Document:

Letter Agreement - Shell Co. Purchase

5

EXHIBIT 4.6

CUSIL VENTURE CORPORATION

1400-400 Burrard Street

Vancouver, B.C., 

V6C 3G2

Telephone: (604) 643-1789  Telefax: (604) 689-1749

December 5, 2001

InNexus Inc.

Alton C. Morgan

Gail S. Thurston

3405 172nd Street NE #196

Arlington, Washington, 98223

(425) 696-0068

Dear Sirs:

Re:

InNexus Inc. ("InNexus") – Reverse Takeover and Public Listing on CDNX

Upon acceptance, this letter shall constitute the agreement between Cusil Venture Corporation (“CUSIL”), InNexus, and the undersigned shareholders of InNexus (collectively referred to as the "Shareholders") with respect to the proposed transaction (the “RTO”) involving, among other things, the issuance of common shares of CUSIL or, where provided for herein or otherwise agreed to by the parties, an equivalent number of Exchangeable Preferred Shares, in consideration for the sale or assignment of the Transferred Assets by InNexus to CUSIL or its subsidiaries, together with the sale by the Shareholders of all of the outstanding shares of InNexus (the "InNexus Shares") and certain outstanding indebtedness of InNexus in the approximate amount of $172,000 USD (the “Debts”) owed, directly or indirectly, to the Shareholders and certain other parties (together, the “Creditors”) (the InNexus Shares and the portion of the Debts owed to the Shareholders being together referred to as the “Shareholders’ Securities”), all on the following terms and conditions:

1

Definitions

1.1

Any capitalized terms used herein and not otherwise expressly defined shall have the meanings set out in the attached Schedule “A”.

2

Proposed RTO

2.1

At the Closing, on and subject to completion or waiver of the conditions in section 6 (the “Conditions”), InNexus and the Shareholders shall bargain, sell and assign (or cause InNexus or the Shareholders to so bargain, sell and assign) the InNexus Shares, the Transferred Assets and shall cause the Creditors to assign the Debts to CUSIL free and clear of all liens, charges and encumbrances in consideration for the issuance by CUSIL, in consideration for the issuance, as fully paid and non-assessable, by CUSIL, of  common shares of CUSIL (“CUSIL Shares”) or, where provided for herein or otherwise agreed to by the parties, in consideration for the issuance by USCo of an equivalent number of Exchangeable Preferred Shares, as follows:

(a)

InNexus shall sell and assign the Immune Network Ltd. (IMM) sub-license (the “IMM License”) to Offco in exchange for the issuance of 666,666 CUSIL Shares to IMM or its specified nominee (the “IMM Shares”) and CUSIL’s agreement to issue such additional CUSIL Shares at such times and in such proportionate amounts as InNexus is required to issue its common shares to IMM under the terms of the IMM License;

(b)

The Shareholders shall sell and transfer the InNexus Shares to InNexus in exchange for 10,080,000 common shares of CUSIL (the “Exchanged Shares”), less the number of shares issued in exchange for the Transferred Assets, or an equal number of Exchangeable Preferred Shares;

(c)

InNexus shall transfer the Transferred Assets to Offco, in consideration for the issuance to the Shareholders such number of Exchanged Shares or Exchangeable Preferred Shares as is equal to the fair market value of the Transferred Assets (up to a maximum of the total number of Exchanged Shares) as determined by the parties or by an independent valuator or other qualified person acceptable to the parties; and 

(d)

The Shareholders shall cause the Creditors to assign the Debts to CUSIL in consideration for the issuance of CUSIL Shares to the Creditors at a deemed price of $0.50 CDN per share (the “Debt Settlement Shares”).

2.3

The IMM Shares, the Exchanged Shares and the Debt Settlement Shares or, where issued in lieu of CUSIL Shares, the Exchangeable Preferred Shares, shall be issuable, as fully paid and non-assessable, on and subject to such escrow restrictions or resale restrictions as may be required under the applicable rules and policies of the Canadian Venture Exchange Inc. (the “CDNX”) and such additional performance criteria as CUSIL and InNexus may mutually agree to. 

2.4

The completion of the RTO (the "Closing") shall take place, on and subject to fulfillment or waiver of the Conditions, on the fifth (5th) business day after receipt of the Approvals (herein defined) or such other day as the Shareholders and CUSIL may agree to in writing (the "Closing Date") at the office of CUSIL's solicitors, Messrs. Leschert & Company Law Corporation at 2:00 p.m., Pacific Standard Time a.m./p.m., local time, or at such other time and place as the parties may agree to in writing.

2.5

The parties acknowledge that it is their intent to structure the purchase and sale contemplated herein in a tax-efficient manner so as to minimize the amount of tax payable by the Shareholders or to defer the date of payment thereof without causing increased tax liabilities to CUSIL.  The parties agree to review and consider such alternative structures including, without limitation, issuance of other types of securities by CUSIL or UsCo or other possible transactions which may enable the purchase and sale to be structured, in whole or in part, as a tax free exchange, provided that the Shareholders acknowledge and agree that they shall be responsible for any professional fees or other out of pocket expenses related to determination of such alternative structures or tax advice which is principally for the Shareholders’ benefit.

3

CUSIL Transactions 

3.1

As soon as practicable after execution hereof, CUSIL shall, take such steps as may be reasonably necessary to determine the prospective requirements of Regulatory Authorities for granting Approval to completion of the transactions contemplated herein including whether the CDNX will require CUSIL to obtain the services of a broker dealer who is a member of the CDNX to sponsor the proposed RTO (the “Sponsoring Broker”) to provide their preliminary sponsorship of the proposed RTO, including a recommendation that the shares of CUSIL continue trading pending regulatory review and completion of the RTO (“Preliminary Sponsorship”) and thereafter, upon completion of final due diligence reviews and completion of such other conditions as the Sponsoring Broker may specify, final sponsorship of the RTO and listing of the common shares of CUSIL, as constituted after completion of the RTO on the CDNX (“Final Sponsorship”) and to determine any other applicable requirements of the Regulatory Authorities to give effect to the transactions contemplated herein (“Preliminary Regulatory Review”).

3.2

Upon satisfactory completion of the Preliminary Regulatory Review, CUSIL shall commence such due-diligence reviews respecting InNexus and its affairs and other transactions as may, in its opinion, be necessary to obtain the Approvals required to be obtained by it prior to the Review Date, 

3.3

Upon acceptance of this Agreement and satisfactory completion of the transactions contemplated in section 3.2, CUSIL will instruct its solicitors to prepare a RTO agreement based on the terms and conditions set out herein and such other terms and conditions as CUSIL may reasonably require (the “Formal Agreement”) to be executed by CUSIL, the Shareholders and InNexus and substituted for this Agreement on or before the later of May 31, 2002 or the second business day after the date Cusil Venture Corp. receives confirmation from the Sponsoring Broker that it is prepared to grant its Preliminary Sponsorship, subject only to execution of the Formal Agreement.

4

Preliminary Transactions of Shareholders and InNexus

4.1

As soon as practicable after execution hereof, InNexus will:

(a)

Prepare audited financial statements for the three prior completed fiscal years of InNexus, with unqualified audit opinions thereon, and deliver same to CUSIL;

(b)

Deliver its minute book, copies of all material contracts and other documents pertaining to the assets, property, business and affairs of InNexus, as may be requested by CUSIL hereunder; 

(c)

In co-operation with CUSIL management, complete a business plan for InNexus or modify existing business plans for InNexus containing such information as may be required by a target issuer in an information circular prepared in connection with a change of business under applicable CDNX Listing Policies, including, without limitation, a 18 month pro-forma operating budget for InNexus, as combined with CUSIL upon completion of the RTO, and will deliver same to CUSIL legal counsel for filing (or for use in preparation of other documents required for filing) in due course with the CDNX; and

(d)

cause each of the proposed directors and senior officers of CUSIL who are not currently directors and officers of CUSIL to prepare CDNX Form 2A Personal Information Forms, BCSC Form 4B disclosure forms and deliver same to CUSIL legal counsel for filing with the CDNX in order to complete background checks.

4.2

As soon as practicable after receipt of a copy thereof, the Shareholders and InNexus shall enter into the Formal Agreement and deliver same to CUSIL.

4.3

Upon execution of the Formal Agreement, the parties hereto shall use their best efforts to ensure that each of the covenants and conditions of closing set forth therein are fulfilled as and when required thereunder.

5

Approvals

5.1

The obligations of CUSIL pursuant to this Agreement shall be subject to the following approvals (the "Approvals"):

(a)

the approval of the directors of CUSIL to any transaction contemplated herein requiring such approval including the RTO and the Formal Agreement;

(b)

the approval of the RTO by the shareholders of CUSIL;

(c)

approval of the RTO and any related transactions by the CDNX;

(d)

completion, to the satisfaction of CUSIL, of the Preliminary Regulatory Review;

(e)

receipt of any third party approvals required by the CDNX or other Regulatory Authorities as a condition of their granting approval to the RTO including, without limitation, any required sponsorship of the transactions contemplated herein by a broker who is a member of the CDNX;

(f)

receipt by InNexus of the consent of any third parties entitled to require InNexus to obtain their consent prior to the transfer of the InNexus Shares or any other transactions comprised in the RTO (including, without limitation, the consent of IMM to the assignment of the IMM License in exchange for the IMM Shares, as contemplated herein);

(g)

inspection and approval by CUSIL and its advisors, on or before January 31, 2001 or such later date as the parties may agree to in writing (the “Review Date”),of InNexus its ownership, assets, liabilities, contracts and prospects;

(h)

review and approval by CUSIL and its advisors, on or before the Review Date, of all contracts, agreements and corporate documentation of InNexus;

(i)

appointment or election on or before the Closing Date of the following persons, or such other persons as may be agreed to by CUSIL and InNexus, as directors of CUSIL, and the resignation of any other existing directors of CUSIL:

Name

Office

(i)

Stuart Rogers

 Director

(ii)

Alton C. Morgan

Director

(iii)

Gail S. Thurston

Director 

5.2

The requirement to obtain the Approvals set out in paragraphs 4.1(g) and (h) may be waived, in whole or in part, by CUSIL at any time.  The remaining approvals may be waived only by consent in writing of all the parties hereto.

6

Conditions

6.1

The obligations of CUSIL pursuant to this Agreement are subject to fulfillment of the following conditions on or before the earlier of Closing Date, the Termination Date or such other date as may be specified below:

(a)

all covenants, agreements and obligations to be performed or complied with hereunder on the part of the Shareholders and InNexus at or prior to the Closing, including in particular, the Shareholders' obligation to deliver the share certificates, documents and instruments herein provided for, shall have been performed and complied with as and when required hereunder;

(b)

receipt of all necessary Approvals on or before the Closing Date or such earlier date as may be specified herein;

(c)

execution of the Formal Agreement (defined below) by all required parties thereto on or before the later of May 31, 2002 or the second business day after the date Cusil Venture Corp. receives confirmation from the Sponsoring Broker that it is prepared to grant its Preliminary Sponsorship, subject only to execution of the Formal Agreement (the “Agreement Deadline”);

(d)

Alton C. Morgan and Gail S. Thurston (the “the Principals”) shall have executed and delivered formal employment agreements on such terms and conditions as may be and mutually agreed to by the the Principals and CUSIL and in such form as may be provided for in the Formal Agreement (the “Employment Agreements”);

(e)

the representations and warranties of the Shareholders and InNexus contained herein shall be true and correct in all material respects at and as of the date specified herein, except as may be in writing disclosed to and approved by CUSIL; and

(f)

provision by the Shareholders of such further representations, warranties and covenants respecting the status of InNexus, its assets and prospects as well as respecting the transferability of the InNexus Shares and other matters set forth herein as CUSIL may reasonably request.

6.2

The above stated conditions in section 6.2 shall be for the exclusive benefit of CUSIL and may be waived, in whole or in part, by CUSIL at any time.

6.3

The obligations of InNexus and the Shareholders pursuant to this Agreement are subject to fulfillment of the following conditions on or before the earlier of the Closing Date or the Termination Date:

(a)

all covenants, agreements and obligations to be performed or complied with hereunder on the part of CUSIL at or prior to the Closing, including in particular, its obligation to deliver the share certificates, documents and instruments herein provided for, shall have been performed and complied with as and when required hereunder; 

(b)

execution of the Formal Agreement by all required parties other than the Shareholders and InNexus; 

(c)

the due incorporation by CUSIL of Offco and USCo and, where required, the due creation and authorization by USCo of the Exchangeable Preferred Shares; 

(d)

the representations and warranties of CUSIL contained herein shall be true and correct in all material respects at and as of the date specified herein, except as may be in writing disclosed to and approved by the Shareholders and InNexus; and

(e)

provision by CUSIL of such further representations, warranties and covenants respecting the status of CUSIL, together other matters respecting the RTO and the transactions contemplated herein as InNexus may reasonably request.

6.4

the above stated conditions in section 6.3 shall be for the exclusive benefit of InNexus and the Shareholders and may be waived, in whole or in part, by InNexus and the Shareholders at any time.

7

Representations And Warranties

7.1

The Shareholders and InNexus represent, warrant and covenant, jointly and severally as follows:

(a)

the InNexus Shares are validly issued and outstanding as fully paid and non-assessable shares and the Shareholders are the beneficial owner of and has the right and authority to dispose of and give good and marketable title to the InNexus Shares free and clear of all liens, charges, encumbrances and restrictions on transfer of any nature whatsoever save those existing pursuant to applicable securities legislation;

(b)

InNexus is duly incorporated and in good standing but not required to issue annual corporate filings under the laws of State of Washington;

(c)

the authorized capital of InNexus consists of 50,000,000 common shares without par value of which 5,040,000 shares are issued and outstanding and there are no individuals or companies who or which beneficially own, directly or indirectly, any of the issued and outstanding shares of InNexus other than the Shareholders or IMM, under the terms of the IMM License. 

(d)

there are no options, warrants, rights or agreements outstanding with respect to the issued or unissued shares and there are no securities convertible or exchangeable into shares of InNexus except as have been in writing disclosed to and approved by CUSIL prior to the Review Date;

(e)

the Shareholders are not indebted to InNexus and InNexus is not indebted to the Shareholders, other than the Debts or except as has been in writing disclosed to and approved by CUSIL prior to the Review Date;

(f)

all material transactions of InNexus have been promptly or properly recorded or filed in or with its respective books and records;

(g)

InNexus is not a party to or threatened with any litigation action, suit or proceeding in any court or before any administrative tribunal which affects or may affect InNexus or its assets nor, to the knowledge of the Shareholders after due inquiry, is any such action, suit or proceeding pending or threatened nor is there any basis therefor;

(h)

InNexus, as a non-revenue generating business in Washington State, is not currently required to file tax returns and other filings with the US Internal Revenue Service, or any state taxation authority. 

(i)

attached hereto as Schedule “B” is a complete list of its Intellectual Property Rights including all intellectual property or other material assets of InNexus, including any patents or patent applications, license rights or trade marks together with a complete description of any material limitations, rights of third parties, restrictions on use or ownership by InNexus, or encumbrances on such rights, property or assets;

(j)

InNexus beneficially owns all right title and interest in and to each of the material assets or Intellectual Property Rights or which are now used by it or are now held by it for use hereafter to gain revenue from operations, including those set forth in Schedule “B”, free and clear of all Liens, charges and encumbrances whatsoever, except as has been in writing disclosed to and approved by CUSIL prior to the Review Date;

(k)

the most recent financial statements of InNexus, a copy of which will hereafter be delivered and attached hereto as schedule “C”, together with the audited financial statements required to be prepared and provided herewith (the “Financial Statements”) have been or shall have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with prior years, are or, upon preparation and delivery hereunder shall be, true and correct in every material respect and present fairly and accurately the financial condition and position of InNexus as at the date to which the Financial Statements were prepared (the “Statement Date”) and the results of its operations for the fiscal period ended on the Statement Date;

(l)

no material adverse changes have occurred in InNexus's financial condition as disclosed in the Financial Statements since the Statement Date, except as has been in writing disclosed to and approved by CUSIL prior to the Review Date;

(m)

there is no Indebtedness of InNexus assumed, created, incurred or made, whether voluntary or involuntary, however arising, whether due or not due, absolute, contingent, liquidated or unliquidated, determined or undetermined, direct or indirect, express or implied, and whether InNexus may be liable individually or jointly with others, except as  may be disclosed to and accepted in writing by CUSIL; 

(n)

attached hereto as Schedule “D” is a complete list of all material contracts of InNexus (including the Intellectual Property Agreements) entered into since its date of incorporation or which are proposed to be entered into prior to the Closing Date;

7.2

The representations, warranties, covenants and agreements by the Shareholders or InNexus set forth in section 7.1 or contained elsewhere in this Agreement or any certificates or other documents delivered to CUSIL pursuant to the provisions hereof or in connection with the transactions contemplated hereby, are, except where otherwise expressly stated, true as of the date and time of execution hereof by the Shareholders and shall be true at and as of time of Closing on the Closing Date as if those representations or warranties, covenants and agreements were made at and as such time.  Notwithstanding any investigations or enquiries made by CUSIL prior to the Closing Date or the waiver of any condition by CUSIL, the representations, warranties, covenants and agreements of the Shareholders shall survive the Closing Date and notwithstanding the Closing of the purchase and sale herein provided for, shall continue in full force and effect for a period of one year from the Closing Date

7.3

CUSIL represents, warrants and covenants to InNexus and the Shareholders as follows:

(a)

CUSIL is duly incorporated and subsisting as a corporation under the laws of British Columbia, is a reporting issuer under the Securities Act (British Columbia) and its common shares are listed for trading on the CDNX (but are currently suspended from trading); 

(b)

CUSIL has filed all material reports and documents required to be filed with the Registrar of Companies for British Columbia, the British Columbia Securities Commission and the Canadian Venture Exchange Inc. (the “Regulatory Authorities”) and is not in material default of any requirements of the Company Act (British Columbia) or the Securities Act (British Columbia), except as disclosed in the Public Record (defined below);

(c)

there are no existing material agreements or contemplated agreements, written or oral, of any nature or kind whatsoever to which CUSIL is a party or pursuant to which it has or may have any present or future material obligation of any kind whatsoever, except as are disclosed in documents which have been filed with and made available for public review by the Regulatory Authorities (the “Public Record”);

(d)

the authorized capital of CUSIL consists of 100,000,000 common shares without par value of which 3,640,000 common shares are issued and outstanding;

(e)

there are no options, warrants, rights or agreements outstanding with respect to the issued or unissued shares of CUSIL and there are no securities convertible or exchangeable into shares of CUSIL except the following:

(i)

1,000,000 warrants to purchase common shares exercisable at $0.50 CDN per share;

(ii)

304,000 options to purchase common shares exercisable at $0.23 CDN per share;

(iii)

such other securities as may be issuable under any private placement as may be required by the Exchange as a condition of its approval of the RTO and as may be acceptable to InNexus;

(f)

the most recent audited financial statements and quarterly reports of CUSIL filed with the British Columbia Securities Commission (the “CUSIL Financial Statements”) were prepared in accordance with generally accepted accounting principles applied on a basis consistent with prior years, are true and correct in every material respect and present fairly and accurately the financial condition and position of CUSIL as at the date at which the information therein is presented (the “Statement Date”) and the results of its operations for the period ended on the Statement Date and there have been no adverse material changes since the Statement Date which would make the CUSIL Financial Statements untrue or misleading as at the Closing Date, except as have been in writing disclosed to and approved by the Shareholders;

(g)

there is no Indebtedness of CUSIL assumed, created, incurred or made, whether voluntary or involuntary, however arising, whether due or not due, absolute, contingent, liquidated or unliquidated, determined or undetermined, direct or indirect, express or implied, and whether CUSIL may be liable individually or jointly with others other than as set out in the CUSIL Financial Statements or such obligations as may be incurred by CUSIL in the ordinary course of its affairs with respect to regulatory filings and similar matters, together with the costs associated with completion of the RTO, which together will comprise all of the Indebtedness of CUSIL at the time of Closing;

(h)

to the best of its knowledge, there are no material liabilities, contingent or otherwise, nor is there any material litigation, proceeding or investigation pending or threatened against CUSIL, its property or business, nor does CUSIL know, or have ground to know, of any basis for any material litigation, proceeding or investigation against CUSIL, its assets or business, other than the Indebtedness or as which have been in writing disclosed in the Public Record;

7.4

The representations, warranties, covenants and agreements by CUSIL in section 7.3 or contained elsewhere in this Agreement or any certificates or other documents delivered to the Shareholders or InNexus pursuant to the provisions hereof or in connection with the transactions contemplated hereby, are, except where otherwise expressly stated, true as of the date and time of execution hereof by CUSIL shall be true at and as of time of Closing on the Closing Date as if those representations or warranties, covenants and agreements were made at and as such time.  Notwithstanding any investigations or enquiries made by the Shareholders prior to the Closing Date or the waiver of any condition by the Shareholders, the representations, warranties, covenants and agreements of CUSIL shall survive the Closing Date and notwithstanding the Closing of the purchase and sale herein provided for, shall continue in full force and effect for a period of one year from the Closing Date.

7.5

For the purposes of this Agreement, any document or fact pertaining to CUSIL shall, to the extent disclosed or contained in the Public Record, be deemed to have been disclosed in writing to and approved by the Shareholders.

8

Pre-Completion Matters and Covenants

8.1

As soon as practicable after execution hereof, CUSIL shall arrange for a loan (the “Loan”) by CUSIL or a party introduced by it (the “Lender”) to InNexus on and subject to the following terms and conditions:

(a)

The initial principal amount of the Loan shall be $25,000 USD and shall bear interest on the principal and any accrued interest at the rate of 8% per annum, calculated and payable semi-annually, in arrears, before and after default and before and after judgment;

(b)

The Loan shall be evidenced by and subject to the terms and conditions of a formal loan agreement (the “Loan Agreement”) and a promissory note (the “Note”) in favour of CUSIL and shall be secured by a first charge over all of the present and after acquired property of InNexus (subject only to existing charges and encumbrances approved by the Lender), on and subject to the terms of a general security agreement (the “Security Agreement”) all of which shall be in the form specified by CUSIL and the Lender and shall be prepared by the solicitor for CUSIL and the Lender;

(c)

The loan shall be advanced by the Lender, subject to execution and delivery of the Loan Agreement, the Note and the Security Agreement and fulfillment of any preconditions to advance stipulated therein, in installments as follows:

(i)

On or about December 3, 2001, the sum of $15,000 USD (previously advanced to and receipt of which is hereby acknowled by InNexus);

(ii)

On or before upon execution hereof, the sum of $10,000 USD; and

(iii)

from time to time prior to the Closing, such amounts as may be mutally agreed to by the parties and acceptable to the Exchange. 

(d)

The principal and interest of the Loan shall be payable upon demand made on or after the earlier of the Termination Date (defined herein) or the occurrence of an event of default under the Loan Agreement or the Security Agreement.

8.2

In consideration of the mutual premises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree that, upon execution of this Agreement and continuing until 4:00 P.M. (Vancouver time) on the Termination Date:

(a)

the Shareholders shall maintain this letter agreement and all information pertaining thereto in strict confidence and shall not disclose same to any person except in compliance with the confidential disclosure provisions of the Securities Act ( British Columbia) or unless approved in writing by CUSIL; 

(b)

the Shareholders shall refrain from and InNexus shall not permit the sale or transfer (directly or indirectly) of any of the Shareholders’ Securities and not and the Shareholders shall not in any manner permit the encumbrance or disposition of any of the Shareholders’ Securities or the Shareholders’ rights therein;

(c)

InNexus shall not and the Shareholders shall not permit InNexus to transfer, encumber or otherwise deal with any of assets and rights of InNexus (except in the ordinary course of its business as now carried on by it and on a non-arms length basis and for normal fair market consideration) and shall not do or permit any other thing contrary to or in hindrance of the transactions contemplated herein without the prior written approval of CUSIL ;

(d)

neither InNexus nor any of the Shareholders shall not enter into, solicit or entertain any negotiations respecting the issuance, sale or disposition of any securities of InNexus and shall refrain from entering into any transaction which would have the effect preventing or significantly limiting the RTO or proposed transactions related thereto, except as contemplated herein;

8.3

Until completion or abandonment of the RTO and the transactions contemplated herein,

(a)

the Shareholders will use their best efforts to assist CUSIL and will cooperate with CUSIL and exercise any vote or other rights respecting their interests in InNexus or which are under their direction or control to cause InNexus to enter into and complete the RTO;

(b)

the Shareholders and InNexus shall cause CUSIL and its solicitors to have full access to all corporate records and other information relevant to InNexus and, including, without limitation, any records and files pertaining to InNexus maintained by its solicitors, and InNexus and the Shareholders shall instruct the solicitors for InNexus accordingly;

(c)

the Shareholders shall enter into and shall do all things necessary to cause InNexus to enter into and complete the transactions contemplated to be performed by such parties, subject to fulfillment or waiver of any preconditions to the completion of such transaction set out herein;

(d)

CUSIL shall use its best commercial efforts to cause CUSIL to enter into and complete the transactions contemplated to be performed by it hereunder or under the RTO, subject to fulfillment or waiver of any preconditions to the completion of such transaction set out herein; and

(e)

the parties hereto will co-operate with each other to ensure the RTO is completed in the manner contemplated herein.

9

Finders Fee

9.1

The parties hereto acknowledge that CUSIL will be obligated to pay a finders fee payable by issuance of CUSIL common shares or share purchase warrants to a certain third party in connection with the RTO as consideration for introducing the parties and assisting the completion of the transactions contemplated herein, the amount and terms of payment of which will be negotiated by CUSIL and such finder, subject to acceptance by InNexus which will not be unreasonably withheld.

10

Notice

10.1

Any notice or other communication between either party under this Agreement will be deemed to be properly given when in writing and delivered by hand or mailed, postage prepaid, or sent by telefax, teletype or other means of electronic communication producing a printed copy but, for greater clarity, excluding communication by e-mail unless the other party acknowledges receipt of same in writing (“Electronic Communication”) on any business day to the intended recipient at its address first written above or to such other address or person as the other party may from time to time designate by notice or if sent by Electronic Communication to such telecommunication address as the respective parties may specify. Any notice delivered on a business day will be deemed conclusively to have been effectively given on the date notice was delivered. Any notice sent by prepaid registered mail will be deemed conclusively to have been effectively given on the third business day after posting; but if at the time of posting or between the time of posting and the third business day thereafter there is a strike, lockout or other labour disturbance affecting postal service, then the notice will not be effectively given unless delivered by hand or sent by Electronic Communication.

10.2

Any notice required to be given to all or any of the Shareholders shall be deemed to have been effectively and validly delivered if given to InNexus in accordance with section 10.1.

11

Termination

11.1

Unless otherwise agreed to in writing by all of the parties hereto, if the conditions set out in Section 6 have not been fulfilled or waived by CUSIL on or before 5:00 p.m. on earlier of August 31, 2002 (the “Termination Date”) or the 90th day receipt of all Approvals or if the formal agreement is not entered in to on or before the Agreement Deadline, the rights and obligations of the parties pursuant to this Agreement shall, upon written notice by CUSIL to InNexus and the the Principals, terminate forthwith and absolutely.

12

Assignment and Novation

12.1

Except as provided herein, this Agreement may not be assigned, in whole or in part, without the prior written consent of the other parties hereto.  

13

Formal Agreement

13.1

This Agreement is subject to execution of the Formal Agreement by the parties hereto on or before the Agreement Deadline, whereupon this agreement and the rights and obligations of the parties hereunder shall terminate forthwith and absolutely.  Until such time as such Formal Agreement has been executed and delivered by the intended parties thereto, the agreement formed by the acceptance hereof shall remain in full force and effect.

14

General Provisions

14.1

Time is of the essence hereof.

14.2

Any reference to a monetary amount, “Cash”, dollars or “$” (other than a specific reference to United States dollars or “USD”) shall be deemed to refer to the lawful currency of Canada (or, for greater clarity “CDN”).

14.3

The parties hereto shall execute such other documents and do such other things as may be reasonably necessary to give full effect to the transactions contemplated hereby.

14.4

This Agreement contains the entire agreement between the parties relating to the subject matter of this agreement and supersedes any and all prior agreements, understandings, negotiations and discussions, whether oral or written, between the parties hereto and may be modified only by an instrument in writing signed by all parties hereto.

14.5

Notwithstanding anything herein to the contrary, neither party hereto shall be deemed to be in default with respect to the performance of the terms, covenants and conditions of this Agreement if the same shall be due to any strike, lock-out, civil commotion, invasion, rebellion, hostilities, sabotage, governmental regulations or controls, or acts of God.

14.6

This Agreement will be governed by and interpreted according to the laws of the province of British Columbia, Canada, and the parties hereby irrevocably agree to submit to the jurisdiction of the Courts thereof in connection with any disputes arising hereunder and irrevocably select Vancouver, British Columbia as the proper venue for any such disputes.

14.7

The waiver by any party a breach of any provisions of this Agreement by the other party to this Agreement shall not operate or be construed as a waiver of any subsequent breach by that party.

14.8

This Agreement may be executed in as many counterparts as may be necessary, each of which so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument.

If you wish to accept the terms and conditions set out herein, please execute the enclosed copy of this letter and return same to use by no later than 4:00 p.m., Vancouver time, on December 5, 2001.

We hereby acknowledge and accept return of the enclosed copy of this Agreement by telecopy, telex or other means of electronic communication producing a printed copy, subject to delivery of the original of the document to us within two weeks of delivery of the copies sent via the electronic communication.

Yours truly,

Cusil Venture Corporation

by:   /s// Stuart Rogers

Stuart W. Rogers, President

Acknowledged and agreed to by InNexus Inc., this 5th day of December, 2001.

	InNexus Inc.

by:  /s/ Alton C. Morgan

Alton C. Morgan, President

	 	 

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5

Acknowledged and agreed to this _____ day of ______, 2001 by the undersigned shareholders of InNexus Inc. who, by their signature hereto, represent they beneficially hold and are able to transfer clear and unencumbered title to the number and type of shares of InNexus Inc. set out next to their respective names.

	Name, Signature and Address of InNexus Shareholders

	Amount and type of InNexus  Interest Now Held

	Number and Type of CUSIL Shares or Exchangeable Preferred Shares Issuable

	 /s/ Alton C. Morgan

Alton C. Morgan

_________________________

Address

_________________________

_________________________

Tel:___________________

Fax:___________________

	2,500,000 common shares

	5,000,000 Exchanged Shares

	 /s/ Gail Thurston

Gail S. Thurston

_________________________

Address

_________________________

_________________________

Tel:___________________

Fax:___________________

	2,500,000 common shares

	5,000,000 Exchanged Shares

	 /s/ Garth Likes

Garth Likes

_________________________

Address

_________________________

_________________________

Tel:___________________

Fax:___________________

	40,000 common shares

	 80,000 Exchanged Shares

	TOTAL:

	5,040,000 common shares

	10,080,000 Exchanged Shares

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5

Schedule “A” To Letter Agreement Among Cusil Venture Corporation, InNexus Inc., Alton C. Morgan and Gail S. Thurston 

1.

Definitions

1.1.

Where used herein, the following terms shall have the meanings set out below:

(a)

“Agreement” means the Agreement between InNexus, InNexus and CUSIL by execution of the Letter Agreement or, after execution of the Formal Agreement, the Formal Agreement; 

(b)

“InNexus” means InNexus Inc. together with (except where the context otherwise requires) any subsidiaries or joint venture interests;

(c)

“InNexus Financial Statements” means the balance sheet, income statement and statement of source and uses of funds for InNexus’s last completed fiscal year and for each quarterly period subsequent thereto up to the date of the Agreement, together with comparative statements for the corresponding period in the prior fiscal year;

(d)

“Court” means the Supreme Court of British Columbia;

(e)

“Electronic Communication” means telefax, teletype or other means of electronic communication producing a printed copy but, for greater clarity, shall not include e-mail unless the other party acknowledges receipt of same in writing;

(f)

“Exchange” means the Canadian Venture Exchange Inc.;

(g)

“Exchangeable Preferred Shares” means the preferred shares of UsCo  issuable in exchange for the InNexus Shares and/or the Transferred Assets, subject to certain special rights and restrictions entitling the holder to exchange each such share for one common share of CUSIL;

(h)

“GAAP” generally accepted accounting principals in Canada, applied consistently;

(i)

“IMM” means Immune Network Ltd. of 3650 Westbrook Mall, Vancouver, B.C. V6S 2L2;

(j)

“IMM License” means the license to use certain intellectual property which InNexus has the right to acquire from IMM, subject to the issuance of certain shares of InNexus, as described in Schedule “B”; 

(k)

“Indebtedness” means any and all advances, debts, duties, endorsements, guarantees, liabilities, obligations, responsibilities and undertakings of a person assumed, created, incurred or made, whether voluntary or involuntary, however incurred or made, whether voluntary or involuntary, however arising, whether due or not due, absolute, inchoate or contingent, liquidated or unliquidated, determined or undetermined, direct or indirect, express or implied, and whether such persons may be liable individually or jointly with others;

(l)

“Intellectual Property Agreements” means the agreements set forth in Schedule “B”;

(m)

“Intellectual Property Rights” means all of the patents and patent applications, license rights, trade marks, trade mark applications, trade names, industrial designs, service marks, trade secrets, patented or unpatented discoveries, inventions, confidential information, data, methods, procedures, results of experimentation, know how or other tangible or intangible rights and any other intellectual property rights, including any improvement to or an application of the aforementioned inventions, patents and patent applications, which are owned by InNexus, which InNexus has a right to acquire any interest in or which held for the benefit of InNexus as of the date of execution hereof or which may be acquired by InNexus prior to the Closing Date including, without limiting the generality of the foregoing, all of InNexus’s rights in, to and with respect to the Patents and other intellectual property rights set forth in Schedule “B” under the Intellectual Property Agreements or otherwise;

(n)

“Lien” means any mortgage, debenture, charge, hypothecation, pledge, lien, or other security interest or encumbrance of whatever kind or nature, regardless of form and whether consensual or arising by law, statutory or otherwise that secures the payment of any Indebtedness or the performance of any obligation or creates in favour of or grants to any person any proprietary right;

(o)

“Offco” means a newly incorporated Barbados international business corporation all of the shares of which will be owned by CUSIL;

(p)

“Patents” means the patents and patent applications applicable to the Intellectual Property Rights

(q)

“Regulatory Authorities” means any authorities having jurisdiction with respect to any or all of the operations comprising the proposed Business or whose approval or consent must be to implement or carry out the operation thereof as now contemplated, including, without limitation, the Exchange;

(r)

“Transferred Assets” means all of the tangible and intangible property, assets, interests or benefits, rights of any kind whatsoever held beneficially, including any rights in and to the Intellectual Property Rights, excluding the US Rights, which shall be granted to or retained by InNexus and including, without limitation, the IMM License, exclusive of any US Rights pertaining thereto;

(s)

“USCo” a new company to be incorporated in the United States by CUSIL as a wholly owned subsidiary to facilitate the proposed transaction;

(t)

“US Rights” means the right to use, licence, sell, market, exploit or derive other benefits from the sale or use of the Intellectual Property Rights in the United States;

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5

SCHEDULE “B”

Material Assets and Intellectual Property Rights of InNexus 

(All intellectual property which InNexus owns or for which it has an option to license or acquire)

U.S. Patent #

SuperAntibody Technology Platform

5,596,081

5,695,764

5,800,991

6,238,667

Immune Network Ltd.

NM01 & NM03 Antibodies

5,558,865

5,607,847

5,618,922

5,665,569

1F7 Antibody

5,849,583

6,057,421

6,146,627

6,221,580

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5

SCHEDULE “C”

Financial Statements for InNexus

To be provided and attached hereto after execution

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5

SCHEDULE “D”

Material Contracts of InNexus

All material contracts are appended in electronic form in the Microsoft Office Binder entitled “Legal Documents”

d:\precdoc\miscell\letterag\letagree.docDEVELOPMENT AND LICENSE AGREEMENT

Unknown;

Exhibit 4.7

DEVELOPMENT AND LICENSE AGREEMENT

This Development and License Agreement made as of and dated for reference January 7, 2002 BETWEEN:

INNEXUS CORPORATION, a company incorporated under the laws of Washington State and having an office at 3405 172nd Street, #196, Arlington (Seattle), Washington, U.S.A., 98223

("InNexus") AND:

BEGLEND CORPORATION SA, a corporation incorporated under the laws of Uruguay and having and office at Misiones 1372, Office 602, 11000 Montevideo, Uruguay

("Beglend") WITNESSES THAT WHEREAS:

A.     InNexus holds the patent for the next-generation technology platform for enhancement of monoclonal antibodies known as SuperAntibody Technology or "SAT";

B.     Beglend proposes to engage in the development, production and commercialization of monoclonal antibody based pharmaceuticals;

C.        InNexus and Beglend desire to enter into a development and licensing arrangement for the worldwide development and marketing of certain monoclonal antibody products, modified by SAT, for human use on the terms and conditions set out herein; and

D.      Beglend has arranged to assign its rights under this Agreement to BioKinetix, Beglend's research and development company, with a view to InNexus becoming a shareholder of BioKinetix and having InNexus assist BioKinetix in carrying on research and development work intended to result in the development, production and commercialization of monoclonal antibody based pharmaceuticals known generally as "Superantibodies";

NOW THEREFORE, in consideration of the premises and the mutual covenants and obligations set forth in this Agreement, the payment of $10.00 by Beglend to InNexus and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by InNexus, InNexus covenants and agrees with Beglend as follows:

1

DEFINITIONS

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1.1       Where used herein: "Affiliate" means:

(a)        an organization fifty percent (50%) or more of the voting stock of which is owned and/or controlled directly or indirectly by a party to this Agreement;

(b)       an organization which directly or indirectly owns and/or controls fifty percent (50%) or more of the voting stock of a party to this Agreement; or

(c)        an organization, which is directly or indirectly under common control with a party to this Agreement through common share holdings;

"Associate" means, where used to indicate a relationship with a corporation, another corporation of which the first corporation owns shares carrying more than 20% of the voting rights attached to all shares of that second corporation for the time being outstanding, and, where used to indicate a relationship with an individual, has the meaning assigned to it by the Securities Act (Alberta);

"Beglend Antibody" means any monoclonal antibody now owned by Beglend or to which Beglend currently holds or hereafter acquires rights by way of purchase, license or otherwise, or which is hereafter developed by Beglend, and includes without limitation all SAT rights to those certain monoclonal antibodies targeted to the RECAF receptor held by Beglend from time to time pursuant to that certain agreement made as of November 22, 2002 between Biocurex Inc. and Beglend;

"BioKinetix" means BioKinetix Research Inc., a corporation incorporated under the laws of Alberta and having an office at 1500, 885 West Georgia Street, Vancouver, British Columbia;

"Bulk Product" means all bulk forms of the active ingredient of a Product;

"Business Day" means any day other than a Sunday, a Saturday or a day recognized by statute as a holiday in the State of Washington, the Province of British Columbia or Alberta, Uruguay or Barbados;

"Compound" means any bio-chemical compound which is produced utilizing any form of a Beglend Antibody and the Licensed Technology;

"Drug Master File" means a drug master file maintained by the PDA with respect to a prospective product for which Regulatory Approval is sought;

"Effective Date" means the date on which the License and Beglend's rights and obligations under this Agreement are assigned to Bio Kinetix.

"Electronic Communication" means telefax, teletype or other means of electronic communication producing a printed copy but, for greater clarity, shall not include e-mail unless

the other party acknowledges receipt of same in writing;

"FDA" means the United States Food and Drug Administration and equivalent governmental agencies outside the United States;

"Field of Use" means the development and application of Compounds and Products for diagnostic, preventative, treatment and/or therapeutic purposes, including without limitation such applications as blood serum assays and other diagnosis, screening and detection processes;

"Finished Product" means all finished, packaged final dosage units of Product;

"GAAP" means generally accepted United States accounting principles consistently applied

"Immunoconjugates" means any joining of a monoclonal antibody, including those created with the use of hetero-bifunctional crosslinking agents or through genetic engineering of fusion proteins, with a protein or organic compound intended for inhibiting a metabolic process within targeted cells;

"Information" means any and all secret or proprietary materials, trade secrets or other information related to developing, making, having made, using, offering for sale, selling or importing Product (including, without limitation, Technical Information and business information or objectives) which is disclosed by one party to the other party;

"Improvements" means, collectively, new versions, releases, enhancements, modifications, alterations, updates, corrections, processes, systems or fixes to any of the InNexus Intellectual Property Rights (including without limitation the filing of any patent, copyright, trademark, trade name, or service mark application), which are developed by or on behalf of InNexus or a sub­licensee for use in conjunction with the InNexus Intellectual Property Rights, in whole or in part, and any and all partial or intermediate versions thereof, and any and all derivative works thereof, and any and all related know-how, show-how, trade secrets and other proprietary information, and "Improvement" means any one of them;

"Indebtedness" means any and all advances, debts, duties, endorsements, guarantees, liabilities, obligations, responsibilities and undertakings of a person, individually or jointly with others, whether voluntary or involuntary, however incurred, made or arising, whether due or accruing due, absolute, inchoate or contingent, liquidated or unliquidated, determined or undetermined, direct or indirect, express or implied;

"InNexus Intellectual Property Rights" means any and all of InNexus current and future patented, patentable and non-patentable intellectual property (including without limitation the subject matter of the InNexus Patents and that certain InNexus document entitled "SuperAntibody Technology Platform"), trade secrets, proprietary information, formulae, specifications, designs, regulatory filings and registrations, processes (including without limitation diagnosis, screening and detection measures, systems, processes and techniques), procedures, codes, technical data (including test results) and materials, knowledge, know-how (including InNexus Know-how), show-how and techniques relating to the subject matter of the

InNexus Patents or otherwise relating to InNexus' SAT technology platform (as developed by InNexus in part alone and in part jointly with others), and any and all improvements, variations, updates, upgrades, modifications and enhancements thereto, now or in the future, and whether in written and electronic format;

"InNexus Know-how" means all know-how (including Technical Information) owned by or licensed (with the right to grant sublicenses) to InNexus at any time during the Term of this Agreement and relating to making, having made, using, offering for sale, selling and importing of any Compound or Product;

"InNexus Patents" means:

(a)       all Patents (including any patent applications and provisional applications) owned by or licensed (with the right to grant sublicenses) to InNexus as of the Effective Date (including without limitation United States patents numbered 6,238,667, and all filings related to "Fusion Proteins with Constrained Peptides" and "Novel, Bi-specific-like Conjugates Optimized for In Vivo Targeting", "Method of affinity cross-linking biologically active immunogenic peptides to antibodies", Fusion Proteins of Biologically Active Peptides and Antibodies" and "Therapeutic Application of Dimerizing Non-Covalent Antibodies", and other patents and patent rights set out in Appendix A) and any division, continuation or continuation-in-part thereof, any patent issuing thereon and any re-examinations or re-issues thereof, and other pending applications, and any process or component thereof falling within the scope of any claim or claims thereof applicable to InNexus' SAT technology platform; and

(b)       all Patents acquired by or licensed to InNexus after the Effective Date and related to InNexus' SAT technology platform;

"Joint Invention" means any invention (whether or not patentable) resulting from-activities arising under this Agreement and which constitutes an Improvement which is (a) conceived and reduced to practice by both parties during the Term of this Agreement or (b) conceived by both parties during the Term of this Agreement and reduced to practice, by either or both parties, during or within 24 months of the expiration or termination of this Agreement, but specifically excludes all Compounds and Products;

"Joint Patents" means all Patents claiming Joint Inventions, and all Patents claimed by Beglend or InNexus which relate to Joint Inventions, the practice of which would infringe a valid claim of an InNexus Patent;

"Launch of Product" means the first date upon which a Product is shipped commercially by Beglend to an arm's length third party in a country for valuable consideration which is actually received, after formal marketing approval in that country, including any required price approval, has been granted from the relevant authority in that country for that Product;

"License" means the rights and license granted to Beglend under section 2.1 hereof;

"Licensed Technology" means the InNexus Intellectual Property Rights, the InNexus Patents, InNexus' rights in and under any Joint Patents, all rights held by InNexus under license, if InNexus has the right to sublicense such rights, and all other proprietary information and intellectual property of InNexus related to SAT;

"Lien" means any mortgage, debenture, charge, hypothecation, pledge, lien, or other security interest or encumbrance of whatever kind or nature, regardless of form and whether consensual or arising by law, statutory or otherwise that secures the payment of any Indebtedness or the performance of any obligation or creates in favour of or grants to any person any proprietary right;

"Net Sales Revenue" means all revenue (without duplication) received by Beglend and its Affiliates:

(i)        from sales of Products by Beglend and its Affiliates; and

(ii)       from Beglend's sub-licensees in the form of royalties received from such Affiliates and sub-licensees in respect of their sales of Compounds and Products, and from such Affiliates and sub-licensees in the form of license or sub-license fees, milestone payments and the like insofar as they relate to Compounds and Products;

in each case after deduction of all costs directly related to any licensing or sub-licensing transaction, as well as sales taxes, value added taxes, customs and excise taxes and duties payable and actually paid by Beglend and its Affiliates in connection with such sales (without reimbursement from customers), and after deduction of any collection costs and any bona fide cash or trade discounts, volume (quantity) discounts, rebates, allowances or refunds paid, given or made by Beglend and its Affiliates in connection with such sales or returns, or in connection with such licenses and sub-licenses, and any shipping and handling charges actually paid by Beglend and its Affiliates, calculated in accordance with GAAP;

"Patents" means:

(a)      all patents and the patent applications relating in any way to the subject matter of this Agreement;

(b)    all patents arising from said applications and all patents and patent applications based upon or claiming the priority date(s) of any of the foregoing;

(c)  any additions, divisions, continuations, continuations-in-part, amendments, amalgamations, reissues and re-examinations of such applications or patents;

(d)       any confirmation, importation and registration patents thereof or therefore; and

(e)       any extensions and renewals of all such patents and patent applications in whatever legal form and by whatever legal title they are granted (e.g.

supplementary protection certificates);

"Product" means any recombinant form of protein, drug, pharmaceutical formulation or other thing that contains any form of a Beglend Antibody modified by use of the Licensed Technology or that may be manufactured, produced or otherwise derived using the Licensed Technology and any form of a Beglend Antibody, now or in the future, whether for research, testing, diagnostic, therapeutic and/or immunization/prevention applications or purposes, and includes Bulk Products, Semi-Finished Products and Finished Products;

"Royalty" means the royalty granted to InNexus pursuant to section 6.5;

"Regulatory Approval" means the approval, license, registration or other authorization (including price approval) of the PDA in the United States or similar regulatory authority within any other country necessary for the commercial sale of a Product in such country;

"SAT" means the antibody enhancement and modification technology platform which is the subject of US patent # 6,238,667 and other patents and pending applications and which is commonly known as InNexus' SuperAntibody Technology;

"Semi-Finished Product" means all forms of the Product which are filled but not packaged;

"Technical Information" means any and all technical data, information, materials including samples of Product, chemical manufacturing data, toxicological data and pharmacological data, clinical data, medical uses, formulations, specifications, quality control testing data, and all submissions and correspondence to and from the PDA with regard to Product made by or on behalf of InNexus or its Affiliates, which is reasonably useful to enable Beglend to make, have made, use, offer for sale, sell, export or import Product or to obtain Regulatory Approval for the same;

"Term of the Agreement" means the time period set forth in Section 9.1 of this Agreement;

"Valid Claim" means a claim made in any InNexus Patent that has not been disclaimed, revoked or held invalid by a final unappealable decision of a court of competent jurisdiction, and which claim, if issued, is otherwise enforceable;

1.2       In this Agreement, except as otherwise expressly provided:

(a)    "Agreement" means this agreement, including the preamble and the schedules hereto, as it may from time to time be supplemented or amended and in effect;

(b)       all references in this Agreement to a designated "Section" or other subdivision or to an appendix is to the designated Section or other subdivision of, or appendix to, this Agreement;

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

subdivision or Schedule;

(d)       the headings are for convenience only and do not form a part of this Agreement;

(e)      the singular of any term includes the plural, and vice versa, the use of any term is equally applicable to any gender and, where applicable, a body corporate, the word "or" is not exclusive and the word "including" is not limiting (whether or not non-limiting language, such as "without limitation" or "but not limited to" or words of similar import, is used with reference thereto);

(f)      any accounting term not otherwise defined has the meanings assigned to it in accordance with generally accepted accounting principles applicable in the United

States;

(g)      any reference to a statute includes and is a reference to that statute and to the regulations made pursuant thereto, with all amendments made thereto and in force from time to time, and to any statute or regulations that may be passed which has the effect of supplementing or superseding that statute or regulations;

(h)      where any representation or warranty is made "to the knowledge of any party, such party will not be liable for a misrepresentation or breach of warranty by reason of the fact, state of facts, or circumstances in respect of which the representation or warranty is given being untrue if such party proves:

(i)     that such party conducted a reasonable investigation so as to provide reasonable grounds for a belief that there had been no misrepresentation or breach of warranty; and

(ii)       that fact, state of facts, or circumstances could not reasonably be expected to have been determined as a result of that reasonable investigation, irrespective of the actual investigation conducted by such party;

(i)        except as otherwise provided, any dollar amount referred to in this Agreement is in the lawful currency of the United States; and

(j)      any other term defined within the text of this Agreement has the meaning so ascribed.

2    GRANT OF RIGHTS

2.1       License Grant. InNexus grants Beglend, subject to the terms and conditions of this Agreement and Consideration of U.S.D. $60,000, the sole, exclusive and perpetual right and license to use the Licensed Technology to:

(a)      conduct research and development activities involving any Beglend Antibody and SAT;

(b)       develop Compounds and Products based on the foregoing research and development activities;

(c)     make and have made, register, use, offer for sale, market, distribute, export, import and/or sell any of the foregoing Compounds and Products throughout the world; and

(d)       sublicense the rights hereby granted in accordance with the provisions of Sections 2.2 and 2.3;

and InNexus will provide to or to the order of Beglend all Licensed Technology as may be required to permit Beglend to fully exercise the rights and license hereby granted and to obtain the full benefit therefrom.

2.2    Limitations on License. Notwithstanding any other provision herein:

(a)       the License shall be limited to the Field of Use;

(b)       Beglend shall be entitled to use SAT to develop Compounds and Products based on up to three Beglend Antibodies, but not more than three Beglend Antibodies; and

(c)        InNexus shall not be restricted in any manner from using the Licensed Technology for any use outside the Field of Use and, without limiting the generality of the foregoing, shall have the right to grant licenses to third parties to use SAT in conjunction with other monoclonal antibodies not owned by or under license to Beglend on such terms and conditions as InNexus may consider advisable for its own exclusive right and benefit, so long as such third parties are not carrying on business in competition with Beglend.

2.3       Sublicenses. Except as otherwise provided below, Beglend shall have the right to sublicense its rights under the License to any person on and subject to the following terms and conditions:

(a)      if Beglend grants a sublicense, all of the terms and conditions of this Agreement shall apply to the sublicensee to the same extent as they apply to Beglend for all purposes other than the payment of Royalties, and Beglend assumes full responsibility for the performance of all obligations so imposed on such sublicensee and will, itself, pay and account to InNexus for all payments due under this Agreement by reason of the operation of any such sublicensees;

(b)      Beglend shall provide a copy of each sub-license agreement to InNexus within sixty days after execution and delivery of same;

(c)       any invention discovered by a sublicensee as a result of research and development activities using SAT and which constitute an improvement to SAT shall be deemed to be held exclusively for the benefit of InNexus (and Beglend under the License) and any patent or other intellectual property rights therein shall be assigned and transferred to InNexus promptly upon written demand, subject to the right of Beglend to be paid a royalty by InNexus equal to 1.5% of any revenue received by InNexus therefrom (including sales revenue received by InNexus from sales of Products by InNexus and from InNexus' Affiliates and sub-licensees in the form of royalties, license or sub-license fees, milestone payments and the like received from such Affiliates and sub-licensees), to a maximum of 150% of the total amount of all of Beglend's research and development costs (without any additional allocation for overhead or other expenses not directly related thereto) reasonably attributable to such invention; and

(d)       InNexus shall have, without the requirement for further action of the parties, an exclusive worldwide right and license to the unrestricted use of any Joint Invention (other than use of such Invention in connection with any Beglend Antibody or for the development of any Compound or Product, which use is exclusively reserved to Beglend) and, to the extent claimed or covered thereby, any Joint Patent hereafter granted which covers an Improvement which is or may be competitive with SAT (a "Joint SAT Invention"), subject to its obligation to pay Beglend the royalty on revenue therefrom as set out in section 2.3(c) above, and shall execute and deliver such further agreements and instruments as may be reasonably necessary to give effect to such provisions as and when required by either party from time to time.

3 

EVALUATION, RESEARCH AND DEVELOPMENT

3.1    General Contractor: InNexus shall act as the general Contractor for Research and Development performed by Beglend (BioKinetx). As such, InNexus will contract for or perform all research for Beglend and its licensee, BioKinetx. Any contracts, entered into on behalf of Beglend, shall require approval of Beglend's (Biokinetx's), Signatory Authority and be subject to review and continuance on an annual basis. As compensation for arranging contracts and providing oversight and direction of Beglend's Research and Development, Beglend will pay a 10% administration fee to InNexus for the amalgamated Research and Development costs.

3.2    Delivery of Conjugates: As soon as practicable after execution hereof, InNexus shall prepare Immunoconjugates based on the conjugation of SAT and the initial Beglend Antibody (i.e. the first antibody licensed to Beglend by BioCurex) (each an "SAT Conjugate") and deliver same, together with corresponding research data with respect to the criteria set out in subsection 3.2 to Beglend ("Initial Deliveries").

3.3     Acceptance of Conjugates: Beglend shall conduct such tests and examinations as it may consider reasonably necessary to determine acceptability of the Immunoconjugates in accordance with the criteria set out below and will provide written confirmation of same

to InNexus ("Conjugate Acceptance") or written notice that the Immunoconjugates are not acceptable, specifying the reasons for such rejection ("Conjugate Rejection").

3.4    Evaluation. Commencing after the date of any Conjugate Acceptance, Beglend shall conduct such additional tests, examinations and research as it may deem necessary or desirable for the purpose of determining whether to proceed with further research and development with a view to developing one or more Products utilizing the Licensed Technology, and assuming that Beglend determines to proceed, InNexus shall co-operate to the extent Beglend may reasonably require to carry out such research and development as Beglend considers necessary or desirable to develop one or more Compounds and/or Products and to obtain Regulatory Approval therefor in the United States, Canada and such other jurisdictions as Beglend may determine.

3.5     Product Sales and Marketing: Upon obtaining the required Regulatory Approval for a Product, Beglend shall notify InNexus in writing of same and shall thereafter have the right to develop and implement (with such assistance and co-operation of InNexus as Beglend may reasonably require) a plan to market and sell or otherwise commercially exploit the Products (whether directly, by sub-license, joint venture or otherwise) in such manner as Beglend determines (in its sole discretion) to be commercially feasible and expedient having regard to Beglend's financial circumstances from time to time.

3.6       Additional InNexus Activities: InNexus shall, during the term hereof:

(a)       provide such information, documentation and advice respecting SAT and the initial Immunoconjugates delivered under section 3.1 which are in its possession and control as may be reasonably necessary to enable Beglend to use and exploit the Licensed Technology, to evaluate the Immunoconjugates and to proceed with such research and development programs (each an "R&D Program") as Beglend determines to be necessary or desirable to develop one or more Products, to a maximum of three Products; and

(b)     participate in such research and development and other activities of Beglend as Beglend may from time to time reasonably request on such terms and conditions and in consideration of such payments as may from time to time be agreed upon by Beglend and InNexus, including provision of the following services:

(i)      preparation of a full and comprehensive business plan which describes the research and development work contemplated hereby, analyzes and assesses the technical viability and feasibility of the proposed research and development work, and describes the technical and other risk factors related thereto, all in form and substance sufficient in all respects to address technical concerns relating to same which could reasonably be expected to be asked by technical advisors to Beglend and those persons to whom Beglend and Bio Kinetix, and their agents and representatives, now intend or may hereafter desire to make presentations to raise funds to finance the development of Beglend's business, including without

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limitation venture  capitalists,  registered representatives  and  securities dealers in Canada, Europe, Asia and the United States ("Financiers");

(ii)      preparation of a comprehensive, multi-year financial plan and budget for the research and development work contemplated hereby, including without limitation a time estimates for completion of each phase or "milestone" of such work and a budget for any required equipment and any required support services from third parties, and an assessment of available government grant and loan programs, all in form and substance and in sufficient detail to address technical questions which could reasonably be expected to be asked by technical advisors to Beglend and Financiers;

(ii)    preparation of a description of the types, numbers and required skills of personnel anticipated to be required by InNexus to successfully complete the research and development work contemplated hereby, together with job descriptions for each of them and the duration of their expected service contracts having regard to the development schedule included in the budget provided for herein;

(iv)    identification of potential third party service providers having technical expertise in areas identified by Beglend from time to time as necessary or desirable for the conduct of the research and development contemplated by this Agreement, and assisting Beglend in negotiating service contracts with such service providers;

(v)    identification of potential business, strategic alliance and joint venture partners, and assisting Beglend in negotiations with such persons;

(vi)     liaising with current and prospective business, strategic alliance and joint venture partners, and with prospective Financiers;

(vii)   liaising with various governmental, regulatory and health authorities and agencies, including in particular the British Columbia Cancer Control Agency and Health Canada, and similar organizations in the United States, including the PDA, on matters relating to the subject matter of this Agreement; and

(viii)  the delivery of regular progress reports to and the holding of regular meetings with designated Beglend representatives, and production of such presentations and written technical reports on the research and development work conducted by InNexus and subcontractors to Beglend, and the results thereof, in such form and detail as Beglend may reasonably require to ensure the full exploitation of the License and all licenses pursuant to which Beglend has acquired and hereafter acquires rights to Beglend Antibodies, and to ultimately develop Compounds and Products;

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all as may be necessary or desirable to maintain, promote, enhance and expand the business and opportunities of Beglend, and in that regard InNexus will provide:

(ix)    the services of employees or approved contractors, each of whom is duly qualified,   experienced and competent or has been approved by Beglend; and

(x)         sufficient of the services of Dr. Alton Charles Morgan to ensure the overall quality of and results from such services;

3.7       Information Exchange. Beglend and InNexus will from time to time meet to exchange information and progress on activities covered by or reasonably pertinent to this Agreement as follows:

(a)      Beglend will inform InNexus of its ongoing R&D Programs and other activities hereunder including: (i) any development plans and related budgets for the development of Products hereunder; and (ii) its progress in the areas of applied research and development of Products, manufacturing of SAT Immunoconjugates, the conduct of clinical trials and interactions with the United States PDA;

(b)     InNexus will inform Beglend of: (i) progress with licensing SAT technology to other companies and InNexus' other activities, particularly as the same directly relates to the rights granted to Beglend hereunder; and (ii) improvements or new technology developed or licensed by InNexus that, though not covered by the License, which might be useful to Beglend in its own Product development; and

(c)     the information exchanged by both parties will be governed and limited by the provisions herein respecting the use and disclosure of Information and, where required or the disclosing party considers appropriate, third party confidentiality

agreements.

3.8   Due Diligence. Beglend shall use reasonable efforts consistent with prudent business practices to develop the SAT versions of the Beglend Antibody or any other Products the parties agree shall be developed hereunder and to obtain and maintain necessary governmental approval to market these Products, having regard to its financial and manpower resources from time to time; and InNexus shall use reasonable efforts consistent with prudent business practices to perform the research and development activities agreed to be performed by Beglend hereunder; provided that Beglend shall have full and final control over all aspects of all services provided by InNexus.

3.9    Participation at FDA. Beglend shall promptly forward to InNexus copies of all material correspondence with the FDA and shall promptly advise InNexus of all prospective meetings with the FDA related to Products developed by Beglend using SAT, and InNexus shall have the right to be present at and participate in any such meetings.

3.10     Title.  All rights, title and interest in and to all Compounds and Products shall be wholly

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and solely owned by Beglend and all filings for Regulatory Approval shall be made by or on behal f of and in the name of Beglend.

3.11   Data. All data generated on account of any Development Program shall be owned by Beglend and shall not be provided by InNexus to any third party without the consent of

Beglend.

3.11     Government Grants and Loans. All governmental and other grants and loans sought and obtained in connection with the License and any services provided hereunder or in respect hereof shall be sought and obtained in the name of Beglend.

4    SUPPLY AND MANUFACTURING

4.1    Access. InNexus will grant Beglend reasonable access at all reasonable times to its facilities or contractors for production of intermediates involved in the modification of monoclonal antibodies using SAT technology and will advise and instruct its staff and contractors accordingly.

4.2       Introductions. InNexus will provide Beglend with all reasonable introductions, assistance, information and advise as may be reasonably necessary to enable Beglend to negotiate contracts with contractors at or near the prices charged to InNexus by such

contractors.

5  COMMERCIALIZATION

5.1   Due Diligence. Beglend shall use reasonable efforts consistent with prudent business practices to market and sell Products it determines to commercialize hereunder in all major countries of the world (i.e., USA, Japan, Germany, France, Italy, United Kingdom, Canada and Brazil), having regard to its financial and manpower resources from time to time.

5.2    Assistance by InNexus. InNexus shall use reasonable efforts consistent with prudent business practices to assist Beglend on an "as needed" basis and at the request of Beglend, for such compensation and on such terms and conditions as the parties may reasonably agree, during the commercialization phase of each Product in the USA and

Canada.

5.3     Marketing and Promotion. Beglend shall retain sole responsibility and right to make all decisions relating to the marketing and promotion of Products.

5.4    Trademarks. Beglend shall own the trade names and trademarks for all Products and Beglend shall bear the cost of obtaining and maintaining such trademarks; and InNexus shall own all trademarks pertaining to SAT and other intellectual property included in the

Licensed Technology.

5.5       Use of the InNexus Name.   The packaging and promotional materials for the Products

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marketed by Beglend and/or Beglend's sub licensees shall identify InNexus as licensor of the InNexus Intellectual Property Rights; provided that if only one name is allowed to be in any specific item of packaging or promotional material pursuant to governmental laws or regulations, then Beglend may use its name alone on such item, without identifying InNexus as licensor.

6    CONSIDERATION

6.1    Cash Consideration: As consideration for the License and the performance of InNexus1 obligations under this Agreement, Beglend will pay InNexus $60,000 (U.S. funds) within three business days next following the Effective Date. This license will not become effective until payment of the Cash Consideration.

6.2      Share Consideration: As additional consideration for the License and the performance of InNexus' obligations under this Agreement, upon performance by InNexus of its obligations under section 3.1 of this Agreement, Beglend will issue to InNexus, as fully paid and non-assessable, 1,600,000 common shares without nominal or par value in the capital of Beglend (the "Beglend License Shares"); provided that if by such time Beglend has completed the contemplated assignment of the License and Beglend's rights and obligations under this Agreement to BioKinetix, Beglend (or Bio Kinetix, as the case may be) will have the right to substitute (or, if the Beglend License Shares have already been issued, arrange for the exchange of the Beglend License Shares for) 1,600,000 common shares without nominal or par value in the capital of BioKinetix (the "BioKinetix License Shares"), all with the intent and result that upon completion of such assignment (or share exchange) (i) the following numbers of shares of BioKinetix will be owned by the following persons; (ii) BioKinetix will have assumed all of Beglend's rights and obligations hereunder as if BioKinetix were the original licensee hereunder; (iii) Beglend will have no further obligations to InNexus pursuant to this Agreement; and (iv) InNexus will not own any shares of Beglend:

Name

Number of BioKinetix Shares                     Percentage

InNexus

1,600,000

10.00%

John Todd

1,000,000

6.25%

Linda Young

1,000,000

6.25%

Susan Minchin

1,000,000

6.25%

Beglend

9,800,000

71.25%

and it is hereby acknowledged and agreed that:

(a)        all Beglend License Shares and all BioKinetix License Shares will be subject to such restrictions on transfer and resale as may be prescribed by applicable laws and regulatory agencies, and will be legended accordingly;

(b)     Beglend is hereby irrevocably nominated, constituted and appointed as the lawful attorney of InNexus for the sole and limited purpose of doing such acts and things and executing and delivering such documents and instruments as may be required

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to effect any exchange of Beglend License Shares for BioKinetix License Shares pursuant to this section; and

(c)       Beglend and/or BioKinetix shall have the right to raise money through the issue of debt and/or equity securities to arm's length third parties for valuable consideration without the consent of InNexus so long as all of the aforementioned persons are diluted ratably; and InNexus hereby irrevocably waives any and all pre-emptive rights it might otherwise have at law or in equity respecting the issue of any such securities to a maximum aggregate issue price of US$5,000,000.

6.3       Royalty. Beglend shall pay royalties to InNexus equal to 3% of Net Sales Revenue,

calculated and payable as follows:

(a)        any Royalty payable hereunder shall be calculated on a Product by Product basis for each jurisdiction (each a "Market Area")in which any such Product is sold;

(b)    the period for which Beglend is required to pay a Royalty hereunder shall commence upon the first Launch of Product in a particular Market Area, and shall continue for the patent life of any Patents comprising the Licensed Technology or any Joint Patents which may hereafter be filed with respect to such Product or upon which such Product is based in that Market Area (the "Royalty Payment Period");

(c)       the first Royalty payment shall be calculated for the broken period commencing from the date of the first Launch of Product to and including the last day of Beglend's fiscal year in which the Launch of Product took place; and any succeeding Royalty payments shall be calculated from the first day until the last day of the corresponding fiscal year; and all Royalty payments shall be payable by cheque, cash, or bank draft, to InNexus' order, and shall be paid within 180 days of the completion of Beglend's fiscal year corresponding to that payment; provided that, notwithstanding the foregoing, Beglend shall pay quarterly installments of the estimated amount of Royalty payments due for each fiscal quarter completed after the date of Launch of Product, which shall be payable within 90 days after the end of each such quarter, and shall, when calculating the amount of Royalty due for that fiscal year in accordance with sub-section 6.5(c), adjust the installment payable for the final quarter in each fiscal year to reflect Beglend's estimate of the actual amount payable, after accounting for each of the prior payments made in that fiscal year; and Beglend shall pay all royalties in the currencies in which the revenues giving rise to such payment obligation are received by Beglend unless otherwise agreed in writing between the parties;

(d)       On or before 180 days following the end of each fiscal year of Beglend after the first Launch of Product, Beglend shall deliver to InNexus a statement indicating, in reasonable detail, as of the last day of the immediately preceding fiscal year, the calculation of Net Sales Revenue for each Product sold in each Market Area and the aggregate of the Royalty payable with respect to each such Product and each such Market Area for such year;

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(e)        Beglcnd will maintain up to date and complete records for the production and sale of Products in each Market Area including accounts, records, statements, the amount of free Products and sample Products distributed, Product returns relating to sales and marketing of the Product, and InNexus or its agent shall have the right at all reasonable times, including for a period of 12 months following the expiration or termination of this Agreement, to inspect such accounts, records and statements and make copies thereof at their own expense for the purpose of verifying the amount of Royalty payments to be made by Beglend to InNexus pursuant hereto; and InNexus shall have the right at its own expense to have such accounts audited by independent auditors once each year;

(f)     Beglend shall have an audited statement prepared by its auditors (which shall be qualified certified public accountants or chartered accountants) for each year with respect to the Royalty payable to InNexus hereunder, by 180 days following the end of each fiscal year, and Beglend shall forthwith deliver a copy of such

statement to InNexus;

(g)      All Royalty payments shall be considered full and final satisfaction of all obligations of Beglend making the same in respect thereof if such payments or the calculations in respect thereof are not disputed by InNexus within 180 days after receipt by InNexus of the audited statement referred to in subsection 6.5(f) hereof; and any disputes under this subsection shall be decided by arbitration as herein provided;

(h)    for the purpose of calculating Royalties, revenue shall be deemed to have been received when it has actually been received in the form of cash or credit or by way of any measurable benefit, advantage or concession; and in the event of any partial payment, the Royalty otherwise payable shall be pro-rated accordingly; in no event will Beglend be obligated to pay Royalties more than once in respect of any revenue received by it or its associates, affiliates, licensees or sub-licensees in connection with any single transaction (i.e. no "double" Royalties); and

(i)        for any product containing both a pharmaceutically active agent which causes it to be considered a Product and one or more other pharmaceutically active agents which are not Products (each a "Combination Product"), the parties shall in good faith negotiate and agree to an appropriate adjustment to the Net Sales Revenue to reflect the relative contribution of each Product and each other pharmaceutically active agent which is not a Product to the Combination Product; and if, after good faith negotiations (not to exceed ninety (90) days in duration unless extended by mutual agreement), the parties can not agree to an appropriate adjustment, Net Sale Revenue shall be equal to Net Sales of the Combination Product multiplied by a fraction, the numerator of which is the reasonable fair market value of the Compounds contained in the Combination Product and the denominator of which is the reasonable fair market value of all pharmaceutically active agents contained in the Combination Product, as determined by arbitration.

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6.4   Commercialization Payment. Beglend will pay InNexus $100,000 forthwith upon commercialization of the first Product, being the attainment of aggregate Net Sales Revenue of not less than US$1,000,000.

6.5     Withholding Tax. All payments under Sections 6.2 and 6.3 shall be made in full without deduction of taxes, charges and any other duties (collectively "Taxes") that may be imposed, provided, however, that Beglend shall to the extent required under the tax law of a given country, withhold such Taxes from any such sum and forthwith upon paying such sum to the given countries' tax authorities promptly furnish InNexus with the receipt thereof in respect of the same; and the parties agree to cooperate in all respects necessary to (a) take advantage of reduced withholding tax rates available under any applicable tax treaties, and (b) assist InNexus to obtain, at InNexus' cost, any refunds for InNexus of amounts withheld and paid to tax authorities, at the cost of InNexus.

6.6    Third Party Payments. InNexus shall be solely responsible for all royalties and other payments that may be due or payable by it to a third party with respect to the Licensed Technology or otherwise during the Term of this Agreement, including any payments that may become due under agreements entered into subsequent to the date of this Agreement.

7    INFORMATION

7.1       Exchange. During the Term of the Agreement, the parties will, free of charge, exchange all Information in their possession and control which they are legally permitted to disclose as may be reasonably necessary for the parties to meet their obligations under this Agreement and shall do such things as may be reasonably necessary to give effect to this provision including, in particular, the following:

(a)      the parties will use their best commercial efforts to establish a mechanism by which the parties will share Information under this section;

(b)      InNexus shall make available to Beglend all Information respecting the Intellectual Property Rights in its possession or control which has not been previously disclosed to Beglend;

(c)      without limiting the generality of the forgoing, a party shall, to the extent it is legally permitted to do so: (i) exchange all information coming into its possession or control, or its representatives' or Affiliates' possession or control, relating to formulation, manufacture, improvement, use and sale of Product, including any such information consisting of technical, pharmacological, preclinical, clinical, biochemical, toxicological and pharmacokinetic experimental data and results related to Product; (ii) permit a reasonable number of representatives of the other party or its Affiliates, at reasonable time and upon reasonable notice, to observe, review, make copies of, and/or discuss with the party or its Affiliate's scientists and/or clinicians supervising or conducting research related to Product, the results of studies and/or submissions to governmental agencies concerning Products, at

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mutually agreeable times and locations; and (iii) permit a reasonable number of representatives of the other party or its Affiliates, at reasonable time and upon reasonable notice, to observe, review, make copies of, and/or discuss with its or its Affiliate's scientists supervising or conducting manufacture of Product or third party scientists supervising or conducting manufacture on behalf of it, at mutually agreeable times and locations.

7.2     Confidentiality. During the Term of the Agreement and for five (5) years after termination, a receiving party shall a) treat Information provided by a disclosing party as it would treat its own information of a similar nature and take all reasonable precautions not to disclose such Information to third parties except Affiliates or actual or potential sub-licensees or sub-contractors who agree to be bound by the same terms and conditions as found in this Article 7, without the other party's prior written authorization and b) not use such Information for any purpose other than the purpose of exercising its rights and fulfilling its obligations under this Agreement.

7.3      Exceptions to Confidentiality Provisions. The provisions of this Section 7.2 shall not apply to such Information which:

(a)     was known or used by the receiving party or its Affiliates prior to its date of disclosure to the receiving party or its Affiliates by the disclosing party or its Affiliates, as evidenced by the prior written records of the receiving party or its Affiliates; or

(b)     either before or after the date of the disclosure to the receiving party or its Affiliates, is lawfully disclosed to the receiving party or its Affiliates by a third party rightfully in possession of such information; or

(c)      either before or after the date of the disclosure to the receiving party or its Affiliates, becomes published or generally known to the public through no fault or omission on the part of the receiving party or its Affiliates, but such inapplicability applies only after such information is published or becomes generally known; or

(d)      is independently developed by the receiving party or its Affiliates without reference to or reliance upon any such information of the disclosing party or its Affiliates; or

(e)        is required to be disclosed by the receiving party or its Affiliates to comply with applicable laws, to defend or prosecute litigation or to comply with governmental regulations, or to make filings for Regulatory Approval in any jurisdiction; provided that the receiving party or its Affiliates provides prior written notice of such disclosure to the disclosing party or its Affiliates and, to the extent practicable, takes reasonable and lawful actions to avoid and/or minimize the degree of such disclosure.

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7.4      Remedies on Breach. Each of the parties hereby acknowledges that it understands and agrees that the other party may suffer irreparable harm in the event that it breaches any of its obligations under Sub-section 7.2 of this Agreement and that monetary damages may be inadequate to compensate it for such a breach. Accordingly, each of the parties agrees that, in the event of a breach or threatened breach by a party of any the provisions in Sub-section 7.2, the other party, in addition to and not in limitation of any other rights, remedies or damages available to it at law or in equity, shall be entitled to an apply for an interim injunction, interlocutory injunction and permanent injunction in order to prevent or to restrain any such alleged breach by such party, or by any or all of its partners, co-venturers, employers, employees, servants, agents, representatives and any and all persons, directly or indirectly, acting for, on behalf of, or with such party, and the parties hereby agree that other remedies are inadequate to fully protect the rights of the party not in breach.

7.5       Publications. During the Term of the Agreement, the following restrictions shall apply with respect to disclosure by any party of Information in any publication or presentation (collectively "Publications"):

(a)     a party ("Publishing party") shall provide the other party with a copy of any proposed Publication at least forty-five (45) days or less if agreed by both parties prior to submission for publication so as to provide such other party with an opportunity to recommend any changes it reasonably believes are necessary to continue to maintain the Information disclosed by the other party to the Publishing party in accordance with the requirements of this Agreement; and the incorporation of such recommended changes shall not be unreasonably refused; and

(b)     if such other party notifies ("Publication Notice") the Publishing party in writing, within forty-five (45) days of receipt of the copy of the proposed Publication, that such Publication in its reasonable judgment (i) contains an invention, solely or jointly conceived and/or reduced to practice by the other party, for which the other party reasonably desires to obtain patent protection or (ii) could be expected to have a material adverse effect on the commercial value of any Information disclosed by the other party to the Publishing party, the Publishing party shall prevent such publication or delay such publication for a mutually agreeable period of time;

(c)     In the case of inventions, a delay shall be for a period reasonably sufficient to permit the timely preparation and filing of a patent applications) on the Invention, and in no event less than one hundred and eighty (180) days from the date of Publication Notice; and in the event the parties do not agree as to whether such Publication (i) contains an invention, solely or jointly conceived and/or reduced to practice by the other party, or (ii) could be expected to have a material adverse effect on the commercial value of any Information disclosed by the other party to the Publishing party, either party may submit the matter to arbitration generally in accordance with the procedures set forth in Article 11 of this Agreement.

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7.6       Exceptions. The restrictions set forth in this Article 7 shall not prevent either party from (i) preparing, filing, prosecuting or maintaining a patent application or its resulting patents related to the making, having made, using, offering for sale, selling or importing of Product, (ii) disclosing Information provided by the Disclosing party to persons working on behalf of the Receiving party or to governmental agencies, to the extent the-Receiving party reasonably believes is required or desirable to secure Regulatory Approval or any other government approval for the development, manufacture, marketing or sale of Product, or (iii) upon imminent approval or actual approval for Regulatory Approval by a governmental agency in a country of a drug application on Product, disclosing Information to the extent reasonably necessary to promote the use and sale of Product in the country.

7.7     Adverse Events. Beglend shall be responsible for reporting to the appropriate regulatory authorities all adverse events related to the use of the Products worldwide. Adverse events related to the use of the Products worldwide shall be recorded in Beglend's standard database and during the period of research into and development of Products, the parties will coordinate their efforts to assure that all adverse events are reported properly.

8    PATENTS

8.1     Ownership of Technology. Subject to Section 8.2, ownership of the InNexus Intellectual Property Rights and other intellectual property owned or controlled by InNexus shall remain vested at all times in InNexus, Ownership of Joint Patents shall be vested jointly in InNexus and Beglend, and all other intellectual property rights and other rights and work product comprised in or developed or produced pursuant to or in connection with the use of the Licensed Technology or otherwise pursuant to the provision of services by InNexus to Beglend shall vest in and be legally and beneficially owned by Beglend, and InNexus, for itself and its directors, officers, employees, contractors, Affiliates and associates, hereby waives and all so-called "moral rights" of creation, invention or authorship to same and agrees, for itself and its directors, officers, employees, contractors, Affiliates and associates, never to assert any claim to any "moral rights".

8.2      Patent Filing, Prosecution and Maintenance. InNexus will (i) prepare, file, prosecute and maintain all InNexus Patents in such countries as may be determined by the parties, (ii) consult with Beglend as to the preparing, filing, prosecuting and maintaining of such patent applications and patents, and (iii) furnish to Beglend copies of all significant documents relevant to any such preparation, filing, prosecution or maintenance; and

(a)      InNexus shall furnish such documents and consult with Beglend in sufficient time before any action by InNexus is due to allow Beglend to provide comments thereon, which comments InNexus shall consider;

(b)     InNexus shall bear all costs and expenses for preparing, filing, prosecuting and maintaining such patents and patent applications;

(c)       Beglend  shall  cooperate,  in  all  reasonable  ways   and  at  InNexus'   cost,  in

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connection with the preparing,  filing,  prosecuting  and maintaining InNexus Patents;

(d)     should InNexus decide that it does not desire to file, maintain or prosecute any InNexus Patent in one or more countries, it shall promptly advise Beglend thereof and, at the request of Beglend, InNexus shall (i) in the case of InNexus patents which are owned by InNexus, assign to Beglend its rights in and to such patent or patent application in such country or countries, or (ii) in the case of InNexus patents which are licensed, provide Beglend with such rights to prosecute and maintain such patent or patent application as may be permitted, and Beglend will thereafter file, prosecute and/or maintain the same at Beglend's own cost, to the extent that Beglend desires to do so.

8.3     Joint Patent Applications. As soon as a party concludes that it wishes to file an application to obtain a Joint Patent or a patent application claiming a Joint Invention, it shall immediately inform the other party and:

(a)       the party also will provide the other party with the determination of inventors and a copy of a draft specification, if any, and the scope of claims as early as possible. Unless otherwise agreed, Beglend agrees to (I) prepare, file, prosecute and maintain such priority patent application, corresponding foreign patents, and resulting patents, (ii) consult with InNexus as to the preparing, filing, prosecuting and maintaining of such patent applications and resulting patents, and (iii) furnish InNexus with copies of all documents relevant to any such preparation, filing, prosecution or maintenance;

(b)      unless agreed otherwise, the filing party shall furnish such documents and consult with the other party in sufficient time before any action by the filing party is due to allow the other party to provide comments thereon, which comments the filing party shall consider;

(c)      all external costs and expenses for preparing, filing, prosecuting and maintaining such patent applications and resulting patents in the USA and Canada shall be equally shared by the parties;

(d)      all external costs and expenses for preparing, filing, prosecuting and maintaining such patent applications and resulting patents in the countries other than the USA and Canada shall be borne by Beglend;

(e)      each party shall bear its internal costs, and on request of the party performing the filing, the other party will cooperate, in all reasonable ways, in connection with the preparing, filing, prosecuting and maintaining of such patent applications and resulting patents; and

(f)       should the filing party decide that it does not desire to file, maintain or prosecute a patent or patent application for a Joint Patent or claiming a Joint Invention in one or more countries, it shall promptly advise the other party thereof and, at the

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request of the other party, the filing party shall assign to the other party its rights in and to such patent or patent application in such country or countries, and the other party will thereafter file, prosecute and/or maintain the same at the other party's own cost, to the extent that the other party desires to do so.

8.4    Infringement by Third parties. Each party shall promptly notify the other in writing of any alleged or threatened infringement of the InNexus Patents and Joint Patents, of which it becomes aware, and:

(a)      InNexus shall have the right, but not the obligation, to bring, at InNexus' expense and in its sole control, an appropriate action against any person or entity infringing a InNexus Patent directly or contributorily; and if InNexus does not bring such action within ninety (90) days of notification thereof (or such shorter period of time as may be required pursuant to any applicable legislation necessary to preserve its rights in within a particular jurisdiction) to or by Beglend, Beglend shall have the right, but not the obligation, to undertake, at Beglend's expense and in its sole control, such action; and the party not bringing an action under this paragraph shall be entitled to separate representation in such matter by counsel of its own choice and at its own expense, but such party shall cooperate fully with the party bringing such action;

(b)       with respect to third party infringement of Joint Patents, the parties shall confer and take such action, and allocate expenses and recoveries in such manner, as they may agree; and in the absence of agreement within ninety (90) days of notification thereof, Beglend shall have the right, but not the obligation, to bring, at Beglend's expense and in its sole control, an action against any person or entity infringing a Joint Patent directly or contributorily and InNexus shall have the right to be fully informed regarding any litigation brought thereunder by Beglend, including the status of any settlement activity;

(c)      notwithstanding anything herein to the contrary, should a party receive notice with respect to a Product under any applicable legislation which, if applicable to that Product, would have the effect of restricting the price, marketability or the ability of such product to be sold on normal commercial terms notwithstanding Regulatory Approval ("Statutory Notice"), then such party shall immediately provide the other party with a copy of such Statutory Notice, and (i) InNexus shall have thirty (30) days from date on which it receives or provides a copy of such Statutory Notice (or such lesser time as may be required under applicable legislation to respond to or contest the application thereof to the Product) to provide written notice to Beglend whether InNexus will bring suit, at its expense, within a forty-five (45) day period from the date of such Statutory Notice (or such lesser time as may be required under applicable legislation; and (ii) should such thirty (30) day period (or shorter period, where required under applicable legislation) expire without InNexus bringing suit or providing such notice of its intention to proceed, then Beglend shall be free to immediately bring suit in its name.

22

(d)       the party which is not in control of any action brought pursuant to any of sections (a), (b) or (c) may elect to contribute fifty percent (50%) of the costs of litigation against such third party infringer, by providing written notice to the controlling party within ninety (90) days after such action is first brought; and (i) if the non-controlling party elects to bear fifty percent (50%) of such litigation costs, it shall receive fifty percent (50%) of any damage award or settlement resulting from such action; (ii) if the non-controlling party does not elect to share such litigation costs, it shall not participate in any damage award or settlement resulting from such action.

(e)       neither party shall settle a claim brought under this Section 8.4 without the consent of the other party, and (i) in the event of any recovery of monetary damages from the third party, whether such damages result from the infringement of InNexus Patents or Joint Patents, such recovery shall be allocated first to the reimbursement of any expenses incurred by the parties in the litigation under this section (including, for the purpose, a reasonable allocation of internal counsel and other expenses), and thereafter as provided in Section 8.4(d); and (ii) if the amount recovered from the third party is less than the aggregate expenses of the parties incurred in connection with such litigation, the recovery shall be shared pro rata between InNexus and Beglend in proportion to their respective expenses.

8.5     Infringement of Third Party Rights. In the event that a third party at any time provides notice to, or commences an action, suit or proceeding against, a party or such party's Affiliates, sub licensees or distributors, claiming infringement of the third party's patent rights or copyrights or unauthorized use or misappropriation of its technology, based upon an assertion or claim arising out of the making, having made, using, offering for sale, selling or importing of a Product, such party shall promptly notify the other party, and (i) neither party may settle such claim or action without the consent of the other party; (ii) the parties shall also discuss how the expenses and any recoveries from such action should be treated; and (iii) if the parties do not reach agreement, InNexus shall make the final decision at its own discretion and expense.

9    TERM AND TERMINATION

9.1     Term. The Term of the Agreement shall commence on the Effective Date and, unless sooner terminated as provided in this Article, expire on a country-by-country basis on the expiration of the applicable Royalty Payment Period, as set forth in sub-section 6.3(b).

9.2     Termination. If Beglend fails to remedy any one of the following defaults within 30 days after written notice from InNexus to remedy such default, InNexus may at its option, to be exercised reasonably and subject always to the right of arbitration on the part of Beglend, terminate the License hereby granted forthwith by delivering notice in writing confirming the continuing default and giving notice of termination therefor to Beglend:

(a)      if Beglend is declared insolvent by a Court of competent jurisdiction or makes an assignment for the benefit of its creditors, is declared bankrupt, makes or files a

23

notice of intention to make a proposal or otherwise takes advantage of provisions for relief under the Companies Creditors Arrangement Act (Canada), the Bankruptcy and Insolvency Act (Canada) or similar legislation in any jurisdiction and the proposal or application is defeated; or

(b)       if any resolution is passed or order made or other steps taken for the winding up, dissolution, liquidation or other termination of the existence of Beglend and Beglend acts on such resolution; or

(c)     if a receiver, receiver-manager or trustee in bankruptcy or similar officer is appointed to take charge of the affairs of Beglend and such appointment is not set aside within 90 days; or

(d)       Beglend fails to pay Royalties when due and fails to pay such overdue Royalties within 30 days of receiving written notice from InNexus specifying the nature and amount of the unpaid Royalties and demanding payment.

9.3       Suspension.  Beglend shall have the right to terminate this Agreement by written notice to InNexus if InNexus is in material breach of its obligations hereunder or does not provide the services to be provided by it pursuant to this Agreement or any other agreement, written or oral, substantially in accordance with the terms of this Agreement or such other agreement, or may, at Beglend's option, suspend payment of Royalties and/or service fees until such time as such breach is cured and/or such services are recommenced or properly provided.

9.4    Material Breach. Termination of this Agreement shall not relieve either party of the performance of any obligations incurred or payments required to be made prior to the effective date of termination.

9.5     Survival. Notwithstanding any termination of this Agreement, the obligations of the parties with respect to audit under Section 6.5 and Information under Article 7, as well as any other provisions , which by their nature are intended to survive any such termination, shall survive and continue to be enforceable.

10  WARRANTIES AND INDEMNITIES

10.1     InNexus Warranties. InNexus hereby represents and warrants to Beglend as follows:

(a)      InNexus has full right, authority and capacity to enter into and fully perform this Agreement and to grant the License, free and clear of all Liens and rights of third parties;

(b)      Schedule "A" is a complete list of the InNexus Intellectual Property Rights and all other intellectual property including any Patent Rights, license rights or trade marks, materials, property or assets which form part of the Licensed Technology or which are necessary or desirable for the development and commercial

24

exploitation of the Licensed Technology;

(c)     InNexus beneficially owns the InNexus Intellectual Property Rights, and no person, firm or corporation has any written or oral agreement, option, understanding or commitment, or any right or privilege capable of becoming an agreement, for the purchase or license from InNexus of any of the Licensed Technology which would prevent the granting of this License or limit the rights granted hereunder;

(d)      the InNexus Intellectual Property Rights included in the Licensed Technology are validly and beneficially owned by InNexus or the person specified in Schedule "A" free and clear of all Liens, charges and encumbrances whatsoever, with the sole and exclusive right to use and to license the use of the same, subject only to the limitations under this Agreement or, where so specified in Schedule "A", under the specified terms of the agreement pursuant to which such rights are held;

(e)      to the best of Innnexus' knowledge, the proposed commercial use of the Licensed Technology contemplated hereunder does not infringe upon the intellectual property, patents, trademarks, trade names or copyrights, domestic or foreign, of any other person, firm or corporation and the use of the Patents by Beglend in accordance with this Agreement will not infringe any Patents or breach any agreements to which InNexus is a party or by which it is bound;

(f)        to the best of InNexus' knowledge, none of the InNexus Patents included as part of the Licensed Technology was fraudulently procured from the relevant governmental patent granting authority;

(g)       to the best of InNexus' knowledge, information and belief, the Licensed Technology is not in the public domain, there are no lawful grounds for invalidating any Patents, and each InNexus Patent is, or will be, valid and enforceable;

(h)    InNexus is not a party to or threatened with any litigation action, suit or proceeding in any court or before any administrative tribunal which affects or may affect the Licensed Technology or InNexus' ability to duly complete the transactions contemplated herein nor, to the knowledge of InNexus after due inquiry, is any such action, suit or proceeding pending or threatened nor is there any basis therefor.

10.2    Effect of InNexus Warranties. The representations, warranties, covenants and agreements by InNexus set forth in section 10.1 or contained elsewhere in this Agreement or any certificates or other documents delivered to Beglend pursuant to the provisions hereof or in connection with the transactions contemplated hereby, are, except where otherwise expressly stated, true as of the date and time of execution hereof and shall be true at and as of the Effective Date and, notwithstanding any investigations or enquiries made by Beglend prior to execution hereof, the representations, warranties, covenants and

25

agreements of InNexus shall survive the execution and delivery hereof and shall continue in full force and effect throughout the term of this Agreement.

10.3     Beglend Warranties. Beglend hereby represents and warrants as follows:

(a)      Beglend has full right, authority and capacity to enter into and fully perform this Agreement;

(b)      All Patents and other intellectual property rights pertaining the Beglend Antibody and all other intellectual property including any Patents, license rights or trade marks, materials, property or assets which are necessary or desirable for the development and commercial exploitation of at least one Beglend Antibody in conjunction with the Licensed Technology in the manner contemplated herein are in Beglend' possession and control;

(c)      Beglend beneficially owns or holds under license the rights to all Patents and other intellectual property rights pertaining to at least one Beglend Antibody, free and clear of all Liens, charges and encumbrances whatsoever, with the sole and exclusive right to use and to license the use of the same, subject only to such limitations as may be disclosed to in writing to InNexus, and no person, firm or corporation has any written or oral agreement, option, understanding or commitment, or any right or privilege capable of becoming an agreement, for the purchase or license from Beglend of any of such rights which would prevent the development of Products under this License or limit the rights granted hereunder;

(d)    to the best of Beglend's knowledge, the proposed commercial use of Beglend Antibody in the manner contemplated hereunder does not infringe upon the patents, trademarks, trade names or copyrights, domestic or foreign, of any other person, firm or corporation;

(e)       Beglend is not a party to or threatened with any litigation action, suit or proceeding in any court or before any administrative tribunal which affects or may affect any Beglend Antibody or Beglend' ability to duly complete the transactions contemplated herein nor, to the knowledge of Beglend after due inquiry, is any such action, suit or proceeding pending or threatened nor is there any basis therefor.

10.4     Effect of Beglend Warranties. The representations, warranties, covenants and agreements by Beglend set forth in section 10.3 or contained elsewhere in this Agreement or any certificates or other documents delivered to InNexus pursuant to the provisions hereof or in connection with the transactions contemplated hereby, are, except where otherwise expressly stated, true as of the date and time of execution hereof and shall be true at and as of time of execution on the Effective Date and, notwithstanding any investigations or enquiries made by Beglend prior to execution hereof, the representations, warranties, covenants and agreements of Beglend shall survive the execution and delivery hereof and shall continue in full force and effect throughout the

26

term of this Agreement.

10.5  Warranties of Both Parties. Each party warrants that, as of the date it signs this Agreement, it has the full right and authority to enter into this Agreement, and that it is not aware of any impediment that would inhibit its ability to perform its obligations hereunder; and each party warrants and represents to the other that, as of the date it signs this Agreement to the best of its knowledge, it or its Affiliates has disclosed all information in possession or control of it or its Affiliates which, in the opinion of it or its Affiliates, would be material to the other party entering into this Agreement, and such information does not contain any untrue statement of material fact or omit to state a material fact.

10.6   DISCLAIMER. THE FOREGOING REPRESENTATIONS AND WARRANTIES ARE IN LIEU OF ALL OTHER REPRESENTATIONS AND WARRANTIES NOT EXPRESSLY SET FORTH HEREIN. INNEXUS AND BEGLEND DISCLAIM ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO EACH OF THEIR RESEARCH, DEVELOPMENT AND COMMERCIALIZATION EFFORTS HEREUNDER, INCLUDING, WITHOUT LIMITATION, WHETHER THE PRODUCTS CAN BE SUCCESSFULLY DEVELOPED OR MARKETED, THE ACCURACY, PERFORMANCE, UTILITY, RELIABILITY, TECHNOLOGICAL OR COMMERCIAL VALUE, COMPREHENSIVENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WHATSOEVER OF ANY PRODUCTS. IN NO EVENT SHALL EITHER INNEXUS OR BEGLEND BE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THIS AGREEMENT BASED ON CONTRACT, TORT OR ANY OTHER LEGAL THEORY.

10.7    Indemnification by Beglend. Beglend agrees to defend, indemnify and hold InNexus and its directors, officers, employees and agents (the "InNexus Indemnified parties") harmless from and against any losses, costs, and damages, including reasonable costs and expenses arising out of the development, manufacture, use, sale or other disposition of any Product by Beglend, its Affiliates, its sub licensees, its distributors, or representatives, except to the extent that such losses, costs and damages are due to the negligence or wrongful acts or failures to act of InNexus, and:

(a)     in the event of any such claim against the InNexus Indemnified parties by a third party, InNexus shall promptly notify Beglend in writing of the claim and Beglend shall undertake and shall solely manage and control, at its sole expense, the defense of the claim and its settlement;

(b)     the InNexus Indemnified parties shall cooperate with Beglend and may, at their option and expense, be represented in any such action or proceeding;

(c)     Beglend shall not be liable for any litigation costs or expenses incurred by the InNexus Indemnified parties without Beglend's written authorization; and

27

(d)      Beglend shall not settle any such claim against InNexus unless such settlement fully and unconditionally releases InNexus from all liability relating thereto, unless InNexus otherwise agrees in writing.

10.8     Indemnification by InNexus.  InNexus agrees to defend, indemnify and hold Beglend and its directors, officers, employees and agents (the "Beglend Indemnified parties") harmless from and against any losses, costs, and damages, including reasonable costs and expenses arising out of the development, manufacture, use, sale or other disposition of any Product by InNexus, its Affiliates, licensees (other than Beglend), distributors, or representatives (if applicable), except to the extent that such losses, costs and damages are due to the negligence or wrongful acts or failures to act of Beglend, and

(a)       in the event of any such claim against the Beglend Indemnified parties by a third party, Beglend shall promptly notify InNexus in writing of the claim and InNexus shall undertake and shall solely manage and control, at its sole expense, the defense of the claim and its settlement;

(b)     the Beglend Indemnified parties shall cooperate with InNexus and may, at their option and expense, be represented in any such action or proceeding;

(c)     InNexus shall not be liable for any litigation costs or expenses incurred by the Beglend Indemnified parties without InNexus' written authorization; and

(d)      InNexus shall not settle any such claim against Beglend unless such settlement fully and unconditionally releases Beglend from all liability relating thereto, unless Beglend otherwise agrees in writing.

11  DISPUTE RESOLUTION

11.1   Arbitration Procedures. The parties agree that all questions or matters in dispute with respect to any matter under this Agreement, including without limitation the accounting of moneys expended by Beglend as provided herein, or with respect to the calculation of Royalties or amounts taken into account in the determination of Net Sales Revenue, the time and date for doing anything hereunder which cannot be resolved by good faith discussions between officers of the parties or in respect to any other dispute which the parties agree shall be settled by arbitration, shall be submitted to arbitration pursuant to the following terms:

(a)       Any party intending to refer to any matter to arbitration shall give not less than 60 days' prior written notice of its intention to do so to the other parties together with particulars of the matter in dispute. On the expiration of such 60 days, the party who gave such notice may proceed to refer the dispute to arbitration as provided in subsection 11.1 (b);

(b)     The parties shall appoint a suitably qualified person acceptable to all parties acting reasonably as arbitrator or, should the parties be unable to agree on such

28

appointment, the arbitrator shall be appointed under the provisions of the International Commercial Arbitration Act of British Columbia (the "Act"). Except as specifically otherwise provided in this Section, the arbitration herein provided for shall be conducted in accordance with such Act. The arbitrator shall fix a time and place in Vancouver, British Columbia, for the purpose of hearing the evidence and representations of the parties, and he shall preside over the arbitration and determine all questions of procedure not provided for under such Act or this Section. After hearing any evidence and representations that the parties may submit, the arbitrator, or the arbitrators, as the case may be, shall make an award and reduce the same to writing, and deliver one copy thereof to each of the parties. The expense of the arbitration shall be paid as specified in the award; and

(c)        The parties agree that the award of the arbitrator shall be final and binding upon each of them.

12 MISCELLANEOUS

12.1     Disclosure of Agreement and Press Releases and Technical information.   Neither

party will disclose the existence, terms or conditions of this Agreement to any third party or issue any press release relating to the existence, terms and conditions of this Agreement for any purpose without the prior written consent of the other party, except as required by law (including without limitation any regulatory agency or commission of competent jurisdiction).

12.2     Force Majeure. If either party shall be delayed, interrupted or prevented with respect to the performance of any obligation hereunder by reason of an act of God, fire, flood, war (declared or undeclared), public disaster, strike or labor dispute, governmental enactment, rule or regulation, or any similar cause beyond such party's control, such party shall not be liable to the other therefore; and the time for performance of such obligation shall be extended for a period equal to the duration of the contingency which occasioned the delay, interruption or prevention; and within fifteen (15) days after the beginning of the force majeure, the party invoking its force majeure rights must notify the other party of this fact in accordance with Section 12.5; and the other party must also be notified of the termination of the force majeure within fifteen (15) days after such termination; and if the force majeure renders either of the required notifications impossible, notification must be given as soon as possible.

12.3     Waiver. The waiver by a party of a breach or a default of any provision of this Agreement by the other party shall not be construed as a waiver of any succeeding breach of the same or any other provision, nor shall any delay or omission on the part of a party to exercise or avail itself of any right, power or privilege that it has or may have hereunder operate as a waiver of any right, power or privilege by such party.

12.4   Notices. Each notice, demand or other communication required or permitted to be given under the Agreement (in this section 12.4 only, a "Notice") shall be given in accordance

29

with the following provisions:

(a)       each Notice shall be in writing and shall be sent by prepaid registered mail addressed to the party entitled to receive the same, or delivered to such party personally or by Electronic Communication, at the address or telecopier number for such party specified below:

30

(i)        If to Beglend:

Beglend Corporation S.A.

Fourteenth Floor, Commerce Building, Box 41 400 Burrard Street Vancouver, B.C. Canada, V6C 3G2 Telecopier No.:

with a copy to:

Holmes & King

Barristers & Solicitors

1300 - 1111 West Georgia Street

Vancouver, B.C.

V6E 4M3

Attention: Terrence E. King Telecopier No.: (604)681-1307

(ii)       If to InNexus:

InNexus Corporation

3405 172nd Street, #196

Arlington (Seattle), Washington 98223

Attention: Dr. Alton Charles Morgan Telecopier No.: (425) 696-0068

with a copy to:

Leschert & Company Law Corporation

Barristers and Solicitors

500 - 999 West Hastings Street

Vancouver

British Columbia V6C 2W2

Attention: Alien D. Leschert Telecopier No.: (604) 687-0043

(b)     the date of receipt of a Notice shall be the date of delivery thereof if delivered personally or by Electronic Communication, or, if given by registered mail as aforesaid, shall be deemed conclusively to be the 7l day after the same shall have been so mailed except in the case of interruption of postal services for any reason whatever, in which case the date of receipt shall be the date on which the Notice is

31

actually received by the addressee; and

(c)        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 shall be given to it thereafter until further change.

12.5   No Agency. Nothing herein shall be deemed to constitute either party as the agent or representative of the other party and (i) each party shall be an independent contractor, not an employee or partner of the other party; (ii) each party shall be responsible for the conduct of activities at its own facilities and for any liabilities resulting there from; and (iii) neither party shall be responsible for the acts or omissions of the other party, and neither party will have authority to speak for, represent or obligate the other party in any way without prior written authority from the other party.

12.6  Entire Agreement. This Agreement (including its Appendices) constitutes the entire agreement between the parties with respect to the subject matter and supersedes all previous agreements , whether oral or written; and this Agreement can only be changed or modified by written agreement of the parties.

12.7   Captions. The captions herein are for convenience only and shall not be interpreted as having any substantive meaning.

12.8   Severability. In the event that any provision of this Agreement is held by a court of competent jurisdiction to be unenforceable because it is invalid or in conflict with any law of any relevant jurisdiction, the validity of the remaining provisions shall not be affected, and the parties shall negotiate a substitute provision that, to the extent possible, accomplishes the original business purpose.

12.9   Assignment. This Agreement shall be binding upon and shall inure to the benefit of successors of the parties hereto and to the assigns of all good will and entire business and assets of a party hereto, but shall otherwise not be assignable without prior written consent of the other party; provided that, notwithstanding the above, without notice to InNexus, Beglend may at any time and for any reason assign all of its rights and obligations to Bio Kinetix or one of Beglend's Affiliates who agree to be bound by the terms and obligations of this Agreement; and such assignment shall be considered as effective on the date specified by Beglend in its notice, even if retroactive; and if Bio Kinetix is the assignee, it shall have the continuing right to assign any or all of its rights and obligations hereunder to one or more of its Affiliates who agree to be bound by the terms and obligations of this Agreement.

12.10  Law . This Agreement will be governed by and interpreted according to the laws of the province of British Columbia, Canada, and the parties hereby irrevocably agree (subject to the provisions herein with respect to arbitration of disputes) to submit to the jurisdiction of the Courts thereof in connection with any disputes arising hereunder and irrevocably select Vancouver, British Columbia as the proper venue for any such disputes.

32

12.11   Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all of such together shall constitute one and the same instrument.

IN WITNESS WHEREOF, InNexus and Beglend have caused this Agreement to be duly executed by their authorized representatives as of the date first set forth above.

SIGNED,  SEALED AND DELIVERED

)

By BEGLEND CORPORATION S.A.

)

“Dr. Werner Keicher”

Per: Dr.  Werner Keicher

in the presence of:

)

BEGLEND CORPORATION

(s)

Name of Witness

 

(Name of Signatory and Office Held)

 

Occupation of Witness

 

 

Address

 

 

SIGNED,  SEALED AND DELIVERED   

)

By INNEXUS CORPORATION

)

in the presence of:

)

)   INNEXUS CORPORATION

Signatory Alton C. Morgan )   President & CEO

Gail S. Thurston

V.P. Corporate Development

5567 Deerhorn Lane, N. Vancouver, BC

33

 

Appendix "A" To License Agreement Between Beglend Corporation and InNexus

Biotechnology International Inc.

Intellectual Property Rights (including Patent Rights) and other rights or assets pertaining to SAT held by InNexus Patent Rights

United States Patent

6,238,667

Kohler                                                                                                                          May 29, 2001

Method of affinity cross-linking biologically active immunogenic peptides to antibodies

	USPTO - Continuation in part

	09 / 865,201

	Kohler, Morgan

	August 15, 2002

	

	

	Fusion Proteins of Biologically Active Peptides and Antibodies

	

	USPTO - Provisional

	

	Kohler, Morgan

	September, 2002

	

	

	Therapeutic Application of Dimerizing, Non-Covalent Antibodies

	

Relevant Intellectual Property Agreements

None Other Intellectual Property Rights

None

34

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