Document:

TERM
        PROMISSORY NOTE

      Exhibit
        10.5

      Term
        Loan D

      $9,000,000

      San
        Juan, Puerto Rico

      
        	August 30, 2005	
                 Due:
                  March 31,
                  2008

              

      

            

      

      FOR
        VALUE
        RECEIVED, the undersigned (the “Borrowers”), hereby unconditionally, jointly and
        severally, primarily and unconditionally, promises to pay to the order of
        WESTERNBANK PUERTO RICO, a Puerto Rico banking corporation (the “Lender”), at
        the offices of Lender at Westernbank World Plaza, Suite 600, 268 Munoz Rivera
        Avenue, Hato Rey, Puerto Rico 00918, or at such other place as the Lender
        or any
        holder hereof may from time to time designate, the principal sum of Nine
        Million
        Dollars ($9,000,000) in lawful money of the United States America and in
        immediately available funds, in twenty nine (29) consecutive monthly
        installments (or earlier as hereinafter provided), on the first day of each
        month commencing December 1, 2005, (a) of which the first twenty eight (28)
        payments shall be in the amount of $150,000 each and (b) with a final payment
        of
        $4,800,000 and interest due on March 31, 2008 (or earlier as hereinafter
        provided).

       

      This
        Note
        is subject to mandatory prepayment of principal to the extent and as provided
        in
        the “Loan Agreement” (as hereafter defined). All such mandatory prepayments
        shall be applied to payments due hereunder in inverse order of
        maturity.

      

      Borrowers
        hereby further promise to pay interest to the order of Lender on the unpaid
        principal balance hereof at the Interest Rate (as hereinafter defined). Such
        interest shall be paid in like money at said office or place from the date
        hereof, monthly on the first day of each month until full and final payment
        of
        the indebtedness evidenced by this Note, commencing on the first day of the
        month following the date on which this Note is executed and delivered by
        Borrowers to Lender and on the first day of each month thereafter. Interest
        payable upon and after an Event of Default or termination or non-renewal
        of the
        Loan And Security Agreement, between the Lender and the Borrowers, dated
        as of
        the date hereof (the “Loan Agreement”) shall be payable upon
        demand.

      

      For
        purposes hereof, the term “Interest Rate” shall mean (a) fifteen percent
        (15.00%) per annum. Interest shall be calculated on the basis of a three
        hundred
        and sixty (360) day year and actual days elapsed. In no event shall interest
        charged hereunder exceed the maximum permitted under the laws of the
        Commonwealth of Puerto Rico or other applicable law.

      

      Interest
        shall be payable at Lender’s option, without notice, at the rate of seventeen
        percent (17.00%) per annum from and after the maturity hereof or after the
        date
        of the occurrence of an Event of Default, and for so long as such Event of
        Default is continuing as determined by Lender and until such time as Lender
        has
        received full and final payment of all Obligations (notwithstanding the entry
        of
        any judgment against any Borrower).

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      Lender’s
        charges shall be included in each monthly statement of Borrowers’ loan account.
        Lender shall have the right, at Lender’s option, to charge all such interest
        charges and fees (including, without limitation, any retroactive interest
        as
        provided in the Loan Agreement) to Borrowers’ loan account on the first day of
        each month, and such interest charges shall be deemed to be paid by the first
        amounts subsequently credited thereto.

      

      This
        Note
        is issued pursuant to the terms and provisions of the Loan Agreement to evidence
        the Term Loan D by Lender to Borrowers. This Note is secured by the Collateral
        described in the Loan Agreement and all notes, guarantees, security agreements
        and other agreements, documents and instruments now or at any time hereafter
        executed and/or delivered by any Borrower or any other party in connection
        therewith (all of the foregoing, together with the Loan Agreement, as the
        same
        now exist or may hereafter be amended, modified, supplemented, renewed,
        extended, restated or replaced, being collectively referred to herein as
        the
“Financing Agreements”), and is entitled to all of the benefits and rights
        thereof and of the other Financing Agreements. Capitalized terms used herein,
        not otherwise defined herein, shall have the respective meanings prescribed
        in
        the Loan Agreement. At the time any payment is due hereunder (including,
        without
        limitation, any retroactive interest as provided in the Loan Agreement),
        at its
        option, Lender may charge the amount thereof to any account of Borrowers
        maintained by Lender.

      

      If
        any
        payment of principal(including without limitation any mandatory prepayment)
        or
        interest is not made when due hereunder, or if any other Event of Default
        shall
        occur for any reason, or if the Loan Agreement shall be terminated or not
        renewed for any reason whatsoever, then and in any such event, in addition
        to
        all rights and remedies of Lender under the Financing Agreements, applicable
        law
        or otherwise, all such rights and remedies being cumulative, not exclusive
        and
        enforceable alternatively, successively and concurrently, Lender may, at
        its
        option, declare any or all of Borrowers’ obligations, liabilities and
        indebtedness owing to Lender under the Loan Agreement and the other Financing
        Agreements (the “Obligations”), including, without limitation, all amounts owing
        under this Note, to be due and payable, whereupon the then unpaid balance
        hereof, together with all interest accrued thereon, shall forthwith become
        due
        and payable, together with interest accruing thereafter at the then applicable
        Interest Rate stated above until the indebtedness evidenced by this Note
        is paid
        in full, plus the costs and expenses of collection hereof, including, but
        not
        limited to, attorneys’ fees and legal expenses.

      

      Borrowers
        (a) waive diligence, demand, presentment, protest and notice of any kind,
        (b)
        agrees that it will not be necessary for Lender to first institute suit in
        order
        to enforce payment of this Note and (c) consents to any one or more extensions
        or postponements of time of payment, release, surrender or substitution of
        collateral security, or forbearance or other indulgence, without notice or
        consent. The pleading of any statute of limitations as a defense to any demand
        against Borrowers is expressly hereby waived by Borrowers. Upon any Event
        of
        Default or termination or non-renewal of the Loan Agreement, Lender shall
        have
        the right, but not the obligation, to setoff against this Note all money
        owed by
        Lender to any Borrower.

      

      Lender
        shall not be required to resort to any Collateral for payment, but may proceed
        against Borrowers and any guarantors or endorsers hereof in such order and
        manner as Lender may choose. None of the rights of Lender shall be waived
        or
        diminished by any failure or delay in the exercise thereof.

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      The
        validity, interpretation and enforcement of this Note and the other Financing
        Agreements and any dispute arising in connection herewith or therewith shall
        be
        governed by the internal laws of the Commonwealth of Puerto Rico (without
        giving
        effect to principles of conflicts of law).

      

      Borrowers
        irrevocably consent and submit to the non-exclusive jurisdiction of the Superior
        Court of San Juan and/or the United States District Court for the District
        of
        Puerto Rico and waives any objection based on venue or forum non conveniens
        with
        respect to any action instituted therein arising under this Note or any of
        the
        other Financing Agreements or in any way connected with or related or incidental
        to the dealings of Borrowers and Lender in respect of this Note or any of
        the
        other Financing Agreements or the transactions related hereto or thereto,
        in
        each case whether now existing or hereafter arising, and whether in contract,
        tort, equity or otherwise, and agrees that any dispute arising out of the
        relationship between Borrowers and Lender or the conduct of such persons
        in
        connection with this Note or otherwise shall be heard only in the courts
        described above (except that Lender shall have the right to bring any action
        or
        proceeding against any Borrower or its property in the courts of any other
        jurisdiction which Lender deems necessary or appropriate in order to realize
        on
        the Collateral or to otherwise enforce its rights against such Borrower or
        its
        property).

      

      Borrowers
        hereby waive personal service of any and all process upon it and consents
        that
        all such service of process may be made by certified mail (return receipt
        requested) directed to it and service so made shall be deemed to be completed
        five (5) days
        after the same shall have been so deposited in the U.S. mails, or , at Lender’s
        option, by service upon Borrowers in any other manner provided under the
        rules
        of any such courts. Within thirty (30) days after such service, Borrowers
        shall
        appear in answer to such process, failing which Borrowers shall be deemed
        in
        default and judgment may be entered by Lender against Borrowers for the amount
        of the claim and other relief requested.

      

      BORROWERS
        HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE
        OF
        ACTION (a) ARISING UNDER THIS NOTE OR (b) IN ANY WAY CONNECTED WITH OR RELATED
        OR RELATED OR INCIDENTAL TO THE DEALINGS BETWEEN BORROWERS AND LENDER IN
        RESPECT
        OF THIS NOTE OR ANY OF THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS
        RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
        ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE. BORROWERS AGREE
        AND
        CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE
        DECIDED
        BY COURT TRIAL WITHOUT A JURY.

      

      The
        execution and delivery of this Note has been authorized by the Board of
        Directors and by any necessary vote or consent of the stockholders of Borrowers.
        Borrowers hereby authorize Lender to complete this Note in any particulars
        according to the terms of the loan evidenced hereby.

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      This
        Note
        shall be binding upon the successors and assigns of Borrowers and inure to
        the
        benefit of Lender and its successors, endorsees and assigns. Whenever used
        herein, the term ABorrowers@
        shall be
        deemed to include their successors and assigns and the term ALender@
        shall be
        deemed to include its successors, endorsees and assigns. If any term or
        provision of this Note shall be held invalid, illegal or unenforceable, the
        validity of all other terms and provisions hereof shall in no way be affected
        thereby.

      

      

      

      Inyx
        Europe Limited

      

      

      By:
        /s/
        Jack Kachkar

      Name:
        Jack Kachkar

      Title:
        Director

      

      

      By:/s/
        Jay M. Green

      Name:
        Jay
        M. Green

      Title:
        Director

      

      

      Celltech
        Manufacturing Services Limited

      

      

      By:
        /s/
        Jack Kachkar

      Name:
        Jack Kachkar

      Title:
        Director

      

      

      By:
        /s/
        Jay
        M. Green

      Name:
        Jay
        M. Green

      Title:
        Director

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      Signed
        before me Emma
        Warne
        on
31
        August
        2005, a
        Solicitor of England And Wales by Jack
        Kachkar,
        personally known to me or who has produced a driver’s license or passport as
        identification, at Allen & Overy, One New Change, London, EC4M 9QQ,
        England.

      

      

       Emma
        Warne

      Solicitor

      

      

      

      Signed
        before me Emma
        Warne
        on
31
        August
        2005, a
        Solicitor of England And Wales by Jay
        Green,
        personally known to me or who has produced a driver’s license or passport as
        identification, at Allen & Overy, One New Change, London, EC4M 9QQ,
        England.

      

      

       Emma
        Warne

      Solicitor

      

      
        
          
          

        

        
          5Exhibit
        10.6 

      GUARANTOR
        GENERAL SECURITY AGREEMENT

      This
        General Security Agreement ("Agreement"), dated as of August 30, 2005 is
        by
        Inyx, Inc. (“Inyx”), a Nevada corporation, Inyx USA, Ltd. (“Inyx USA”), an Isle
        Of Man corporation and Inyx Pharma Limited (“Inyx Pharma”), an England And Wales
        corporation (singly a “Guarantor” and collectively “Guarantors”) in favor of
        Westernbank Puerto Rico (“Lender”), a Puerto Rico banking
        corporation.

      

      W
        I T
        N E S E T H

      

      

      WHEREAS,
        Lender has entered or is about to enter into certain financing arrangements
        with

      Inyx
        Europe Limited, an England And Wales corporation and Celltech Manufacturing
        Services Limited, an England And Wales corporation (singly and
        collectively“Borrower”), pursuant to which Lender may make loans and provide
        other financial accommodations to Borrower;

      

      WHEREAS,
        Guarantors have executed and delivered to Lender guarantees in favor of Lender,
        pursuant to which Guarantors have absolutely and unconditionally guaranteed
        to
        Lender, the payment and performance of all now existing and hereafter arising
        obligations, liabilities and indebtedness of Borrower to Lender; 

      

      NOW,
        THEREFORE, in consideration of the mutual conditions and agreements set forth
        herein, and for other good and valuable consideration, the receipt and
        sufficiency of which is hereby acknowledged, the parties hereto agree as
        follows:

      

      SECTION
        I.  DEFINITIONS

       

      All
        terms
        used herein which are defined in the Puerto Rico Commercial Transactions
        Act
        shall have the meanings given therein unless otherwise defined in this
        Agreement. All references to the plural herein shall also mean the singular
        and
        to the singular shall also mean the plural unless the context otherwise
        requires. All references to Guarantors, Borrower and Lender pursuant to the
        definitions set forth in the recitals hereto, or to any other person herein,
        shall include their respective successors and assigns. The words "hereof",
        "herein", "hereunder", "this Agreement" and words of similar import when
        used in
        this Agreement shall refer to this Agreement as a whole and not any particular
        provision of this Agreement and as this Agreement now exists or may hereafter
        be
        amended, modified, supplemented, extended, renewed, restated or replaced.
        The
        word "including" when used in this Agreement shall mean "including, without
        limitation". An Event of Default shall exist or continue or be continuing
        until
        such Event of Default is waived in accordance with Section 7.3 or is cured
        in a
        manner satisfactory to Lender, if such Event of Default is capable of being
        cured as determined by Lender. For purposes of this Agreement, the following
        terms shall have the respective meanings given to them below:

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.1
          "Accounts" shall mean all present and future rights of Guarantor
        to
        payment for goods sold or leased or for services rendered, which are not
        evidenced by instruments or chattel paper, and whether or not earned by
        performance.

      

      1.2  "Adjusted
        Net Worth" shall have the meaning prescribed in the Parent Loan Agreement.
        

      

      1.3
        “Affiliate”
        shall
        have the meaning prescribed in the Parent Loan Agreement. 

       

      1.4
“Cash
        Equivalents” shall have the meaning prescribed in the Parent Loan Agreement.

      

      1.5 "Equipment"
        shall mean all of Guarantor's now owned and hereafter acquired equipment,
        wherever located, including machinery, data processing and computer equipment,
        computers and computer hardware and software (whether owned or licensed and
        including embedded software), vehicles, tools, furniture, fixtures, racks,
        shelves, material handling equipment, all attachments, accessions and property
        now or hereafter affixed thereto or used in connection therewith, and
        substitutions and replacements thereof, wherever located.

      

      1.6 "Event
        of Default" shall have the meaning set forth in Section 6.1 hereof.

      

      1.7 "Financing
        Agreements" shall mean, collectively, the Loan Agreement, this Agreement
        and all
        notes, guarantees, security agreements and other agreements, documents and
        instruments now or at any time hereafter executed and/or delivered by Borrower,
        any Guarantor or any Obligor in connection with the Loan Agreement, as the
        same
        now exist or may hereafter be amended, modified, supplemented, extended,
        renewed, restated or replaced.

      

      1.8  "GAAP"
        shall mean generally accepted accounting principles in the United States
        of
        America as in effect from time to time as set forth in the opinions and
        pronouncements of the Accounting Principles Board and the American Institute
        of
        Certified Public Accountants and the statements and pronouncements of the
        Financial Accounting Standards Board which are applicable to the circumstances
        as of the date of determination consistently applied, except that, for purposes
        of Sections 5.14 and 5.15 hereof, GAAP shall be determined on the basis of
        such
        principles in effect on the date hereof and consistent with those used in
        the
        preparation of the audited financial statements delivered to Lender prior
        to the
        date hereof.

      

      1.9  "Information
        Certificate" shall mean the Information Certificate of Guarantors constituting
        part of Exhibit A to the Parent Loan Agreement, containing material information
        with respect to Guarantor, its business and assets provided by or on behalf
        of
        Guarantor to Lender in connection with the preparation of this Agreement
        and the
        other Financing Agreements and the financing arrangements provided for
        herein.

       

      1.10
        "Intellectual Property" shall have the meaning prescribed in the Parent Loan
        Agreement. 

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      1.11
         "Inventory" shall mean all of Guarantors’ now owned and hereafter existing
        or acquired raw materials, work in process, finished goods and all other
        inventory of whatsoever kind or nature, wherever located.

      

      1.12 "Loan
        Agreement" shall mean the Loan And Security Agreement, dated on or about
        the
        date hereof, by and between Borrower and Lender, as the same now exists and
        may
        hereafter be amended, modified, supplemented, extended, renewed, restated
        or
        replaced. 

       

      1.13
        “Manufacturing Contracts” shall have the meaning prescribed in the Parent Loan
        Agreement.

      

      1.14  
        "Obligations" shall mean any and all obligations, liabilities and indebtedness
        of every kind, nature and description owing by Guarantors or any of them
        to
        Lender and/or its affiliates, including principal, interest, charges, fees,
        costs and expenses, however evidenced, whether as principal, surety, endorser,
        guarantor or otherwise, whether arising under this Agreement or otherwise,
        whether now existing or hereafter arising, whether arising before, during
        or
        after the initial or any renewal term of the Loan Agreement or after the
        commencement of any case with respect to Borrower or Guarantor under the
        United
        States Bankruptcy Code or any similar statute (including the payment of interest
        and other amounts which would accrue and become due but for the commencement
        of
        such case, whether or not such amounts are allowed or allowable in whole
        or in
        part in such case), whether direct or indirect, absolute or contingent, joint
        or
        several, due or not due, primary or secondary, liquidated or unliquidated,
        secured or unsecured, and however acquired by Lender.

      

      1.15  "Obligor"
        shall mean any other guarantor, endorser, acceptor, surety or other person
        liable on or with respect to the Obligations or who is the owner of any property
        which is security for the Obligations, other than Borrower.

      

      1.16
        “Parent Loan Agreement” shall mean the Loan And Security Agreement between Inyx,
        Inyx USA and Inyx Pharma and Lender, dated as of March31, 2005, as amended
        and
        supplemented and all amendments, supplements, modifications, substitutions
        and
        replacements thereof.

      

      1.17
        “Parent Financing Agreements” shall mean the “Financing Agreements” as defined
        in the Parent Loan Agreement.

      

      1.18  "Person"
        or "person" shall have the meaning prescribed in the Parent Loan Agreement.
        

      

      1.19
        “Real Estate Security” shall include (a) the mortgage liens on the Real Property
        and interests of Guarantor , pursuant to the Parent Financing Agreements
        (the
“Mortgages”), (b) the mortgage notes pledged to Lender, pursuant to the Parent
        Loan Agreement and (c) liens and security interests in favor of Lender on
        all
        other Real Property of Guarantor, all on the terms and subject to the provisions
        contained herein and in the other applicable Parent Financing
        Agreements.

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      1.20
        "Real Property" shall mean all now owned and hereafter acquired real property
        of
        Guarantor, including leasehold interests, together with all buildings,
        structures, and other improvements located thereon and all licenses, easements
        and appurtenances relating thereto, wherever located.

      

      1.21
        "Receivables" shall mean all of the following now owned or hereafter arising
        or
        acquired property of Guarantor: (a) all Accounts; (b) all interests, fees,
        late
        charges, penalties, collection fees and other amounts due or to become due
        or
        otherwise payable in connection with any Account; (c) all payment intangibles
        of
        Guarantor; (d) all letters of credit, indemnities, guarantees, security or
        other
        deposits and proceeds thereof issued payable to Guarantor or otherwise in
        favor
        of or delivered to Guarantor in connection with any Accounts; or (e) all
        other
        accounts, contract rights, chattel paper, instruments, notes, general
        intangibles and other forms of obligations owing to Guarantor, whether from
        the
        sale and lease of goods or other property, licensing of any property (including
        Intellectual Property or other general intangibles), rendition of services
        or
        from loans or advances by Guarantor or to or for the benefit of any third
        person
        (including loans or advances to any Affiliates or Subsidiaries of Guarantor)
        or
        otherwise associated with any Accounts, Inventory or general intangibles
        of
        Guarantor (including, without limitation, chooses in action, causes of action,
        tax refunds, tax refund claims, any funds which may become payable to Guarantor
        in connection with the termination of any employee benefit plan and any other
        amounts payable to Guarantor from any employee benefit plan, rights and claims
        against carriers and shippers, rights to indemnification, business interruption
        insurance and proceeds thereof, casualty or any similar types of insurance
        and
        any proceeds thereof and proceeds of insurance covering the lives of employees
        on which Guarantor is a beneficiary).

       

      1.22  "Records"
        shall mean all of Guarantor's present and future books of account of every
        kind
        or nature, purchase and sale agreements, invoices, ledger cards, bills of
        lading
        and other shipping evidence, statements, correspondence, memoranda, credit
        files
        and other data relating to the Collateral or any account debtor, together
        with
        the tapes, disks, diskettes and other data and software storage media and
        devices, file cabinets or containers in or on which the foregoing are stored
        (including any rights of Guarantor with respect to the foregoing maintained
        with
        or by any other person).

      

      1.23
        “Restricted Junior Payment” shall mean (a) any dividend or other distribution,
        direct or indirect, on account of any shares of any class of stock of Guarantor
        now or hereafter outstanding or any payment on account of a return of capital
        (or the setting aside or otherwise depositing or investing of any sums for
        such
        purpose) or (b) any redemption, retirement, purchase, defeasance or other
        acquisition, direct of indirect, of any shares of any class of stock of
        Guarantor or any Affiliate of Guarantor now or hereafter outstanding (or
        the
        setting aside or otherwise depositing or investing of any sums for such purpose)
        or (c) any payment, direct or indirect, of any interest, principal of or
        premium, if any, on any redemption, retirement, purchase or other acquisition,
        direct or indirect, of any Subordinated Debt (or the setting aside or otherwise
        depositing or investing of any sums for such purpose or (d) any payment of
        money
        or transfer of any interest in any asset to any Affiliate of
        Guarantor.

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      1.24
        "Uniform Commercial Code" shall include the Puerto Rico Commercial Transactions
        Act and “UCC” shall mean the Uniform Commercial Code.

      

      1.25
        "Working Capital" shall have the meaning prescribed in the Parent Loan
        Agreement. 

      

      SECTION
        2.  GRANT
        OF SECURITY INTEREST

      

      2.1
        Grant
        of Security Interest.
        To
        secure payment and performance of all Obligations, each Guarantor hereby
        grants
        to Lender a continuing security interest in, a lien upon, and a right of
        set off
        against, and hereby assigns to Lender as security, the following property
        and
        interests in property of such Guarantor, whether now owned or hereafter acquired
        or existing, and wherever located (together with all other collateral security
        for the Obligations at any time granted to or held or acquired by Lender
        collectively the ACollateral@):

       

      (a)
        all
        Accounts;

      (b)
        all
        present and future general intangibles, including all Intellectual
        Property;

      (c)
        all
        Inventory;

      (d)
        all
        Equipment;

      (e)
        all
        Real Property and fixtures and all Real Estate Security;

      (f)
        all
        chattel paper, including all tangible and electronic chattel paper;

      (g)
        all
        instruments, including all promissory notes;

      
        	
                 

              	
                (h)
                  all documents;

              

      

      (i)
        all
        deposit accounts;

      (j)
        all
        letters of credit, banker’s acceptances and similar instruments and including
        all letter of credit rights;

      (k)
        all
        supporting obligations and all present and future liens, security interests,
        rights, remedies, title and interest in, to and in respect of Receivables
        and
        other Collateral, including (i) rights and remedies under or relating to
        guaranties, contracts of suretyship, letters of credit and credit and other
        insurance related to the Collateral, (ii) rights of stoppage in transit,
        replevin, repossession, reclamation and other rights and remedies of an unpaid
        vendor, lienor or secured party, (iii) goods described in invoices, documents,
        contracts or instruments with respect to, or otherwise representing or
        evidencing, Receivables or other collateral, including returned, repossessed
        and
        reclaimed goods, and (iv) deposits by and property of account debtors or
        other
        persons securing the obligations of account debtors;

      (l)
        all
        (i) investment property (including securities, whether certificated or
        uncertificated, securities accounts, security entitlements, commodity contracts
        or commodity accounts) and (ii) monies, credit balances, deposits and other
        property of Guarantor, now or hereafter held or received by or in transit
        to
        Lender or at any other depository or other institution from or for the account
        of a Guarantor whether for safekeeping, pledge, custody, transmission,
        collection or otherwise;

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (m)
        all
        commercial tort claims, including, without limitation, those identified in
        the
        Information Certificate;

      (n)
        to
        the extent not otherwise described above, all Receivables and all
        goods;

      (o)
        all
        Records;

      (p)
        all
        motor vehicles;

      (q)
        the
        leases of all premises leased by Guarantor(including an assignment
        thereof);

      (r)
        all
        shares of stock of Borrower and all certificates representing such shares
        of
        stock;

      (s)
        all
        Manufacturing Contracts and assignment
        of proceeds of Manufacturing Contracts, including rents;
        and

      (t)
        all
        products and proceeds of the foregoing in any form, including insurance proceeds
        and all claims against third parties for loss or damage to or destruction
        of or
        other involuntary conversion of any kind or nature of any or all of the other
        collateral and any indemnities, warranties and guaranties payable by reason
        of
        loss or damage to or otherwise with respect to any of the forgoing
        items.

       

      2.2
        Perfection
        of Security Interest.
        (a)
        Guarantor irrevocably and unconditionally authorizes Lender (or its agent)
        to
        file at any time and from time to time such financing statements and other
        instruments with respect to the Collateral naming Lender or its designee
        as the
        secured party and such Guarantor as debtor, as Lender may require, and including
        any other information with respect to Guarantor or otherwise required by
        Article
        9 of the Uniform Commercial Code or other law of such jurisdiction as Lender
        may
        determine, together with any amendments and continuations with respect thereto,
        which authorization shall apply to all financing statements and other
        instruments filed on, prior to or after the date hereof. Guarantor ratifies
        and
        approves all financing statements and other instruments naming Lender or
        its
        designees as secured party and Guarantor, as the case may be, as debtor with
        respect to the Collateral (and any amendments with respect to such financing
        statements) filed by or on behalf of Lender prior to the date hereof and
        ratifies and confirms the authorization or such Person to file such financing
        statements and other instruments (and amendments, if any). Guarantor hereby
        authorizes Lender to adopt on behalf of Guarantor any symbol required for
        authenticating any electronic filing. In the event that the description of
        the
        collateral in any financing statement and other instruments naming Lender
        or its
        designee as the secured party and Guarantor as debtor includes assets and
        properties of such Guarantor that do not at any time constitute Collateral,
        whether hereunder, under any of the other Financing Agreements, or otherwise,
        the filing of such financing statement and other instruments shall nonetheless
        be deemed authorized by Guarantor to the extent of the Collateral included
        in
        such description and it shall not render the financing statement and other
        instruments ineffective as to any of the Collateral or otherwise affect the
        financing statement as it applies to any of the Collateral. In no event shall
        Guarantor at any time, file or permit or cause to be filed, any correction
        statement or termination statement with respect to any financing statement
        and
        other instruments (or any amendment or continuation with respect thereto)
        naming
        Lender or any Person from whom Lender acquired any of the Obligations or
        its
        designee as secured party and Guarantor as debtor.

       

      
        
          
          

        

        
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      (b)
        Guarantor does not have any chattel paper (whether tangible or electronic)
        or
        instruments as of the date hereof. In the event that Guarantor shall be entitled
        to or shall receive any chattel paper or instrument after the date hereof,
        Guarantors shall promptly notify Lender thereof in writing. Promptly upon
        the
        receipt thereof by or on behalf of any Guarantor (including by any agent
        or
        representative), Guarantor shall deliver, or cause to be delivered to Lender,
        all tangible chattel paper and instruments that Guarantor has or may at any
        time
        acquire, accompanied by such instruments of transfer or assignment duly executed
        in blank as Lender may from time to time specify in each case except as Lender
        may otherwise agree. At Lenders option, Guarantor shall, or Lender may at
        any
        time on behalf of Guarantor, cause the original of any such instrument or
        chattel paper to be conspicuously marked in a form and manner acceptable
        to
        Lender with the following legend referring to chattel paper or instruments
        as
        applicable: AThis
        _______________________ ____________________ is subject to the security interest
        of Westernbank Puerto Rico and any sale, transfer, assignment or encumbrance
        of
        this _________________________ ___________________ violates the rights of
        such
        secured party@.

      

      (c)
        In
        the event that Guarantor shall at any time hold or acquire an interest in
        any
        electronic chattel paper or any Atransferable
        record@
        (as such
        term is defined in Section 201 of the Federal Electronic Signatures in Global
        and National Commerce Act or in Section 16 of the Uniform Electronic
        Transactions Act as in effect in any relevant jurisdiction), Guarantor shall
        promptly notify Lender thereof in writing. Promptly upon Lender’s request,
        Guarantor shall take, or cause to be taken, such actions as Lender may request
        to give Lender control of such electronic chattel paper under Section 9-105
        of
        the UCC and control of such transferable record under Section 201 of the
        Federal
        Electronic Signatures in Global and National Commence Act or, as the case
        may
        be, Section 16 of the Uniform Electronic Transactions Act, as in effect in
        such
        jurisdiction.

       

      (d)
        Guarantor does not have any deposit accounts as of the date hereof, except
        as
        set forth in the Schedule to the Parent Loan Agreement. Guarantor shall not,
        directly or indirectly, after the date hereof open, establish or maintain
        any
        deposit account unless each of the following conditions is satisfied: (i)
        Lender
        shall have received not less than ten (10) Business Days prior written notice
        of
        the intention of Guarantor to open or establish such account which notice
        shall
        specify in reasonable detail and specificity acceptable to Lender the name
        of
        the account, the owner of the account, the name and address of the bank at
        which
        such account is to be opened or established, the individual at such bank
        with
        whom such Guarantor is dealing and the purpose of the account (ii) the bank
        where such account is opened or maintained shall be acceptable to Lender
        and
        (iii) on or before the opening of such deposit account, Guarantor shall as
        Lender may specify, either (A) deliver to Lender a Deposit Account Control
        Agreement with respect to such deposit account duly authorized, executed
        and
        delivered by Guarantor and the bank at which such deposit account is opened
        and
        maintained or (B) arrange for Lender to become the customer of the bank with
        respect to the deposit account on terms and conditions acceptable to Lender.
        The
        terms of this subsection (d) shall not apply to deposit accounts specifically
        and exclusively used for payroll, payroll taxes and other employee wage and
        benefit payments to or for the benefit of Guarantor’s salaried
        employees.

      

      (e)
        Guarantor does not own or hold, directly or indirectly, beneficially or as
        record owner or both, any investment property, as of the date hereof, or
        have
        any investment account, securities account, commodity account or other similar
        account with any bank or other financial institution or other securities
        intermediary or commodity intermediary as of the date hereof, in each case
        except as set forth in the Schedules to the Parent Loan Agreement.

      

      
        
          
          

        

        
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      (i)
        In
        the event that Guarantor shall be entitled to or shall at any time after
        the
        date hereof hold or acquire any certificated securities, Guarantor shall
        promptly endorse, assign and deliver the same to Lender, accompanied by such
        instruments of transfer or assignment duly executed in blank as Lender may
        from
        time to time specify. If any securities now owned or hereafter acquired by
        Guarantor are uncertificated and are issued to Guarantor or its nominee directly
        by the issuer thereof, Guarantor shall immediately notify Lender thereof
        and
        shall as Lender may specify, either (A) cause the issuer to agree to comply
        with
        instructions from Lender as to such securities, without further consent of
        Guarantor or such nominee, or (B) arrange for Lender to become the registered
        owner of the securities.

       

      (ii)
        Guarantor shall not, directly or indirectly, after the date hereof open,
        establish or maintain any investment account, securities account, commodity
        account or any other similar account (other than a deposit account) with
        any
        securities intermediary or commodity intermediary unless each of the following
        conditions is satisfied: (A) Lender shall have received not less then ten
        (10)
        Business Days prior written notice of the intention of Guarantor to open
        or
        establish such account which notice shall specify in reasonable detail and
        specificity acceptable to Lender the name of the account, the owner of the
        account, the name and address of the securities intermediary or commodity
        intermediary at which such account is to be opened or established, the
        individual at such intermediary with whom Guarantor is dealing and the purpose
        of the account, (B) the securities intermediary or commodity intermediary
        (as
        the case may be) where such account is opened or maintained shall be acceptable
        to Lender, and (C) on or before the opening of such investment account,
        securities account or other similar account with a securities intermediary
        or
        commodity intermediary, Guarantor shall as Lender may specify either (1)
        execute
        and deliver, and cause to be executed and delivered to Lender, a Pledge
        Agreement and an Investment Property Control Agreement with respect thereto
        duly
        authorized, executed and delivered by such Guarantor and such securities
        intermediary or commodity intermediary or (2) arrange for Lender to become
        the
        entitlement holder with respect so such investment property on terms and
        conditions acceptable to Lender.

      

      (f)
        Guarantor is not the beneficiary or otherwise entitled to any right to payment
        under any letter of credit, banker’s acceptance or similar instrument as of the
        date hereof. In the event that Guarantor shall be entitled to or shall receive
        any right to payment under any letter of credit, banker’s acceptance or any
        similar instrument, whether as beneficiary thereof or otherwise after the
        date
        hereof, Guarantor shall promptly notify Lender thereof in writing. Guarantor
        shall immediately, as Lender may specify, either (i) deliver, or cause to
        be
        delivered to Lender with respect to any such letter of credit, banker’s
        acceptance or similar instrument, the written agreement of the issuer and
        any
        other nominated person obligated to make any payment in respect thereof
        (including any confirming or negotiating bank), in form and substance
        satisfactory to Lender, consenting to the assignment of the proceeds of the
        letter of credit to Lender by such Guarantor and agreeing to make all payments
        thereon directly to Lender or as lender may otherwise direct or (ii) cause
        Lender to become, at such Guarantor’s expense, the transferee beneficiary of the
        letter of credit, banker’s acceptance or similar instrument (as the case may
        be).

      

      
        
          
          

        

        
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      (g)
        Guarantor does not have any commercial tort claims as of the date hereof.
        In the
        event that Guarantor shall at any time after the date hereof have any commercial
        tort claims, Guarantor shall promptly notify Lender thereof in writing, which
        notice shall (i) set forth in reasonable detail the basis for and nature
        of such
        commercial tort claim and (ii) include the express grant by Guarantor to
        Lender
        of a security interest in such commercial tort claim (and the proceeds thereof).
        In the event that such notice does not include such grant of a security
        interest, the sending thereof by Guarantor to Lender shall be deemed to
        constitute such grant to Lender. Upon the sending of such notice, any commercial
        tort claim described therein shall constitute part of the Collateral and
        shall
        be deemed included therein. Without limiting the authorization of Lender
        provided in Section 2.2(a) hereof or otherwise arising by the execution by
        such
        Guarantor of this Agreement or any of the other Financing Agreements, Lender
        is
        hereby irrevocably authorized from time to time and at any time to file such
        financing statements naming Lender or its designee as secured party and
        Guarantor as debtors, or any amendments to any financing statements, covering
        any such commercial tort claim as Collateral. In addition, Guarantor shall
        promptly upon Lender’s request, execute and deliver, or cause to be executed and
        delivered, to Lender such other agreements, documents and instruments as
        Lender
        may require in connection with such commercial tort claim.

       

      (h)
        Guarantor does not have any goods, documents of title or other Collateral
        in the
        custody, control or possession of a third party as of the date hereof, except
        as
        set forth on the Schedules to the Parent Loan Agreement and except for goods
        located in the United States in transit to a location of Guarantor permitted
        herein in the ordinary course of business of Guarantor in the possession
        of the
        carrier transporting such goods. In the event that any goods, documents of
        title
        or other collateral are at any time after the date hereof in the custody,
        control or possession of any other person not referred to in the Schedules
        to
        the Parent Loan Agreement or such carriers, Guarantor shall promptly notify
        Lender thereof in writing. Promptly upon Lender’s request, Guarantor shall
        deliver to Lender a Collateral Access Agreement duly authorized, executed
        and
        delivered by such person and the Guarantor.

      

      (i)
        Guarantor shall take any other actions reasonably requested by Lender from
        time
        to time to cause the attachment, perfection and first priority of, and the
        ability of Lender to enforce, the security interest of Lender in any and
        all of
        the Collateral, including, without limitation, (i) executing, delivering
        and,
        where appropriate, filing, financing statements and other instruments and
        amendments relating thereto under the UCC or other applicable law, to the
        extent, if any, Guarantor’s signature thereon is required therefor, (ii) causing
        Lender’s name to be noted as secured party on any certificate of title for a
        titled good if such notation is a condition to attachment, perfection or
        priority of, or ability of Lender to enforce, the security interest of Lender
        in
        such Collateral, (iii) complying with any provision of any statute, regulation
        or treaty of the United State and England as to any Collateral if compliance
        with such provision is a condition to attachment, perfection or priority
        of, or
        ability of Lender to enforce, the security interest of Lender in such
        Collateral, (iv) obtaining the consents and approvals of any Governmental
        Authority or third party, including, without limitation, any consent of any
        licensor, lessor or other person obligated on Collateral, and taking all
        actions
        required by any earlier versions of the UCC or by other law, as applicable
        in
        any relevant jurisdiction.

      

      
        
          
          

        

        
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      SECTION
        3.  COLLATERAL
        COVENANTS

      

      3.1  Accounts
        Covenants.

      

      (a)  Lender
        shall have the right at any time or times, in Lender's name or in the name
        of a
        nominee of Lender, to verify the validity, amount or any other matter relating
        to any Account or other Receivable or other Collateral, by mail, telephone,
        facsimile transmission or otherwise.

      

      (b)  Guarantor
        shall deliver or cause to be delivered to Lender, with appropriate endorsement
        and assignment, with full recourse to Guarantor, all chattel paper and
        instruments which Guarantor now owns or may at any time acquire immediately
        upon
        Guarantor's receipt thereof, except as Lender may otherwise agree.

       

      (c)  Lender
        may, at any time or times that an Event of Default exists or has occurred
        and is
        continuing, (i) notify any or all account debtors that the Accounts or other
        Receivables have been assigned to Lender and that Lender has a security interest
        therein and Lender may direct any or all accounts debtors to make payment
        of
        Accounts on other Receivables directly to Lender, (ii) extend the time of
        payment of, compromise, settle or adjust for cash, credit, return of merchandise
        or otherwise, and upon any terms or conditions, any and all Accounts or other
        Receivables or other obligations included in the Collateral and thereby
        discharge or release the account debtor or any other party or parties in
        any way
        liable for payment thereof without affecting any of the Obligations, (iii)
        demand, collect or enforce payment of any Accounts or other Receivables or
        such
        other obligations, but without any duty to do so, and Lender shall not be
        liable
        for its failure to collect or enforce the payment thereof nor for the negligence
        of its agents or attorneys with respect thereto and (iv) take whatever other
        action Lender may in good faith deem necessary or desirable for the protection
        of its interests. At any time that an Event of Default exists or has occurred
        and is continuing, at Lender's request, all invoices and statements sent
        to any
        account debtor shall state that the Accounts or other Receivables and such
        other
        obligations have been assigned to Lender and are payable directly and only
        to
        Lender and Guarantor shall deliver to Lender such originals of documents
        evidencing the sale and delivery of goods or the performance of services
        giving
        rise to any Accounts or other Receivables as Lender may require. 

      

      
        
          
          

        

        
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      3.2  Inventory
        Covenants.
        With
        respect to the Inventory: (a) Guarantor shall at all times maintain inventory
        records reasonably satisfactory to Lender, keeping correct and accurate records
        itemizing and describing the kind, type, quality and quantity of Inventory,
        Guarantor’s cost therefor and daily withdrawals there from and additions
        thereto; (b) Guarantor shall conduct a physical count of the Inventory at
        least
        once each year, but at any time or times as Lender may request on or after
        an
        Event of Default, and promptly following such physical inventory shall supply
        Lender with a report in the form and with such specificity as may be reasonably
        satisfactory to Lender concerning such physical count; (c) Guarantor shall
        not
        remove any Inventory from the locations set forth or permitted herein, without
        the prior written consent of Lender, except for sales of Inventory in the
        ordinary course of Guarantor's business and except to move Inventory directly
        from one location set forth or permitted herein to another such location;
        (d)
        upon Lender's request, Guarantor shall, at its expense, no more than four
        (4)
        times in any twelve (12) month period, but at any time or times as Lender
        may
        request on or after an Event of Default, deliver or cause to be delivered
        to
        Lender written reports or appraisals as to the Inventory in form, scope and
        methodology acceptable to Lender and by an appraiser acceptable to Lender,
        addressed to Lender or upon which Lender is expressly permitted to rely;
        (e)
        Guarantor shall produce, use, store and maintain the Inventory, with all
        reasonable care and caution and in accordance with applicable standards of
        any
        insurance and in conformity with applicable laws (including the requirements
        of
        the Federal Fair Labor Standards Act of 1938, as amended and all rules,
        regulations and orders related thereto); (f) Guarantor assumes all
        responsibility and liability arising from or relating to the production,
        use,
        sale or other disposition of the Inventory; (g) except in the ordinary course
        of
        business and then only on prompt reporting thereof to Lender Guarantor shall
        not
        sell Inventory to any customer on approval, or any other basis which entitles
        the customer to return or may obligate Guarantor to repurchase such Inventory;
        (h) Guarantor shall keep the Inventory in good and marketable condition,
        subject
        to normal deterioration of produce, deli and bakery food products, expired
        foods, and products with short expiration dates or shelf-life; and (i) except
        in
        the ordinary course of business and then only on prompt report thereof to
        Lender, Guarantor shall not, without prior written notice to Lender, acquire
        or
        accept any Inventory on consignment or approval. 

       

      3.3  Equipment
        Covenants.
        With
        respect to the Equipment: (a) upon Lender's request, Guarantor shall, at
        its
        expense, at any time or times as Lender may request on or after an Event
        of
        Default, deliver or cause to be delivered to Lender written reports or
        appraisals as to the Equipment in form, scope and methodology acceptable
        to
        Lender and by an appraiser acceptable to Lender; (b) Guarantor shall keep
        the
        Equipment in good order, repair, running and marketable condition (ordinary
        wear
        and tear excepted); (c) Guarantor shall use the Equipment with all reasonable
        care and caution and in accordance with applicable standards of any insurance
        and in conformity with all applicable laws; (d) the Equipment is and shall
        be
        used in Guarantor's business and not for personal, family, household or farming
        use; (e) Guarantor shall not remove any Equipment from the locations set
        forth
        or permitted herein, except to the extent necessary to have any Equipment
        repaired or maintained in the ordinary course of the business of Guarantor
        or to
        move Equipment directly from one location set forth or permitted herein to
        another such location and except for the movement of motor vehicles used
        by or
        for the benefit of Guarantor in the ordinary course of business; (f) the
        Equipment is now and shall remain personal property and Guarantor shall not
        permit any of the Equipment to be or become a part of or permanently affixed
        to
        real property; and (g) Guarantor assumes all responsibility and liability
        arising from the use of the Equipment.

      

      3.4  Power
        of Attorney.
        Guarantor hereby irrevocably designates and appoints Lender (and all persons
        designated by Lender) as Guarantor's true and lawful attorney-in-fact, and
        authorizes Lender, in Guarantor's or Lender's name, to: (a) at any time an
        Event
        of Default or event which with notice or passage of time or both would
        constitute an Event of Default exists or has occurred and is continuing (i)
        demand payment on Accounts or other Receivables or other proceeds of Inventory
        or other Collateral, (ii) enforce payment of Accounts or other Receivables
        by
        legal proceedings or otherwise, (iii) exercise all of Guarantor's rights
        and
        remedies to collect any Account or other Receivables or other Collateral,
        (iv)
        sell or assign any Account or other Receivable upon such terms, for such
        amount
        and at such time or times as the Lender deems advisable, (v) settle, adjust,
        compromise, extend or renew an Account or other Receivable (vi) discharge
        and
        release any Account or other Receivable , (vii) prepare, file and sign
        Guarantor's name on any proof of claim in bankruptcy or other similar document
        against an account debtor, (viii) notify the post office authorities to change
        the address for delivery of Guarantor's mail to an address designated by
        Lender,
        and open and dispose of all mail addressed to any Guarantor, and (ix) do
        all
        acts and things which are necessary, in Lender's determination, to fulfill
        Guarantor’s obligations under this 

       

      
        
          
          

        

        
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      Agreement
        and the other Financing Agreements and (b) at any time to (i) take control
        in
        any manner of any item of payment or proceeds thereof, (ii) have access to
        any
        lockbox or postal box into which Guarantor's mail is deposited, (iii) endorse
        Guarantor's name upon any items of payment or proceeds thereof and deposit
        the
        same in the Lender's account for application to the Obligations, (iv) endorse
        Guarantor's name upon any chattel paper, document, instrument, invoice, or
        similar document or agreement relating to any Account or any goods pertaining
        thereto or any other Collateral, (v) sign Guarantor's name on any verification
        of Accounts or other Receivables and notices thereof to account debtors and
        (vi)
        execute in Guarantor's name and file any UCC financing statements or amendments
        thereto. Guarantor hereby releases Lender and its officers, employees and
        designees from any liabilities arising from any act or acts under this power
        of
        attorney and in furtherance thereof, whether of omission or commission, except
        as a result of Lender's own gross negligence or willful misconduct as determined
        pursuant to a final non-appealable order of a court of competent jurisdiction.
        This power of attorney is coupled with an interest and is
        irrevocable.

      

      3.5  Right
        to Cure.
        Lender
        may, at its option, (a) cure any default by Guarantor under any agreement
        with a
        third party or pay or bond on appeal any judgment entered against Guarantor,
        (b)
        discharge taxes, liens, security interests or other encumbrances at any time
        levied on or existing with respect to the Collateral and (c) pay any amount,
        incur any expense or perform any act which, in Lender's judgment, is necessary
        or appropriate to preserve, protect, insure or maintain the Collateral and
        the
        rights of Lender with respect thereto. Lender may add any amounts so expended
        to
        the Obligations and charge Guarantor's account therefor, such amounts to
        be
        repayable by Guarantor on demand. Lender shall be under no obligation to
        effect
        such cure, payment or bonding and shall not, by doing so, be deemed to have
        assumed any obligation or liability of Guarantor. Any payment made or other
        action taken by Lender under this Section shall be without prejudice to any
        right to assert an Event of Default hereunder and to proceed
        accordingly.

       

      3.6  Access
        to Premises.
        From
        time to time as requested by Lender, at the cost and expense of Guarantor
        (a)
        Lender or its designee shall have complete access to all of each premises
        during
        normal business hours and after notice to Guarantor, or at any time and without
        notice to Guarantor if an Event of Default exists or has occurred and is
        continuing, for the purposes of inspecting, verifying and auditing the
        Collateral and all of Guarantor's books and records, including the Records,
        and
        (b) Guarantor shall promptly furnish to Lender such copies of such books
        and
        records or extracts there from as Lender may request, and (c) use during
        normal
        business hours such of Guarantor's personnel, equipment, supplies and premises
        as may be reasonably necessary for the foregoing and if an Event of Default
        exists or has occurred and is continuing for the collection of Accounts and
        other Receivables and realization of other Collateral.

       

      
        
          
          

        

        
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      SECTION
        4. REPRESENTATIONS
        AND WARRANTIES; COVENANTS.

      

      Guarantor
        hereby represents and warrants to, and covenant with, Lender the following
        (which shall survive the execution and delivery of this Agreement):

      

      4.1  Corporate
        Existence, Power and Authority; Subsidiaries.
        Inyx is
        a corporation duly organized and in good standing under the laws of Nevada,
        Inyx
        USA is a corporation duly organized and in good standing under the laws of
        the
        Isle Of Man and Inyx Pharma is a corporation duly organized and existing
        under
        the laws of England and each is duly qualified as a foreign corporation or
        partnership and in good standing in all states or other jurisdictions where
        the
        nature and extent of the business transacted by it or the ownership of assets
        makes such qualification necessary, except for those jurisdictions in which
        the
        failure to so qualify would not have a material adverse effect on Guarantor's
        financial condition, results of operation or business or the rights of Lender
        in
        or to any of the Collateral. The execution, delivery and performance of this
        Agreement, the other Financing Agreements and the transactions contemplated
        hereunder and thereunder are all within Guarantor’s corporate powers have been
        duly authorized and are not in contravention of law or the terms of Guarantor's
        certificate of incorporation, by-laws, or other organizational documentation,
        or
        any indenture, agreement or undertaking to which any Guarantor is a party
        or by
        which Guarantor or its property are bound. This Agreement and the other
        Financing Agreements constitute legal, valid and binding obligations of
        Guarantor enforceable in accordance with their respective terms. Guarantor
        has
        no subsidiaries except as set forth on the Schedules to the Parent Loan
        Agreement.

      

      4.2  Financial
        Statements; No Material Adverse Change.
        All
        financial statements relating to Guarantor which have been or may hereafter
        be
        delivered by Guarantor to Lender have been prepared in accordance with GAAP
        and
        fairly present the financial condition and the results of operation of Guarantor
        as at the dates and for the periods set forth therein. Except as disclosed
        in
        any interim financial statements furnished by Guarantor to Lender prior to
        the
        date hereof, there has been no material adverse change in the assets,
        liabilities, properties and condition, financial or otherwise, of Guarantor,
        since the date of the most recent audited financial statements furnished
        by
        Guarantor to Lender prior to the date hereof. 

      

      4.3  Chief
        Executive Office; Collateral Locations.
        The
        chief executive office of Guarantor and Guarantor’s Records concerning Accounts
        are located only at the address set forth below and only other places of
        business and the only other locations of Collateral, if any, are the addresses
        set forth in the Information Certificate, subject to the right of Guarantors
        to
        establish new locations in accordance with Section 5.2 below. The Information
        Certificate correctly identifies any of such locations which are not owned
        by
        Guarantor and sets forth the owners and/or operators thereof, and to the
        best of
        Guarantors’ knowledge, the holders of any mortgages on such
        locations.

      

      
        
          
          

        

        
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      4.4  Priority
        of Liens; Title to Properties.
        The
        security interests and liens granted to Lender under this Agreement and the
        other Financing Agreements constitute valid and perfected first priority
        liens
        and security interests in and upon the Collateral subject only to the liens
        indicated on the Schedules to the Parent Loan Agreement and the other liens
        permitted under Section 5.8 hereof. Guarantor has good and marketable title
        to
        all of its properties and assets subject to no liens, mortgages, pledges,
        security interests, encumbrances or charges of any kind, except those granted
        to
        Lender and such others as are specifically listed on the Schedules to the
        Parent
        Loan Agreement or permitted under Section 5.8 hereof.

       

      4.5  Tax
        Returns.
        Guarantor has filed, or caused to be filed, in a timely manner all tax returns,
        reports and declarations which are required to be filed by it (without requests
        for extension except as previously disclosed in writing to Lender). All
        information in such tax returns, reports and declarations is complete and
        accurate in all material respects. Guarantor has paid or caused to be paid
        all
        taxes due and payable or claimed due and payable in any assessment received
        by
        it, except taxes the validity of which are being contested in good faith
        by
        appropriate proceedings diligently pursued and available to Guarantor and
        with
        respect to which adequate reserves have been set aside on its books. Adequate
        provision has been made for the payment of all accrued and unpaid Federal,
        State, county, local, foreign and other taxes whether or not yet due and
        payable
        and whether or not disputed.

      

      4.6  Litigation.
        Except
        as set forth on the Information Certificate, there is no present investigation
        by any governmental agency pending, or to the best of Guarantor’s knowledge
        threatened, against or affecting Guarantor, its assets or business and there
        is
        no action, suit, proceeding or claim by any Person pending, or to the best
        of
        Guarantor’s knowledge threatened, against Guarantor or its assets or goodwill,
        or against or affecting any transactions contemplated by this Agreement,
        which
        if adversely determined against Guarantor would result in any material adverse
        change in the assets, business or prospects of Guarantor or which would impair
        the ability of Guarantor to perform its obligations hereunder or under any
        of
        the other Financing Agreements to which it is a party or of Lender to enforce
        the Obligations or realize upon any Collateral.

      

      4.7  Compliance
        with Other Agreements and Applicable Laws.
        Guarantor is not in default in any material respect under, or in violation
        in
        any material respect of any of the terms of, any agreement, contract,
        instrument, lease or other commitment to which it is a party or by which
        it or
        any of its assets are bound and Guarantor is in compliance in all material
        respects with all applicable provisions of laws, rules, regulations, licenses,
        permits, approvals and orders of any foreign, Federal, State or local
        governmental authority.

      

      4.8
        Bank
        Accounts.
        All of
        the deposit accounts, investment accounts or other accounts in the name of
        or
        used by Guarantor maintained at any bank or other financial institution are
        set
        forth on the Schedules to the Parent Loan Agreement.

      

      
        
          
          

        

        
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      4.9  Accuracy
        and Completeness of Information.
        All
        information furnished by or on behalf of Guarantor in writing to Lender in
        connection with this Agreement or any of the other Financing Agreements or
        any
        transaction contemplated hereby or thereby, including all information on
        the
        Information Certificate is true and correct in all material respects on the
        date
        as of which such information is dated or certified and does not omit any
        material fact necessary in order to make such information not misleading.
        No
        event or circumstance has occurred which has had or could reasonably be expected
        to have a material adverse affect on the business, assets or prospects of
        Guarantor, which has not been fully and accurately disclosed to Lender in
        writing.

       

      4.10  Survival
        of Warranties; Cumulative.
        All
        representations and warranties contained in this Agreement or any of the
        other
        Financing Agreements shall survive the execution and delivery of this Agreement
        and shall be deemed to have been made again to Lender on the date of each
        additional borrowing or other credit accommodation under the Loan Agreement
        and
        shall be conclusively presumed to have been relied on by Lender regardless
        of
        any investigation made or information possessed by Lender. The representations
        and warranties set forth herein shall be cumulative and in addition to any
        other
        representations or warranties which Guarantor shall now or hereafter give,
        or
        cause to be given, to Lender

      

      SECTION
        5. AFFIRMATIVE
        AND NEGATIVE COVENANTS

      

      5.1  Maintenance
        of Existence.
        Guarantor shall at all times preserve, renew and keep in full, force and
        effect
        its corporate or other existence and rights and franchises with respect thereto
        and Guarantor shall maintain in full force and effect all of its permits,
        licenses, trademarks, trade names, approvals, authorizations, leases and
        contracts necessary to carry on its business as presently or proposed to
        be
        conducted. Guarantor shall give Lender thirty (30) days prior written notice
        of
        any proposed change in its corporate or other name, which notice shall set
        forth
        the new name and Guarantor shall deliver to Lender a copy of the amendment
        to
        the Certificate of Incorporation of Guarantor or other instrument providing
        for
        the name change certified by the Secretary of State or other authenticating
        official of the jurisdiction of incorporation or constitution of Guarantor
        as
        soon as it is available.

      

      5.2  New
        Collateral Locations.
        Guarantor may open any new location within Puerto Rico and Inyx Pharma may
        open
        any new location within England provided Guarantor (a) gives Lender thirty
        (30)
        days prior written notice of the intended opening of any such new location
        and
        (b) executes and delivers, or causes to be executed and delivered, to Lender
        such agreements, documents, and instruments as Lender may deem reasonably
        necessary or desirable to protect its interests in the Collateral at such
        location, including UCC financing statements.

      

      5.3  Compliance
        with Laws, Regulations, Etc.
        Guarantor shall, at all times, comply in all material respects with all laws,
        rules, regulations, licenses, permits, approvals and orders of any Federal,
        State or local governmental authority applicable to it.

      

      
        
          
          

        

        
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      5.4  Payment
        of Taxes and Claims.
        Guarantor shall duly pay and discharge all taxes, assessments, contributions
        and
        governmental charges upon or against it or its properties or assets, except
        for
        taxes the validity of which are being contested in good faith by appropriate
        proceedings diligently pursued and available to Guarantor and with respect
        to
        which adequate reserves have been set aside on its books. Guarantor shall
        be
        liable for any tax or penalties imposed on Lender as a result of the financing
        arrangements provided for herein and Guarantor agrees to indemnify and hold
        Lender harmless with respect to the foregoing, and to repay to Lender on
        demand
        the amount thereof, and until paid by Guarantor such amount shall be added
        and
        deemed part of the Loans, provided,
        that,
        nothing
        contained herein shall be construed to require Guarantor to pay any income
        or
        franchise taxes attributable to the income of Lender from any amounts charged
        or
        paid hereunder to Lender. The foregoing indemnity shall survive the payment
        of
        the Obligations, the termination of this Agreement and the termination or
        non-renewal of the Loan Agreement.

       

      5.5  Insurance.
        Guarantor shall, at all times, maintain with financially sound and reputable
        insurers insurance with respect to the Collateral against loss or damage
        and all
        other insurance of the kinds and in the amounts customarily insured against
        or
        carried by corporations of established reputation engaged in the same or
        similar
        businesses and similarly situated. Said policies of insurance shall be
        satisfactory to Lender as to form, amount and insurer. Guarantor shall furnish
        certificates, policies or endorsements to Lender as Lender shall require
        as
        proof of such insurance, and, if Guarantor fails to do so, Lender is authorized,
        but not required, to obtain such insurance at the expense of Guarantor. All
        policies shall provide for at least thirty (30) days prior written notice
        to
        Lender of any cancellation or reduction of coverage and that Lender may act
        as
        attorney for Guarantor in obtaining, and at any time an Event of Default
        exists
        or has occurred and is continuing, adjusting, settling, amending and canceling
        such insurance. Guarantor shall cause Lender to be named as a loss payee
        and an
        additional insured (but without any liability for any premiums) under such
        insurance policies and Guarantor shall obtain non-contributory lender's loss
        payable endorsements to all insurance policies in form and substance
        satisfactory to Lender. Such lender's loss payable endorsements shall specify
        that the proceeds of such insurance shall be payable to Lender as its interests
        may appear and further specify that Lender shall be paid regardless of any
        act
        or omission by Guarantor or any of its affiliates. At its option, Lender
        may
        apply any insurance proceeds received by Lender at any time to the cost of
        repairs or replacement of Collateral and/or to payment of the Obligations,
        whether or not then due, in any order and in such manner as Lender may determine
        or hold such proceeds as cash collateral for the Obligations

      

      5.6
        Certain
        Information.
        

      

      (a) 
        Guarantor shall promptly notify Lender in writing of the details of (i) any
        loss, damage, investigation, action, suit, proceeding or claim relating to
        the
        Collateral or any other property which is security for the Obligations or
        which
        would result in any material adverse change in Guarantor's business, properties,
        assets, goodwill or condition, financial or otherwise and (ii) the occurrence
        of
        any Event of Default or event which, with the passage of time or giving of
        notice or both, would constitute an Event of Default.

      

      
        
          
          

        

        
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      (b)  Guarantor
        shall promptly after the sending or filing thereof furnish or cause to be
        furnished to Lender copies of all reports which Guarantor sends to its
        stockholders generally and copies of all reports and registration statements
        which Guarantor files with the Securities and Exchange Commission, any national
        securities exchange or the National Association of Securities Dealers,
        Inc.

      

      (c)  Guarantor
        shall furnish or cause to be furnished to Lender such budgets, forecasts,
        projections and other information respecting the Collateral and the business
        of
        Guarantor, as Lender may, from time to time, reasonably request. Lender is
        hereby authorized to deliver a copy of any financial statement or any other
        information relating to the business of Guarantor to any court or other
        government agency or to any participant or assignee or prospective participant
        or assignee. Guarantor hereby irrevocably authorizes and directs all accountants
        or auditors to deliver to Lender, at Guarantor's expense, copies of the
        financial statements of Guarantor and any reports or management letters prepared
        by such accountants or auditors on behalf of Guarantor and to disclose to
        Lender
        such information as they may have regarding the business of Guarantor. Any
        documents, schedules, invoices or other papers delivered to Lender may be
        destroyed or otherwise disposed of by Lender one (1) year after the same
        are
        delivered to Lender, except as otherwise designated by Guarantor to Lender
        in
        writing. 

       

      5.7  Sale
        of Assets, Consolidation, Merger, Dissolution, Etc.
        Guarantor shall not, directly or indirectly, (a) merge into or with or
        consolidate with any other Person or permit any other Person to merge into
        or
        with or consolidate with it, or (b) sell, assign, lease, transfer, abandon
        or
        otherwise dispose of any stock or indebtedness to any other Person or any
        of its
        assets to any other Person (except for (i) sales of Inventory in the ordinary
        course of business and (ii) the disposition of worn-out or obsolete Equipment
        or
        Equipment no longer used in the business of Guarantor so long as (A) if an
        Event
        of Default exists or has occurred and is continuing, any proceeds are paid
        to
        Lender and (B) such sales do not involve Equipment having an aggregate fair
        market value in excess of $25,000 for all such Equipment disposed of in any
        fiscal year of Guarantor, or (c) form or acquire any subsidiaries, or (d)
        wind
        up, liquidate or dissolve or (e) agree to do any of the foregoing.

      

      5.8  Encumbrances.
        Guarantor shall not create, incur, assume or suffer to exist any security
        interest, mortgage, pledge, lien, charge or other encumbrance of any nature
        whatsoever on any of its assets or properties, including the Collateral,
        except:
        (a)
        liens and security interests of Lender; (b) liens securing the payment of
        taxes,
        either not yet overdue or the validity of which are being contested in good
        faith by appropriate proceedings diligently pursued and available to Guarantor
        and with respect to which adequate reserves have been set aside on its books;
        (c) non-consensual statutory liens (other than liens securing the payment
        of
        taxes) arising in the ordinary course of such Guarantor's business to the
        extent: (i) such liens secure indebtedness which is not overdue or (ii) such
        liens secure indebtedness relating to claims or liabilities which are fully
        insured and being defended at the sole cost and expense and at the sole risk
        of
        the insurer or being contested in good faith by appropriate proceedings
        diligently pursued and available to such Guarantor, in each case prior to
        the
        commencement of foreclosure or other similar proceedings and with respect
        to
        which adequate reserves have been set aside on its books; (d) zoning
        restrictions, easements, licenses, covenants and other restrictions affecting
        the use of real property which do not interfere in any material respect with
        the
        use of such real property or ordinary conduct of the business of such Guarantor
        as presently conducted thereon or materially impair the value of the real
        property which may be subject thereto; (e) purchase money security interests
        in
        Equipment (including capital leases) and purchase money mortgages on real
        estate
        not to exceed $50,000 in the aggregate at any time outstanding so long as
        such
        security interests and mortgages do not apply to any property of any Guarantor
        other than the Equipment or real estate so acquired, and the indebtedness
        secured thereby does not exceed the cost of the Equipment or real estate
        so
        acquired, as the case may be; and (f) the security interests and liens, if
        any,
        that may be consented to by Lender, in writing, pursuant to the Parent Loan
        Agreement. 

      

      
        
          
          

        

        
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      5.9  Indebtedness.
        Guarantor shall not incur, create, assume, become or be liable in any manner
        with respect to, or permit to exist, any obligations or indebtedness,
except
        (a) the
        Obligations; (b) trade accounts payable and other trade obligations and normal
        accruals in the ordinary course of business not yet due and payable, or with
        respect to which the Guarantor is contesting in good faith the amount or
        validity thereof by appropriate proceedings diligently pursued and available
        to
        Guarantor, and with respect to which adequate reserves have been set aside
        on
        its books; (c) purchase money indebtedness (including capital leases) to
        the
        extent not incurred or secured by liens (including capital leases) in violation
        of any other provision of this Agreement; (d) unsecured indebtedness of
        Guarantor for borrowed money incurred after the date hereof, owing to any
        Person
        other than any shareholder, officer, director, agent, employee or Affiliate
        of
        Guarantor, on commercially reasonable rates and terms pursuant to an arm's
        length transaction; provided,
        that,
        (i)
        Lender shall have received not less than five (5) business days prior written
        notice of the intention to incur such indebtedness, which notice shall set
        forth
        in reasonable detail satisfactory to Lender, the amount of such indebtedness,
        the person to whom such indebtedness will be owed, the interest rate, the
        schedule of repayments and maturity date with respect thereto and such other
        information as Lender may reasonably request with respect thereto, (ii) Lender
        shall have received true, correct and complete copies of all agreements,
        documents and instruments evidencing or otherwise related to such indebtedness,
        (iii) the aggregate amount of such indebtedness of Guarantor and its
        Subsidiaries on a consolidated basis, at any time outstanding, shall not
        exceed
        $250,000, (iv) on and before the date of incurring such indebtedness and
        after
        giving effect thereto, no Event of Default, or event which with the giving
        notice or the passage of time or both would constitute an Event of Default,
        shall exist or have occurred and be continuing, (v) Guarantor may only make
        regularly scheduled payments of principal and interest in respect of such
        indebtedness in accordance with the terms of the agreement or instrument
        evidencing or giving rise to such indebtedness as in effect on the date of
        the
        execution thereof, and (vi) Guarantor shall not, directly or indirectly,
        (A)
        make any prepayments or other non-mandatory payments in respect of such
        indebtedness, or (B) amend, modify, alter or change the terms of such
        indebtedness or any agreement, document or instrument related thereto, or
        (C)
        redeem, retire, defease, purchase or otherwise acquire such indebtedness,
        or set
        aside or otherwise deposit or invest any sums for such purpose, and (vii)
        Guarantor shall furnish to Lender all notices, demands or other materials
        in
        connection with such indebtedness either received by guarantor or on its
        behalf,
        promptly after the receipt thereof, or sent by Guarantor or on its behalf,
        concurrently with the sending thereof, as the case may be; and (e) indebtedness
        of Guarantor described on the Schedules to the Parent Loan Agreement;
provided,
        that:
        (i) the
        individual principal amounts of such indebtedness and aggregate principal
        amounts of all such indebtedness shall not exceed the amounts shown on such
        Schedules less the aggregate amount of all repayments, repurchases or
        redemptions, whether optional or mandatory in respect thereof, plus interest
        thereon at the rate provided for in such agreement or instrument as in effect
        on
        the date hereof, (ii) Guarantor may only make regularly scheduled payments
        of
        principal and interest in respect of such indebtedness in accordance with
        the
        terms of the agreement or instrument evidencing or giving rise to such
        indebtedness and (iii) Guarantor shall not, directly or indirectly, (A) amend,
        modify, alter or change the terms of such indebtedness or any agreement,
        document or instrument related thereto or (B) redeem, retire, defease, purchase
        or otherwise acquire such indebtedness, or set aside or otherwise deposit
        or
        invest any sums for such purpose, and (iv) Guarantor shall furnish to Lender
        all
        notices or demands in connection with such indebtedness either received by
        any
        Guarantor or on its behalf, promptly after the receipt thereof, or sent by
        Guarantor or on its behalf, concurrently with the sending thereof, as the
        case
        may be and (e) indebtedness permitted by the Parent Financing
        Agreements.

      

      
        
          
          

        

        
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      5.10  Loans,
        Investments, Guarantees, Etc.
        Guarantor shall not, directly or indirectly, make any loans or advance money
        or
        property to any person, or invest in (by capital contribution, dividend or
        otherwise) or purchase or repurchase the stock or indebtedness or all or
        a
        substantial part of the assets or property of any person, or guarantee, assume,
        endorse, or otherwise become responsible for (directly or indirectly) the
        indebtedness, performance, obligations or dividends of any Person or agree
        to do
        any of the foregoing, except:
        (a) the
        endorsement of instruments for collection or deposit in the ordinary course
        of
        business; (b) investments in cash or Cash Equivalents; provided,
        that,
        as to
        any of the foregoing, unless waived in writing by Lender, such Guarantor
        shall
        take such actions as are deemed necessary by Lender to perfect the security
        interest of Lender in such investments, (c) the loans, advances and guarantees
        set forth on the Schedules to the Parent Loan Agreement; provided,
        that,
        as to
        such loans, advances and guarantees, (i) Guarantor shall not, directly
        or
        indirectly, (A) amend, modify, alter or change the terms of such loans, advances
        or guarantees or any agreement, document or instrument relating thereto,
        or (B)
        as to such guarantees, redeem, retire, defease, purchase or otherwise acquire
        the obligations arising pursuant to such guarantees, or set aside or otherwise
        deposit or invest any sums for such purpose, and (ii) Guarantor shall furnish
        to
        Lender all notices or demands in connection with such loans, advances or
        guarantees or other indebtedness subject to such guarantees either received
        by
        Guarantor or on its behalf, promptly after the receipt thereof, or sent by
        Guarantor or on its behalf, concurrently with the sending thereof, as the
        case
        may be, and (d) loans and advances not in excess of the amount of permitted
        under the Parent Loan Agreement; provided that,
        no such
        loan or advance shall be made to any Affiliate of Guarantor, except as permitted
        under the Parent Loan Agreement and (e) loans, advances and capital
        contributions to Borrower.

      

      5.11  Dividends
        and Redemptions.
        Guarantor shall not, directly or indirectly, declare or pay any dividends
        on
        account of any shares of any class of capital stock of Guarantor now or
        hereafter outstanding, or set aside or otherwise deposit or invest any sums
        for
        such purpose, or redeem, retire, defease, purchase or otherwise acquire any
        shares of any class of capital stock (or set aside or otherwise deposit or
        invest any sums for such purpose) for any consideration other than common
        stock
        or apply or set apart any sum, or make any other distribution (by reduction
        of
        capital or otherwise) in respect of any such shares or except as may be
        permitted by the Parent Loan Agreement, make any other Restricted Junior
        Payment, or agree to do any of the foregoing.

      

      
        
          
          

        

        
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      5.12  Transactions
        with Affiliates.
        Except
        as may be permitted by the Parent Loan Agreement, Guarantor shall not, directly
        or otherwise , (a) purchase, acquire or lease any property from, or sell,
        transfer or lease any property to, any officer, director, agent or other
        person
        affiliated with Guarantor, except in the ordinary course of and pursuant
        to the
        reasonable requirements of Guarantor's business and upon fair and reasonable
        terms no less favorable to Guarantor than Guarantor would obtain in a comparable
        arm's length transaction with an unaffiliated person or (b) make any payments
        of
        management, consulting or other fees for management or similar services,
        or of
        any indebtedness owing to any officer, employee, shareholder, director or
        other
        person affiliated with Guarantor except reasonable compensation to officers,
        employees and directors for services rendered to Guarantor in the ordinary
        course of business.

      

      5.13  Working
        Capital.
        Guarantor shall, at all times, maintain consolidated Working Capital as required
        by the Parent Loan Agreement.

      

      5.14  Adjusted
        Net Worth.
        Guarantor shall, at all times, maintain a consolidated Adjusted Net Worth
        as
        required by the Parent Loan Agreement .

      5.15  Costs
        and Expenses.
        Guarantor shall pay to Lender on demand all costs, expenses, filing fees
        and
        taxes paid or payable in connection with the preparation, negotiation,
        execution, delivery, recording, administration, collection, liquidation,
        enforcement and defense of the Obligations, Lender's rights in the Collateral,
        this Agreement, the other Financing Agreements and all other documents related
        hereto or thereto, including any amendments, supplements or consents which
        may
        hereafter be contemplated (whether or not executed) or entered into in respect
        hereof and thereof, including: (a) all costs and expenses of filing or recording
        (including Uniform Commercial Code financing statement filing taxes and fees,
        documentary taxes, intangibles taxes and mortgage recording taxes and fees,
        if
        applicable); (b) insurance premiums, appraisal fees and search fees; (c)
        costs
        and expenses of preserving and protecting the Collateral; (d) costs and expenses
        paid or incurred in connection with obtaining payment of the Obligations,
        enforcing the security interests and liens of Lender, selling or otherwise
        realizing upon the Collateral, and otherwise enforcing the provisions of
        this
        Agreement and the other Financing Agreements or defending any claims made
        or
        threatened against Lender arising out of the transactions contemplated hereby
        and thereby (including preparations for and consultations concerning any
        such
        matters); and (e) the fees and disbursements of counsel (including legal
        assistants) to Lender in connection with any of the foregoing.

      

      5.16  Further
        Assurances.
        At the
        request of Lender at any time and from time to time, Guarantor shall, at
        its
        expense, at any time or times duly execute and deliver, or cause to be duly
        executed and delivered, such further agreements, documents and instruments,
        and
        do or cause to be done such further acts as may be necessary or proper to
        evidence, perfect, maintain and enforce the liens and the security interests
        and
        the priority thereof in the Collateral and to otherwise effectuate the
        provisions or purposes of this Agreement or any of the other Financing
        Agreements. Where permitted by law, Guarantor hereby authorizes Lender to
        execute and file one or more UCC financing statements signed only by Lender.
        

      

      
        
          
          

        

        
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      SECTION
        6. EVENTS
        OF DEFAULT AND REMEDIES

      

      6.1  Events
        of Default.
        The
        occurrence or existence of any Event of Default under the Loan Agreement
        or
        under the Parent Loan Agreement is referred to herein individually as an
        "Event
        of Default" and collectively as "Events of Default".

       

      6.2  Remedies.

      (a)  At
        any time an Event of Default exists or has occurred and is continuing, Lender
        shall have all rights and remedies provided in this Agreement, the other
        Financing Agreements, the Parent Financing Agreement, the Uniform Commercial
        Code and other applicable law, all of which rights and remedies may be exercised
        without notice to or consent by Guarantor or any Obligor, except as such
        notice
        or consent is expressly provided for hereunder or required by applicable
        law.
        All rights, remedies and powers granted to Lender hereunder, under any of
        the
        other Financing Agreements, the Parent Financing Agreements, the Uniform
        Commercial Code or other applicable law, are cumulative, not exclusive and
        enforceable, in Lender's discretion, alternatively, successively, or
        concurrently on any one or more occasions, and shall include, without
        limitation, the right to apply to a court of equity for an injunction to
        restrain a breach or threatened breach by Guarantor of this Agreement, any
        of
        the other Financing Agreements or any of the Parent Financing Agreements.
        Lender
        may, at any time or times, proceed directly against Guarantor or any Obligor
        to
        collect the Obligations without prior recourse to the Collateral.

      

      (b)  Without
        limiting the foregoing, at any time an Event of Default exists or has occurred
        and is continuing, Lender may, in its discretion and without limitation,
        (i)
        accelerate the payment of all Obligations and demand immediate payment thereof
        to Lender; provided,
        that,
        upon
        the occurrence of any Event of Default described in Sections 10.1(g) and
        10.1(h)
        of the Loan Agreement, all Obligations shall automatically become immediately
        due and payable), (ii) with or without judicial process or the aid or assistance
        of others, enter upon any premises on or in which any of the Collateral may
        be
        located and take possession of the Collateral or complete processing,
        manufacturing and repair of all or any portion of the Collateral, (iii) require
        Guarantor, at Guarantor’s expense, to assemble and make available to Lender any
        part or all of the Collateral at any place and time designated by Lender,
        (iv)
        collect, foreclose, receive, appropriate, setoff and realize upon any and
        all
        Collateral, (v) remove any or all of the Collateral from any premises on
        or in
        which the same may be located for the purpose of effecting the sale, foreclosure
        or other disposition thereof or for any other purpose, (vi) sell, lease,
        transfer, assign, deliver or otherwise dispose of any and all Collateral
        (including entering into contracts with respect thereto, public or private
        sales
        at any exchange, broker's board, at any office of Lender or elsewhere) at
        such
        prices or terms as Lender may deem reasonable, for cash, upon credit or for
        future delivery, with the Lender having the right to purchase the whole or
        any
        part of the Collateral at any such public sale, all of the foregoing being
        free
        from any right or equity of redemption of Guarantor, which right or equity
        of
        redemption is hereby expressly waived and released by Guarantor. If any of
        the
        Collateral is sold or leased by Lender upon credit terms or for future delivery,
        the Obligations shall not be reduced as a result thereof until payment therefor
        is finally collected by Lender. If notice of disposition of Collateral is
        required by law, five (5) days prior notice by Lender to Guarantor designating
        the time and place of any public sale or the time after which any private
        sale
        or other intended disposition of Collateral is to be made, shall be deemed
        to be
        reasonable notice thereof and Guarantor waive any other notice. In the event
        Lender institutes an action to recover any Collateral or seeks recovery of
        any
        Collateral by way of prejudgment remedy, Guarantors waive the posting of
        any
        bond which might otherwise be required.

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      (c)  Lender
        may apply the cash proceeds of Collateral actually received by Lender from
        any
        sale, lease, foreclosure or other disposition of the Collateral to payment
        of
        the Obligations, in whole or in part and in such order as Lender may elect,
        whether or not then due. Guarantor shall remain liable to Lender for the
        payment
        of any deficiency with interest at the highest rate provided for in the Loan
        Agreement and all costs and expenses of collection or enforcement, including
        attorneys' fees and legal expenses.

      

      (d)
        For
        purposes of enabling Lender to exercise rights and remedies hereunder, Guarantor
        hereby grants to Lender, to the extent assignable, an irrevocable non-exclusive
        license (exercisable without payment of any royalty or other compensation
        to
        Guarantor) to use, assign or sublicense any of the trademarks, service-marks,
        trade names, business names, trade styles, designs, logos, and source of
        business identifiers and other Intellectual Property now owned or hereafter
        acquired by Guarantor, wherever the same may be located, including in such
        license reasonable access to all media in which any of the licensed items
        may be
        recorded or stored and to all computer programs used for the compilation
        or
        printout thereof.

      

      SECTION
        7. JURY TRIAL WAIVER; OTHER WAIVERS

       AND
        CONSENTS; GOVERNING LAW

      

      7.1  Governing
        Law; Choice of Forum; Service of Process; Jury Trial Waiver.

      

      (a)  The
        validity, interpretation and enforcement of this Agreement and the other
        Financing Agreements and any dispute arising out of the relationship between
        the
        parties hereto, whether in contract, tort, equity or otherwise, shall be
        governed by the internal laws of the Commonwealth of Puerto Rico (without
        giving
        effect to principles of conflicts of law).

      

      (b)  Guarantor
        irrevocably consents and submits to the non-exclusive jurisdiction of the
        United
        States District Court for the District of Puerto Rico and the Court of First
        Instance of the Commonwealth of Puerto Rico(Superior Court) for San Juan
        and
        waives any objection based on venue or forum non conveniens
        with
        respect to any action instituted therein arising under this Agreement or
        any of
        the other Financing Agreements or in any way connected or related or incidental
        to the dealings of Guarantors and Lender in respect of this Agreement or
        the
        other Financing Agreements or the transactions related hereto or thereto,
        in
        each case whether now existing or hereafter arising, and whether in contract,
        tort, equity or otherwise, and agrees that any dispute with respect to any
        such
        matters shall be heard only in the courts described above (except that Lender
        shall have the right to bring any action or proceeding against Guarantor
        or any
        of its property in the courts of any other jurisdiction which Lender deems
        necessary or appropriate in order to realize on the Collateral or to otherwise
        enforce its rights against Guarantor or its property). 

      

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (c)  Guarantor
        hereby waives personal service of any and all process upon it and consents
        that
        all such service of process may be made by certified mail (return receipt
        requested) directed to its address set forth on the signature pages hereof
        and
        service so made shall be deemed to be completed five (5) days after the same
        shall have been so deposited in the U.S. mails, or, at Lender's option, by
        service upon Guarantor in any other manner provided under the rules of any
        such
        courts. Within thirty (30) days after such service, Guarantor shall appear
        in
        answer to such process, failing which Guarantors shall be deemed in default
        and
        judgment may be entered by Lender against Guarantor for the amount of the
        claim
        and other relief requested.

       

      (d)  GUARANTOR
        AND LENDER EACH HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
        ACTION OR CAUSE OF ACTION (i) ARISING UNDER THIS AGREEMENT OR ANY OF THE
        OTHER
        FINANCING AGREEMENTS OR (ii) IN ANYWAY CONNECTED WITH OR RELATED OR INCIDENTAL
        TO THE DEALINGS OF GUARANTOR AND LENDER IN RESPECT OF THIS AGREEMENT OR ANY
        OF
        THE OTHER FINANCING AGREEMENTS OR THE TRANSACTIONS RELATED HERETO OR THERETO
        IN
        EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
        TORT, EQUITY OR OTHERWISE. GUARANTOR AND LENDER EACH HEREBY AGREES AND CONSENTS
        THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY
        COURT
        TRIAL WITHOUT A JURY AND THAT GUARANTOR OR LENDER MAY FILE AN ORIGINAL
        COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE
        OF
        THE CONSENT OF GUARANTOR AND LENDER TO THE WAIVER OF THEIR RIGHT TO TRIAL
        BY
        JURY.

      

      (e)  Lender
        shall not have any liability to Guarantor (whether in tort, contract, equity
        or
        otherwise) for losses suffered by Guarantor in connection with, arising out
        of,
        or in any way related to the transactions or relationships contemplated by
        this
        Agreement, or any act, omission or event occurring in connection herewith,
        unless it is determined by a final and non-appealable judgment or court order
        binding on Lender that the losses were the result of acts or omissions
        constituting gross negligence or willful misconduct. In any such litigation,
        Lender shall be entitled to the benefit of the rebuttable presumption that
        it
        acted in good faith and with the exercise of ordinary care in the performance
        by
        it of the terms of this Agreement and the other Financing
        Agreements.

      

      7.2  Waiver
        of Notices.
        Guarantor hereby expressly waive demand, presentment, protest and notice
        of
        protest and notice of dishonor with respect to any and all instruments and
        commercial paper, included in or evidencing any of the Obligations or the
        Collateral, and any and all other demands and notices of any kind or nature
        whatsoever with respect to the Obligations, the Collateral and this Agreement,
        except such as are expressly provided for herein. No notice to or demand
        on
        Guarantor which Lender may elect to give shall entitle Guarantor to any other
        or
        further notice or demand in the same, similar or other
        circumstances.

      

      7.3  Amendments
        and Waivers.
        Neither
        this Agreement nor any provision hereof shall be amended, modified, waived
        or
        discharged orally or by course of conduct, but only by a written agreement
        signed by an authorized officer of Lender, and as to amendments, as also
        signed
        by an authorized officer of Guarantor. Lender shall not, by any act, delay,
        omission or otherwise be deemed to have expressly or impliedly waived any
        of its
        rights, powers and/or remedies unless such waiver shall be in writing and
        signed
        by an authorized officer of Lender. Any such waiver shall be enforceable
        only to
        the extent specifically set forth therein. A waiver by Lender of any right,
        power and/or remedy on any one occasion shall not be construed as a bar to
        or
        waiver of any such right, power and/or remedy which Lender would otherwise
        have
        on any future occasion, whether similar in kind or otherwise.

      

      7.4  Waiver
        of Counterclaims.
        Guarantor waives all rights to interpose any claims, deductions, setoffs
        or
        counterclaims of any nature (other then compulsory counterclaims) in any
        action
        or proceeding with respect to this Agreement, the Obligations, the Collateral
        or
        any matter arising there from or relating hereto or thereto.

      7.5  Indemnification.
        Guarantor shall indemnify and hold Lender, and its directors, agents, employees
        and counsel, harmless from and against any and all losses, claims, damages,
        liabilities, costs or expenses imposed on, incurred by or asserted against
        any
        of them in connection with any litigation, investigation, claim or proceeding
        commenced or threatened related to the negotiation, preparation, execution,
        delivery, enforcement, performance or administration of this Agreement, any
        other Financing Agreements, or any undertaking or proceeding related to any
        of
        the transactions contemplated hereby or any act, omission, event or transaction
        related or attendant thereto, including amounts paid in settlement, court
        costs,
        and the fees and expenses of counsel. To the extent that the undertaking
        to
        indemnify, pay and hold harmless set forth in this Section may be unenforceable
        because it violates any law or public policy, Guarantor shall pay the maximum
        portion which it is permitted to pay under applicable law to Lender in
        satisfaction of indemnified matters under this Section. The foregoing indemnity
        shall survive the payment of the Obligations, the termination of this Agreement
        and the termination or non-renewal of the Loan Agreement.

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      SECTION
        8. MISCELLANEOUS

      

      8.1  Notices.
        All
        notices, requests and demands hereunder shall be in writing and (a) made
        to
        Lender at 268 Munoz Rivera Ave., Westernbank World Plaza Building, Suite
        600,
        6th
        Floor, ,
        Hato Rey, P.R., 00919 and to Guarantor at its chief executive offices set
        forth
        Parent Loan Agreement, or to such other address as either party may designate
        by
        written notice to the other in accordance with this provision, and (b) deemed
        to
        have been given or made: if delivered in person, immediately upon delivery;
        if
        by telex, telegram or facsimile transmission, immediately upon sending and
        upon
        confirmation of receipt; if by nationally recognized overnight courier service
        with instructions to deliver the next business day, one (1) business day
        after
        sending; and if by certified mail, return receipt requested, five (5) days
        after
        mailing.

      

      8.2  Partial
        Invalidity.
        If any
        provision of this Agreement is held to be invalid or unenforceable, such
        invalidity or unenforceability shall not invalidate this Agreement as a whole,
        but this Agreement shall be construed as though it did not contain the
        particular provision held to be invalid or unenforceable and the rights and
        obligations of the parties shall be construed and enforced only to such extent
        as shall be permitted by applicable law.

      

      8.3  Successors.
        This
        Agreement, the other Financing Agreements and any other document referred
        to
        herein or therein shall be binding upon Guarantor and its successors and
        assigns
        and inure to the benefit of and be enforceable by Lender and its successors
        and
        assigns, except that Guarantor may not assign its rights under this Agreement,
        the other Financing Agreements and any other document referred to herein
        or
        therein without the prior written consent of Lender. 

      

      8.4  Entire
        Agreement.
        This
        Agreement, the other Financing Agreements, any supplements hereto or thereto,
        and any instruments or documents delivered or to be delivered in connection
        herewith or therewith represents the entire agreement and understanding
        concerning the subject matter hereof and thereof between the parties hereto,
        and
        supersede all other prior agreements, understandings, negotiations and
        discussions, representations, warranties, commitments, proposals, offers
        and
        contracts concerning the subject matter hereof, whether oral or written.
        In the
        event of any inconsistency between the terms of this Agreement and any schedule
        or exhibit hereto, the terms of this Agreement shall govern. References herein
        to the Parent Loan Agreement or Parent Financing Agreements shall have no
        effect
        on the Parent Loan Agreement or any other Parent financing Agreement. Such
        references have been inserted merely to avoid the necessity of duplicating
        certain Schedules, information and covenants in this Agreement.

      

      8.5 
         Interpretative
        Provisions.
        

      (a)
        Unless otherwise expressly provided herein, (i) references herein to any
        agreement, document or instrument shall be deemed to include all subsequent
        amendments, modifications, supplements, extensions, renewals, restatements
        or
        replacements with respect thereto, but only to the extent the same are not
        prohibited by the terms hereof or of any other Financing Agreement, and (ii)
        references to any statute or regulation are to be construed as including
        all
        statutory and regulatory provisions consolidating, amending, replacing,
        recodifying, supplementing or interpreting the statute or
        regulation.

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      (b)
        The
        captions and headings of this Agreement are for convenience of reference
        only
        and shall not affect the interpretation of this Agreement.

      

      (c)
        This
        Agreement and other Financing Agreements may use several difference limitations,
        tests or measurements to regulate the same or similar matters. All such
        limitations, tests and measurements are cumulative and shall each be performed
        in accordance with their terms.

      

      (d)
        This
        Agreement and the other Financing Agreements are the result of negotiations
        among and have been reviewed by counsel to Guarantor and Lender and the other
        parties, and are the products of all parties. Accordingly, this Agreement
        and
        the other Financing Agreements shall not be construed against Lender merely
        because of Lender’s involvement in their preparation.

      

      (e)
        Capitalized terms used herein, not otherwise defined herein, that are defined
        in
        the Loan Agreement, shall have the respective meanings prescribed
        therein.

      

      (f)
        Any
        accounting term used herein unless otherwise defined in this Agreement shall
        have the meanings customarily given to such term in accordance with GAAP
        and all
        financial computations hereunder shall be computed, unless otherwise
        specifically provided herein, in accordance with GAAP as consistently applied
        .

      

      8.6
        Counterparts.
        This
        Agreement may be executed in any number of counterparts, but all of such
        counterparts shall together constitute but only and the same agreement. In
        making proof of this Agreement, it shall not be necessary to produce or account
        for more than one counterpart hereof signed by each of the parties hereto.
        This
        Agreement may be executed and delivered by telecopier with the same force
        and
        effect as if it were a manually executed and delivered counterpart.

       

      8.7
        Conflicts:
        In the
        event of any inconsistency or conflicts in any of the terms or provisions
        of the
        Financing Agreement, including this Agreement, that which is most favorable
        to
        Lender shall control.

      

      8.8.
        Reference Currency.
        (a) All
        Obligations shall be payable and paid, in the Reference Currency (United
        States
        Dollars).

       

      (b)
        All
        risks of currency devaluation, other fluctuations in exchange rates or the
        imposition of any exchange controls will be borne by Guarantor and Guarantor
        shall be liable to pay to Lender, and does hereby indemnify and hold Lender
        harmless for any loss or damage resulting from any devaluation currency
        (including the amount thereof), any other fluctuations in exchange rates
        and/or
        the imposition of any exchange controls affecting the Loans disbursed or
        the
        repayments thereof, as provided herein.

       

      (c)
        As
        used herein, the term “Reference Currency” shall mean United Sates
        Dollars.

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      8.9.
        Net
        Payments
        .All
        payments made by any Guarantor un-der this Agreement, and the other Financing
        Agreements shall be made without reduction for or on account of, any pre-sent
        or
        future income or other taxes, levies, imposts, duties, charges, fees,
        deductions, withholdings, now or here-after imposed, levied, collected, withheld
        or assessed by any country (or by any political subdivision or taxing authority
        thereof or therein, including England) other than taxes of the Commonwealth
        of
        Puerto Rico measured by or based upon the overall net income of the Lender
        (such
        taxes being called "Taxes"). If any Taxes are required to be withheld from
        any
        amounts payable to the Lender hereunder or any other Financing Agreement,
        the
        amounts so payable to the Lender shall be increased to the extent necessary
        to
        yield to the Lender (after payment of all Taxes) interest or any such other
        amounts payable hereunder at the rates or in the amounts specified in this
        Agreement or such other Financing Agreement. It is understood and agreed
        that
        the Guarantor shall be obligated to so "gross-up" with respect to payments
        to
        the Lender under or in connection with the Loans and Letter of Credit
        Accommodations even though the Guarantor claims an exemption from the
        payment or withholding of Taxes imposed under the laws of England or any
        governmental agency or body thereof with respect to such payments to the
        Lender.
        Whenever any Tax is payable by Guarantor, as promptly as possible thereafter,
        Guarantor shall send to the Lend-er, a certified copy of an original official
        receipt showing payment thereof. If the Guarantor fails to pay any Taxes
        when
        due to the appropriate taxing authority or fails to remit to the Lender the
        required re-ceipts or other required documentary evidence, the Guarantor
        shall
        indemnify the Lender for any incremental taxes, interest or penalties that
        may
        become payable by the Lender as a result of any such failure. If
        any
        Taxes are required to be withheld from any amounts payable to the Lender
        hereunder or any other Financing Agreement,
        Lender
        may, but shall not be required to, on behalf of Guarantor, increase
        the amounts payable to the Lender to the extent necessary to yield to Lender
        (after payment of all Taxes) interest or any such other amounts payable
        hereunder at the rates or in the amounts specified in this Agreement or other
        Financing Agreement and Lender may, on behalf of the Guarantor, so "gross-up"
        payments to the Lender under or in connection with the Loans and Letter of
        Credit Accommodations. 

      IN
        WITNESS WHEREOF, Lender and Guarantor have caused these presents to be duly
        executed as of the day and year first above written, by officers thereof
        duly
        authorized.

       

      
 

      
        
          	 	 	LENDER 	 
	 	 	Westernbank Puerto Rico 	 
	 	 	 	 
	 	 	By:/s/ Miguel A. Vazquez_______
                  	 
	 	 	Miguel A. Vazquez 	 
	 	 	President, Business Credit
                  Division 	 

        

         

         

        
          
            
            

          

          
            26

            
              

            

          

          
            
            

          

        

         

         

        
          	 	 	 	 
	 	 	GUARANTOR 	 
	 	 	 	 
	Attest:  	
                	Inyx, Inc. 	 
	 	 	 	 
	/s/ Rima
                  Goldshmidt               
                  	 	By: /s/Jack Kachkar      
	 
	Rima
                  Goldshmidt	 	Name: Dr. Jack Kachkar 	 
	Secretary 	 	Title:Chairman Of The
                  Board
                  And Chief Executive Officer
	[ Seal]  	 	 	 
	 	 	Inyx
                  USA, Ltd. 	 
	 	 	 	 
	/s/ Rima
                  Goldshmidt              
                  	 	By: /s/ Jack
                  Kachkar       	 
	Rima Goldshmidt	 	Name: Dr. Jack Kachkar 	 
	Director and Secretary	 	Title: Director 	 
	 	 	 	 
	 	 	Inyx Pharma Limited 	 
	 	 	 	 
	/s/ Jay M.
                  Green                  
                  	 	By: /s/ Jack
                  Kachkar       	 
	Jay
                  M. Green	 	Name: Dr. Jack Kachkar 	 
	Director  	 	Title: Director 	 

        

      

       

      

      Signed
        before me Emma Warne on 30 August 2005, a Solicitor
        of
        England And Wales by Miguel Vazquez, personally known to me or who has produced
        a driver’s license or passport as identification, at Allen & Overy, One new
        change, London, EC4M 9QWQ, England.

      

      

      Emma
        Warne of One St. Paul's 

      Solicitor
        Churchyard, London, EC4M85h

      

      

      

      Signed
        before me Emma Warne on 30 August 2005, a Solicitor
        of England
        And Wales by Jack Kachkar, personally known to me or who has produced a driver’s
        license or passport as identification, at Allen & Overy, One new change,
        London, EC4M 9QWQ, England.

      

      

      Emma
        Warne of One St. Paul's 

      Solicitor
        Churchyard, London, EC4M85H

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

       

      Signed
        before me Emma Warne on 30 August 2005, a Solicitor
        of England
        And Wales by Jay Green, personally known to me or who has produced a driver’s
        license or passport as identification, at Allen & Overy, One new change,
        London, EC4M 9QWQ, England.

      

      Emma
        Warne of One St. Paul's 

      
        Solicitor
          Churchyard, London, EC4M85H

      

      Signed
        before me ________________________ on __________________ 2005, a Solicitor
        of
        England And Wales by ____________________________, personally known to me
        or who
        has produced a driver’s license or passport as identification, at Denton Wilde
        Sapte, One Fleet Place, London, EC4M 7WS England.

      

      

      ____________________________

      Solicitor

      

      

      Signed
        before me ________________________ on __________________ 2005, a Solicitor
        of
        England And Wales by ____________________________, personally known to me
        or who
        has produced a driver’s license or passport as identification, at Denton Wilde
        Sapte, One Fleet Place, London, EC4M 7WS England.

      

      

      ____________________________

      Solicitor

      

      

      

      CODE:
        GUARANTOR-GENERAL SECURITY AGREEMENT-Inyxs-2

      

      
        
          
          

        

        
          28

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