record did not at the time filed or, at the time of filing any amendment thereto, with Securities Authorities contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made.  Vasogen has not filed any confidential material change report with any Securities Authority or Exchange which at the date hereof remains confidential. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Vasogen Financial Statements.  The audited consolidated financial statements of Vasogen as at and for the fiscal years ended November 30, 2007 and November 30, 2008 (including the notes thereto and related management’s discussion and analysis |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | filed under the Securities Laws), and the unaudited consolidated financial statements of Vasogen as at and for the six months ended May 31, 2009 (including the notes thereto and related management discussion and analysis filed under the Securities Laws) (collectively, the “Vasogen Financial Statements”): |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | were prepared in accordance with Canadian generally accepted accounting principles on a basis consistent with previous fiscal years (or comparable periods) except as otherwise indicated in such financial statements and the notes thereto or in the related report of Vasogen’s independent auditors; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | fairly present in all material respects the financial condition, results of operations and cash flows of Vasogen as of the dates thereof and for the periods indicated therein (subject, in the case of any unaudited interim consolidated financial statements, to normal period-end adjustments). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | No Other Material Liabilities.  Except as set forth in Section 3.1(m) of the Vasogen Disclosure Letter: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (i) | no Vasogen Company has any liability or obligation of any nature (whether accrued, absolute, contingent or otherwise) which is material to such Vasogen Company, including any agreement, contract or commitment to create, assume or issue any bond, debenture, note or other similar instrument or any agreement, contract or commitment providing for the guarantee, indemnification, assumption or endorsement or any similar commitment with respect to the obligations, liabilities (contingent or otherwise) or indebtedness of any other person, required by Canadian generally accepted accounting principles to be set forth in a consolidated balance sheet of Vasogen or in the notes thereto, which individually or in the aggregate has not been reflected in the Vasogen Financial Statements, other than liabilities, indebtedness or obligations incurred by such Vasogen Company in the ordinary course of business since the date of such balance sheet in an amount exceeding $15,000 individually or in the aggregate, and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | except to the extent reflected or reserved in the Vasogen Financial Statements or incurred in the ordinary course since November 30, 2008, no Vasogen Company has incurred any outstanding indebtedness or any liabilities or obligations (whether accrued, absolute, contingent or otherwise) in an amount exceeding $15,000 individually or in the aggregate. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (n) | Books and Records. |
|--------|-----|--------------------|

|   | (i) | The corporate records and minute books of each of the Vasogen Companies, all of which have been made available to the IPC Companies, have been maintained in accordance with all applicable Laws in all material respects and the minute books of each of the Vasogen Companies are complete and accurate in all material respects. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Financial books and records and accounts of each of the Vasogen Companies in all material respects: |
|--------|------|-----------------------------------------------------------------------------------------------------|

|   | (A) | have been maintained in accordance with good business practices on a basis consistent with prior years; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (B) | are stated in reasonable detail and accurately and fairly reflect the transactions and dispositions of assets of the Vasogen Companies. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Litigation.  Except as set out in Section 3.1(o) of the Vasogen Disclosure Letter, there are no claims, actions, applications, suits, demands, arbitrations, charges, indictments, hearings or other civil, criminal, administrative or investigative proceedings, or other investigations or examinations (collectively, “Vasogen Legal Actions”) commenced or, to the knowledge of Vasogen, pending or threatened, against (i) any Vasogen Company or against any of property or assets of any Vasogen Company at law or in equity before or by any Governmental Entity or (ii) any director, officer or employee of any Vasogen Company, which Vasogen  Legal Actions would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  None of the Vasogen Companies nor the assets or properties of any of them is subject to any outstanding judgment, order, writ, injunction or decree that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | Taxes. |
|--------|-----|--------|

|   | (i) | Except as set out in Section 3.1(p)(i) of the Vasogen Disclosure Letter, each Vasogen Company has, (A) duly and timely filed, or caused to be filed, all material Returns required to be filed by it prior to the date hereof and all such Returns are true, complete and correct in all material respects; (B) paid in full, within the prescribed time limits, all Taxes and all assessments and reassessments of Taxes due on or before the date hereof, and in the case of any Taxes which were not payable by a Vasogen Company as of the Effective Time but which will become payable after the Effective Time in respect of a period that commenced prior to the Effective Time, accruals therefor will be made in conformity with generally accepted accounting principles in the books and records of such Vasogen Company; (C) duly and timely withheld, or caused to be withheld, all Taxes required by Law to be |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | withheld by it (including Taxes and other amounts required to be withheld by it in respect of any amount paid or credited or deemed to be paid or credited by it to or for the account of any person, including any employees, officers or directors and any non resident person) and duly and timely remitted, or caused to be remitted, to the appropriate Governmental Entity such Taxes required by Law to be remitted by it; and (D) duly and timely collected, or caused to be collected, any sales or transfer Taxes, including goods and services, harmonized sales and provincial or territorial sales Taxes, required by Law to be collected by it and duly and timely remitted to the appropriate Governmental Entity any such amounts required by Law to be remitted by it; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the unpaid Taxes of the Vasogen Companies did not, as of the date of the Vasogen Financial Statements prepared in respect of the fiscal period ended November 30, 2008, exceed the estimated reserves and provisions for Taxes accrued but not yet due and payable as reflected in such Vasogen Financial Statements; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | no deficiencies, litigation, proposed adjustments or matters in controversy with respect to Taxes exist or have been asserted which remain unresolved, and no action or proceeding for assessment or collection of Taxes has been taken, asserted, or to the knowledge of Vasogen, threatened, against any Vasogen Company or any of the assets of a Vasogen Company, except, in each case, as disclosed or provided for in the Vasogen Financial Statements; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | other than as set out in Section 3.1(p)(iii) of the Vasogen Disclosure Letter, there are no currently effective elections, agreements or waivers extending the statutory period or providing for an extension of time with respect to the assessment or reassessment of any Taxes of, or the filing of any Return or any payment of any Taxes by, any Vasogen Company and Canadian federal and provincial income tax assessments have been issued to Vasogen covering all past periods up to and including the fiscal period ended November 30, 2007; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | there are no Liens (other than Liens for Taxes not yet due and payable or Liens for income and similar Taxes that are being contested in good faith and for which a Vasogen Company has made adequate provision in accordance with Canadian generally accepted accounting principles) for Taxes upon any of the assets of any Vasogen Company; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Each Vasogen Company is in compliance with all applicable Laws, including any documentation and recordkeeping requirements thereunder, applicable to the allocation of income and deductions and transactions among related taxpayers; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (vii) | None of the Vasogen Companies is a party to any indemnification, allocation or sharing agreement with respect to Taxes that could give rise to a payment or indemnification obligation, and none of them have any liability for Taxes of any person (other than the Vasogen Companies) as a transferee or successor, by contract, or otherwise; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | Each Vasogen Company has made available to the IPC Companies complete and accurate copies of all Returns which it was required to file in respect of the fiscal period of each such Vasogen Company for which the relevant limitation period has not expired; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | to the knowledge of Vasogen, no claim has been made by a Governmental Entity in any jurisdiction in which a Vasogen Company does not file Returns that such Vasogen Company is or may be liable for Taxes in such jurisdiction; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | Vasogen has, at all relevant times, been and is a taxable Canadian corporation within the meaning of subsection 89(1) of the Tax Act; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | there are no amounts outstanding and unpaid for which Vasogen has previously claimed a deduction under the Tax Act.  In this respect, there are no circumstances existing which could result in the application of any of sections 78 to 80.04 of the Tax Act or any equivalent provincial Tax legislation to Vasogen and give rise to a liability on the part of Vasogen for Taxes; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | Vasogen has not received any requirement pursuant to section 224 of the Tax Act which remains unsatisfied in any respect; and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------|

|   | (xiii) | Vasogen is duly registered under Part IX of the Excise Tax Act (Canada) with respect to the goods and services tax and the registration number is 89138 5270 RT0001. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | Real Property. |
|--------|-----|----------------|

|   | (i) | Owned Real Property.  Vasogen does not own any real property. |
|--------|-----|-------------------------------------------------------------------------|

|   | (ii) | Leased Property.  Section 3.1(q)(ii) of the Vasogen Disclosure Letter lists all leases or agreements to lease (the “Vasogen Leases”) under which a Vasogen Company leases or has the option to lease any real or immovable property.  Current, complete and correct copies of all Vasogen Leases and any assignment thereof have been made available to the IPC Companies. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | Personal Property.  Except for the Vasogen Permitted Encumbrances, each Vasogen Company has good and valid title to, or a valid and enforceable leasehold interest in, all tangible personal property owned or leased by it, except as would not, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (s) | Contracts. |
|--------|-----|------------|

|   | (i) | Section 3.1(s) of the Vasogen Disclosure Letter contains a list of the following Contracts, correct, current and complete copies of which have been made available to the IPC Companies: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | all Contracts under which: |
|--------|-----|----------------------------|

|   | (I) | a Vasogen Company is lessee of, or holds or uses, any machinery, equipment, vehicle or other tangible personal property owned by any other person involving payment by such Vasogen Company of more than $15,000 on an annual basis; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (II) | a Vasogen Company is a lessor or sublessor of, or makes available for use by any other person, any tangible personal property owned or leased by such Vasogen Company, involving payment to such Vasogen Company of more than $15,000 on an annual basis; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | all licences to or from any third parties of any Intellectual Property that is material to the businesses of any Vasogen Company and involving payment by or to any Vasogen Company of more than $15,000 on an annual basis (other than commercially-available off-the shelf shrink wrap or click wrap); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | all Contracts under which Indebtedness of a Vasogen Company is outstanding or may be incurred or pursuant to which any property or asset of a Vasogen Company is mortgaged, pledged or otherwise subject to a Lien, or any Contract restricting the incurrence of Indebtedness by a Vasogen Company or the incurrence of Liens on or the transfer of any properties of a Vasogen Company where the amount of such Indebtedness, mortgage, pledge or Lien exceeds $15,000; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | all Contracts under which a Vasogen Company has directly or indirectly guaranteed Indebtedness (including the performance of any obligation) of any other person; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (E) | all Contracts made outside the ordinary course of the business of a Vasogen Company and providing for the sale, purchase or exchange of, or option to sell, purchase or exchange, any property or asset where the sale price, purchase price or agreed value or fair value of such property exceeds $15,000; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (F) | all Contracts are material to a Vasogen Company; |
|--------|-----|--------------------------------------------------|

|   | (ii) | Except as has not and would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, no Vasogen Company nor, to the knowledge of Vasogen, any of the other parties thereto, is in breach or violation of, or default (in each case, with or without notice or lapse of time or both) under, any Vasogen Material Contract and no Vasogen Company has, (A) received or given any notice of default which remains uncured or (B) received or given any notice of cancellation or termination of any Vasogen Material Contract.  To the knowledge of Vasogen, there exists no state of facts which after notice or lapse of time or both would constitute a default or breach of a Vasogen Material Contract or give rise to any right to cancel or terminate any Vasogen Material Contract. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | Restrictions on Business Activities.  Except as set out in Section 3.1(t) of the Vasogen Disclosure Letter, there is no agreement, judgment, injunction, order or decree or Law binding upon any Vasogen Company that purports to have, has or could reasonably be expected to have (including following the transactions contemplated by this Agreement), the effect of prohibiting, restricting or impairing: (a) any business practice of any Vasogen Company; (b) any acquisition of any business or property by a Vasogen Company; (c) the ability of any Vasogen Company to solicit or engage any customers; (d) the ability of any Vasogen Company to incur or guarantee Indebtedness; or (e) the nature of the business which may be conducted by any Vasogen Company or the manner or geographic area in which all or a material portion of the business of any Vasogen Company may be conducted. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | Permits.  To the knowledge of Vasogen, each Vasogen Company has obtained and is in compliance with all Permits required by applicable Laws necessary for it to conduct its businesses as it is now being conducted, other than where the absence of such Permits or the failure to comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (v) | Employee Benefits.  |
|--------|-----|--------------------------|

|   | (i) | Section 3.1(v) of the Vasogen Disclosure Letter contains a list of all health, welfare, supplemental unemployment benefit, bonus, profit sharing, option, insurance, incentive, incentive compensation, deferred compensation, share purchase, share compensation, disability, pension or retirement plans and other material employee or director compensation or benefit plans, policies, trusts, funds, agreements or arrangements for the benefit of directors or former directors of each Vasogen Company, the employees or former employees of each Vasogen Company, which are maintained by or binding upon such Vasogen Company or in respect of which such Vasogen Company has any actual or potential liability (including the Vasogen Employee Stock Option Plan and the Vasogen Director Stock Option Plan) (collectively, the “Vasogen Plans”).  True, current and complete copies of the Vasogen Plans have been made available to the IPC Companies. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 3.1(v) of the Vasogen Disclosure Letter also lists the general policies, procedures and work-related rules in effect with respect to the employees of each Vasogen Company, including but not limited to policies regarding holiday, sick leave, vacation, disability and death benefits, termination and severance pay, automobile allowances and rights to company-provided automobile and expense reimbursements (collectively, the “Other Vasogen Plans”). |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | All of the Vasogen Plans are and have been, to the extent necessary, established, registered, qualified and, in all material respects, administered in accordance with all applicable Laws, and in accordance with their terms and the terms of agreements between a Vasogen Company and any employees or former employees who are members of, or beneficiaries under, the Vasogen Plans. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | All current obligations of each Vasogen Company regarding the Vasogen Plans and the Other Vasogen Plans have been satisfied in all material respects.  All contributions, premiums or taxes required to be made or paid by each Vasogen Company under the terms of each Vasogen Plan, each Other Vasogen Plan or by applicable Laws in respect of the Vasogen Plans and the Other Vasogen Plans have been made in a timely fashion in accordance with applicable Laws in all material respects and in accordance with the terms of the applicable Vasogen Plan or Other Vasogen Plan. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | All vacation pay for employees of Vasogen is properly reflected and accrued in the books and accounts of Vasogen. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Vasogen is in compliance with applicable workers’ compensation laws and regulations made pursuant thereto and is up-to-date in its payment of all |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | premiums and there are no outstanding assessments, levies or penalties thereunder. |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | (vii) | Vasogen is up-to-date and in compliance with respect to all applicable employee and payroll deductions and remittances, including but not limited to, income tax, Canada Pension Plan, Employment Insurance and Employer Health Tax and there are no penalties, investigations, chargers or orders thereunder. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (w) | Compliance with Laws.  Each Vasogen Company has complied, in all material respects, with and is not, in any material respect, in violation of any applicable Laws.  No Vasogen Company or, to the knowledge of Vasogen, any of the directors, executives, representatives, agents or employees of any Vasogen Company, (i) has used or is using any corporate funds for any illegal contributions, gifts, entertainment or other expenses relating to political activity that would be illegal, (ii) has used or is using any corporate funds for any direct or indirect illegal payments to any foreign or domestic governmental officials or employees, (iii) has established or maintained, or is maintaining, any illegal fund of corporate monies or other properties or (iv) has made any bribe, illegal rebate, illegal payoff, influence payment, kickback or other illegal payment of any nature. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | Intellectual Property. |
|--------|-----|------------------------|

|   | (i) | Section 3.1(x) of the Vasogen Disclosure Letter, to the knowledge of Vasogen lists and identifies pending Intellectual Property that is (A) owned by a Vasogen Company and that has been registered or applied for, (B) licensed by a Vasogen Company to a third party, or (C) licensed by a third party to a Vasogen Company. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | To the knowledge of Vasogen, all Intellectual Property owned by a Vasogen Company and that has been registered or applied for listed in Section 3.1(x) of the Vasogen Disclosure Letter has the status and ownership as listed therein. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | To its knowledge, none of the Vasogen Companies have received any claim, notice or threat in writing from any person (A) contesting the validity, enforceability, ownership or use of any material Intellectual Property used by a Vasogen Company in the conduct of its business, or (B) claiming infringement, misappropriation or other conflict with the rights of any person. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Subject to Section 3.1(e), to the knowledge of Vasogen, no event will occur as a result of the transactions contemplated hereby that would render invalid or unenforceable any rights of any Vasogen Company in any Intellectual Property listed in Section 3.1(x) of the Vasogen Disclosure Letter. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (v) | To the knowledge of Vasogen, all current and former employees, agents and independent contractors of each Vasogen Company who are named inventors in a patent listed in Section 3.1(x) that may be material, if any, of the Vasogen Disclosure Letter (“Vasogen IP Participant”) have executed and delivered to such Vasogen Company a proprietary information agreement, pursuant to which, inter alia, such Vasogen IP Participant has assigned all of his rights in such Intellectual Property to such Vasogen Company and has agreed to keep confidential (except to the extent generally disclosed through no fault of the individual or at the consent of Vasogen) such Intellectual Property that is material, if any, and confidential.  To the knowledge of Vasogen, no former or current Vasogen IP Participant  has filed or in writing threatened any claim against any Vasogen Company related to any such Intellectual Property. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (y) | To the knowledge of Vasogen, no employee of any Vasogen Company is in default under, and the transactions contemplated by this Agreement will not result in a default of, any term of any employment contract, noncompetition arrangement or other agreement relating to any Intellectual Property listed in Section 3.1(x) of the Vasogen Disclosure Letter that may be material to this transaction, if any.  To the knowledge of Vasogen, no employee, agent or independent contractor of any Vasogen Company, nor any third party is entitled to compensation by any Vasogen Company for any development or exploitation of such Intellectual Property, other than pursuant to subsisting policies of Vasogen or as otherwise disclosed. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | Insurance. |
|--------|-----|------------|

|   | (i) | Each Vasogen Company maintains the policies or binders of insurance listed in Section 3.1(z) of the Vasogen Disclosure Letter. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 3.1(z) of the Vasogen Disclosure Letter contains a description of all rights to indemnification now existing in favour of present or former officers and directors of each Vasogen Company that arise in connection with their serving as directors or officers of a Vasogen Company, except for any rights of indemnification that are included in Vasogen’s Organizational Documents. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, each Vasogen Company is covered by valid and currently effective insurance policies issued in favour of such Vasogen Company that it reasonably has determined to be commercially reasonable, taking into account the industries in which such Vasogen Company operates.  Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, with respect to each insurance policy issued in favour of each Vasogen Company or pursuant to which it is a named insured or otherwise a beneficiary under an insurance policy: |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (A) | the policy is in full force and effect and all premiums due thereon have been paid; |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (B) | such Vasogen Company is not in breach or default, and such Vasogen Company has not taken any action or failed to take any action which, with notice or the lapse of time, would constitute such a breach or default, or permit termination or modification of, any such policy; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | to the knowledge of Vasogen, none of such policies will terminate or lapse by reason of the transactions contemplated by this Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | no insurer under any such policy has cancelled or generally disclaimed liability under any such policy or indicated any intent to do so or not to renew any such policy; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | there is no claim by such Vasogen Company pending under any such policy that has been denied or disputed by the insurer. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | Environment. |
|--------|------|--------------|

|   | (i) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, to the knowledge of Vasogen, each Vasogen Company is in compliance with all, and none of them have violated any, Environmental Laws; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) no Vasogen Company has Released, and, to the knowledge of Vasogen, no other person has Released, any Hazardous Substances (in each case except in compliance with applicable Environmental Laws) on, at, in, under or from any real property previously owned, leased or occupied or currently leased by a Vasogen Company; and (B), to the knowledge of Vasogen, there are no Hazardous Substances or other conditions that could reasonably be expected to result in liability of or adversely affect any Vasogen Company under or related to any Environmental Law on, at, in, under or from any real property previously owned, leased or occupied, or currently leased by any Vasogen Company; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, there are no pending claims or, to the knowledge of Vasogen, threatened claims, against any Vasogen Company arising out of any Environmental Laws; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | No Lien in favour of a Governmental Entity arising under Environmental Laws is pending or, to the knowledge of Vasogen, threatened, affecting any Vasogen Company or any real property previously owned, leased or occupied |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | or currently leased by a Vasogen Company, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | (v) | No Vasogen Company is in possession of any material environmental assessments, reports, audits or other documents that relate to the current or past environmental condition of any real property previously owned, leased or occupied or currently leased by any Vasogen Company that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |   | The representations and warranties contained in this Section 3.1(aa) are the sole representations and warranties of Vasogen relating to compliance with the Environmental Laws. |
|--------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | Employment Agreements. |
|--------|------|------------------------|

|   | (i) | Except as disclosed in Section 3.1(bb) of the Vasogen Disclosure Letter, no Vasogen Company is a party to or bound or governed by: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | any agreement with any current or former director, officer or any other current or former employee of a Vasogen Company providing for payments in excess of $50,000 annually; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | any change of control agreement with any director, officer or employee or any written or, to the knowledge of Vasogen, oral agreement, arrangement or understanding providing for an existing retention, severance or termination compensation or benefits to any director, officer or employee; or |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | any collective bargaining or union agreement. |
|--------|-----|-----------------------------------------------|

|    |   | Vasogen has made available to the IPC Companies current, correct and complete copies (or descriptions, where applicable) of the Contracts referred to in clauses (A) and (B) of this Section 3.1(bb)(i). |
|--------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | There are no existing or, to the knowledge of Vasogen, threatened labour disputes, strikes, lock-outs, employee grievances, controversies or other labour troubles affecting any Vasogen Company or its business. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | There are no existing or, to the knowledge of Vasogen, threatened applications for certification, voluntary recognition, related employer, successor employer or union bargaining rights in respect of any Vasogen Company.  No Vasogen Company is currently conducting negotiations with any labour union or employee association and, to the knowledge of Vasogen, during the period of three (3) years preceding the date of this Agreement |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | there has been no attempt to organize, certify or establish any labour union or employee association in relation to any of the employees of any Vasogen Company. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (cc) | Vote Required. |
|--------|------|----------------|

|   | (i) | The only vote of holders of securities of Vasogen necessary (under the Vasogen Organizational Documents and other applicable Laws) to approve the performance by Vasogen  of its obligations set out in this Agreement, including the Arrangement, is subject to any requirements of the Interim Order, the Required Vote. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | There are no shareholders agreements, registration rights agreements, voting trusts, proxies or similar agreements, arrangements or commitments to which any Vasogen Company is a party or, to the knowledge of Vasogen, with respect to any shares or other equity interests of any Vasogen Company or any other Contract relating to disposition, voting or dividends with respect to any equity securities of any Vasogen Company. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (dd) | No Collateral Benefit.  No related party of Vasogen (within the meaning on Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions), either individually or together with such party’s associated entities, beneficially owns or exercised control or direction over 1% or more of the outstanding Vasogen Shares, except for related parties who will not receive a “collateral benefit” (within the meaning of such Rule) as a consequence of the transactions contemplated in this Agreement and the Merger Agreement, including the Arrangement and the Merger. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ee) | Brokers.  Except for the Financial Advisor, no broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission from, or to the reimbursement of any of its expenses by, any Vasogen Company in connection with this Agreement, the Arrangement, the Merger Agreement or the Merger. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | Organization and Qualification.  IPC Opco has been duly incorporated and organized and is a subsisting unlimited liability corporation under the laws of the Province of Nova Scotia and has the requisite corporate power and capacity to own its assets as now owned and to carry on its business as it is now being conducted.  IPC Opco is duly registered or otherwise authorized to do business and is in good standing in each jurisdiction in which the character of its properties, owned, leased, licensed or otherwise held, or the nature of its activities makes such registration or authorization necessary, except where the failure to be so registered, authorized or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Correct, current and complete copies of the articles and memorandum of association, each as amended to date, of IPC Opco (collectively, the “IPC Opco Organizational Documents”) have been made available to Vasogen.  IPC Opco is not in violation of the IPC Opco Organizational Documents in any material respect. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Authority Relative to this Agreement.  IPC Opco has the requisite corporate power and capacity to enter into this Agreement and to carry out its obligations hereunder.  The execution and delivery of this Agreement by IPC Opco and the consummation by IPC Opco of the transactions contemplated by this Agreement have been duly authorized by the IPC Opco Board and the IPC Opco Shareholders, and no other corporate proceedings on the part of IPC Opco are necessary to authorize the execution and delivery by it of this Agreement or any agreement ancillary hereto and the consummation by it of the transactions contemplated hereby and thereby. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Enforceability.  This Agreement has been duly and validly executed and delivered by IPC Opco and constitutes a legal, valid and binding obligation of IPC Opco enforceable against IPC Opco in accordance with its terms, subject to the qualification that such enforceability may be limited by bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting rights of creditors and general principles of equity. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | No Violations.  Subject to receipt of any consents, approvals or waivers set forth in Section 4.1(e) of the IPC Disclosure Letter, none of the execution and delivery of this Agreement by IPC Opco, the consummation of the transactions contemplated in this Agreement by IPC Opco or compliance by IPC Opco with any of its obligations |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (e) | Required Consents.  Except as set forth in Section 4.1(e) of the IPC Disclosure Letter, there is no requirement to obtain any consent, approval or waiver of a party under any IPC Opco Material Contract to which IPC Opco is a party in connection with, and no change in any obligation or right under or in any term or condition of any such IPC Opco Material Contract will occur (and no right to cause any such change will arise) as a result of, the execution and delivery by IPC Opco of this Agreement, the performance by IPC Opco of its obligations hereunder and the completion of the transactions contemplated by this Agreement, including the Arrangement except for any consents, approvals or waivers which, if not given or received, would not, individually or in the aggregate reasonably be expected to have a Material Adverse Effect. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Capitalization. |
|--------|-----|-----------------|

|   | (i) | The authorized share capital of IPC Opco consists of 10,000,000,000 IPC Opco Common Shares, 10,850,000 IPC Opco Convertible Voting Shares and 10, 850,000 IPC Opco Exchangeable Shares.  As of the close of business on July 31, 2009, there were issued and outstanding 15,190,000 IPC Opco Common Shares, 10,850,000 IPC Opco Convertible Voting Shares and no IPC Opco Exchangeable Shares; since such date, IPC Opco has not issued any shares, and there has not been any split, combination or reclassification or redemption or repurchase of IPC Opco Shares; and there are outstanding no other shares of any class or series in the capital of IPC Opco. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | As of the close of business on July 31, 2009, an aggregate of up to 10,850,000 IPC Opco Exchangeable Shares were issuable upon the exercise of the IPC Opco Convertible Shares on material terms of which are set forth in Section 41(f) of the IPC Disclosure Letter; and, except as set forth above there are no options, warrants or other rights, shareholder rights plans, agreements or commitments of any character whatsoever requiring or which may require the issuance, sale or transfer by IPC Opco of any shares of IPC Opco or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right to acquire, any shares of IPC Opco.  |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | All outstanding IPC Opco Shares have been duly authorized and validly issued, are fully paid and non-assessable, and all IPC Opco Exchangeable Shares issuable upon the exercise of rights under the IPC Opco Convertible Shares have been duly authorized and, upon issuance, will be duly authorized and validly issued as fully paid and non-assessable and are not and will not be subject to, or issued in violation of, any pre-emptive rights. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | Other than the IPC Opco Shares, there are no securities of IPC Opco outstanding which have the right to vote generally (or are convertible into or exchangeable for securities having the right to vote generally) with the IPC Opco Shareholders on any matter.  Except as contemplated by this Agreement, there are no outstanding contractual or other obligations of IPC Opco to (i) repurchase, redeem or otherwise acquire any of its securities (ii) make any investment in or provide any funds to (whether in the form of a loan, capital contribution or otherwise) any person, or (iii) provide any guarantee with respect to any person. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | No Subsidiaries.  IPC Opco does not, directly or indirectly, own or have any interest in any shares or other securities of any person, and IPC Opco does not have the option or any other entitlement to acquire any shares or other securities of any person. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Vasogen Shares.  IPC Opco is not a registered or beneficial holder of any Vasogen Shares. |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|   | (i) | Shareholders and Similar Agreements.  IPC Opco is not a party to any shareholder, pooling, voting trust or other similar agreement relating to any of the issued and outstanding shares of IPC Opco. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (j) | Reporting Status and Securities Laws Matters.  IPC Opco is not a “reporting issuer” or equivalent under applicable Securities Laws and is in compliance in all material respects with all Securities Laws.  To the knowledge of IPC Opco, no inquiry or investigation (formal or informal) of any Securities Authority, is in effect or ongoing or, to the knowledge of IPC Opco, expected to be implemented or undertaken.  Section 4.1(j) of the IPC Disclosure Letter contains a listing of all   |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (k) | Reports.  There have been no documents filed by or on behalf of IPC Opco on the System for Electronic Document Analysis and Retrieval (SEDAR) or on the Securities and Exchange Commission Filings and Forms (EDGAR), in either case including any exhibits attached thereto.  No confidential disclosure has been made by or on behalf of IPC Opco with any Securities Authority or Exchange which has not been disclosed to the Parties in writing. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Absence of Undisclosed Liabilities.  Except to the extent reflected or reserved in the IPC US Financial Statements or incurred in the ordinary course since June 30, 2009, IPC Opco has not incurred any outstanding indebtedness or any liabilities or obligations (whether accrued, absolute, contingent or otherwise) in an amount exceeding $15,000 individually or in the aggregate. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | Books and Records. |
|--------|-----|--------------------|

|   | (i) | The corporate records and minute books of IPC Opco, all of which have been made available to Vasogen, have been maintained in accordance with all applicable Laws in all material respects and the minute books of IPC Opco are complete and accurate in all material respects. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Financial books and records and accounts of IPC Opco in all material respects: |
|--------|------|--------------------------------------------------------------------------------|

|   | (A) | have been maintained in accordance with good business practices on a basis consistent with prior years; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (B) | are stated in reasonable detail and accurately and fairly reflect the transactions and dispositions of assets of IPC Opco. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------|

|   | (n) | Absence of Certain Changes.  Except as set out in Section 4.1(n) of the IPC Disclosure Letter, since June 30, 2009: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | IPC Opco has conducted its business in the ordinary course of business consistent with past practice, except for the transactions contemplated by this Agreement; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | there has been no Material Adverse Effect or any event or occurrence that would be reasonably expected to have a Material Adverse Effect. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | IPC Opco has no liability or obligation of any nature (whether accrued, absolute, contingent or otherwise) which is material to IPC Opco, including any agreement, contract or commitment to create, assume or issue any bond, debenture, note or other similar instrument or any agreement, contract or commitment providing for the |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | guarantee, indemnification, assumption or endorsement or any similar commitment with respect to the obligations, liabilities (contingent or otherwise) or indebtedness of any other person, required by Canadian generally accepted accounting principles to be set forth in a balance sheet of IPC Opco or in the notes thereto, which individually or in the aggregate has not been reflected in the consolidated balance sheet of IPC US dated June 30, 2009 that is part of the IPC US Financial Statements, other than liabilities, indebtedness or obligations incurred by IPC Opco in the ordinary course of business since the date of such balance sheet in an amount exceeding $15,000 individually or in the aggregate.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Litigation.  Except as set out in Section 4.1(o) of the IPC Disclosure Letter, there are no claims, actions, applications, suits, demands, arbitrations, charges, indictments, hearings or other civil, criminal, administrative or investigative proceedings, or other investigations or examinations (collectively, “IPC Opco Legal Actions”) commenced or, to the knowledge of IPC Opco, pending or threatened, against (i) IPC Opco or against any of IPC Opco’s property or assets at law or in equity before or by any Governmental Entity or (ii) any director or officer of IPC Opco or any IPC Opco Employee, which IPC Opco Legal Actions would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither IPC Opco nor its assets or properties is subject to any outstanding judgment, order, writ, injunction or decree that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (p) | Taxes. |
|--------|-----|--------|

|   | (i) | IPC Opco has, (A) duly and timely filed, or caused to be filed, all material Returns required to be filed by it prior to the date hereof and all such Returns are true, complete and correct in all material respects; (B) paid in full, within the prescribed time limits, all Taxes and all assessments and reassessments of Taxes due on or before the date hereof, and in the case of any Taxes which were not payable by IPC Opco as of the Effective Time but which will become payable after the Effective Time in respect of a period that commenced prior to the Effective Time, accruals therefor will be made in conformity with generally accepted accounting principles in the books and records of IPC Opco; (C) duly and timely withheld, or caused to be withheld, all Taxes required by Law to be withheld by it (including Taxes and other amounts required to be withheld by it in respect of any amount paid or credited or deemed to be paid or credited by it to or for the account of any person, including any employees, officers or directors and any non resident person) and duly and timely remitted, or caused to be remitted, to the appropriate Governmental Entity such Taxes required by Law to be remitted by it; and (D) duly and timely collected, or caused to be collected, any sales or transfer Taxes, including goods and services, harmonized sales and provincial or territorial sales Taxes, required by Law to be collected by it and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ii) | the unpaid Taxes of IPC Opco did not, as of the date of the IPC US Financial Statements prepared in respect of the interim period ended September 30, 2008, exceed the estimated reserves and provisions for Taxes accrued but not yet due and payable as reflected in such IPC US Financial Statements; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | no deficiencies, litigation, proposed adjustments or matters in controversy with respect to Taxes exist or have been asserted which remain unresolved, and no action or proceeding for assessment or collection of Taxes has been taken, asserted, or to the knowledge of IPC Opco, threatened, against IPC Opco or any of its assets, except, in each case, as disclosed or provided for in the IPC US Financial Statements; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | there are no currently effective elections, agreements or waivers extending the statutory period or providing for an extension of time with respect to the assessment or reassessment of any Taxes of, or the filing of any Return or any payment of any Taxes by, IPC Opco and Canadian federal and provincial income tax assessments have been issued to IPC Opco covering all past periods up to and including the fiscal year ended December 31, 2007; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | there are no Liens (other than Liens for Taxes not yet due and payable or Liens for income and similar Taxes that are being contested in good faith and for which IPC Opco has made adequate provision in accordance with generally accepted accounting principles) for Taxes upon any of the assets of IPC Opco; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | IPC Opco is in compliance with all applicable Laws, including any documentation and recordkeeping requirements thereunder, applicable to the allocation of income and deductions and transactions among related taxpayers; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | IPC Opco is not a party to any indemnification, allocation or sharing agreement with respect to Taxes that could give rise to a payment or indemnification obligation, and has no liability for Taxes of any person (other than IPC Opco) as a transferee or successor, by contract, or otherwise; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | IPC Opco has made available to the Vasogen complete and accurate copies of all Returns which it was required to file in respect of the three fiscal years of IPC Opco ending prior to the date hereof; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | to the knowledge of IPC Opco, no claim has been made by a Governmental Entity in any jurisdiction in which IPC Opco does not file Returns that IPC Opco is or may be liable for Taxes in such jurisdiction; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (x) | IPC Opco has, at all relevant times, been and is a taxable Canadian corporation within the meaning of subsection 89(1) of the Tax Act; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | there are no amounts outstanding and unpaid for which IPC Opco has previously claimed a deduction under the Tax Act.  In this respect, there are no circumstances existing which could result in the application of any of sections 78 to 80.04 of the Tax Act or any equivalent provincial Tax legislation to IPC Opco and give rise to a liability on the part of IPC Opco for Taxes; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | except as set out in Section 4.1(p) of the IPC Disclosure Letter, IPC Opco has not received any requirement pursuant to section 224 of the Tax Act which remains unsatisfied in any respect; and |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xiii) | IPC Opco is duly registered under Part IX of the Excise Tax Act (Canada) with respect to the goods and services tax and the registration number is 85599 7086 RT0001. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | Real Property.  Except as set out in Section 4.1(q) of the IPC Disclosure Letter, |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (i) | Owned Real Property |
|--------|-----|---------------------|

|   | (ii) | Leased Property |
|--------|------|-----------------|

|   | (A) | Section 4.1(q) of the IPC Disclosure Letter lists all IPC Opco Leases or agreements to lease (collectively, the “IPC Opco Leases”) under which IPC Opco leases or has the option to lease any real or immovable property (collectively, the “IPC Opco Leased Real Property”).  Current, complete and correct copies of all IPC Opco Leases have been made available to Vasogen; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | IPC Opco is exclusively entitled to all rights and benefits as lessee under the IPC Opco Leases, and IPC Opco has not sublet, assigned, licensed or otherwise conveyed any rights in the IPC Opco Leased Real Property or in the IPC Opco Leases to any other person; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | the IPC Opco Leases are in all material respects in good standing, create good and valid leasehold estates in the IPC Opco Leased Real Property and are in full force and effect without amendment.  With respect to the IPC Opco Leases (i) all rents, additional rents and other obligations required to be paid or performed thereunder have been duly paid and performed, (ii) no waiver, indulgence or postponement of the lessee's obligations and other obligations required to be paid or performed has been granted by the lessors, (iii) there exists no event |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (D) | to the knowledge of IPC Opco, the use by IPC Opco of the IPC Opco Leased Real Property is not in breach of any building, zoning or other statute, by-law, ordinance, regulation, covenant, restriction or official plan, and IPC Opco has adequate rights of ingress and egress for the operation of its business in the ordinary course except any use by IPC Opco or lack of rights which would not, individually or in the aggregate, have a Material Adverse Effect; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | to the knowledge of IPC Opco, the IPC Opco Leased Real Property and all buildings and improvements thereon are in good operating condition and repair, subject to normal wear and tear.  To IPC Opco’s knowledge, there are no latent defects of adverse physical conditions affecting any IPC Opco Leased Real Property or the buildings or improvements thereon, other than those that would not, individually or in the aggregate, have a Material Adverse Effect. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | Personal Property.  Except for the IPC Opco Permitted Encumbrances, IPC Opco has good and valid title to, or a valid and enforceable leasehold interest in, all tangible personal property owned or leased, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  IPC Opco’s ownership of or leasehold interest in any such personal property is not subject to any Liens, except for Liens that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | Contracts. |
|--------|-----|------------|

|   | (i) | Section 4.1(s) of the IPC Disclosure Letter contains a list of the following Contracts, correct, current and complete copies of which have been made available to the Vasogen: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | Contracts under which: |
|--------|-----|------------------------|

|   | (I) | IPC Opco is lessee of, or holds or uses, any machinery, equipment, vehicle or other tangible personal property owned by any other person involving payment by IPC Opco of more than $15,000 on an annual basis; or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (II) | IPC Opco is a lessor or sublessor of, or makes available for use by any other person, any tangible personal property owned or leased by IPC Opco, involving payment to IPC Opco of more than $15,000 on an annual basis; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | licences to or from any third parties of any Intellectual Property that is material to the businesses of IPC Opco and involving payment by or to IPC Opco of more than $15,000 on an annual basis (other than commercially-available off-the shelf shrink wrap or click wrap) software licensed to IPC Opco together with all support, maintenance, development, escrow and other agreements related thereto; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | any Contract under which Indebtedness of IPC Opco is outstanding or may be incurred or pursuant to which any property or asset of IPC Opco is mortgaged, pledged or otherwise subject to a Lien, or any Contract restricting the incurrence of Indebtedness by IPC Opco or the incurrence of Liens on or the transfer of any properties of IPC Opco where the amount of such Indebtedness, mortgage, pledge or Lien exceeds $15,000; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | Contracts under which IPC Opco has directly or indirectly guaranteed indebtedness, liabilities or obligations (including the performance of any obligation) of any other person; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | any Contract made outside the ordinary course of IPC Opco’s business and providing for the sale, purchase or exchange of, or option to sell, purchase or exchange, any property or asset where the sale price, purchase price or agreed value or fair value of such property exceeds $15,000; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (F) | IPC Opco’s drug development agreements, joint venture agreements; strategic alliance agreements, licence or commercial rate agreements or any similar agreements with any third parties; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (G) | any Contract which is material to IPC Opco; |
|--------|-----|---------------------------------------------|

|   |   | (the Contracts described in clauses (A) through (G), together with all exhibits and schedules thereto and, collectively, with the IPC Opco Leases being, the “IPC Opco Material Contracts”).  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Except as has not and would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, neither IPC Opco nor, to the knowledge of IPC Opco, any of the other parties thereto, is in breach or violation of, or default (in each case, with or without notice or lapse of time |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | or both) under, any IPC Opco Material Contract and IPC Opco has not (A) received or given any notice of default which remains uncured or (B) received or given any notice of cancellation or termination of any IPC Opco Material Contract.  To the knowledge of IPC Opco, there exists no state of facts which after notice or lapse of time or both would constitute a default or breach of an IPC Opco Material Contract or give rise to any right to cancel or terminate any IPC Opco Material Contract.  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | Restrictions on Business Activities.  Except as set out in Section 4.1(t) of the IPC Disclosure Letter, there is no agreement, judgment, injunction, order or decree or Law binding upon IPC Opco that purports to have, has or could reasonably be expected to have or (including following the transactions contemplated by this Agreement), the effect of prohibiting, restricting or impairing: (a) any business practice of IPC Opco; (b) any acquisition of any business or property by IPC Opco; (c) the ability of IPC Opco to solicit or engage any customers; (d) the ability of IPC Opco incur or guarantee Indebtedness; or (e) the nature of the business which may be conducted by IPC Opco or the manner or geographic area in which all or a material portion of the business of IPC Opco may be conducted. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | Permits.  To the knowledge of IPC Opco, IPC Opco has obtained and is in compliance with all Permits required by applicable Laws necessary to, lease the IPC Opco Leased Real Property and conduct its businesses as it is now being conducted, other than where the absence of such Permits or the failure to comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Employee Benefits. |
|--------|-----|--------------------|

|   | (i) | Section 4.1(v) of the IPC Disclosure Letter contains a list of all health, welfare, supplemental unemployment benefit, bonus, profit sharing, option, insurance, incentive, incentive compensation, deferred compensation, share purchase, share compensation, disability, pension or retirement plans and other material employee or director compensation or benefit plans, policies, trusts, funds, agreements or arrangements for the benefit of directors or former directors of IPC Opco, IPC Opco Employees or former IPC Opco Employees, which are maintained by or binding upon IPC Opco or in respect of which IPC Opco has any actual or potential liability (collectively, the “IPC Opco Plans”).  True, current and complete copies of the IPC Opco Plans have been made available to Vasogen. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 4.1(v) of the IPC Disclosure Letter also lists the general policies, procedures and work-related rules in effect with respect to employees of IPC Opco, including but not limited to policies regarding holiday, sick leave, vacation, disability and death benefits, termination and severance pay, |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | automobile allowances and rights to company-provided automobiles and expense reimbursements (collectively, the “Other IPC Opco Plans”). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | All of the IPC Opco Plans are and have been, to the extent necessary, established, registered, qualified and, in all material respects, administered in accordance with all applicable Laws, and in accordance with their terms and the terms of agreements between IPC Opco and any IPC Opco Employee and former IPC Opco Employee who are members of, or beneficiaries under, the IPC Opco Plans. |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | All current obligations of IPC Opco regarding the IPC Opco Plans and the Other IPC Opco Plans have been satisfied in all material respects.  All contributions, premiums or taxes required to be made or paid by IPC Opco under the terms of each IPC Opco Plan, each Other Plan or by applicable Laws in respect of the IPC Opco Plans and the Other IPC Opco Plans have been made in a timely fashion in accordance with applicable Laws in all material respects and in accordance with the terms of the applicable IPC Opco Plan or Other IPC Opco Plan. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | All vacation pay for employees of IPC Opco is properly reflected and accrued in the books and accounts of IPC Opco. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------|

|   | (vi) | Except as set out in Section 3.1(v) of the IPC Disclosure Letter, since May 31, 2008, except in the ordinary course of business or as required by law and consistent with the IPC Opco’s past practices, there have been no material increases or decreases in staffing levels of IPC Opco and there have been no material changes to the terms and conditions of employment of any employees of IPC Opco, including their salaries, remuneration and any other payments to them, and there have been no material changes in any remuneration payable or benefits provided to any officer, director, consultant, independent or dependent contractor or agent of IPC Opco, and IPC Opco has not agreed or otherwise become committed to change any of the foregoing since that date. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | IPC Opco is in compliance in all material respects with application health and safety legislation and regulations made pursuant thereto and there are no outstanding claims, investigations, prosecutions, charges or orders thereunder. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | IPC Opco is in compliance with applicable workers’ compensation laws and regulations made pursuant thereto and is up-to-date in its payment of all premiums and there are no outstanding assessments, levies or penalties thereunder. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ix) | IPC Opco is up-to-date and in compliance with respect to all applicable employee and payroll deductions and remittances, including but not limited to, income tax, Canada Pension Plan, Employment Insurance and Employer Health Tax and there are no penalties, investigations, chargers or orders thereunder. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (w) | Compliance with Laws.  IPC Opco has complied, in all material respects, with and is not, in any material respect, in violation of any applicable Laws.  None of IPC Opco or, to the knowledge of IPC Opco, any of its directors, executives, representatives, agents or employees (i) has used or is using any corporate funds for any illegal contributions, gifts, entertainment or other expenses relating to political activity that would be illegal, (ii) has used or is using any corporate funds for any direct or indirect illegal payments to any foreign or domestic governmental officials or employees, (iii) has established or maintained, or is maintaining, any illegal fund of corporate monies or other properties or (iv) has made any bribe, illegal rebate, illegal payoff, influence payment, kickback or other illegal payment of any nature. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | Intellectual Property. |
|--------|-----|------------------------|

|   | (i) | IPC Opco owns all right, title and interest in and to, has licensed or is otherwise lawfully authorized to use all Intellectual Property that is material or necessary to the conduct of IPC Opco’s business, as currently conducted, free and clear of any Liens other than the IPC Opco Permitted Encumbrances.  No royalties or fees (licenses or otherwise) are payable by IPC Opco to any Person by reason of the ownership or use of any Intellectual Property. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 4.1(x) of the IPC Disclosure Letter lists and identifies all material Intellectual Property that is (A) owned by IPC Opco and that has been registered or applied for, (B) licensed by IPC Opco to a third party, or (C) licensed by a third party to IPC Opco.  All such Intellectual Property is sufficient for conducting the business, as currently conducted, of IPC Opco. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | To the knowledge of IPC Opco, all material Intellectual Property owned and/or used by IPC Opco in the conduct of its business is valid, subsisting and enforceable (subject to the effects of bankruptcy, insolvency, reorganization, moratorium or laws relating to or affecting creditors’ rights generally) and, subject to the subsisting intellectual property policies of IPC Opco and consistent with past practice, IPC Opco has taken reasonable measures (A) to protect such Intellectual Property against infringement and misappropriation by third parties, and (B) to preserve, maintain and enforce IPC Opco’s rights in such Intellectual Property, and the validity and enforceability thereof and all such licenses are in full force and effect in accordance with the terms written therein and IPC Opco is not in default of any such license.  Subject to the subsisting intellectual property policies of |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | IPC Opco and consistent with past practice, IPC Opco is up-to-date, in all material respects with all material filings, payments and formalities required to be carried out in order to ensure that such Intellectual Property owned by IPC Opco is maintained in good standing and that IPC Opco has the recorded ownership of such material Intellectual Property, and, to the knowledge of IPC Opco, there are no material defects in such formalities that would materially prevent the enforcement of such rights against third parties or result in the invalidity, loss, lapse, abandonment or expiration of such rights (other than Intellectual Property expiring at the end of its applicable statutory term).  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | IPC Opco has not received any claim, notice or threat in writing from any person (A) contesting the validity, enforceability, ownership or use of any Intellectual Property used by IPC Opco in the conduct of its business, or (B) claiming infringement, misappropriation or other conflict with the rights of any person arising from the operation or conduct of IPC Opco’s business as currently operated or conducted.  To the knowledge of IPC Opco, the operation or conduct of IPC Opco’s business does not infringe or misappropriate any Intellectual Property of any person.  To the knowledge of IPC Opco, no person is infringing or misappropriating any material Intellectual Property owned and used by IPC Opco in the conduct of its business. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Subject to Section 4.1(e), no event will occur as a result of the transactions contemplated hereby that would render invalid or unenforceable any rights of IPC Opco in any material Intellectual Property held or used by IPC Opco in the conduct of its business. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | All computer hardware and its associated firmware and operating systems, application software, database engines, technology infrastructure and other computer systems used in connection with the conduct of the business, as currently conducted, of IPC Opco (collectively, the “IPC Opco Technology”) are reasonably sufficient for conducting the business, as currently conducted, of IPC Opco. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | IPC Opco owns, has leased or licensed or is otherwise lawfully authorized in respect of all IPC Opco Technology in such manner as to permit the use of same as used to date in the business of IPC Opco as currently conducted. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | In the last twelve (12) months, IPC Opco has not experienced any material disruption, interruption, outage, bugs or breakdowns that have caused the substantial disruption or interruption in or to the use of the IPC Opco Technology in any material respect. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ix) | All current and former employees, agents and independent contractors of IPC Opco who have materially contributed to or participated in the conception and development of any Intellectual Property used by IPC Opco in the conduct of its business (“IPC Opco IP Participant”) have executed and delivered to IPC Opco a proprietary information agreement, pursuant to which, inter alia, such IPC Opco IP Participant has, except as set out in Section 4.1(x) of the IPC Disclosure Letter, (I) assigned or waived, as the case may be, all of his rights in such Intellectual Property to IPC Opco, and (II) agreed to keep confidential (except to the extent generally disclosed through no fault of the individual) such Intellectual Property.  No former or current IPC Opco IP Participant (A) has filed or in writing threatened any claim against IPC Opco related to any such Intellectual Property; or (B) to the knowledge of IPC Opco, has any registrations issued or applications pending for any Intellectual Property used or needed by IPC Opco which have not been assigned to IPC Opco.  |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | The transactions contemplated by this Agreement will not result in a default of, and to the knowledge of IPC Opco, no employee of IPC Opco is in default under, any term of any employment contract, noncompetition arrangement or other agreement relating to any Intellectual Property owned and used by IPC Opco in the conduct of its business.  No employee, agent or independent contractor of IPC Opco, nor any third party (A) is entitled to compensation by IPC Opco for any development or exploitation of such Intellectual Property, other than pursuant to subsisting policies of IPC Opco, or (B) has been granted any right to develop or exploit any such Intellectual Property that is inconsistent with IPC Opco’s use of same in the conduct of the business of IPC Opco as currently conducted. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xi) | IPC Opco has taken reasonable measures to protect and preserve the confidentiality of, all material confidential information, trade secrets, know how and other non-patented proprietary information of IPC Opco and to protect and preserve its rights to all copyrighted material, confidential information, trade secrets, know how and other non-proprietary information relating to the business of IPC Opco and developed or acquired by IPC Opco’s directors, officers, employees and consultants, including without limitation the procurement of proprietary invention assignments and non-disclosure and non-competition agreements from directors, officers, employees, consultants, subcontractors and other persons who have access to such information or materials. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | IPC Opco has not received and is not aware of any written notice to IPC Opco, or to any person with or for which IPC Opco is currently developing any Products of IPC Opco, from the US FDA, Health Canada or other applicable Governmental Authority (including any regulatory body) in the world which could furnish a basis for the delay in approval, withdrawal, |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | suspension, cancellation or non-renewal of any application, registration, license, permit or other governmental approval or consent of any applicable Governmental Authority issued to IPC Opco with respect to any component of any product being developed by, or that is material to and used by, IPC Opco or its Subsidiaries, other than as has been disclosed in the IPC Disclosure Letter.  Neither the execution, delivery nor performance of this Agreement by IPC Opco will adversely affect the status of any of the Governmental Authorizations.  There have been no recalls required by any Governmental Entity of the Products of IPC Opco.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xiii) | Without limiting the generality of the representations and warranties made in paragraph (xii) above, IPC Opco represents and warrants that, to its knowledge: (i) IPC Opco is in compliance in all material respects with all applicable provisions of the Food and Drugs Act (Canada) and the regulations thereunder relating to its products, product candidates and activities and to corresponding legislation and regulations in all other applicable jurisdictions, including without limitation, to those of the United States; (ii) all adverse events that were required to be reported by IPC Opco to Health Canada and to corresponding foreign Governmental Authorities (including any regulatory body), including the United States Food and Drug Administration, have been reported to Health Canada, and said corresponding foreign Governmental Authority (including any regulatory body) in a timely manner; and (iii) all stability studies required to be performed by or on behalf of IPC Opco for products used by IPC Opco have been completed or are ongoing in accordance with the applicable Governmental Authority (including any regulatory body), including the United States, requirements and to the requirements of the applicable foreign jurisdictions; and (iv) all GMP (“good manufacturing practices”) requirements have been and continue to be complied with in the relevant jurisdictions in all material respects where IPC Opco is conducting activities and no written notice has been received by IPC Opco from any applicable Governmental Authority (including any regulatory body) that would require product recalls of its Products or that would affect any of its registrations or licenses or applications therefore in any material respect that has not been disclosed in the IPC Disclosure Letter. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (y) | Insurance. |
|--------|-----|------------|

|   | (i) | IPC Opco maintains policies or binders of insurance as are listed in Section 4.1(y) of the IPC Disclosure Letter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 4.1(y) of the IPC Disclosure Letter contains a description of all rights to indemnification now existing in favour of present or former officers and directors of IPC Opco that arise in connection with their serving as directors or officers of IPC Opco, except for any rights of indemnification that are included in IPC Opco’s Organizational Documents. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, IPC Opco is covered by valid and currently effective insurance policies issued in favour of IPC Opco that IPC Opco reasonably has determined to be commercially reasonable, taking into account the industries in which IPC Opco operates.  Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, with respect to each insurance policy issued in favour of IPC Opco or pursuant to which IPC Opco is a named insured or otherwise a beneficiary under an insurance policy:  |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | the policy is in full force and effect and all premiums due thereon have been paid; |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (B) | IPC Opco is not in breach or default, and IPC Opco has not taken any action or failed to take any action which, with notice or the lapse of time, would constitute such a breach or default, or permit termination or modification of, any such policy; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | to the knowledge of IPC Opco, none of such policies will terminate or lapse by reason of the transactions contemplated by this Agreement; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | no insurer under any such policy has cancelled or generally disclaimed liability under any such policy or indicated any intent to do so or not to renew any such policy; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | except as set out in Section 4.1(y) of the IPC Disclosure Letter, there is no claim by IPC Opco pending under any such policy that has been denied or disputed by the insurer. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | Environment. |
|--------|-----|--------------|

|   | (i) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, to the knowledge of IPC Opco, IPC Opco is in compliance with all, and has not violated any, Environmental Laws; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) IPC Opco has not Released, and, to the knowledge of IPC Opco, no other person has Released, any Hazardous Substances (in each case except in compliance with applicable Environmental Laws) on, at, in, under or from any real property previously owned, leased or occupied or currently leased by IPC Opco and (B), to the knowledge of IPC Opco, there are no Hazardous Substances or other conditions that could reasonably be expected to result in liability of or adversely affect IPC Opco under or related to any Environmental Law on, at, |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | in, under or from any real property previously owned, leased or occupied, or currently leased by IPC Opco;  |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, there are no pending claims or, to the knowledge of IPC Opco, threatened claims, against IPC Opco arising out of any Environmental Laws; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | No Lien in favour of a Governmental Entity arising under Environmental Laws is pending or, to the knowledge of IPC Opco, threatened, affecting IPC Opco or any real property previously owned , leased or occupied or currently leased by IPC Opco, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | IPC Opco is not in possession of any material environmental assessments, reports, audits or other documents that relate to the current or past environmental condition of any real property previously owned, leased or occupied or currently leased by IPC Opco that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | To the knowledge of IPC Opco, there is no underground or above ground storage tank at, in, on or under the buildings, facilities or real properties currently leased or occupied by IPC Opco; and |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | To the knowledge of IPC Opco, there are no conditions that directly or indirectly relate to environmental matters or to the condition of the soil or groundwater that would adversely affect IPC Opco in a material manner (whether at, in, on or below any real property currently or previously owned, leased or occupied by IPC Opco). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The representations and warranties contained in this Section 4.1(z) are the sole representations and warranties of IPC Opco relating to compliance with the Environmental Laws. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | Employment Agreements. |
|--------|------|------------------------|

|   | (i) | Except as disclosed in Section 4.1(aa) of the IPC Disclosure Letter, IPC Opco is not a party to or bound or governed by: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | any agreement with any current or former director of IPC Opco, any officer of IPC Opco or any other current or former employee providing for payments in excess of $50,000 annually (excluding commissions and bonuses); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | any change of control agreement with any director, officer or employee or any written or, to the knowledge of IPC Opco, oral |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | agreement, arrangement or understanding providing for an existing retention, severance or termination compensation or benefits to any director, officer or employee; or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | any collective bargaining or union agreement. |
|--------|-----|-----------------------------------------------|

|   |   | IPC Opco has made available to Vasogen current, correct and complete copies (or descriptions, where applicable) of the Contracts referred to in clauses (A) and (B) of this Section 4.1(aa)(i).  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | There are no existing or, to the knowledge of IPC Opco, threatened labour disputes, strikes, lock-outs, employee grievances, controversies or other labour troubles affecting IPC Opco or its business. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | There are no existing or, to the knowledge of IPC Opco, threatened applications for certification, voluntary recognition, related employer, successor employer or union bargaining rights in respect of IPC Opco.  IPC Opco is not currently conducting negotiations with any labour union or employee association and to the knowledge of IPC Opco, during the period of three years preceding the date of this Agreement there has been no attempt to organize, certify or establish any labour union or employee association in relation to any of the employees of IPC Opco. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | Vote Required. |
|--------|------|----------------|

|   | (i) | The only vote of holders of securities of IPC Opco necessary (under the IPC Opco Organizational Documents and other applicable Laws) to approve the performance by IPC Opco of its obligations set out in this Agreement is the approval of the shareholders and the board of directors of IPC Opco. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | There are no shareholders agreements, registration rights agreements, voting trusts, proxies or similar agreements, arrangements or commitments to which IPC Opco is a party or, to the knowledge of IPC Opco, with respect to any shares or other equity interests of IPC Opco or any other Contract relating to disposition, voting or dividends with respect to any equity securities of IPC Opco. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (cc) | No Collateral Benefit.  No related party of IPC Opco (within the meaning on Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions), either individually or together with such party’s associated entities, beneficially owns or exercised control or direction over 1% or more of the outstanding IPC Opco Shares, except for related parties who will not receive a “collateral benefit” (within the meaning of such Rule) as a consequence of the transactions contemplated this Agreement, including the Arrangement. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (dd) | Brokers.  Except as described in Section 4.1(dd), no broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission from, or to the reimbursement of any of its expenses by, IPC Opco in connection with this Agreement or the Arrangement. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | IPC US Board Approval.  As of the date hereof, the IPC US Board, after consultation with its financial and legal advisors, has determined that the Merger is fair to the IPC US Shareholders and is in the best interests of IPC US and has resolved to recommend to the IPC US Shareholders that they vote their IPC US Shares in favour of the IPC US Merger Resolution.  The IPC US Board has approved the Merger and the execution and performance of this Agreement. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Organization and Qualification.  IPC US is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power and capacity to own its assets as now owned and to carry on its business as it is now being conducted.  IPC US is duly registered or otherwise authorized to do business and is in good standing in each jurisdiction in which the character of its properties, owned, leased, licensed or otherwise held, or the nature of its activities makes such registration or authorization necessary, except where the failure to be so registered, authorized or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Correct, current and complete copies of the articles of incorporation and by- |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | laws, or the equivalent thereof, each as amended to date, of IPC US (collectively, the “IPC US Organizational Documents”) have been made available to Vasogen.  IPC US is not in violation of the IPC US Organizational Documents in any material respect.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Authority Relative to this Agreement and the Merger Agreement.  IPC US has the requisite corporate power and capacity to enter into this Agreement and the Merger Agreement and to carry out its obligations hereunder and thereunder.  The execution and delivery of this Agreement and the Merger Agreement by IPC US and, subject to approval of stakeholders at the IPC US Meeting, the consummation by IPC US of the transactions contemplated by this Agreement and the Merger Agreement have been duly authorized by the IPC US Board. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Enforceability.  This Agreement has been duly and validly executed and delivered by IPC US and constitutes a legal, valid and binding obligation of IPC US enforceable against IPC US in accordance with its terms, subject to the qualification that such enforceability may be limited by bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting rights of creditors and general principles of equity. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | *****No Violations.  Subject to receipt of any consents, approvals or waivers set forth in Section 5.1(f) of the IPC Disclosure Letter, none of the execution and delivery of this Agreement or the Merger Agreement by IPC US, the consummation of the Arrangement or the Merger by IPC US or compliance by IPC US with any of its obligations under this Agreement or the Merger Agreement will: (i) violate, conflict with, or result in a breach of any provision of, or constitute a default (or an event which with or without notice or lapse of time or both, would constitute a default) under, or result in a right of termination or acceleration under, or result in the creation of any Lien upon, any of the properties or assets of IPC US or cause any Indebtedness of IPC US to come due before its stated maturity or cause any credit commitment to cease to be available or cause any payment or other obligation to be imposed on IPC US under, any of the terms, conditions or provisions of (A) the IPC US Organizational Documents or (B) any note, bond, mortgage, indenture, loan agreement, deed of trust, Lien, Lease or other Contract to which IPC US is a party or to which its properties or assets may be subject or by which IPC US is bound; or (ii) subject to obtaining the Regulatory Approvals and the IPC US Required Vote and except for complying with applicable corporate, competition and securities Laws, (A) violate any Law applicable to IPC US or any of its properties or assets; or (B) cause the suspension or revocation of any Permit currently in effect (except, in the case of clauses (i)(B) and (ii) above, for such violations, conflicts, breaches, defaults, terminations, accelerations, creations of Liens, payments or other obligations which, or any Permits which, if suspended or revoked, would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect). |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (f) | Required Consents.  Except as set forth in Section 5.1(f) of the IPC Disclosure Letter, there is no requirement to obtain any consent, approval or waiver of a party under any IPC US Material Contract to which IPC US is a party in connection with, and no change in any obligation or right under or in any term or condition of any such IPC US Material Contract will occur (and no right to cause any such change will arise) as a result of, the execution and delivery by IPC US of this Agreement and the Merger Agreement, the performance by IPC US of its obligations hereunder and thereunder, and the completion of the transactions contemplated by this Agreement and the Merger Agreement, including the Arrangement and the Merger, except for any consents, approvals or waivers which, if not given or received, would not, individually or in the aggregate reasonably be expected to have a Material Adverse Effect.  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Capitalization. |
|--------|-----|-----------------|

|   | (i) | The authorized share capital of IPC US consists of  40,000,000 IPC US Common Shares and 20,000,000 IPC US Preferred Shares, of which 10,850,000 are designated as Special Voting Shares.  As of the close of business on May 31, 2009, there were issued and outstanding 10,850,000 Special Voting Shares and 6,023,944 IPC US Common Shares of which 1,884,878 are IPC US Free Shares and 4,139,066 are IPC US Restricted Shares; since such date, IPC US has not issued any shares, and there has not been any split, combination or reclassification or redemption or repurchase of IPC US Shares; and there are outstanding no other shares of any class or series in the capital of IPC US. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | As of the close of business on May 31, 2009, an aggregate of up to 5,042,259 IPC US Common Shares were issuable upon the exercise of the IPC US Options, the type, exercise prices, expiration dates and other material terms of which are set forth in Section 5.1(g) of the IPC Disclosure Letter; and, except as set forth above, there are no options, warrants or other rights, shareholder rights plans, agreements or commitments of any character whatsoever requiring or which may require the issuance, sale or transfer by IPC US of any shares of IPC US (including IPC US Shares) or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right to acquire, any shares of IPC US. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | All outstanding IPC US Shares have been duly authorized and validly issued, are fully paid and non-assessable, and all IPC US Shares issuable upon the exercise of rights under the IPC US Options have been duly authorized and, upon issuance, will be duly authorized and validly issued as fully paid and non-assessable and are not and will not be subject to, or issued in violation of, any pre-emptive rights. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | Other than the IPC US Shares and the IPC US Options, there are no securities of IPC US outstanding which have the right to vote generally (or are convertible into or exchangeable for securities having the right to vote generally) with the IPC US Shareholders on any matter.  Except as contemplated by the IPC US Merger Agreement, there are no outstanding contractual or other obligations of IPC US to (i) repurchase, redeem or otherwise acquire any of its securities (ii) make any investment in or provide any funds to (whether in the form of a loan, capital contribution or otherwise) any person, or (iii) provide any guarantee with respect to any person. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | No Subsidiaries.  Except as set out in Section 5.1(h) of the IPC Disclosure Letter, IPC US does not, directly or indirectly, own or have any interest in any shares or other securities of any person, and IPC US does not have the option or any other entitlement to acquire any shares or other securities of any person. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | Vasogen Shares.  IPC US is not a registered or beneficial holder of any Vasogen Shares. |
|--------|-----|---------------------------------------------------------------------------------------------------|

|   | (j) | Shareholders and Similar Agreements.  Except as set out in Section 5.1(j) of the IPC Disclosure Letter, IPC US is not a party to any shareholder, pooling, voting trust or other similar agreement relating to any of the issued and outstanding shares of IPC US. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (k) | Reporting Status and Securities Laws Matters.  IPC US is not a “reporting issuer” under applicable Securities Laws and is in compliance in all material respects with all Securities Laws.  To the knowledge of IPC US, no inquiry or investigation (formal or informal) of any Securities Authority has been undertaken since September 1, 2004 or is currently in effect or ongoing. Section 5.1(k)of the IPC Disclosure Letter contains a listing of all material correspondence between any Securities Authority and IPC US during the prior twelve (12) month period and in respect of the contemplated or attempted registration of any securities of any IPC Company pursuant to any Securities Laws. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (l) | Reports.  The documents comprising IPC US’s Public Disclosure Record did not at the time filed or, at the time of filing any amendment thereto with Securities Authorities contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, not misleading in light of the circumstances under which they were made.  IPC US has not filed any confidential material change report with any Securities Authority or the Exchange which at the date hereof remains confidential. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (m) | IPC US Financial Statements.  IPC US’s audited consolidated financial statements of IPC US as at and for the fiscal years ended December 31, 2006, December 31, 2007 and December 31, 2008 (including the notes thereto), IPC US’s unaudited consolidated financial statements of IPC US for the six months ended June 30, 2009 |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | (including the notes thereto) delivered to Vasogen prior to the execution of this Agreement (collectively, the “IPC US Financial Statements”):  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | were prepared in accordance with US generally accepted accounting principles on a basis consistent with previous fiscal years (or comparable periods) except as otherwise indicated in such financial statements and the notes thereto or in the related report of IPC US’s independent auditors; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | fairly present in all material respects the financial condition, results of operations and cash flows of IPC US as of the dates thereof and for the periods indicated therein (subject, in the case of any unaudited interim consolidated financial statements, to normal period-end adjustments). |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (n) | Absence of Undisclosed Liabilities.  Except to the extent reflected or reserved in the IPC US Financial Statements or incurred in the ordinary course since May  31, 2009, IPC US has not incurred any outstanding indebtedness or any liabilities or obligations (whether accrued, absolute, contingent or otherwise) in an amount exceeding $15,000 individually or in the aggregate. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (o) | Books and Records. |
|--------|-----|--------------------|

|   | (i) | The corporate records and minute books of IPC US, all of which have been made available to Vasogen, have been maintained in accordance with all applicable Laws in all material respects and the minute books of IPC US are complete and accurate in all material respects. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Financial books and records and accounts of IPC US in all material respects: |
|--------|------|------------------------------------------------------------------------------|

|   | (A) | have been maintained in accordance with good business practices on a basis consistent with prior years; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (B) | are stated in reasonable detail and accurately and fairly reflect the transactions and dispositions of assets of IPC US. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (p) | Absence of Certain Changes.  Except as set out in Section 5.1(p) of the IPC Disclosure Letter, since May 31, 2009: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | IPC US has conducted its business in the ordinary course of business consistent with past practice, except for the transactions contemplated by this Agreement; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | there has been no Material Adverse Effect or any event or occurrence that would be reasonably expected to have a Material Adverse Effect. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | IPC US has no liability or obligation of any nature (whether accrued, absolute, contingent or otherwise) which is material to IPC US, including any agreement, contract or commitment to create, assume or issue any bond, debenture, note or other similar instrument or any agreement, contract or commitment providing for the guarantee, indemnification, assumption or endorsement or any similar commitment with respect to the obligations, liabilities (contingent or otherwise) or indebtedness of any other person, required by US generally accepted accounting principles to be set forth in a balance sheet of IPC US or in the notes thereto, which individually or in the aggregate has not been reflected in the balance sheet of IPC US dated September 30, 2008 that is part of the IPC US Financial Statements, other than liabilities, indebtedness or obligations incurred by IPC US in the ordinary course of business since the date of such balance sheet in an amount exceeding $15,000 individually or in the aggregate.  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (q) | Litigation.  Except as set out in Section 5.1(q) of the IPC Disclosure Letter, there are no claims, actions, applications, suits, demands, arbitrations, charges, indictments, hearings or other civil, criminal, administrative or investigative proceedings, or other investigations or examinations (collectively, “IPC US Legal Actions”) commenced or, to the knowledge of IPC US, pending or threatened, against (i) IPC US or against any of IPC US’s property or assets at law or in equity before or by any Governmental Entity or (ii) any director or officer of IPC US or any IPC US Employee, which IPC US Legal Actions would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Neither IPC US nor its assets or properties is subject to any outstanding judgment, order, writ, injunction or decree that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (r) | Taxes. |
|--------|-----|--------|

|   | (i) | IPC US has, (A) duly and timely filed, or caused to be filed, all material Returns required to be filed by it prior to the date hereof and all such Returns are true, complete and correct in all material respects;  (B) paid in full, within the prescribed time limits, all Taxes and all assessments and reassessments of Taxes due on or before the date hereof, and in the case of any Taxes which were not payable by IPC US as of the Effective Time but which will become payable after the Effective Time in respect of a period that commenced prior to the Effective Time, accruals therefor will be made in conformity with generally accepted accounting principles in the books and records of IPC US; (C) duly and timely withheld, or caused to be withheld, all Taxes required by Law to be withheld by it (including Taxes and other amounts required to be withheld by it in respect of any amount paid or credited or deemed to be paid or credited by it to or for the account of any person, including any employees, officers or directors and any non resident person) and duly and timely remitted, or caused to be remitted, to the appropriate Governmental Entity such Taxes required by Law to be remitted by it; and (D) duly and timely |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | collected, or caused to be collected, any sales or transfer Taxes, including goods and services, harmonized sales and provincial or territorial sales Taxes, required by Law to be collected by it and duly and timely remitted to the appropriate Governmental Entity any such amounts required by Law to be remitted by it;  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the unpaid Taxes of IPC US did not, as of the date of the IPC US Financial Statements prepared in respect of the interim period ended June 30, 2009, exceed the estimated reserves and provisions for Taxes accrued but not yet due and payable as reflected in such IPC US Financial Statements; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | no deficiencies, litigation, proposed adjustments or matters in controversy with respect to Taxes exist or have been asserted which remain unresolved, and no action or proceeding for assessment or collection of Taxes has been taken, asserted, or to the knowledge of IPC US, threatened, against IPC US or any of its assets, except, in each case, as disclosed or provided for in the IPC US Financial Statements; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | there are no currently effective elections, agreements or waivers extending the statutory period or providing for an extension of time with respect to the assessment or reassessment of any Taxes of, or the filing of any Return or any payment of any Taxes by, IPC US and Canadian federal and provincial income tax assessments have been issued to IPC US covering all past periods up to and including the fiscal year ended December 31, 2007; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | there are no Liens (other than Liens for Taxes not yet due and payable or Liens for income and similar Taxes that are being contested in good faith and for which IPC US has made adequate provision in accordance with generally accepted accounting principles) for Taxes upon any of the assets of IPC US; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | IPC US is in compliance with all applicable Laws, including any documentation and recordkeeping requirements thereunder, applicable to the allocation of income and deductions and transactions among related taxpayers; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | IPC US is not a party to any indemnification, allocation or sharing agreement with respect to Taxes that could give rise to a payment or indemnification obligation, and has no liability for Taxes of any person (other than IPC US) as a transferee or successor, by contract, or otherwise; |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | IPC US has made available to Vasogen complete and accurate copies of all Returns which it was required to file in respect of the three fiscal years of IPC US ending prior to the date hereof; and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (ix) | to the knowledge of IPC US, no claim has been made by a Governmental Entity in any jurisdiction in which IPC US does not file Returns that IPC US is or may be liable for Taxes in such jurisdiction. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (s) | Real Property.  Except as set out in Section 5.1(s) of the IPC Disclosure Letter, |
|--------|-----|--------------------------------------------------------------------------------------------------|

|   | (i) | Owned Real Property |
|--------|-----|---------------------|

|   | (ii) | Leased Property |
|--------|------|-----------------|

|   | (A) | Section 5.1(s) of the IPC Disclosure Letter lists all leases or agreements to lease (collectively, the “IPC US Leases”) under which IPC US leases or has the option to lease any real or immovable property (collectively, the “IPC US Leased Real Property”).  Current, complete and correct copies of all IPC US Leases have been made available to Vasogen; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | IPC US is exclusively entitled to all rights and benefits as lessee under the IPC US Leases, and IPC US has not sublet, assigned, licensed or otherwise conveyed any rights in the IPC US Leased Real Property or in the IPC US Leases to any other person; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | the IPC US Leases are in all material respects in good standing, create good and valid leasehold estates in the IPC US Leased Real Property and are in full force and effect without amendment.  With respect to the IPC US Leases (i) all rents, additional rents and other obligations required to be paid or performed thereunder have been duly paid and performed, (ii) no waiver, indulgence or postponement of the lessee's obligations and other obligations required to be paid or performed has been granted by the lessors, (iii) there exists no event of default or event, occurrence, condition or act (including consummation of the Arrangement) which, with the giving of notice, the lapse of time or both, would become a default under the IPC US Leases, and (iv) to the knowledge of IPC US, all of the covenants to be performed by any other party under the IPC US Leases have been fully performed; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | to the knowledge of IPC US, the use by IPC US of the IPC US Leased Real Property is not in breach of any building, zoning or other statute, by-law, ordinance, regulation, covenant, restriction or official plan, and IPC US has adequate rights of ingress and egress for the operation of its business in the ordinary course except any use by IPC |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | US or lack of rights which would not, individually or in the aggregate, have a Material Adverse Effect; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | (E) | to the knowledge of IPC US, the IPC US Leased Real Property and all buildings and improvements thereon are in good operating condition and repair, subject to normal wear and tear.  To IPC US’s knowledge, there are no latent defects of adverse physical conditions affecting any IPC US Leased Real Property or the buildings or improvements thereon, other than those that would not, individually or in the aggregate, have a Material Adverse Effect. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (t) | Personal Property.  Except for the IPC US Permitted Encumbrances, IPC US has good and valid title to, or a valid and enforceable leasehold interest in, all tangible personal property owned or leased, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  IPC US’s ownership of or leasehold interest in any such personal property is not subject to any Liens, except for Liens that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (u) | Contracts. |
|--------|-----|------------|

|   | (i) | Section 5.1(u) of the IPC Disclosure Letter contains a list of the following Contracts, correct, current and complete copies of which have been made available to Vasogen: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | Contracts under which: |
|--------|-----|------------------------|

|   | (I) | IPC US is lessee of, or holds or uses, any machinery, equipment, vehicle or other tangible personal property owned by any other person involving payment by IPC US of more than $15,000 on an annual basis; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (II) | IPC US is a lessor or sublessor of, or makes available for use by any other person, any tangible personal property owned or leased by IPC US, involving payment to IPC US of more than $15,000 on an annual basis; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | licences to or from any third parties of any Intellectual Property that is material to the businesses of IPC US and involving payment by or to IPC US of more than $15,000 on an annual basis (other than commercially-available off-the shelf shrink wrap or click wrap) software licensed to IPC US together with all support, maintenance, development, escrow and other agreements related thereto; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (C) | any Contract under which Indebtedness of IPC US is outstanding or may be incurred or pursuant to which any property or asset of IPC US is mortgaged, pledged or otherwise subject to a Lien, or any Contract restricting the incurrence of Indebtedness by IPC US or the incurrence of Liens on or the transfer of any properties of IPC US where the amount of such Indebtedness, mortgage, pledge or Lien exceeds $15,000;  |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | Contracts under which IPC US has directly or indirectly guaranteed indebtedness, liabilities or obligations (including the performance of any obligation) of any other person; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (E) | any Contract made outside the ordinary course of IPC US’s business and providing for the sale, purchase or exchange of, or option to sell, purchase or exchange, any property or asset where the sale price, purchase price or agreed value or fair value of such property exceeds $15,000; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (F) | drug development agreements, joint venture agreements, licence or commercial rate agreement, strategic alliance agreements or any similar agreement with any third party; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (G) | any Contract which is material to IPC US; |
|--------|-----|-------------------------------------------|

|   |   | (the Contracts described in clauses (A) through (G), together with all exhibits and schedules thereto and, collectively, with the IPC US Leases being, the “IPC US Material Contracts”).  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Except as has not and would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, neither IPC US nor, to the knowledge of IPC US, any of the other parties thereto, is in breach or violation of, or default (in each case, with or without notice or lapse of time or both) under, any IPC US Material Contract and IPC US has not (A) received or given any notice of default which remains uncured or (B) received or given any notice of cancellation or termination of any IPC US Material Contract.  To the knowledge of IPC US, there exists no state of facts which after notice or lapse of time or both would constitute a default or breach of a IPC US Material Contract or give rise to any right to cancel or terminate any IPC US Material Contract. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Restrictions on Business Activities.  Except as set out in Section 5.1(v) of the IPC Disclosure Letter, there is no agreement, judgment, injunction, order or decree or Law binding upon IPC US that purports to have, has or could reasonably be expected to have or (including following the transactions contemplated by this Agreement), the effect of prohibiting, restricting or impairing: (a) any business practice of IPC |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (w) | Permits.  To the knowledge of IPC US, IPC US has obtained and is in compliance with all Permits required by applicable Laws necessary to lease the IPC US Leased Real Property and conduct its businesses as it is now being conducted, other than where the absence of such Permits or the failure to comply would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | Employee Benefits. |
|--------|-----|--------------------|

|   | (i) | Section 5.1(x) of the IPC Disclosure Letter contains a list of all health, welfare, supplemental unemployment benefit, bonus, profit sharing, option, insurance, incentive, incentive compensation, deferred compensation, share purchase, share compensation, disability, pension or retirement plans and other material employee or director compensation or benefit plans, policies, trusts, funds, agreements or arrangements for the benefit of directors or former directors of IPC US, IPC US Employees or former IPC US Employees, which are maintained by or binding upon IPC US or in respect of which IPC US has any actual or potential liability (including the IPC US Stock Option Plan) (collectively, the “IPC US Plans”).  True, current and complete copies of the IPC US Plans have been made available to Vasogen. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 5.1(x) of the IPC Disclosure Letter also lists the general policies, procedures and work-related rules in effect with respect to employees of IPC US, including but not limited to policies regarding holiday, sick leave, vacation, disability and death benefits, termination and severance pay, automobile allowances and rights to company-provided automobiles and expense reimbursements (collectively, the “Other IPC US Plans”). |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | All of the IPC US Plans are and have been, to the extent necessary, established, registered, qualified and, in all material respects, administered in accordance with all applicable Laws, and in accordance with their terms and the terms of agreements between IPC US and any IPC US Employee and former IPC US Employee who are members of, or beneficiaries under, the IPC US Plans. |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | All current obligations of IPC US regarding the IPC US Plans and the Other IPC US Plans have been satisfied in all material respects.  All contributions, premiums or taxes required to be made or paid by IPC US under the terms of each IPC US Plan, each Other Plan or by applicable Laws in respect of the IPC US Plans and the Other IPC US Plans have been made in a timely |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (v) | All vacation pay for employees of IPC US is properly reflected and accrued in the books and accounts of IPC US. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (vi) | Except as set out in Section 4.1(x) of the IPC Disclosure Letter, since May 31, 2009, except in the ordinary course of business or as required by law and consistent with the IPC US’s past practices, there have been no material increases or decreases in staffing levels of IPC US and there have been no material changes in terms and conditions of employment of any employees of IPC US, including their salaries, remuneration and any other payments to them, and there have been no material changes in any remuneration payable or benefits provided to any officer, director, consultant, independent or dependent contractor or agent of IPC US, and IPC US has not agreed or otherwise become committed to change any of the foregoing since that date. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | IPC US is in compliance in all material respects with application health and safety legislation and regulations made pursuant thereto and there are no outstanding claims, investigations, prosecutions, charges or orders thereunder. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | IPC US is in compliance with applicable workers’ compensation laws and regulations made pursuant thereto and is up-to-date in its payment of all premiums and there are no outstanding assessments, levies or penalties thereunder. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | IPC US is up-to-date and in compliance with respect to all applicable employee and payroll deductions and remittances. |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (y) | Compliance with Laws.  IPC US has complied, in all material respects, with and is not, in any material respect, in violation of any applicable Laws.  None of IPC US or, to the knowledge of IPC US, any of its directors, executives, representatives, agents or employees (i) has used or is using any corporate funds for any illegal contributions, gifts, entertainment or other expenses relating to political activity that would be illegal, (ii) has used or is using any corporate funds for any direct or indirect illegal payments to any foreign or domestic governmental officials or employees, (iii) has established or maintained, or is maintaining, any illegal fund of corporate monies or other properties or (iv) has made any bribe, illegal rebate, illegal payoff, influence payment, kickback or other illegal payment of any nature. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (z) | Intellectual Property. |
|--------|-----|------------------------|

|   | (i) | IPC US owns all right, title and interest in and to, has licensed or is otherwise lawfully authorized to use all Intellectual Property that is material or |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | necessary to the conduct of IPC US’s business, as currently conducted, free and clear of any Liens other than the IPC Opco Permitted Encumbrances.  No royalties or fees (licenses or otherwise) are payable by IPC US to any Person by reason of the ownership or use of any Intellectual Property. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 5.1(z) of the IPC Disclosure Letter lists and identifies all Intellectual Property that is (A) owned by IPC US and that has been registered or applied for, (B) licensed by IPC US to a third party, or (C) licensed by a third party to IPC US.  All such Intellectual Property is sufficient for conducting the business, as currently conducted, of IPC US. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | To the knowledge of IPC US, all Intellectual Property owned and used by IPC US in the conduct of its business is valid, subsisting and enforceable (subject to the effects of bankruptcy, insolvency, reorganization, moratorium or laws relating to or affecting creditors’ rights generally) and, subject to the subsisting intellectual property policies of IPC US and consistent with past practice, IPC US has taken reasonable measures (A) to protect such Intellectual Property against infringement and misappropriation by third parties, and (B) to preserve, maintain and enforce IPC US’s rights in such Intellectual Property, and the validity and enforceability thereof and all such licenses are in full force and effect in accordance with the terms written therein and IPC US is not in default of any such license.  Subject to the subsisting intellectual property policies of IPC US and consistent with past practice, IPC US is up-to-date, in all material respects, with all material filings, payments and formalities required to be carried out in order to ensure that such Intellectual Property that is owned by IPC US is maintained in good standing and that IPC US has the recorded ownership of such Intellectual Property, and, to the knowledge of IPC US, there are no material defects in such formalities that would materially prevent the enforcement of such rights against third parties or result in the invalidity, loss, lapse, abandonment or expiration of such rights (other than Intellectual Property expiring at the end of its applicable statutory term). |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | IPC US has not received any claim, notice or threat in writing from any person (A) contesting the validity, enforceability, ownership or use of any Intellectual Property used by IPC US in the conduct of its business, or (B) claiming infringement, misappropriation or other conflict with the rights of any person arising from the operation or conduct of IPC US’s business as currently operated or conducted.  To the knowledge of IPC US, the operation or conduct of IPC US’s business does not infringe or misappropriate any Intellectual Property of any person.  To the knowledge of IPC US, no person is infringing or misappropriating any material Intellectual Property owned and used by IPC US in the conduct of its business. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (vi) | Subject to Section 5.1(f), no event will occur as a result of the transactions contemplated hereby that would render invalid or unenforceable any rights of IPC US in any material Intellectual Property held or used by IPC US in the conduct of its business.  |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | All computer hardware and its associated firmware and operating systems, application software, database engines, technology infrastructure and other computer systems used in connection with the conduct of the business, as currently conducted, of IPC US (collectively, the “IPC US Technology”) are reasonably sufficient for conducting the business, as currently conducted, of IPC US. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | IPC US owns, has leased or licensed or is otherwise lawfully authorized in respect of all IPC US Technology in such manner as to permit the use of same as used to date in the business of IPC US as currently conducted. |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | In the last twelve (12) months, IPC US has not experienced any material disruption, interruption, outage, bugs or breakdowns that have caused the substantial disruption or interruption in or to the use of the IPC US Technology in any material respect. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | All current and former employees, agents and independent contractors of IPC US who have materially contributed to or participated in the conception and development of any Intellectual Property used by IPC US in the conduct of its business (“IPC US IP Participant”) have executed and delivered to IPC US a proprietary information agreement, pursuant to which, inter alia, such IPC US IP Participant has, except as set out in Section 5.1(z) of the IPC Disclosure Letter (I) assigned or waived, as the case may be, all of his rights in such Intellectual Property to IPC US, and (II) agreed to keep confidential (except to the extent generally disclosed through no fault of the individual) such Intellectual Property.  No former or current IPC US IP Participant (A) has filed or in writing threatened any claim against IPC US related to any such Intellectual Property; or (B) to the knowledge of IPC US, has any registrations issued or applications pending for any Intellectual Property used or needed by IPC US which have not been assigned to IPC US. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | The transactions contemplated by this Agreement will not result in a default of, and to the knowledge of IPC US, no employee of IPC US is in default under, any term of any employment contract, non-competition arrangement or other agreement relating to any Intellectual Property owned and used by IPC US in the conduct of its business.  No employee, agent or independent contractor of IPC US, nor any third party (A) is entitled to compensation by IPC US for any development or exploitation of such Intellectual Property, other than pursuant to subsisting policies of IPC US, or (B) has been granted any right to develop or exploit any such Intellectual Property that is |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (xi) | IPC US has taken reasonable measures to protect and preserve the confidentiality of, all material confidential information, trade secrets, know how and other non-patented proprietary information of IPC US and to protect and preserve its rights to all copyrighted material, confidential information, trade secrets, know how and other non-proprietary information relating to the business of IPC US and developed or acquired by IPC US’s directors, officers, employees and consultants, including without limitation the procurement of proprietary invention assignments and non-disclosure and non-competition agreements from directors, officers, employees, consultants, subcontractors and other persons who have access to such information or materials. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xii) | IPC US has not received and is not aware of any written notice to IPC US, or to any person with or for which IPC US is currently developing any Products of IPC US, from the US FDA, Health Canada or other applicable Governmental Authority (including any regulatory body) in the world which could furnish a basis for the delay in approval, withdrawal, suspension, cancellation or non-renewal of any application, registration, license, permit or other governmental approval or consent of any applicable Governmental Authority issued to IPC US with respect to any component of any product being developed by, or that is material to and used by, IPC US or its Subsidiaries, other than as has been disclosed in the IPC Disclosure Letter. Neither the execution, delivery nor performance of this Agreement by IPC US will adversely affect the status of any of the Governmental Authorizations.  There have been no recalls required by any Governmental Entity of the Products of IPC US. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (xiii) | Without limiting the generality of the representations and warranties made in paragraph (xii) above, IPC US represents and warrants that, to its knowledge: (i) IPC US is in compliance in all material respects with all applicable provisions of the Food and Drugs Act (Canada) and the regulations thereunder relating to its products, product candidates and activities and to corresponding legislation and regulations in all other applicable jurisdictions, including without limitation, to those of the United States; (ii) all adverse events that were required to be reported by IPC US to Health Canada and to corresponding foreign Governmental Authorities (including any regulatory body), including the United States Food and Drug Administration, have been reported to Health Canada, and said corresponding foreign Governmental Authority (including any regulatory body) in a timely manner; and (iii) all stability studies required to be performed by or on behalf of IPC US for products used by IPC US have been completed or are ongoing in accordance with the applicable Governmental Authority (including any regulatory body), |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | including the United States, requirements and to the requirements of the applicable foreign jurisdictions; and (iv) all GMP (“good manufacturing practices”) requirements have been and continue to be complied with in the relevant jurisdictions in all material respects where IPC US is conducting activities and no written notice has been received by IPC US from any applicable Governmental Authority (including any regulatory body) that would require product recalls of its Products or that would affect any of its registrations or licenses or applications therefore in any material respect that has not been disclosed in the IPC Disclosure Letter. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (aa) | Insurance. |
|--------|------|------------|

|   | (i) | IPC US maintains policies or binders of insurance as are listed in  Section 5.1(aa) of the IPC Disclosure Letter. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Section 5.1(aa) of the IPC Disclosure Letter contains a description of all rights to indemnification now existing in favour of present or former officers and directors of IPC US that arise in connection with their serving as directors or officers of IPC US, except for any rights of indemnification that are included in IPC US’s Organizational Documents. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, IPC US is covered by valid and currently effective insurance policies issued in favour of IPC US that IPC US reasonably has determined to be commercially reasonable, taking into account the industries in which IPC US operates.  Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, with respect to each insurance policy issued in favour of IPC US or pursuant to which IPC US is a named insured or otherwise a beneficiary under an insurance policy: |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (A) | the policy is in full force and effect and all premiums due thereon have been paid; |
|--------|-----|-------------------------------------------------------------------------------------|

|   | (B) | IPC US is not in breach or default, and IPC US has not taken any action or failed to take any action which, with notice or the lapse of time, would constitute such a breach or default, or permit termination or modification of, any such policy; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | to the knowledge of IPC US, none of such policies will terminate or lapse by reason of the transactions contemplated by this Agreement; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (D) | no insurer under any such policy has cancelled or generally disclaimed liability under any such policy or indicated any intent to do so or not to renew any such policy; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (E) | except as set out in Section 5.1(aa) of the IPC Disclosure Letter, there is no claim by IPC US pending under any such policy that has been denied or disputed by the insurer. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (bb) | Environment. |
|--------|------|--------------|

|   | (i) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, to the knowledge of IPC US, IPC US is in compliance with all, and has not violated any, Environmental Laws; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, (A) IPC US has not Released, and, to the knowledge of IPC US, no other person has Released, any Hazardous Substances (in each case except in compliance with applicable Environmental Laws) on, at, in, under or from any real property previously owned, leased or occupied or currently leased by IPC US and (B), to the knowledge of IPC US, there are no Hazardous Substances or other conditions that could reasonably be expected to result in liability of or adversely affect IPC US under or related to any Environmental Law on, at, in, under or from any real property previously owned, leased or occupied, or currently leased by IPC US; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, there are no pending claims or, to the knowledge of IPC US, threatened claims, against IPC US arising out of any Environmental Laws; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | No Lien in favour of a Governmental Entity arising under Environmental Laws is pending or, to the knowledge of IPC US, threatened, affecting IPC US or any real property previously owned , leased or occupied or currently leased by IPC US, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | IPC US is not in possession of any material environmental assessments, reports, audits or other documents that relate to the current or past environmental condition of any real property previously owned, leased or occupied or currently leased by IPC US that would, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | The representations and warranties contained in this Section 5.1(bb) are the sole representations and warranties of IPC US relating to compliance with the Environmental Laws.  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (cc) | Employment Agreements. |
|--------|------|------------------------|

|   | (i) | Except as disclosed in Section 5.1(cc) of the IPC Disclosure Letter, IPC US is not a party to or bound or governed by: |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (A) | any agreement with any current or former director of IPC US, any officer of IPC US or any other current or former employee providing for payments in excess of $50,000 annually (excluding commissions and bonuses); |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (B) | any change of control agreement with any director, officer or employee or any written or, to the knowledge of IPC US, oral agreement, arrangement or understanding providing for an existing retention, severance or termination compensation or benefits to any director, officer or employee; or |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (C) | any collective bargaining or union agreement. |
|--------|-----|-----------------------------------------------|

|   |   | IPC US has made available to Vasogen current, correct and complete copies (or descriptions, where applicable) of the Contracts referred to in clauses (A) and (B) of this Section 5.1(cc)(i).  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | There are no existing or, to the knowledge of IPC US, threatened labour disputes, strikes, lock-outs, employee grievances, controversies or other labour troubles affecting IPC US or its business. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | There are no existing or, to the knowledge of IPC US, threatened applications for certification, voluntary recognition, related employer, successor employer or union bargaining rights in respect of IPC US.  IPC US is not currently conducting negotiations with any labour union or employee association and to the knowledge of IPC US, during the period of three years preceding the date of this Agreement there has been no attempt to organize, certify or establish any labour union or employee association in relation to any of the employees of IPC US. |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (dd) | Vote Required. |
|--------|------|----------------|

|   | (i) | The only vote of holders of securities of IPC US necessary to approve the performance by IPC US of its obligations set out in this Agreement and in the Merger Agreement is the IPC US Required Vote. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | Except as set out in Section 5.1(dd)(ii) of the IPC Disclosure Letter, there are no shareholders agreements, registration rights agreements, voting trusts, proxies or similar agreements, arrangements or commitments to which IPC US is a party or, to the knowledge of IPC US, with respect to any shares or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | other equity interests of IPC US or any other Contract relating to disposition, voting or dividends with respect to any equity securities of IPC US. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ee) | Brokers.  Except as set out in Section 5.1(ee) of the IPC Disclosure Letter, no  broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission from, or to the reimbursement of any of its expenses by, IPC US in connection with this Agreement, the Arrangement, the Merger Agreement or the Merger. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | IPC Opco shall perform in all material respects its obligations under all Contracts, maintain its books of account and records in the ordinary course of business and comply in all material respects with all Laws applicable to IPC Opco and to the conduct of its business; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | IPC Opco shall not, directly or indirectly: (i) amend the IPC Opco Organizational Documents; (ii) split or reclassify any IPC Opco Shares, or declare, set aside or pay any dividend or other distribution or payment (whether in cash, shares or property) in respect of the IPC Opco Shares; (iii) adjust, split, combine or reclassify its shares; (iv) issue, grant, sell or permit a Lien to be created on, or agree to issue, grant, sell or cause or permit a Lien to be created on, any IPC Opco Shares or options or other rights to acquire IPC Opco Shares; (v) redeem, purchase or otherwise acquire, or offer to redeem, purchase or otherwise acquire, or subject to a Lien any of its outstanding securities; (vi) amend or modify the terms of any of its securities; (vii) |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | reduce its stated capital; (viii) adopt a plan of liquidation or resolution providing for the liquidation or dissolution of IPC Opco; (ix) amend its accounting policies or adopt new accounting policies in respect of Taxes or otherwise, in each case except as required in accordance with Canadian generally accepted accounting principles; (x) make or change any material Tax election, settle or compromise any material Tax liability, file any Tax Return that amends a previously filed Tax Return or surrender any right to claim a material Tax Refund; (xi) authorize or propose any of the foregoing, or enter into, modify or terminate any IPC Opco Material Contract with respect to any of the foregoing; (xii) assign, transfer, license or sublicense any Intellectual Property;  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | IPC US shall not, directly or indirectly: (i) amend the IPC US Organizational Documents; (ii) split or reclassify any IPC US Shares, or declare, set aside or pay any dividend or other distribution or payment (whether in cash, shares or property) in respect of the IPC US Shares; (iii) adjust, split, combine or reclassify its shares; (iv) issue, grant, sell or permit a Lien to be created on, or agree to issue, grant, sell or cause or permit a Lien to be created on, any IPC US Shares or options or other rights to acquire IPC US Shares, other than the issuance of IPC US Shares issuable pursuant to the terms of the IPC US Options outstanding on the date of this Agreement; (v) redeem, purchase or otherwise acquire, or offer to redeem, purchase or otherwise acquire, or subject to a Lien any of its outstanding securities; (vi) amend or modify the terms of any of its securities; (vii) reduce its stated capital; (viii) adopt a plan of liquidation or resolution providing for the liquidation or dissolution of IPC US; (ix) amend its accounting policies or adopt new accounting policies in respect of Taxes or otherwise, in each case except as required in accordance with US generally accepted accounting principles; (x) make or change any material Tax election, settle or compromise any material Tax liability, file any Tax Return that amends a previously filed Tax Return or surrender any right to claim a material Tax Refund; (xi) authorize or propose any of the foregoing, or enter into, modify or terminate any IPC US Material Contract with respect to any of the foregoing; (xii) assign, transfer, license or sublicense any Intellectual Property; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | IPC Opco and IPC US shall not, directly or indirectly, except, in the case of clauses (i), (iii) and (v) below (and, to the extent that it relates to the foregoing clauses, clause (vii) below), in the ordinary course of business consistent with past practice: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | other than in respect of the IPC Bridge Loan, sell, pledge, lease, license, dispose of or cause or permit a Lien to be created on any of its assets; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | reorganize, amalgamate or merge with any other person; |
|--------|------|--------------------------------------------------------|

|   | (iii) | acquire (by merger, amalgamation, consolidation or acquisition of shares or assets or otherwise) any corporation, partnership or other business organization or division thereof or any property or asset, or make any investment either by the purchase of securities, contributions of capital, |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | property transfer, or purchase of any property or assets of any other person, or enter into or extend any option to acquire, or exercise an option to acquire, any property, if any of the foregoing would reasonably be expected to be material to Vasogen;  |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | other than in respect of the IPC Bridge Loan, issue any debt securities or assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any other person, or make any loans or advances in excess of $20,000 individually or $50,000 in the aggregate, provided that Vasogen agrees that IPC Opco may (without Vasogen’s consent) incur Indebtedness for operating purposes of up to $1,000,000, and issue debt securities in respect thereof, to Dr. Isa Odidi, Dr. Amina Odidi and/or any Person related to either of them on terms consistent with those contained in the Shareholder Note; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | make or commit to make capital expenditures or charitable contributions; |
|--------|-----|--------------------------------------------------------------------------|

|   | (vi) | pay, discharge or satisfy any material claims, liabilities or obligations other than the payment, discharge of satisfaction of liabilities reflected or reserved against in the IPC US Financial Statements or liabilities incurred since December 31, 2008 in the ordinary course of business or otherwise fulfill its obligations under this Agreement including the payment of all transaction costs associated with this Agreement; or |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | waive, release, grant or transfer any rights of material value other than as permitted by Section 6.1(d); |
|--------|-------|----------------------------------------------------------------------------------------------------------------|

|   | (e) | other than as is necessary to comply with the IPC Opco Plans or the IPC US Plans or Contracts or as set forth in Section 6.1(e) of the IPC Disclosure Letter or as agreed in writing with Vasogen, IPC Opco and IPC US shall not (i) grant an increase in compensation in any form to any director or officer of IPC Opco or IPC US; (ii) take any action with respect to the grant of any change of control, severance or termination pay to any IPC Opco  Employee or any IPC US Employee; (iii) enter into any employment agreement with any officer of IPC Opco or IPC US; (iv) increase any benefits payable under its current change of control, severance or termination pay policies; or (v) adopt or materially amend any IPC Opco Plan or any IPC US Plan; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | IPC Opco and IPC US shall not make any loans, advances or capital contributions to, or investments in or guarantee to any other person, or make any loans to any director or officer of IPC US or IPC Opco; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | IPC Opco and IPC US shall not waive, release, assign, settle or compromise any material IPC Opco Legal Action or IPC US Legal Action other than in the ordinary course of business consistent with past practice; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (h) | IPC Opco and IPC US shall use its commercially reasonable efforts to cause the current insurance (or re-insurance) policies maintained by IPC Opco or IPC US, including directors’ and officers’ insurance, not to be cancelled or terminated and to prevent any of the coverage thereunder from lapsing, unless simultaneously with such termination, cancellation or lapse, replacement policies underwritten by insurance or re-insurance companies of nationally recognized standing having comparable deductions and providing coverage equal to or greater than the coverage under the cancelled, terminated or lapsed policies for substantially similar premiums are in full force and effect: provided that IPC Opco and IPC US shall not place or renew any insurance (or re-insurance) policy for a term exceeding 12 months; and  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | IPC Opco and IPC US shall not enter into or amend any Contract with any broker, finder or investment banker as contemplated in Section 4.1(dd) and Section 5.1(ee). |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Vasogen shall perform in all material respects its obligations under all Contracts, maintain its books of account and records in the ordinary course of business and comply in all material respects with all Laws applicable to Vasogen and to the conduct of its business; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Vasogen shall not, directly or indirectly: (i) amend the Vasogen Organizational Documents; (ii) split or reclassify any Vasogen Shares, or declare, set aside or pay any dividend or other distribution or payment (whether in cash, shares or property) in respect of the Vasogen Shares; (iii) adjust, split, combine or reclassify its shares; (iv) issue, grant, sell or permit a Lien to be created on, or agree to issue, grant, sell or cause or permit a Lien to be created on, any Vasogen Shares or options or other rights to acquire Vasogen Shares, other than the issuance of Vasogen Shares issuable pursuant to the terms of the Vasogen Options outstanding on the date of this Agreement; (v) redeem, purchase or otherwise acquire, or offer to redeem, purchase or otherwise acquire, or subject to a Lien any of its outstanding securities; (vi) amend or modify the terms of any of its securities; (vii) reduce its stated capital; (viii) adopt a plan of liquidation or resolution providing for the liquidation or dissolution of Vasogen; (ix) amend its accounting policies or adopt new accounting policies in respect of Taxes or otherwise, in each case except as required in accordance with |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | generally accepted accounting principles; (x) make or change any material Tax election, settle or compromise any material Tax liability, file any Tax Return that amends a previously filed Tax Return or surrender any right to claim a material Tax Refund; (xi) authorize or propose any of the foregoing, or enter into, modify or terminate any Vasogen Material Contract with respect to any of the foregoing; (xii) assign, transfer, license or sublicense any Intellectual Property;  |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Vasogen shall not, directly or indirectly, except, in the case of clauses (i),  (iii) and (v) below (and, to the extent that it relates to the foregoing clauses, clause (vii) below), in the ordinary course of business consistent with past practice: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | sell, pledge, lease, license, dispose of or cause or permit a Lien to be created on any of its assets; |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (ii) | reorganize, amalgamate or merge with any other person; |
|--------|------|--------------------------------------------------------|

|   | (iii) | acquire (by merger, amalgamation, consolidation or acquisition of shares or assets or otherwise) any corporation, partnership or other business organization or division thereof or any property or asset, or make any investment either by the purchase of securities, contributions of capital, property transfer, or purchase of any property or assets of any other person, or enter into or extend any option to acquire, or exercise an option to acquire, any property, if any of the foregoing would reasonably be expected to be material to the IPC Companies; |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | other than in respect of the IPC Bridge Loan, incur any Indebtedness or issue any debt securities or assume, guarantee, endorse or otherwise as an accommodation become responsible for the obligations of any other person, or make any loans or advances in excess of $20,000 individually or $50,000 in the aggregate; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | make or commit to make capital expenditures or charitable contributions; |
|--------|-----|--------------------------------------------------------------------------|

|   | (vi) | pay, discharge or satisfy any material claims, liabilities or obligations other than the payment, discharge of satisfaction of liabilities reflected or reserved against in the Vasogen Financial Statements or otherwise fulfill its obligations under this Agreement including the payment of all transaction costs associated with this Agreement; or |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vii) | waive, release, grant or transfer any rights of material value other than as permitted by Section 6.2(c); |
|--------|-------|----------------------------------------------------------------------------------------------------------------|

|   | (d) | other than as is necessary to comply with the Vasogen Plans or Contracts or as set forth in Section 6.2(d) of the Vasogen Disclosure Letter or as agreed in writing with Vasogen, Vasogen shall not (i) grant an increase in compensation in any form to any |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | director or officer of Vasogen; (ii) take any action with respect to the grant of any change of control, severance or termination pay to any Vasogen Employee; (iii) enter into any employment agreement with any officer of Vasogen; (iv) increase any benefits payable under its current change of control, severance or termination pay policies; or (v) adopt or materially amend any Vasogen Plan;  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Vasogen shall not make any loans, advances or capital contributions to, or investments in, or guarantees to any other person, or make any loans to any director or officer of Vasogen; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Vasogen shall not waive, release, assign, settle or compromise any material Vasogen Legal Action other than in the ordinary course of business consistent with past practice; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Vasogen shall use its commercially reasonable efforts to cause the current insurance (or re-insurance) policies maintained by Vasogen, including directors’ and officers’ insurance, not to be cancelled or terminated and to prevent any of the coverage thereunder from lapsing, unless simultaneously with such termination, cancellation or lapse, replacement policies underwritten by insurance or re-insurance companies of nationally recognized standing having comparable deductions and providing coverage equal to or greater than the coverage under the cancelled, terminated or lapsed policies for substantially similar premiums are in full force and effect: provided that Vasogen shall not place or renew any insurance (or re-insurance) policy for a term exceeding 12 months; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | Vasogen shall not enter into or amend any Contract with any broker, finder or investment banker as contemplated in Section 3.1(ee). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | use all commercially reasonable efforts to obtain all necessary waivers, consents and approvals (other than any Regulatory Approval) required to be obtained by Vasogen in connection with the Arrangement from other parties to the Contracts; notwithstanding anything to the contrary in this Agreement, in connection with obtaining any such approval or consent from any person (other than a Governmental Entity) with respect to any transaction contemplated by this Agreement; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | apply for and use all commercially reasonable efforts to obtain, and use all commercially reasonable efforts to assist the IPC Companies to obtain, all |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | Regulatory Approvals relating to Vasogen and, in doing so, keep the IPC Companies reasonably informed as to the status of the proceedings related to obtaining the Regulatory Approvals, including providing the IPC Companies with copies of all related applications and notifications, in draft form, in order for the IPC Companies to provide its reasonable comments thereon;  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | defend all lawsuits or other legal, regulatory or other proceedings against Vasogen challenging or affecting this Agreement, the Arrangement or the consummation of the other transactions contemplated hereby; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | pay any requisite filing fees and applicable taxes in relation to any filing or application made in respect of the Regulatory Approvals relating to Vasogen; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | use its commercially reasonable efforts to effect all necessary registrations, filings and submissions of information required by Governmental Entities from each of the IPC Companies or any of its affiliates relating to the Arrangement; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | use its commercially reasonable efforts to take all actions necessary to consummate and to effect all necessary registration filings and submissions required by Governmental Entities relating to the IPC US Merger Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | use all commercially reasonable efforts to obtain all necessary waivers, consents and approvals (other than any Regulatory Approval) required to be obtained by any IPC Company in connection with the Arrangement from other parties to the Contracts; notwithstanding anything to the contrary in this Agreement, in connection with obtaining any such approval or consent from any person (other than a Governmental Entity) with respect to any transaction contemplated by this Agreement; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | apply for and use all commercially reasonable efforts to obtain, and use all commercially reasonable efforts to assist Vasogen to obtain, all Regulatory Approvals relating to any IPC Company and, in doing so, keep Vasogen reasonably informed as to the status of the proceedings related to obtaining the Regulatory Approvals, including providing Vasogen with copies of all related applications and notifications, in draft form, in order for the Vasogen to provide its reasonable comments thereon; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | pay any requisite filing fees and applicable taxes in relation to any filing or application made in respect of the Regulatory Approvals relating to any IPC Company; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | use its commercially reasonable efforts to effect all necessary registrations, filings and submissions of information required by Governmental Entities from each of the IPC Companies or any of its affiliates relating to the Arrangement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | defend all lawsuits or other legal, regulatory or other proceedings against it challenging or affecting this Agreement or the consummation of the transactions contemplated hereby; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | use its commercially reasonable efforts to take all actions necessary to consummate and to effect all necessary registration filings and submissions required by Governmental Entities relating to the IPC US Merger Agreement; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | use its commercially reasonable efforts to obtain voting agreements, as set out substantially in the form and content of Schedule C hereto (the “Voting Agreements”) from shareholders of IPC US representing up to 60% of the IPC US Common Shares to the extent that less than such number have been delivered to Vasogen prior to the signing of this Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | it shall use commercially reasonable efforts to satisfy (or cause the satisfaction of) the conditions precedent as set forth in Article 7 to the extent the same is within its control and to take, or cause to be taken, all other action and to do, or cause to be done, all other things necessary, proper or advisable under all applicable Laws to consummate the Arrangement, including using its commercially reasonable efforts to: (i) oppose, lift or rescind any injunction or restraining order against it or other order or action against it seeking to stop, or otherwise adversely affecting its ability to make and complete, the Arrangement; and (ii) co-operate with the other Party in connection with the performance by it of its obligations hereunder; and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | it shall not take any action, refrain from taking any commercially reasonable action, or permit any action to be taken or commercially reasonable action to not be taken, which is inconsistent with this Agreement or which would reasonably be expected to significantly impede the consummation of the Arrangement or to prevent or materially delay the consummation of the transactions contemplated hereby, in each case, except as permitted by this Agreement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | the Arrangement shall have been approved at the Vasogen Meeting by not less than the Required Vote and in accordance with any additional conditions which may be imposed by the Interim Order; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the Merger Agreement shall have received all necessary approvals and the transactions contemplated thereby have been completed prior to or with effect as of or immediately following the Effective Time; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | the Interim Order and the Final Order shall each have been obtained in form and on terms reasonably satisfactory to each of the Parties, and shall not have been set aside or modified in a manner unacceptable to such parties, acting reasonably, on appeal or otherwise; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | all requisite domestic and foreign regulatory approvals and consents, including, without limitation, those of any stock exchanges, securities regulatory authorities or antitrust authorities, shall have been obtained on terms and conditions satisfactory to Vasogen, IPC Opco and IPC US, acting reasonably, and all applicable domestic and foreign statutory or regulatory waiting periods, including the waiting period under the United States Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, if applicable to the transactions contemplated under the Arrangement and the Merger, shall have expired or been terminated, and no objection or opposition shall have been filed, initiated or made during any applicable statutory or regulatory period; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | no Governmental Entity shall have enacted, issued, promulgated, applied for (or advised either any Vasogen Company or any IPC Company in writing that it has determined to make such application), enforced or entered any Law (whether temporary, preliminary or permanent) that restrains, enjoins or otherwise prohibits, or which would give rise to any right to damages or other remedy as a result of, the consummation of the transactions contemplated by this Agreement or the Merger Agreement or dissolves the Arrangement or the Merger, and no Legal Action in which any of the foregoing is sought shall be pending; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Dissent Rights shall not have been exercised with respect  to more than five percent (5%) of the Vasogen Shares, in the aggregate, in connection with the Arrangement; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (g) | Appraisal Rights shall not have been exercised with respect to more than three percent (3%) of the IPC US Shares, in the aggregate, in connection with the Merger; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | this Agreement shall not have been terminated in accordance with its terms; and |
|--------|-----|---------------------------------------------------------------------------------|

|   | (i) | the common shares of the corporation resulting from the combination of the business of Vasogen and IPC as contemplated in the Arrangement and the Merger, the common shares of such corporation to be issued upon the exercise of options and warrants resulting from the existing options and warrants of Vaosgen and IPC US, shall be approved for listing on the TSX Venture Exchange (unless such corporation has obtained approval to list on the Toronto Stock Exchange) and application shall have been made to have such common shares of Vasogen quoted on the Over-The-Counter Bulletin Board pending only delisting of common shares of Vasogen from Nasdaq and approval of a market maker in respect of such common shares on the Over-The-Counter Bulletin Board (unless such corporation has obtained approval to retain Vasogen’s quotation on Nasdaq). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all covenants of Vasogen under this Agreement to be performed on or before the Effective Time shall have been duly performed by Vasogen in all material respects, and IPC Opco shall have received a certificate of Vasogen addressed to the IPC Companies and dated the Effective Time, signed on behalf of Vasogen by two senior officers of Vasogen (on Vasogen’s behalf and without personal liability), confirming the same as at the Effective Time; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the representations and warranties of Vasogen set forth in this Agreement shall be true and correct in all respects, without regard to any materiality or Material Adverse Effect or other materiality qualifications contained in them, as of the Effective Time, as though made on and as of the Effective Time (except for representations and warranties made as of a specified date, the accuracy of which shall be determined as of that specified date), except where the failure or failures of all such representations and warranties to be so true and correct in all respects has not and would not reasonably be expected to have a Material Adverse Effect.  In addition, the representations and warranties set out in Sections 3.1(a), 3.1(b), 3.1(c), 3.1(d) and 3.1(f) shall be true and correct in all respects. The IPC Companies shall have received a certificate of Vasogen addressed to the IPC Companies and dated the Effective Time, signed on behalf of Vasogen by two senior officers of Vasogen (on Vasogen’s behalf and without personal liability), confirming the above as at the Effective Time; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (c) | between the date hereof and the Effective Time, there shall not have occurred or have been disclosed to the public if previously undisclosed to the public or any IPC Company, a Material Adverse Effect with respect to Vasogen or any event or occurrence that would reasonably be expected to have a Material Adverse Effect;  |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Vasogen shall have, prior to the Effective Date (i) terminated each of the Vasogen Leases and the Vasogen Material Contracts listed in Schedule J hereto and in respect of only the contracts listed on Part B of Schedule J Vasogen shall have used reasonable efforts to obtain full and final releases from the applicable landlords and counterparties in form and substance satisfactory to the IPC Companies (acting reasonably), and (ii) in respect of all contracts listed in Schedule J, delivered to the IPC Companies copies of any such terminations and, to the extent applicable any releases received; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | the Vasogen Companies have Net Cash, at the Effective Time, after giving effect to the Arrangement and determined in accordance with Section 2.9, of (i) at least $10,000,000 in the event the transactions contemplated in the Cervus Agreements are completed as part of the Arrangement; or (ii) at least $4,000,000 in the event the transactions contemplated in the Cervus Agreements are not completed as part of the Arrangement; and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | all the required approvals and consents listed on Schedule G attached hereto shall have been obtained by Vasogen to the reasonable satisfaction of the IPC Companies or waived by IPC Opco on behalf of all of the IPC Companies. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | all covenants of IPC Opco under this Agreement to be performed on or before the Effective Time shall have been duly performed by IPC Opco in all material respects, and Vasogen shall have received a certificate of IPC Opco, addressed to Vasogen and dated the Effective Time, signed on behalf of IPC Opco by two of its senior officers (on IPC Opco’s behalf and without personal liability), confirming the same as of the Effective Time; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | the representations and warranties of IPC Opco set forth in this Agreement shall be true and correct in all respects, without regard to any materiality or other materiality qualifications contained in them, as of the Effective Time, as though made on and as of the Effective Time (except for representations and warranties made as of a specified date, the accuracy of which shall be determined as of that specified date), except (A) in respect of Section 4.1(f)(i) that up to 1,700,000 of  IPC US Common Shares may have been issued at a price not less than the value of such shares in |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | relation to the Arrangement and such monies may have been provided by IPC US to IPC Opco for common shares of IPC Opco, all of which will be subject to the transactions comprising the Arrangement, on the same terms as are applicable to other common shares in each company, and (B) where the failure or failures of all such representations and warranties of IPC Opco to be so true and correct in all respects has not or would not reasonably be expected to have a Material Adverse Effect.  In addition, the representations and warranties set out in Sections 4.1(a), 4.1(b), 4.1(c) and 4.1(e) shall be true and correct in all respects. Vasogen shall have received a certificate of IPC Opco, addressed to Vasogen and dated the Effective Time, signed on behalf of IPC Opco by two senior officers of IPC Opco (on IPC Opco’s behalf and without personal liability), confirming the above as of the Effective Time;  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | all covenants of IPC US under this Agreement to be performed on or before the Effective Time shall have been duly performed by  IPC US in all material respects, and Vasogen shall have received a certificate of IPC US, addressed to Vasogen and dated the Effective Time, signed on behalf of IPC US by two of its senior officers (on IPC US’s behalf and without personal liability), confirming the same as of the Effective Time; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | the representations and warranties of IPC US set forth in this Agreement shall be true and correct in all respects, without regard to any materiality or other materiality qualifications contained in them, as of the Effective Time, as though made on and as of the Effective Time (except for representations and warranties made as of a specified date, the accuracy of which shall be determined as of that specified date), except (A) in respect of Section 5.1(g)(i) that up to 1,700,000 of  IPC US Common Shares may have been issued at a price not less than the value of such shares in relation to the Arrangement and such monies may have been provided by IPC US to IPC Opco for common shares of IPC Opco, all of which will be subject to the transactions comprising the Arrangement, on the same terms as are applicable to other common shares in each company, and (B) where the failure or failures of all such representations and warranties of IPC US to be so true and correct in all respects has not or would not reasonably be expected to have a Material Adverse Effect.  In addition, the representations and warranties set out in Sections 5.1(a), 5.1(b), 5.1(c), 5.1(d) and 5.1(f) shall be true and correct in all respects. Vasogen shall have received a certificate of IPC US, addressed to Vasogen and dated the Effective Time, signed on behalf of IPC US by two senior officers of IPC US (on IPC US’s behalf and without personal liability), confirming the above as of the Effective Time; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | IntelliPharmaCeutics Inc. shall have, prior to the Effective Date, changed its corporate name to a name that does not include the word “IntelliPharmaCeutics” or any variation thereof that is confusingly similar to the name of IPC Opco or IPC US; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | the accrued liabilities, accounts payable and any other indebtedness of IPC US and IPC Opco (the “IPC Current Liabilities”) as of the Effective Date determined in |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | accordance with Section 2.9 shall not (except in respect of the IPC Bridge Loan) exceed the sum of: |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | (i) | U.S. $2,000,000; and |
|--------|-----|----------------------|

|   | (ii) | an amount equal to the lesser of: (x) $750,000; and (y) any liabilities, accounts payable or other indebtedness incurred by IPC Opco and/or IPC US since December 31, 2008 in connection with efforts to further develop drug products, such as expenditures in respect of a specific drug product or project related thereto and, for greater certainty, will exclude any liabilities or expenses incurred or related to the transactions contemplated by this Agreement); |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | the promissory note dated September 10, 2004 issued by IPC Opco to Isa Odidi and Amina Odidi (the “Shareholder Note”) shall have been amended to provide that the principal amount thereof shall be payable when payment is required solely out of (i) revenues earned by IPC Opco following the Effective Date and/or proceeds received by an IPC Company from any offering of its securities following the Effective Date and/or amounts received by IPC Opco for the scientific research tax credits received after the Effective Date for research expenses of IPC Opco incurred before the Effective Date and/or (ii) up to $1,000,000 from the Net Cash of the Vasogen Companies in the event the transactions contemplated in the Cervus Agreements are completed as part of the Arrangement; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | all the required approvals and consents listed in Schedule H hereto shall have been obtained by the applicable IPC Company to the reasonable satisfaction of Vasogen or waived by Vasogen. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (a) | cause any of the representations or warranties of any Party contained herein to be untrue or inaccurate in any material respect on the date hereof or at the Effective Time; or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | result in the failure to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by any Party hereunder prior to the Effective Time. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | furnish information with respect to Vasogen to the Person making such Acquisition Proposal; and/or |
|--------|-----|----------------------------------------------------------------------------------------------------|

|   | (b) | enter into, participate, facilitate and maintain discussions or negotiations with, and otherwise cooperate with or assist, the Person making such Acquisition Proposal, |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | (a) | Vasogen has complied with its obligations under the other provisions of this Article 8 and has provided the IPC Companies with a copy of the Superior Proposal; and |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | a period (the “Response Period”) of five (5) Business Days shall have elapsed from the date on which the IPC Companies received written notice from the Vasogen Board that the Vasogen Board has determined, subject only to compliance with this Section 8.3, to effect a Change of Recommendation. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | (a) | if the Effective Time has not occurred on or prior to the Outside Date, except that the right to terminate this Agreement under this clause (a) shall not be available to any party to this Agreement whose failure to fulfill any of its obligations has been a principal cause of, or resulted in, the failure of the Effective Time to occur by such date; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if the Vasogen Meeting is held and the Required Vote is not obtained at the Vasogen Meeting (or any adjournment or postponement thereof); |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | if the IPC US Meeting is held and the IPC US Required Vote is not obtained at the IPC US Meeting (or any adjournment or postponement thereof); or |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | if any applicable Law makes the consummation of the Arrangement or the transactions contemplated by this Agreement illegal or otherwise prohibited, and such Law has become final and non-appealable. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if a Change of Recommendation has occurred; or |
|--------|-----|------------------------------------------------|

|   | (b) | if there has been a breach of or failure to perform any representation, warranty, covenant or agreement on the part of Vasogen set forth in this Agreement, which breach or failure to perform (i) would cause the conditions set forth in Section 7.2(a) |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | or Section 7.2(b) not to be satisfied and (ii) is incapable of being cured or, if curable, is not cured in accordance with Section 8.1. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | if Vasogen publicly proposes to or does enter into a Contract with respect to a Superior Proposal in compliance with the provisions of Section 8.2; or |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | if there has been a breach of or failure to perform any representation, warranty, covenant or agreement on the part of any IPC Company set forth in this Agreement, which breach or failure to perform (i) would cause the conditions set forth in Section 7.3(a), (b), (c) and (d) not to be satisfied and (ii) is incapable of being cured or, if curable, is not cured in accordance with Section 8.1. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | change the time for performance of any of the obligations or acts of the Parties; |
|--------|-----|-----------------------------------------------------------------------------------|

|   | (b) | waive any inaccuracies or modify any representation or warranty contained herein or in any document delivered pursuant hereto; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | waive compliance with or modify any of the covenants herein contained and waive or modify performance of any of the obligations of the Parties; and/or |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | waive compliance with or modify any conditions precedent herein contained. |
|--------|-----|----------------------------------------------------------------------------|

----

|   | (a) | if to IPC Opco or IPC US: |
|--------|-----|---------------------------|

|                                                      | 30 Worchester RoadToronto, OntarioM9W 5X2                                                                                                                              |
|-----------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                      |                                                                                                                                                                   |
|                                                      |  Attention: Dr. Isa OdidiFacsimile: 416-798-3007E-mail:  iodidi@intellipharmaceutics.com                                                                |
|                                                      |                                                                                                                                                                   |
|  with a copy (which shall not constitute notice) to: |
|                                                      |                                                                                                                                                                   |
|                                                      |  Gowling Lafleur Henderson LLP1 First Canadian Place100 King Street West, Suite 1600Toronto, OntarioCanada        M5X 1G5 |
|                                                      |                                                                                                                                                                   |
|                                                      | Attention: Christopher J. BardsleyFacsimile: (416) 369-7227E-mail:  christopher.bardsley@gowlings.com                                                        |
|                                                      |                                                                                                                                                                   |

----

|   |   | if to Vasogen: |
|--------|--------|----------------|

|                                                              | Vasogen Inc.c/o McCarthy Tétrault LLPSuite 5300Toronto Dominion Bank TowerToronto, Ontario, Canada M5K 1E6 |
|-------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------|
|                                                              |                                                                                                            |
|                                                              | Attention:  Chris WaddickFacsimile: (905) 569-9231E-mail: cwaddick@Vasogen.com                        |
|                                                              |                                                                                                            |
|  with a copy to (which shall not constitute notice): and to: |
|                                                              |                                                                                                            |
|                                                              | McCarthy Tétrault LLPSuite 5300Toronto Dominion Bank TowerToronto, Ontario, Canada M5K 1E6                 |
|                                                              |                                                                                                            |
|                                                              | Attention: W. Ian PalmTelephone: (416) 601-7382Facsimile: (416) 868-0673E-mail: ipalm@ mccarthy.ca              |

----

----

| VASOGEN INC.                |
|----------------------------------|
| By:                    | /s/ Chris Waddick |
|                             | Name: Chris Waddick |
|                             | Title: President/CEO |
|                             |   |
|                             |   |
| INTELLIPHARMACEUTICS CORP.  |
| By:                    | /s/ Isa Odidi |
|                             | Name: Isa Odidi |
|                             | Title: Chairman/CEO |
|                             |   |
|                             |   |
| INTELLIPHARMACEUTICS LTD.   |
| By:                    | /s/ Amina Odidi |
|                             | Name: Amina Odidi |
|                             | Title: COO/President |
|                             |   |
|                             |   |

----

----