Document:

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                                                                    EXHIBIT 10.6

                      SHORT FORM SHAREHOLDERS' AGREEMENT

THIS AGREEMENT has been made this 18/th/ day of August, 1999.

BETWEEN:

        GUY CRAMER, businessman, of 1335 Sutherland Avenue,
        Port Coquitlam, British Columbia  V3B 7G7

        ("Cramer")                                            OF THE FIRST PART

AND:
        GINO GEMMA, businessman, of 6441 Lougheed Highway,
        Burnaby, British Columbia  V5B 3A1

        ("Gemma")                                             OF THE SECOND PART

AND:

        ROBERT DYMONT, businessman, of 346 Mount Parke Drive,
        P.O. Box 103, Mayne Island, British Columbia  V0N 2J0

        ("Dymont")                                            OF THE THIRD PART

AND:

        S.O. (ROY) TJELTA, businessman, of 346 Mount Parke Drive,
        P.O. Box 103, Mayne Island, British Columbia  V0N 2J0

        ("Tjelta")                                            OF THE FOURTH PART

        (Cramer, Gemma, Dymont and Tjelta collectively referred to as the
        "Shareholders")

WHEREAS:

A.      The Shareholders are each holders of 1,000,000 common shares of
Hyperstealth Biotechnology Corporation (the "Company"), being an aggregate
4,000,000 common shares of the Company (the "Shares"), and will be shareholders
of successor companies in which they will hold shares (also, the "Shares");
<PAGE>

                                       2

B.      The Company (including successors) currently carries on the business of
developing and marketing hyperbaric chambers together with negative passive ion
generators (collectively, the "Business");

C.      The Company is currently restructuring its business so as a company
other than the Company may ultimately control the Business, in which case the
Shareholders will sell their Shares in the Company to the company that will
ultimately control the Business (the "Parent Company") at cost and the
Shareholders will purchase a similar percentage share interest in the Parent
Company;

D.      The Shareholders desire to enter into this agreement in order to record
certain of their respective rights and obligations with respect to their
shareholdings in the Company or Parent Company, as the case may be.

        NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the
premises and of the mutual covenants and agreements hereinafter set forth, the
parties hereto agree each with the other as follows:

1.      Conduct with Respect to License Agreement
        -----------------------------------------

1.1     The Shareholders have entered into license agreements (the "License
Agreements") dated August 17, 1999 with each of the Company and Hyperstealth
Biotechnology Inc. (a Colorado company) pursuant to which the Shareholders are
the licensors thereunder. The Shareholders hereby agree that with respect to
every and all transactions relating to the License Agreements, the Shareholders
will act as one collective unit and will make all decisions on a "majority"
basis, however, in the event that Shareholders are dead-locked with respect to
any decisions relating to the License Agreements, the Shareholders hereby agree
that Cramer will have the casting vote.

1.2     The Shareholders hereby elect Cramer to act as their representative and
spokesman with respect to any and all dealings and transactions relating to the
License Agreements.

2.      Royalty Payments upon Retirement
        --------------------------------

2.1     In the event that any Shareholder (the "Retiring Shareholder") retires,
terminates his employment with the Company or the Parent Company, as the case
may be, or otherwise disengages himself from the business of the Company or the
Parent Company, as the case may be (collectively, the "Retirement"), then the
Royalty (as that term is defined in the License Agreements) payable to such
Retiring Shareholder will be calculated as follows:
<PAGE>

                                       3

     (a)  if the Retirement occurs at any time from the date of the License
          Agreements to the end of the second year from the date of the License
          Agreements, the Retiring Shareholder will receive a 0.5% Royalty for a
          period of two years from the date of Retirement;

     (b)  if the Retirement occurs on or after the third year after the date of
          the License Agreements, the Retiring Shareholder will receive a 0.5%
          Royalty for a period of three years from the date of Retirement;

     (c)  if the Retirement occurs on or after the fourth year after the date of
          the License Agreements, the Retiring Shareholder will receive a 0.5%
          Royalty for a period of four years from the date of Retirement; and

     (d)  if the Retirement occurs on or after the fifth year after the date of
          the License Agreements, the Retiring Shareholder will receive a 0.5%
          Royalty for a period of five years from the date of Retirement.

2.2       The Retiring Shareholder will transfer, for an aggregate price of
$1.00, the Retiring Shareholder's Royalty from the License Agreements to the
non-Retiring Shareholders, pro-rata, and the reduced Royalty as set out in
section 2.1 above will be paid by the non-Retiring Shareholders through a
direction from Cramer to the Company to pay such reduced Royalty payment to the
Retiring Shareholder directly from the Company.  The non-Retiring Shareholders
will share equally in any portion of the Royalty granted to the Retiring
Shareholder under the License Agreements that is not paid to the Retiring
Shareholder pursuant to section 2.1.

3.   Sale of Shares on Death
     -----------------------

3.1       Upon the death of any of the Shareholders (the "Deceased
Shareholder"), the personal representatives of the Deceased Shareholder will
provide the remaining Shareholders with a pro rata right of first refusal with
respect to the purchase and sale of all of the shares owned by the Deceased
Shareholder at the date of his death (the "Deceased's Shares"). The personal
representatives of the Deceased Shareholder will provide the remaining
Shareholders with written notice (the "Notice") of their intent to sell the
Deceased's Shares at a price to be determined in accordance with the provisions
of section 3.2 and upon the terms set forth in section 3.3 and the remaining
Shareholders will have 30 days from the date the purchase price is determined in
accordance with section 3.2 to accept the offer contained in the Notice. The
remaining Shareholders, as to those accepting the offer, have a right to
purchase equally. Not less than 50% of the offered shares shall be accepted for
purchase. In the event that any of the remaining Shareholders do not confirm
their acceptance of the offer within the said 30 days, the personal
representatives of the Deceased Shareholder may sell the shares to other parties
but on no lesser terms then those set out in the Notice and at no lesser
purchase price than that determined by section 3.2 below.

3.2       The purchase price of the shares purchased pursuant to this section
will be at the fair market value (calculated immediately prior to the death of
the Deceased Shareholder), as determined by a 10 day market average or, if there
is no market, as agreed between the personal representatives of the Deceased
Shareholder and the
<PAGE>

                                       4

remaining Shareholders and failing agreement as determined by a single
arbitrator under the Commercial Arbitration Act (British Columbia).

3.3       The purchase price will be paid by the remaining Shareholders to the
personal representatives of the Deceased Shareholder and will be paid in 12
equal monthly payments together with interest (interest being accrued at 6%
annually, simple interest calculated monthly on the unpaid principal, payable
monthly in arrears).

3.4       If Revenue Canada or any other competent taxing authority at any time
hereafter proposes to issue or issues any assessment that would impose or
imposes any liability for tax on any of the parties hereto, or any other person,
on the basis that the fair market value for the shares purchased under this
section is greater or less than the purchase price fixed hereunder, then and in
that event the purchase price shall be adjusted to an amount equal to the fair
market value that is proposed by Revenue Canada or such other competent taxing
authority or used by it as the basis of any such assessment, to the extent that
counsel for any of the parties is of the opinion that the fair market value
basis proposed by Revenue Canada or such other competent taxing authority or
used by it in the making of any assessment would be upheld by a Court of
competent jurisdiction.

3.5       The right of the remaining Shareholders to receive the Offer set out
in section 3.1 above will not transfer to any remaining Shareholders' estates.

4.        Default
          -------

4.1       It is an event of default (a "Default") if a Shareholder (the
"Defaulting Shareholder") (the other Shareholders being referred to as the "Non-
Defaulting Shareholders"):

     (a)  fails to observe, perform or carry out any of his obligations under
          this Agreement and such failure continues for 30 days after the Non-
          Defaulting Shareholders or any of them has in writing demanded that
          such failure be cured;

     (b)  becomes a bankrupt or commits an act of bankruptcy or if a receiver or
          receiver-manager of its assets is appointed or makes an assignment for
          the benefit of creditors or otherwise; or

     (c)  fails to observe, perform or carry out any of his obligations under
          any employment contract made between the Company or the Parent
          Company, as the case may be, and such Shareholder.

          In the event that the purported Defaulting Shareholder disputes the
allegation of default, he will not be considered a Defaulting Shareholder until
the dispute has been properly adjudged but the Default, if any, will be
effective from the date of its occurrence.
<PAGE>

                                       5

4.2       In the event of a Default, the Non-Defaulting Shareholder(s) may do
any one or more of the following:

     (a)  pursue any remedy available to them in law or equity, it being
          acknowledged by each of the Shareholders that specific performance,
          injunctive relief (mandatory or otherwise) or other equitable relief
          may be the only adequate remedy for a Default;

     (b)  take all actions in their own names or in the name of the Defaulting
          Shareholder, the Shareholders or the Company or Parent Company, as the
          case may be, as may reasonably be required to cure the Default, in
          which event all payments, costs and expenses incurred therefor shall
          be payable by the Defaulting Shareholder to the Non-Defaulting
          Shareholder(s) on demand with interest; or

     (c)  waive the Default provided, however, that any waiver of particular
          Default shall not operate as a waiver of any subsequent or continuing
          Default.

5.        General Provisions
          ------------------

5.1       This Agreement will terminate:

     (a)  if the Company or the Parent Company, as the case may be, ceases to
          carry on business, has a receiving order made against it, goes into
          bankruptcy either voluntarily or involuntarily or makes a proposal to
          its creditors; or

     (b)  if the parties hereto consent in writing to the termination hereof.

5.2       The Shareholders will from time to time after the execution of this
Agreement make, do, execute or cause or permit to be made, done or executed, all
such further and other acts, deeds, things, devices and assurances in law
whatsoever as may be required to carry out the true intention and to give full
force and effect to this Agreement.

5.4       If any provision of this Agreement is unenforceable or invalid for any
reason whatever, such unenforceability or invalidity will not affect the
enforceability or validity of the remaining provisions of this Agreement and
such provision shall be severable from the remainder of this Agreement.

5.5       Any notice required to be given hereunder by any party will be deemed
to have been well and sufficiently given if mailed by prepaid registered mail,
telexed or telegraphed to, or delivered at, the address of the other party set
forth on the first page of this Agreement or at such other address as the party
may from time to time direct in writing, and any such notice will be deemed to
have been received, if mailed, five days after the time of mailing and 48 hours
after the time of telexing or telegraphing, and if
<PAGE>

delivered, upon the date of delivery. If normal mail service, telex service or
telegraph service is interrupted by strike, slowdown, force majeure or other
cause, a notice sent by the impaired means of communication will not be deemed
to be received until actually received, and the party sending the notice will
utilize any other such services which have not been so interrupted or shall
deliver such notice in order to ensure prompt receipt thereof.

5.6       Time will be of the essence hereof.

5.7       This Agreement will be deemed to have been made and will be construed
in accordance with the laws of the Province of British Columbia and will be
treated in all respects as a British Columbia contract and the courts in British
Columbia will have exclusive jurisdiction over any disputes arising out of this
Agreement.

5.8       Should there be a disagreement or a dispute between the parties hereto
with respect to this Agreement or the interpretation of this Agreement, the
dispute will be referred to arbitration in accordance with the British Columbia
Commercial Arbitration Act.

5.9       The captions and section numbers appearing in this Agreement are
inserted for convenience of reference only and will in no way define, limit,
construe or describe the scope or intent of this Agreement nor in any way affect
this Agreement.

5.10      This Agreement will enure to the benefit of and be binding upon the
Shareholders and their respective representatives, successors, heirs, executors,
administrators, receivers, and permitted assigns.

5.11      This Agreement may be executed in counterparts, and if so executed,
all such parts will be read as constituting one agreement in the same manner as
if all parties executing this Agreement in counterparts were signatories to one
copy of this Agreement.

          IN WITNESS WHEREOF the parties hereto have hereunto set their
respective hands and seals in the presence of their duly authorized signatories
as at date first written above.

SIGNED, SEALED AND DELIVERED        )
by GUY CRAMER, a Licensor herein,   )
in the presence of:                 )
                                    )
____________________________________)
Name                                )     /s/ Guy Cramer
                                    )     -------------------------------
                                    )     GUY CRAMER
____________________________________)
Address                             )
                                    )
____________________________________)
Occupation                          )
<PAGE>

SIGNED, SEALED AND DELIVERED        )
by GINO GEMMA, a Licensor herein,   )
in the presence of:                 )
                                    )
____________________________________)
Name                                )    /s/ Gino Gemma
                                    )    ----------------------------
                                    )    GINO GEMMA
____________________________________)
Address                             )
                                    )
____________________________________)
Occupation                          )

SIGNED, SEALED AND DELIVERED        )
by ROBERT DYMONT, a Licensor herein,)
in the presence of:                 )
                                    )
____________________________________)
Name                                )    /s/ Robert Dymont
                                    )    ----------------------------
                                    )    ROBERT DYMONT
____________________________________)
Address                             )
                                    )
____________________________________)
Occupation                          )

SIGNED, SEALED AND DELIVERED by     )
SVEN (ROY) TJELTA, a Licensor herein)
in the presence of:                 )
                                    )
____________________________________)
Name                                )    /s/ Roy Tjelta
                                    )    ----------------------------
                                    )    S.O. (ROY) TJELTA
____________________________________)
Address                             )
                                    )
____________________________________)
Occupation                          )<PAGE>

                                                                    Exhibit 10.7

                               LICENSE AGREEMENT

THIS LICENSE AGREEMENT is made effective (the "Effective Date") the 18/th/ day
of March, 1999.

BETWEEN:

          GUY CRAMER, businessman, of 1335 Sutherland Avenue,
          Port Coquitlam, British Columbia  V3B 7G7

          ("Cramer")
                                                              OF THE FIRST PART

AND:

          GINO GEMMA, businessman, of 6441 Lougheed Highway,
          Burnaby, British Columbia  V5B 3A1

          ("Gemma")
                                                              OF THE SECOND PART

AND:

          ROBERT DYMONT, businessman, of 346 Mount Parke Drive,
          P.O. Box 103, Mayne Island, British Columbia  V0N 2J0

          ("Dymont")
                                                              OF THE THIRD PART

AND:

          S.O. (ROY) TJELTA, businessman, of 346 Mount Parke Drive,
          P.O. Box 103, Mayne Island, British Columbia V0N 2J0

          ("Tjelta")
                                                              OF THE FOURTH PART

          (Cramer, Gemma, Dymont and Tjelta collectively referred to as the
          "Licensors")
<PAGE>

                                      -2-

AND:

          HYPERSTEALTH BIOTECHNOLOGY CORPORATION, a company duly incorporated
          under the laws of British Columbia and having an address for notice
          and delivery located at 6441 Lougheed Highway, Burnaby, British
          Columbia V5B 3A1

          (the "Licensee")
                                                               OF THE FIFTH PART

WHEREAS:

A.        The Licensors have developed and are the exclusive owners of certain
technology relating to hyperbaric chambers and a passive negative ion generator
(such technology hereinafter collectively referred to as the "Hyperstealth
Technology"); and

B.        The Licensors have agreed, pursuant to the terms of this Agreement, to
grant unto the Licensee the sole and exclusive right and capacity to market,
sell, develop and produce the Hyperstealth Technology in Canada (such
geographical jurisdiction hereinafter referred to as the "Territory").

NOW THEREFORE THIS AGREEMENT WITNESSETH that, in consideration of the mutual
covenants and provisos herein contained, the parties hereto agree as follows:

                                   Article 1

                   DEFINITIONS, SCHEDULES AND INTERPRETATION
                   -----------------------------------------

1.1       Definitions. For all purposes of this Agreement, except as otherwise
          -----------
expressly provided or unless the context otherwise requires, the following words
and phrases will have the following meanings:

     (a)  "Agreement" means this Agreement, as amended from time to time;

     (b)  "business day" means any day during which Canadian Chartered Banks are
          open for business in the City of Vancouver, Province of British
          Columbia;

     (c)  "Closing" has the meaning ascribed to it in section 8.3;

<PAGE>

     (d)  "Defaulting Party" has the meaning ascribed to it in section 10.1.

     (e)  "Effective Date" has the meaning ascribed to it on the front page of
          this Agreement;

     (f)  "Hyperstealth Technology" has the meaning ascribed to it in recital
          "A";

     (g)  "Improvements" has the meaning ascribed to it in section 5.1.

     (h)  "Initial Term" has the meaning ascribed to it in section 7.1.

     (i)  "Licensee" means Hyperstealth Biotechnology Corporation, a company
          duly incorporated under the laws of British Columbia, or any successor
          company, however formed, whether as a result of merger, amalgamation
          or other action;

     (j)  "Licensors" means Guy Cramer, Gino Gemma, Robert Dymont and S.O. (Roy)
          Tjelta, collectively;

     (k)  "Non-Defaulting Party" has the meaning ascribed to it in section 10.1.

     (l)  "Non-Renewal Notice" has the meaning ascribed to it in section 7.2.

     (m)  "Option" has the meaning ascribed to it in section 8.1.

     (n)  "Party" or "Parties" means the Licensors and/or the Licensee, as the
          context so requires, and their respective successors and permitted
          assigns as the context so requires;

     (o)  "Purchase Price" has the meaning ascribed to it in section 8.1.

     (p)  "Retirement" has the meaning ascribed to it in section 3.2;

     (q)  "Royalty" has the meaning ascribed to it in section 3.1; and
<PAGE>

                                      -4-

     (r)  "Territory" has the meaning ascribed to it in recital "B".

1.2       Interpretation. For the purposes of this Agreement, except as
          --------------
otherwise expressly provided or unless the context otherwise requires:

     (a)  the words "herein", "hereof" and "hereunder" and other words of
          similar import refer to this Agreement as a whole and not to any
          particular Article, section or other subdivision of this Agreement;

     (b)  the headings are for convenience only and do not form a part of this
          Agreement nor are they intended to interpret, define or limit the
          scope or extent of this or any provision of this Agreement;

     (c)  any reference to an entity will include and will be deemed to be a
          reference to any entity that is a permitted successor to such entity;
          and

     (d)  words in the singular include the plural and words in the masculine
          gender include the feminine and neuter genders, and vice versa.

                                   Article 2

                          GRANT OF EXCLUSIVE LICENSE
                          --------------------------

2.1       Grant of License. The Licensors hereby grant to the Licensee an
          ----------------
exclusive license during the continuance of this Agreement to distribute and
market the Hyperstealth Technology in the Territory, subject to section 2.2.

2.2       Loss of Territory, Exclusive License and Option. In the event the
          -----------------------------------------------
Licensee sells less than two hyperbaric chambers utilizing the Hyperstealth
Technology (or the equivalent monetary value in rental or franchise revenue or
other revenue) in any year after the second year of the Initial Term of this
Agreement, then the Licensors will have the right, upon providing the Licensee
of 30 written days' notice of such, to alter the Licensee's Territory, to amend
section 2.1 so as to grant to the Licensee a non-exclusive license and to revoke
its grant of Option set out in Article 8.
<PAGE>

                                      -5-

                                   Article 3

                                ROYALTY PAYMENT
                                ---------------

3.1       Royalty. The Licensors will receive a royalty (the "Royalty") of an
          -------
aggregate 4% of gross revenues, as defined below, received by the Licensee in
connection with the marketing, sale, distribution, production, franchise, sub-
licensing or operations or any other source of revenue related to the
Hyperstealth Technology, which Royalty will be divided amongst the Licensors as
follows:

     (a)  A 1% Royalty will be payable to Cramer;

     (b)  A 1% Royalty will be payable to Gemma;

     (c)  A 1% Royalty will be payable to Dymont; and

     (d)  A 1% Royalty will be payable to Tjelta.

The Licensee will remit Royalty payments to the Licensors within 30 days of each
calendar quarter for sales of such quarter, based on the aggregate of all
quarters since year commencement, and will be reconciled annually within 120
days of year end.  The revenues on which the Royalty is calculated will be gross
sales less any sales commissions related to such sales.

                                   Article 4
                                   ---------

                    ACCOUNTING, INSPECTIONS AND ENFORCEMENT
                    ---------------------------------------

4.1       Maintenance of Separate Accounts. The Parties agree that the Licensee
          --------------------------------
will maintain, at its principal place of business, separate accounts and records
of business and activities conducted with respect to the Hyperstealth Technology
and such accounts and records will be in sufficient detail as to enable Royalty
calculations to be properly made under this Agreement. The Licensee will retain
the accounts and records for at least one year after the date upon which they
were made and presented to the Licensors. The Licensee will furnish such
reasonable evidence as the Licensors deem necessary to verify the accounting and
will permit the Licensors' representatives to make copies of or extracts from
such accounts and records.
<PAGE>

                                      -6-

                                   Article 5
                                   ---------

                   OWNERSHIP OF THE HYPERSTEALTH TECHNOLOGY
                   ----------------------------------------

5.1       Ownership of Hyperstealth Technology. The Licensee warrants and
          ------------------------------------
agrees that the Licensors own any and all right, title and interest in and to
the Hyperstealth Technology, including any and all improvements, variations and
enhancements made with respect to the Hyperstealth Technology. The Licensee
further warrants and agrees that all improvements, variations, generations or
replacements (collectively, the "Improvements") of the Hyperstealth Technology
belong to the Licensors, whether developed or acquired by the Licensee or the
Licensors, until such time as the Licensee purchases same in accordance with
Article 8.

5.2       Ownership of Patents, etc. The Licensee warrants and agrees that all
          --------------------------
patents, trademarks, copyright and other intellectual right, property and
information, whether now existing, in progress, or arising in the future in any
jurisdiction, of or in relation to the Hyperstealth Technology, and as between
the Parties and any affiliates, subsidiaries, associates, or personnel of the
Licensee, belong solely and exclusively to the Licensors until such time as the
Licensee purchases same in accordance with Article 8.

5.3       Prohibition Against Dispute. The Licensee covenants and agrees that,
          ---------------------------
during and after the term of this Agreement, it will not contest the Licensors'
Hyperstealth Technology nor will it in any way dispute or impugn the validity of
the Licensors' ownership, patent, copyright or trademark therein until such time
as the Licensee purchases the Hyperstealth Technology in accordance with Article
8.

5.4       Notification of Infringement. The Licensee will immediately notify
          ----------------------------
the Licensors of any infringement or challenge or duplicate to the copyright,
trademark or patent or proprietorship of the Hyperstealth Technology as soon as
the Licensee becomes aware of such and, should such occur in the Territory, such
challenge will be defended or prosecuted by the Licensors at the mutual and
equal cost of the Parties.

                                   Article 6

                   LICENSEE IS INDEPENDENT AND NOT AN AGENT
                   ----------------------------------------

6.1       Independent Contractor. The Licensee will be an independent contractor
          ----------------------
and not an employee of the Licensors, and the Licensors assume no obligations,
contractual or otherwise, existing or which may arise with respect to the
Licensee's operations. Nothing contained herein will constitute a partnership or
joint venture between the parties hereto, and all sales made by the Licensee
will be in the Licensee's name without reference to the Licensors if deemed so.
<PAGE>

                                      -7-

6.2       Licensee not Agent. The Licensee will have no right to pledge the
          ------------------
credit of the Licensors, and the Licensee is not, and will not describe itself
as, the agent of the Licensors.

                                   Article 7

                             TERM AND TERMINATION
                             --------------------

7.1       Term. This Agreement will be effective commencing the date first
          ----
herein set forth, and will continue for a term of ten (10) years (the "Initial
Term"), subject to termination in accordance with this Agreement.

7.2       Automatic Renewal. The Licensee will have the right to extend the Term
          -----------------
automatically, and without further act, for an additional successive 10 year
period (the "Second Term") subject to the Licensee not being in default at the
termination of the Initial Term. The Licensee will provide the Licensors with
written notice at least 90 days' prior to the end of the Initial Term of its
intent not to renew the Agreement (the "Non-Renewal Notice"). Should the
Licensee fail to provide a Non-Renewal Notice, this Agreement will automatically
renew for an additional 10 year period.

7.3      Immediate Termination for Cause by Licensors. Notwithstanding any other
         --------------------------------------------
provision of this Agreement, the Licensors may, at their option and in their
sole discretion, terminate this Agreement immediately on the happening of any
one or more of the following events by delivering notice in writing to this
effect to the Licensee:

     (a)  if any proceeding under any bankruptcy legislation is commenced by or
          against the Licensee which results in the Licensee being adjudged
          bankrupt, (such proceedings will not include a general proposal to
          creditors provided such proposal does not result in the appointment of
          a receiver or the loss of control of the business of the Licensee by
          its board and shareholders); or

     (b)  if any execution, sequestration, or any another process of any court
          becomes enforceable against the Licensee or if any such process is
          levied on the rights under this Agreement or upon any of the monies
          due to the Licensors and is not released or satisfied by the Licensee,
          within 30 days thereafter; or if any resolution is passed or order
          made or other steps taken during the winding up, liquidation or other
          termination of the existence of the Licensee, or

     (c)  if the Licensee is more than 30 days in arrears of payments due under
          this Agreement; or
<PAGE>

                                      -8-

     (d)  if the Licensee ceases or threatens to cease to carry on its business;
          or

     (e)  if the Licensee is in default of this Agreement and fails to have
          cured or defeated the default in accordance with the terms of Article
          10.

7.4       Termination upon Expiry of Term. This Agreement will automatically
          -------------------------------
expire at the end of the Term unless renewed in accordance with section 7.2.

7.5       Termination upon Exercise of the Option. This Agreement, including the
          ---------------------------------------
Royalty payments payable by the Licensee to the Licensors pursuant to Article 3,
will automatically terminate upon exercise in full of the Option as set out in
Article 8.

7.6       Payments upon Termination. If this Agreement is terminated, unless
          -------------------------
terminated pursuant to section 7.5, the Licensee will immediately make all
payments to the Licensors in the manner and in accordance with Article 3 to the
date of termination, without prejudice to any claim in damages if wrongfully
terminated. The Licensee will return forthwith any and all information related
to the Hyperstealth Technology.

                                   Article 8

                              OPTION TO PURCHASE
                              ------------------

8.1       Option to Purchase. Subject to section 2.2, the Licensors hereby grant
          ------------------
to the Licensee the right, (i) on the earlier of the expiry of the Initial Term
or upon two consecutive years of attaining $2,000,000 in net profits or (ii) at
any time during the Second Term provided this Agreement has been renewed
pursuant to section 7.2, the option (the "Option") to purchase from the
Licensors all of their rights, title and interests in and to the Hyperstealth
Technology, including any and all patents, trademarks, copyright and other
intellectual rights relating to the Hyperstealth Technology in consideration for
that amount equal to 5% of the gross profits (being profit before deduction of
any taxes or office over-head) received by the Licensee during the previous two
years with respect to any and all business relating to the Hyperstealth
Technology (the "Purchase Price"). In the event the Licensee has assigned this
license, or any part, to any third parties, such third parties' gross profits
will be calculated together with the Licensee's gross profits in determining the
Purchase Price payable for the Hyperstealth Technology.

8.2       Exercise of Option. The Licensee will provide the Licensors with 60
          ------------------
days prior notice of its intent to exercise the Option. Together with the
requisite written notice, the Licensee will provide the Licensors with its
audited calculations of the Purchase Price. Should the Licensors dispute the
Purchase Price provided by the Licensee, the Licensors will employ, at their own
expense, an auditor of their choice to
<PAGE>

                                      -9-

produce audited calculations of the Purchase Price, and in such event, the
Licensee will make available to such auditor or its agents or representatives,
all books and accounting records as are deemed necessary by such auditor to
assist such auditor in compiling audited calculations for the Purchase Price. In
the event the Purchase Price produced by the Licensee and the Purchase Price
produced by the Licensor are within $50,000 of each other, the Purchase Price
will be that Purchase Price produced by the Licensee. In the event there is
greater than a $50,000 difference between the Purchase Price produced by the
Licensee and the Purchase Price produced by the Licensors, the Parties will
together choose an independent auditor to provide audited calculations of the
Purchase Price and the Purchase Price so derived at will be the Purchase Price.
In the event the Parties are unable to agree on a joint auditor, this matter
will be sent to Arbitration pursuant to Article 17.

8.3       Completion of Exercise of Option. The exercise of the Option will be
          --------------------------------
completed within 30 days of the Purchase Price being determined to the
satisfaction of all Parties, or such other date as the Parties mutually agree
(the "Closing"). At the Closing, the Licensee will deliver to the Licensors a
cheque or bank draft for the Purchase Price and the Licensors will deliver to
the Licensee evidence of transfer of the Hyperstealth Technology from the
Licensors to the Licensee.

                                   Article 9

                                  ASSIGNMENT
                                  ----------

9.1       Assignment by Licensee. Subject to section 9.2, the Licensee will not
          ----------------------
assign any rights or interests under this Agreement in whole or in part unless
it will have first requested and obtained the written consent of the Licensors
to such proposed assignment. The Licensors' consent thereto will not be
unreasonably withheld provided that the proposed assignee has agreed in writing
with the Licensors to be bound by the terms and conditions of this Agreement.

9.2       Permissible Assignment by Licensee. The Licensee may sub-license or
          ----------------------------------
franchise the right to market, sell, develop and produce the Hyperstealth
Technology without the prior written consent of the Licensors so long as the
sublicensing or franchising is of a license nature only and not a disposition of
any part of the intellectual property attached to the Hyperstealth Technology
provided that any sub-licensee or franchisee agrees to comply with the terms and
conditions of this Agreement and provided that the Licensee provides the
Licensors with written notice of such sub-license or franchise within 30 days of
entering into such agreement.

9.3       Assignment by Licensors. This Agreement and all rights hereunder may
          ------------------------
be assigned or transferred by the Licensors at any time provided that the
Licensors' assignee agrees to expressly honour the terms and conditions of this
Agreement.
<PAGE>

                                     -10-

                                  Article 10

                                    DEFAULT
                                    -------

10.1      Default.   The Parties agree that if any Party is in default with
          -------
respect to any of the provisions of this Agreement (the "Defaulting Party"), the
non-defaulting Parties (the "Non-Defaulting Party") will give notice to the
Defaulting Party designating such default, and within 10 calendar days after its
receipt of such notice, the Defaulting Party will either:

   (a)    cure such default, or commence proceedings to cure such default and
          prosecute the same to completion without undue delay; or

   (b)    give the Non-Defaulting Party notice that it denies that such default
          has occurred and that it is submitting the question to arbitration as
          herein provided.

10.2      Arbitration.   If arbitration is sought a Party will not be deemed in
          -----------
default until the matter will have been determined finally by appropriate
arbitration under the provisions of Article 17.

10.3      Curing the Default.   If:
          ------------------

   (a)    the default is not cured or the Defaulting Party does not commence or
          diligently proceed to cure the default; or

   (b)    arbitration is not so sought; or

   (c)    the Defaulting Party is found in arbitration proceedings to be in
          default, and fails to cure it within five calendar days after the
          rendering of the arbitration award,

the Non-Defaulting Party may, by written notice given to the Defaulting Party at
any time while the default continues, terminate the interest of the Defaulting
Party in and to this Agreement.
<PAGE>

                                     -11-

                                  Article 11

                                NON-COMPETITION
                                ---------------

11.1      Non-Competition.   Other than the full enjoyment of the within License
          ---------------
rights during this Agreement, and for a period of two years after termination or
expiry, the Licensee will not compete with the Licensors or their Hyperstealth
Technology or engage in manufacturing, distribution, sales, or development of
technology similar to the Hyperstealth Technology in the Territory or elsewhere
nor enter into any partnerships, share ownerships, or any other relationship to
the same effect nor will it provide any assistance to any parties, whether
technical, informational, or otherwise, to the same effect.  At no time, before
or after this Agreement, will the Licensee employ the technical knowledge
obtained from the Licensors in relation to the Hyperstealth Technology to
develop any product or process similar to or competitive with the Hyperstealth
Technology.

                                  Article 12

                                CONFIDENTIALITY
                                ---------------

12.1      Confidential Information.   All information in respect to the
          ------------------------
Hyperstealth Technology, whether documentary, electronic storage, or otherwise,
will be maintained in confidence by the Licensee and Licensors and the Parties
will establish security systems and control systems to the reasonable
satisfaction of the Licensors to protect the technology behind the Hyperstealth
Technology.

                                  Article 13

                                   INSURANCE
                                   ---------

13.1      Product Liability Insurance.   The Licensee will acquire, and will
          ---------------------------
give notice to the Licensors prior to the sale and delivery of the first
hyperbaric chamber utilizing the Hyperstealth Technology under this Agreement,
public liability and product liability insurance which in no case will be less
than the insurance which a reasonable and prudent businessman carrying on a
similar line of business would acquire.  This insurance will be placed with a
reputable and financially secure insurance carrier and will include the
Licensors as additional insureds and will provide primary coverage with respect
to the
<PAGE>

                                     -12-

activities contemplated by this Agreement.  The Licensee will provide the
Licensors with certificates of insurance evidencing such coverage five calendar
days before the commencement of sales under this Agreement and the Licensee
warrants not to sell any hyperbaric chambers before such certificate is provided

                                  Article 14

                                   INDEMNITY
                                   ---------

14.1      Indemnity.   The Licensee covenant, warrants and agrees that it will
          ---------
indemnify, hold harmless and defend the Licensors against any and all claims
arising out of the exercise of any rights under this Agreement including,
without limiting the generality of the foregoing, against any damages or losses,
consequential or otherwise, arising from or out of the use of the Hyperstealth
Technology by the Licensee, or its customers or end-users.

14.2      Proprietary Indemnity.   During the term of this Agreement, and after
          ---------------------
termination for default or otherwise, the Licensee covenants, warrants and
agrees that it will indemnify and compensate the Licensors for any loss of the
technology behind the Hyperstealth Technology or damage to the hyperbaric
chambers or the Licensors' reputation by any act, commission, negligence,
failure to act or failure to defend the Hyperstealth Technology.

                                  Article 15

                 REPRESENTATIONS AND WARRANTIES BY THE PARTIES
                 ---------------------------------------------

15.1      Representations and Warranties by the Licensors.   In order to induce
          -----------------------------------------------
the Licensee to enter into this Agreement, the Licensors and each of them hereby
represent and warrant to the Licensee, with the intent that the Licensee will
rely on such representations and warranties in entering into this Agreement and
in concluding the transactions contemplated in this Agreement, that, to the best
of the knowledge, information and belief of the Licensors and each of them,
after having made due enquiry:

   (a)    the Licensors and each of them have the power and capacity to grant
          the license and the Option referred to in this Agreement, the full
          power and authority to enter into this Agreement and any agreement or
          instrument
<PAGE>

                                     -13-

          referred to in or contemplated by this Agreement, and to carry out the
          terms of this Agreement to the full extent.

15.2      Representations and Warranties by the Licensee.   In order to induce
          ----------------------------------------------
the Licensors to enter into this Agreement, the Licensee hereby represents and
warrants to the Licensors, with the intent that the Licensors will rely on such
representations and warranties in entering into this Agreement and in concluding
the transactions contemplated in this Agreement, that, to the best of the
knowledge, information and belief of the Licensee, after having made due
enquiry:

   (a)    the Licensee has been duly incorporated and organized, is validly
          existing and is in good standing under the laws of the jurisdiction of
          its incorporation;

   (b)    the Licensee has the full corporate power and authority to enter into
          this Agreement;

   (c)    the Licensee is duly registered and licensed to carry on business in
          the jurisdictions in which it carries on business or owns property
          where required under the laws of that jurisdiction;

   (d)    the entering into of this Agreement by the Licensee does not and will
          not conflict with, and does not and will not result in a breach of,
          any of the terms of the Licensee's incorporating documents or any
          agreement or instrument to which the Licensee is a party; and

   (e)    this Agreement has been duly authorized by all necessary corporate
          action on the part of the Licensee, is validly executed and delivered
          by the Licensee and is enforceable in accordance with its terms.

                                  Article 16

                                 FORCE MAJEURE
                                 -------------

16.1      Events.   If either Party is at any time either during this Agreement
          ------
or thereafter prevented or delayed in complying with any provisions of this
Agreement by reason of strikes, walk-outs, labour shortages, power shortages,
fires, wars, acts of God, earthquakes, storms, floods, explosions, accidents,
protests or demonstrations by environmental lobbyists or native rights groups,
delays in transportation, breakdown of machinery, inability to obtain necessary
materials in the open market, unavailability of equipment, governmental
regulations restricting normal operations, shipping delays or any other reason
or reasons beyond the control of that Party, then the time limited for the
<PAGE>

                                     -14-

performance by that Party of its respective obligations hereunder will be
extended by a period of time equal in length to the period of each such
prevention or delay.

16.2      Notice.   A Party will within three calendar days give notice to the
          ------
other Party of each event of force majeure under section 16.1, and upon
cessation of such event will furnish the other Party with notice of that event
together with particulars of the number of days by which the obligations of that
Party hereunder have been extended by virtue of such event of force majeure and
all preceding events of force majeure.

                                  Article 17

                                  ARBITRATION
                                  -----------

17.1      Arbitration.   Any dispute between the parties arising out of or in
          -----------
connection with this Agreement which cannot be settled amicably will be
transferred and settled finally by arbitration in accordance with the Commercial
Arbitration Act (British Columbia) and such arbitration will be held in
Vancouver, British Columbia.

17.2      Notice.   It will be a condition precedent to the right of any Party
          ------
to submit any matter to arbitration, that any Party intending to refer any
matter to arbitration will have given not less than five business days' prior
written notice of its intention to do so to the other Party together with
particulars of the matter in dispute.  On the expiration of such five business
days the Party who gave such notice may proceed to refer the dispute to
arbitration as provided for in section 17.1.

                                  Article 18

                                    NOTICE
                                    ------

18.1      Notice.   Each notice, demand or other communication required or
          ------
permitted to be given under this Agreement will be in writing and will be sent
by prepaid registered mail deposited in a recognized post office and addressed
to the Party entitled to receive the same, or delivered to such Party, at the
address for such Party specified on the front page of this Agreement.  The date
of receipt of such notice, demand or other communication will be the date of
delivery thereof if delivered, or, if given by registered mail as aforesaid,
will be deemed conclusively to be the third day after the same will have been so
mailed, except in the case of interruption of postal services for any reason
whatsoever, in which case the date of receipt will be the date on which the
notice, demand or other communication is actually received by the addressee.
<PAGE>

                                     -15-

18.2      Change of Address.   Either Party may at any time and from time to
          -----------------
time notify the other Party in writing of a change of address and the new
address to which notice will be given to it thereafter until further change.

                                  Article 19

                              GENERAL PROVISIONS
                              ------------------

19.1      Entire Agreement.   This Agreement constitutes the entire agreement to
          ----------------
date between the Parties hereto and supersedes every previous agreement,
expectation, negotiation, representation or understanding, whether oral or
written, express or implied, statutory or otherwise, between the Parties with
respect to the subject matter of this Agreement.

19.2      Time of the Essence.   Time will be of the essence of this Agreement.
          -------------------

19.3      Regulatory Approval.   This Agreement is subject to the prior
          -------------------
Regulatory Approval, if required, of each of the Regulatory Authorities.

19.4      Prompt Execution of Document.   The parties will promptly execute or
          ----------------------------
cause to be executed all documents, deeds and other instruments of further
assurance which may be reasonably necessary or advisable to carry out fully the
intent of this Agreement.

19.5      Further Assurances.   The Parties will from time to time after the
          ------------------
execution of this Agreement make, do, execute or cause or permit to be made,
done or executed, all such further and other acts, deeds, things, devices and
assurances in law whatsoever as may be required to carry out the true intention
and to give full force and effect to this Agreement.

19.6      Enurement.   This Agreement will enure to the benefit of and be
          ---------
binding upon the parties and their respective successors, heirs, executives,
administrators and permitted assigns.

19.7      Representation and Costs.   It is hereby acknowledged by each of the
          ------------------------
Parties hereto that, as between the Licensors and the Licensee herein, Devlin
Jensen, Barristers and Solicitors, acts solely for the Licensee, and that the
Licensors have been advised by both Devlin Jensen and the Licensee to obtain
independent legal advice with respect to the Licensors' review and execution of
this Agreement.  In addition, it is hereby further acknowledged and agreed by
the Parties hereto that each Party to this Agreement will bear and pay its own
costs, legal and otherwise, in connection with its respective preparation,
review and execution of this Agreement and, in particular, that the
<PAGE>

                                     -16-

costs involved in the preparation of this Agreement, and all documentation
necessarily incidental thereto, by Devlin Jensen will be at the cost of the
Licensee.

19.8      Laws of British Columbia.   This Agreement will be deemed to have been
          ------------------------
made and will be construed in accordance with the laws of the Province of
British Columbia and will be treated in all respects as a British Columbia
contract and the courts in British Columbia will have exclusive jurisdiction
over any disputes arising out of this Agreement.

19.9      Severability and Construction.   Each Article, section, paragraph,
          -----------------------------
term and provision of this Agreement, and any portion thereof, will be
considered severable, and if, for any reason, any portion of this Agreement is
determined to be invalid, contrary to or in conflict with any applicable present
or future law, rule or regulation in a final unappealable ruling issued by any
court, agency or tribunal with valid jurisdiction in a proceeding to which any
Party hereto is a party, that ruling will not impair the operation of, or have
any other effect upon, such other portions of this Agreement as may remain
otherwise intelligible (all of which will remain binding on the Parties and
continue to be given full force and effect as of the date upon which the ruling
becomes final).

19.10     Captions.   The captions, section numbers and Article numbers
          --------
appearing in this Agreement are inserted for convenience of reference only and
will in no way define, limit, construe or describe the scope or intent of this
Agreement nor in any way affect this Agreement.

19.11     No Partnership or Agency.   The Parties have not created a partnership
          ------------------------
and nothing contained in this Agreement will in any manner whatsoever constitute
any Party the partner, agent or legal representative of the other Party, nor
create any fiduciary relationship between them for any purpose whatsoever.

19.12     Consents and Waivers.   No consent or waiver expressed or implied by
          --------------------
either Party in respect of any breach or default by the other in the performance
by such other of its obligations hereunder will:

     (a)  be valid unless it is in writing and stated to be a consent or waiver
          pursuant to this section;

     (b)  be relied upon as a consent to or waiver of any other breach or
          default of the same or any other obligation;

     (c)  constitute a general waiver under this Agreement; or
<PAGE>

                                     -17-

     (d)  eliminate or modify the need for a specific consent or waiver pursuant
          to this section in any other or subsequent instance.

19.13     Execution in Counterpart.   This Agreement may be executed in
          ------------------------
counterparts, and if so executed, all such parts will be read as constituting
one agreement in the same manner as if all parties executing this Agreement in
counterparts were signatories to one copy of this Agreement.

          IN WITNESS WHEREOF the Parties hereto have hereunto set their
respective hands and seals in the presence of their duly authorized signatories
as at the Effective Date as hereinabove determined.

SIGNED, SEALED AND DELIVERED        )
by GUY CRAMER, a Licensor herein,   )
in the presence of:                 )
                                    )
____________________________________)
Name                                )     /s/ Guy Cramer
                                    )     -------------------
                                    )     GUY CRAMER
                                    )
____________________________________)
Address                             )
                                    )
                                    )
____________________________________)
Occupation                          )

SIGNED, SEALED AND DELIVERED        )
by GINO GEMMA, a Licensor herein,   )
in the presence of:                 )
                                    )
____________________________________)
Name                                )     /s/ Gino Gemma
                                    )     -------------------
                                    )     GINO GEMMA
                                    )
____________________________________)
Address                             )
                                    )
                                    )
____________________________________)
Occupation                          )
<PAGE>

                                     -18-

SIGNED, SEALED AND DELIVERED         )
by ROBERT DYMONT, a Licensor herein, )
in the presence of:                  )
                                     )
                                     )
_____________________________________)
Name                                 )     /s/ Robert Dymont
                                     )     ----------------------
                                     )     ROBERT DYMONT
                                     )
_____________________________________)
Address                              )
                                     )
                                     )
_____________________________________)
Occupation                           )

SIGNED, SEALED AND DELIVERED by       )
S.O. (ROY) TJELTA, a Licensor herein  )
in the presence of:                   )
                                      )
                                      )
______________________________________)
Name                                  )     /s/ Roy Tjelta
                                      )     --------------------
                                      )     S.O. (ROY) TJELTA
                                      )
______________________________________)
Address                               )
                                      )
                                      )
______________________________________)
Occupation                            )

The CORPORATE SEAL OF                 )
HYPERSTEALTH BIOTECHNOLOGY CORPORATION)
the Licensee herein, was hereunto     )
affixed in the presence of:           )
                                      )                (C/S)
 /s/ [ILLEGIBLE]^^                    )
--------------------------------------)
Authorized Signatory                  )

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