Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.24

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE FEBURARY 22, 2006.

WITHOUT PRIOR WRITTEN APPROVAL OF THE TSX VENTURE EXCHANGE
AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR
OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR
OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL
FEBURARY 22, 2006.

THIS DEBENTURE CERTIFICATE AND THE SHARES DELIVERABLE UPON
EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT
OF 1933, AS AMENDED (THE "1933 ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES, AND THIS DEBENTURE CERTIFICATE MAY NOT BE EXERCISED IN THE UNITED
STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED STATES OR A U.S. PERSON
UNLESS THE DEBENTURE CERTIFICATE AND THE UNDERLYING SHARES HAVE BEEN REGISTERED
UNDER THE 1933 ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE
OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED
STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933
ACT.

	NO. RBM05-[##] 	PRINCIPAL AMOUNT: Cdn$[##]
  

NON-NEGOTIABLE

RESPONSE BIOMEDICAL CORP.
Incorporated under the
Business Corporations Act (British Columbia)

7% SECURED CONVERTIBLE DEBENTURE 
Due October 21,
2008

Response Biomedical Corp., of Suite 100, 8900 Glenlyon Parkway,
Burnaby, British Columbia, V5J 5J8, (hereinafter referred to as the
“Corporation”) for value received hereby promises to pay to

[Insert Registration Name and Address]

on October 21, 2008, or such earlier date as the principal
amount hereof may become due in accordance with the provisions hereof, on
presentation and surrender of this Debenture, the sum of

1,000 Units with a Unit value of $1,000 totalling
Cdn$[xx]

in lawful money of Canada and to pay interest on the principal
amount hereof at 7% per annum, payable quarterly on March 31, June 30, September
30 and December 31 in each year (each, an “Interest Payment Date”), from
the date of original issue of the Debenture, or from the last Interest Payment
Date on which interest has been paid or made available for payment on the
outstanding Debenture, whichever is later, in like money, subject to the “Share
Interest Election” set out below, the first Interest Payment Date to be computed
from the original date of issue of the Debenture and to fall due on December 31,
2005, and should the Corporation at any time make default in the payment of any
principal or interest, to pay interest on the amount in default at the same
rate, in like money and quarterly on the same dates, subject to the “Share
Interest Election” set out below.

The Corporation may elect (the “Share Interest
Election”), subject to all required regulatory approvals, to pay any and all
interest payments that become due in fully paid and non-assessable common shares
of the Corporation (the “Shares”), including any interest payable on
principal and interest in default. The number of Shares to be paid in
satisfaction of interest due shall be calculated by dividing the aggregate
amount of interest to be paid by the average of the daily Volume Weighted
Average Trading Price (as defined herein) of the Shares for the five trading day

-2-

period ending the day prior to the Interest Payment Date. To
exercise the Share Interest Election, the Corporation shall mail a written
notice to the holder of the Debenture at least 20 trading days and not more than
30 trading days prior to the applicable Interest Payment Date, stating that the
interest payment due will be paid in Shares. 

As interest on this Debenture becomes due, the Corporation
(except in case of payment at maturity at which time payment of interest may be
made upon surrender of this Debenture) shall, on each Interest Payment Date,
forward or cause to be forwarded by prepaid post to the registered address of
the registered holder of this Debenture for the time being, or in the case of
joint holders to the registered address of whichever of such joint holders is
named first in the register referred to hereafter, a cheque or a Share
certificate for such interest, less any tax required by law to be deducted or
withheld, and if a cheque, payable to the order of such holder or holders and
negotiable at par at any chartered bank in Canada, or if a Share certificate,
registered in the name of the registered holder of this Debenture for the time
being, and subject to any legends required to be imprinted on such certificate
by applicable securities laws. The forwarding of such cheque or Share
certificate shall satisfy and discharge the liability for interest under this
Debenture to the extent of the sum represented thereby (plus the amount of any
tax deducted or withheld as aforesaid) unless such cheque be not honoured upon
presentation.

This Debenture is convertible, in whole or in part (but if in
part, only amounts of $10,000 or more) at the option of the holder hereof, upon
surrender of this Debenture at the office of the Corporation referred to above,
at any time up to the close of business on October 21, 2008 into Shares, at the
“Conversion Price” as defined below:

  	Period 	Conversion Price 
	Date of issue to October 21, 2007 	$0.42 
	October 22, 2007 to October 21, 2008 	$0.47 

This Debenture may be redeemed by the Corporation on any date
(the “Date of Redemption”) prior to its maturity, in either like money or
Shares, if the Volume Weighted Average Trading Price (as defined herein) of the
Shares exceeds 200% of the applicable Conversion Price for the 10 trading days
ending five days preceding the Date of Redemption (the “Redemption
Condition”).

This Debenture may not be retracted by the holder prior to its
maturity.

This Debenture forms part of an aggregate $ 1,579,000 principal
amount of 7% secured convertible debentures of the Corporation (the
“Debentures”), issued concurrently herewith. The Debentures rank pari
passu amongst themselves and all other convertible debentures of the
Corporation issued prior to December 31, 2005.

The right is reserved to the Corporation to purchase Debentures
at any time or times in the market, by tender or by private contract.

The additional terms and conditions attached hereto as Schedule
“A” hereto are deemed to be incorporated herein.

IN WITNESS WHEREOF, the Corporation has caused this Debenture
to be signed as of October 21, 2005.

	 	RESPONSE BIOMEDICAL
      CORP. 
	 	 
	 	Per:	 
	 	 	 
	 	 	_______________________________________-

TRANSFER FORM

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto

________________________________________________________________________________________________________________________________

________________________________________________________________________________________________________________________________

(Please print or typewrite name and address of
assignee)

________________________________________________________________________________________________________________________________
the
within Debenture of Response Biomedical Corp. and hereby irrevocably constitutes
and appoints _______________________________ Attorney to transfer the said
Debenture on the registers of the Corporation for the 7% secured convertible
debentures due October 21, 2008 with full power of substitution in the
premises.

	Dated: ______________________________________	______________________________________
		(Signature of Transferor)
  

__________________________________
The signature of the
registered holder of the within Debenture to the foregoing assignment must be
guaranteed by a Canadian Schedule 1 chartered bank, a major trust company in
Canada, or a member of the Securities Transfer Association Medallion Program
(STAMP), the Stock Exchange Medallion Program (SEMP) or the New York Stock
Exchange Inc. Medallion Signature Program (MSP).

CONVERSION FORM

TO: RESPONSE BIOMEDICAL CORP.

          The
  undersigned registered holder of the within Debenture hereby irrevocably elects
  to convert such Debenture (or $_______________ principal amount thereof*) into
  Shares of Response Biomedical Corp. and directs that the Shares issuable and
  deliverable upon the conversion be issued and delivered to the person indicated
  below. (If Shares are to be issued in the name of a person other than the holder,
  all requisite transfer taxes must be tendered by the undersigned.)

	* 	
      If less than the full principal amount of the within
      Debenture is to be converted, indicate in the space provided the principal
      amount (which must be $10,000 or more) to be
converted.

	Dated:
      ____________________________________________________________	 	 
    
	  	 	(Signature of Registered Holder) 
	  	 	  
	Name:
      _____________________________________________________________	 	If securities are to be issued in the
      name of a person other than the holder, the signature must be guaranteed
      by a Canadian Schedule 1 chartered bank, a major trust company in Canada,
      or a member of the Securities Transfer Association Medallion Program
      (STAMP), the Stock Exchange Medallion Program (SEMP) or the New York Stock
      Exchange Inc. Medallion Signature Program. 
	  	 
	  	 
	  	 
	  	 
	(Address) 	 
	  	 

(Print name in which securities issued on conversion are to
be issued, delivered and registered)

SCHEDULE “A”

ADDITIONAL TERMS AND CONDITIONS ATTACHING TO THE 7% SECURED

CONVERTIBLE DEBENTURES OF RESPONSE BIOMEDICAL CORP.

	(a) 	
      Manner of Exercise of Right to Convert

	 	 	 
		(i) 	
      A holder of a Debenture (a “Debentureholder”)
      desiring to convert a Debenture in whole or in part shall surrender such
      Debenture to the Corporation at its office referred to above together with
      the Conversion Form attached to such Debenture, duly executed by the
      holder or his executors or administrators or other legal representatives
      or his or their attorney duly appointed by an instrument in writing,
      exercising his right to convert such Debenture in accordance with the
      provisions hereof. Thereupon, such Debentureholder or, subject to payment
      of all applicable stamp or security transfer taxes or other governmental
      charges, his nominee(s) or assignee(s), shall be entitled to be entered in
      the books of the Corporation as at the Date of Conversion (or such later
      date as is specified below) as the holder of the number of Shares into
      which such Debenture is convertible in accordance with the provisions
      hereof and, as soon as practicable thereafter, the Corporation shall
      deliver to such Debentureholder or, subject as aforesaid, his nominee(s)
      or assignee(s), a certificate or certificates for such Shares and, if
      applicable, a cheque for any amount payable hereunder.

	 	 	 
		(ii) 	
      For the purposes herein, a Debenture shall be deemed to
      be surrendered for conversion on the date (herein called “Date of
      Conversion”) on which it is so surrendered in accordance with the
      provisions of this section (a) and, in the case of a Debenture so
      surrendered by post or other means of transmission, on the date on which
      it is received by the Corporation at its office specified above; provided
      that if a Debenture is surrendered for conversion on a day on which the
      securities register of the Corporation is closed, the person or persons
      entitled to receive Shares shall become the holder or holders of record of
      such Shares as at the date on which such register is next
  reopened.

	 	 	 
		(iii) 	
      Any part, being $10,000 or more of a Debenture, may be
      converted as provided in this section (a) and all references herein to
      conversion of Debentures shall be deemed to include conversion of such
      parts.

	 	 	 
		(iv) 	
      The holder of any Debenture of which part only is
      converted shall, upon the exercise of his right of conversion, surrender
      the said Debenture to the Corporation, and the Corporation shall cancel
      the same and shall without charge forthwith certify and deliver to the
      holder a new Debenture or Debentures in an aggregate principal amount
      equal to the unconverted part of the principal amount of the Debenture so
      surrendered.

	 	 	 
		(v) 	
      The holder of a Debenture surrendered for conversion in
      accordance with the provisions hereof shall be entitled to receive accrued
      and unpaid interest in respect thereof up to the Date of Conversion of
      such Debenture, and the Shares issued upon such conversion shall rank only
      in respect of dividends declared in favour of shareholders of record on
      and after the Date of Conversion or such later date as such holder shall
      become the holder of record of such Shares pursuant to the provisions
      hereof, from which applicable date they will for all purposes be and be
      deemed to be issued and outstanding as fully paid and non-assessable
      Shares.

	 	 	 
	(b) 	
      Anti-Dilution

	 	 	 
		
      The Conversion Price in effect at any date shall be
      subject to adjustment from time to time, as

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	 	follows: 	  
	 	  	  
	 	(i) 	If the Corporation at any time, or from time to
      time after the date hereof, shall (1) subdivide its outstanding Shares
      into a greater number of shares, (2) reduce, combine or consolidate its
      outstanding Shares into a smaller number of shares or (3) issue Shares or
      Convertible Securities to the holders of any of its outstanding Shares by
      way of a stock dividend (other than an issue of Shares or Convertible
      Securities to shareholders pursuant to their exercise of options to
      receive dividends in the form of Shares in lieu of dividends declared
      payable by the Corporation on such shares), the Conversion Price in effect
      on the effective date of such subdivision, reduction, combination or
      consolidation or on the record date for such issue of Shares or
      Convertible Securities by way of a stock dividend, as the case may be,
      shall, in the case of the events referred to in (1) and (3) be decreased
      in proportion to the increase in the number of outstanding Shares
      resulting from such subdivision or dividend (including, in the case where
      Convertible Securities are issued, the number of Shares that would have
      been outstanding had such Convertible Securities been converted into
      Shares on such record date) or, in the case of (2) above, shall be
      increased in proportion to the decrease in the number of outstanding
      Shares resulting from such combination or consolidation; such adjustments
      shall be made successively whenever any event referred to in this
      subsection (i) shall occur; any such issue of Shares or Convertible
      Securities by way of a stock dividend shall be deemed to have been made on
      the record date for the stock dividend for the purpose of calculating the
      number of outstanding Shares hereunder. 
	 	  	  
	 	(ii) 	In case the Corporation shall fix a record date
      for the issuance of rights, options or warrants to all or substantially
      all the holders of its outstanding Shares entitling them, for a period
      expiring not more than 45 days after such record date, to subscribe for or
      purchase Shares (or Convertible Securities) at a subscription or purchase
      price per Share (or having a conversion price per Share) less than 95% of
      the Current Market Price on such record date, then the Conversion Price
      shall be adjusted immediately after such record date so that it shall
      equal the price determined by multiplying the Conversion Price in effect
      on such record date by a fraction, of which the numerator shall be the
      total number of Shares outstanding on such record date plus a number of
      Shares equal to the number arrived at by dividing the aggregate price of
      the total number of additional Shares offered for subscription or purchase
      (or the aggregate conversion price of the Convertible Securities so
      offered) by such Current Market Price per Share, and of which the
      denominator shall be the total number of Shares outstanding on such record
      date plus the total number of additional Shares offered for subscription
      or purchase (or into which the Convertible Securities so offered are
      convertible). Any Shares owned by or held for the account of the
      Corporation shall be deemed not to be outstanding for the purpose of any
      such computation. Such adjustments shall be made successively whenever
      such a record date is fixed. To the extent that such rights, options or
      warrants are not issued or any such rights, options or warrants are not
      exercised prior to the expiration thereof, the Conversion Price shall be
      readjusted to the Conversion Price which would then be in effect if such
      record date had not been fixed, or to the Conversion Price which would
      then be in effect based upon the number of Shares (or Convertible
      Securities) actually issued upon the exercise of such rights, options or
      warrants, as the case may be. 
	 	  	  
	 	(iii) 	In case the Corporation shall fix a record date
      for the making of a distribution to all or substantially all the holders
      of its outstanding Shares of (1) shares of any class other than Shares (or
      Convertible Securities) and other than shares distributed to shareholders
      pursuant to their exercise of options to receive dividends in the form of
      such shares in 

- 3 -

	 		
      lieu of dividends paid in the ordinary course on the
      Shares, or (2) rights, options or warrants (excluding rights, options or
      warrants referred to in subsection (b)(ii) and excluding rights, options
      or warrants to subscribe for or purchase Shares (or Convertible
      Securities) for a period expiring not more than 45 days after such record
      date at a price per Share (or having a conversion price per Share not less
      than 95% of the Current Market Price of a Share on such record date), or
      (3) evidences of its indebtedness, or (4) any assets (excluding dividends
      paid in the ordinary course and the value of any property distributed in
      lieu of such cash dividends at the option of shareholders), then in each
      such case the Conversion Price shall be adjusted immediately after such
      record date so that it shall equal the price determined by multiplying the
      Conversion Price in effect on such record date by a fraction, of which the
      numerator shall be the total number of Shares outstanding on such record
      date multiplied by the Current Market Price per Share on such record date,
      less the fair market value (as reasonably determined by the board of
      directors pursuant to subsection (b)(1)), of such shares or rights,
      options or warrants or evidences of indebtedness or assets so distributed,
      and of which the denominator shall be the total number of Shares
      outstanding on such record date multiplied by such Current Market Price
      per Share. Any Shares owned by or held for the account of the Corporation
      shall be deemed to be outstanding for the purpose of any such computation.
      Such adjustment shall be made successively whenever such a record date is
      fixed. To the extent that such distribution is not so made, the Conversion
      Price shall be readjusted to the Conversion Price which would then be in
      effect based upon such shares, or rights, options or warrants or evidence
      of indebtedness or assets actually distributed, as the case may
  be.

	 	 	 
	 		
      The Corporation shall not make a distribution to holders
      of Shares as described in this subsection (b)(iii) where the fair market
      value (as determined pursuant to subsection (b)(1) by the board of
      directors acting reasonably, which determination shall be conclusive) of
      the shares or rights, options or warrants or evidences of indebtedness or
      assets distributed exceeds the product of the Current Market Price per
      Share on the record date for such distribution and the total number of
      Shares outstanding on such record date unless the Debentureholders are
      permitted to participate in such distribution as though and to the same
      effect as if they had converted their Debentures into Shares immediately
      prior to the applicable record date.

	 	 	 
	 	(iv) 	
      In case of any reclassification or change (other than a
      change resulting from a consolidation or subdivision) of the Shares, or in
      case of any amalgamation, consolidation or merger of the Corporation with
      or into any other corporation, or in the case of any sale of the
      properties and assets of the Corporation as, or substantially as, an
      entirety to any other corporation, each Debenture shall, after such
      reclassification, change , amalgamation, consolidation, merger or sale, be
      convertible into the number of shares or kind and amount of other
      securities or property of the Corporation, or such continuing, successor
      or purchasing corporation, as the case may be, as that which a holder of
      the number of Shares as would have been issued if such Debenture had been
      converted immediately prior to such reclassification, change,
      amalgamation, consolidation, merger or sale would have been entitled upon
      such reclassification, change, amalgamation, consolidation, merger or
      sale. The board of directors may accept the certificate of any firm of
      independent chartered accountants (who may be the auditors of the
      Corporation) as to the foregoing calculation, and the board of directors
      may determine such entitlement on the basis of such certificate. Any such
      determination, based upon the certificate of independent chartered
      accountants and the determination of the board of directors acting
      reasonably, shall be conclusive and

- 4 -

	 		binding on the Corporation and the holders of
      the Debentures. No such reclassification, change, amalgamation,
      consolidation, merger or sale shall be carried into effect unless, in the
      opinion of counsel, all necessary steps shall have been taken to ensure
      that the holders of the Debentures shall thereafter be entitled to receive
      such number of shares or other securities or property of the Corporation,
      or such continuing, successor or purchasing corporation, as the case may
      be, subject to adjustment thereafter in accordance with provisions
      similar, as nearly as may be, to those contained herein. 
	 	  	  
	 	For the purposes of this section (b), the
      following subsections (1) through (8) shall be applicable. 
	 	  	  
	 	(1) 	Determination of Consideration 
	 	  	  
	 		In case at any time after the date hereof any
      Shares, Convertible Securities or other shares or securities or any
      rights, options or warrants to subscribe for, purchase or otherwise
      acquire any thereof, shall be issued or sold for a consideration other
      than cash or bona fide debts of the Corporation (or a consideration
      which includes cash, if such cash constitutes a part of the assets which
      are being received as such consideration), then for the purposes of this
      section (b), the board of directors shall in good faith determine the fair
      market value of all such consideration, using such expert appraisers or
      valuers as the board may deem qualified, and such Shares, Convertible
      Securities, other shares or securities, rights, options or warrants shall
      be deemed to have been issued or sold for an amount of cash equal to the
      value so determined in good faith. In case any Shares, Convertible
      Securities, or other shares or securities, or any rights, options or
      warrants to subscribe for, purchase or otherwise acquire any thereof,
      shall be issued or sold together with other shares or securities or other
      assets or consideration which covers both, the board of directors shall,
      in good faith, determine the appropriate allocation of such consideration.
    
	 	  	  
	 	(2) 	Notice of Record Date 
	 	  	  
	 		The Corporation shall give to the holders of
      the Debentures at least fourteen (14) days notice of the record date for
      any of the events set forth above other than a subdivision, consolidation
      or reclassification of the Shares. 
	 	  	  
	 	(3) 	No Adjustment to be Made 
	 	  	  
	 		No adjustments of the Conversion Price shall be
      made pursuant to subsections (i)(3), (ii) or (iii) of this section (b) if
      the holders of the Debentures are permitted to participate in the issue of
      such Shares, Convertible Securities, rights, options or warrants or such
      distribution, as the case may be, as though and to the same effect as if
      they had converted their Debentures prior to the issue of such Shares,
      Convertible Securities, rights, options or warrants or such distribution,
      as the case may be. Such participation is subject to the prior written
      consent of the TSX Venture Exchange or such other stock exchanges or
      trading quotation systems upon which the Shares may then be listed or
      quoted for trading. 
	 	  	  
	 	(4) 	Shares Considered Outstanding 
	 	  	  
	 		The number of Shares outstanding at any given
      time shall exclude Shares in the treasury of the Corporation.
  

- 5 -

	 	(5) 	
      Duration of Adjusted Conversion Price

	 	 	 
	 		
      Following each computation or re-adjustment of the
      Conversion Price as provided herein, the newly computed Conversion Price
      shall remain in effect until a further computation or re-adjustment
      thereof is required herein.

	 	 	 
	 	(6) 	
      No Adjustment if Increase or Decrease Less Than
      1%

	 	 	 
	 		
      No adjustment of the Conversion Price shall be made in
      any case in which the resulting increase or decrease of the Conversion
      Price would be less than 1% of the then Conversion Price, but in such case
      any adjustment that would otherwise have been required then to be made
      shall be carried forward and made at the time of, and together with, the
      next subsequent adjustment of the Conversion Price which, together with
      any and all such adjustments so carried forward, shall result in an
      increase or decrease in the Conversion Price by not less than
1%.

	 	 	 
	 	(7) 	
      Deferring Adjustment

	 	 	 
	 		
      In any case in which this section (b) shall require that
      an adjustment become effective immediately after a record date for an
      event referred to herein, the Corporation may defer, until the occurrence
      of such event, issuing to the holder of any Debenture converted after such
      record date and before the occurrence of such event the additional Shares
      issuable upon such conversion by reason of the adjustment required by such
      event before giving effect to such adjustment, provided, however, that the
      Corporation shall deliver to such holder an appropriate instrument
      evidencing such holder’s right to receive additional Shares upon the
      occurrence of the event requiring such adjustment and the right to receive
      any distribution made on such additional Shares declared in favour of
      holders of record of Shares on and after the Date of Conversion or such
      later date as such holder would, but for the provisions of this subsection
      (7), have become the holder of record of such additional Shares pursuant
      to subsection (a)(ii).

	 	 	 
	 	(8) 	
      Determination by Auditors

	 	 	 
	 		
      In the event of any question arising with respect to the
      adjustments provided herein, such questions shall be conclusively
      determined by a firm of chartered accountants appointed by the Corporation
      (who may be the auditors of the Corporation), such accountants shall have
      access to all necessary records of the Corporation and such determination
      shall be binding upon the Corporation and the
  Debentureholders.

	(c) 	
      Anti-Avoidance and Reservation of Shares

	 	 
		
      The Corporation will not, by amendment of its charter or
      through reorganization, consolidation, merger, dissolution, issue or sale
      of securities, sale of assets or any other voluntary action avoid or seek
      to avoid the observance or performance of any of the conversion terms of
      the Debentures, but will at all times, in good faith, assist in the
      carrying out of all such terms and in the taking of all such actions as
      may be necessary or appropriate in order to protect the rights of the
      Debentureholders against dilution or other impairment, to the extent not
      covered by the provisions hereof. Without limiting the generality of the
      foregoing, the Corporation covenants that it will at all times reserve and
      keep available out of its authorized shares, solely for the purpose of
      issue upon conversion of Debentures as herein provided, such number of the
      Shares as

- 6 -

		
      shall then be issuable upon the conversion of all
      outstanding Debentures. All Shares which shall be so issuable shall be
      duly and validly issued as fully paid and non-assessable.

	 	 	 
	(d) 	
      Notice of Adjustment to Conversion Price

	 	 	 
		
      In each case of adjustment in the Conversion Price, the
      Corporation shall forthwith mail to each Debentureholder a certificate of
      a firm of independent chartered accountants of recognized standing
      selected by the Corporation (who may be the auditors of the Corporation
      and whose computation made in accordance with the requirements herein
      shall be final and binding on the Corporation) setting forth such
      adjustment and showing in detail the facts upon which such adjustment is
      based.

	 	 	 
	(e) 	
      Cancellation of Converted Debentures

	 	 	 
		
      All Debentures converted in whole or in part under the
      provisions hereof shall be forthwith delivered to the Corporation and
      cancelled and, subject to the provisions hereof, no Debenture shall be
      issued in substitution therefor.

	 	 	 
	(f) 	
      Issue of Certificate Without Charge

	 	 	 
		
      The issuance of certificates for the Shares upon the
      conversion of Debentures shall be made without charge to the converting
      Debentureholders.

	 	 	 
	(g) 	
      Manner of Exercise of Right of Redemption by
      Corporation

	 	 	 
		(i) 	
      The Corporation may redeem this Debenture provided that
      the Redemption Condition is met and subject to any required regulatory
      approval. To exercise the right to redeem, the Corporation shall mail to
      the Debentureholder within five days after the Redemption Date, a notice
      stating how the Redemption Condition has been met and enclosing a cheque
      and/or Share certificate, as applicable, representing the principal and
      all accrued interest as of the Redemption Date. If the Corporation elects
      to redeem the Debenture for Shares of the Corporation, the number of
      Shares to be issued to the Debentureholder shall be calculated by dividing
      the aggregate amount of principal and accrued interest outstanding on the
      Redemption Date by the Current Market Price of the Shares as of the
      Redemption Date. Redemption by the Corporation pursuant to this paragraph
      shall be a full and complete discharge of the Corporation’s obligations
      hereunder.

	 	 	 
		(ii) 	
      The holder of a Debenture redeemed by the Corporation in
      accordance with the provisions hereof shall be entitled to receive accrued
      and unpaid interest in respect thereof up to the Date of Redemption of
      such Debenture, and the Shares issued upon such redemption shall rank only
      in respect of dividends declared in favour of shareholders of record on
      and after the Date of Redemption or such later date as such holder shall
      become the holder or record of such Shares pursuant to the provisions
      hereof, from which applicable date they will for all purposes be and be
      deemed to be issued and outstanding as fully paid and non-assessable
      Shares.

	 	 	 
	(h) 	
      No Fractional Shares to Issue

	 	 	 
		
      No fractional Shares shall be issued upon the conversion
      or redemption of any Debenture or the payment of any interest in Shares
      pursuant to the Share Interest Election. If the conversion of any
      Debenture, redemption of any Debenture or payment of interest in Shares
      results in a fraction of a

- 7 -

		
      Share, an amount equal to such fraction multiplied by the
      Current Market Price of the Shares on the day prior to the Date of
      Conversion, Date of Redemption or Interest Payment Date, respectively,
      shall be paid to such holder in lawful money of Canada.

	 	 	 
	(i) 	
      Acceleration of Maturity

	 	 	 
		
      Upon the happening of any one or more of the following
      events, namely:

	 	 	 
		(i) 	
      if the Corporation makes default in payment of the
      principal on any Debenture when the same becomes due and payable under any
      provision hereof or of the Debentures;

	 	 	 
		(ii) 	
      if the Corporation makes default in payment of any
      interest due on any Debenture and any such default continues for a period
      of 15 days;

	 	 	 
		(iii) 	
      a decree or order by a court having jurisdiction is
      entered resulting from the commencement of proceedings against the
      Corporation by a third party and adjudging the Corporation or any other
      subsidiary, the assets of which are material having regard to the
      consolidated assets of the Corporation and its subsidiaries (herein called
      a “Substantial Subsidiary”) a bankrupt or insolvent, or approving
      as properly filed a petition seeking reorganization, arrangement or
      winding-up of the Corporation or any Substantial Subsidiary under any
      bankruptcy, or insolvency or analogous laws, including, without
      limitation, the Companies’ Creditors Arrangement Act (Canada), or
      appointing a receiver of the Corporation or any Substantial Subsidiary or
      ordering the dissolution or liquidation of its affairs, and such decree or
      order continues unstayed, undischarged and in effect for a period of 60
      days from the date thereof;

	 	 	 
		(iv) 	
      a resolution is passed for the winding-up or liquidation
      of the Corporation or if the Corporation or a Substantial Subsidiary
      institutes proceedings to be adjudicated a bankrupt or insolvent, or
      consents to the institution of bankruptcy or insolvency proceedings
      against it, or files a petition, answer or consent seeking
      reorganizational relief under any bankruptcy, insolvency or analogous
      laws, including, without limitation, the Companies’ Creditors
      Arrangement Act (Canada), or consents to the filing of any such
      petition or to the appointment of a receiver of or of any substantial part
      of the property of the Corporation or any Substantial Subsidiary or makes
      a general assignment for the benefit of creditors, or the Corporation
      admits in writing its inability to pay its debts generally as they become
      due, or a resolution is passed by the Corporation’s directors or
      shareholders authorizing the Corporation to do any of the foregoing,
      unless such resolution is rescinded prior to the taking of any irrevocable
      actions thereunder;

	 	 	 
		(v) 	
      if an event of default, as defined in any indenture or
      instrument under which the Corporation has at the time of this Debenture
      or shall hereafter have outstanding any indebtedness for borrowed money
      which matures by its terms, or which is renewable at the option of the
      payor, to a date more than 18 months after the creation, assumption or
      guarantee thereof, shall happen and be continuing and such indebtedness
      shall have accelerated so that an amount in excess of $500,000 shall be or
      become due and payable prior to the date on which the same would otherwise
      have become due and payable, and such acceleration shall not be rescinded
      or annulled, or such event of default under such indenture or instrument
      shall not be remedied or cured, whether by payment or otherwise, or waived
      by the holders of such indebtedness, within 60 days after such
      acceleration shall have occurred; or

- 8 -

		(vi) 	
      if the Corporation shall neglect to observe or perform
      any other covenant or obligation herein contained on its part to be
      observed or performed and, after notice in writing has been given to the
      Corporation specifying such default and requiring the Corporation to put
      an end to same, the Corporation shall fail to make good such default
      within a period of 60 days;

	 	 	 	 
		
      then the principal of and interest on all Debentures then
      outstanding and all other moneys outstanding hereunder shall be due and
      payable and the same shall forthwith become immediately due and payable to
      the Debentureholders, anything therein or herein to the contrary
      notwithstanding, and the Corporation shall forthwith pay to the
      Debentureholders the principal of and accrued and unpaid interest,
      together with interest at the rate borne by the Debentures on such
      principal, interest and such other moneys from the date of the said
      declaration. Such payment when made shall be deemed to have been made in
      discharge of the Corporation’s obligations hereunder.

	 	 	 	 
	(j) 	
      Security Interest

	 	 	 	 
		
      As general and continuing security for the payment of all
      indebtedness and liability of the Corporation to the Debentureholder
      (including interest thereon) relating to or arising out of this Debenture,
      present and future, absolute or contingent, matured or not, extended or
      renewed, and any ultimate balance thereof, including all advances on
      current and running account, future advances and re-advances, and for the
      performance of all obligations of the Corporation to the Debentureholder
      relating to or arising out of this Debenture (all of which indebtedness,
      liabilities and obligations are hereinafter collectively called the
      “Obligations”), the Corporation does hereby:

	 	 	 	 
		(i) 	
      mortgage and charge as and by way of a fixed and specific
      charge, and assign and transfer to the Debentureholder, and grant to the
      Debentureholder a security interest in, all the Corporation’s right, title
      and interest in and to all its presently owned or held and after acquired
      or held personal property, of whatever nature or kind and wheresoever
      situate, and all proceeds thereof and therefrom including:

	 	 	 	 
			(A) 	
      all equipment, including, without limiting the generality
      of the foregoing, machinery, tools, fixtures, furniture, furnishings,
      chattels, motor vehicles and other tangible personal property that is not
      Inventory, and all parts, components, attachments, accessories,
      accessions, replacements, substitutions, additions and improvements to any
      of the foregoing (all of which is hereinafter collectively called the
      “Equipment”);

	 	 	 	 
			(B) 	
      all inventory, including, without limiting the generality
      of the foregoing, goods acquired or held for sale or lease or furnished or
      to be furnished under contracts of rental or service, all raw materials,
      work in process, finished goods, returned goods, repossessed goods, and
      all packaging materials, supplies and containers relating to or used or
      consumed in connection with any of the foregoing (all of which is
      hereinafter collectively called the “Inventory”);

	 	 	 	 
			(C) 	
      all debts, accounts, claims, demands, monies and chooses
      in action which now are, or which may at any time hereafter be, due or
      owing to or owned by the Corporation and all books, records, documents,
      papers and electronically recorded data recording, evidencing or relating
      to the said debts, accounts,

- 9 -

	 		
      claims, demands, monies and chooses in action or any part
      thereof (all of which is hereinafter collectively called the
      “Accounts”);

	 	 	 
	 	(D) 	
      all documents of title, chattel paper, instruments,
      securities and money, and all other goods of the Corporation that are not
      Equipment, Inventory or Accounts; and

	 	 	 
	 	(E) 	
      all contractual rights, licenses, goodwill, patents,
      trademarks, trade names, copyrights and other intellectual property of the
      Corporation, all other chooses in action of the Corporation of every kind
      which now are, or which may at any time hereafter be, due or owing to or
      owned by the Corporation, and all other intangible property of the
      Corporation which is not Accounts, chattel paper, instruments, documents
      of title, securities or money; and

	 	(ii) 	
      charge as and by way of a floating charge, and grant to
      the Debentureholder a security interest in and to:

	 	 	 	 
	 		(A) 	
      all the Corporation’s right, title and interest in and to
      all its presently owned or held and after acquired or held real, immovable
      and leasehold property and all interests therein, and all easements,
      rights-of-way, privileges, benefits, licences, improvements and rights
      whether connected therewith or appurtenant thereto or separately owned or
      held, including all structures, plant and other fixtures (all of which is
      hereinafter collectively called the “Real Property”); and

	 	 	 	 
	 		(B) 	
      all assets and undertakings of the Corporation, of
      whatsoever nature or kind and wheresoever situate, and all proceeds
      thereof and therefrom, other than such of its assets and undertakings as
      are otherwise validly and effectively subject to the charges and security
      interests in favour of the Debentureholder created pursuant to this
      section (j).

The charges, assignments and transfers
and security interests created pursuant to this section (j) are hereinafter
collectively called the “Security Interests” and the property subject to the
Security Interests and all property, assets and undertakings, expressed to be
charged, assigned or transferred or secured by any instruments supplemental
hereto or in implementation hereof are hereinafter collectively called the
“Collateral”.

	(k) 	
      Exceptions

	 	 	 
		(i) 	
      The last 10 days of the term created by any lease or
      agreement therefor are hereby excepted out of any charge or security
      interest created by this Debenture but the Corporation shall stand
      possessed of the reversion thereby remaining upon trust to assign and
      dispose thereof to any third party as the Debentureholder shall
    direct.

	 	 	 
		(ii) 	
      If any lease or other agreement contains a provision
      which provides in effect that such lease or agreement may not be assigned,
      subleased, charged or encumbered without the leave, licence, consent or
      approval of the lessor, the application of the security interest created
      pursuant to this Debenture to any such lease or agreement is conditional
      upon such leave, licence, consent or approval having been obtained and the
      security interest created hereby will attach to such lease or agreement as
      soon as such leave, licence, consent or approval is
  obtained.

- 10 -

		(iii) 	
      The following are hereby excepted out of the Security
      Interests created by this Debenture:

	 	 	 	 
			(A) 	
      all consumer goods of the Corporation;

	 	 	 	 
			(B) 	
      the equipment jointly owned with Inex Pharmaceuticals
      Corporation, and referenced in Section 5.2 and Schedule E of the Sublease
      Agreement between the Corporation and Inex Pharmaceuticals Corporation
      dated August 19, 2005;

	 	 	 	 
			(C) 	
      Equipment listed in Schedule A of this Agreement, “List
      of Permitted Encumbrances”.

	 	 	 	 
	(l) 	
      Attachment

	 	 	 	 
		
      The Corporation acknowledges that the Security Interests
      hereby created attach upon the execution of this Debenture (or in the case
      of any after acquired property, upon the date of acquisition thereof),
      that value has been given, and that the Corporation has (or in the case of
      any after acquired property, will have upon the date of acquisition)
      rights in the Collateral.

	 	 	 	 
	(m) 	
      Prohibitions

	 	 	 	 
		
      Without the prior written consent of the Debentureholder,
      other than the issuance of convertible debentures of the Corporation prior
      to December 31, 2005 which rank pari passu with the Security
      Interests created by this Debenture, the Corporation shall not have power
      to:

	 	 	 	 
		(i) 	
      create or permit to exist any security interest in,
      charge, encumbrance or lien over, or claim against any of its property,
      assets, or undertakings which ranks or could in any event rank in priority
      to or pari passu with any of the Security Interests created by this
      Debenture, other than the encumbrances listed on Schedule “A” attached
      hereto; or

	 	 	 	 
		(ii) 	
      grant, sell, or otherwise assign its chattel
  paper.

	 	 	 	 
	(n) 	
      Covenants of the Corporation Relating to the
      Collateral

	 	 	 	 
		
      The Corporation covenants that at all times while this
      Debenture remains in effect the Corporation will:

	 	 	 	 
		(i) 	
      defend the title to the Collateral for the benefit of the
      Debentureholder against the claims and demands of all persons;

	 	 	 	 
		(ii) 	
      fully and effectually maintain and keep maintained the
      Security Interests hereby created valid and effective;

	 	 	 	 
		(iii) 	
      maintain the Collateral in good order and
  repair;

	 	 	 	 
		(iv) 	
      forthwith pay:

	 	 	 	 
			(A) 	
      all taxes, assessments, rates, duties, levies, government
      fees, claims and dues lawfully levied, assessed or imposed upon it or the
      Collateral when due, unless the Corporation shall in good faith contest
      its obligations so to pay and shall furnish such security as the
      Debentureholder may require; and

- 11 -

	 	(B)	
      all security interests, charges, encumbrances, liens and
      claims which rank or could in any event rank in priority to any Security
      Interest created by this Debenture;

	 	(v) 	
      at the Debentureholder’s request at any time and from
      time to time execute and deliver such further and other documents and
      instruments and do all acts and things as the Debentureholder in its
      absolute discretion requires in order to confirm and perfect, and maintain
      perfection of, the Security Interests hereby created in favour of the
      Debentureholder upon any of the Collateral;

	 	 	 	 
	 	(vi) 	
      notify the Debentureholder promptly of:

	 	 	 	 
	 		(A) 	
      any change in the information contained herein relating
      to the Corporation, its business or the Collateral, including without
      limitation any change of name or address of the Corporation and any change
      in the present location of any Collateral;

	 	 	 	 
	 		(B) 	
      the details of any material acquisition of
    Collateral;

	 	 	 	 
	 		(C) 	
      any material loss or damage to Collateral;

	 	 	 	 
	 		(D) 	
      any material default by any account debtor in payment or
      other performance of his obligations to the Corporation with respect to
      any Accounts; and

	 	 	 	 
	 		(E) 	
      the return to or repossession by the Corporation of
      Collateral where such return or repossession of Collateral is material in
      relation to the business of the Corporation;

	 	(vii) 	
      prevent Collateral, other than Inventory sold, leased, or
      otherwise disposed of as permitted hereby, from being or becoming an
      accession to other property not covered by this Debenture; and

	 	 	 
	 	(viii) 	
      carry on and conduct its business in a proper and
      business-like manner, including maintenance of proper books of account and
      records.

	(o) 	
      Performance of Obligations

	 	 	 
		
      If the Corporation fails to perform its obligations
      hereunder, the Debentureholder may, but shall not be obliged to, perform
      any or all of such obligations without prejudice to any other rights and
      remedies of the Debentureholder hereunder, and any payments made and any
      costs, charges, expenses and legal fees and disbursements (on a solicitor
      and his own client basis) incurred in connection therewith shall be
      payable by the Corporation to the Debentureholder forthwith with interest
      until paid at the highest rate borne by any of the Obligations.

	 	 	 
	(p) 	
      Restrictions on Sale or Disposal of
    Collateral

	 	 	 
		(i) 	
      Except as herein provided, without the prior written
      consent of the Debentureholder the Corporation will not:

	 	 	 
			 (A)          
        sell, lease or otherwise dispose of the Collateral;

- 12 -

	 	(B) 	
      release, surrender or abandon possession of the
      Collateral; or

	 	 	 
	 	(C) 	
      move or transfer the Collateral from the jurisdictions in
      which the Security Interests hereby created have been
  perfected.

	 	(ii) 	
      Provided that the Corporation is not in default under
      this Debenture, at any time without the consent of the Debentureholder the
      Corporation may lease, sell, license, consign or otherwise deal with items
      of Inventory in the ordinary course of its business and for the purposes
      of carrying on its business.

	(q) 	
      Enforcement

	 	 	 	 
		(i) 	
      Upon the occurrence of any event described in section (i)
      the security hereby constituted will become enforceable. To enforce and
      realize on the Security Interests created by this Debenture the
      Debentureholder may take any action permitted by law or in equity, as it
      may deem expedient, and in particular and without limiting the generality
      of the foregoing, the Debentureholder may do any of the
  following:

	 	 	 	 
			(A) 	
      appoint by instrument a receiver, receiver and manager or
      receiver manager (the person so appointed being hereinafter called the
      “Receiver”) of the Collateral, with or without bond as the
      Debentureholder may determine, and from time to time in its absolute
      discretion remove such Receiver and appoint another in its
stead;

	 	 	 	 
			(B) 	
      enter upon any premises of the Corporation and take
      possession of the Collateral with power to exclude the Corporation, its
      agents and its servants therefrom, without becoming liable as a mortgagee
      in possession;

	 	 	 	 
			(C) 	
      preserve, protect and maintain the Collateral and make
      such replacements thereof and repairs and additions thereto as the
      Debentureholder may deem advisable;

	 	 	 	 
			(D) 	
      sell, lease or otherwise dispose of all or any part of
      the Collateral, whether by public or private sale or lease or otherwise,
      in such manner, at such price as can be reasonably obtained therefor and
      on such terms as to credit and with such conditions of sale and
      stipulations as to title or conveyance or evidence of title or otherwise
      as to the Debentureholder may seem reasonable, provided that if any sale,
      lease or other disposition is on credit the Corporation will not be
      entitled to be credited with the proceeds of such sale, lease or other
      disposition until the monies therefor are actually received; and

	 	 	 	 
			(E) 	
      exercise all of the rights and remedies of a secured
      party under the Act.

	 	(ii) 	
      A Receiver appointed pursuant to this Debenture shall be
      the agent of the Corporation and not of the Debentureholder and, to the
      extent permitted by law or to such lesser extent permitted by its
      appointment, shall have all the powers of the Debentureholder hereunder,
      and in addition shall have power to carry on the business of the
      Corporation and for such purpose from time to time to borrow money either
      secured or unsecured, and if secured by a security interest on any
      Collateral, such security interest may rank before or pari passu
      with or behind any of the Security Interests created by
  this

- 13 -

	 		
      Debenture, and if it does not so specify such security
      interest shall rank in priority to the Security Interests created by this
      Debenture.

	 	 	 	 	 
	 	(iii) 	
      Subject to the claims, if any, of the creditors of the
      Corporation ranking in priority to this Debenture, all amounts realized
      from the disposition of Collateral pursuant to this Debenture will be
      applied as the Debentureholder, in its absolute discretion, may direct as
      follows:

	 	 	 	 	 
	 		(A) 	
      in payment of all costs, charges and expenses (including
      legal fees and disbursements on a solicitor and his own client basis)
      incurred by the Debentureholder in connection with or incidental
  to:

	 	 	 	 	 
	 			(1) 	
      the exercise by the Debentureholder of all or any of the
      powers granted to it pursuant to this Debenture; and

	 	 	 	 	 
	 			(2) 	
      the appointment of the Receiver and the exercise by the
      Receiver of all or any of the powers granted to it pursuant to this
      Debenture, including the Receiver's reasonable remuneration and all
      outgoings properly payable to the Receiver;

	 	 	 	 	 
	 		(B) 	
      in or toward payment to the Debentureholder of all
      principal and other monies (except interest) due in respect of the
      Obligations; and

	 	 	 	 	 
	 		(C) 	
      in or toward payment to the Debentureholder of all
      interest remaining unpaid in respect of the Obligations.

	 	 	 	 	 
	 	(iv) 	
      Subject to applicable law and the claims, if any, of
      other creditors of the Corporation, any surplus will be paid to the
      Corporation.

	 	 	 	 	 
	 	(v) 	
      If the amounts realized from the disposition of the
      Collateral are not sufficient to pay the Obligations in full, the
      Corporation will immediately pay to the Debentureholder the amount of such
      deficiency.

	 	 	 	 	 
	 	(vi) 	
      The Debentureholder shall not be responsible or liable
      for any debts contracted by it, for damages to persons or property or for
      salaries or non-fulfillment of contracts during any period when the
      Debentureholder shall manage the Collateral upon entry, as herein
      provided, nor shall the Debentureholder be liable to account as a
      mortgagee in possession or for anything except actual receipts or be
      liable for any loss on realization or for any default or omission for
      which a mortgagee in possession may be liable. The Debentureholder shall
      not be bound to do, observe or perform or to see to the observance or
      performance by the Corporation of any obligations or covenants imposed
      upon the Corporation nor shall the Debentureholder, in the case of
      securities, instruments or chattel paper, be obliged to preserve rights
      against other persons, nor shall the Debentureholder be obliged to keep
      any of the Collateral identifiable. The Corporation hereby waives any
      applicable provision of law permitted to be waived by it which imposes
      higher or greater obligations upon the Debentureholder than
    aforesaid.

	 	 	 	 	 
	 	(vii) 	
      The Corporation hereby irrevocably appoints the
      Debentureholder or the Receiver, as the case may be, with full power of
      substitution, to be the attorney of the Corporation for and in the name of
      the Corporation to sign, endorse or execute under seal or otherwise any
      deeds, documents, transfers, cheques, instruments, demands,
      assignments,

- 14 -

		
       
	
      assurances or consents that the Corporation is obliged to
      sign, endorse or execute and generally to use the name of the Corporation
      and to do all things as may be necessary or incidental to the exercise of
      all or any of the powers conferred on the Debentureholder or the Receiver,
      as the case may be, pursuant to this Debenture.

	 	 	 	 
		(viii) 	
      Notwithstanding any other provision of this Debenture,
      after the occurrence of an event described in section (i) the
      Debentureholder may collect, realize, sell or otherwise deal with the
      Accounts or any part thereof in such manner, upon such terms and
      conditions and at such time or times as may seem to it advisable, and
      without notice to the Corporation, except in the case of disposition after
      default and then subject to the provisions of Part 5 of the Act. All
      monies or other forms of payment received by the Corporation in payment of
      any Account will be received and held by the Corporation in trust for the
      Debentureholder.

	 	 	 	 
		(ix) 	
      The Debentureholder may from time to time and at any time
      waive in whole or in part any right, benefit or default under any clause
      of this Debenture but any such waiver of any right, benefit or default on
      any occasion shall be deemed not to be a waiver of any such right, benefit
      or default thereafter, or of any other right, benefit or default, as the
      case may be. No waiver shall be effective unless it is in
  writing.

	 	 	 	 
		(x) 	
      The Debentureholder may grant extensions of time and
      other indulgences, take and give up security, accept compositions,
      compound, compromise, settle, grant releases and discharges, refrain from
      perfecting or maintaining perfection of security interests, and otherwise
      deal with the Corporation, account debtors of the Corporation, sureties
      and others and with Collateral and other security interests as the
      Debentureholder may see fit without prejudice to the liability of the
      Corporation or the Debentureholder’s right to hold and realize on the
      Security Interests created by this Debenture.

	 	 	 	 
		(xi) 	
      This Debenture shall not operate so as to create any
      merger or discharge of any of the Obligations, or of any assignment,
      transfer, guarantee, lien, contract, promissory note, bill of exchange or
      security interest of any form held or which may hereafter be held by the
      Debentureholder from the Corporation or from any other person whomsoever.
      The taking of a judgment with respect to any of the Obligations will not
      operate as a merger of any of the covenants contained in this
      Debenture.

	 	 	 	 
		(xii) 	
      All rights and remedies of the Debentureholder set out in
      this Debenture, and in any other security agreement held by the
      Debentureholder from the Corporation or any other person whomsoever to
      secure payment and performance of the Obligations, are cumulative and no
      right or remedy contained herein or therein is intended to be exclusive
      but each is in addition to every other right or remedy contained herein or
      therein or in any future security agreement, or now or hereafter existing
      at law, in equity or by statute, or pursuant to any other agreement
      between the Corporation and the Debentureholder that may be in effect from
      time to time.

	 	 	 	 
	(r) 	
      Interpretation

	 	 	 	 
		(i) 	
      In this Debenture:

	 	 	 	 
			(A) 	
      “Collateral” has the meaning set out in section (j) and
      any reference to Collateral shall, unless the context otherwise requires,
      be deemed to be a reference to Collateral as a whole or any part thereof;
      and

- 15 -

	 	(B) 	
      “the Act” means the Personal Property Security Act
      (British Columbia) and all regulations thereunder, as amended from
      time to time.

	 	(ii) 	
      Words and expressions used in this Debenture that have
      been defined in the Act shall be interpreted in accordance with their
      respective meanings given in the Act unless otherwise defined herein or
      unless the context otherwise requires.

	 	 	 	 
	 	(iii) 	
      The invalidity or unenforceability of the whole or any
      part of any provision of this Debenture shall not affect the validity or
      enforceability of any other provision or the remainder of such
      provision.

	 	 	 	 
	 	(iv) 	
      All references to currency herein are to lawful Canadian
      currency.

	 	 	 	 
	 	(v) 	
      The headings of the clauses of this Debenture have been
      inserted for reference only and do not define, limit, alter or enlarge the
      meaning of any provision of this Debenture.

	 	 	 	 
	 	(vi) 	
      The Corporation hereby:

	 	 	 	 
	 		(A) 	
      acknowledges receiving a copy of this Debenture;
    and

	 	 	 	 
	 		(B) 	
      waives all rights to receive from the Debentureholder a
      copy of any financing statement or financing change statement filed, or
      any verification statement received, at any time in respect of this
      Debenture.

	 	(vii) 	
      For the purposes of Section 203 of the Land Title Act
      (British Columbia), the floating charge created by this Debenture over
      Real Property shall become a fixed charge thereon upon the earliest
    of:

	 	 	 	 
	 		(A) 	
      the occurrence of an event described in section (i)(iii)
      and (iv); or

	 	 	 	 
	 		(B) 	
      the Debentureholder taking any action pursuant to section
      (q) to enforce and realize on the Security Interests created by this
      Debenture.

	(s) 	
      Governing Law

	 	 
		
      This Debenture shall be governed by the laws of the
      Province of British Columbia.

	 	 
	(t) 	
      Definitions

	 	 
		
      The following words and phrases shall have the following
      meanings herein:

	 	 
		
      “auditors of the Corporation” means an independent
      firm of chartered accountants duly appointed as auditors of the
      Corporation;

	 	 
		
      “Conversion Price” means the dollar amount for
      which each Share may be issued from time to time upon the conversion of
      Debentures;

	 	 
		
      “Convertible Securities” means any form of
      security or evidence of indebtedness which, by the terms, allows the
      holder thereof to convert the same into
Shares;

- 16 -

“Current Market Price”, as at
any date when the Current Market Price is to be determined, means the Volume
Weighted Average Trading Price at which the Shares of the Corporation have
traded during 20 consecutive trading days commencing not more than 30 trading
days before such date and ending not less than five trading days before such
date. In the event the Shares are not traded on any stock exchange or trading
quotation system in Canada, the Current Market Price thereof shall be determined
by the board of directors which determination shall be conclusive;

“dividends paid in the ordinary
course” means cash dividends declared payable on the Shares in any fiscal
year of the Corporation to the extent that such cash dividends do not exceed, in
the aggregate, the greatest of: (i) 200% of the aggregate amount of cash
dividends declared payable by the Corporation on the Shares in its immediately
preceding fiscal year; (ii) 300% of the arithmetic mean of the aggregate amounts
of cash dividends declared payable by the Corporation on the Shares in its three
immediately preceding fiscal years; and (iii) 100% of the aggregate consolidated
net earnings of the Corporation, before extraordinary items, for its immediately
preceding fiscal year;

“Shares” means the voting common
shares in the capital of the Corporation as such shares exist at the close of
business on the date of execution and delivery of this Debenture, provided that
in the event of a subdivision, redivision, reduction, combination or
consolidation thereof, or successive such subdivisions, redivisions, reductions,
combinations or consolidations then, subject to adjustments, if any, having been
made in accordance with the provisions of section (b) of these Terms and
Conditions, “Shares” shall thereafter mean the shares resulting from such
change, subdivision, redivision, reduction, combination or consolidation;

“subsidiary” means any
corporation of which more than 50% of the outstanding voting shares are owned,
directly or indirectly, by or for the Corporation, provided that the ownership
of such shares confers the right to elect at least a majority of the board of
directors of such corporation and includes any corporation in like relation to a
Subsidiary; and

“Volume Weighted Average Trading
Price” means the price determined by dividing the aggregate sale price of
all Shares sold on the TSX Venture Exchange during the specified period by the
total volume of Shares so sold, provide that if no Shares are traded during the
specified period, the most recent number of specified trading days on which the
Shares did trade shall be used. In the event such Shares are not listed on the
TSX Venture Exchange but are listed on another stock exchange or trading
quotation system in Canada, the foregoing references to the TSX Venture Exchange
shall be deemed to be references to such other stock exchange or trading
quotation system, or, if more than one, the most senior stock exchange or
trading quotation system as shall be designated by the board of directors. In
the event the Shares are not traded on any stock exchange or trading quotation
system in Canada, the Volume Weighted Average Trading Price thereof shall be
determined by the board of directors which determination shall be
conclusive.

Schedule “A”

List of Permitted Encumbrances

Security interests perfected by the registration of the
following financing statements against the Corporation in the British Columbia
Personal Property Registry:

	Secured Party 	Date of Reg’n / 	Brief Description of Collateral 
	  	Database Reg’n # 	 
    
	  	  	  
	The University of
      British Columbia 	May
      17, 1996 / 6394762 	Knowledge, know-how and techniques licensed to the Corporation
      re: quantitative immunochromatographic assays and determinations of
      platelet count 
	  	  	  
	The Toronto
      Dominion Bank 	January 8, 2003 / 815190A 	All
      present and after acquired accounts, monies, deposits from time to time on
      deposit in the name of the Corporation or owed to the Corporation by the
      secured party or TD Mortgage Corporation or TD Pacific Mortgage
      Corporation, or Canada Trustco Mortgage Company or The Canada Trust
      Company or other subsidiary or affiliate of the secured party and in the
      Corporation’s rights in and to those accounts, monies, deposits and
      proceeds thereof 
	  	  	  
	Xerox Canada
      Limited 	June
      19, 2003 / 113161B 	All
      present and future office equipment and software supplied or financed from
      time to time by the secured party (whether by lease, conditional sale or
      otherwise) whether or not manufactured by the secured party or any
      affiliate thereof 
	  	  	  
	CLI Leasing	November 18, 2003 / 388156B	Water
      purification system S/N: 1086
Oasis coffee brewer S/N:
      0306047589
Oasis water cooler S/N: 1090Filed by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.25

WITHOUT PRIOR WRITTEN APPROVAL OF THE EXCHANGE AND
COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES
REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR
OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE EXCHANGE OR
OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL
FEBRUARY 22, 2006.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF
THE SECURITIES SHALL NOT TRADE THE SECURITIES BEFORE FEBRUARY 22, 2006.

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES
ACT") OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH
SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE COMPANY, (B) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE
LOCAL LAWS AND REGULATIONS, OR (C) EITHER (1) PURSUANT TO AN AVAILABLE EXEMPTION
UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, UPON
RECEIPT BY THE COMPANY OF A LEGAL OPINION (IN FORM AND SUBSTANCE SATISFACTORY TO
THE COMPANY) TO SUCH EFFECT, OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE U.S. SECURITIES ACT FOR SUCH SECURITIES. DELIVERY OF THIS
CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON
STOCK EXCHANGES IN CANADA.”

“THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE
THEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “U.S. SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S.
PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND SHARES ISSUABLE
UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT
AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM
SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON”
ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.”

CERTIFICATE #RBM05-[xx]

REPRESENTING [xx] WARRANTS

NON-TRANSFERABLE SHARE PURCHASE WARRANT

RESPONSE BIOMEDICAL CORP.

(Incorporated under the laws of the Province of British
Columbia)

This is to certify that, for value received, [Name and
Address of Registered Holder] (the “Warrant Holder”), has the right to
purchase from Response Biomedical Corp. (the “Company”), upon and subject
to the terms and conditions hereinafter referred to, [xx] common shares
without par value (the “Shares”) in the capital of the Company. The Shares may
be purchased at the price of $0.50 per Share (the “Exercise Price”) at
any time prior to 4:30 p.m. (local Vancouver time) on October 21, 2007
subject to the terms and conditions hereinafter set forth. The right to purchase
the Shares may be exercised in whole or in part, by the Warrant Holder only, at
the Exercise Price by 4:30 p.m. on October 21, 2007 by:

	 	(a) 	
      completing and executing the form (the “Subscription
      Form”) attached hereto for the number of the Shares which the Warrant
      Holder wishes to purchase, in the manner therein
  indicated;

– 2 –

	 	(b) 	
      surrendering this Warrant Certificate, together with the
      complete Subscription Form, to Computershare Investor Services, Inc., 510
      Burrard Street, Vancouver, BC, V6C 3B9; and

	 	 	 
	 	(c) 	
      paying the appropriate Exercise Price, in Canadian funds,
      for the number of the Shares of the Company subscribed for, either by
      certified cheque or bank draft (drawn on a Canadian Chartered Bank) or
      money order payable to the Company in Vancouver, British
  Columbia.

Upon surrender and payment, the Company shall issue to the
Warrant Holder or to such other person or persons as the Warrant Holder may
direct, the number of the Shares subscribed for and will deliver to the Warrant
Holder, at the address set forth on the subscription form, a certificate or
certificates evidencing the number of the Shares subscribed for within a
reasonable time, not exceeding 7 days after the rights represented by this
Warrant Certificate shall have been exercised. If the Warrant Holder subscribes
for a number of Shares which is less than the number of Shares permitted by this
Warrant, the Company shall forthwith cause to be delivered to the Warrant Holder
a further Warrant Certificate in respect of the balance of Shares referred to in
this Warrant Certificate not then being subscribed for.

The Company covenants and agrees that all Shares which may be
issued upon the exercise of this Warrant will, upon issuance, be fully paid and
non-assessable and free of all liens, charges and encumbrances. The Company
further covenants and agrees that during the period within which the rights
represented by this Warrant Certificate may be exercised, the Company will at
all times have authorized and reserved a sufficient number of Shares to provide
for the exercise of this Warrant represented by this Warrant Certificate.

Anti-Dilution

The Exercise Price and the number of Shares deliverable upon
the exercise of these Warrants will be subject to adjustment in the events and
in the following manner:

	(a) 	
      In case of any reclassification of the common shares or
      change of the common shares into other shares, or in case of the
      consolidation, merger, reorganization or amalgamation of the Company with
      or into any other corporation or entity which results in any
      reclassification of the common shares or a change of the common shares
      into other shares, or in case of any transfer, lease or license of the
      undertaking or assets of the Company as an entirety or substantially as an
      entirety to another person (any such event being hereinafter referred to
      as a “Reclassification of Common Shares”), at any time prior to the Time
      of Expiry, the Warrant Holder shall, after the effective date of such
      Reclassification of Common Shares and upon exercise of the right to
      purchase Shares hereunder, be entitled to receive, and shall accept, in
      lieu of the number of Shares to which the Warrant Holder was theretofore
      entitled upon such exercise, the kind and amount of shares and other
      securities or property which the Warrant Holder would have been entitled
      to receive as a result of such Reclassification of Common Shares if, on
      the effective date thereof, the Warrant Holder had been the registered
      holder of the number of Shares to which the Warrant Holder was theretofore
      entitled upon such exercise. If necessary, appropriate adjustments shall
      be made in the application of the provisions set forth in this section
      with respect to the rights and interests thereafter of the Warrant Holder
      of this Warrant Certificate to the end that the provisions set forth in
      this section shall thereafter correspondingly be made applicable as nearly
      as may be reasonable in relation to any shares or other securities or
      property thereafter deliverable upon the exercise of the Warrants
      evidenced hereby.

	 	 
	(b) 	
      If and whenever at any time prior the Time of Expiry the
      Company shall:

– 3 –

	 	(i) 	
      subdivide its common shares into a greater number of
      shares;

	 	 	 
	 	(ii) 	
      consolidate its common shares into a lesser number of
      shares; or

	 	 	 
	 	(iii) 	
      issue common shares, Participating Shares or Convertible
      Securities (both such terms as defined below in paragraph (g)) to all or
      substantially all of the holders of common shares by way of a stock
      dividend or other distribution on the common shares payable in common
      shares, Participating Shares or Convertible
Securities;

	 	(any such event being hereinafter referred to as “Capital
      Reorganization”) and any such event results in an adjustment in the
      Exercise Price hereunder, the number of Shares purchasable pursuant to the
      Warrants evidenced hereby shall be adjusted contemporaneously with the
      adjustment of the Exercise Price by multiplying the number of Shares
      theretofore purchasable on the exercise thereof by a fraction the
      numerator of which shall be the Exercise Price in effect immediately prior
      to such adjustment and the denominator of which shall be the Exercise
      Price resulting from such adjustment. 

	(c) 	
      If and whenever at any time prior to the Time of Expiry,
      the Company shall engage in a Capital Reorganization, the Exercise Price
      shall, on the effective date, in the case of a subdivision or
      consolidation, or on the record date, in the case of a stock dividend, be
      adjusted by multiplying the Exercise Price in effect on such effective
      date or record date by a fraction: (A) the numerator of which shall be the
      number of common shares and Participating Shares outstanding before giving
      effect to such Capital Reorganization; and (B) the denominator of which is
      the number of common shares and Participating Shares outstanding after
      giving effect to such Capital Reorganization. The number of common shares
      and Participating Shares outstanding shall include the deemed conversion
      into or exchange for common shares or Participating Shares of any
      Convertible Securities distributed by way of stock dividend or other such
      distribution. Such adjustment shall be made successively whenever any
      event referred to in this paragraph shall occur.

	 	 	 
	(d) 	
      Any issue of common shares, Participating Shares or
      Convertible Securities by way of a stock dividend or other such
      distribution shall be deemed to have been made on the record date thereof
      for the purpose of calculating the number of outstanding common shares
      under paragraphs (e) and (f).

	 	 
	(e) 	
      If and whenever at any time prior to the Time of Expiry,
      the Company shall fix a record date for the issuance of rights, options or
      warrants (other than the Warrants evidenced hereby) to all or
      substantially all the holders of common shares entitling them, for a
      period expiring not more than 45 days after such record date, to subscribe
      for or purchase common shares, Participating Shares or Convertible
      Securities at a price per share (or having a conversion or exchange price
      per share) of less than 95% of the Current Market Price (as defined below)
      of the common shares on such record date (any such event being hereinafter
      referred to as a “Rights Offering”), the Exercise Price shall be adjusted
      immediately after such record date so that it shall equal the price
      determined by multiplying the Exercise Price in effect on such record date
      by a fraction:

	 	 	 
		(i) 	
      the numerator of which shall be the aggregate of: (A) the
      number of common shares outstanding on such record date; and (B) a number
      determined by dividing whichever of the following is applicable by the
      Current Market Price of the common shares on the record date: (1) the
      amount obtained by multiplying the number of common shares or
      Participating Shares which the holders of common shares are entitled to
      subscribe for or purchase by the subscription or purchase price; or (2)
      the amount obtained by multiplying

– 4 –

	 		
      the maximum number of common shares or Participating
      Shares which the holders of common shares are entitled to receive on the
      conversion or exchange of the Convertible Securities by the conversion or
      exchange price per share; and

	 	 	 
	 	(ii) 	
      the denominator of which shall be the aggregate of: (A)
      the number of common shares outstanding on such record date; and (B)
      whichever of the following is applicable: (1) the number of common shares
      or Participating Shares which the holders of common shares are entitled to
      subscribe for or purchase; or (2) the maximum number of common shares or
      Participating Shares which the holders of common shares are entitled to
      receive on the conversion or exchange of the Convertible
  Securities.

	 	Any common shares owned by or held for the account of the
      Company shall be deemed not to be outstanding for the purpose of any such
      computation. Such adjustment shall be made successively whenever such a
      record date is fixed. 
	 	  
	 	To the extent that such Rights Offering is not so made or
      any such rights, options or warrants are not exercised prior to the
      expiration thereof, the Exercise Price shall then be readjusted to the
      Exercise Price which would then be in effect if such record date had not
      been fixed or if such expired rights, options or warrants had not been
      issued. 

	(f) 	
      If and whenever at any time prior to the Time of Expiry,
      the Company shall fix a record date for the distribution to all or
      substantially all the holders of common shares of:

	 	 	 
		(i) 	
      shares of any class, whether of the Company or any other
      corporation;

	 	 	 
		(ii) 	
      rights, options or warrants;

	 	 	 
		(iii) 	
      evidences of indebtedness; or

	 	 	 
		(iv) 	
      other assets or property;

	 	 	 
		
      and if such distribution does not constitute a Capital
      Reorganization or a Rights Offering or does not consist of rights, options
      or warrants entitling the holders of common shares to subscribe for or
      purchase common shares, Participating Shares or Convertible Securities for
      a period expiring not more than 45 days after such record date and at a
      price per share (or having a conversion or exchange price per share) of at
      least 95% of the Current Market Price of the common shares on such record
      date (any such non-excluded event being hereinafter referred to as a
      “Special Distribution”) the Exercise Price shall be adjusted immediately
      after such record date so that it shall equal the price determined by
      multiplying the Exercise Price in effect on such record date by a
      fraction: (I) the numerator of which shall be the amount by which (A) the
      amount obtained by multiplying the number of common shares outstanding on
      such record date by the Current Market Price of the common shares on such
      record date, exceeds (B) the fair market value (as determined by the
      directors of the Company, which determination shall be conclusive) to the
      holders of such common shares of such Special Distribution; and (II) the
      denominator of which shall be the total number of common shares
      outstanding on such record date multiplied by such Current Market
      Price.

	 	 	 
		
      Any common shares owned by or held for the account of the
      Company shall be deemed not to be outstanding for the purpose of any such
      computation. Such adjustment shall be made successively whenever such a
      record date is fixed.

– 5 –

		
      To the extent that such Special Distribution is not so
      made or any such rights, options or warrants are not exercised prior to
      the expiration thereof, the Exercise Price shall then be readjusted to the
      Exercise Price which would then be in effect if such record date had not
      been fixed or if such expired rights, options or warrants had not been
      issued.

	 	 
	(g) 	
      For the purpose of these Warrants: (i) “Participating
      Share” means a share (other than a common share) that carries the right to
      participate in earnings to an unlimited degree; and (ii) “Convertible
      Security” means a security convertible into or exchangeable for a common
      share or a Participating Share or both.

	 	 
	(h) 	
      In any case in which this Warrant Certificate shall
      require that an adjustment shall become effective immediately after a
      record date for an event referred to herein, the Company may defer, until
      the occurrence of such event, issuing to the Warrant Holder, upon the
      exercise of the Warrants evidenced hereby after such record date and
      before the occurrence of such event, the additional Shares issuable upon
      such exercise by reason of the adjustment required by such event;
      provided, however, that the Company shall deliver to the Warrant Holder an
      appropriate instrument evidencing the Warrant Holder’s right to receive
      such additional Shares upon the occurrence of the event requiring such
      adjustment and the right to receive any distributions made on such
      additional Shares on and after such exercise.

	 	 
	(i) 	
      The adjustments provided for in this Warrant Certificate
      are cumulative, shall, in the case of adjustments to the Exercise Price,
      be computed to the nearest one-tenth of one cent and shall apply (without
      duplication) to successive Reclassifications of Common Shares, Capital
      Reorganizations, Rights Offerings and Special Distributions; provided
      that, notwithstanding any other provision of this section, no adjustment
      of the Exercise Price shall be required unless such adjustment would
      require an increase or decrease of at least 1% of the Exercise Price then
      in effect (except upon a consolidation of the outstanding common shares)
      (provided, however, that any adjustments which by reason of this paragraph
      are not required to be made shall be carried forward and taken into
      account in any subsequent adjustment).

	 	 
	(j) 	
      In the event of any question arising with respect to the
      adjustments provided in this Warrant Certificate, such question shall
      conclusively be determined by a firm of chartered accountants appointed by
      the Company (who may be the Company’s auditors). The Company shall give
      such accountants access to all necessary records of the Company and such
      determination shall be binding upon the Company and the Warrant
    Holder.

	 	 
	(k) 	
      As a condition precedent to the taking of any action
      which would require an adjustment in the subscription rights pursuant to
      these Warrants, including the Exercise Price and the number of such
      classes of shares or other securities or property which are to be received
      upon the exercise thereof, the Company shall take all corporate action
      which may, in the opinion of counsel, be necessary in order that the
      Company has reserved and there will remain unissued out of its authorized
      capital a sufficient number of Shares for issuance upon the exercise of
      these Warrants, and that the Company may validly and legally issue as
      fully paid and non-assessable all the shares of such classes or other
      securities or may validly and legally distribute the property which the
      Warrant Holder is entitled to receive on the full exercise thereof in
      accordance with the provisions hereof.

	 	 
	(l) 	
      At least 15 days prior to the effective date or record
      date, as the case may be, of any dividend of any kind or any event which
      requires an adjustment in the subscription rights pursuant to this Warrant
      Certificate, including the Exercise Price and the number and classes of
      shares or other securities or property which are to be received upon the
      exercise thereof, the Company shall give

– 6 –

		
      notice to the Warrant Holder of the particulars of such
      event and the required adjustment. Upon the occurrence of any event which
      requires any adjustment of the Exercise Price or number of Shares, then,
      and in each such case, the Company shall give notice thereof to the holder
      hereof, which notice shall state the Exercise Price resulting from such
      adjustment and the increase or decrease in the number of Shares
      purchasable at such price upon exercise, setting forth in reasonable
      detail the method of calculation and the facts upon which such calculation
      is based. Such calculation shall be certified by the Chief Financial
      Officer of the Company.

	 	 
	(m) 	
      No adjustment in the number of Shares which may be
      purchased upon exercise of the Warrants evidenced hereby or in the
      Exercise Price shall be made pursuant to this Warrant Certificate if the
      Warrant Holder is entitled to participate in such event on the same terms
      mutatis mutandis as if the Warrant Holder had exercised the Warrants
      evidenced hereby for Shares prior to the effective date or record date of
      such event.

The Company shall not be required to issue Shares upon the
exercise of these Warrants or provide any compensation in lieu of such
fractional interests, if any.

Current Market Price

The Current Market Price of the common shares at any date shall
be determined as follows:

	(a) 	
      if the common shares are quoted on the TSX Venture
      Exchange, the Current Market Price of a common share will be the weighted
      average closing price of the common shares on such exchange for the 20
      prior trading days;

	 	 
	(b) 	
      if the common shares are not quoted on the TSX Venture
      Exchange but are listed and posted for trading on another recognized stock
      exchange or trading quotation system, the Current Market Price of a common
      share will be the weighted average closing price for the 20 prior trading
      days of the common shares on such exchange or system or if such exchange
      or system does not provide a closing price, the numerical average of the
      closing bid and ask prices of the common shares, in either case, for the
      20 prior trading days; and

	 	 
	(c) 	
      if the common shares are not so listed and traded, the
      Board of Directors of the Company shall forthwith and in good faith
      determine the fair market value of a common share as of such
  date.

The holding of this Warrant Certificate or the Warrants
represented hereby does not entitle the Warrant Holder to any rights as
shareholder of the Company.

Nothing contained herein confers any right upon the Warrant
Holder or any other person to subscribe for or purchase any Shares of the
Company at any time subsequent to 4:30 p.m. local time in Vancouver, B.C. on
October 21, 2007 and from and after such time, this Warrant and all rights
hereunder will be void.

The Warrants represented by this Warrant Certificate are
non-transferable.

The Warrants represented by this Warrant Certificate may not be
exercised by or on behalf of a U.S. Person (as defined in Regulation S under the
United States Securities Act of 1933, as amended (the “U.S. Securities Act”)) or
a person in the United States unless an exemption is available from the
registration requirements of the U.S. Securities Act and the securities laws of
all applicable states, and the holder has furnished an opinion of counsel
satisfactory to the Company to such effect; provided that a person that
purchased the Warrants in the Company’s United States private placement, on its
own behalf or on behalf of a beneficial purchaser, and that delivered the
Accredited Investor Certificate for U.S. Subscribers 

– 7 –

attached as Schedule “C”, including Exhibit “1” thereto, to the
form of subscription agreement related to such private placement, will not be
required to deliver an opinion of counsel in connection with its due exercise of
the Warrants on its own behalf or on behalf of such beneficial purchaser (if
any), at a time when it and such beneficial purchaser (if any) remain accredited
investors, as defined in Rule 501 under the U.S. Securities Act.

Any Shares issued pursuant to this Warrant prior to February
22, 2006 will bear the following legends:

“WITHOUT PRIOR WRITTEN APPROVAL
OF THE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE TSX VENTURE
EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT
UNTIL FEBRUARY 22, 2006.”

“UNLESS PERMITTED UNDER
SECURITIES LEGISLATION, THE HOLDER OF THE SECURITIES SHALL NOT TRADE THE
SECURITIES BEFORE FEBRUARY 22, 2006.”

and any Shares issued in the United States or to a U.S. Person
will bear an additional legend restricting the transfer of the Shares absent
registration under the U.S. Securities Act or an available exemption
therefrom.

– 8 –

Time will be of the essence hereof.

This Warrant Certificate is not valid for any purpose until it
has been signed by the Company.

IN WITNESS WHEREOF, the Company has caused its common seal to
be hereto affixed and this Warrant Certificate to be signed by any one of the
directors of the Company as of the 21st day of October, 2005.

	RESPONSE BIOMEDICAL CORP. 	 
	 	 
	Per: 	 
	 	 
	William J. Radvak 	 

SUBSCRIPTION FORM

	To: 	Response Biomedical Corp. (the “Company”)

	And to: 	the directors thereof. 

Pursuant to the Share Purchase Warrant made the 21st day of
October, 2005 the undersigned hereby subscribes for and agrees to take up
_______________ common shares without par value (the “Shares”) in the capital of
the Company, at a price of $0.50 (Canadian) per Share for the
aggregate sum of $_______________ (the “Subscription Funds”), and encloses
herewith a certified cheque, bank draft or money order payable to the Company in
full payment of the Shares.

The undersigned (the “Subscriber”) hereby requests that upon
receipt of the Subscription Funds by the Company:

	 	(a) 	
      the Shares be allotted to the person set out under the
      registration directions shown below;

	 	 	 
	 	(b) 	
      the name and address of the person set out under the
      registration directions shown below be entered in the securities register
      of the Company;

	 	 	 
	 	(c) 	
      the Shares be issued to the person set out under the
      registration directions shown as fully paid and non-assessable common
      shares of the Company; and

	 	 	 
	 	(d) 	
      a share certificate representing the Shares be registered
      in accordance with the registration directions shown
  below.

In connection with its exercise of the Share Purchase Warrant,
the Subscriber hereby represents and warrants to the Company that (check
one):

	[  ] 	1. 	It is not exercising the Share Purchase Warrant
      in the United States, nor is it or any person for whose account or benefit
      it is exercising the Share Purchase Warrant a person in the United States
      or a U.S. Person. 
	  	  	  
	[  ] 	2. 	It purchased the Share Purchase Warrant from
      the Company in the United States pursuant to a subscription agreement,
      including an Accredited Investor Certificate for U.S. subscribers, on its
      own behalf or on behalf of a beneficial purchaser, it is exercising the
      Share Purchase Warrant on its own behalf or on behalf of such beneficial
      purchaser (if any), and it is, and such beneficial purchaser (if any) is,
      an accredited investor, as defined in Rule 501 under the United States
      Securities Act of 1933, as amended (the “U.S. Securities Act”), on the
      date hereof. 
	  	  	  
	[  ] 	3. 	It is enclosing with this Subscription Form a
      written opinion of counsel (which it acknowledges must be satisfactory to
      the Company) to the effect that its exercise of the Share Purchase Warrant
      and the issuance of the Shares are exempt from the registration
      requirements of the U.S. Securities Act and all applicable state
      securities laws. 

The terms “United States” and “U.S. Person” are as defined in
Regulation S under the U.S. Securities Act.

Dated this _______ day of ______________, 20[___].

DIRECTION AS TO REGISTRATION:

(Name and address exactly as you wish
them to appear on the share certificate representing the Shares and in the
securities register.)

Full Name(1):
____________________________________________________________________________________________________________

Full Address: _____________________________________________________________________________

                               _____________________________________________________________________________

                               _____________________________________________________________________________

                               _____________________________________________________________________________

Signature of Subscriber(1):
_____________________________________________________________________________

	(1) If the name above differs from the
      name of the Subscriber, then please complete the following guarantee: 	Signature of Subscriber guaranteed
      by:
      

__________________________________________________________________
Authorized
      Signature Number 

NOTE: The signature to this Subscription Form must
correspond with the name as recorded on the Warrant Certificate accompanying
this Subscription Form in every particular without alteration or enlargement or
any change whatever. If not, the signature of the holder on this Subscription
Form must be guaranteed by a Canadian Schedule 1 chartered bank, a major trust
company in Canada, a member of the Securities Transfer Association Medallion
Program (STAMP), a member of the Stock Exchange Medallion Program (SEMP) or a
member of the New York Stock Exchange Inc. Medallion Signature Program
(MSP)..

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