Document:

<PAGE>   1
                                                                    EXHIBIT 10.4
BANK OF CALIFORNIA

                                PROMISSORY NOTE
                                   BASE RATE

                                                                 MARQUEZ/R/18992
--------------------------------------------------------------------------------
Borrower Name   GENETRONICS, INC.
--------------------------------------------------------------------------------
Borrower Address                 Office             Loan Number
                                 40067                3116638944 0001-00-0-000

                                 Maturity Date      Amount
11199 SORRENTO VALLEY ROAD       AUGUST 31, 2001    $2,000,000.00
SAN DIEGO, CA 92121
--------------------------------------------------------------------------------

Date SEPTEMBER 29, 2000                                            $2,000,000.00

FOR VALUE RECEIVED, on AUGUST 31, 2001 the undersigned ("Debtor") promises to
pay to the order of UNION BANK OF CALIFORNIA, N.A. ("BANK"), as indicated
below, the principal sum of TWO MILLION AND NO/100 Dollars ($2,000,000.00), or
so much thereof as is disbursed, together with interest on the balance of such
principal from time to time outstanding, at a per annum rate or rates and at
the times set forth below.

1.  INTEREST PAYMENTS. Debtor shall pay interest on the LAST day of each MONTH
commencing OCTOBER 31, 2000. Should interest not be paid when due, it shall
become a part of the principal and thereafter bear interest as herein provided.
All computations of interest under this note shall be made on the basis of a
year of 360 days, for actual days elapsed.

     a.   BASE INTEREST RATE. At Debtor's option, amounts outstanding hereunder
     in minimum amounts of at least $100,000.00 shall bear interest at a rate,
     based on an index selected by Debtor, which is 1.750% per annum in excess
     of Bank's LIBOR Rate for the Interest Period selected by Debtor, acceptable
     to Bank.

     No Base Interest Rate may be changed, altered or otherwise modified until
     the expiration of the Interest Period selected by Debtor. The exercise of
     interest rate options by Debtor shall be as recorded in Bank's records,
     which records shall be prima facie evidence of the amount borrowed under
     either interest option and the interest rate; provided, however, that
     failure of Bank to make any such notation in its records shall not
     discharge Debtor from its obligations to repay in full with interest all
     amounts borrowed. In no event shall any Interest Period extend beyond the
     maturity date of this note.

     To exercise this option, Debtor may, from time to time with respect to
     principal outstanding on which a Base Interest Rate is not accruing, and on
     the expiration of any Interest Period with respect to principal outstanding
     on which a Base Interest Rate has been accruing, select an Index offered by
     Bank for a Base Interest Rate Loan and an Interest Period by telephoning an
     authorized lending officer of Bank located at the banking office identified
     below prior to 10:00 a.m., Pacific time, on any Business Day and advising
     that officer of the selected index, the Interest Period and the Origination
     Date selected (which Origination Date, for a Base Interest Rate Loan based
     on the LIBOR Rate, shall follow the date of such selection by no more than
     two (2) Business Days).

     Bank will mail a written confirmation of the terms of the selection to
     Debtor promptly after the selection is made. Failure to send such
     confirmation shall not affect Bank's rights to collect interest at the rate
     selected. If, on the date of the selection, the index selected is
     unavailable for any reason, the selection shall be void. Bank reserves the
     right to fund the principal from any source of funds notwithstanding any
     Base Interest Rate selected by Debtor.

     b.   VARIABLE INTEREST RATE. All principal outstanding hereunder which is
     not bearing interest at a Base Interest Rate shall bear interest at a rate
     per annum of 1.000% less than the Reference Rate, which rate shall vary as
     and when the Reference Rate changes.

     If any interest rate defined in this note ceases to be available from Bank
     for any reason, then said interest rate shall be replaced by the rate then
     offered by Bank, which, in the sole discretion of Bank, most closely
     approximates the unavailable rate.

     At any time prior to the maturity of this note, subject to the provisions
     of paragraph 4, below, of this note, Debtor may borrow, repay and reborrow
     hereon so long as the total outstanding at any one time does not exceed the
     principal amount of this note. Debtor shall pay all amounts due under this
     note in lawful money of the Untied States at Bank's GOLDEN TRIANGLE
     COMMERCIAL BANKING Office, or such other office as may be designated by
     Bank, from time to time.

2.   LATE PAYMENTS. If any payment required by the terms of this note shall
remain unpaid ten days after same is due, at the option of Bank, Debtor shall
pay a fee of $100 to Bank.

3.   INTEREST RATE FOLLOWING DEFAULT. In the event of default, at the option of
Bank, and to the extent permitted by law, interest shall be payable on the
outstanding principal under this note at a per annum rate equal to FIVE AND
NO/100 percent (5.000%) in excess of the interest rate specified in paragraph
1.b, above, calculated from the date of default until all amounts payable under
this note are paid in full.

4.   PREPAYMENT.
a.   Amounts outstanding under this note bearing interest at a rate based on
the Reference Rate may be prepaid in whole or in part at any time, without
penalty or premium. Debtor may prepay amounts outstanding under this note
bearing interest at a Base Interest Rate in whole or in part provided Debtor
has given Bank not less than five (5) Business Days prior written notice of
Debtor's intention to make such prepayment and pays to Bank the prepayment fee
due as a result. The prepayment fee shall also be paid, if Bank, for any other
reason, including acceleration or foreclosure, receives all or any portion of
principal bearing interest at a Base Interest Rate prior to its scheduled
payment date. The prepayment fee shall be an amount equal to the present value
of the product of: (i) the difference (but not less than zero) between (a) the
Base Interest Rate applicable to the principal amount which is being prepaid,
and (b) the return which Bank could obtain if it used the amount of such
prepayment of principal to purchase at bid price regularly quoted securities
issued by the United States having a maturity date most closely coinciding
with the relevant Base Rate Maturity Date and such securities were held by
Bank until the relevant Base Rate Maturity Date ("Yield Rate"); (ii) a
fraction, the numerator of which is the number of days in the period between
the date of prepayment and the relevant Base Rate Maturity Date and the
denominator of which is 360; and (iii) the amount of the principal so prepaid
(except in the event that principal payments are required and have been made as
scheduled under the terms of the Base Interest Rate Loan being prepaid, then an
amount equal to the lesser of (A) the amount prepaid or (B) 50% of the sum of
(1) the amount prepaid and (2) the amount of principal scheduled under the
terms of the Base Interest Rate Loan being prepaid to be outstanding at the
relevant Base Rate Maturity Date). Present value under this note is determined
by discounting the above product to present value using the Yield Rate as the
annual discount factor.

b.   In no event shall Bank be obligated to make any payment or refund to
Debtor, nor shall Debtor be entitled to any setoff or other claim against
Bank, should the return which Bank could obtain under this prepayment formula
exceed the interest that Bank would have received if no prepayment had
occurred. All prepayments shall include payment of accrued interest on the
principal amount so prepaid and shall be applied to payment of interest
before application to principal. A determination by Bank as to the prepayment
fee amount, if any, shall be conclusive.

c.   Bank shall provide Debtor a statement of the amount payable on account of
prepayment. Debtor acknowledges that (i) Bank establishes a Base Interest Rate
upon the understanding that it apply to the Base Interest Rate Loan for the
entire Interest Period, and (iii) Bank would not lend to Debtor without
Debtor's express agreement to pay Bank the prepayment fee described above.

5.   DEFAULT AND ACCELERATION OF TIME FOR PAYMENT. Default shall include, but
not be limited to, any of the following: (a) the failure of Debtor to make any
payment required under this note when due; (b) any breach, misrepresentation or
other default by Debtor, any guarantor, co-maker, endorser, or any person or
entity other than Debtor providing security for this note (hereinafter
individually and collectively referred to as the "Obligor") under any security
agreement, guaranty or other agreement between Bank and any Obligor; (c) the
insolvency of any Obligor or the failure of any Obligor generally to pay such
Obligor's debts as such debts become due; (d) the commencement as to any
Obligor of any voluntary or involuntary proceeding under any laws relating to
bankruptcy, insolvency, reorganization, arrangement, debt adjustment or debtor

<PAGE>   2
relief; (e) the assignment by any Obligor for the benefit of such Obligor's
creditors; (f) the appointment, or commencement of any proceeding for the
appointment of a receiver, trustee, custodian or similar official for all or
substantially all of any Obligor's property; (g) the commencement of any
proceeding for the dissolution or liquidation of any Obligor; (h) the
termination of existence or death of any Obligor; (i) the revocation of any
guaranty or subordination agreement given in connection with this note; (j) the
failure of any Obligor to comply with any order, judgement, injunction, decree,
writ or demand of any court or other public authority; (k) the filing or
recording against any Obligor, or the property of any Obligor, of any notice of
levy, notice to withhold, or other legal process for taxes other than property
taxes; (l) the default by any [ILLEGIBLE] personally liable for amounts owed
hereunder on any obligation concerning the borrowing of money; (m) the Issuance
against any Obligor, or the property of any Obligor, of any writ of attachment,
execution, or other judicial lien; or (n) the deterioration of the financial
condition of any Obligor which results in Bank deeming itself, in good faith,
insecure. Upon the occurrence of any such default, Bank, in its discretion, may
cease to advance funds hereunder and may declare all obligations under this note
immediately due and payable; however, upon the occurrence of an event of default
under d, e, f, or g, all principal and interest shall automatically become
immediately due and payable.

6. ADDITIONAL AGREEMENTS OF DEBTOR. If any amounts owing under this note are not
paid when due, Debtor promises to pay all costs and expenses, including
reasonable attorneys' fees, incurred by Bank in the collection or enforcement of
this note. Debtor and any endorsers of this note, for the maximum period of time
and the full extent permitted by law, (a) waive diligence, presentment, demand,
notice of nonpayment, protest, notice of protest, and notice of every kind; (b)
waive the right to assert the defense of any statute of limitations to any debt
or obligation hereunder; and (c) consent to renewals and extensions of time for
the payment of any amounts due under this note. If this note is signed by more
than one party, the term "Debtor" includes each of the undersigned and any
successors in interest thereof; all of whose liability shall be joint and
several. Any married person who signs this note agrees that recourse may be had
against the separate property of that person for any obligations hereunder. The
receipt of any check or other item of payment by Bank, at its option, shall not
be considered a payment on account until such check or other item of payment is
honored when presented for payment at the drawee bank. Bank may delay the credit
of such payment based upon Bank's schedule of funds availability, and interest
under this note shall accrue until the funds are deemed collected. In any action
brought under or arising out of this note, Debtor and any Obligor, including
their successors and assigns, hereby consent to the jurisdiction of any
competent court within the State of California, as provided in any alternative
dispute resolution agreement executed between Debtor and Bank, and consent to
service of process by any means authorized by said state's law. The term "Bank"
includes, without limitation, any holder of this note. This note shall be
construed in accordance with and governed by the laws of the State of
California. This note hereby incorporates any alternative dispute resolution
agreement previously, concurrently or hereafter executed between Debtor and
Bank.

7. DEFINITIONS. As used herein, the following terms shall have the meanings
respectively set forth below: "BASE INTEREST RATE" means a rate of interest
based on the LIBOR rate. "BASE INTEREST RATE LOAN" means amounts outstanding
under this note that bear interest at a Base Interest Rate. "BASE RATE MATURITY
DATE" means the last day of the Interest Period with respect to principal
outstanding under a Base Interest Rate Loan. "BUSINESS DAY" means a day on which
Bank is open for business for the funding of corporate loans, and, with respect
to the rate of interest based on the LIBOR Rate, on which dealings in U.S.
dollar deposits outside of the United States may be carried on by Bank.
"INTEREST PERIOD" means with respect to funds bearing interest at a rate based
on the LIBOR Rate, any calendar period of THREE MONTHS. In determining an
Interest Period, a month means a period that starts on one Business Day in a
month and ends on and includes the day preceding the numerically corresponding
day in the next month. For any month in which there is no such numerically
corresponding day, then as to that month, such day shall be deemed to be the
last calendar day of such month. Any Interest Period which would otherwise end
on a non-Business Day shall end on the next succeeding Business Day unless that
is the first day of a month, in which event such Interest Period shall end on
the next preceding Business Day. "LIBOR RATE" means a per annum rate of interest
(rounded upward, if necessary, to the nearest 1/100 of 1%) at which dollar
deposits, in immediately available funds and in lawful money of the United
States would be offered to Bank, outside of the United States, for a term
coinciding with the Interest Period selected by Debtor and for an amount equal
to the amount of principal covered by Debtor's interest rate selection, plus
Bank's costs, including the cost, if any, of reserve requirements. "ORIGINATION
DATE" means the first day of the Interest Period. "REFERENCE RATE" means the
rate announced by Bank from time to time at its corporate headquarters as its
Reference Rate. The Reference Rate is an index rate determined by Bank from time
to time as a means of pricing certain extensions of credit and is neither
directly tied to any external rate of interest or index nor necessarily the
lowest rate of interest charged by Bank at any given time.

GENETRONICS, INC.

BY: /s/ MARTIN NASH                CEO
   ------------------------------------      -----------------------------------

   ------------------------------------      -----------------------------------

   ------------------------------------      -----------------------------------

   ------------------------------------      -----------------------------------

   ------------------------------------      -----------------------------------

   ------------------------------------      -----------------------------------<PAGE>   1
                                                                    EXHIBIT 10.5

                                           *** Text Omitted and Filed Separately
                                                Confidential Treatment Requested
                                        Under 17 C.F.R. Sections 200.80 (b) (4),
                                                            200.83 and 240.24b-2

                                LICENSE AGREEMENT

                                    PREAMBLE

        This Agreement is made and entered into to be effective the 9th day of
May, 1995, (the Effective Date) by and between the UNIVERSITY OF SOUTH FLORIDA
RESEARCH FOUNDATION, INC., a corporation not for profit under Chapter 617
Florida Statutes, and a direct-support organization of the University of South
Florida (hereinafter referred to as "USF") pursuant to section 240.299 Florida
Statutes, having its principal office at 4202 East Fowler Avenue, FAO 126,
Tampa, Florida 33620, U.S.A. (hereinafter referred to as "RESEARCH FOUNDATION")
and GENETRONICS, INC., a corporation duly organized under the laws of California
and authorized to do business in the State of Florida, and GENETRONICS
BIOMEDICAL, LTD., a corporation duly organized under the laws of British
Columbia, both having its principal office at 11199 Sorrento Valley Road, San
Diego, California 92121 (both Genetronics, Inc. and Genetronics Biomedical, Ltd.
hereinafter referred to as "LICENSEE").

                                   WITNESSETH

        WHEREAS, the University of South Florida ("USF") and LICENSEE jointly
developed certain needle electrodes for electroporation-mediated delivery of
drugs and genes that are the subject of "Patent Rights" (as later defined
herein); and

        WHEREAS, USF and LICENSEE have agreed to joint ownership of the Patent
Rights and have agreed to share in commercial benefits that may derive
therefrom; and

        WHEREAS, RESEARCH FOUNDATION is the exclusive licensee of USF's
interests in such Patent Rights and has the right to grant licenses thereunder;
and

        WHEREAS, RESEARCH FOUNDATION desires to have the Patent Rights utilized
in the public interest and is willing to grant a license to LICENSEE thereunder;
and

        WHEREAS, LICENSEE intends to develop, produce, manufacture, market
and/or sell products similar to the "Licensed Product(s)" (as later defined
herein) and is willing to commit itself to a diligent program of exploiting the
Patent Rights so that public utilization shall result therefrom; and

        WHEREAS, LICENSEE desires to obtain a license under the Patent Rights
upon the terms and conditions hereinafter set forth.

<PAGE>   2

        NOW THEREFORE, in consideration of the premises and mutual covenants
herein contained, the receipt and sufficiency of which is acknowledged and
intending to be bound, the parties agree as follows:

<PAGE>   3

                             ARTICLE 1. DEFINITIONS

        For the purposes of this Agreement, the following words and phrases
shall have the following meanings:

1.1.    "LICENSEE" shall include: a related company of LICENSEE, the voting
        stock of which is, directly or indirectly, at least fifty percent (50%)
        owned or controlled by LICENSEE; an organization which directly or
        indirectly controls more than fifty percent (50%) of the voting stock of
        LICENSEE; and an organization, the majority ownership of which is,
        directly or indirectly, common to the ownership of LICENSEE.

1.2     "Patent Rights" shall mean:

        (i) U.S. Patent Number 5,702,359 and corresponding foreign patents and
        applications, regardless of inventorship,

        (ii) US Patent Number 5,993,434 and corresponding foreign patents and
        applications, regardless of inventorship, and

        (iii) any patent application and U.S. patent claiming priority from the
        patent application that matured into the 5,702,359 or the 5,993,434
        patent, and corresponding foreign patents and applications, provided,
        with respect to only this part (iii), that at least one USF employee and
        at least one LICENSEE employee made an inventive contribution to at
        least one claim in any such patent or patent application.

1.3     A "Licensed Process" shall mean any process which, except for the
        license granted herein, would infringe an issued, unexpired claim
        contained in the Patent Rights in the country in which such process is
        performed and, in the event a process is performed in a country for
        which Patent Rights are not sought, such process shall be a Licensed
        Process to the extent use of the process would infringe an issued,
        unexpired claim contained in the Patent Rights in the United States if
        such Patent Rights were issued in that country.

1.4     A "Licensed Product" shall mean any product which:

        (a)    except for the license granted in this Agreement, would infringe
               an issued, unexpired claim contained in the Patent Rights in the
               country in which such product is made, used, leased or sold,

        (b)    is made by a process that, except for the license granted herein,
               would infringe a Licensed Process in the country in which such
               product is made, used or sold, or

        (c)    in the event a product is made, used, leased or sold in a country
               in which Patent Rights are not sought, such product shall be a
               Licensed Product to the extent its manufacture, use, lease, or
               sale would infringe an issued, unexpired claim contained in the
               Patent Rights in the United States if such Patent Rights were
               issued in that country.

<PAGE>   4

1.5     "Net Sales" shall mean LICENSEE's and its sublicensees' billings for
        Licensed Products sold or leased hereunder less the sum of the
        following: [...***...]

        No deductions shall be made for [...***...]. Licensed Products shall be
        considered "sold" or "leased" when payment is received, but in no event
        shall be longer than [...***...] after such Licensed Product is used,
        billed out or invoiced, as applicable. If the Licensed Product is used
        by, sold or leased to a related person or is leased or exchanged for a
        consideration other than money, billings shall be the [...***...] price
        of comparable Licensed Products sold in arm's length transactions by
        LICENSEE or, if no sales or leases of comparable Licensed Products have
        been made, then the fair market value thereof.

1.6     "Effective Date" shall mean the date so identified above in the preamble
        to this Agreement .

                                ARTICLE 2. GRANT

2.1.    RESEARCH FOUNDATION hereby grants to LICENSEE the exclusive worldwide
        right and license to make, have made, use, sublicense, lease, offer for
        sale, import and sell the Licensed Products, and to practice and to
        sublicense the Licensed Processes to the end of the term for which the
        Patent Rights are granted unless sooner terminated according to the
        terms hereof.

2.2     RESEARCH FOUNDATION reserves to the USF the right to practice under the
        Patent Rights for the USF's noncommercial research and education
        purposes. RESEARCH FOUNDATION and USF recognize that LICENSEE is a
        commercial entity and the exclusivity granted it under Section 2.1 is a
        valuable commercial right, for which RESEARCH FOUNDATION is and shall be
        compensated pursuant to Section 4.1. LICENSEE recognizes that USF may
        use the Patent Rights in performance of research that is funding by
        commercial organizations. RESEARCH FOUNDATION and USF agree to use
        reasonable efforts to ensure that research performed for a commercial
        organization shall be of the type and within a scope that would not
        reasonably be expected to minimize the value of the exclusive license
        granted LICENSEE. Notwithstanding the foregoing, under no circumstances
        is RESEARCH FOUNDATION or USF permitted to use the Patent Rights for any
        commercial purpose, which shall include performing research for a
        commercial entity, other than LICENSEE, in which the RESEARCH FOUNDATION
        or USF has an economic or equity interest.

2.3     The license granted hereunder shall not be construed to confer any
        rights upon LICENSEE by implication, estoppel or otherwise as to any
        technology, except as specifically set forth herein.

                       * Confidential Treatment Requested

<PAGE>   5

2.4     LICENSEE agrees that any sublicenses granted by it shall contain such
        provisions as are necessary for LICENSEE to meet its obligations under
        this Agreement and to reasonably protect the interests of RESEARCH
        FOUNDATION with regard to such sublicense.

2.5     LICENSEE agrees to forward to RESEARCH FOUNDATION under confidence a
        copy of any and all fully executed sublicense agreements for Licensed
        Products or Licensed Processes and further agrees to forward to RESEARCH
        FOUNDATION under confidence annually a copy of such reports received by
        LICENSEE from its sublicensees during the preceding twelve (12) month
        period under the sublicenses as shall be pertinent to a royalty
        accounting under said sublicense agreements. RESEARCH FOUNDATION shall
        have the right to disclose to its employees and agents any such
        sublicense agreements and royalty report provided to it under confidence
        to the extent such employees and agents require the information to
        effectuate RESEARCH FOUNDATION's rights under this Agreement.

2.6     LICENSEE shall not receive from sublicensees anything of value in lieu
        of cash payments of royalties for any sublicense under this Agreement,
        without the express prior written permission of RESEARCH FOUNDATION.

2.7     Termination under any of the provisions of this Agreement of the license
        granted to LICENSEE in this Agreement shall terminate all exclusive
        sublicenses which may have been granted by LICENSEE, provided that any
        sublicensee may elect to continue its sublicense by advising RESEARCH
        FOUNDATION in writing, within sixty (60) days of the sublicensee's
        receipt of written notice of such termination, of its election and of
        its agreement to assume in respect to RESEARCH FOUNDATION one-half (1/2)
        of all the obligations (including obligations for payment) contained in
        its sublicensing agreement with LICENSEE. Any sublicense granted by
        LICENSEE shall contain provisions corresponding to those of this
        paragraph respecting termination and the conditions of continuance of
        sublicenses.

                            ARTICLE 3. DUE DILIGENCE

3.1.    LICENSEE shall use reasonable efforts to bring one or more Licensed
        Products or Licensed Processes to market through a diligent program for
        exploitation of the Patent Rights, and LICENSEE's failure to so perform
        shall be grounds for RESEARCH FOUNDATION to terminate this Agreement
        pursuant to Paragraph 13.3 hereof. RESEARCH FOUNDATION acknowledges
        LICENSEE has a [...***...] to develop electroporation-mediated delivery
        of drugs in the oncology field, and further acknowledges that
        [...***...] satisfy the diligence duties set forth in this Section 3.1.

                       * Confidential Treatment Requested

<PAGE>   6

                              ARTICLE 4. ROYALTIES

4.1.    For the rights, privileges and license granted hereunder, LICENSEE shall
        pay fees and royalties to RESEARCH FOUNDATION in the manner hereinafter
        provided from the date of issuance to the end of the term of the Patent
        Rights or until this Agreement shall be terminated as hereinafter
        provided:

        (a)    Running Royalties equal to [...***...] percent [...***...] of Net
               Sales of the Licensed Products leased or sold by or for LICENSEE
               itself.

        (b)    A royalty percentage based on Net Sales of the Licensed Products
               leased or sold by or for a sublicensee, wherein the royalty is
               the higher of: (i) [...***...]% or (ii) the product of (the
               royalty to be paid to LICENSEE by sublicensee) X [...***...], but
               in no event higher than a [...***...]% royalty.

        (c)    Subject to regulatory approval, LICENSEE shall grant RESEARCH
               FOUNDATION and its designees warrants to purchase, in total,
               600,000 shares of common stock in Genetronics Biomedical, Ltd.,
               pursuant to the terms and conditions of the Warrants to Purchase
               Common Stock agreement finally signed on or after the date this
               Agreement is signed. RESEARCH FOUNDATION designates that the
               warrants be granted in the amounts and to the parties as
               indicated:

               University of South Florida Research Foundation, Inc. 330,000
               shares
               Richard Heller       90,000  shares
               Mark Jaroszeski      90,000 shares
               Richard Gilbert      90,000 shares

        (d)    Subject to regulatory approval, LICENSEE shall issue RESEARCH
               FOUNDATION and its designees, in total, 150,000 unregistered
               shares of common stock in Genetronics Biomedical, Ltd. RESEARCH
               FOUNDATION designates that the unregistered shares of common
               stock be issued in the amounts and to the parties as indicated:

               University of South Florida Research Foundation, Inc. 82,500
               shares
               Richard Heller       22,500  shares
               Mark Jaroszeski      22,500 shares
               Richard Gilbert      22,500 shares

4.2.    Royalty payments shall be paid in United States dollars in Tampa,
        Florida, or at such other place as RESEARCH FOUNDATION may reasonably
        designate consistent with the laws and regulations controlling in any
        foreign country. If any currency conversion shall be required in
        connection with the payment of royalties hereunder, such conversion
        shall be made by using the exchange rate prevailing at the Chase
        Manhattan Bank (N.A.) on the last business day of the calendar quarterly
        reporting period to which such royalty payments relate.

                       * Confidential Treatment Requested

<PAGE>   7

                         ARTICLE 5. REPORTS AND RECORDS

5.1.    LICENSEE shall keep full, true and accurate books of account containing
        all particulars that may be necessary for the purpose of showing the
        amounts payable to RESEARCH FOUNDATION hereunder, and said books and the
        supporting data shall be open at all reasonable times and upon
        reasonable notice for [...***...] years following the end of the
        calendar year to which they pertain, to the inspection of RESEARCH
        FOUNDATION or its agents for the purpose of verifying LICENSEE's royalty
        statement or compliance in other respects with this Agreement. The cost
        of any such verification shall be borne by RESEARCH FOUNDATION, subject
        to the proviso that in the event any such inspection discloses an
        underpayment by more than [...***...]% of the amount due under this
        Agreement LICENSEE shall reimburse RESEARCH FOUNDATION for its
        reasonable expenses directly associated with the inspection.

5.2.    LICENSEE, within sixty (60) days after March 31, June 30, September 30
        and December 31, of each year, shall deliver to RESEARCH FOUNDATION true
        and accurate reports, giving such particulars of the business conducted
        by LICENSEE and its sublicensees during the preceding three-month period
        under this Agreement as shall be pertinent to a royalty accounting
        hereunder, including an accounting for Licensed Processes used and
        Licensed Products leased and sold and the billings, deductions and
        royalties due with respect thereto. LICENSEE's first such report
        delivered hereunder shall include an accounting, and the billings,
        deductions and royalties due from the date of issuance of the Patent
        Rights.

5.3.    With each such report submitted, LICENSEE shall pay to RESEARCH
        FOUNDATION the royalties due and payable under this Agreement. If no
        royalties shall be due, LICENSEE shall so report.

5.4.    The royalty payments set forth in this Agreement shall, if overdue, bear
        interest until payment at a [...***...] percent ([...***...]%) per annum
        rate. The payment of such interest shall not foreclose RESEARCH
        FOUNDATION from exercising any other rights it may have as a consequence
        of the lateness of the payment.

                          ARTICLE 6. PATENT PROSECUTION

6.1     LICENSEE shall be responsible for prosecution and maintenance of the
        Patent Rights during the term of this Agreement.

6.2     The inventorship of a patent application or patent within Patent Rights
        that is filed after the Effective Date shall be determined by the
        procedure set forth in Exhibit I.

                             ARTICLE 7. INFRINGEMENT

7.1.    The parties shall inform each other promptly, in writing, of any alleged
        infringement of the Patent Rights by a third party, and of any available
        evidence thereof.

                       * Confidential Treatment Requested

<PAGE>   8

7.2.    During the term of this Agreement, LICENSEE shall have the right,
        subject only to approval not unreasonably withheld of RESEARCH
        FOUNDATION, but shall not be obligated, to prosecute at its own expense
        any such infringements of the Patent Rights and, in furtherance of such
        right, RESEARCH FOUNDATION hereby agrees that LICENSEE may join RESEARCH
        FOUNDATION as a party plaintiff in any such suit, without expense to
        RESEARCH FOUNDATION. The total cost of any such infringement action
        commenced or defended solely by LICENSEE shall be borne by LICENSEE and
        any recovery realized from such infringement action, after reimbursing
        LICENSEE for its costs and expenses in prosecuting the infringement,
        shall be treated as if it were a royalty received by LICENSEE from a
        sublicensee for Net Sales of Licensed Product and the provisions of
        Section 4.1(b) shall apply.

7.3.    If within [...***...] months after notifying an alleged infringer of any
        alleged infringement, LICENSEE shall have been unsuccessful in
        persuading the alleged infringer to desist and shall not have brought
        and shall not be diligently prosecuting an infringement action, or if
        LICENSEE shall notify RESEARCH FOUNDATION at any time prior thereto of
        its intention not to bring suit against any alleged infringer, then, and
        in those events only, RESEARCH FOUNDATION shall have the right, but
        shall not be obligated, to prosecute at its own expense any infringement
        of the Patent Rights, and RESEARCH FOUNDATION may, for such purposes,
        use the name of LICENSEE as party plaintiff. No settlement, consent
        judgment or other voluntary final disposition of the suit may be entered
        into without the consent of the other party, which consent shall not
        unreasonably be withheld.

7.4.    In the event that a declaratory judgment action alleging invalidity or
        noninfringement of any of the Patent Rights shall be brought against
        RESEARCH FOUNDATION, LICENSEE at its option, shall have the right within
        [...***...] after commencement of such action, to intervene and take
        over the sole defense of the action at its own expense.

7.5.    In any infringement suit as either party may institute to enforce the
        Patent Rights pursuant to this Agreement, the other party hereto shall,
        at the request and expense of the party initiating such suit, cooperate
        in all respects and, to the extent possible, have its employees testify
        when requested and make available relevant records, papers, information,
        samples, specimens, and the like.

7.6.    RESEARCH FOUNDATION warrants and represents that it has the lawful right
        to grant the license provided in this Agreement and that it has not
        granted rights or licenses in derogation of this Agreement. RESEARCH
        FOUNDATION agrees that during the term of this Agreement, or any license
        granted hereunder, RESEARCH FOUNDATION shall not enter into any other
        agreements that conflict with the rights or obligations provided
        hereunder, including any rights and obligations that survive termination
        of this Agreement.

                       * Confidential Treatment Requested

<PAGE>   9

                          ARTICLE 8. PRODUCT LIABILITY

8.1.    LICENSEE shall, at all times during the term of this Agreement and
        thereafter, indemnify, defend and hold RESEARCH FOUNDATION, USF and
        their trustees, officers, employees and affiliates, harmless against all
        claims and expenses, including legal expenses and reasonable attorneys'
        fees, arising out of the death of or injury to any person or persons or
        out of any damage to tangible property and against any other claim,
        proceeding, demand, expense and liability of any kind whatsoever,
        resulting from the LICENSEE's, LICENSEE's affiliated companies, or any
        of its sublicensee's production, manufacture, sale, use (both
        experimental and consumer), lease, consumption or advertisement of the
        Licensed Product(s) and/or Licensed Process(es).

8.2.    EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, RESEARCH
        FOUNDATION MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY
        KIND, EITHER EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO,
        WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
        VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR PENDING.

                           ARTICLE 9. EXPORT CONTROLS

        It is understood that RESEARCH FOUNDATION is subject to United States
laws and regulations controlling the export of technical data, computer
software, laboratory prototypes and other commodities (including the Arms Export
Control Act, as amended and the Export Administration Act of 1979), and that its
obligations hereunder are contingent on compliance with applicable United States
export laws and regulations. The transfer of certain technical data and
commodities may require a license from the cognizant agency of the United States
Government and/or written assurances by LICENSEE that LICENSEE shall not export
data or commodities to certain foreign countries without prior approval of such
agency. RESEARCH FOUNDATION neither represents that a license shall not be
required nor that, if required, it shall be issued.

                          ARTICLE 10. NON-USE OF NAMES

        LICENSEE shall not use the names of RESEARCH FOUNDATION, the University
of South Florida nor of any of its employees, nor any adaptation thereof, in any
advertising, promotional or sales literature without prior written consent
obtained from RESEARCH FOUNDATION in each case, except that LICENSEE may state
that it is licensed by RESEARCH FOUNDATION under one or more of the patents
and/or applications comprising the Patent Rights and may make disclosures as
required by law or SEC regulations or such.

                             ARTICLE 11. ASSIGNMENT

        This Agreement is not assignable except that (i) LICENSEE may assign
this Agreement in connection with any merger, consolidation, sale of all or
substantially all of its assets or those assets directly associated to this
license, or equity, or sale of a controlling interest in LICENSEE,

<PAGE>   10

and (ii) LICENSEE may assign this Agreement to another entity in which LICENSEE
maintains at least a majority ownership interest.

                             ARTICLE 12. ARBITRATION

12.1.   Any and all claims, disputes or controversies arising under, out of, or
        in connection with this Agreement, including any dispute relating to
        patent validity or infringement, which have not been resolved by good
        faith negotiations between the parties, shall be resolved by final and
        binding arbitration under the rules of the American Arbitration
        Association, or the Patent Arbitration Rules if applicable. The
        arbitrators shall have no power to add to, subtract from or modify any
        of the terms or conditions of this Agreement. Any award rendered in such
        arbitration may be enforced by either party in either state courts or in
        an United States District Court. Each party will select one arbitrator
        and those two arbitrators will select a third arbitrator.

12.2.   Notwithstanding the foregoing, nothing in this Article shall be
        construed to waive any rights or timely performance of any obligations
        existing under this Agreement.

                             ARTICLE 13. TERMINATION

13.1.   RESEARCH FOUNDATION shall have the right to terminate this Agreement at
        any time upon notice to LICENSEE in the event either (a) if LICENSEE
        shall file in any court, pursuant to any statute either of the United
        States or any state, a petition in bankruptcy or insolvency or for the
        appointment of a receiver or trustee of all or substantially all of
        LICENSEE's property, or if LICENSEE shall make an assignment for the
        benefit of creditors, or if LICENSEE shall commit any other affirmative
        act of insolvency; or (b) if there shall be filed against LICENSEE in
        any court, pursuant to any statute either of the United States or any
        state, an involuntary petition in bankruptcy or insolvency or for
        reorganization, or if there shall be involuntarily appointed a receiver
        or trustee of all or substantially all of LICENSEE's property, unless
        such petition or appointment is set aside or withdrawn or ceases to be
        in effect within [...***...] of the date of the filing or the
        appointment.

13.2.   Should LICENSEE fail to pay RESEARCH FOUNDATION royalties due and
        payable hereunder, RESEARCH FOUNDATION shall have the right to terminate
        this Agreement on [...***...] notice, unless LICENSEE shall pay RESEARCH
        FOUNDATION within the [...***...] period, all such royalties and
        interest due and payable. Upon the expiration of the [...***...] period,
        if LICENSEE shall not have paid all such royalties and interest due and
        payable, the rights, privileges and license granted hereunder shall
        terminate, unless such nonpayment is due to an honest dispute between
        the parties as to whether payment actually is due, in which case the
        obligation to pay shall be suspended until such dispute is resolved.

                       * Confidential Treatment Requested

<PAGE>   11

13.3.   Upon any material breach or default of this Agreement by LICENSEE, other
        than those occurrences set out in Paragraphs 13.1 and 13.2 hereinabove,
        which shall always take precedence in that order over any material
        breach or default referred to in this Paragraph 13.3, RESEARCH
        FOUNDATION shall have the right to terminate this Agreement and the
        rights, privileges and license granted hereunder by [...***...] notice
        to LICENSEE. Such termination shall become effective unless LICENSEE
        shall have cured any such breach or default prior to the expiration of
        the [...***...] period.

13.4.   LICENSEE shall have the right to terminate this Agreement at any time on
        [...***...] notice to RESEARCH FOUNDATION, and upon payment of all
        amounts due RESEARCH FOUNDATION through the effective date of the
        termination. In the event RESEARCH FOUNDATION or USF breaches the
        provision of Section 2.2, and such breach is not cured within
        [...***...] of written notice thereof by LICENSEE to RESEARCH
        FOUNDATION, the license and rights granted LICENSEE under Article 2
        shall convert to a fully paid-up, royalty free, exclusive license.

13.5.   Upon termination of this Agreement for any reason, nothing herein shall
        be construed to release either party from any obligation that matured
        prior to the effective date of such termination. LICENSEE may, however,
        after the effective date of such termination, sell all Licensed
        Products, and complete Licensed Products in the process of manufacture
        at the time of such termination and sell the same, provided that
        LICENSEE shall pay to RESEARCH FOUNDATION the royalties thereon as
        required by Article 4 of this Agreement and shall submit the reports
        required by Article 5 hereof on the sales of Licensed Products.

             ARTICLE 14. PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

        Any payment, notice or other communication pursuant to this Agreement
shall be sufficiently made or given on the date of mailing if sent to such party
by certified first class mail, postage prepaid, addressed to it at its address
below or as it shall designate by written notice given to the other party:

        In the case of RESEARCH FOUNDATION:

        University of South Florida Research Foundation
        Attention:  Allison Madden, Business Manager
        USF Box 30445
        Tampa, Florida 33620-3044

        In the case of LICENSEE:

        Genetronics, Inc. and Genetronics Biomedical, Ltd.
        Attention:  Martin Nash, CEO
        11199 Sorrento Valley Road
        San Diego, CA  92121-1334

                       * Confidential Treatment Requested

<PAGE>   12

                      ARTICLE 15. MISCELLANEOUS PROVISIONS

15.1.   This Agreement shall be construed, governed, interpreted and applied in
        accordance with the laws of the State of Florida, U.S.A., except that
        questions affecting the construction and effect of any patent shall be
        determined by the law of the country in which the patent was granted.

15.2.   The parties hereto acknowledge that this Agreement sets forth the entire
        Agreement and understanding, and supersedes and makes null and void any
        and all prior understandings and agreements, of the parties hereto as to
        the subject matter hereof, and shall not be subject to any change or
        modification except by the execution of a written instrument subscribed
        to by the parties hereto.

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

15.4    The parties hereto acknowledge and intend that this Agreement shall
        settle all disputes between the parties as to ownership of any patent or
        application so long as it is within the Patent Rights, as defined in
        Section 1.2 to include U.S. 5,702,359 and U.S. 5,993,434 and their
        foreign equivalents, as well as jointly invented patents and
        applications as set forth in Section 1.2 and determined by the procedure
        set forth in Exhibit I, and, notwithstanding any termination, the
        parties waive any right to contest the joint ownership of patents and
        applications within Patent Rights. The parties acknowledge the Patent
        Rights are jointly owned by LICENSEE and USF. The parties intend and
        agree that this clause shall remain in effect and survive any
        termination of this Agreement.

15.5    LICENSEE agrees to mark the Licensed Products sold in the United States
        with all applicable United States patent numbers within Patent Rights.
        All Licensed Products shipped to or sold in other countries shall be
        marked in such a manner as to conform with the patent laws and practice
        of the country of manufacture or sale.

15.6    The failure of either party to assert a right hereunder or to insist
        upon compliance with any term or condition of this Agreement shall not
        constitute a waiver of that right or excuse a similar subsequent failure
        to perform any such term or condition by the other party.

<PAGE>   13

        IN WITNESS WHEREOF, the parties have hereunto set their hands and seals
and fully executed this Agreement on the day and year set forth below.

UNIVERSITY OF SOUTH FLORIDA                 GENETRONICS, INC.
RESEARCH FOUNDATION, INC.

By          /s/ Martin Silbiger             By          /s/ Martin Nash
      ------------------------------              ------------------------------
Name        Martin Silbiger                 Name        Martin Nash
      ------------------------------              ------------------------------
Title       President                       Title       CEO
      ------------------------------              ------------------------------
Date        9/15/00                         Date        9/20/00
      ------------------------------              ------------------------------

GENETRONICS BIOMEDICAL, LTD.

By          /s/ Martin Nash
      ------------------------------
Name        Martin Nash
      ------------------------------
Title       CEO
      ------------------------------
Date        9/20/00
      ------------------------------

Acknowledged and Agreed to:

---------------------------------           ---------------------------------
Principal Investigator                      University of South Florida

<PAGE>   14

                                    Exhibit I
                          Determination of Inventorship

        1. The patent attorney or agent ("Patent Practitioner") most closely
        associated with preparation of a patent application that claims priority
        from a patent application within Patent Rights shall make a preliminary
        determination of inventorship prior to filing the application, based on
        the patent laws of the United States ("Preliminary Determination"). If a
        patent application was filed prior to a Preliminary Determination being
        made, then the parties shall act with haste to initiate the process set
        forth in this Exhibit I.

        2. The Patent Practitioner shall provide the Preliminary Determination
        of inventorship to each of USF and Genetronics, along with a copy of the
        claims in the application to be filed.

        3. USF and Genetronics shall have one month after receipt of the
        Preliminary Determination to either accept or question the Preliminary
        Determination, by notification to each other and the Patent
        Practitioner. If no notice is given by a party, then the Preliminary
        Determination will be deemed accepted by that party.

               a. Form of Acceptance Notice: "Pursuant to the License Agreement
        between University of South Florida Research Foundation, Inc.,
        Genetronics Biomedical Ltd. and Genetronics, Inc., effective May 9,
        1995, [USF] [Genetronics] received the Preliminary Determination of
        inventorship of the patent application in preparation entitled:
        __________________. [USF] [Genetronics] accepts the Preliminary
        Determination."

               b. Form of Question Notice: "Pursuant to the License Agreement
        between University of South Florida Research Foundation, Inc.,
        Genetronics Biomedical Ltd. and Genetronics, Inc., effective May 9,
        1995, [USF] [Genetronics] received the Preliminary Determination of
        inventorship of the patent application in preparation entitled:
        __________________. [USF] [Genetronics] has a question about the
        Preliminary Determination and requests further information."

        4. An acceptance of the Preliminary Determination by both parties, at
        any time, shall finalize the inventorship of that patent application
        into a Final Determination.

        5. If either or both parties question the Preliminary Determination,
        then it shall not be finalized at that time. The party questioning the
        Preliminary Determination has the right to have a Patent Practitoner of
        its choosing review the patent application and conduct interviews, and
        make a Second Preliminary Determination as to inventorship. Steps 2 and
        3 herein shall be followed with any such Second Preliminary
        Determination. In the event a party questions a Preliminary
        Determination, it shall have one month thereafter to either provide a
        Second Determination or accept the Preliminary Determination.

        6. If the parties cannot both accept the Preliminary Determination or
        both accept the Second Preliminary Determination, the two Patent
        Practitioners shall agree on a third

<PAGE>   15

        Patent Practitioner, who shall, within one month, make a Final
        Determination based on the patent application and interviews.

        7. USF and Genetronics agree that:

               a. The process set forth in this Exhibit I must be carried out in
        extreme haste, as a patent application will not be filed until a Final
        Determination is made. Delays in filing a patent application can result
        in the invention becoming unpatentable. The parties shall endeavor to
        complete each step in the analysis in less than the prescribed time
        period.

               b. The Final Determination made pursuant to Step 6 shall be the
        final inventorship of an application.

               c. Neither USF nor Genetronics shall raise a legal challenge of
        any kind to a Final Determination made pursuant to this Exhibit I,
        unless the elements of the claims of the patent application or
        subsequent patent are substantially changed from the claims on which the
        Final Determination was made.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00016-of-00352.parquet"}]]