Document:

SETTLEMENT AGREEMENT

     This  Settlement  Agreement  ("Agreement")  entered  into  this  9th day of
August,  2000  ("Effective  Date")  by and  between  Empyrean  Bioscience,  Inc.
("Empyrean"),  a Wyoming  corporation,  having an office at 23800  Commerce Park
Road, Suite A, Cleveland,  Ohio 44122, and International  Bioscience Corporation
("IBC"),  a Florida  corporation,  having an office at 777 South Flagler  Drive,
Phillips Point Building,  East Tower, Suite 909, West Palm Beach, Florida 33401,
David  Thornburgh,  M.D. ("Dr.  Thornburgh"),  c/o IBC, 777 South Flagler Drive,
Phillips Point Building,  East Tower, Suite 909, West Palm Beach, Florida 33401,
and Sara  Gomez de Ferro  ("Ms.  Gomez"),  c/o IBC,  777  South  Flagler  Drive,
Phillips Point Building,  East Tower, Suite 909, West Palm Beach, Florida 33401,
(Empyrean  and IBC  hereinafter  collectively  referred to as the  "Parties" and
individually referred to as a "Party"):

     WHEREAS Empyrean commenced an action against Geda  International  Marketing
Company (a Bahamian  subsidiary  of IBC,  which shall  herein be included in the
reference "IBC"),  David  Thornburgh,  M.D., and Sara Gomez a/k/a Sara Ferro, by
filing a complaint ("the Complaint") in the United States District Court for the
Southern District of Florida ("the Court"), captioned Empyrean Bioscience,  Inc.
v. International Bioscience Corporation, David Thornburgh, M.D., and Sara Gomez,
a/k/a Sara Ferro, Case No. 00-8300-CIV-Dimitrouleas ("the Empyrean/IBC Action");

     WHEREAS,  OPTIMA Holding Co. has been granted the right to intervene in the
Empyrean/IBC Action and has filed a Complaint In Intervention  asserting certain
claims  against  Empyrean and IBC in Case No.  00-8300 CIV -  Dimitrouleas  (the
"Optima Action");
<PAGE>
     WHEREAS,  the Parties now desire to resolve the Empyrean/IBC Action without
further  expense or time and  Empyrean  now desires to dismiss the  Empyrean/IBC
Action in its entirety without prejudice;

     NOW,  THEREFORE,  in consideration of the promises and conditions set forth
below, the Parties agree as follows:

     1. Empyrean agrees that the  Empyrean/IBC  Action shall be dismissed in its
entirety without prejudice. To effectuate the foregoing,  Empyrean shall deliver
to IBC's counsel  concurrently  with  Empyrean's  execution of this Agreement an
executed  Stipulation of Dismissal Without Prejudice pursuant to Rule 41 (a) (1)
(ii) of the Federal  Rules of Civil  Procedure  in the form  attached  hereto as
Exhibit A, suitable for filing with the Clerk of the Court.

     2. In  consideration  for the  settlement  of the  Empyrean/IBC  Action and
concurrently with the execution of this Settlement  Agreement,  Empyrean and IBC
have entered into a series of  Agreements  on this date  identified in Exhibit B
hereto annexed respecting a certain proprietary  formulation  invented and owned
by IBC and licensed to Empyrean which was the subject matter of the Empyrean/IBC
Action,  confirmation of which is  acknowledged by the Parties.  This Settlement
Agreement, and the Agreements identified in Exhibit B, are deemed by the Parties
to be an integrated Agreement.

     3.  In  consideration  of this  Settlement  Agreement  and  the  Agreements
identified in Exhibit B hereto  annexed and the  settlement of the  Empyrean/IBC
Action,   Empyrean  hereby   voluntarily  and  knowingly  releases  and  forever
discharges Ms. Gomez, her predecessors, successors and assigns in her individual
and  representative  capacity,  (the "Released Gomez Party"),  from any actions,
claims, demands, causes of action, obligations,  damages, liabilities,  expenses
and controversies of any nature and description  whatsoever,  whether or not now
known, suspected or claimed, which Empyrean had, has, or may have related to the
Empyrean/IBC  Action,  against  the  Released  Gomez  Party  including,  without

                                       2
<PAGE>
limitation,  any  actions,  claims,  demands,  causes  of  action,  obligations,
damages, liabilities, expenses and controversies of any kind which arise out of,
relate to or are based on the Empyrean/IBC Action.

     4.  In  consideration  of this  Settlement  Agreement  and  the  Agreements
identified in Exhibit B hereto  annexed and the  settlement of the  Empyrean/IBC
Action,   Empyrean  hereby   voluntarily  and  knowingly  releases  and  forever
discharges  Dr.  Thornburgh,  his  predecessors,  successors  and assigns in his
individual and representative  capacity, (the "Released Thornburgh Party"), from
any  actions,   claims,  demands,  causes  of  action,   obligations,   damages,
liabilities,   expenses  and   controversies   of  any  nature  and  description
whatsoever,  whether or not now known, suspected or claimed, which Empyrean had,
has,  or may have  related to the  Empyrean/IBC  Action,  against  the  Released
Thornburgh Party including,  without limitation,  any actions,  claims, demands,
causes of action, obligations,  damages, liabilities, expenses and controversies
of any kind  which  arise out of,  relate  to or are  based on the  Empyrean/IBC
Action.

     5.  In  consideration  of this  Settlement  Agreement  and  the  Agreements
identified in Exhibit B hereto  annexed and the  settlement of the  Empyrean/IBC
Action,   Empyrean  hereby   voluntarily  and  knowingly  releases  and  forever
discharges  IBC, its  subsidiaries,  predecessors,  successors  and assigns (the
"Released  IBC Party"),  from any actions,  claims,  demands,  causes of action,
obligations,  damages, liabilities, expenses and controversies of any nature and
description  whatsoever,  whether or not now known,  suspected or claimed, which
Empyrean had, has, or may have related to the Empyrean/IBC  Action,  against the
Released IBC Party including,  without limitation, any actions, claims, demands,

                                       3
<PAGE>
causes of action, obligations,  damages, liabilities, expenses and controversies
of any kind  which  arise out of,  relate  to or are  based on the  Empyrean/IBC
Action.

     6.  In  consideration  of this  Settlement  Agreement  and  the  Agreements
identified in Exhibit B hereto  annexed and the  settlement of the  Empyrean/IBC
Action,  IBC hereby  voluntarily and knowingly  releases and forever  discharges
Empyrean, its subsidiaries,  predecessors, successors and assigns (the "Released
Empyrean  Party"),  from  any  actions,   claims,  demands,  causes  of  action,
obligations,  damages, liabilities, expenses and controversies of any nature and
description  whatsoever,  whether or not now known,  suspected or claimed, which
IBC had,  has,  or may have  related to the  Empyrean/IBC  Action,  against  the
Released  Empyrean Party including,  without  limitation,  any actions,  claims,
demands,  causes of action,  obligations,  damages,  liabilities,  expenses  and
controversies  of any kind  which  arise  out of,  relate to or are based on the
Empyrean/IBC Action.

     7. Each Party  hereto  acknowledges  that this  Agreement  constitutes  and
contains the entire agreement and  understanding  of the Parties  concerning the
Empyrean/IBC  Action,  and  supersedes  and  replaces  all  prior  negotiations,
proposed  agreements,  and  agreements,  written or oral. Any amendments to this
Agreement shall be in writing and executed by both parties hereto.

     8. This  Agreement  shall be binding  upon and inure to the  benefit of the
Parties hereto and their respective heirs, successors and beneficiaries.

     9. The language of this Agreement  shall be construed as a whole  according
to its fair  meaning,  and  none of the  Parties  hereto  shall  be  deemed  the
draftsman of this  Agreement or any part hereof,  for purposes of any litigation
which may arise  hereafter  between  them.  If any  provision or portion of this

                                       4
<PAGE>
Agreement  shall be held for any reason to be  unenforceable  or  illegal,  that
provision  shall be  severed  from  this  Agreement  and the  remainder  of this
Agreement shall remain valid and enforceable  between the Parties hereto just as
if the provision held to be illegal or unenforceable  had never been included in
this Agreement.

     10. Nothing herein shall preclude the Parties from making disclosure of any
information   regarding  the  terms  and/or  conditions  of  this  Agreement  in
compliance with Securities and Exchange Commission Rules and Regulations,  or in
compliance  with any state or federal  securities  rules or  regulations,  or as
otherwise obligated by law.

     11. This  Agreement  shall be governed by and construed in accordance  with
the internal laws of the state of Florida,  without  giving effect to principles
of conflicts of law.  Each Party submits to the  exclusive  jurisdiction  of the
state and federal  courts located in Miami-Dade or Palm Beach  Counties,  in the
State of Florida,  for any action or proceeding relating to this agreement,  and
expressly  waives  any  objection  it  may  have  to  such  jurisdiction  or the
convenience  of such forum.  If any legal action or other  proceeding is brought
for the  enforcement of this  Agreement,  the successful or prevailing  party or
parties shall be entitled to recover  reasonable  attorneys fees and other costs
incurred in that action or proceeding,  in addition to any other relief to which
it may be entitled.

     12.  Nothing  in this  Agreement  shall  be  construed  as or  shall  be an
admission of any liability or wrongdoing by IBC or by Empyrean.

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<PAGE>
     13. Each Party  represents  that they have read this  Agreement,  that they
have discussed it thoroughly  with their  attorney,  that they understand all of
its provisions,  that they enter into it  voluntarily,  and that the individuals
executing  this Agreement have the power and authority to do so on behalf of the
respective Parties, and to bind such respective Parties to the terms hereof.

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<PAGE>
     IN WITNESS  WHEREOF,  the Parties have caused this Agreement to be executed
by their duly authorized representatives as of the date set forth above.

FOR EMPYREAN BIOSCIENCE, INC.           FOR INTERNATIONAL BIOSCIENCE CORPORATION

-----------------------------------     ----------------------------------------
Signed                                  Signed

-----------------------------------     ----------------------------------------
Printed Name                            Printed Name

-----------------------------------     ----------------------------------------
Title                                   Title

-----------------------------------     ----------------------------------------
Date                                    Date

                                       7
<PAGE>
                                    EXHIBIT A

                          UNITED STATES DISTRICT COURT
                          SOUTHERN DISTRICT OF FLORIDA

 EMPYREAN BIOSCIENCE, INC.,

        Plaintiff,                CASE NO.: 00-08300-CIV-DIMITROULEAS

 vs.

 INTERNATIONAL BIOSCIENCE
 CORPORATION, DAVID THORNBURGH, M.D., and
 SARA GOMEZ a/k/a SARA FERRO,

        Defendants.

                                   /
 ----------------------------------

                            STIPULATION OF DISMISSAL
                 PURSUANT TO RULE 41(A)(1)(II), FED. R. CIV. P.

     IT IS HEREBY  STIPULATED AND AGREED,  by and among the parties,  subject to
the  approval  of the Court,  that all claims and  counterclaims  be  dismissed,
without  prejudice,  pursuant to Rule  41(a)(1)(ii),  Fed. R. Civ. P. Each party
shall bear its own attorney fees and costs.

                                       8
<PAGE>
Dated:   August ____, 2000
                                        STROOCK & STROOCK & LAVAN LLP
                                        Attorneys for Empyrean
                                        3300 First Union Financial Center
                                        200 South Biscayne Boulevard
                                        Miami, Florida 33131-2385
                                        Telephone:  (305) 358-9900

                                        By:
                                           -------------------------------------
                                        Richard B. Simring
                                              (Florida Bar No. 890571)

Dated:   August ____, 2000
                                        Holtzman, Krinzman, Equels & Furia
                                        Attorneys for IBC, Thornburgh and Ferro
                                        2601 South Bayshore Drive, Suite 600
                                        Miami, Florida 33133
                                        Telephone:  (305) 859-7700

                                        By:
                                           -------------------------------------
                                        Joseph L. Raia
                                              (Florida Bar No. 322083)

SO ORDERED:

                                        ----------------------------------------
                                                    U. S. D. J.

Dated:  ______________________, 2000

                                       9
<PAGE>
                                    EXHIBIT B

1.  License Agreement from IBC to Empyrean
2.  License Agreement from IBC to IBC-Empyrean LLC
3.  Trademark License from Empyrean to IBC
4.  Trademark License from Empyrean to IBC-Empyrean LLC
5.  Trademark License from IBC to Empyrean
6.  Trademark License from IBC to IBC-Empyrean LLC
7.  Joint Venture Agreement between Empyrean and IBC
8.  IBC-Empyrean LLC Operating Agreement
9.  Voting Agreement
10. Non-Qualified Stock Option Plan
11. Put AgreementJOINT VENTURE AGREEMENT

                                     BETWEEN

                            EMPYREAN BIOSCIENCE, INC.

                                       AND

                      INTERNATIONAL BIOSCIENCE CORPORATION

                           DATED AS OF AUGUST 9, 2000
<PAGE>
                                TABLE OF CONTENTS
                                                                            Page
1.  Definitions..............................................................  1

2.  Allocation of Rights to Commercialize the Licensed
    Products; Formation of IBC-Empyrean,  L.L.C..............................  5

3.  Closing..................................................................  7

4.  Conditions to Closing....................................................  7

5.  Management of IBC-Empyrean, L.L.C........................................ 10

6.  Manufacturing and Packaging.............................................. 11

7.  Registration of Shares and Option Shares................................. 12

8.  New Product Development; Non-Competition Covenants....................... 25

9.  Optima Litigation........................................................ 26

10. Representations & Warranties by Empyrean................................. 26

11. Representations & Warranties by IBC...................................... 28

12. Survival of Representations and Warranties............................... 31

13. Indemnification.......................................................... 31

14. Applicable Law........................................................... 33

15. Sole and Complete Agreement.............................................. 34

16. Notices.................................................................. 35

17. Assignment............................................................... 36

                                      (i)

<PAGE>
                                INDEX OF EXHIBITS

Exhibit A           Trademark License Agreement from Empyrean to IBC
Exhibit B           Trademark License Agreement from Empyrean to IBC-Empyrean
Exhibit C           Form S-4
Exhibit D           License Agreement from IBC to Empyrean
Exhibit E           Trademark License Agreement from IBC to Empyrean
Exhibit F           License Agreement from IBC to IBC-Empyrean
Exhibit G           Trademark License Agreement from IBC to IBC-Empyrean
Exhibit H           Certificate of Formation for IBC-Empyrean, L.L.C.
Exhibit I           IBC-Empyrean, L.L.C. Operating Agreement
Exhibit J           Option Agreement
Exhibit K           Voting Agreement
Exhibit L           Opinion of Kaye, Scholer, Fierman, Hays & Handler, LLP
Exhibit M           Opinion of Holtzman, Krinzman, Equels & Furia
Exhibit N           Schedule of Adverse Changes of Empyrean
Exhibit O           Schedule of Adverse Changes of IBC
Exhibit P           GEDA LOGO
Exhibit Q           Put Agreement

                                      (ii)
<PAGE>
                             JOINT VENTURE AGREEMENT

     This JOINT VENTURE AGREEMENT (the  "Agreement"),  made as of the 9th day of
August,  2000 by and  among  INTERNATIONAL  BIOSCIENCE  CORPORATION  ("IBC"),  a
Florida corporation, having an office at 777 South Flagler Drive, Phillips Point
Building,  East Tower,  Suite 909, West Palm Beach,  Florida 33401, and EMPYREAN
BIOSCIENCE, INC. ("Empyrean"), a Wyoming corporation,  having an office at 23800
Commerce Park Road, Suite A, Cleveland, Ohio 44122.

                                WITNESSETH THAT:

     WHEREAS,  IBC and Empyrean  desire to enter into a series of  agreements as
herein  provided  in  connection  with  the  commercialization  of the  Licensed
Products  derived  from the  Formulation  (as  hereinafter  defined)  in certain
countries of the world;

     NOW,  THEREFORE,  in  consideration  of the  premises  and  of  the  mutual
undertakings   hereinafter   set  forth,   and  for  other  good  and   valuable
consideration, IBC and Empyrean hereby agree as follows:

1. DEFINITIONS.

         In  this  Agreement  the  following   terms  shall  have  the  meanings
hereinafter specified:

          (a) "Action" shall mean actions, suits, proceedings (including without
limitation arbitration proceedings) and investigations.

          (b)  "Affiliate" of a party shall mean any entity which  controls,  is
controlled  by or under common  control with such party,  and any joint  venture
(whether a corporation, partnership or other form of entity) in which such party
has at least a one-third interest.
<PAGE>
          (c)  "Approved  Manufacturer"  shall mean a  manufacturer  of Licensed
Products approved by IBC-Empyrean, LLC.

          (d)  "Approved  Packager"  shall mean a packager of Licensed  Products
approved by IBC-Empyrean, L.L.C.

          (e) "Bug Trademark" shall mean the "GEDA LOGO",  used by IBC, Empyrean
and  IBC-Empyrean,  L.L.C. on all products based on all Licensed Products in the
form attached hereto as Exhibit P.

          (f) "Derivative Products" shall mean products hereinafter developed by
IBC having an effective  amount of Formulation  therein and being of a different
product category than those Licensed Products currently being manufactured.

          (g) "Empyrean  Documents" shall mean collectively this Agreement;  the
License  Agreement from IBC to Empyrean;  the Trademark  License  Agreement from
Empyrean to IBC; the Trademark  License Agreement from Empyrean to IBC-Empyrean;
the Trademark License Agreement from IBC to Empyrean;  the Operating  Agreement;
the Put Agreement; the Option Agreement; and the Settlement Agreement.

          (h) "IBC  Documents"  shall  mean  collectively  this  Agreement;  the
License Agreement from IBC to IBC-Empyrean; the Trademark License Agreement from
Empyrean to IBC; the Trademark License  Agreement from the IBC to Empyrean;  the
Trademark License Agreement from IBC to IBC-Empyrean;  the Operating  Agreement;
the  Put  Agreement;  the  Voting  Agreement;  the  Option  Agreement;  and  the
Settlement Agreement.

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<PAGE>
          (i) "Form S-4"  shall mean that  certain  Registration  Statement,  as
amended  (Registration  No.  333-84147 filed by Empyrean with the Securities and
Exchange Commission, in the form of Exhibit C attached hereto.

          (j) "Formulation"  shall mean the proprietary  formulation  (including
manufacturing  technology and processes) comprising  Benzalkonium Chloride as an
active  ingredient  with  Octoxynol 9 (and  others)  invented and created by DR.
DAVID  THORNBURGH  and  exclusively  owned  by IBC  known  as the  GEDA  line of
products.

          (k)  "Gel  Product"  shall  mean  the   spermicide   and   microbicide
contraceptive gel product embodying the Formulation presently being developed by
IBC,  also known as the GEDA Plus  product,  that is  designed  to  prevent  the
transmission of sexually  transmitted  diseases  including,  but not limited to,
gonorrhea,  chlamydia, syphilis, Trichomonas, herpes I and II and HIV, and which
is presently undergoing the appropriate and necessary United States governmental
regulatory  compliance  process to permit  Empyrean to include such product as a
Licensed Product hereunder.

          (l)  "Governmental   Agency"  shall  mean  any  governmental   agency,
instrumentality, department, commission or board, domestic or foreign.

          (m) "License  Agreement from IBC to Empyrean"  shall mean that certain
license agreement between IBC and Empyrean relating to  commercialization of the
Licensed Products in the United States in the form of Exhibit D attached hereto.

          (n)  "License  Agreement  from IBC to  IBC-Empyrean"  shall  mean that
certain  license  agreement  between IBC and  IBC-Empyrean,  L.L.C.  relating to
commercialization  of the  Licensed  Products  in the  world,  except the United
States and Brazil, in the form of Exhibit F attached hereto.

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<PAGE>
          (o) "Licensed Products" shall mean products having an effective amount
of the  Formulation  therein and having all  necessary  government  approval for
commercialization,  including,  but not  limited  to, the Lotion  Products,  Gel
Product and any Derivative Products developed by IBC.

          (p) "Lotion  Products" (also known as GEDA Lotion) shall mean the hand
sanitizing  lotion presently being  manufactured for Empyrean by Canadian Custom
Packaging  and sold by  Empyrean  as a Licensed  Product,  and  presently  being
marketed by Empyrean under appropriate and necessary United States  governmental
regulatory compliance.

          (q)  "IBC-Empyrean,   L.L.C.  Certificate"  shall  mean  that  certain
certificate of formation relating to IBC-Empyrean, L.L.C. in the form of Exhibit
H attached hereto.

          (r) "Operating Agreement" shall mean that certain IBC-Empyrean, L.L.C.
Operating Agreement in the form of Exhibit I attached hereto.

          (s)  "Option  Agreement"  shall  mean that  certain  option  agreement
between  Empyrean and IBC relating to 2,226,000  shares of Empyrean common stock
in the form of Exhibit J attached hereto.

          (t)  "Optima  Litigation"  shall  mean  Cases  No.  98-11552  CA (09),
98-23428 CA (23) and  98-15352 CA (25) now pending in the Circuit  Court of Dade
County Florida, and Case No. 00-8300-CIV-Dimitrouleas, now pending in the United
States District Court of the Southern District of Florida.

                                       4
<PAGE>
          (u) "Put Agreement" shall mean that certain put agreement  between IBC
and Empyrean in the form attached hereto as Exhibit Q.

          (v) "Territory"  shall mean all the countries of the world,  excluding
the United States and Brazil.

          (w) "Trademark License Agreement from Empyrean to IBC" shall mean that
certain  trademark license agreement between Empyrean and IBC relating to use of
the Preventx trademark in Brazil in the form of Exhibit A attached hereto.

          (x) "Trademark License Agreement from Empyrean to IBC-Empyrean"  shall
mean that certain trademark license agreement between Empyrean and IBC-Empyrean,
L.L.C. relating to use of the Preventx trademark in the world, except the United
States and Brazil, in the form of Exhibit B attached hereto.

          (y) "Trademark License Agreement from IBC to Empyrean" shall mean that
certain  trademark license agreement between IBC and Empyrean relating to use of
the BUG  Trademark  in the  United  States,  in the form of  Exhibit E  attached
hereto.

          (z) "Trademark License Agreement from IBC to IBC-Empyrean"  shall mean
that certain trademark  license  agreement between IBC and IBC-Empyrean,  L.L.C.
relating to use of the BUG Trademark in the world,  except the United States and
Brazil, in the form of Exhibit G attached hereto.

          (aa) "Voting  Agreement" means that certain Voting  Agreement  between
IBC and Lawrence D. Bain in the Form of Exhibit K attached hereto.

2. ALLOCATION OF RIGHTS TO COMMERCIALIZE THE LICENSED PRODUCTS; FORMATION OF
   IBC-EMPYREAN, L.L.C.

                                       5
<PAGE>
     2.1 It is the  intention and agreement of the parties to allocate the right
to commercialize the Licensed Products between them as follows:

          (a) United States. The right to commercialize the Licensed Products in
the  United  States  shall be  granted to  Empyrean,  pursuant  to the terms and
conditions of the License Agreement from IBC to Empyrean,  contemplating,  among
other matters,  certain  payments to IBC pursuant to the terms and conditions of
that agreement.

          (b) Brazil. The right to commercialize the Licensed Products in Brazil
shall be retained by IBC, and in that  connection  the parties  shall enter into
the Trademark License Agreement from Empyrean to IBC, contemplating, among other
matters,  certain  payments to Empyrean  pursuant to the terms and conditions of
that agreement.

          (c) Remainder of the World.  The right to  commercialize  the Licensed
Products in the world, except the United States and Brazil,  shall be granted to
IBC-Empyrean,  L.L.C.,  and in  connection  with  such  intention  (A)  IBC  and
IBC-Empyrean,  L.L.C.  shall  enter  into  the  License  Agreement  from  IBC to
IBC-Empyrean,  (B) IBC and IBC-Empyrean,  L.L.C.  shall enter into the Trademark
License  Agreement from IBC to IBC-Empyrean,  and (C) Empyrean and IBC-Empyrean,
L.L.C.  shall  enter into the  Trademark  License  Agreement  from  Empyrean  to
IBC-Empyrean.

          (d)  Manufacturing.  Manufacturing  of the Licensed  Products shall be
governed by Section 6 herein.

     2.2 In order to facilitate the  commercialization  of the Licensed Products
in the world, except the United States and Brazil, Empyrean and IBC agree to (A)
enter into the IBC-Empyrean,  L.L.C. Operating Agreement,  and become members of
IBC-Empyrean,  L.L.C. as therein  contemplated,  and (B) cause the IBC-Empyrean,

                                       6
<PAGE>
L.L.C.  Certificate to be filed with the Delaware Secretary of State's office on
or prior to the Closing.

     2.3 All expenses  incurred by either IBC or Empyrean in connection with the
formation of IBC-Empyrean,  L.L.C.  shall be borne and paid for by either IBC or
Empyrean,  as the case may be,  unless  otherwise  agreed  by the  parties.  All
expenses  incurred  by  each  party  in  connection  with  the  negotiation  and
implementation   of  this  Agreement  and  the  various  license  and  trademark
agreements ancillary hereto shall be borne and paid for by such party.

3. CLOSING.

     Unless  any  condition  to the  Closing  shall  not  have  been  waived  or
satisfied,  consummation  of  the  transactions  contemplated  hereby  shall  be
effected  as soon as  practicable,  and in any event on or  before  the close of
business  on August 10,  2000,  unless  such date shall  have been  extended  by
written  agreement of the parties.  The closing  ("Closing") shall take place at
the offices of Kaye, Scholer, Fierman, Hays & Handler, LLP, Phillips Point, West
Tower,  Suite 1002, 777 South Flagler Drive,  West Palm Beach, FL 33401, or such
other place, and on such date and time as the parties may agree.

4. CONDITIONS TO CLOSING.

     4.1 IBC Conditions Precedent.  The obligations of IBC to effect the Closing
shall be subject  to the  satisfaction  at or prior to Closing of the  following
conditions,  any one of  which  may be  waived  in  writing  by IBC in its  sole
discretion:

          (a)  Execution of  Agreements.  Empyrean  shall have duly executed and
delivered each of the Empyrean Agreements.

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<PAGE>
          (b) Representations and Warranties. All representations and warranties
of Empyrean  contained in each Empyrean  Agreement  shall be true and correct at
and as of the  Closing,  and  Empyrean  shall  have  performed  in all  material
respects all  agreements  and  covenants  required to be performed by it in each
Empyrean Agreement.

          (c) Consents. All consents,  approvals and waivers from third parties,
governmental  entities and others necessary to permit Empyrean to enter into and
consummate the transactions  contemplated by each Empyrean  Agreement shall have
been obtained.

          (d) No  Governmental  Proceedings  or  Litigation.  No  action  by any
Governmental  Entity or third party  shall have been  instituted  or  threatened
which questions the validity or legality of the transactions contemplated by any
Empyrean Agreement and which could reasonably be expected to affect markedly the
ability of Empyrean to fulfill its  obligations  under each  Empyrean  Agreement
other than the Optima Litigation.

          (e)  Opinion  of  Counsel.  Empyrean  shall have  delivered  to IBC an
opinion of Kaye,  Scholer,  Fierman,  Hays & Handler,  LLP, counsel to Empyrean,
dated as of the Closing,  to the effect and substantially in the form of Exhibit
L hereto.

          (f)  Certificates.   Empyrean  shall  have  furnished  IBC  with  such
certificates of Empyrean's  officers and others to evidence  compliance with the
conditions set forth in this Article 4 as may be reasonably requested by IBC.

          (g) RESERVED.

          (h)  Corporate  Documents.  IBC  shall  have  received  from  Empyrean
resolutions  adopted  by the  board of  directors  of  Empyrean  approving  each
Empyrean  Agreement  and the  transactions  contemplated  thereby,  certified by
Empyrean's corporate secretary.

                                       8
<PAGE>
          (i) Grant Shares. Empyrean shall have delivered a stock certificate to
IBC representing 5,000,000 duly authorized, fully-paid and non-assessable shares
of Empyrean's common stock, no par value.

          (j) Option Agreement.  Empyrean shall have duly executed and delivered
to IBC the Option Agreement.

          (k) Put Agreement.  Empyrean shall have duly executed and delivered to
IBC the Put Agreement.

     4.2 Empyrean  Conditions  Precedent.  The obligations of Empyrean to effect
the Closing shall be subject to the  satisfaction  at or prior to Closing of the
following  conditions,  any one of which may be waived by  Empyrean  in its sole
discretion:

          (a)  Execution  of  Agreements.  IBC  shall  have  duly  executed  and
delivered each of the IBC Agreements.

          (b) Representations and Warranties. All representations and warranties
of IBC  contained in each IBC  Agreement  shall be true and correct at and as of
the  Closing,  and  IBC  shall  have  performed  in all  material  respects  all
agreements and covenants required to be performed by it in each IBC Agreement.

          (c) Consents. All consents,  approvals and waivers from third parties,
governmental  entities  and  others  necessary  to permit  IBC to enter into and
consummate the  transactions  contemplated by each IBC Agreement shall have been
obtained.

          (d) No  Governmental  Proceedings  or  Litigation.  No  action  by any
Governmental  Entity or third party  shall have been  instituted  or  threatened
which questions the validity or legality of the transactions contemplated by any

                                       9
<PAGE>
IBC  Agreement  and which could  reasonably  be expected to affect  markedly the
ability of IBC to fulfill its obligations  under each IBC Agreement,  other than
the Optima Litigation.

          (e)  Opinion of  Counsel.  IBC shall have  delivered  to  Empyrean  an
opinion of Holtzman,  Krinzman,  Equels & Furia, counsel to IBC, dated as of the
Closing, to the effect and substantially in the form of Exhibit M hereto.

          (f)   Certificates.IBC   shall  have  furnished   Empyrean  with  such
certificates  of IBC's  officers  and  others to  evidence  compliance  with the
conditions  set  forth  in this  Article  4 as may be  reasonably  requested  by
Empyrean.

          (g) RESERVED.

          (h)  Corporate  Documents.  Empyrean  shall  have  received  from  IBC
resolutions  adopted  by the  board  of  directors  of IBC  approving  each  IBC
Agreement and the transactions contemplated thereby,  certified by IBC corporate
secretary.

          (i) Voting  Agreement.  IBC shall have duly  executed and delivered to
Empyrean the Voting Agreement.

          (j) Put  Agreement.  IBC shall have duly  executed  and  delivered  to
Empyrean the Put Agreement.

5. MANAGEMENT OF IBC-EMPYREAN, L.L.C.

     The  parties  agree  that  the  management  and  corporate   governance  of
IBC-Empyrean,  L.L.C.  shall be  undertaken  in  accordance  with the  terms and
provisions of the IBC-Empyrean, L.L.C. Operating Agreement.

                                       10
<PAGE>
6. MANUFACTURING AND PACKAGING.

     6.1 The parties agree that all Licensed Products shall only be manufactured
by an Approved Manufacturer.

     6.2 (a) The parties  agree that IBC shall have no obligation to deliver the
Formulation  to  an  Approved   Manufacturer  unless  and  until  such  Approved
Manufacturer  has  entered  into a  confidentiality  agreement  with IBC, to the
satisfaction  of IBC, that prohibits such Approved  Manufacturer  from revealing
any proprietary and confidential  information relating to the Formulation to any
third parties,  including  Empyrean and  IBC-Empyrean,  L.L.C. IBC covenants and
agrees that, upon execution of the confidentiality  agreement,  it shall provide
each  Approved  Manufacturer  with  the  Formulation,  and  appropriate  written
documentation of the Formulation, sufficient to permit the Approved Manufacturer
to make and manufacture the Licensed Products.  Empyrean agrees and acknowledges
it has no right to obtain access to the confidential and proprietary information
included in the Formulation.

          (b) Notwithstanding Section 6.2 (a) above, IBC represents and warrants
that the complete Formulation, when available but within six months of executing
this  Agreement,  will be  placed  in escrow  at the law  offices  of  Holtzman,

                                       11
<PAGE>
Krinzman, Equels and Furia. IBC further agrees that, notwithstanding Section 6.2
(a)  above,  in the  event IBC  fails or  otherwise  refuses  to  deliver,  upon
execution of the  confidentiality  agreement,  the complete  Formulation  to any
Approved   Manufacturer,   then  in  such  event,   the  board  of  managers  of
IBC-Empyrean, L.L.C. may direct that the Formulation be released from escrow and
delivered to such an Approved  Manufacturer.  An escrow agreement  setting forth
this obligation and authorizing Holtzman,  Krinzman, Equels and Furia to release
the  Formulation  to an  Approved  Manufacturer  shall be signed by the  parties
within thirty (30) days after the date of this Agreement.

     6.3 The parties agree that all Licensed  Products shall only be packaged by
an Approved Packager.

7. REGISTRATION OF SHARES AND OPTION SHARES.

     7.1 Obligation to Register.  Empyrean covenants and agrees that it will use
best efforts to file, as promptly as possible,  an amendment to the Registration
Statement on Form S-4  (Registration  No.  333-84147) filed by Empyrean with the
Securities Exchange  Commission (the "SEC") on ________ __, 2000 (hereafter,  as
so amended,  the  "Registration  Statement"),  which amendment will, among other
matters,  seek  to  register  for  public  resale  by IBC  from  time to time in
accordance  with  applicable  law and  regulations  (i) the 5,000,000  shares of
Empyrean common stock to be issued to IBC pursuant to Section 4.1(i) hereof (the
"Shares"), (ii) the option and the 2,226,000 option shares (the "Option Shares")
to be granted to IBC  pursuant  to the terms of the Option  Agreement  and (iii)
approximately  476,000  shares of Empyrean  common stock issued to IBC in April,
2000.

     7.2 Registration Procedures.

          (a) In  connection  with  the  registration  obligations  of  Empyrean
pursuant to and in accordance  with Section 7.1 hereof,  Empyrean  shall use its
best efforts to obtain  effectiveness of such registration to permit the sale of
the Shares and Option Shares in accordance  with the intended  method or methods
of disposition  thereof,  and shall continue to use its best efforts to maintain
such  effectiveness for the registration until the Shares and the Option Shares,
have been disposed of pursuant to the  Registration  Statement (the  "Applicable
Period"),  and pursuant  thereto Empyrean shall as expeditiously as possible and
subject to the terms and conditions herein:

                                       12
<PAGE>
               (i) within sixty (60) days from the date of the Closing,  prepare
and file with the SEC the Registration  Statement for the sale of the Shares and
the Option  Shares on Form S-4 (or such other  form for which  Empyrean  and the
registration  contemplated by Section 7.1 are eligible) and use its best efforts
to cause the Registration Statement to become effective;

               (ii)  prepare  and file with the SEC such  amendments  (including
post-effective  amendments) to the Registration Statement,  and such supplements
to the  related  prospectus,  as  may  be  required  by  the  applicable  rules,
regulations  or  instructions  under the Securities Act of 1933, as amended (the
"Securities  Act") during the Applicable  Period in accordance with the intended
methods of disposition  specified by IBC of the Shares and Option Shares covered
by the Registration Statement;  make generally available as soon as practicable,
but not later  than  ninety  (90) days  after  the close of the  period  covered
thereby,  earnings statements  satisfying the provisions of Section 11(a) of the
Securities  Act (provided  that  Empyrean  shall be deemed to have complied with
this clause if it has  complied  with Rule 158 under the  Securities  Act),  and
cause the related prospectus as so supplemented to be filed pursuant to Rule 424
under the Securities Act; provided, however, that before filing the Registration
Statement or prospectus,  or any  amendments or supplements  thereto (other than
reports required to be filed by it under the Securities Exchange Act of 1934, as
amended (the "Exchange Act")), Empyrean shall furnish to IBC and its counsel for
review and comment, copies of all documents required to be filed;

               (iii) notify IBC promptly and (if requested)  confirm such notice
in writing,  (1)when a prospectus or any prospectus supplement or post-effective
amendment has been filed, and, with respect to the Registration Statement or any

                                       13
<PAGE>
post-effective amendment, when the same has become effective, (2) of any request
by the SEC for amendments or supplements  to the  Registration  Statement or the
related  prospectus  or for  additional  information  regarding  IBC, (3) of the
issuance  by the SEC of any  stop  order  suspending  the  effectiveness  of the
Registration  Statement or the initiation of any  proceedings  for that purpose,
(4) of  the  receipt  by  Empyrean  of  any  notification  with  respect  to the
suspension of the  qualification  or exemption from  qualification of any of the
Shares or the Option Shares for sale in any  jurisdiction  or the  initiation or
threatening of any proceeding for such purpose,  and (5) of the happening of any
event that  requires  the making of any changes in the  Registration  Statement,
prospectus or documents  incorporated  or deemed to be  incorporated  therein by
reference so that they will not contain any untrue  statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading;

               (iv) use its best  efforts to prevent  the  issuance  of any stop
order or suspension of effectiveness of the Registration  Statement or to obtain
at the earliest  possible  moment the  withdrawal  of any order  suspending  the
effectiveness of the Registration Statement, or the lifting of any suspension of
the qualification or exemption from qualification of any Shares or Option Shares
for sale in any jurisdiction in the United States;

               (v)  furnish  to  IBC,   counsel   for  IBC  and  each   managing
underwriter,  if any,  without  charge,  one conformed copy of the  Registration
Statement,  as  declared  effective  by  the  SEC,  and of  each  post-effective
amendment thereto, in each case including financial statements and schedules and
all exhibits and reports  incorporated or deemed to be  incorporated  therein by
reference; and deliver, without charge, such number of copies of the preliminary
prospectus,  any amended preliminary  prospectus,  each final prospectus and any

                                       14
<PAGE>
post- effective  amendment or supplement  thereto, as IBC may reasonably request
in order to  facilitate  the  disposition  of the Shares or Option Shares of IBC
covered by the Registration Statement in conformity with the requirements of the
Securities Act;

               (vi)  prior to any  public  offering  of Shares or Option  Shares
covered by the  Registration  Statement,  register  or qualify  such  Shares and
Option  Shares for offer and sale under the United  States state  securities  or
Blue Sky laws of such  jurisdictions as IBC shall reasonably request in writing,
to  keep  such  registration  or  qualification  in  effect  for so long as such
registration  remains  in  effect,  and  take  any  other  action  which  may be
reasonably necessary or advisable to enable IBC to consummate the disposition of
the Shares and Option  Shares in such  jurisdictions;  provided,  however,  that
Empyrean shall in no event be required to qualify  generally to do business as a
foreign  corporation or as a dealer in any  jurisdiction  where it is not at the
time so qualified or to execute or file a general  consent to service of process
in any such  jurisdiction  where it has not  theretofore  done so or to take any
action  that would  subject it to general  service of process or taxation in any
such jurisdiction where it is not then subject;

               (vii) upon the  occurrence of any event  contemplated  by Section
7.2(a)(iii)(5) above, promptly prepare and furnish to IBC a reasonable number of
copies of a supplement or post-effective amendment to the Registration Statement
or  the  related  prospectus  or  any  document  incorporated  or  deemed  to be
incorporated  therein by reference and file any other required document so that,
as thereafter  delivered to the  purchasers of the Shares or Option Shares being
sold  thereunder,  such  prospectus  will not contain an untrue  statement  of a
material fact or omit to state any material  fact required to be stated  therein

                                       15
<PAGE>
or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading;

               (viii)  promptly list all Shares and Option Shares covered by the
Registration   Statement  on  any  national  securities  exchange  or  automated
inter-dealer quotation system on which similar securities issued by Empyrean are
then  listed or quoted,  if the  listing or quoting of such  securities  is then
permitted under the rules of such exchange or quotation system;

               (ix) make  available  for  inspection  by IBC, and any  attorney,
accountant or other agent retained by IBC (collectively,  the "Inspectors"), all
financial and other records and other information, pertinent corporate documents
and properties of Empyrean and its subsidiaries  (collectively,  the "Records"),
as shall be reasonably  necessary to enable them to exercise their due diligence
responsibilities;  provided, however, that the Records that Empyrean determines,
in good faith,  to be  confidential  and which it  notifies  the  Inspectors  in
writing are confidential shall not be disclosed to any Inspector unless (x) such
Inspector signs a confidentiality  agreement reasonably satisfactory to Empyrean
(which shall permit the disclosure of such Records in the Registration Statement
or  the  related  prospectus  if  necessary  to  avoid  or  correct  a  material
misstatement  in  or  material  omission  from  the  Registration  Statement  or
prospectus)  or (y) either (i) the  disclosure  of such  Records is necessary to
avoid or correct a  misstatement  or omission in the  Registration  Statement or
(ii) the  release of such  Records is ordered  pursuant  to a subpoena  or other
order from a court of competent  jurisdiction;  provided further,  however, that
(A) any decision  regarding the disclosure of information  pursuant to subclause
(i)  shall be made only  after  consultation  with  counsel  for the  applicable
Inspectors and Empyrean and (B) with respect to any release of Records  pursuant
to  subclause  (ii),  IBC agrees that it shall,  promptly  after  learning  that

                                       16
<PAGE>
disclosure of such Records is sought in a court having jurisdiction, give notice
to Empyrean so that Empyrean,  at Empyrean's expense, may undertake  appropriate
action to prevent disclosure of such Records;

               (x) comply with all applicable  rules and regulations of the SEC,
and not file (or  withdraw or  correct)  any  amendment  or  supplement  to such
registration statement or prospectus to which IBC shall have reasonably objected
in writing on the grounds that such  amendment or supplement  does not comply in
all material  respects with the  requirements  of the  Securities  Act or of the
rules or regulations thereunder; and

               (xi)  provide a transfer  agent and  register  for all Shares and
Option  Shares  covered  by such  registration  statement  not  later  than  the
effective date of such registration statement.

          (b) In connection with the preparation and filing of each registration
statement under the Securities Act, Empyrean will give IBC, the underwriters, if
any, and their respective counsel and accountants, the reasonable opportunity to
participate in the preparation of such registration  statement,  each prospectus
included therein or filed with the SEC and each amendment  thereof or supplement
thereto,  and will  give each of them  such  reasonable  access to its books and
records and such  reasonable  opportunities  to discuss the business of Empyrean
with its officers and the independent  public accountants who have certified its
financial statements as shall be necessary to conduct a reasonable investigation
within the meaning of the Securities Act.

     7.3 Registration  Expenses.  Whether or not the  Registration  Statement is
filed or becomes  effective,  Empyrean  shall pay all costs,  fees and  expenses
incident  to  Empyrean's  performance  of or  compliance  with  this  Agreement,

                                       17
<PAGE>
including (i) all registration and filing fees, including NASD filing fees, (ii)
all fees and  expenses of  compliance  with state  securities  or Blue Sky laws,
including  reasonable fees and disbursements of Empyrean's counsel in connection
therewith,  (iii) printing expenses (including expenses of printing certificates
for the Shares and Option Shares and of printing prospectuses if the printing of
prospectuses  is  requested by IBC or the managing  underwriter,  if any),  (iv)
messenger,  telephone  and  delivery  expenses,  (v) fees and  disbursements  of
counsel for Empyrean,  (vi) fees and disbursements of all independent  certified
public accountants of Empyrean (including expenses of any "cold comfort" letters
required in connection  with this  Agreement) and all other persons  retained by
Empyrean  in  connection  with  the  Registration  Statement,   (vii)  fees  and
disbursements of one counsel,  other than Empyrean's  counsel, to represent IBC,
(viii) fees and disbursements of underwriters customarily paid by the issuers or
sellers of securities  and (ix) all other costs,  fees and expenses  incident to
Empyrean's  performance or compliance with this Agreement.  Notwithstanding  the
foregoing,  any  discounts,  commissions  or  brokers'  fees or fees of  similar
securities  industry  professionals  and  any  transfer  taxes  relating  to the
disposition  of the Shares or Option  Shares by IBC,  will be payable by IBC and
Empyrean will have no obligation to pay any such amounts.

     7.4 Indemnification by Empyrean.  Empyrean shall,  without limitation as to
time, indemnify and hold harmless, to the full extent permitted by law, IBC, its
officers,  directors  and agents and  employees,  each person who  controls  IBC
(within  the  meaning of Section 15 of the  Securities  Act or Section 20 of the
Exchange  Act) and the  officers,  directors,  agents and employees of each such
controlling  person,  from and  against  any and all  losses,  claims,  damages,
liabilities,   judgment,   costs  (including,   without  limitation,   costs  of
investigation,   preparation  and  reasonable   attorneys'  fees)  and  expenses
(collectively,  "Losses"), as incurred,  arising out of or based upon any untrue

                                       18
<PAGE>
or alleged  untrue  statement of a material fact  contained in the  Registration
Statement or the related  prospectus or in any amendment or supplement  thereto,
or in any preliminary  prospectus,  or arising out of or based upon any omission
or  alleged  omission  of a  material  fact  required  to be stated  therein  or
necessary to make the statements  therein not misleading,  except insofar as the
same are based upon any  information  furnished  in writing to Empyrean by or on
behalf of IBC expressly for use therein.

     7.5  Indemnification by IBC. In connection with the Registration  Statement
in which IBC is  participating,  IBC shall  indemnify and hold harmless,  to the
full extent  permitted by law,  Empyrean,  its directors,  officers,  agents and
employees,  each person who controls  Empyrean (within the meaning of Section 15
of the  Securities  Act and Section 20 of the Exchange  Act) and the  directors,
officers,  agents or employees of such controlling persons, from and against all
Losses,  as incurred,  arising out of or based upon any untrue or alleged untrue
statement  of a material  fact  contained in the  Registration  Statement or the
related prospectus or any amendment or supplement thereto, or in any preliminary
prospectus,  or arising out of or based upon any omission or alleged omission of
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements therein not misleading,  to the extent, but only to the extent,  that
such untrue or alleged untrue statement or omission or alleged omission is based
upon any  information  furnished  in writing by or on behalf of IBC to  Empyrean
expressly for use therein.

     7.6 Conduct of Indemnification Proceedings. If any person shall be entitled
to indemnity under Section 7.4 or 7.5 (an "indemnified party"), such indemnified
party shall give prompt notice to the party from which such  indemnity is sought
(the "indemnifying party") of any claim or of the commencement of any proceeding
with  respect  to  which  such  indemnified  party  seeks   indemnification   or
contribution pursuant hereto; provided, however, that the delay or failure to so

                                       19
<PAGE>
notify the indemnifying  party shall not relieve the indemnifying party from any
obligation  or liability  except to the extent that the  indemnifying  party has
been prejudiced by such delay or failure.  The indemnifying party shall have the
right,  exercisable by giving  written  notice to an indemnified  party promptly
after the receipt of written notice from such indemnified party of such claim or
proceeding,  to assume, at the indemnifying  party's expense, the defense of any
such  claim  or  proceeding,   with  counsel  reasonably  satisfactory  to  such
indemnified party;  provided,  however, that (i) an indemnified party shall have
the right to employ  separate  counsel  in any such claim or  proceeding  and to
participate in the defense  thereof,  but the fees and expenses of such separate
counsel  shall be at the  expense  of such  indemnified  party  unless:  (1) the
indemnifying  party agrees to pay such fees and expenses;  (2) the  indemnifying
party fails  promptly to assume the defense of such claim or proceeding or fails
to employ counsel reasonably  satisfactory to such indemnified party; or (3) the
named parties to any proceeding  (including impleaded parties) include both such
indemnified  party and the indemnifying  party, and such indemnified party shall
have been  advised  by  counsel  that  there may be one or more  legal  defenses
available to it that are  inconsistent  with those available to the indemnifying
party or that a conflict of  interest is likely to exist among such  indemnified
party and any other  indemnified  parties (in which case the indemnifying  party
shall not have the right to assume the  defense of such action on behalf of such
indemnified party); and (ii) subject to clause (3) above, the indemnifying party
shall not, in  connection  with any one such claim or proceeding or separate but
substantially similar or related claims or proceedings in the same jurisdiction,
arising out of the same general allegations or circumstances,  be liable for the
fees and expenses of more than one firm of attorneys  (together with appropriate
local counsel) at any time for all of the indemnified  parties,  or for fees and

                                       20
<PAGE>
expenses that are not reasonable.  Whether or not such defense is assumed by the
indemnifying  party,  such  indemnifying  party  shall  not  be  subject  to any
liability for any  settlement  made without its consent (which consent shall not
be unreasonably withheld).  The indemnifying party shall not consent to entry of
any  judgment  or enter  into any  settlement  unless (i) there is no finding or
admission  of any  violation  of any  rights of any  person and no effect on any
other  claims that may be made  against  the  indemnified  party,  (ii) the sole
relief  provided is monetary  damages that are paid in full by the  indemnifying
party and (iii) such judgment or settlement  includes as an  unconditional  term
thereof the giving by the claimant or plaintiff to such  indemnified  party of a
release, in form and substance reasonably satisfactory to the indemnified party,
from all  liability  in  respect  of such  claim or  litigation  for which  such
indemnified party would be entitled to indemnification hereunder.

     7.7 Investment Statements.  IBC understands that neither the Shares nor the
Option Shares have been  registered  under the Securities Act or under any state
securities  or "blue sky" laws,  and,  except as  provided  in the  Section  7.1
herein,  the Empyrean has no obligation to file a registration  statement  under
the Securities Act in respect of the Shares or the Option Shares and, therefore,
the Shares or the Option  Shares  cannot be offered or sold by IBC in the United
States without  registration under the Securities Act and the securities laws of
all  applicable   states  of  the  United  States,   unless  an  exemption  from
registration is available or registration is not required.  IBC also understands
that the Shares and Option  Shares are being  offered  and sold  pursuant  to an
exemption from  registration  contained in the Securities Act based in part upon
IBC's  representations  contained in the  Agreement.  IBC hereby  represents and
warrants to Empyrean as follows:

                                       21
<PAGE>
          (a) IBC  Bears  Economic  Risk.  IBC  has  substantial  experience  in
evaluating  and  investing in private  placement  transactions  of securities in
companies similar to Empyrean so that it is capable of evaluating the merits and
risks of its  investment  in  Empyrean  and has the  capacity to protect its own
interests.  IBC must  bear the  economic  risk of this  investment  indefinitely
unless the Shares or the Option Shares are registered pursuant to the Securities
Act, or an exemption from registration is available.  IBC understands that there
is no assurance  that any exemption from  registration  under the Securities Act
will be available and that, even if available,  such exemption may not allow the
IBC to transfer all or any portion of the Shares or the Option  Shares under the
circumstances, in the amounts or at the times IBC might propose.

          (b) Acquisition  for Own Account.  IBC is acquiring the Shares and the
Option Shares for IBC's own account.

          (c) IBC Can Protect Its  Interest.  IBC  represents  that by reason of
its, or of its  management's,  business  or  financial  experience,  IBC has the
capacity  to protect  its own  interests  in  connection  with the  transactions
contemplated in this Agreement.  IBC is not a corporation,  trust or partnership
specifically formed for the purpose of consummating these transactions.

          (d)  Accredited  Investor.  IBC  represents  that it is an "accredited
investor" within the meaning of Regulation D under the Securities Act.

          (e) Legend.  Upon initial  issuance and thereafter  until  transferred
pursuant to an effective  registration  statement  under the  Securities Act and
qualified under  applicable  state securities or blue sky laws, or until receipt
by  Empyrean of a written  opinion of counsel to IBC  reasonably  acceptable  to
Empyrean  to the  effect  that such  legend is not  required  in order to ensure

                                       22
<PAGE>
compliance with the Securities Act and state securities laws, the certificate or
certificates  representing  any  Shares or  Option  Shares  shall  bear a legend
reading substantially as follows:

     THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN  REGISTERED
     UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR ANY STATE SECURITIES LAWS
     AND MAY NOT BE TRANSFERRED,  SOLD OR OTHERWISE  DISPOSED OF EXCEPT PURSUANT
     TO AN EFFECTIVE  REGISTRATION OR PURSUANT TO AN EXEMPTION FROM REGISTRATION
     THEREUNDER.

     7.8 Failure to go Effective.  (a) In the event the  Registration  Statement
has not gone  effective on or prior to the 90th  calendar day following the date
on which the Registration  Statement,  as amended,  is filed with the Securities
and Exchange  Commission or if the Registration  Statement has gone effective on
any date  thereafter on which during the Applicable  Period,  with the allowance
for and after the  passage of a 60-day cure  period  pursuant to which  Empyrean
shall have had the  opportunity  to make the  Registration  Statement  effective
within such Applicable Period, the Registration Statement is no longer effective
(the "Default Date"), then:

               (i) on  the  30th  business  day  following  such  Default  Date,
Empyrean shall issue to IBC 100,000
shares of Empyrean's common stock; and

               (ii) on every successive 30-day  anniversary of the Default Date,
in the event the  Registration  Statement is not  effective on such  anniversary
date, Empyrean shall issue to IBC 100,000 shares of Empyrean Common Stock.

                                       23
<PAGE>
          (b)  Following the Default Date and until the  Registration  Statement
shall have gone  effective,  Empyrean  agrees to  indemnify  IBC,  in the manner
hereafter provided, for any loss on the Sale of Indemnified Shares. For purposes
of this Section 7.8 (b):

               (i) a "Loss"  with  respect  to a Sale of any  share of  Empyrean
common stock shall be the difference,  if any,  between (1) the closing price of
such share of common stock on the  securities  exchange or  automated  quotation
system on which  transactions  in such shares of common stock are effected  (the
"Closing  Price") and (2) the per share price realized by IBC in connection with
such sale.

               (ii) "Indemnified Shares" shall mean the greater of (A) 1,000,000
shares of Empyrean  common stock or (B) such number of shares of Empyrean common
stock having an aggregate  market value, as measured by the Closing Price on the
date of such sale, of $1,000,000.

               (iii) a "Sale" shall mean a bona-fide,  arm's length  transaction
effected  by IBC with a third  party (not an  affiliate  of IBC)  pursuant to an
applicable exemption from Federal and state securities laws.

          (c) In the event  Empyrean is required to  indemnify  IBC  pursuant to
Section  7.8(b)  above,  then,  within  30 days of the  date of the  Sale of the
Indemnified  Shares,  Empyrean  agrees  to pay for such  loss on the Sale of the
Indemnified  Shares (i) in cash or (ii) by the  issuance  of shares of  Empyrean
capital stock to IBC.

     7.9 Shares  Subject to Voting  Agreement.  The Shares and the Option Shares
shall be subject to the terms and provisions of the Voting  Agreement.  Pursuant
to the terms of the Voting Agreement,  IBC shall be free at any time to sell any
or all of the Shares or Option Shares to third parties, whether by public resale
pursuant  to an  effective  registration  statement  or  pursuant  to any  valid

                                       24
<PAGE>
exemption from the registration  requirements under applicable federal and state
securities  laws.  The  removal  and  applicability  of the voting  restrictions
relating to such Shares and Option  Shares sold by IBC to third parties shall be
governed by the provisions of the Voting Agreement.

8. NEW PRODUCT DEVELOPMENT; NON-COMPETITION COVENANTS.

     8.1 New Product  Development.  The parties contemplate that the development
of new  Licensed  Products  for sale by  Empyrean in the United  States,  IBC in
Brazil  and  IBC-Empyrean,  L.L.C.  in  the  remainder  of  the  world  will  be
co-ordinated by a four-person  team to include  medical/scientific  personnel of
IBC (two people) and marketing personnel of Empyrean (two people), and such team
will consider new product development in light of mutually-agreed  upon criteria
that take into account both scientific and marketing issues.

     8.2 IBC and  Empyrean  Covenants  Relating to the World,  except the United
States  and  Brazil.  Each of IBC and  Empyrean  covenants  to each other and to
IBC-Empyrean,  L.L.C.  that neither IBC nor Empyrean,  respectively,  will sell,
market or  distribute  in the  Territory  any product  which is in any  material
manner  competitive  with any  Licensed  Product  then being  sold,  marketed or
distributed by IBC-Empyrean, L.L.C. in any such country.

     8.3 Sales by  IBC-Empyrean,  L.L.C. in the United States or Brazil.  In the
event any  distributor or customer of  IBC-Empyrean,  L.L.C.  sells any Licensed
Products in the United States or Brazil, IBC or Empyrean as the case may be, may
provide notice to IBC-Empyrean,  L.L.C. of such third party sales. IBC-Empyrean,
L.L.C.  agrees to take all action  necessary and  appropriate to cease all sales
from  IBC-Empyrean,  L.L.C.  to such  customer or  distributor,  unless  another
appropriate action is approved by IBC-Empyrean. L.L.C.

                                       25
<PAGE>
9. OPTIMA  LITIGATION.  In the event any court of law with  jurisdiction  in the
Optima  Litigation  enters any judgment or  interlocutory  order which limits or
precludes  the right of Empyrean,  from the date of such  judgment or order,  to
use,  have used,  sell or have sold the Licensed  Product  anywhere in the world
except Brazil, then in such event:

               (i) the parties agree and consent that  Empyrean  shall be deemed
damaged  thereby.  The issue of the amount of damage (and only such issue) shall
be  submitted  by the  parties  to  arbitration  pursuant  to the  "fast  track"
procedures established by the American Arbitration Association and in accordance
with Section 14.3 hereof; and

               (ii) in order to secure any  obligation  owed by IBC to  Empyrean
resulting from such arbitration, IBC shall, to the extent then permitted by law,
upon commencement of the arbitration,  assign to Empyrean, or otherwise grant to
Empyrean the highest priority  perfected  security  interest IBC is permitted to
assign or otherwise  grant in, all of IBC's rights,  benefits and/or interest in
commercializing the Licensed Products in the United States.

10. REPRESENTATIONS & WARRANTIES BY EMPYREAN. Empyrean represents and warrants
    to IBC that:

     10.1  Organization  and  Good  Standing.  Empyrean  is a  corporation  duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of the
jurisdiction in which it is incorporated and has the requisite power to carry on
its business as now being conducted.

     10.2  Authority;  Noncontravention.  Empyrean has the  requisite  corporate
power  and  authority  to  enter  into  this  Agreement  and to  consummate  the
transactions  contemplated by this Agreement. The execution and delivery of this
Agreement  by Empyrean  and the  consummation  by  Empyrean of the  transactions
contemplated  hereby have been duly authorized by all necessary corporate action

                                       26
<PAGE>
on the part of Empyrean.  This Agreement has been duly executed and delivered by
Empyrean and constitutes a valid and binding obligation of Empyrean, enforceable
against Empyrean in accordance with its terms,  except that such  enforceability
(i) may be limited by bankruptcy,  insolvency,  moratorium or other similar laws
affecting or relating to the enforcement of creditors' rights generally and (ii)
is subject to general principles of equity.

          (a) The  execution  and delivery of this  Agreement  does not, and the
consummation of the  transactions  contemplated by this Agreement and compliance
with the provisions of this Agreement will not,  conflict with, or result in any
violation  of or  default  (with or  without  notice or lapse of time,  or both)
under, or give rise to a right of  termination,  cancellation or acceleration of
any obligation or to loss of a material benefit under, or result in the creation
of any lien  upon any of the  properties  or assets  of  Empyrean  or any of its
subsidiaries  pursuant to, any provision of (i) the certificate of incorporation
or  by-laws  of  Empyrean  or  any  provision  of  the  comparable  charter,  or
organizational  documents  of any of its  subsidiaries,  (ii) any loan or credit
agreement,  note, bond,  mortgage,  indenture,  material lease or other material
agreement,  instrument,  permit,  concession  franchise or license applicable to
Empyrean or any of its  subsidiaries or their respective  properties,  assets or
business or (iii) subject to the governmental filings and other matters referred
to in clause (c) below, any statute, law, rule, regulation,  judgment,  order or
decree  applicable to Empyrean or any of its  subsidiaries  or their  respective
properties or assets, other than in the case of clauses (ii) and (iii), any such
conflicts,  violations,  defaults,  rights or liens that  individually or in the
aggregate would not (x) have a material  adverse effect on Empyrean,  (y) impair
in any material respect the ability of Empyrean to perform its obligations under
this Agreement or (z) prevent or materially delay the consummation of any of the
transactions contemplated by this Agreement.

                                       27
<PAGE>
          (b) No consent,  approval, order or authorization of, or registration,
declaration or filing with, any federal, state or local government or any court,
administrative  agency,   regulatory  body,  commission  or  other  governmental
authority  or agency,  domestic  or foreign,  is required by or with  respect to
Empyrean  or any of its  subsidiaries  in  connection  with  the  execution  and
delivery of this  Agreement by Empyrean or the  consummation  by Empyrean of the
transactions  contemplated  by this Agreement  other than (i) the Form S-4, (ii)
the IBC-Empyrean,  L.L.C. Certificate and (iii) such other consents,  approvals,
orders, authorizations,  registrations,  declarations and filings the failure of
which to be obtained or made would not, individually or in the aggregate, have a
material  adverse  effect  on  Empyrean  or  prevent  or  materially  delay  the
consummation of any of the transactions contemplated by this Agreement.

     10.3. Litigation. With the exception of the Optima Litigation,  there is no
action,   suit,  claim,  audit,   investigation  or  legal,   administrative  or
arbitration  proceeding  pending or, to the  knowledge of  Empyrean,  threatened
against or affecting Empyrean,  whether civil or criminal in nature,  whether or
not purportedly on behalf of Empyrean and whether before or by any  Governmental
Agency,  nor, to the  knowledge of  Empyrean,  is there any basis for any of the
foregoing.  There  is no  judgment,  decree,  injunction,  rule or  order of any
Governmental  Agency  outstanding  against Empyrean.  Empyrean is not in default
under any judgment, decree, injunction or order.

11. REPRESENTATIONS & WARRANTIES BY IBC. IBC represents and warrants to Empyrean
    that:

     11.1  Organization and Good Standing.  IBC is a corporation duly organized,
validly  existing and in good  standing  under the laws of the  jurisdiction  in
which it is incorporated and has the requisite power to carry on its business as
now being conducted.

                                       28
<PAGE>
     11.2 Authority; Noncontravention. IBC has the requisite corporate power and
authority  to enter  into this  Agreement  and to  consummate  the  transactions
contemplated by this Agreement.  The execution and delivery of this Agreement by
IBC and the  consummation by IBC of the  transactions  contemplated  hereby have
been duly authorized by all necessary  corporate action on the part of IBC. This
Agreement has been duly  executed and  delivered by IBC and  constitutes a valid
and binding  obligation of IBC,  enforceable  against IBC in accordance with its
terms,  except  that  such  enforceability  (i) may be  limited  by  bankruptcy,
insolvency,  moratorium  or other  similar  laws  affecting  or  relating to the
enforcement  of  creditors'  rights  generally  and (ii) is  subject  to general
principles of equity.

          (a) The  execution  and  delivery of this  Agreement  do not,  and the
consummation of the  transactions  contemplated by this Agreement and compliance
with the provisions of this Agreement will not,  conflict with, or result in any
violation  of or  default  (with or  without  notice or lapse of time,  or both)
under, or give rise to a right of  termination,  cancellation or acceleration of
any obligation or to loss of a material benefit under, or result in the creation
of  any  lien  upon  any  of  the  properties  or  assets  of  IBC or any of its
subsidiaries  pursuant to, any provision of (i) the certificate of incorporation
or by-laws of IBC or any provision of the comparable  charter, or organizational
documents of any of its subsidiaries,  (ii) any loan or credit agreement,  note,
bond,  mortgage,   indenture,   material  lease  or  other  material  agreement,
instrument,  permit, concession franchise or license applicable to IBC or any of
its  subsidiaries or their  respective  properties,  assets or business or (iii)
subject to the governmental  filings and other matters referred to in clause (c)
below, any statute, law, rule, regulation,  judgment, order or decree applicable
to IBC or any of its  subsidiaries  or their  respective  properties  or assets,
other  than  in the  case  of  clauses  (ii)  and  (iii),  any  such  conflicts,
violations,  defaults,  rights or liens that  individually  or in the  aggregate

                                       29
<PAGE>
would not (x) have a material  adverse effect on IBC, (y) impair in any material
respect the ability of IBC to perform its  obligations  under this  Agreement or
(z) prevent or  materially  delay the  consummation  of any of the  transactions
contemplated by this Agreement.

          (b) No consent,  approval, order or authorization of, or registration,
declaration or filing with, any federal, state or local government or any court,
administrative  agency,   regulatory  body,  commission  or  other  governmental
authority or agency,  domestic or foreign, is required by or with respect to IBC
or any of its subsidiaries in connection with the execution and delivery of this
Agreement by IBC or the consummation by IBC of the transactions  contemplated by
this Agreement  (excluding  such consents,  approvals,  orders,  authorizations,
registrations,  declarations  and filings the failure of which to be obtained or
made would not, individually or in the aggregate, have a material adverse effect
on  IBC  or  prevent  or  materially  delay  the  consummation  of  any  of  the
transactions contemplated by this Agreement.

     11.3  Litigation.  With  the  exception  of  the  Optima  Litigation  and a
potential claim by Farida Darbar against IBC, there is no action,  suit,  claim,
audit, investigation or legal,  administrative or arbitration proceeding pending
or, to the knowledge of IBC,  threatened against or affecting IBC, whether civil
or criminal in nature,  whether or not  purportedly on behalf of IBC and whether
before or by any Governmental Agency, nor, to the knowledge of IBC, is there any
basis for any of the foregoing. There is no judgment,  decree, injunction,  rule
or order of any  Governmental  Agency  outstanding  against  IBC.  IBC is not in
default under any judgment, decree, injunction or order.

                                       30
<PAGE>
12.  SURVIVAL  OF  REPRESENTATIONS  AND  WARRANTIES.   All  representations  and
warranties  contained  herein or in any  certification  or instrument  delivered
pursuant to this  Agreement,  any Empyrean  Agreement or any IBC Agreement shall
survive the execution and delivery hereof or thereof, respectively.

13. INDEMNIFICATION.

     13.1  Indemnification  by Empyrean.  Without prejudice to the provisions of
Section 7.4 hereof relating to the  Registration  Statement (such Section 7.4 to
be controlling with respect to the circumstances  addressed  therein),  Empyrean
agrees to indemnify, save and hold harmless IBC and its Affiliates,  and its and
their  respective   representatives,   from  and  against  all  costs,   losses,
liabilities  and damages  (including,  without  limitation,  attorneys' fees and
expenses)  (collectively,  "Damages") incurred in connection with or arising out
of or  resulting  from the breach of any  representation,  warranty  or covenant
contained herein or in any Empyrean Agreement. The term "losses" as used in this
Section 13.1 hereof is not limited to matters  asserted by third parties against
IBC,  its  Affiliates  or  representatives,  but  includes  losses  incurred  or
sustained in the absence of third party claims.

     13.2 Indemnification by IBC. Without prejudice to the provisions of Section
7.5 hereof relating to the Registration  Statement and Section 9 hereof relating
to the Optima  Litigation (such Section 7.5 and Section 9 to be controlling with
respect to the circumstances therein addressed),  IBC agrees to indemnify,  save
and  hold  harmless  Empyrean,  its  Affiliates,  and its and  their  respective
representatives,  from and against any and all  Damages  incurred in  connection
with or  arising  out of or  resulting  from the  breach of any  representation,
warranty or covenant contained in any IBC Agreement.

                                       31
<PAGE>
     13.3  Conduct  of  Indemnification  Proceedings.  If any  person  shall  be
entitled to indemnity under Section 13.1 or 13.2, such  indemnified  party shall
give prompt notice to the party from which such indemnity is sought of any claim
or of the  commencement of any proceeding with respect to which such indemnified
party seeks indemnification or contribution pursuant hereto; provided,  however,
that the delay or failure to so notify the indemnifying  party shall not relieve
the  indemnifying  party from any  obligation or liability  except to the extent
that the  indemnifying  party has been prejudiced by such delay or failure.  The
indemnifying  party shall have the right to assume, at the indemnifying  party's
expense, the defense of any such claim or proceeding.

                                       32
<PAGE>
14. APPLICABLE LAW.

     14.1 This  Agreement,  its terms and conditions and all business  conducted
hereunder  shall be  governed  and  interpreted  under  the laws of the State of
Florida, without regard to conflict of laws provisions.

     14.2 The  parties  will  first  attempt to settle  each and every  dispute,
controversy  or  claim,  whether  based  in  contract,   tort,  statute,  fraud,
misrepresentation, or any other legal theory, arising out of or relating to this
Agreement  ("Dispute(s)"),  through  good faith  negotiations.  Except for court
actions  specifically allowed in the IBC Documents and Empyrean Documents or for
any actions  brought for wrongful  termination  or to seek  termination  of this
Agreement,  any Dispute not resolved  within 30 days or such other period as the
parties  mutually  agree in writing,  will be then  settled by final and binding
arbitration in accordance with this Section 14.

     14.3 Any dispute  arbitrated in accordance with the terms of this agreement
shall be conducted  in  Miami-Dade  County or Palm Beach  County  Florida by one
neutral arbitrator,  in accordance with the then current Commercial  Arbitration
Rules of the American Arbitration  Association (the "AAA"). Each party will bear
its own  expenses  and the  parties  will  equally  share the  filing  and other
administrative fees of the AAA and the expenses of the arbitrator.  An award may
be confirmed and judgment  entered in any court having  competent  jurisdiction.
The arbitrator  will not have the power to award any  consequential  or punitive
damages.   The  arbitrability  of  any  Dispute,   including  those  as  to  the
enforceability of this Section, the applicability of statutes of limitations and
questions of issue preclusion, will be determined solely by the arbitrator. This
Section  will be governed  and  enforced  under the Federal  Arbitration  Act, 9
U.S.C. Sections 1 to 16. The local law of the State of Florida,  except its laws
or  arbitration  and  choice  of laws,  will  apply to all  substantive  matters

                                       33
<PAGE>
pertaining  to this  Agreement.  Any party may seek a temporary  injunction in a
court of competent  jurisdiction to the limited extent necessary to preserve the
status quo during the pendency of final  resolution  of a Dispute in  accordance
with this Section.  The statute(s) of limitation  applicable to any Dispute will
be tolled  upon  initiation  of the  Dispute  resolution  procedures  under this
Section and will remain tolled until the Dispute is resolved under this Section.

     14.4 In the  event  any  provision  of this  Agreement  shall be held to be
invalid,  illegal or  unenforceable,  the  remaining  terms shall remain in full
force and effect,  to effectuate  this Agreement in accordance  with its intent.
Headings, title and subtitles of this Agreement are for convenience of reference
only and are not to be considered in construing the terms of this Agreement.

15. SOLE AND COMPLETE AGREEMENT.

     15.1 This  Agreement is the sole and  complete  statement of the parties of
their rights and  obligations  with respect to the subject matter  hereof.  This
Agreement is an  integrated  agreement and replaces and  supersedes  any and all
previous  obligations  and  agreements  between the parties.  The parties hereto
recognize and agree that no  representations or warranties have been made except
as set forth in this  Agreement.  Except as may otherwise be expressly  provided
herein,  by signing this Agreement the parties expressly release each other from
any and  all  existing  obligations  that  pre-date  this  Agreement  as if such
obligations  have been fully  performed and  satisfied.  Any  amendments to this
Agreement shall be in writing and executed by both parties hereto.

                                       34
<PAGE>
16. NOTICES.

     16.1  All  notices,  requests,  demands,  instructions,  consents  or other
communications  required or permitted to be given under this Agreement  shall be
in  writing  and  shall be  deemed  to have  been  duly  given if (i)  delivered
personally,  (ii) mailed  postage  prepaid by  certified  mail,  return  receipt
requests,  (iii)  sent  by  a  nationally  recognized  express  courier  service
requiring a signature by the recipient,  postage or delivery charges prepaid, at
the address hereinafter  specified,  or to such other address as the parties may
advise each other in writing from time to time. Any notice shall be addressed as
follows:

                           As to IBC:

                           Ms. Sara Gomez de Ferro
                           International Bioscience Corporation
                           777 South Flagler Drive
                           Phillips Point Building
                           East Tower, Suite 909
                           West Palm Beach, Florida 33401

                           With a copy to:

                           Mr. Joseph L. Raia, Esq.
                           Holtzman, Krinzman, Equels & Furia
                           2601 South Bayshore Drive, Suite 600
                           Miami, Florida 33133

                           As to Empyrean:

                           Mr. Richard C. Adamany
                           Empyrean Bioscience, Inc.
                           23800 Commerce Park Road, Suite A
                           Cleveland, Ohio 44122

                                       35
<PAGE>
                           With a copy to:

                           Mr. Richard H. Kronthal, Esq.
                           Kaye, Scholer, Fierman, Hays & Handler,, LLP
                           425 Park Avenue
                           New York, NY  10022

17. ASSIGNMENT.

     This Agreement shall be binding on and inure to the benefit of the parties.
This  Agreement  may not be assigned by either party  without the prior  written
consent of the other party hereto.

                                       36
<PAGE>
     IN WITNESS  WHEREOF,  the  parties  hereto do hereby  sign,  enter into and
acknowledge this Agreement on the date first written above.

                                        INTERNATIONAL BIOSCIENCE CORPORATION

                                        By:_____________________________________

                                        Title:__________________________________

                                        EMPYREAN BIOSCIENCE, INC.

                                        By:_____________________________________

                                        Title:__________________________________

                                       37

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