Converted by EDGARwiz



“CONFIDENTIAL
TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED
AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS
BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS, WHICH ARE IDENTIFIED BY
***.”

TABLE
OF CONTENTS




Page




ARTICLE
I DEFINITIONS 

1

ARTICLE
II PURCHASE AND ASSIGNMENT OF RIGHTS 

6

Section
2.01 Purchase and Assignment 

6

Section
2.02 Additional Purchase Price

7

Section
2.03 Antibody B Option

8

Section
2.04 Excluded Liabilities and Obligations

.




ARTICLE
III REPRESENTATIONS AND WARRANTIES OF SELLER

8

Section
3.01 Corporate Existence and Power

8

Section
3.02 Corporate Authorization 

8

Section
3.03 Governmental Authorization

9

Section
3.04 Non-Contravention 

9

Section
3.05 No Undisclosed Liabilities

9

Section
3.06 Litigation

9

Section
3.07 Compliance with Laws 

9

Section
3.08 Title; Absence of Liens; Subordination 

9

Section
3.09 InNexus Internal Agreements

10

Section
3.10 IP

10

Section
3.11 Finders’ Fees 

12

Section
3.12 Disclosures

12




ARTICLE
IV REPRESENTATIONS AND WARRANTIES OF BUYER

12

			
	
Section
4.01
	Organization and Existence
	
12

	
Section
4.02
	Corporate Authorization 
	
12

	Section
4.03
	Governmental Authorization
	
12



		
	
Section 4.04
Non-Contravention 
	
12

	Section 4.05 Finders’ Fees 
	
13

	
Section 4.06 Litigation
	
13



ARTICLE
V CONDITIONS TO CLOSING

13

			
	
Section
5.01
	Conditions to each Party’s Obligations
	
13

	
Section
5.02
	Conditions to Buyer’s Obligations 
	
13

	
Section
5.03
	Conditions to Seller’s Obligations
	
14



ARTICLE
VI COVENANTS 

14

Section
6.01 Closing

14

Section
6.02 Use of Proceeds

15











			
	
Section
7.01
	Survival of Obligations
	
15

	
Section
7.02
	Indemnification 
	
15

	
Section
7.03
	Procedures; No Waiver
	
15



ARTICLE
VIII MISCELLANEOUS 

16

Section
8.01 Public Announcement; Terms of this Agreement 

16

Section
8.02 Further Assurances 

16

Section
8.03 Specific Performance

16

Section
8.04 Notices 

16

Section
8.05 Amendments; No Waivers

18

Section
8.06 Expenses 

18

Section
8.07 Successors and Assigns

18

Section
8.08 Governing Law; Jurisdiction

18

Section
8.09 Waiver of Jury Trial

18

Section
8.10 Counterparts; Effectiveness 

18

Section
8.11 Entire Agreement

19

Section
8.12 Severability 

19

Section
8.13 Relationship of the Parties 

19

Section
8.14 Captions 

19

Section
8.15 Certain Interpretations

19




Exhibits




Exhibit
A

Initial
Program

Exhibit
B

InNexus
License Agreement

Exhibit
C

Subscription
Agreement

Exhibit
D

Seller’s
Bank Account

Exhibit
E

Parent
Agreement

Exhibit
F

Royalty
Agreement







PURCHASE
AGREEMENT

***************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********

WITNESSETH:
***************************************************************************




***************************************************************************
****************




***************************************************************************
****************




***************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
****************************

NOW,
THEREFORE, in consideration of the foregoing and the representations,
warranties, covenants and agreements herein contained the Parties hereto agree
as follows:




ARTICLE I
DEFINITIONS




For
the purpose of this Agreement, the following words and phrases and their
correlatives shall have the meanings set forth below. Capitalized terms used,
but not defined herein, shall have the meanings ascribed to them in the InNexus
License Agreement:




“Affiliate”
means, with respect to any Person, any Person directly or indirectly
controlling, controlled by or under common control with such other Person,
whether now or in the future. For purposes of this definition, “control”
(including the terms “controlling,” “controlled by,” or “under common control
with”) means possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract, or otherwise




“Antibody
A” means any antibody developed using the Dynamic Cross Linking
Technology

based
***************************************************************************
****************************************************




***************************************************************************
**********************************************************************************
**********************************************************************************
**********************







PURCHASE AGREEMENT

****************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**************************************************************

“Antibody
B Product(s)” means any pharmaceutical composition(s) containing Antibody B.
“Antibody B Royalty Payments” means (1)
****************************************

**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************

“Bankruptcy Event” means the occurrence of any of the
following:

(i)

**************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
*********************************




(ii)

**************************************************************
**********************************************************************************
**********************************************************************************




(iii)

**************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
************************




(iv)

**************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
******************************




(v)

**************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
****************************************************************************







PURCHASE AGREEMENT

**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************

(vi)

***************************************************************
***********************************************************

**************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
***********************************************

*********************************************************
**********************************************************************************
*****************

“Biological
Materials” has the meaning set out in the InNexus License Agreement

“Business
Day” means any day that is not a Saturday, a Sunday or a day on which banks
are required or permitted to be closed in any of the City of New York, New York,
USA, the City of Bridgetown, Barbados or the City of Vancouver, British
Columbia, Canada.

“Dynamic
Cross Linking Technology” means the anti-body enhancement and modification
technology platform which is the subject of the Licensed IP.

“Exploit”
and “Exploitation” has the meaning set out in the InNexus License
Agreement. “Field” has the meaning set out in the InNexus License
Agreement.

“Field
IP” means (i)

*******************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
*******************

“First Commercial Sale” means,
**************************************************
**********************************************************************************
**********************************************************************************
*************************

“Governmental
Authority” means any government, court, regulatory or administrative agency
or commission, or other governmental authority, agency or instrumentality,
whether federal, state or local (domestic or foreign).





PURCHASE
AGREEMENT







“Initial Program” means the program that shall be managed
by the Seller to use Field IP to develop Antibody A and Products, a copy of the
proposed work plan for which is attached hereto as Exhibit A.




“InNexus International” means InNexus Biotechnology
International Limited, a company registered in Barbados that is a wholly-owned
subsidiary of Parent.




“InNexus License Agreement” means the Exclusive License
Agreement between Seller and InNexus International, a copy of which is attached
hereto as Exhibit B.




“Licensed Patents” has the meaning set out in the InNexus
License Agreement




“Lien” means, with respect to any agreement or other asset,
any mortgage, lien, pledge, charge, security interest or encumbrance of similar
effect in respect of such asset.




“Material Adverse Effect” means any one or more of (i) a
material adverse effect on the business, operations, assets, prospects or
financial condition of any member of the Seller Group, including ***

**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**************************************

“Net Sales” means the gross amount invoiced in arms-length
transactions by any of the Seller Group (but not any Pharmaceutical Partner)
from or on account of the sale or distribution of Product to any Third Party
(excluding any free Product provided on a trial basis or as samples), less:

(a)

*************************************************************
*************************************




(b)

*************************************************************
**********************************************************************************
**************************************




(c)

*************************************************************
**********************************




(d)

************************************************




(e)
***************************************************************
**********************************************************************************
***************************




****************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************







PURCHASE AGREEMENT

**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
************************************

“Parent”
means InNexus Biotechnology Inc., a corporation incorporated in the Province of
British Columbia, Canada, which is the parent of the Seller and InNexus
International.




“Parent
Agreement” means the Parent Agreement between Buyer and Parent, a copy of
which is attached hereto as Exhibit E.




“Patent
Rights” has the meaning set out in the InNexus License Agreement.




“Person”
means an individual, corporation, partnership, association, trust or other
entity or organization, but not including a government or political subdivision
or any agency or instrumentality of such government or political
subdivision.




“Pharmaceutical
Partner” means a Person engaged in the business of developing or
commercializing pharmaceutical products that the Seller and the Buyer mutually
agree is appropriate to partner with to develop and sell a Product or an
Antibody B Product, as the case may be.




“Product(s)”
means any pharmaceutical composition(s) containing Antibody A.




“Regulatory
Approval” means the approval of the TSX-Venture Exchange and any other
securities regulatory authority having jurisdiction, sufficient to permit
Parent, Seller and their Affiliates to enter into and perform the transactions
contemplated by any of the Transaction Documents.




“Regulatory
Exclusivity Periods” has the meaning set out in the InNexus License
Agreement. “Rejection Event” means
********************************************************

**********************************************************************************
**********************************************************************************
*************************

“Royalty
Agreement” means the Royalty Agreement to be entered into between Buyer and
Seller as of the Closing, a copy of which is attached hereto as Exhibit
F.

****************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
*************************




*****************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************
**********************************************************************************







PURCHASE AGREEMENT

**********************************************************************************
“Royalty Pharma” means Royalty Pharma
******************************************** **************

“Seller Group” means
***************************************************
**********************************************************************************
**********************************************************************

“Subscription Agreement” means the Subscription Agreement between
Buyer and Parent, a copy of which attached hereto as Exhibit C.

“Taxes” means any net income, alternative or add-on minimum
tax, gross income, gross receipts, sales, use, ad valorem, franchise, capital,
paid-up capital, profits, greenmail, license, withholding, payroll, employment,
excise, severance, stamp, occupation, premium, property, environmental or
windfall profit tax, custom, duty or other tax, governmental fee or other like
assessment or charge of any kind whatsoever, together with any interest or any
penalty, addition to tax or additional amount imposed by any Governmental
Authority responsible for the imposition of any such tax.

“Technology” has the meaning set out in the InNexus License
Agreement.

“Third Party” means any Person who is not a member of the
Seller Group.

“Third Party Product Development Agreement” has the meaning
set out in the Royalty Agreement.

“Transaction Documents” means, collectively, this
Agreement, the ***********************
**********************************************************************************
**********************************************************************************
**********************************************************************************
*********

“Valid
Claim” means a claim of (i) an issued and unexpired Patent Right, which
claim has not been revoked or held invalid or unenforceable by a court or other
government agency of competent jurisdiction from which no appeal can be or has
been taken and has not been held or admitted to be invalid or unenforceable
through re-examination or disclaimer, reissue, opposition procedure, nullity
suit or otherwise, or (ii) a pending Patent Right application that was filed in
good faith and has not been cancelled, withdrawn or abandoned without the
possibility of appeal or refiling.

ARTICLE II

PURCHASE AND ASSIGNMENT OF RIGHTS

Section
2.01

Purchase
and Assignment.

(a)

Upon
the terms and subject to the conditions of this Agreement, Buyer agrees to
purchase from Seller, and Seller agrees to sell, transfer, assign and deliver,
or cause to be sold, transferred, assigned and delivered, to Buyer, at the
Closing, free and clear of all Liens

*********

**********************************************************************************
***************************************************** For and in consideration
of the sale, *************************************************** (i) Buyer shall
pay to Seller $2,000,000







PURCHASE AGREEMENT







(the “Purchase Price”) by fedwire transfer of immediately
available funds to the bank account designated by Seller on Exhibit D,
and (ii) Buyer shall purchase $1,000,000 in securities of Parent pursuant to the
Subscription Agreement.




(b)

The closing of the sale, assignment and transfer of the Royalty
Payments (the “Closing”) shall take place on the later of the 10th
Business Day after receipt of Regulatory Approval or the 20th Business Day after
execution hereof at the Boston office of Goodwin Procter LLP (the date of the
Closing being referred to as the “Closing Date”). At and after the
Closing, if requested by Buyer, Seller shall execute and deliver to Buyer such
instruments and documents as may be reasonably requested by Buyer in order to
evidence Buyer’s ownership of the rights acquired hereunder. The claims and
rights of Buyer created by any Transaction Document in and to the Royalty
Payments and the Field IP are not and shall not be subordinated to any creditor
of Seller, Parent, InNexus International or any other Person.




(c)

Notwithstanding any other provision herein, either Party may
terminate this Agreement upon notice in writing to the other Party at any time
after June 15, 2007 if, by such date, the Closing shall not have been
consummated because such notified Party or its Affiliates failed to satisfy a
condition set forth in Article V (and such condition had not been previously
waived by the Party sending such notice), provided that neither Party shall have
the right to terminate this Agreement pursuant to this Section 2.01(c) if such
Party has failed to perform its obligations under this Agreement (including,
without limitation, Article VI). Upon such termination, all rights and
obligations of the Parties hereunder shall cease, other than the provisions of
Article VIII with respect to any losses that have accrued prior to or as of such
termination.




Section 2.02 Additional Purchase Price.




(a)

If and only if Antibody A resulting from the Initial Program is
shown to the mutual satisfaction of Buyer and Seller to have greater potency
than *******, then to maintain the full amount of the Royalty Payments as
defined above, within the earlier of twelve (12) months of the completion of the
Initial Program or upon execution of a Third Party Product Development
Agreement, Buyer may elect to pay to Seller an additional $15,000,000 (the
“Additional Payment”) ************

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
*****************************




(b)
***************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************







PURCHASE AGREEMENT

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
*****************

Section
2.03 Antibody B Option.




 (a) Seller hereby grants to Buyer the exclusive option to
purchase the Antibody B Royalty Payments from Seller (the “Antibody B
Option”) on the following terms. Buyer may exercise the Antibody B Option at
any time during the period within twelve (12) months after the Closing Date.
Buyer shall exercise the Antibody B Option by written notice to Seller within
the time period specified above.

 (b)
***************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************




****************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
*****************************************************

ARTICLE III
REPRESENTATIONS AND WARRANTIES OF SELLER




Seller hereby represents and warrants to Buyer as of the date
hereof and the Closing Date that:




Section 3.01

Corporate Existence and Power. Each of Seller and InNexus
International is a corporation duly incorporated and validly subsisting under
the laws of *******. Parent is a corporation duly incorporated and validly
subsisting under the laws of British Columbia, Canada. Each member of the Seller
Group has all corporate powers and all material governmental licenses,
authorizations, consents and approvals required to carry on its business as now
conducted, except to the extent that the failure to have any such governmental
licenses, authorizations, consents and approvals could not reasonably be
expected to have a Material Adverse Effect.




Section 3.02

Corporate Authorization. The
**************************************

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************







PURCHASE AGREEMENT

***********************************************************************************
*********************************************







Section 3.03

Governmental Authorization. The
***********************************
***********************************************************************************

***********************************************************************************
***********************************************************************************
***********************************************************************************
******************************************

Section
3.04 Non-Contravention. The ******************************************
***********************************************************************************

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***************







Section 3.05

No Undisclosed Liabilities. There are no
liabilities or obligations of any member of the Seller Group related to Antibody
A, Products, the Field IP or the Royalty Payments of any kind whatsoever,
whether accrued, contingent, absolute, determined, determinable or otherwise,
and there is no existing condition, situation or set of circumstances that could
reasonably be expected to result in such a liability or obligation.

Section 3.06

Litigation. There is no action, suit, investigation or proceeding,
pending or, to Seller’s or Parent’s knowledge, threatened against any member of
the Seller Group before any Governmental Authority or arbitrator or mediator
that, if determined adversely to such party, could reasonably be expected to
result in a Material Adverse Effect. There have been no claims made by any
Person, to Seller’s or Parent’s knowledge, threatened against any member of the
Seller Group that could reasonably be expected result in a Material Adverse
Effect. No member of the Seller Group has agreed to any covenants to refrain
from litigation with Third Parties with respect to Antibody A, Products, the
Field IP or the Royalty Payments.

Section 3.07 Compliance with Laws. No member
of the Seller Group is in violation of, has not violated and, to the knowledge
of Seller or Parent, is not under investigation with respect to and has not been
threatened to be charged with or given notice of any violation of, any law,
rule, ordinance or regulation or any judgment, order or decree entered by any
Governmental Authority, in each case that could reasonably be expected result in
a Material Adverse Effect.

Section 3.08

Title; Absence of Liens; Subordination.
Seller ***************************
***********************************************************************************

***********************************************************************************







PURCHASE AGREEMENT

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
*****************************************

Section
3.09 InNexus Internal Agreements.




(a)

A
true, correct and complete copy of the InNexus License Agreement is attached
hereto as Exhibit B. The InNexus License Agreement is (i) the valid and
binding obligations of the party thereto, (ii) enforceable in accordance with
its terms and (iii) in full force and effect.




(b)

None
of Seller, Parent or InNexus International is in default in any respect under
the terms of InNexus License Agreement nor has any event or circumstance
occurred that, with notice or lapse of time or both, could constitute an event
of default thereunder.




(c)

Seller
has not released Parent or InNexus International, in whole or in part, from any
of its respective obligations under the InNexus License Agreement, or waived any
provision thereof.




(d)

Except
for the Transaction Documents, there are no agreements involving any member of
the Seller Group related to Antibody A, Products, the Field IP or the Royalty
Payments.




Section
3.10

IP.

(a)

**************************************************************
***********************************************************************************
***********************************************************************************
***********************************




 (b)
**************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************




(c)

**************************************************************
************************************.

(d)

 ***************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************







PURCHASE AGREEMENT

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
**********************************




(e)
***************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
*******************************************




(f)
***************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
************************************




(g)
***************************************************************
***********************************************************************************
******************************************




***************************************************************

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
******************

(i)

***************************************************************

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
*********************************




(j)

***************************************************************







PURCHASE
AGREEMENT

***********************************************************************************
***********************************************************************************
***********************************************************************************
*********************************

Section 3.11

Finders’ Fees. There is no investment banker, broker,
finder or other intermediary that has been retained by or is authorized to act
on behalf of any member of the Seller Group who might be entitled to any fee or
commission from Buyer or any of its Affiliates upon consummation of the
transactions contemplated by the Transaction Documents.




Section 3.12 Disclosures. Neither this Agreement, nor any
other agreement, document or written statement made by any member of the Seller
Group and furnished to Buyer or its Affiliates in connection with the
transactions contemplated hereby, contains any untrue statement of a material
fact or omits to state any material fact necessary to make the statements
contained herein or therein not misleading in the light of the circumstances in
which they were made. There is no material fact directly relating to Antibody A,
Products, Field IP, the InNexus License Agreement or Royalty Payments that could
reasonably be expected to have a Material Adverse Effect that has not been set
forth in this Agreement or in any Exhibit hereto, including that, to the
knowledge of any member of the Seller Group, there are no scientific or clinical
facts or circumstances that would materially and adversely affect the safety,
efficacy or market performance of Antibody A or Products or any other antibody,
protein binder or biological in the Field.




ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF BUYER




Buyer hereby represents and warrants to Seller that as of the date
hereof and on the Closing Date that:




Section 4.01

Organization and Existence. Buyer is an exempted limited
partnership duly organized under the laws of ***************. Buyer has all
applicable powers and all material governmental licenses, authorizations,
consents and approvals required to carry on its business as now conducted,
except to the extent that the failure to have any such governmental licenses,
authorizations, consents and approvals could not reasonably be expected to have
a material adverse effect on (i) the ability of Buyer to perform its obligations
under any of the Transaction Documents, or (ii) the validity or enforceability
of any of the Transaction Documents or the rights or remedies of Seller
hereunder or thereunder.




Section 4.02 Corporate Authorization. The execution,
delivery and performance by Buyer of the Transaction Documents and the
consummation by Buyer of the transactions contemplated hereby and thereby are
within the powers of Buyer and have been duly authorized by all necessary action
on the part of Buyer. The Transaction Documents have been duly executed and
delivered by Buyer, and each

constitutes a valid
and binding agreement of Buyer, enforceable against Buyer in accordance with its
terms.




Section
4.03 Governmental Authorization. The execution, delivery and performance
by Buyer of each of the Transaction Documents does not require any action by or
in respect of, or filing with, any Governmental Authority (except for actions
taken or filings made, if any).




Section
4.04 Non-Contravention. The execution, delivery and performance by Buyer
of each of the Transaction Documents does not and will not contravene or
conflict with or constitute a violation of (i) the organizational documents of
Buyer; (ii) any material provision of any material law or regulation







PURCHASE
AGREEMENT







binding
upon or applicable to Buyer; (iii) any judgment, injunction, order or decree
binding upon or applicable to Buyer; or (iv) any material agreement, instrument
or obligation to which Buyer is a party or may be bound, or by which any
substantial part of Buyer’s properties or assets may be bound.




Section
4.05

Finders’
Fees. There is no investment banker, broker, finder or other intermediary
that has been retained by or is authorized to act on behalf of Buyer who might
be entitled to any fee or commission from Seller upon consummation of the
transactions contemplated by the Transaction Documents.




Section
4.06

Litigation.
There is no action, suit, investigation or proceeding pending against, or, to
the knowledge of Buyer threatened against or affecting Buyer before any
Governmental Authority that, if determined adversely to Buyer, could reasonably
be expected to materially adversely affect Buyer’s ability to perform its
obligations under any of the Transaction Documents.




ARTICLE V
CONDITIONS
TO CLOSING




Section
5.01

Conditions
to each Party’s Obligations. The obligations of each Party to consummate the
transactions contemplated hereunder on the Closing Date are subject to the
satisfaction, at or prior to the Closing Date, of each of the following
conditions precedent:




(a)

Each
party thereto shall have executed and delivered each of the Transaction
Documents (other than the Parent Agreement and the Subscription Agreement, which
shall be executed as of the date first written above).




(b)

Parent
shall have received Regulatory Approval.




(c)

Buyer
shall have received evidence that the pledge and security interests in favor of
the Buyer are valid, enforceable, properly perfected in a manner acceptable to
the Buyer and prior to all others’ rights and interests.




Section 5.02 Conditions to Buyer’s Obligations. The
obligations of Buyer to consummate the transactions contemplated hereunder on
the Closing Date are further subject to the satisfaction or waiver, at or prior
to the Closing Date, of each of the following conditions precedent:




(a)

All representations and warranties contained in ARTICLE III shall
be true and correct in all respects as of the Closing Date and Buyer shall have
received on the Closing Date certificates of an authorized officer of the Seller
to such effect.




(b)

Buyer shall have received on the Closing Date an opinion of
counsel to Seller in a form reasonably satisfactory to Buyer.




(c)

Buyer shall have received a certificate from Parent’s corporate
secretary certifying that attached thereto is a true and complete copy of any
necessary resolutions of any member of the Seller Group authorizing the
Transaction Documents and the transactions contemplated hereby and thereby, that
such resolutions remain in full force and effect and that no further resolutions
have been taken in respect of such matters.




(d)

Buyer shall have received on the Closing Date a closing
certificate from an authorized officer of Parent in the form attached as
Exhibit G.







(e)

Such other certificates and documents as Buyer may reasonably
request.

 (f)
***************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***************************************

 Section 5.03 Conditions to Seller’s Obligations. The
obligations of Seller to consummate the transactions contemplated hereunder on
the Closing Date are further subject to the satisfaction or waiver, at or prior
to the Closing Date, of each of the following conditions precedent:




(a)

All representations and warranties contained in ARTICLE IV shall
be true and correct in all respects as of the Closing Date and Buyer shall have
received on the Closing Date a certificate of an authorized officer of Buyer to
such effect.




(b)

Seller shall have received a certificate from Buyer’s authorized
officer certifying that attached thereto is a true and complete copy of any
necessary resolutions of Buyer and Royalty Pharma authorizing the Transaction
Documents and the transactions contemplated hereby and thereby, that such
resolutions remain in full force and effect and that no further resolutions have
been taken in respect of such matters.




(c)

Buyer shall deliver to Seller the Purchase Price, by fedwire
transfer of immediately available funds, to Seller’s bank account set forth on
Exhibit D.




(d)

Such other certificates and documents as Seller may reasonably
request.




ARTICLE VI COVENANTS




The Parties agree that from and after the date hereof until such
time as the Antibody B Option has been exercised or abandoned by the Buyer or
this Agreement is terminated in accordance with Section 2.01(c):




Section 6.01

Closing.




(a)

Each Party will use its best efforts to take, or cause to be
taken, all actions and to do, or cause to be done, all things reasonably
necessary under applicable laws and regulations to consummate the transactions
contemplated by this Agreement, including, but not limited to, using its best
efforts to obtain the Regulatory Approval; provided that neither Seller nor
Buyer shall be obligated to pay any amount of money or deliver any goods or
services to Seller or Buyer or any third party except as otherwise expressly
provided in or contemplated by this Agreement. Buyer and Seller agree to execute
and deliver such other documents, certificates, agreements and other writings
and to take such other actions as may be reasonably necessary in order to
consummate or implement expeditiously the transactions contemplated by this
Agreement.




(b)

Until the Closing Date, Seller shall not, nor shall it permit any
member of the Seller Group nor any of their or its respective directors,
officers, employees, agents or advisors (including, without limitation,
attorneys, accountants, consultants, financial advisors and investment







PURCHASE AGREEMENT







bankers), to, directly or indirectly, solicit, initiate, knowingly
encourage, participate in discussions or negotiations with, provide any
confidential information to, enter into any agreement with, or effect or
otherwise cooperate in any way with, any Person other than Buyer concerning any
sale, lease, conveyance, license, transfer, assignment, pledge or other
disposition of any right, title or interest in or to Antibody A, Products, the
Field IP or the Royalty Payments. Seller further agrees, and shall cause each
member of the Seller Group to further agree, to terminate all pending
discussions or negotiations with any Person (other than Buyer or its Affiliates)
with respect to any transaction that would be precluded by this Section
6.01(b).




Section 6.02 Use of Proceeds. Seller shall expend the
Purchase Price on the Initial Program and, upon completion of the Initial
Program, the further development of the Product for which the Initial Program
was completed.




ARTICLE VII
SURVIVAL;
INDEMNIFICATION




Section 7.01

Survival of Obligations. The representations, warranties
and obligations of Seller under this Agreement shall survive the Closing.




Section 7.02

Indemnification. Seller hereby indemnifies Buyer and its
Affiliates against, and agrees to hold each of them harmless from, any and all
damage, loss, liability and expense (including reasonable out-of-pocket expenses
of investigation and reasonable attorneys’ fees and expenses in connection with
any action, suit or proceeding) (collectively, “Loss”) incurred or
suffered by Buyer or its Affiliates arising out of, relating to or resulting
from any misrepresentation or breach of any warranty, covenant or agreement made
or to be performed by (i) Seller hereunder or (ii) Seller or Parent under the
Parent Agreement, provided that upon the Royalty Agreement going into effect at
the Closing, this clause (ii) shall apply only to events that give rise to
Losses occurring prior to or as of the Closing. ***

*************************************************************************************
****************

Section 7.03 Procedures; No Waiver.




(a)

Buyer agrees to give prompt notice to Seller of the assertion of
any claim, or the commencement of any suit, action or proceeding in respect of
which indemnity may be sought under Section 7.02; provided that the failure to
give such notice shall not affect Buyer’s rights hereunder except to the extent
Seller is prejudiced by such failure. Seller shall control the defense of any
such Third Party suit, action or proceeding at its own expense; provided that,
if Seller fails to undertake or maintain such defense, Buyer may control such
defense at Seller’s expense. Buyer shall have the right to employ its own
counsel in any action, suit or proceeding in which Seller assumes the defense,
but the fees and expenses of such counsel shall be at the expense of Buyer
unless (i) the employment of counsel by Buyer has been authorized in writing by
Seller, (ii) Buyer has reasonably concluded (based on the advice of counsel to
Buyer) that there may be legal defenses available to it that are different from
or in addition to those available to Seller, (iii) a conflict or potential
conflict exists (based on advice of counsel to Buyer) between Buyer and Seller
(in which case Seller shall not have the right to direct the defense of such
action on behalf of Buyer), or (iv) Seller has not employed reasonably
experienced and qualified counsel to assume the defense of such action within a
reasonable time after receiving notice of the commencement of the action, in
each of which cases the fees and expenses of counsel employed by Buyer shall be
at the expense of Seller. Seller shall not be liable under Section 7.02 for any
settlement effected without its prior consent of any claim, litigation or
proceeding in respect of which indemnity may be sought hereunder; provided that
such consent may not be unreasonably withheld.







(b)

No investigation by Buyer of the Field IP, the Transaction
Documents or any other matters shall limit Buyer’s right to indemnification
hereunder.




(c)

The representations, warranties, covenants and agreements
contained herein shall survive the Closing. The expiration of any term of this
Agreement shall not excuse any Party hereto from its liability in respect of any
breach hereof prior to such expiration.




ARTICLE VIII
MISCELLANEOUS




Section 8.01 Public Announcement; Terms of this Agreement.
Each Party shall have the right to make disclosures that are required by law,
governmental rules and regulations or the rules and regulations of any
applicable securities exchange or trading system (“Regulatory Disclosure
Requirements”), provided such Party provides advance written notice of any such
disclosure to the other Party for its review and comment. The Parties agree to
issue a joint press release upon the Closing that is mutually acceptable to each
Party. The Parties agree not to make any public disclosures or statements with
respect to the Transaction Documents or the transactions contemplated hereby or
thereby without the other Party’s prior written consent in its sole discretion,
except for those disclosures (a) expressly permitted by the first sentence of
this Section 8.01 or clause (v) below, subject to such prior review and comment,
or (b) that only repeat the information disclosed in such joint press release.
Each Party shall keep the terms of this Agreement and the other Transaction
Documents confidential and shall not disclose such terms except (i) to any of
its Affiliates or to its and such Affiliate’s directors, officers, trustees,
managers, employees, partners, agents, advisors and representatives, (ii) to the
extent reasonably necessary to prosecute or defend any claim, action or
proceeding related hereto, (iii) solely to the extent necessary, to rating
agencies, (iv) by Buyer, to credit support providers, financing sources,
existing or prospective investors in Buyer or its Affiliates or to any other
Person in connection with any proposed or permitted assignment in accordance
with Section 8.07, provided that any such proposed or permitted assignee is
under a written obligation to keep such terms confidential and (v) by Parent, to
the extent required to comply with Regulatory Disclosure Requirements provided
Parent provides advance written notice of any such disclosure to Buyer for its
review and comment. Buyer or Parent and their respective Affiliates may provide
a brief description of this transaction on its website provided such description
only repeats the information disclosed in such joint press release.




Section 8.02 Further Assurances. After the Closing, the
Parties agree to execute and deliver such other documents, certificates,
agreements and other writings and to take such other actions as may be
reasonably necessary in order to effectuate the intention, performance and
provisions of this Agreement or the other Transaction Documents. Further, Seller
shall cooperate and provide assistance as reasonably requested by Buyer in
connection with any claim, litigation, arbitration or other proceeding (whether
existing or threatened) to which Buyer, its Affiliates or any of its or their
officers, directors, shareholders, agents or employees is or may become a party
or is or may become otherwise directly or indirectly affected or as to which any
such Persons have a direct or indirect interest relating the Transaction
Documents, the transactions described herein or therein or the Royalty
Payments.




Section 8.03

Specific Performance. Each of the Parties hereto
acknowledges that the other Party will have no adequate remedy at law if it
fails to perform any of its obligations under this Agreement. In such event,
each of the Parties agrees that the other Party shall have the right, in
addition to any other rights it may have (whether at law or in equity), to
specific performance of this Agreement.




Section 8.04 Notices. All notices, requests and other
communications to either Party hereunder shall be in writing and shall be given
by overnight courier, courier or facsimile as follows:







(a)

if to Buyer, to:




RP Dynamic Cross Linking L.P. c/o RP Management, LLC 110 East 59th
Street

Suite 3300

New York, NY 10022



Attention: Telecopy:

*********** ***********



with a required copy to:




Goodwin Procter LLP

Exchange Place

53 State Street

Boston, MA 02109

Attention:

*****************

***************** Telecopy:

***************




(b)

if to Seller, to:




InNexus Bioscience (Barbados) Inc.

Chamberlain Place,

Broad Street, Bridgetown St. Michael, Barbados Attention:
************ Telecopy: ************




with required copies to:




InNexus Biotechnology Inc.

13208 East Shea Blvd., Suite 200 The Mayo Clinic MCCRB Building
Scottsdale, Arizona 85259

Attention: Jeff Morhet

Telecopier: **********




Leschert & Company

Law Corporation

Barristers & Solicitors

2760 – 200 Granville Street, Vancouver, British Columbia V6C
1S4

Attention:

Allen D. Leschert

Telecopy:

*************




or to such other address as any Party may have furnished to the
other in writing in accordance herewith. All notices and other communications
given to any Party hereto in accordance with the provisions of this Agreement
shall be deemed to have been given on the date of receipt if delivered by hand
or overnight







PURCHASE AGREEMENT







courier service or sent by fax prior to 4:00 p.m. EST, in each
case delivered or faxed (properly addressed) to such Party as provided in this
Section 8.04.




Section 8.05 Amendments; No Waivers.




(a)

Any provisions of this Agreement may be amended or waived if, and
only if, such amendment or waiver is in writing and signed, in the case of an
amendment, by Buyer and Seller or in the case of a waiver, by the Party against
whom the waiver is to be effective.




(b)

No failure or delay by either Party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof nor shall any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies herein
provided shall be cumulative and not exclusive of any rights or remedies
provided by law.




Section 8.06 Expenses. Except as otherwise provided herein,
all costs and expenses incurred in connection with this Agreement shall be paid
by the Party incurring such cost or expense.




Section 8.07 Successors and Assigns. The provisions of this
Agreement shall be binding upon and inure to the benefit of the Parties hereto
and their respective successors, assigns and legal representatives. This
Agreement and the Buyer’s rights and obligations hereunder may be sold, assigned
or transferred, in whole or in part, without the prior written consent of
Seller. This Agreement and Seller’s rights and obligations hereunder may not be
sold, assigned or transferred without the prior written consent of Buyer or its
transferees or assignees.




Section 8.08 Governing Law; Jurisdiction. This Agreement
shall be construed in accordance with and governed by the law of
******************* without regard to any conflicts of law principles thereof
that would call for the application of the laws of any other jurisdiction. The
Parties hereto agree that any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby shall be brought

exclusively in the
**********************************************************************

*****************************************
so long as one of such courts shall have subject matter jurisdiction over such
suit, action or proceeding, and that any cause of action arising out of this
Agreement shall be deemed to have arisen from a transaction of business in the
******************* each of the Parties hereby irrevocably consents to the
jurisdiction of such courts (and of the appropriate appellate courts therefrom)
in any such suit, action or proceeding and irrevocably waives, to the fullest
extent permitted by law, any objection that it may now or hereafter have to the
laying of the venue of any such suit, action or proceeding in any such court or
that any such suit, action or proceeding which is brought in any such court has
been brought in an inconvenient forum. Process in any such suit, action or
proceeding may be served on any party anywhere in the world, whether within or
without the jurisdiction of any such court. Without limiting the foregoing, each
Party agrees that services of process on such Party as provided in Section 8.04
shall be deemed effective service of process on such Party.




Section
8.09 Waiver of Jury Trial. Each of the Parties hereto hereby irrevocably
waives any and all right to trial by jury in any legal proceeding arising out of
or related to this agreement or the transactions contemplated hereby.




Section
8.10 Counterparts; Effectiveness. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. This
Agreement shall become effective when each Party hereto shall have received a
counterpart hereof signed by the other Party hereto. Facsimile execution
and







PURCHASE
AGREEMENT







delivery
of this Agreement by either Party shall constitute a legal, valid and binding
execution and delivery of this Agreement by such Party.




Section
8.11

Entire
Agreement. This Agreement and the Exhibits hereto constitute the entire
agreement between the Parties with respect to the subject matter hereof and
supersede all prior agreements, understandings and negotiations, both written
and oral, between the Parties with respect to the subject matter of this
Agreement, other than the Transaction Documents. No representation, inducement,
promise, understanding, condition or warranty not set forth herein has been made
or relied upon by either Party hereto. None of this Agreement, nor any provision
hereof, is intended to confer upon any Person other than the Parties hereto any
rights or remedies hereunder.




Section
8.12

Severability.
If any one or more of the provisions contained in this Agreement is held
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein shall not in any way
be affected or impaired thereby, unless the absence of the invalidated
provision(s) adversely affects the substantive rights of the Parties. The
Parties shall in such an instance use their reasonable best efforts to replace
the invalid, illegal or unenforceable provision(s) with valid, legal and
enforceable provision(s) which, insofar as practical, implement the purposes of
this Agreement.




Section
8.13

Relationship
of the Parties. Each Party is an independent contractor under this
Agreement. Nothing contained herein is intended or is to be construed so as to
constitute any of the Parties as partners, agents or joint venturers. Neither
Party shall have any express or implied right or authority to assume or create
any obligations on behalf of or in the name of the other Party or to bind the
other Party to any contract, agreement or undertaking with any other Person.




Section
8.14

Captions.
The titles and captions herein are included for convenience of reference only
and shall be ignored in the construction or interpretation hereof.




Section
8.15

Certain
Interpretations.




(a)

As
used herein, “including” means including without limitation, and any number of
named included items shall not be construed to mean that any unnamed item is not
included.




(b)

When
a reference is made in this Agreement to Sections or Exhibits, such reference
shall be to a Section or Exhibit to this Agreement unless otherwise
indicated.




(c)

Neither
Party hereto shall be or be deemed to be the drafter of this Agreement for the
purposes of construing this Agreement against one Party or the other.




(d)

All
references to dollars and “$”means U.S. dollars. [remainder of page
intentionally left blank]







PURCHASE
AGREEMENT







IN
WITNESS WHEREOF, the Parties hereto have caused this Purchase Agreement to be
duly

executed by their
respective authorized officers as of the day and year first above written.




INNEXUS
BIOSCIENCE (BARBADOS) INC., as Seller







By:

Name:
Title:







RP
DYNAMIC CROSS LINKING L.P., as Buyer By: *************, its general
partner







By:

Name:
*************

Title:
Chief Executive Officer







PURCHASE
AGREEMENT

Exhibit A
Initial Program
Simultaneous
Preclinical Development Plan

1.
********************

***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
******************************




2.

************************




***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
******************************




3.

**********************




***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
***********************************************************************************
******************************







PURCHASE AGREEMENT

Exhibit
B







PURCHASE AGREEMENT

Exhibit
C







PURCHASE AGREEMENT

Exhibit
D







PURCHASE AGREEMENT

Exhibit
E







PURCHASE AGREEMENT

Exhibit
F

Endnotes

ARTICLE
VII SURVIVAL; INDEMNIFICATION 

15

(h)

***********************************************************************************

PURCHASE AGREEMENT

PURCHASE AGREEMENT

PURCHASE AGREEMENT

InNexus License Agreement

Subscription Agreement

Seller’s Bank Account

Parent Agreement

Royalty Agreement