Document:

exhibit419.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EMPLOYMENT
AGREEMENT

     

    This
Agreement made effective the 1st day of November, 2007.

     

    BETWEEN:

     

    ViRexx
Medical Corp.

     

    a body
corporate duly arranged pursuant

    to the
laws of the Province of Alberta

    (hereinafter
referred to as “ViRexx”),

     

    - and
-

     

    Brent
Johnston

     

    of the
City of Edmonton, in the Province of Alberta

    (hereinafter
referred to as “Johnston”)

     

    WHEREAS ViRexx carries on the
business of a biopharmaceutical company focused on developing and
commercializing therapeutic products for the treatment of chronic hepatitis B,
hepatitis C and selected solid tumors (hereinafter called the
“Business”);

     

    AND WHEREAS ViRexx and Johnston
(hereinafter sometimes referred
to as the “Parties” or singularly as a “Party”) acknowledge mutual benefit in
entering into this employment agreement (hereinafter called the
“Agreement”).

     

    NOW THEREFORE in consideration
of the mutual covenants and promises herein contained, the parties hereto agree
as follows:

     

     

    ARTICLE
1       – SCOPE OF EMPLOYMENT

     

    · ViRexx
hereby employs and appoints Johnston to the position of Acting Chief Financial
Officer which employment and position is based in ViRexx’s Edmonton, Alberta
office.  Johnston hereby accepts such employment.

     

    · Johnston
shall serve ViRexx and shall perform on behalf of ViRexx such reasonable duties
consistent with the position of Acting Chief Financial Officer as may from time
to time be required or authorized by ViRexx, without restricting the generality
of the foregoing, shall include:

     

    
      	
              ·  

            	
              discharging
      those duties and responsibilities set out in the Employee Services &
      Obligations attached as Schedule “A”, which may be amended from time to
      time by ViRexx, so long as those amended duties and responsibilities are
      consistent with the duties of an Acting Chief Financial Officer;
      and

            

    

     

    
      	
              ·  

            	
              using
      his best efforts to promote the interests and goodwill of
      ViRexx.

            

    

     

    · Johnston
shall report to the Chief Executive Officer and Chief Operating Officer of
ViRexx. Johnston shall report fully on all matters arising from his duties and
responsibilities as Acting Chief Financial Officer and advise, to the best of
his ability, and in
accordance with reasonable business standards, on business matters that may
arise from time to time during the term of this Agreement.

     

    · During
the term of this Agreement, Johnston shall not provide any services to any other
biopharmaceutical business, industry or other enterprise that is directly
engaged in an activity that is similar to the Business, or enter into any
contracts requiring the use of his associations with persons relating to the
Business, his abilities or any other matter whatsoever relating to his knowledge
and reputation, insofar as it relates to any activity or undertaking of
whatsoever nature or kind similar to the Business, without the express written
consent of ViRexx first had and obtained.

     

     

    ARTICLE
2       – EFFECTIVE DATE AND TERM OF
EMPLOYMENT

     

    · This
Agreement shall be effective on the date both parties sign the Agreement and
duties of employment shall commence on or about November 1, 2007 [?] (the
“Effective Date”), and the employment of Johnston shall continue unless
terminated in accordance with the provisions of Article
10 hereof.

     

     

    ARTICLE
3       – EXCLUSIVE SERVICE

     

    · During
the term of his employment with ViRexx, Johnston shall well and faithfully serve
ViRexx and devote the whole of his time and attention during business hours to
the Business of ViRexx, and shall not, without the consent in writing of
ViRexx:

     

    
      	
              ·  

            	
              directly
      or indirectly engage in any other business or occupation, or become a
      director, owner, employee or agent of any other company, firm, joint
      venture, individual or other entity whatsoever, which is involved, related
      to or interested in any business similar to or in competition, directly or
      indirectly, with the Business in the Territory (as defined in Section 11.1 herein);
or

            

    

     

    
      	
              ·  

            	
              directly
      or indirectly engage in or become concerned in or interested in any other
      business of any kind which may interfere with, restrict or conflict with
      his duties hereunder.

            

    

     

     

    ARTICLE
4       – POLICY, PRACTICE AND
PROCEDURE

     

    · Johnston
shall comply with and carry out all reasonable directions given to him, as
Acting Chief Financial Officer, by the Chief Executive Officer and Chief
Operating Officer and work closely and co-ordinate the performance of his duties
and responsibilities with the Chief Executive Officer and Chief Operating
Officer.  Johnston will carry out his duties and responsibilities to
ViRexx faithfully and diligently, and will cause the business activities of
ViRexx that are committed to his direction or control to be conducted
reasonably, and in accordance with the policies and procedures of ViRexx
applicable from time to time, including those policies and procedures set out by
ViRexx’s Board of Directors.

     

     

    ARTICLE
5       – COMPENSATION

     

    · The base
salary payable to Johnston for his service hereunder shall be one hundred and
ten thousand ($110,000.00) dollars per annum, exclusive of benefits and other
compensation (the "Base Compensation"), and shall be paid in semi-monthly
payments of 1/24 of the per annum amount throughout the term hereof, or in such
other manner as may be mutually agreed upon by Johnston and ViRexx, less any
deductions or withholdings as required by law.

     

    · Johnston’s
Base Compensation may be adjusted annually as part of the annual compensation
review processes undertaken by ViRexx for all employees.  ViRexx may
or may not increase Johnston’s Base Compensation after this review process and
any increase in his Base Compensation shall be at the sole and arbitrary
discretion of ViRexx.  Any increase in Johnston’s Base Compensation
shall reflect the same financial influences considered by ViRexx for all of its
employees.

     

     

    ARTICLE
6       – STOCK OPTION

     

    · Subject
to approval of the Board of Directors, ViRexx will grant to Johnston an option
to purchase one hundred thousand (100,000) common shares of ViRexx at an option
exercise price per share equal to the closing price of ViRexx’s common shares on
the Toronto Stock Exchange on the day immediately preceding the date that this
Agreement becomes effective (the “Stock Option”), subject to the provisions of
ViRexx’s stock option agreement and all applicable regulations and
laws.  The one hundred thousand (100,000) Options shall vest as
follows:

     

    November 1,
2007                                40,000

    May 14,
2008                                           30,000

    November 14,
2008                                           30,000

    

    The
Options shall be governed in accordance with ViRexx’s Stock Option Plan and the
exercise price shall be set in accordance with that Plan.

     

     

    ARTICLE
7      – ADDITIONAL BENEFITS

     

    After
three (3) month’s employment with ViRexx, Johnston shall be entitled to
participate fully in any benefit plans provided by ViRexx for its employees,
including ViRexx’s Registered Retirement Savings Plan whereby ViRexx’s
contribution will match Johnston’s contribution up to a maximum of three percent
(3%) of Johnston’s salary, together with any medical benefit plans and any other
employee benefit plans ViRexx may implement (collectively referred to as the
“Plans”).

     

    · Johnston
shall be entitled to four (4) weeks of paid vacation per calendar year to be
taken at such times as may be agreed upon between Johnston and the Chief
Executive Officer and/or Chief Operating Officer, taking into account the
project activity and staffing requirements of ViRexx and the need for the timely
performance of Johnston’s responsibilities.  In the event that
Johnston decides not to take all the vacation to which he is entitled in any
fiscal year, Johnston shall be entitled to carry forward this vacation
entitlement, with prior written approval of the Chief Executive Officer and/or
Chief Operating Officer, provided that the maximum accrued entitlement shall not
exceed one (1) week of vacation entitlement.

     

     

    ARTICLE
8       – REIMBURSEMENT OF EXPENSES

     

    · Johnston
shall be reimbursed for all reasonable expenses incurred by him in the course of
carrying out his duties as Acting Chief Financial Officer.

     

     

    ARTICLE
9       – CONFIDENTIALITY OBLIGATIONS

     

    · Johnston
shall not, either during the term of his employment with ViRexx or anytime
thereafter, disclose or cause to be disclosed, to any person or entity
whatsoever, unless required by law, any secrets or Confidential Information (as
defined in the Employee Confidentiality Agreement attached as Schedule “B” hereto),
concerning the business affairs or financial performance or position of ViRexx,
or any entity with which ViRexx is, or may hereafter, become
affiliated.  The parties herein agree that concurrent with their
execution of this Agreement, they shall enter into and execute the Employee
Confidentiality Agreement in the form attached as Schedule “B” hereto.

     

     

    ARTICLE
10       – TERMINATION OF EMPLOYMENT

     

    · ViRexx
may, at its option, terminate Johnston’s employment pursuant to this Agreement
in its sole discretion for any reason, without cause, upon providing Johnston
with reasonable notice pursuant to the Employment Standards Code,
Alberta.  If ViRexx terminates Johnston’s employment without just
cause and provides him with the above described notice or pay in lieu of notice,
Johnston agrees that he will have no further claims against
ViRexx.  All benefits and allowances set out in Article 5,
Article 6 and Article 7 above shall cease as of Johnston’s last day of
work, subject to any conversion rights available to Johnston under ViRexx’s
group benefit plan.  If notice is given to Johnston by ViRexx and such
notice contemplates that Johnston will remain at ViRexx to perform his duties
until the notice period ends, Johnston shall be given reasonable time to conduct
a new job search and engage in interviews with prospective
employers.

     

    · In the
event Johnston is unable to fulfill his regular duties and responsibilities as
Acting Chief Financial Officer for an aggregate of one hundred and eighty (180)
days during any twelve (12) month period (“Permanent Disability”), ViRexx shall
have the right to terminate this Agreement upon providing Johnston with sixty
(60) days notice in writing and the payment of six (6) months salary, the value
of benefits that would otherwise be received during the same period and any
accrued vacation pay as full and final settlement of ViRexx’s obligations to
Johnston pursuant to this Agreement.

     

    · ViRexx
shall have the right in its absolute discretion to terminate Johnston’s
employment for cause forthwith, without notice or payment in lieu of
notice.  For the purpose of this Agreement, “cause” shall include, in
ViRexx’s sole discretion acting reasonably, but not limited to:

     

    
      	
              (a)  

            	
              any
      material breach of the provisions of this Agreement or the Employment
      Agreement by Johnston;

            

    

     

    
      	
              (b)  

            	
              any
      intentional negligent disclosure of any Information by
      Johnston;

            

    

     

    
      	
              (c)  

            	
              conduct
      on Johnston’s part that is materially detrimental to the business or the
      financial position of ViRexx;

            

    

     

    
      	
              (d)  

            	
              personal
      conduct on Johnston’s part which is of such a serious and substantial
      nature that it would injure the reputation of ViRexx if Johnston is
      retained as an employee or;

            

    

     

    
      	
              (e)  

            	
              any
      and all omissions, commissions or other conduct which would constitute
      cause at law, in addition to the specified
  causes.

            

    

     

    · The
parties herein agree that Johnston may resign from his employment with ViRexx at
any time following the Effective Date of this Agreement on the following
terms:

     

    
      	
              ·  

            	
              Johnston
      shall provide to ViRexx thirty (30) days prior written notice of his
      resignation, or such shorter period as the parties may mutually agree (the
      “Working Notice Resignation Period”), or such notice as ViRexx in its sole
      and absolute discretion may waive in full or in part, and should ViRexx
      terminate this Agreement prior to the expiration of the Working Notice
      Resignation Period, ViRexx shall be under no further obligation to
      Johnston for any reason;

            

    

     

    
      	
              ·  

            	
              during
      the Working Notice Resignation Period, Johnston shall continue to use his
      best efforts to discharge his duties and responsibilities as Acting Chief
      Financial Officer in compliance with this
  Agreement;

            

    

     

    
      	
              ·  

            	
              Johnston’s
      employment shall terminate on the last day of the Working Notice
      Resignation Period unless terminated early by ViRexx in accordance with
      paragraph 10.4(a);
  and

            

    

     

    
      	
              ·  

            	
              all
      benefits and allowances set out in Article 5,
      Article 6 and Article
      7 above shall cease as of the last day of the Working Notice
      Resignation Period, subject to any conversion rights available to Johnston
      under the Plans.

            

    

     

     

    ARTICLE
11      – NON-COMPETITION AND
NON-SOLICITATION

     

    · Johnston
understands that he occupies a position of high fiduciary trust and confidence
within ViRexx and has acquired skills, experience and knowledge relating to
ViRexx, the Business and the customers, clients, suppliers, sub-contractors,
competitors and services of ViRexx.  It is the express intent and
agreement of Johnston that such knowledge and experience shall be used solely
and exclusively in the furtherance, or for the benefit, of the operations of
ViRexx.  Johnston agrees that in the event of his retirement or other
termination of his employment pursuant to the terms of this Agreement, Johnston
shall not, directly or indirectly, for a period of twelve (12) months following
his retirement or other termination of his employment with ViRexx, solicit,
provide service or be employed by any direct competitor of ViRexx or act in any
capacity to produce products that involve antigen complexation, cryptic antigen
presentation and/or anti-idiotype antibody induction or embolization therapy,
except with the written consent of ViRexx.

     

    · Johnston
further agrees and acknowledges that he shall not, for a period of twelve (12)
months following his retirement or other termination of his employment with
ViRexx, directly or indirectly, either as employer, consultant, agent,
principal, partner, co-venturer, shareholder, proprietor, investor, financier,
employee, director or in any other individual or representative capacity
whatsoever:

     

    
      	
              ·  

            	
              solicit,
      provide service for or be employed by any customer or joint venture
      partner of ViRexx except with the written consent of ViRexx;
      or

            

    

     

    
      	
              ·  

            	
              solicit,
      induce, encourage or facilitate any employees, consultants, suppliers or
      sub-contractors of ViRexx or any of their respective affiliates to leave
      the employment of, or the consulting, supply or sub-contractor
      relationship with, ViRexx or any of their respective
      affiliates.

            

    

     

    · Johnston
acknowledges and agrees that the covenants contained in this Agreement are
reasonably required to protect the interests of ViRexx and their affiliates, and
do not materially impact, or affect, Johnston’s ability to obtain other
employment. Johnston hereby irrevocably waives (and irrevocably agrees not to
raise) as a defence any issue of reasonableness in any proceeding to enforce
Article 11 of this Agreement, the intent of the parties hereto to provide for
the legitimate and reasonable protection of ViRexx by providing, without
limitation, for the broadest scope, the longest duration and the broadest
territory allowable by law.

     

    · The
parties further agree that in the event that any portion of the covenant
contained in this Article, or its application to any circumstance, shall be held
to be invalid or unenforceable to any extent, the remainder of the covenant or
its application to any circumstances, other than that to which it has been held
to be invalid or unenforceable, shall not be affected thereby and shall be valid
and enforceable to the fullest extent permitted by law, it being the intent of
this provision that if any of the foregoing covenant is found to be unreasonable
to any extent by a Court of competent jurisdiction adjudicating upon the
validity of this covenant, whether as to the scope of the restriction, the area
of restriction or the duration of the restriction, then such restriction shall
be reduced to that which is in fact declared reasonable by such Court, or a
subsequent Court of competent jurisdiction requested to make such a
declaration.

     

    · Notwithstanding
the above Sections of Article 11, Johnston shall be able to own up to five
(5%) percent of the issued and outstanding shares of any public corporation that
is in a business that is similar to the Business or is in competition, directly
or indirectly, with the Business.  Johnston, as of the Effective Date,
shall advise ViRexx as to which of these public corporation he owns greater than
five (5%) per cent of the issued and outstanding shares and shall within a
reasonable period of time hereafter sell down such holdings to five (5%) per
cent or less.

     

     

    ARTICLE
12       – RETURN OF MATERIALS

     

    · Johnston
acknowledges that all items of any and every nature or kind created or used by
him pursuant to the employment under this Agreement, or furnished by ViRexx to
Johnston, and all equipment, credit cards, books, records, reports, files,
manuals, literature, confidential information or other materials shall remain
and be considered the exclusive property of ViRexx at all times and shall be
surrendered to ViRexx, in good condition, promptly on the cessation or
termination of the Employee's employment irrespective of the time, manner or
cause of the termination

     

     

    ARTICLE
13      – LEGAL ADVICE

     

    · Johnston
hereby acknowledges, represents and warrants to ViRexx that he has had the time
to review, and has reviewed, this Agreement and that he has been encouraged by
ViRexx to seek independent legal advice prior to the execution and delivery of
this Agreement, and in the event that he did not avail himself of that
opportunity, he did so voluntarily, without any undue pressure, and agrees that
his failure to obtain independent legal advice shall not be used by him as a
defense to the enforcement of his obligations under this Agreement.

     

     

    ARTICLE
14       – NOTICES

     

    · Any
notice required to be given hereunder by any party shall be deemed to have been
well and sufficiently given if:

     

    
      	
              ·  

            	
              personally
      delivered to the party to whom it is intended, or if such party is a
      corporation, to an officer of that corporation;
  or

            

    

     

    
      	
              ·  

            	
              mailed
      by pre-paid registered mail, transmitted by facsimile, or delivered, to
      the address or facsimile number of the party to whom it is intended as
      follows:

            

    

     

    
      	
              ·  

            	
              if
      to ViRexx, then:

            

    

     

    ViRexx
Medical Corp.

    8223
Roper Road

    Edmonton,
Alberta  T6E 6S4

    Attention:  Chief
Executive Officer

     

    
      	
              ·  

            	
              If
      to Johnston, then:

            

    

     

    3150
Trelle Loop

    Edmonton,
AB  T6R 0A2

    

    

     

    ARTICLE
15      – ASSIGNMENT

     

    · This
Agreement and the rights and obligations of Johnston hereunder shall not be
assignable by Johnston to any other person, firm, or corporation without the
express written consent of ViRexx first had and obtained, which consent may be
unreasonably and arbitrarily withheld.  This Agreement may, at the
discretion of ViRexx be fully assigned to any purchaser of the Business, and
Johnston acknowledges and agrees that any such assignment does not operate as a
fundamental amendment to this Agreement.

     

     

    ARTICLE
16       – GOVERNING LAW AND SUBMISSION TO
JURISDICTION

     

    · This
Agreement shall be governed by and construed in accordance with the laws of the
Province of Alberta, and the parties hereby submit to the jurisdiction of the
Courts in the Province of Alberta.

     

     

    ARTICLE
17       - UNENFORCEABLE TERMS

     

    · If any
term, covenant or condition of this Agreement or the application thereof to any
Party or circumstance shall be invalid or unenforceable to any extent, the
remainder of this Agreement or application of such term, covenant or condition,
to a Party or circumstance, other than those to which it is held invalid or
unenforceable, shall not be affected thereby and each remaining term, covenant
or condition of this Agreement shall be valid and shall be enforceable to the
fullest extent permitted by law.

     

    ARTICLE
18       –  ENTIRE AGREEMENT

     

    · This
Agreement constitutes the entire agreement between the Parties hereto relating
to the subject matter hereof and supercedes all prior and contemporaneous
agreements, understandings, negotiations and discussions, whether verbal or
written, of the Parties, and there are no warranties, representations or other
agreements between the Parties in connection with the subject matter hereof
except as specifically set forth herein.

     

     

    ARTICLE
19       – NO WAIVER

     

    · No
consent or waiver, express or implied, by either Party to or of any breach of
default by the other Party in the performance by the other Party of his or its
obligations hereunder shall be deemed or construed to be a consent or waiver to
or of any other breach or default in the performance of the obligations
hereunder by such Party hereunder.  Failure on the part of either
Party to complain of any act or failure to act of the other Party, or to declare
the other Party in default, regardless of how long such failure continues, shall
not constitute a waiver by such Party of his or its rights
hereunder.

     

     

    ARTICLE
20       – HEADINGS

     

    · The
headings in this Agreement have been inserted for reference and as a matter of
convenience only, and in no way define, limit or enlarge the scope or meaning of
this Agreement or any provision herein.

     

     

    ARTICLE
21       – SINGULAR, PLURAL AND
GENDER

     

    · Whenever
the singular, plural, masculine or feminine is used throughout this Agreement,
the same shall be construed as meaning the plural, singular, masculine,
feminine, neuter, body politic or body corporate, where the fact or context so
requires.

     

     

    ARTICLE
22       – ENUREMENT

     

    · This
Agreement shall enure to the benefit of and be binding on the Parties hereto and
their respective heirs, executors, administrators and other legal
representatives, successors and permitted assigns.

     

     

    ARTICLE
23       – MODIFICATION OF AGREEMENT

     

    22.1 Any
modification to this Agreement must be in writing and signed by the Parties
herein or it shall have no effect and shall be void.

     

    IN WITNESS WHEREOF, the Parties hereto
have executed this Agreement, effective as of the day and year first above
written.

     

    
      	 
      	
              VIREXX
      MEDICAL CORP.

            
	 
      	
              Per:

            	
              /s/
      Darrell Elliott

            

    

    

     

    
      	
              SIGNED,
      SEALED AND DELIVERED in the presence of:

            	
              )

            	 
      
	
              )

            	 
      
	 
      	
              )

            	 
      
	
              /s/Shirley
      Cabrito

            	
              )

            	
              /s/Brent
      Johnston

            
	
              WITNESS

            	
              )

            	
              BRENT
      JOHNSTON

            

    

    

     

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
“A”

     

    EMPLOYEE SERVICES &
OBLIGATIONS

     

    DRAFT JOB
SPECIFICATIONS FOR VIREXX MEDICAL CORP. (“ViRexx’)

     

    Position:                                Acting
Chief Financial Officer

     

    Reports
to:                                Chief
Executive Officer and Chief Operating Officer

     

    Responsibilities:

     

    As a
member of the Executive team of ViRexx, the Acting Chief Financial Officer
will:

     

    
      	
              (a)  

            	
              carry
      out all financial planning and budgeting
  processes;

            

    

     

    
      	
              (b)  

            	
              carry
      out and be responsible for all financial matters of ViRexx including
      financial reporting to the Board of Directors, implementing proper audit
      and financial governance procedures and working with outside
      auditors;

            

    

     

    
      	
              (c)  

            	
              assist
      in development and implementation of communication and public relations
      strategies;

            

    

     

    
      	
              (d)  

            	
              provide
      advice on identification, development and implementation of new products,
      new business development strategies and
  opportunities;

            

    

     

    
      	
              (e)  

            	
              supervision
      and direction of designated employees as directed by the Chief Executive
      Officer and/or Chief Operating Officer in hiring, supervising, and
      training of such staff and administration of such personnel, including the
      development of personnel policies and procedures and salary administration
      as directed by the Chief Executive
Officer;

            

    

     

    
      	
              (f)  

            	
              dismiss
      personnel under the direction of the Chief Executive
    Officer;

            

    

     

    
      	
              (g)  

            	
              provide
      advice and input to the Chief Executive Officer, Chief Operating Officer
      and the Board of Directors as required and help to ensure that ViRexx's
      policies, procedures and programs related to its business are compatible
      with all aspects of effective
operations;

            

    

     

    
      	
              (h)  

            	
              such
      other functions as may be necessarily related to the foregoing and such
      additional duties and functions as ViRexx and the Chief Executive Officer
      and/or Chief Operating Officer shall, from time to time, agree upon;
      and

            

    

     

    
      	
              (i)  

            	
              under
      direction of the Chief Executive Officer and/or Chief Financial Officer
      delegate or assign duties as appropriate to staff and external
      experts/consultants as required provided that ViRexx shall maintain
      management responsibility over those to whom duties have been delegated
      and/or assigned.

            

    

     

    

     

    

     

    
      
        
          

           

           

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
“B”

     

    THIS
AGREEMENT made effective as of the 1st day of November, 2007.

     

    BETWEEN:

     

    VIREXX MEDICAL CORP.

    a corporation arranged pursuant to
the

    laws of Alberta,

    (hereinafter referred to as
"ViRexx"),

    OF THE FIRST PART

     

    - and
-

     

    BRENT JOHNSTON

    of the City of Edmonton

    in the Province of
Alberta

    (hereinafter referred to as the
"Employee"),

    OF THE SECOND PART

     

    EMPLOYEE CONFIDENTIALITY
AGREEMENT

    (hereinafter
referred to as the "Agreement")

    

     

    WHEREAS
the Employee is presently employed, or is about to be employed pursuant to an
Employment Agreement (“Employment Agreement”) dated concurrently herewith, by
ViRexx in a position of confidence and trust and under conditions where he has
or may have access to technical, confidential and secret information regarding
existing or contemplated business of ViRexx;

     

    AND
WHEREAS the Employee recognizes that as a part of the duties of his employment,
certain ideas and suggestions of interest to ViRexx, conceived or made by the
Employee while he is retained or employed by ViRexx shall be immediately made
available to and become the property of ViRexx without any further
consideration;

     

    AND
WHEREAS ViRexx desires to receive from the Employee specific covenants relating
to the non-disclosure of confidential information and ownership of Intellectual
Property, and the employment contract with the Employee is conditional on ViRexx
receiving these covenants.

     

    IN
CONSIDERATION of the premises set forth and the remuneration paid by ViRexx to
the Employee, the parties agree as follows:

     

    1.                      Definition of Confidential
Information and Intellectual Property

     

    1.1                      For
purposes of this Agreement, the term "Confidential Information", shall mean all
information, whether or not reduced to writing and whether or not patentable or
protected by copyright, which the Employee receives, received access to,
conceived or developed, in whole or in part, directly or indirectly, in
connection with the Employee's relationship with ViRexx, and includes, but is
not limited to:

     

    
      	
               
      

            	
              (i)

            	
              information
      concerning bioinformatics, medinformatics and cheminformatics software,
      databases and services, including but not limited to, source codes, object
      codes, flowcharts and programs and other materials whatsoever (tangible or
      intangible and machine readable or human
  readable);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              information
      concerning products and services provided to the global community to
      bridge the gap between biology in vitro (in the test
      tube) and biology in
      silico (in the computer);

            

    

     

    (iii)           information
concerning the handling and analysis of DNA and protein sequence
data;

     

    
      	
               
      

            	
              (iv)

            	
              information
      concerning drug development and development processes, including but not
      limited to, designing optimal drug molecules for treating
      diseases;

            

    

     

    
      	
               
      

            	
              (v)

            	
              information
      concerning pre-clinical, analytical and formulation
    services;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              technology
      developed for high throughput screening of new chemical entities or drug
      levels;

            

    

     

    
      	
               
      

            	
              (vii)

            	
              discoveries
      relating to, and developments of, patented in-house
      formulations;

            

    

     

    
      	
               
      

            	
              (viii)

            	
              information
      concerning research, development and commercialization of vaccines and
      antibodies for preventative or therapeutic use including, without
      restriction, those based upon peptide-synthetic carrier protection vaccine
      formulations for infectious
disease;

            

    

     

    
      	
               
      

            	
              (ix)

            	
              formulations,
      including but not limited to, the development of new formulations for
      existing drugs, assessments of current formulations and the development of
      strategies for formulations of new drug chemical entities
      (NCE);

            

    

     

    
      	
               
      

            	
              (x)

            	
              information,
      drugs, delivery systems, devices or models under a patent, or potential or
      pending patent, whether or not such a patent is in fact obtained or
      expires;

            

    

     

    
      	
               
      

            	
              (xi)

            	
              test
      results, clinical studies, clinical trial results, and all research
      whatsoever;

            

    

     

    
      	
               
      

            	
              (xii)

            	
              products
      and devices developed, patents, discoveries, concepts, compilations and
      ideas of any nature whatsoever including, without limitation, the nature
      and results of research and development activities, the software,
      molecular and analytical tools to facilitate research in the fields of
      biology, medicine and pharmaceutical science, and processes, formulas,
      inventions, technology, techniques, computer programs and models, designs,
      drawings, and specifications;

            

    

     

    
      	
               
      

            	
              (xiii)

            	
              production
      processes, marketing techniques and arrangements, marketing materials,
      promotions, demos and publications, mailing lists, purchasing information,
      pricing policies, quoting procedures, financial information, customer and
      prospect names and requirements, Employee, customer, supplier and
      distributor data and other materials or information relating to ViRexx's
      business and activities and the manner in which ViRexx does business,
      including but not limited to the names of drug firms, biotechnology firms,
      contact research organizations (CRO), generic drug manufacturers,
      pharmaceutical companies, pre-clinical clients, principal investigators
      and alliances with whom ViRexx has or may have a business relationship
      with,

            

    

     

    
      	
               
      

            	
              (xiv)

            	
              any
      other materials or information related to, or that is or may be used in,
      the business, trade or activities of ViRexx
  which:

            

    

     

    
      	
               
      

            	
              (a)

            	
              are
      not generally known to others engaged in similar business or
      activities;

            

    

     

    
      	
               
      

            	
              (b)

            	
              has
      an economic value from not being generally known;
  and

            

    

     

    
      	
               
      

            	
              (c)

            	
              is
      the subject of efforts that are reasonable in the circumstances to
      maintain its secrecy; and

            

    

     

    
      	
               
      

            	
              (xiiv)

            	
              any
      financial information or information relating to the day to day business
      of ViRexx

            

    

    

     

    1.2                      Failure
to mark any of the Confidential Information as confidential, proprietary or
protected shall not affect its status as part of the Confidential Information
under the terms of this Agreement.

     

    1.3                      For
purposes of this Agreement, the term "Confidential Information" shall not
include information which:

     

    
      	
               
      

            	
              (i)

            	
              has
      been in the possession of the Employee prior to the date of the
      commencement of the Employee's employment with ViRexx including, without
      limitation, information pertaining to the matters set out in Section 1.1,
      if any;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              has
      been publicly available prior to coming into the possession of ViRexx;
      and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              becomes
      publicly available without a breach by the Employee of:  i) this
      Agreement; ii) any other agreement between the Employee and ViRexx; or
      iii) any lawful duty owed by the Employee to
  ViRexx.

            

    

     

    The
information described in paragraph 1.3(i) above is hereinafter called the
"Employee Information".

     

    1.4                      For
purposes of this Agreement, the term “Intellectual Property”, shall mean all
copyrights, registered and unregistered trademarks, trade names, logos,
licenses, patent and patent applications, trade secrets, computer software,
know-how and all other intellectual property owned by, licensed to or used by
ViRexx.

     

    2.                      Treatment of
Information

     

    2.1                      The
Employee acknowledges that in his position, or in any other position the
Employee may hold, in and as a result of the Employee's relationship with
ViRexx, the Employee shall, or may be making use of, acquiring or adding to
Confidential Information about certain matters and things which are confidential
to ViRexx and which information is the exclusive property of
ViRexx.

     

    2.2                      As
a material inducement for ViRexx to retain the services of the Employee, the
Employee agrees that during his term as an Employee with ViRexx, and for a term
of five (5) years following the date of expiry or termination of the Employment
Agreement or expiry or termination of any extension or renewal thereof, the
Employee shall not, except with the prior written consent of ViRexx, which
consent may be arbitrarily withheld, or except if the Employee is acting in the
course of his duties on behalf and for the benefit of ViRexx in connection with
ViRexx's business practices and policies, directly or indirectly, disclose,
divulge, reveal, report, publish, transfer or use for any purpose, or cause to
be disclosed, divulged, revealed, reported, published, transferred or used for
any purpose, the Confidential Information which has been obtained, created,
learned or disclosed by, or to, the Employee.

     

    2.3                      Disclosure
of any Confidential Information of ViRexx by the Employee shall not be
prohibited if the disclosure is directly pursuant to a valid and existing order
of a governing court or other governmental body or agency within Canada;
provided, however that:

     

    
      	
               
      

            	
              (i)

            	
              the
      Employee shall first provide immediate written notice to ViRexx of any
      possible or prospective order, or proceeding pursuant to which any order
      may result; and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              ViRexx
      shall have been afforded a reasonable opportunity to prevent or limit any
      disclosure.

            

    

     

    3.                      Ownership of ViRexx Intellectual
Property and Confidential Information

     

    3.1                      The
Employee agrees that all right, title and interest in any Confidential
Information and any Intellectual Property pertaining to the business of ViRexx
shall be and shall remain the exclusive property of ViRexx.

     

    3.2                      The
Employee agrees immediately to disclose in writing to ViRexx all Confidential
Information and any Intellectual Property pertaining to the business of ViRexx
developed in whole or in part by the Employee during the term of the Employee's
relationship with ViRexx and does hereby assign to ViRexx, any right, title or
interest the Employee may have in the Confidential Information or the
Intellectual Property.  The Employee agrees to execute any instruments
and to do all other things reasonably requested by ViRexx, in order to vest more
fully in ViRexx, all ownership rights in those items transferred by the Employee
to ViRexx.

     

    3.3                      All
notes, data, tapes, reference items, sketches, drawings, memoranda, computer
information, memory, and all disks, records, inventions, technology and all
intellectual property and other materials in any way relating to any of the
Confidential Information or to the business of ViRexx shall belong exclusively
to ViRexx and the Employee does hereby transfer any interest he may have in it
and agrees to turn it over to ViRexx including but not limited to all originals
and all copies of the materials in, or that at any time whatsoever were in, the
Employee's possession, power or control, at the request of ViRexx, or in the
absence of a request, on the termination of the Employee's relationship with
ViRexx, howsoever the Employee's termination occurs, including but not limited
to, the Employee's retirement or death.

     

    4.                      Injunctive Relief

     

    4.1                      The
Employee understands and agrees that ViRexx shall suffer irreparable harm in the
event that the Employee breaches any of the Employee's obligations under this
Agreement and that monetary damages shall be inadequate to compensate ViRexx for
the breach.  Accordingly the Employee agrees that, in the event of a
breach or threatened or potential breach by the Employee of any of the
provisions of this Agreement, ViRexx, in addition to and not in limitation of
any other rights, remedies or damages available to ViRexx at law or in equity,
shall be entitled to an interim injunction, interlocutory injunction, and
permanent injunction, in order to prevent or to restrain any such breach by the
Employee, or by any or all of the Employee's partners, co-venturers, ViRexx's
servants, agents, representatives and any and all persons directly or indirectly
acting for, on behalf of, or with the Employee.

     

    5.                      Accounting for Profits and
Indemnification

     

    5.1                      The
Employee agrees that if the Employee shall violate any of the Employee's
covenants under this Agreement, ViRexx shall be entitled to an accounting and
repayment of all profits, compensation, royalties, commissions, remunerations or
benefits which the Employee directly or indirectly shall have realized or may
realize relating to, growing out of, or in connection with any violations of
this Agreement.  This remedy shall be in addition to and not in
limitation of any injunctive relief at law or in equity or otherwise under this
Agreement.

     

    5.2                      The
Employee agrees to defend, hold harmless and indemnify ViRexx against and in
respect of:

     

    
      	
               
      

            	
              (i)

            	
              any
      and all losses and damages resulting from, relating or incident to, or
      arising out of any misrepresentation or breach by the Employee of any
      warranty or covenant made or contained in this
  Agreement;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      and all actions, suits, proceedings, claims demands, judgments, costs, and
      expenses (including all legal fees, on a solicitor and his own client
      basis), incident to the foregoing.

            

    

     

    6.                      Severability

     

    6.1                      In
the event that any provision or part of any provision of this Agreement shall be
deemed to be void or invalid by a court of competent jurisdiction, the remaining
provisions or parts shall be and remain in full force and effect.  The
Employee agrees that the breach or alleged breach by ViRexx of:

     

    
      	
               
      

            	
              (i)

            	
              any
      covenant contained in another agreement (if any) between ViRexx and the
      Employee or;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      obligation owed to the Employee by
ViRexx;

            

    

     

    shall not
affect the validity or enforceability of the covenants and agreements of the
Employee set forth in this Agreement.

     

    7.                      No Prior
Agreements

     

    7.1                      The
Employee represents to the best of the Employee's knowledge that the Employee's
performance of all the terms of this Agreement do not and shall not breach any
fiduciary or other duty or any covenant, agreement or understanding (including
any agreement relating to any proprietary information, knowledge or data
acquired by the Employee in confidence, trust or otherwise prior to the
Employee's employment by ViRexx) to which the Employee is a party or by the
terms of which the Employee may be bound. The Employee covenants and agrees that
the Employee shall not disclose to ViRexx, or induce ViRexx to use any
proprietary information, knowledge or data belonging to any previous employer or
others.  The Employee further covenants and agrees not to enter into
any agreement or understanding, either written or oral, in conflict with the
provisions of this Agreement.

     

    8.                      Employee's Status

     

    8.1                      Nothing
in this Agreement shall be construed as constituting a commitment, guarantee,
agreement or understanding of any kind or nature that ViRexx shall continue to
employ the Employee.  No change of the Employee's duties as an
Employee of ViRexx shall result in, or be deemed to be, a modification of the
terms of this Agreement.

     

    9.                      Successors

     

    9.1                      This
Agreement shall be binding on and shall enure to the benefit of ViRexx and the
Employee, and their respective heirs, personal and legal representatives,
successors and assigns.  As used in this Agreement, the term "ViRexx"
shall also include any corporation or entity which is a parent, subsidiary, or
affiliate of ViRexx.  The Employee consents to the enforcement of any
and all provisions of this Agreement by or for the benefit of ViRexx as to any
other corporation or entity regarding any of the Confidential
Information.

     

    10.                      Governing Law

     

    10.1                      This
Agreement shall at all times and in all respects be governed by the laws of the
Province of Alberta and all parties hereto shall irrevocably attorn to the
courts of competent jurisdiction of the Province of Alberta.

     

    11.                      Notices

     

    11.1                      Any
notice required or permitted to be given to the Employee shall be sufficiently
given if delivered to the Employee personally or if mailed by registered mail to
the Employee's address last known to ViRexx.

     

    11.2                      Any
notice required or permitted to be given to ViRexx shall be sufficiently given
if delivered personally or faxed or if mailed by registered mail
to:

     

    8223 Roper Road

    Edmonton, Alberta

    T6E
6S4                                           Fax:
(780) 436-0038

    

    or at
such other address as the Employer may advise the Employee in
writing.

     

    11.3                      Any
notice given by mail shall be deemed to have been given forty eight (48) hours
after the time it is posted.  Any notice given by personal delivery or
fax shall be deemed to have been given on the day of personal delivery or
faxing.

     

    11.4                      Either
one of the parties may advise the other, in the manner aforesaid, of any change
of address for the giving of notices.

     

    12.                      Entire Agreement

     

    12.1                      
It is acknowledged that the parties are parties to an employment agreement and
that this Agreement and the employment agreement along with any future agreement
respecting options or warrants contain the entire agreements and understandings
by and between ViRexx and the Employee with respect to the subject matter, and
no representations, promises, agreements or understandings, written or oral,
express or implied shall be valid or binding unless the same is in writing and
signed by the party intended to be bound.  No waiver of any provision
of this Agreement shall be valid unless it is in writing and signed by the party
against whom the waiver is sought to be enforced; moreover, no valid waiver of
any provision of this Agreement shall be deemed a waiver of any other provision
of this Agreement at the time or shall be deemed a valid waiver of the provision
at any other time.

     

    13.                      Assignment

     

    13.1                      This
Agreement is assignable by ViRexx without the prior consent of the
Employee.

     

    13.2                      As
this Agreement is personal in nature with respect to the Employee, it is not
assignable by the Employee under any circumstance.

     

    14.                      Gender

     

    14.1                      Whenever
the singular is used, it shall be deemed to extend to and include the
plural.  Where one gender is used, it shall include all
genders.

     

    15.                      Headings

     

    15.1                      The
headings and other captions in this Agreement are for convenience and reference
only and are not to be construed in any way as additions or limitations of the
covenants and agreements contained in this Agreement.

     

    
      
        
          

           

           

           

        

         

      

      
         

        
          

        

      

      
         

        
          .

          

           

        

      

    

    16.                      Effective Date

     

    16.1                      This
Agreement is effective as of the date and year first above mentioned and
indicated herein.

     

    IN
WITNESS WHEREOF, ViRexx and the Employee have duly executed this Agreement,
where applicable by their respective corporate officers hereunto duly
authorized.

     

    
      	 
      	
              VIREXX
      MEDICAL CORP.

            
	 
      	
              Per:

            	 
      
	 
      	 
      	 
      
	 
      	
              Per:

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              SIGNED,
      SEALED AND DELIVERED

            	
              )

            	 
      
	
              in
      the presence of:

            	
              )

            	 
      
	 
      	
              )

            	 
      
	 
      	
              )

            	
              BRENT
      JOHNSTON

            
	 
      	
              )

              )

            	 
      
	
              WITNESS

            	
              )exhibit420.htm

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EMPLOYMENT
AGREEMENT

     

    THIS
AGREEMENT made as at the 1st day of January 2007.

     

     

    BETWEEN:

    VIREXX
MEDICAL CORP. 

    having an
office at the City of Edmonton,

    in the
Province of Alberta,

    

    (hereinafter
called the "Employer"),

     

    OF THE
FIRST PART,

     

    - and
-

     

    HUBERT
ENG

    of the
City of Edmonton,

    in the
Province of Alberta,

    

    (hereinafter
called the "Employee"),

     

    OF THE
SECOND PART,

     

    WHEREAS:

     

    
      	
              A.  

            	
              The
      Employee has agreed to terms of employment with the Employer in the
      capacity and position of Director, AIT Platform;
  and

            

    

     

    
      	
              B.  

            	
              The
      Employer and the Employee wish to confirm their relationship upon the
      terms and conditions as provided in this
  Agreement.

            

    

     

    NOW THEREFORE THIS AGREEMENT
WITNESSES that in consideration of the mutual covenants and agreements
referred to herein, and the sum of TEN DOLLARS ($10) now paid or to be paid on
behalf of the Employer to the Employee, the receipt and sufficiency of which
consideration is hereby acknowledged, the parties covenant and agree as
follows:

     

     

    ARTICLE
1.                                INTERPRETATION

     

    1.1           Number and
Gender

     

    Words
importing the singular number only shall include the plural and vice versa and
words importing the masculine gender shall include the feminine gender and words
importing persons shall include firms and corporations and vice
versa.

     

    1.2           Division

     

    The
division of this Agreement into Articles and Sections forms no part of this
Agreement and shall be deemed to have been inserted and done for convenience
only.

     

    1.3           Headings

     

    The
headings of all the Articles and Sections hereof and the table of contents, if
any, are inserted for convenience of reference only and shall not affect the
construction or interpretation of this Agreement.

     

    1.4           Recitals

     

    All
recitals to this Agreement shall be included in and form part of this
Agreement.

     

    1.5           Continuance of
Agreement

     

    The
provisions of this Agreement shall continue in effect until the final
performance of all the respective obligations set forth herein or until amended
or altered by agreement in writing.

     

    1.6           Agreement
Supersedes

     

    This
Agreement represents a composite of all previous agreements, if any, reached to
date and that hereafter, this Agreement and the Employee Confidentiality
Agreement, a copy of which is annexed hereto as Schedule “B”, are the only
agreements between the parties with respect to the matters contemplated by this
Agreement, and shall supersede and replace any discussion letter or form of
Agreement, oral or written, which may exist as of the date of execution and
delivery of this Agreement.

     

    1.7           Applicable
Law

     

    This
Agreement shall be governed by the laws of the Province of Alberta.

     

    1.8           Schedules

     

    The
following schedules are incorporated into and form part of this
Agreement:

     

    Schedule
"A"                                -
Position Profile

     

    Schedule
"B"                                -
Employee Confidentiality Agreement

     

    Schedule
"B" to this Agreement is referenced in Article 6 and is in full force and effect
when fully executed.

     

    1.9           Effective
Date

     

    Notwithstanding
the date of execution of this Agreement by the Employer and the Employee, this
Agreement shall be deemed for all purposes to be effective as at and from the
1st day of January 2007 (the "Effective Date").

     

    1.10           Severability

     

    In the
event that any provision or part of this Agreement shall be deemed void or
invalid by a court of competent jurisdiction, the remaining provisions or parts
shall be and remain in full force and effect.

     

    1.1           Modification of
Agreement

     

    Any
modification to this Agreement must be in writing and signed by the parties or
it shall have no effect and shall be void.

     

     

    ARTICLE
2.                                EMPLOYMENT

     

    2.1           Employment

     

    The
Employer hereby employs the Employee to be the Employer's Director, AIT Platform
for the purposes of undertaking the duties of and exercising the powers of that
office.  The Employee represents and warrants to the Employer that the
Employee has the required skills and experience to perform the duties and
exercise the responsibilities required of the Employee as Director, AIT
Platform. In carrying out his duties and responsibilities, the Employee shall
comply with all lawful and reasonable instructions as may be given by the
President of the Employer and shall comply with all government and other
professional requirements, rules, by-laws and regulations.

     

    2.2           Employee's
Undertaking

     

    2.2.1                      The
Employee, in collaboration with the Employer's President and Board of Directors
shall be responsible for such reasonable duties consistent with the position of
Director, AIT Platform as may from time to time be required or authorized by the
President and/or the Board of Directors of the Employer, without restricting the
generality of the foregoing, shall include:

     

    
      	
              2.2.1.1  

            	
              discharging
      those duties and responsibilities set out in the Position Profile attached
      as Schedule "A", which may be amended from time to time by the Employer,
      so long as those amended duties and responsibilities are consistent with
      the duties of a Director, AIT Platform;
and

            

    

     

    
      	
              2.2.1.2  

            	
              using
      his best efforts to promote the interests and goodwill of the
      Employer.

            

    

     

    2.2.2                      In
the performance of the responsibilities listed in Section 2.2, the Employee may
under direction of the President of the Corporation delegate or assign duties as
appropriate to staff and external experts/consultants as required provided that
the Employee shall maintain management responsibility over those to whom duties
have been delegated and/or assigned.

     

    
      	
              2.3  

            	
              Time
      Devotion

            

    

     

    The
Employee shall, during the term of this Agreement, devote his full business
time, attention and ability to the affairs of the Employer in furtherance of the
Employer's best interest as is necessary to fulfill his duties
hereunder.  It is understood that the hours of work involved are going
to vary and be irregular and shall include reasonably sufficient hours required
to meet the objectives of employment herein described.

     

    
      	
              2.4  

            	
              Serving the
      Company

            

    

     

    The
Employee shall well and faithfully serve the Employer and use his best efforts
to promote the interests thereof.  In carrying out his duties,
functions and responsibilities, the Employee shall comply with, adhere to,
execute and fulfill all of the Employer's written policies, procedures, rules
and regulations, amended in writing by the Employer from time to
time.  It is understood and agreed to by the Employee that his
assignments, duties, responsibilities and reporting arrangements may be changed
by the Employer in its sole discretion without causing termination of this
Agreement.

     

    
      	
              2.5  

            	
              Business
      Conduct

            

    

     

    The
Employee agrees that in all matters affecting the conduct of the Employer's
business, the Employee shall maintain a standard of conduct which in all
respects meets a reasonable standard of business conduct in the industry in
which the Employer operates.

     

    
      	
              2.6  

            	
              Employer
      Powers

            

    

     

    Subject
always to this Agreement and all applicable laws, the Employer shall have the
power and authority to review all work performed by the Employee and to
determine standards of performance; provided always, that the Employer's
exercise of such power and authority shall be reasonably done in good faith and
be consistent with its prior practice.

     

    
      	
              2.7  

            	
              Responsibility of
      Employee

            

    

     

    The
Employee assumes no responsibility under this Agreement other than to render the
services called for hereunder in good faith.

     

    
      	
              2.8  

            	
              Liability of the
      Employee

            

    

     

    The
Employee will not be liable to the Employer or others except by reason of acts
constituting bad faith, willful misconduct, negligence or reckless disregard of
his duties.

     

    
      	
              2.9  

            	
              Exercise of
      Duties

            

    

     

    At all
times, the Employee shall act on a basis which is fair and reasonable to the
Employer and shall exercise his powers and discharge his duties under this
Agreement honestly, in good faith and in the best interests of the Employer, and
in connection therewith shall exercise that degree of care, diligence and skill
that a reasonably prudent person would exercise in comparable
circumstances.

     

    
      	
              2.10  

            	
              Location

            

    

     

    The
Employee's place of employment shall be at the head office of the Employer
located at 8223 Roper Road, NW, Edmonton, Alberta or such other place as the
Board of Directors directs. Relocation: If the place of employment changes such
that relocation of the Employee is necessary, the Employer shall pay all
reasonable expenses the Employee incurs regarding relocation.

     

    
      	
              2.11  

            	
              Records and
      Materials

            

    

     

    Upon
expiry or termination of the Employee's employment with the Employer, the
Employee shall deliver to the Employer all proprietary information and all
Confidential Information referred to in Article 6, including but not restricted
to all records and materials with respect to the Employer which are in his
possession and/or under his control.

     

    
      	
              2.12  

            	
              No
      Interest

            

    

     

    Nothing
herein shall be construed to give the Employee any interest in the tangible or
intangible assets of the Employer.

     

     

    ARTICLE
3.                                REMUNERATION

     

    
      	
              3.1  

            	
              Compensation of the
      Employee

            

    

     

    Throughout
the term of this Agreement, commencing January 1, 2007, the Employer shall pay
to the Employee a salary, set from time to time by the Board of Directors,
stated as an annualized amount but payable semi-monthly in arrears in equal
monthly installments for each year during the term of the Employee's employment
and commencing on the Effective Date.  The Employee's salary at the
commencement of and throughout the term of this Agreement shall be no less than
NINETY THOUSAND ($90,000.00)
DOLLARS Canadian per annum. The Employee's compensation and performance
shall be reviewed by the Board of Directors annually at least one month prior to
each anniversary date of commencement.  The Employee shall have the
right to provide information to the Board of Directors on all factors relevant
to the Board's decision on any increase in compensation

     

    
      	
              3.2  

            	
              Bonuses

            

    

     

    For each
year of the term of this Employment Agreement and any extension or renewal
thereof, the Employee is eligible to be considered for a bonus to be decided on
by the Board of Directors. The current Compensation Plan calls for a bonus of
20% for this level of employment. Considering that ViRexx is in Development
phase and currently does not have income inflow, Management reserves the right
whether or not to pay this bonus subject to the availability of
cash.

     

    
      	
              3.3  

            	
              Benefits

            

    

     

    The
Employer shall provide the Employee with participation in any benefit programs
as they are made generally available by the Employer to its other employees
including life, disability, health and dental insurance, Alberta Health Care and
Parking.

     

    
      	
              3.4  

            	
              Pension

            

    

     

    The
Employer agrees to make matching annual contributions to the Employee's RRSP up
to a maximum of 3% of the Employee's salary.

     

    
      	
              3.5  

            	
              Stock
      Options

            

    

     

    
      	
              3.5.1  

            	
              The
      Employee will be eligible to participate in the Employer's stock option
      program or plan as may be determined and/or amended from time to time in
      the sole discretion of Employer and as approved by the Board of Directors
      subject to any applicable regulatory or necessary shareholder
      approvals.

            

    

     

    
      	
              3.5.2  

            	
              It
      is hereby acknowledged that any option granted to the Employee shall be
      within the sole discretion of the Board of Directors subject to any
      applicable regulatory or necessary shareholder
  approvals.

            

    

     

    
      	
              3.5.3  

            	
              If
      the Employee's employment is terminated or deemed terminated by the
      Employer pursuant to Section 5.3
      then all unvested options granted to the Employee shall vest immediately
      upon termination and the Employee shall have ninety (90) days from the
      date of termination to exercise his options unless such ninety (90) day
      period is extended by the Board of
Directors.

            

    

     

    
      	
              3.5.4  

            	
              If
      the Employee is terminated or deemed terminated pursuant to Section 5.5,
      all options not yet vested shall be vested immediately upon termination or
      deemed terminated for Good Reason and the stock option exercise period
      will be extended from ninety (90) days to twelve (12)
    months.

            

    

     

    
      	
              3.6  

            	
              Car Allowance and
      Business Expenses

            

    

     

    The
Employee shall be paid a car mileage allowance for longer trips away from
Edmonton and his reasonable business expenses, including business-related mobile
phone charges, shall be reimbursed by the Employer.

     

    
      	
              3.7  

            	
              Additional
      Benefits

            

    

     

    The
Employer shall pay all professional association and development fees and all
course costs which are incurred from time to time by the Employee in maintaining
his professional designations and upgrading and/or continuing his education and
development to improve the performance of his duties.

     

     

    ARTICLE
4.                                VACATION

     

    The
Employee shall be entitled to a period of four weeks' paid vacation per calendar
year.  The Employee will provide the Employer with reasonable written
notice of his intention to take any vacation days.  The Employee shall
be allowed to accumulate one week's vacation per year from the previous year but
at no time shall the Employee be entitled to accumulate unused weeks such that
he has more than five (5) weeks of vacation in any one (1) year.

     

     

    ARTICLE
5.                                TERM
AND TERMINATION

     

    
      	
              5.1  

            	
              Term

            

    

     

    This
Agreement commenced on the Effective Date and shall continue indefinitely unless
terminated earlier.

     

    
      	
              5.2  

            	
              Termination by the
      Employer for Cause

            

    

     

    The Board
of Directors, by majority decision acting reasonably, shall have the right to
terminate the Employee's employment for cause, including, but without
restricting the generality of the foregoing, upon the occurrence of one or more
of the following default events:

     

    
      	
              5.2.1  

            	
              the
      Employee's failure or refusal to comply with policies established from
      time to time by the Board of Directors, provided always that such policies
      are documented in writing and communicated to the Employee and are
      reasonable and consistent with the Employer's best
    interests;

            

    

     

    
      	
              5.2.2  

            	
              the
      Employee's failure or refusal to comply with the directions of the Board
      of Directors or the Board of Directors determine, in their sole
      discretion, that the Employee's performance of his duties under this
      Agreement is unsatisfactory;

            

    

     

    
      	
              5.2.3  

            	
              the
      Employee's fraud, dishonesty or other willful misconduct or the Employee's
      negligence;

            

    

     

    
      	
              5.2.4  

            	
              if
      the Employee engages in any criminal activity or unethical conduct which,
      in the sole discretion of the Employer, is judged to seriously impair the
      Employee's ability to perform his duties hereunder, or would or could
      impair the business reputation of the Employer, including, but not limited
      to, where the Employee is convicted of any indictable criminal
      offence;

            

    

     

    
      	
              5.2.5  

            	
              any
      actual or material breach of the provisions of this
    Agreement;

            

    

     

    
      	
              5.2.6  

            	
              the
      Employee is adjudged bankrupt.

            

    

     

    
      	
              5.3  

            	
              Termination by the
      Employee and the Employer Without Cause or Change of Control of the
      Employees

            

    

     

    5.3.1                      This
Agreement may be terminated by the Employer or the Employee without cause in the
following manner in the specified circumstances:

     

    
      	
              5.3.1.1  

            	
              by
      the Employee on giving ninety (90) days notice in writing to the Employer,
      the Employer may waive the notice in whole or in
  part;

            

    

     

    
      	
              5.3.1.2  

            	
              by
      the Employer on giving one (1) years notice in writing to the Employee or
      payment in lieu of notice inclusive of all benefits except for those
      detailed in the paragraph below;

            

    

     

    5.3.2                      None
of the payments in lieu of notice referred to in 5.3.1.1 and 5.3.1.2 above
include bonus which may be payable, the value of benefits otherwise received
over the same period and any accrued vacation pay, nor do these payments include
any reasonable out placement and relocation assistance from the Employer which
may be agreed upon as a full and final settlement to the Employee.

     

    
      	
              5.4  

            	
              Termination Upon a
      Change of Control by the Employee for Good Reason or by the Employer
      Without Cause

            

    

     

    5.4.1                      “Change of Control” for the
purposes of this Agreement means the occurrence of any one
or more of the following:

     

    
      	
              5.4.1.1  

            	
              a
      change of control of the Employer or of any material subsidiary of the
      Employer;

            

    

     

    
      	
              5.4.1.2  

            	
              the
      closing of a merger, acquisition, sale of securities, amalgamation, plan
      of arrangement, take-over bid, insider bid, issuer bid other than a normal
      course issuer bid, reorganization, exchange of assets or securities, any
      one of which results in a change of voting control of the issued and
      outstanding securities of the Employer and a subsequent election of new
      directors who gain control of the Board of Directors; sale of all or
      substantially all of the assets of the business of the Employer, a proxy
      contest resulting in appointment of new directors who take control of the
      Board of Directors; or any other change which the Board of Directors
      declares to be a Change of Control;
but

            

    

     

    
      	
              5.4.1.3  

            	
              excludes
      internal reorganizations, reverse takeovers (where the Employer remains
      the dominant entity) and transfers among the group of entities controlled
      by a substantial shareholder.

            

    

     

    5.4.2                      “Good Reason” for the purposes
of this Agreement means a material adverse change to the Employee’s terms and
conditions of employment following a Change of Control including but not limited
to:

     

    
      	
              5.4.2.1  

            	
              failure
      by the Employer to maintain the Employee in at least the same or an
      equivalent position which the Employee occupied before the Change in
      Control of the Employer;

            

    

     

    
      	
              5.4.2.2  

            	
              failure
      by the Employer to provide the Employee with compensation benefits equal
      to or greater than the Employee was receiving prior to the Change in
      Control of the Employer;

            

    

     

    
      	
              5.4.2.3  

            	
              relocation
      of Employee’s place of work to a location more than fifty (50) miles from
      it’s location immediately prior to the Change of Control;
    or

            

    

     

    
      	
              5.4.2.4  

            	
              if
      there is any material change in the Employee’s reporting relationships,
      any material reduction in the Employee’s duties, responsibilities or
      authority or any other action that has the effect of a demotion of the
      Employee: to the extent the Change of Control results in the Employer (or
      a successor to the Employer by merger, consolidation or the like),
      continuing in existence as a direct or indirect subsidiary of an acquirer,
      then the Employee shall be considered to have been demoted unless given
      the same or equivalent position, duties and authority in the ultimate
      parent of the acquirer.

            

    

     

    5.4.3                      Notwithstanding
any other provisions hereof, this Agreement may be terminated at any time within
the twelve (12) months following a Change of Control:

     

    
      	
              5.4.3.1  

            	
              by
      the Employee, for Good Reason, on giving sixty (60) days notice in writing
      to the Employer and the Employer may waive the notice in whole or in part;
      or

            

    

     

    
      	
              5.4.3.2  

            	
              by
      the Employer without cause and without
notice.

            

    

     

    5.4.4                      Upon
termination of the Agreement within twelve months following a Change of Control
either by the Employee for Good Reason as provided for in 5.4.2. above or by the
Employer without cause as provided for in 5.4.1 above, the Employee is entitled
to the following severance:

     

    
      	
              5.4.4.1  

            	
              twelve
      (12) months salary inclusive of any bonus payable for the twelve (12)
      month period;

            

    

     

    
      	
              5.4.4.2  

            	
              continuation
      for twelve (12) months of all Benefits except for those detailed in the
      paragraph below;

            

    

     

    
      	
              5.4.4.3  

            	
              immediate
      vesting of all stock options granted to the Employee;
  and

            

    

     

    
      	
              5.4.4.4  

            	
              an
      extension of the Employer's stock option exercise period from ninety (90)
      days to twelve (12) months.

            

    

     

    5.4.5                      The
severance includes the value of any bonus which may be payable but excludes the
value of benefits otherwise received, that is, parking; pension matching; car
allowance and business expenses; additional benefits of Section 3.7; any accrued
vacation pay; out placement and relocation assistance from the
Employer.

     

    5.4.6                      If
the termination does occur as described in 5.4.1 or 5.4.2, each of the salary,
bonus and benefits (“Benefits”) given to the Employee shall be equal to at least
a minimum of what they were for the year immediately prior to the Change of
Control.

     

    
      	
              5.5  

            	
              Termination of the
      Employee for Disability

            

    

     

    If the
Employee suffers from any mental or physical disability or illness which results
in the Employee being unable to substantially perform his duties for a
continuous ninety days or for periods aggregating one hundred and twenty days in
any period of three hundred and sixty five days, the Employer may terminate this
Agreement upon giving the Employee sixty days notice in writing and shall pay to
the Employee six months' salary, the value of benefits otherwise received over
the same period and any accrued vacation pay as full and final settlement to the
Employee.

     

    
      	
              5.6  

            	
              Survival of
      Agreement

            

    

     

    Notwithstanding
the termination of the Employee's employment or the termination of this
Agreement for any reason, Sections 2.2, 7.5 and Article 5 and Article 6 of this
Agreement shall not be deemed to have been terminated and shall continue in full
force and effect.

     

    5.7           Subsidiaries

     

    For the
purposes of this Agreement, employment by a corporation or other equity that is
controlled directly or indirectly by the Employer will be deemed to be
employment by the Employer.  Thus, references in this Agreement to
“Employer” include such corporations, subsidiaries, affiliates or other entities
where appropriate in context.

     

    
      	
              5.8  

            	
              Effect of
      Termination

            

    

     

    Upon
termination of this Agreement, howsoever terminated, the Employee shall be
entitled to receive compensation for services provided under this Agreement
("Earned Compensation"),
up to and including the date of termination.  However, termination of
this Agreement shall not accelerate the payment date of any monies accrued or
accruing to the Employee as a result of any Earned Compensation, or other
compensation, if any, nor shall termination vest in the Employee any right in
connection therewith unless otherwise stipulated herein.

     

    In the
event of termination of this Agreement for any reason provided in Section 5.2, 5.3 or 5.4 all rights and obligations of the
Employer and the Employee shall cease to exist immediately, except that the
Employee's and Employer's obligations under Sections 2.12, 7.5 and Article 5 and Article 6 hereof shall
survive such termination.

     

     

    ARTICLE
6.                                CONFIDENTIAL
INFORMATION AND SOLICITATION

     

    
      	
              6.1  

            	
              Confidential
      Information

            

    

     

    The
Employee shall not, either during the term of his Employment and for a period of
five years thereafter, disclose or cause to be disclosed, to any person, unless
required by law, any secrets or Confidential Information, as defined in Schedule
"B" hereto, concerning the business or affairs or financial position of the
Employer or any company with which the Employer is or may hereafter be
affiliated. This Agreement is governed by the confidentiality provisions as set
forth in Schedule "B".  PROVIDED it is agreed by the Employer that the
Employee shall have the sole discretion to decide how to manage any Confidential
Information and Intellectual Property Rights as between the Employer and the
University of Alberta given that he is employed by both simultaneously as long
as he uses reasonable practices which are consistent with practices of similar
companies.

     

    
      	
              6.2  

            	
              Non-Solicitation

            

    

     

    
      	
              6.2.1  

            	
              In
      this Section 6.2, in the context of any action taken by the Employee, the
      words "directly or
      indirectly" include any
action:

            

    

     

    
      	
              6.2.1.1  

            	
              taken
      by the Employee, for the Employee's own benefit, as the case may
      be;

            

    

     

    
      	
              6.2.1.2  

            	
              taken
      by an "Associate"
      or an "Affiliate"
      (as each term is defined in the Securities Act
      (Alberta)) of the Employee for the benefit of such Associate or
      Affiliate and/or the Employee; or

            

    

     

    
      	
              6.2.1.3  

            	
              otherwise
      taken for the benefit of any person competing with the business of the
      Employer, whether carried out directly by the Employer, or indirectly by
      any Associate, any Affiliate, any joint venture partner or any agent (the
      "Business"), by
      the Employee, whether taken individually or in partnership or jointly or
      in conjunction with any person as principal, agent, consultant, partner,
      trustee, director, officer, employee or shareholder of that person (other
      than a holding of shares listed on a Canadian or United States stock
      exchange that does not exceed 5% of the outstanding shares so
      listed).

            

    

     

    
      	
              6.2.2  

            	
              At
      any time during a period of one (1) year from the Employee ceasing to be
      employed by the Employer for any reason whatsoever (the "Restricted Period"), the
      Employee shall not, without the prior written consent of the Employer
      (which consent may be withheld by the Employer in its absolute and
      unfettered discretion), directly or indirectly, alone or in concert or in
      any manner whatsoever solicit or endeavor to solicit, or induce or
      endeavor to induce, any employee of the Business to leave his or her
      employment with the Employer or any Affiliate of the
    Employer.

            

    

     

     

    ARTICLE
7.                                GENERAL

     

    
      	
              7.1  

            	
              Further
      Acts

            

    

     

    Each of
the parties to this Agreement shall, at the request and expense of the other
party, execute and deliver any further documents and do all acts and things as
that party may reasonably require to carry out the true intent and meaning of
this Agreement.

     

    
      	
              7.2  

            	
              Time

            

    

     

    Time is
of the essence of this Agreement.

     

    
      	
              7.3  

            	
              Parties of
      Interest

            

    

     

    This
Agreement enures to the benefit of and is binding upon the Employer and the
Employee and upon their administrators, legal representative, executor,
successors and permitted assigns as applicable.

     

    
      	
              7.4  

            	
              Assignment

            

    

     

    This
Agreement may not be assigned or transferred in any manner by the
Employee.

     

    
      	
              7.5  

            	
              Employer's
      Property

            

    

     

    The
Employee acknowledges that all items of any and every nature or kind created or
used by the Employee pursuant to the Employee's employment under this Agreement,
or furnished by the Employer to the Employee, and all equipment, automobiles,
credit cards, books, records, reports, files, manuals, literature, Confidential
Information or other materials shall remain and be considered the exclusive
property of the Employer at all times and shall be surrendered to the Employer,
in good condition, promptly on the cessation or termination of the Employee's
employment irrespective of the time, manner or cause of the
termination.

     

     

    ARTICLE
8.                                NOTICE

     

    
      	
              8.1  

            	
              Manner of
      Delivery

            

    

     

    All
notices given under this Agreement shall be deemed to have been duly given only
if personally delivered, mailed by prepaid registered mail, sent by facsimile or
by electronic mail in portable document format ("PDF") addressed as
follows:

     

    TO THE
EMPLOYER:

     

    ViRexx
Medical Corp.

    8223
Roper Road, NW

    Edmonton,
Alberta  T6E 6S4

     

    TO THE
EMPLOYEE:

    

    Hubert
Eng

    3810 114
Street

    Edmonton,
AB  T6J 1M5

    

    
      	
              8.2  

            	
              When Notices Deemed
      Delivered

            

    

     

    Any
notice personally delivered in the manner set out in Section 8.1 shall be deemed given when personally
delivered or upon receipt of confirmation of delivery of facsimile or electronic
mail and any notice mailed in the manner set out in Section 8.1 shall be deemed to have been received on
the fifth regular business day next following the date of posting.

     

    
      	
              8.3  

            	
              Disruption of Mail
      Service

            

    

     

    In the
event of disruption, or threatened disruption, of regular mail service, all
notices shall be deemed to have been duly given only if personally delivered,
sent by facsimile or electronic mail.

     

    
      	
              8.4  

            	
              Change of
      Address

            

    

     

    Any party
may change his address for notice by giving a notice to that effect pursuant to
this Article 8.

     

    IN WITNESS WHEREOF this Agreement has
been made effective as on the day and year first written above.

     

    
      	 
      	
              VIREXX
      MEDICAL CORP.

            
	 
      	
              Per:

            	 
      
	 
      	
              Per:

            	
              /s/
      Marc Canton

            
	 
      	 
      	 
      
	
              SIGNED,
      SEALED AND DELIVERED in the presence of:

               

              /s/
      Tracy Smith

            	
              )

              )

              )

              )

            	
               

               

               

              /s/
      Hubert Eng

            
	
              WITNESS

            	 
      	
              HUBERT
      ENG

            

    

    

     

    
      
        
           

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
"A"

     

    POSITION
PROFILE

     

    Job
Description/Duties:

     

    Reporting
to the President and the Chief Operating Officer, the Director of the AIT
Platform will
be responsible for the AIT Platform of ViRexx Medical Corp including but not
limited to the following duties.

     

    
      	
              ·  

            	
              Lead
      activities to get OvaRex®
      MAb to market.

            

    

     

    
      	
              ·  

            	
              Follow
      OvaRex®
      MAb through manufacturing, authorization, and distribution in
      Europe.

            

    

     

    
      	
              ·  

            	
              Liaise
      with the different stake holders, such as Unither, Sigma Tau and EMEA, to
      reach agreement and consensus in moving OvaRex®
      MAb into Europe with a common regulatory
  strategy.

            

    

     

    
      	
              ·  

            	
              Navigate
      through the European regulatory structure and product licensure
      requirements for approval and launch of OvaRex®
      MAb in Europe.

            

    

     

    
      	
              ·  

            	
              Coordinate
      and implement key regulatory strategies and compulsory activities, such as
      comparability studies, with the appropriate
  partner.

            

    

     

    
      	
              ·  

            	
              Provide
      a conduit for open dialogue between ViRexx Medical Corp and Unither around
      common subjects such as intellectual property and scientific
      information.

            

    

     

    
      	
              ·  

            	
              Track
      and update information flow for Business Development and all three of the
      AIT platforms.

            

    

     

    
      	
              ·  

            	
              Supervise
      overall technical communication, solutions and work flow activities
      conducted by the AIT Project
Manager.

            

    

     

    
      	
              ·  

            	
              Be
      a member of the following ViRexx
committees:

            

    

    
      	
              o  

            	
              Intellectual
      Property Committee

            

    

    
      	
              o  

            	
              Trademark
      Sub-Committee

            

    

    
      	
              o  

            	
              Publication
      Committee

            

    

    

    
      	
              ·  

            	
              Be
      a member of the following Joint ViRexx / Unither
    committees:

            

    

    
      	
              o  

            	
              Intellectual
      Property Committee

            

    

    
      	
              o  

            	
              Publication
      Committee

            

    

    
      	
              o  

            	
              Meeting
      and Manuscripts.

            

    

    
      
        
           

           

        

         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
"B"

     

    EMPLOYEE CONFIDENTIALITY
AGREEMENT

     

    THIS
AGREEMENT made as at the 1st day of January 2007 (hereinafter referred to as the
"Agreement").

     

    BETWEEN:

     

    VIREXX MEDICAL
CORP.,

    a
corporation amalgamated pursuant to the

    laws of
Canada

    

    (hereinafter
referred to as "ViRexx")

    

     OF
THE FIRST PART

    

    - and -

    

    

    HUBERT
ENG

    of the
City of Edmonton

    in the
Province of Alberta

    

    (hereinafter
referred to as the "Employee")

    

     OF
THE SECOND PART

    

     

    WHEREAS:

     

    
      	
              A.  

            	
              the
      Employee is presently employed, or is about to be employed pursuant to an
      Employment Agreement ("Employment Agreement")
      dated concurrently herewith, by ViRexx in a position of confidence and
      trust and under conditions where he has or may have access to technical,
      confidential and secret information regarding existing or contemplated
      business of ViRexx;

            

    

     

    
      	
              B.  

            	
              the
      Employee recognizes that as a part of the duties of his employment,
      certain ideas and suggestions of interest to ViRexx, conceived or made by
      the Employee while he is retained or employed by ViRexx shall be
      immediately made available to and become the property of ViRexx without
      any further consideration;

            

    

     

    
      	
              C.  

            	
              ViRexx
      desires to receive from the Employee specific covenants relating to the
      non-disclosure of confidential information and ownership of Intellectual
      Property, and the employment contract with the Employee is conditional on
      ViRexx receiving these covenants.

            

    

     

    THEREFORE IN CONSIDERATION of
the premises set forth and the remuneration paid by ViRexx to the Employee, the
parties agree as follows:

     

    1.           Definition of Confidential
Information

     

    1.1                      For
purposes of this Agreement, the term "Confidential Information",
shall mean all information, whether or not reduced to writing and whether or not
patentable or protected by copyright, which the Employee receives, received
access to, conceived or developed, in whole or in part, directly or indirectly,
in connection with the Employee's relationship with ViRexx, and includes, but is
not limited to:

     

    
      	
              1.  

            	
              information
      concerning bioinformatics, medinformatics and cheminformatics software,
      databases and services, including but not limited to, source codes, object
      codes, flowcharts and programs and other materials whatsoever (tangible or
      intangible and machine readable or human
  readable);

            

    

     

    
      	
              2.  

            	
              information
      concerning products and services provided to the global community to
      bridge the gap between biology in vitro (in the test
      tube) and biology in
      silico (in the computer);

            

    

     

    
      	
              3.  

            	
              information
      concerning the handling and analysis of DNA and protein sequence
      data;

            

    

     

    
      	
              4.  

            	
              information
      concerning drug development and development processes, including but not
      limited to, designing optimal drug molecules for treating
      diseases;

            

    

     

    
      	
              5.  

            	
              information
      concerning pre-clinical, analytical and formulation
    services;

            

    

     

    
      	
              6.  

            	
              technology
      developed for high throughput screening of new chemical entities or drug
      levels;

            

    

     

    
      	
              7.  

            	
              discoveries
      relating to, and developments of, patented in-house
      formulations;

            

    

     

    
      	
              8.  

            	
              information
      concerning research, development and commercialization of vaccines and
      antibodies for preventative or therapeutic use including, without
      restriction, those based upon peptide-synthetic carrier protection vaccine
      formulations for infectious
disease;

            

    

     

    
      	
              9.  

            	
              formulations,
      including but not limited to, the development of new formulations for
      existing drugs, assessments of current formulations and the development of
      strategies for formulations of new chemical entities (NCE) and
      biologicals;

            

    

     

    
      	
              10.  

            	
              information,
      drugs, delivery systems, devices or models under a patent, or potential or
      pending patent, whether or not such a patent is in fact obtained or
      expires;

            

    

     

    
      	
              11.  

            	
              test
      results, clinical studies, clinical trial results, and all research
      whatsoever;

            

    

     

    
      	
              12.  

            	
              products
      and devices developed, patents, discoveries, concepts, compilations and
      ideas of any nature whatsoever including, without limitation, the nature
      and results of research and development activities, the software,
      molecular and analytical tools to facilitate research in the fields of
      biology, medicine and pharmaceutical science, and processes, formulas,
      inventions, technology, techniques, computer programs and models, designs,
      drawings, and specifications;

            

    

     

    
      	
              13.  

            	
              production
      processes, marketing techniques and arrangements, marketing materials,
      promotions, demos and publications, mailing lists, purchasing information,
      pricing policies, quoting procedures, financial information, customer and
      prospect names and requirements, Employee, customer, supplier and
      distributor data and other materials or information relating to ViRexx's
      business and activities and the manner in which ViRexx does business,
      including but not limited to the names of drug firms, biotechnology firms,
      contract research organizations (CRO), generic drug manufacturers,
      pharmaceutical companies, pre-clinical clients, principal investigators
      and alliances with whom ViRexx has or may have a business relationship
      with,

            

    

     

    
      	
              14.  

            	
              any
      other materials or information related to, or that is or may be used in,
      the business, trade or activities of ViRexx
  which:

            

    

     

    
      	
              1.  

            	
              are
      not generally known to others engaged in similar business or
      activities;

            

    

     

    
      	
              2.  

            	
              has
      an economic value from not being generally known;
  and

            

    

     

    
      	
              3.  

            	
              is
      the subject of efforts that are reasonable in the circumstances to
      maintain its secrecy; and

            

    

     

    
      	
              15.  

            	
              any
      financial information or information relating to the day to day business
      of ViRexx

            

    

     

    1.2                      For
the purposes of this Agreement, the term “Intellectual Property” shall
mean all copyrights, registered and unregistered trademarks, trade names, logos,
licenses, patent and patent applications, continuations, continuations in part,
trade secrets, computer software, know-how and all other intellectual property
which the Employee creates, invents or of which he becomes aware as a result of
his employment with ViRexx.

     

    1.3           Failure
to mark any of the Confidential Information as confidential, proprietary or
protected shall not affect its status as part of the Confidential Information
under the terms of this Agreement.

     

    1.4           For
purposes of this Agreement, the term "Confidential Information"
shall not include information which:

     

    
      	
               
      

            	
              (i)

            	
              has
      been in the possession of the Employee prior to the date of the
      commencement of the Employee's employment with ViRexx including, without
      limitation, information pertaining to the matters set out in Section 1.1,
      if any;

            

    

     

    
      	
              (ii)

            	
              has
      been publicly available prior to coming into the possession of
      ViRexx;

            

    

     

    
      	
              (iii)

            	
              becomes
      publicly available without a breach by the Employee of:  i) this
      Agreement; ii) any other agreement between the Employee and ViRexx; or
      iii) any lawful duty owed by the Employee to
  ViRexx;

            

    

     

    
      	
              (iv)

            	
              has
      been supplied to the Employee by a third party who is under no obligation
      to ViRexx.

            

    

     

    The
information described in paragraphs 1.3(i) and (iv) above is hereinafter called
the "Employee
Information".

     

    2.           Treatment of
Information

     

    2.1                      The
Employee acknowledges that in his position, or in any other position the
Employee may hold, in and as a result of the Employee's relationship with
ViRexx, the Employee shall, or may be making use of, acquiring or adding to
Confidential Information about certain matters and things which are confidential
to ViRexx and which information is the exclusive property of
ViRexx.

     

    2.2                      As
a material inducement for ViRexx to retain the services of the Employee, the
Employee agrees that during his term as an Employee with ViRexx, and for a term
of five (5) years following the date of expiry or termination of the Employment
Agreement or expiry or termination of any extension or renewal thereof, the
Employee shall not, except with the prior written consent of ViRexx, which
consent may be arbitrarily withheld, or except if the Employee is acting in the
course of his duties on behalf and for the benefit of ViRexx in connection with
ViRexx's business practices and policies, directly or indirectly, disclose,
divulge, reveal, report, publish, transfer or use for any purpose, or cause to
be disclosed, divulged, revealed, reported, published, transferred or used for
any purpose, the Confidential Information which has been obtained, created,
learned or disclosed by, or to, the Employee.

     

    2.3                      Disclosure
of any Confidential Information of ViRexx by the Employee shall not be
prohibited if the disclosure is directly pursuant to a valid and existing order
of a governing court or other governmental body or agency within Canada;
provided, however that:

     

    
      	
               
      

            	
              (i)

            	
              the
      Employee shall first provide immediate written notice to ViRexx of any
      possible or prospective order, or proceeding pursuant to which any order
      may result; and

            

    

     

    
      	
              (ii)

            	
              ViRexx
      shall have been afforded a reasonable opportunity to prevent or limit any
      disclosure.

            

    

     

    3.           Ownership of ViRexx Intellectual
Property and Confidential Information

     

    3.1                      The
Employee agrees that all right, title and interest in any Confidential
Information and any Intellectual Property shall be and shall remain the
exclusive property of ViRexx.

     

    3.2                      The
Employee agrees immediately to disclose in writing to ViRexx all Confidential
Information and any Intellectual Property pertaining to the business of ViRexx
developed in whole or in part by the Employee during the term of the Employee's
relationship with ViRexx and does hereby assign to ViRexx, any right, title or
interest the Employee may have in the Confidential Information and Intellectual
Property.  The Employee agrees to execute any instruments and to do
all other things reasonably requested by ViRexx, in order to vest more fully in
ViRexx, all ownership rights in the Confidential Information and Intellectual
Property.

     

    3.3                      All
Intellectual Property and all Confidential Information shall belong exclusively
to ViRexx and the Employee does hereby transfer any interest he may have in it
and agrees to turn it over to ViRexx including but not limited to all originals
and all copies of any materials, tapes, notes, data reference items, sketches,
drawings, memoranda, hardware, software, disks, records, inventions, technology,
all Intellectual Property and all Confidential Information, in, or that at any
time whatsoever were in, the Employee's possession, power or control, at the
request of ViRexx, or in the absence of a request, on the termination of the
Employee's relationship with ViRexx, howsoever the Employee's termination
occurs, including but not limited to, the Employee's retirement or
death.

     

    4.           Injunctive Relief

     

    4.1                      The
Employee understands and agrees that ViRexx shall suffer irreparable harm in the
event that the Employee breaches any of the Employee's obligations under this
Agreement and that monetary damages shall be inadequate to compensate ViRexx for
the breach.  Accordingly the Employee agrees that, in the event of a
breach or threatened or potential breach by the Employee of any of the
provisions of this Agreement, ViRexx, in addition to and not in limitation of
any other rights, remedies or damages available to ViRexx at law or in equity,
shall be entitled to an interim injunction, interlocutory injunction, and
permanent injunction, in order to prevent or to restrain any such breach by the
Employee, or by any or all of the Employee's partners, co-venturers, ViRexx's
servants, agents, representatives and any and all persons directly or indirectly
acting for, on behalf of, or with the Employee.

     

    5.           Accounting for Profits and
Indemnification

     

    5.1                      The
Employee agrees that if the Employee shall violate any of the Employee's
covenants under this Agreement, ViRexx shall be entitled to an accounting and
repayment of all profits, compensation, royalties, commissions, remunerations or
benefits which the Employee directly or indirectly shall have realized or may
realize relating to, growing out of, or in connection with any violations of
this Agreement.  This remedy shall be in addition to and not in
limitation of any injunctive relief at law or in equity or otherwise under this
Agreement.

     

    5.2                      The
Employee agrees to defend, hold harmless and indemnify ViRexx against and in
respect of:

     

    
      	
               
      

            	
              (i)

            	
              any
      and all losses and damages resulting from, relating or incident to, or
      arising out of any misrepresentation or breach by the Employee of any
      warranty or covenant made or contained in this
  Agreement;

            

    

     

    
      	
              (ii)

            	
              any
      and all actions, suits, proceedings, claims demands, judgments, costs, and
      expenses (including all legal fees, on a solicitor and his own client
      basis), incident to the foregoing.

            

    

     

    6.           Severability

     

    6.1                      In
the event that any provision or part of any provision of this Agreement shall be
deemed to be void or invalid by a court of competent jurisdiction, the remaining
provisions or parts shall be and remain in full force and effect.  The
Employee agrees that the breach or alleged breach by ViRexx of:

     

    
      	
               
      

            	
              (i)

            	
              any
      covenant contained in another agreement (if any) between ViRexx and the
      Employee or;

            

    

     

    
      	
              (ii)

            	
              any
      obligation owed to the Employee by
ViRexx;

            

    

     

    shall not
affect the validity or enforceability of the covenants and agreements of the
Employee set forth in this Agreement.

     

    7.           No Prior
Agreements

     

    7.1                      The
Employee represents to the best of the Employee's knowledge that the Employee's
performance of all the terms of this Agreement do not and shall not breach any
fiduciary or other duty or any covenant, agreement or understanding (including
any agreement relating to any proprietary information, knowledge or data
acquired by the Employee in confidence, trust or otherwise prior to the
Employee's employment by ViRexx) to which the Employee is a party or by the
terms of which the Employee may be bound. The Employee covenants and agrees that
the Employee shall not disclose to ViRexx, or induce ViRexx to use any
proprietary information, knowledge or data belonging to any previous employer or
others.  The Employee further covenants and agrees not to enter into
any agreement or understanding, either written or oral, in conflict with the
provisions of this Agreement.

     

    8.           Employee's Status

     

    8.1                      Nothing
in this Agreement shall be construed as constituting a commitment, guarantee,
agreement or understanding of any kind or nature that ViRexx shall continue to
employ the Employee.  No change of the Employee's duties as an
Employee of ViRexx shall result in, or be deemed to be, a modification of the
terms of this Agreement.

     

    9.           Successors

     

    9.1                      This
Agreement shall be binding on and shall enure to the benefit of ViRexx and the
Employee, and their respective heirs, personal and legal representatives,
successors and assigns.  As used in this Agreement, the term "ViRexx" shall also include any
corporation or entity which is a parent, subsidiary, or affiliate of
ViRexx.  The Employee consents to the enforcement of any and all
provisions of this Agreement by or for the benefit of ViRexx as to any other
corporation or entity regarding any of the Confidential
Information.

     

    10.           Governing Law

     

    10.1                      This
Agreement shall at all times and in all respects be governed by the laws of the
Province of Alberta and all parties hereto shall irrevocably attorn to the
courts of competent jurisdiction of the Province of Alberta.

     

    11.           Notices

     

    11.1                      Any
notice required or permitted to be given to the Employee shall be sufficiently
given if delivered to the Employee personally or if mailed by prepaid registered
mail, sent by facsimile or by electronic mail in portable document format
("PDF") to the
Employee's address last known to ViRexx.

     

    11.2                      Any
notice required or permitted to be given to ViRexx shall be sufficiently given
if delivered personally or if mailed by prepaid registered mail to:

     

    8223 Roper Road, NW

    Edmonton, Alberta

    T6E 6S4

    

    or at
such other address as the Employer may advise the Employee in
writing.

     

    11.3                      Any
notice personally delivered in the manner set out in this Section 11 shall be
deemed given when personally delivered or upon receipt of confirmation of
delivery of facsimile or electronic mail and any notice mailed in the manner set
out in Section 11 shall be deemed to have been received on the fifth regular
business day next following the date of posting.

     

    11.4                      Either
one of the parties may advise the other, in the manner aforesaid, of any change
of address for the giving of notices.

     

    12.           Entire Agreement

     

    12.1                      
It is acknowledged that the parties are parties to an employment agreement to
which this agreement is attached as Schedule "B".  This Agreement and
the employment agreement along with any future agreement respecting options or
warrants contain the entire agreements and understandings by and between ViRexx
and the Employee with respect to the subject matter, and no representations,
promises, agreements or understandings, written or oral, express or implied
shall be valid or binding unless the same is in writing and signed by the party
intended to be bound.  No waiver of any provision of this Agreement
shall be valid unless it is in writing and signed by the party against whom the
waiver is sought to be enforced; moreover, no valid waiver of any provision of
this Agreement shall be deemed a waiver of any other provision of this Agreement
at the time or shall be deemed a valid waiver of the provision at any other
time.

     

    13.           Assignment

     

    13.1                      This
Agreement is assignable by ViRexx without the prior consent of the
Employee.

     

    13.2                      As
this Agreement is personal in nature with respect to the Employee, it is not
assignable by the Employee under any circumstance.

     

    14.           Gender

     

    14.1                      Whenever
the singular is used, it shall be deemed to extend to and include the
plural.  Where one gender is used, it shall include all
genders.

     

    
      
        
           

           

        

         

      

      
         

        
          

        

      

      
         

        
           

        

      

    

    15.           Headings

     

    15.1                      The
headings and other captions in this Agreement are for convenience and reference
only and are not to be construed in any way as additions or limitations of the
covenants and agreements contained in this Agreement.

     

    16.           Effective Date

     

    16.1                      This
Agreement is effective as of the date and year first above mentioned and
indicated herein.

     

    IN WITNESS WHEREOF, ViRexx and the
Employee have duly executed this Agreement, where applicable by their respective
corporate officers hereunto duly authorized.

     

    

    
      	 
      	
              VIREXX
      MEDICAL CORP.

            
	 
      	
              Per:

            	 
      
	 
      	
              Per:

            	
              /s/
      Marc Canton

            

    

    

     

    
      	
              SIGNED,
      SEALED AND DELIVERED in the presence of:

               

              /s/
      Tracy Smith

            	
              )

              )

              )

              )

            	
               

               

               

              /s/
      Hubert Eng

            
	
              WITNESS

            	 
      	
              HUBERT
      ENG

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