Document:

<PAGE>

                                                             Exhibit (d)(xviii)

                           MEMORANDUM OF UNDERSTANDING

         MDS INC., a corporation governed by the laws of Canada

         (hereinafter called "MDS")

         - and -

         HEMOSOL CORP., a corporation incorporated under the laws of the
         Province of Ontario

         (hereinafter called "HEMOSOL")

         - and -

         HEMOSOL LP, a partnership formed under the laws of the Province of
         Ontario, by its general partner HEMOSOL CORP.

         (hereinafter called the "PARTNERSHIP")

         - and -

         HEMOSOL INC., a corporation incorporated under the laws of the Province
         of Ontario

         (hereinafter called "OLD HEMOSOL")

         WHEREAS MDS is a holder of securities in the capital of Hemosol;

         AND WHEREAS on October 22, 2002, Old Hemosol borrowed Cdn.$20 million
(the "Loan") from a Canadian chartered bank (the "Lender"), the proceeds of
which were to be deployed to, among other things, pay for ongoing clinical
trials of its flagship product, HEMOLINK(TM) and complete construction of its
Meadowpine manufacturing facility;

<PAGE>

         AND WHEREAS MDS agreed to assist Old Hemosol in obtaining the Loan on
favourable terms by guaranteeing all of the obligations of Old Hemosol to the
Lender in respect of the Loan;

         AND WHEREAS on October 22, 2002 MDS and Old Hemosol entered into a
memorandum of understanding ("MOU") to set out the principal terms and
conditions pursuant to which MDS was prepared to guarantee (the "Original
Guarantee") the obligations of Old Hemosol to the Lender in respect of the Loan,
which terms and conditions included the obligation of Old Hemosol to issue
warrants of Old Hemosol to MDS;

         AND WHEREAS MDS and Old Hemosol amended the MOU on December 29, 2003 to
set out the terms and conditions whereby MDS agreed to extend the term of the
Original Guarantee;

         AND WHEREAS in connection with a plan of arrangement (the
"Arrangement") of Old Hemosol, involving Old Hemosol, its securityholders and
MDS effective the date hereof, (i) the obligations of Old Hemosol under the Loan
will be assumed by the Partnership; (ii) MDS, among others, will enter into an
assumption, assignment and release agreement (the "Assignment Agreement")
whereby the benefit of the Original Guarantee of MDS will be assigned to the
Partnership; (iii) the MOU, as amended, will be terminated; and (iv) Hemosol
will enter into this new memorandum of understanding with MDS (the "New MOU") on
substantially the same terms as the MOU, as amended, except that the warrants
issuable to MDS hereunder shall be issuable by Hemosol in lieu of Old Hemosol,
the number of warrants issuable hereunder shall be reduced by one-half and the
exercise price of each such warrant shall be reduced by $0.04;

         NOW THEREFORE, in consideration of the mutual covenants and agreements
contained in this memorandum of understanding and other good and valuable
consideration (the receipt and adequacy of which is hereby acknowledged by the
parties hereto), the parties hereto agree as set forth below.

1.       BORROWING

1.1      In connection with the Partnership assuming Old Hemosol's obligations
under the Loan, the Partnership will grant to the Lender a fixed and floating
first charge in favour of the Lender over all of the real and personal property
of the Partnership (the "Security"). The term of the Loan shall end on
October 1, 2004 but may be extended to May 25, 2005 subject to Hemosol complying
with section 2.2 hereof. The last business day of the Loan's term shall be
referred to herein as the "Latest Repayment Date".

1.2      The obligations of the Partnership under the Loan will be collaterally
secured by a guarantee from MDS (the "New Guarantee") in favour of the Lender as
contemplated by the

                                      -2-

<PAGE>

Assignment Agreement. The New Guarantee is in the same form as the Original
Guarantee provided by MDS in favour of the Lender, the terms of which include,
but are not limited to, full rights of subrogation in favour of MDS.

1.3      The MOU is terminated in accordance with the terms and conditions of
the Arrangement.

2.       GUARANTEE FEE

2.1      In consideration of providing the Original Guarantee to Old Hemosol
and entering into the Assignment Agreement, MDS is and shall be entitled to, and
Hemosol shall issue to MDS, warrants of Hemosol entitling MDS, subject to the
satisfaction of the requirements set out in this section 2.1 and section 2.2, to
subscribe for and purchase up to 7,500,000 fully paid and non-assessable common
shares of Hemosol ("Shares") (subject to customary adjustments including, but
not limited to, any subdivision or consolidation of the common shares of
Hemosol) at a price per Share of Cdn. $0.96 (the "Warrants"). 5,500,000 Warrants
have been previously issued to MDS under the warrant certificate of Old Hemosol
dated October 22, 2002, as amended April 30, 2004, which certificate will be
assumed by Hemosol on April 30, 2004 and Hemosol will issue to MDS forthwith a
certificate issuing such Warrants. Hemosol agrees to use its reasonable
commercial efforts to obtain all requisite approvals, including Toronto Stock
Exchange listing approval, to issue and, upon receipt of all such approvals,
Hemosol shall issue to MDS on or after May 25, 2004, but by August 25, 2004, an
additional 2,000,000 Warrants (the "Additional Warrants"), with an exercise
price of $0.96 per Additional Warrant, which shall vest on the terms set forth
in paragraph 2.2 and shall be evidenced by a warrant certificate of Hemosol.
Hemosol represents and warrants to MDS that it has all requisite shareholder
approval to issue the Additional Warrants. In addition, upon receipt of all such
approvals for and the issuance of the Additional Warrants by August 25, 2004,
the term of the New Guarantee shall be extended from October 21, 2004 to June
20, 2005 automatically and without any further action required by Hemosol, the
Partnership or MDS. In the event that the Additional Warrants are not issued to
MDS by August 25, 2004, the term of the New Guarantee will not be extended
beyond, and shall expire on, October 21, 2004 and Hemosol shall have no further
obligation to issue the Additional Warrants.

2.2      The terms of vesting of the Additional Warrants shall be such that
for each whole or part month that the Loan remains outstanding beyond May 25,
2004 (to a maximum of an additional 12 months) (each such whole or part month
being an "Extension Month"), MDS may exercise Additional Warrants entitling it
to subscribe for up to the number of Shares set forth in Table 1 below and such
Additional Warrants may be exercised at any time and from time to time during
the period from and after the first day of the subject Extension Month and prior
to the third anniversary of such date.

                                      -3-

<PAGE>

                                     TABLE 1

<TABLE>
<CAPTION>

MONTHS LOAN IS OUTSTANDING                  NUMBER OF ADDITIONAL WARRANTS
   BEYOND MAY 25, 2004                      BECOMING EXERCISABLE
--------------------------                  -----------------------------
<S>                                         <C>

         1                                                 166,666
         2                                                 166,667
         3                                                 166,666
         4                                                 166,667
         5                                                 166,666
         6                                                 166,667
         7                                                 166,666
         8                                                 166,667
         9                                                 166,666
         10                                                166,667
         11                                                166,666
         12                                                166,669
                                                     -------------
         TOTAL                                           2,000,000
                                                     =============

</TABLE>

2.3      If Hemosol repays in full all amounts owed under the Loan in any
month prior to the Latest Repayment Date, no Warrants, in excess of those which
are already exercisable as of the end of the month in which the Loan is repaid
in full, shall be exercisable.

3.       CONDITIONS

3.1      The conditions precedent to the execution of the Assignment Agreement
by MDS are the following:

    (a)  MDS and its legal counsel must have sufficient opportunity to review
         and must ultimately approve, in form and substance, all documentation
         relating to the assumption of the Loan and the assignment of the
         Guarantee including, without limitation, the loan agreement and all
         documentation relating to the Security and the Warrants;

    (b)  MDS and its legal counsel must be satisfied with the form and substance
         of the New Guarantee, Assignment Agreement which shall provide, without
         limiting the generality of the foregoing, that MDS has full rights of
         subrogation upon MDS paying to the Lender all amounts outstanding in
         connection with the Loan at the

                                      -4-

<PAGE>

         time the New Guarantee is called upon, and the Loan and New Guarantee
         transactions are in compliance with OSC Policy 61-501 and the Shares
         issuable upon exercise of the Warrants shall be subject to a hold
         period of no more than four (4) months;

    (c)  MDS shall receive an opinion from legal counsel to Hemosol and the
         Partnership confirming, among other things, that there are no security
         interests in, or other encumbrances on title to, any of the real
         property assets of the Partnership that rank in priority to the
         security interest in such assets granted to the Lender as security for
         the Loan. MDS shall receive a search report from legal counsel to the
         Partnership confirming, subject to customary limitations with respect
         to the accuracy, completeness and currency of the records of public
         registries, that: (i) with the exception of financing statements
         registered in respect of assets leased by the Partnership from a
         secured creditor, there are no secured parties with a financing
         statement registered in the Ontario Personal Property Registry (the
         "PPSR") registered in priority to the financing statement registered in
         the PPSR in favour of the Lender; (ii) with the exception of a notice
         of intention to grant special security registered in favour of the
         Lender, there are no banks with a notice of intention to grant special
         security registered against the Partnership under the Bank Act
         (Canada); and (iii) there are no executions registered against the
         personal property of the Partnership in the land registry offices in
         those countries in which the Partnership has located any personal
         property;

    (d)  no material adverse change shall have occurred with respect to the
         Partnership and Hemosol and the time period, if any, between the time
         of execution of this Agreement and the date upon which MDS is required
         to execute and deliver the Assignment Agreement;

    (e)  Hemosol and the Partnership shall have obtained all necessary third
         party, shareholder, director and regulatory consents required in
         connection with the transactions contemplated herein; and

    (f)  any such other conditions as are commercially reasonable and customary
         in transactions similar to those contemplated herein.

4.       EXPENSES

4.1      Hemosol and the Partnership shall pay, or cause to be paid, all
reasonable fees (including, but not limited to, all legal and documentation
fees) and expenses incurred by MDS in connection with the preparation of any
documentation relating to the transactions contemplated herein (other than any
documentation dated the date hereof) as well as the reasonable expenses of MDS
in connection with the enforcement of its rights, all whether or not

                                      -5-

<PAGE>

documentation relating to the Loan is promptly executed or any amounts are
advanced thereunder.

5.       ASSIGNMENT

5.1      None of MDS, Hemosol, Old Hemosol or the Partnership shall be
permitted to assign all or any portion of its rights or obligations hereunder.

         DATED this 30th day of April, 2004.

                                       MDS INC.

                                       By:
                                       -----------------------------------------
                                       Name:

                                       Title:

                                       HEMOSOL CORP.

                                       By:
                                       -----------------------------------------
                                       Name:

                                       Title:

                                       HEMOSOL LP, BY ITS GENERAL PARTNER
                                       HEMOSOL CORP.

                                       By:
                                       -----------------------------------------
                                       Name:

                                       Title:

                                       HEMOSOL INC.

                                       By:
                                       -----------------------------------------
                                       Name:

                                       Title:

                                      -6-<PAGE>
                                                                Exhibit (d)(xxi)

                     PARTNERSHIP INTEREST TRANSFER AGREEMENT

            THIS AGREEMENT is made as of the 30th day of April, 2004

BETWEEN:

                  MDS INC., a corporation governed by the laws of Canada ("MDS")

                                                              OF THE FIRST PART
                                     - and -

                  HEMOSOL INC., a corporation incorporated under the laws of
                  Ontario ("HEMOSOL") (to be renamed LPBP Inc.)

                                                             OF THE SECOND PART

                                     - and -

                  MDS LABORATORY SERVICES INC., a corporation incorporated under
                  the laws of Canada (the "GENERAL PARTNER"), as General Partner
                  of MDS Laboratory Services, L.P., a limited partnership
                  established under the laws of Ontario (the "PARTNERSHIP")

                                                              OF THE THIRD PART

                  WHEREAS MDS and Hemosol entered into an arrangement agreement
dated as of February 11, 2004 to set out the terms and conditions of an
arrangement (the "ARRANGEMENT") of Hemosol, its securityholders and MDS under
section 182 of the Business Corporations Act (Ontario);

                  AND WHEREAS, in connection with the Arrangement, the
Partnership was established under the laws of Ontario by Declaration dated the
13th day of April, 2004;

                  AND WHEREAS MDS has a 99.99% limited partnership interest in
the Partnership (the "LP INTEREST") currently represented by 9,999 Units;

                  AND WHEREAS, in accordance with the terms of the Arrangement,
MDS will transfer the LP Interest to Hemosol and Hemosol will acquire the LP
Interest from MDS and MDS will surrender to Hemosol 500,000 Tranche A Warrants
and the right to acquire 2,000,000 Tranche B Warrants (as such terms are
hereinafter defined);

                  AND WHEREAS in consideration for the aforementioned transfer
and surrender, Hemosol will issue to MDS 44,872,287 Class A Shares and
11,134,648,627 Class B Shares (as such terms are hereinafter defined);

<PAGE>
                                      -2-

                  AND WHEREAS Hemosol and MDS have agreed that MDS will also
have a right of first refusal and an option to purchase the LP Interest, in
whole or in part, in certain circumstances;

                  NOW THEREFORE IN CONSIDERATION of the premises and the mutual
covenants in this Agreement and other consideration (the receipt and sufficiency
of which are acknowledged), the Parties agree as follows:

                                   ARTICLE 1
                                 INTERPRETATION

1.1  DEFINITIONS

     In this Agreement:

     "AFFILIATE" has the meaning ascribed thereto in the Canada Business
     Corporations Act;

     "AGREEMENT" means this partnership interest transfer agreement and any
     agreement supplementing or amending this Agreement;

     "BUSINESS DAY" means any day of the week except Saturday, Sunday or any
     statutory or civic holiday observed in Toronto, Ontario;

     "CLASS A SHARES" means the Class A voting common shares in the capital of
     Hemosol to be created and issued at the Effective Time;

     "CLASS B SHARES" means the Class B non-voting shares in the capital of
     Hemosol to be created and issued at the Effective Time;

     "EFFECTIVE TIME" means 11:59 p.m. (Toronto time) on the effective date of
     the Arrangement;

     "INCLUDING" and "INCLUDES" shall be deemed to be followed by the statement
     "without limitation" and neither of such terms shall be construed to limit
     any word or statement which it follows to the specific or similar items or
     matters immediately following it;

     "LIMITED PARTNERSHIP AGREEMENT" means the limited partnership agreement
     between MDS, as initial limited partner, and the General Partner, as
     general partner, dated as of April 13, 2004;

     "LP INTEREST" means the 99.99% limited partnership interest in the
     Partnership, currently represented by 9,999 Units;

     "MDS MOU" means the memorandum of understanding between MDS and Hemosol
     dated October 22, 2002, as amended on December 23, 2003;

<PAGE>
                                      -3-

     "NEW HEMOSOL" means Hemosol Corp., a corporation incorporated under the
     laws of Ontario;

     "NEW MOU" means the memorandum of understanding to be entered into by MDS
     and New Hemosol which shall be substantially similar to the MDS MOU other
     than (i) the number of Tranche B Warrants contemplated therein shall be
     reduced by one-half and (ii) the exercise price per Tranche B Warrant shall
     be reduced by $0.04;

     "OPTION EVENT" means any one of the events set out in Section 3.3 hereof;

     "PARTIES" means the Partnership, MDS and Hemosol and "PARTY" means any one
     of them;

     "PERSON" includes an individual, body corporate, partnership, joint
     venture, trust, unincorporated organization, the Crown or any agency or
     instrumentality thereof or any other entity recognized by law;

     "PLAN OF ARRANGEMENT" means the plan of arrangement of Hemosol as
     contemplated by the Arrangement Agreement;

     "PURCHASED UNITS" has the meaning set out in Section 3.5;

     "SHARE CONSIDERATION" has the meaning set out in Section 2.1;

     "SURRENDERED WARRANTS" has the meaning set out in Section 2.1;

     "TAX ACT" means the Income Tax Act (Canada);

     "TRANCHE A WARRANT CERTIFICATE" means the certificate dated November 22,
     2002 registered in the name of MDS evidencing the Tranche A Warrants;

     "TRANCHE A WARRANTS" means the warrants of Hemosol issued to MDS entitling
     MDS to acquire, on the due exercise thereof, up to 6,000,000 common shares
     of Hemosol at an exercise price of $1.00 per share on the terms and
     conditions set out in the Tranche A Warrant Certificate;

     "TRANCHE B WARRANTS" means the warrants of Hemosol to purchase up to
     4,000,000 shares of Hemosol to be issued to MDS in certain circumstances on
     the terms and conditions set out in the MDS MOU; and

     "UNIT" means a unit in the capital of the Partnership.

1.2  INTERPRETATION

     (a)  In this Agreement, words in the singular include the plural and
          vice-versa and words in one gender include all genders.

<PAGE>
                                      -4-

     (b)  This Agreement shall be governed by, and interpreted and enforced in
          accordance with, the laws in force in the Province of Ontario and the
          laws of Canada applicable therein.

     (c)  If any action required by this Agreement is to be taken on a day which
          is not a Business Day, such action shall be taken on the next
          succeeding Business Day.

     (d)  All payments to be made by any Party to another shall be paid in
          Canadian dollars in cash, by bank draft or by certified cheque.

                                   ARTICLE 2
               TRANSFER OF LP INTEREST AND SURRENDER OF WARRANTS

2.1  TRANSFER OF LP INTEREST AND SURRENDER OF WARRANTS

     Effective at the Effective Time MDS shall sell, transfer and deliver the LP
Interest to Hemosol and Hemosol shall acquire the LP Interest, all as provided
in this Agreement. In conjunction with the foregoing and at the time
contemplated in the Plan of Arrangement, MDS shall surrender 500,000 Tranche A
Warrants and the right to receive 2,000,000 Tranche B Warrants (collectively,
the "SURRENDERED WARRANTS"). As consideration for the LP Interest and the
surrender by MDS of the Surrendered Warrants, Hemosol shall issue to MDS
38,322,390 Class A Shares and 11,134,648,627 Class B Shares (collectively, the
"SHARE CONSIDERATION") having a fair market value of $502,745,640, which shares
shall be issued as fully paid and non-assessable shares.

2.2  EVIDENCE OF TRANSFER

     Hemosol shall cause its registrar and transfer agent to deliver to MDS
share certificates evidencing the Share Consideration in accordance with the
delivery terms set out in the Plan of Arrangement. MDS and Hemosol shall enter
into an amendment to the Tranche A Warrant Certificate and, subject to the prior
execution by New Hemosol of the New MOU, shall terminate the MDS MOU to reflect
the surrender by MDS of the Surrendered Warrants.

2.3  TAX ELECTIONS

     MDS and Hemosol agree that the transfer of the LP Interest and the
Surrendered Warrants to Hemosol shall occur on a tax-deferred basis under
section 85 of the Tax Act and the corresponding provisions of any applicable
provincial income tax legislation. MDS and Hemosol agree to file joint elections
pursuant to subsection 85(1) of the Tax Act in the prescribed form and within
the prescribed time. The elected amount shall be determined by MDS. In no event
shall the elected amount in respect of the LP Interest and the Surrendered
Warrants be less than $1.00. MDS and Hemosol agree to file jointly corresponding
elections under the corresponding provisions of any applicable provincial income
tax legislation. MDS shall prepare and file all such elections.

<PAGE>
                                      -5-

                                   ARTICLE 3
                            TRANSFER OF LP INTEREST

3.1  GENERAL RESTRICTIONS

     (a)  Hemosol may not and covenants and agrees that it will not directly or
          indirectly sell, transfer or otherwise dispose of all or part of the
          LP Interest except as expressly required or permitted by this
          Agreement.

     (b)  The Partnership agrees that it will not recognize any sale, transfer
          or other disposition of all or part of the LP Interest by Hemosol
          except as expressly required or permitted by this Agreement.

     (c)  Hemosol may not and covenants and agrees that it will not, directly or
          indirectly, mortgage, pledge, charge, hypothecate or otherwise
          encumber all or part of the LP Interest to or in favour of any Person,
          including a Canadian chartered bank or trust company by way of
          collateral security for a loan or outstanding indebtedness.

3.2  RIGHT OF FIRST REFUSAL

     If Hemosol receives from a bona fide third party purchaser (the "THIRD
PARTY PURCHASER") an offer to purchase all or part of the Units held by Hemosol
(the "OFFERED UNITS") which Hemosol desires to accept (a "THIRD PARTY OFFER"),
Hemosol shall promptly give MDS a notice (an "OFFER NOTICE") to that effect
together with a copy of the Third Party Offer. The following provisions of this
Section 3.2 shall then apply:

     (a)  The Offer Notice shall be deemed to be an offer by Hemosol to sell the
          Offered Units to MDS on the same terms and conditions as those set
          forth in the Third Party Offer, which offer shall be irrevocable for a
          period of thirty (30) days from the date the Offer Notice is given to
          MDS (the "Offer Period").

     (b)  Prior to the expiry of the Offer Period, MDS shall send a written
          notice to Hemosol either:

          (i)  accepting the offer and setting out the number of Offered Units
               that MDS is willing to purchase from Hemosol; or

          (ii) declining to purchase any of the Offered Units.

          If MDS fails to give such written notice prior to the expiry of the
          Offer Period, MDS shall be conclusively deemed to have declined to
          purchase any of the Offered Units.

     (c)  If MDS does not accept the offer or MDS does not agree to buy all of
          the Offered Units, then the Offered Units may be sold by Hemosol to
          the Third Party Purchaser within sixty (60) days of the expiry of the
          Offer Period on the terms and conditions of the Third Party Offer.

<PAGE>
                                      -6-

     (d)  If Hemosol has not sold the Offered Units to the Third Party on the
          terms and conditions of the Third Party Offer within the sixty (60)
          day period referred to in Section 3.2(c), or if Hemosol wishes to sell
          the Offered Units to the Third Party on terms and conditions different
          from the terms and conditions of the Third Party Offer, the Offeror
          shall not sell any Offered Shares without again complying with the
          provisions of this Section 3.2 from time to time.

3.3  OPTION EVENT

     An "OPTION EVENT" under this Agreement shall be deemed to have occurred if:

     (a)  the Partnership is wound up or dissolved or any actions, or any
          proceedings or actions are taken by or against it in respect of any of
          the foregoing; or

     (b)  the Partnership proposes to sell all or substantially all of its
          assets otherwise than in the ordinary course of business.

The Partnership shall notify the other parties hereto immediately upon the
occurrence of an Option Event in respect of it or a decision of it to proceed
with an Option Event.

3.4  RIGHTS ON OPTION EVENT

     Within 20 Business Days of notification of an Option Event (the "OPTION
PERIOD"), MDS may elect to purchase the LP Interest from Hemosol for a purchase
price equal to the fair market value of the LP Interest, as determined (pursuant
to Section 3.6) as at the time immediately prior to the Option Event. The
following provisions of this Section shall govern that purchase:

     (a)  MDS may exercise its option to purchase the LP Interest at any time
          within the Option Period, by giving the Partnership and Hemosol
          written notice to that effect. The option, however, shall terminate
          and be of no further force or effect if the Partnership decides not to
          proceed with the Option Event, if applicable, before the purchase has
          been completed; and

     (b)  MDS shall purchase the LP Interest within 20 Business Days of the end
          of the Option Period.

3.5  GENERAL PROVISIONS RELATING TO LP INTEREST TRANSFER

     In this Section 3.5, the term "PURCHASED UNITS" means the Units to be
purchased by MDS from Hemosol pursuant to Sections 3.2 or 3.4. The closing of
the purchase and sale of the Purchased Units shall, in the absence of a contrary
agreement between MDS and Hemosol, occur at MDS's principal place of business at
10:00 a.m. (Toronto time) on the date specified in the relevant notice or such
later date as is agreed by MDS and Hemosol. Such date and time are referred to
as the "DATE OF CLOSING" and the "TIME OF CLOSING", respectively.

<PAGE>
                                      -7-

     At the Time of Closing on the Date of Closing:

     (a)  MDS shall pay to Hemosol the aggregate purchase price payable for the
          Purchased Units by delivery of a bank draft or certified cheque drawn
          on a Canadian chartered bank in respect of the purchase price or shall
          provide such other form of consideration as MDS and Hemosol agree; and

     (b)  Hemosol shall deliver to MDS: (i) a receipt for payment of the
          purchase price for the Purchased Units; (ii) a written warranty from
          Hemosol that: (A) Hemosol is the sole beneficial owner of the
          Purchased Units, free and clear of all liens, charges, pledges,
          security interests, adverse claims or other encumbrances; and (B)
          there are no contractual or other restrictions on the transfer of the
          Purchased Units which have not been complied with; and (iii) any deeds
          and documents necessary to give effect to the transfer of the
          Purchased Units.

3.6  FAIR MARKET VALUE

     In this Agreement, "FAIR MARKET VALUE" of the LP Interest shall mean the
fair market value of the LP Interest, as determined by a mutually acceptable
accounting firm or investment banking firm that is independent of each of MDS
and Hemosol (an "INDEPENDENT VALUATOR"). The Independent Valuator shall be
instructed to provide MDS and Hemosol with full and open access to the working
papers and determinations made and prepared by the Independent Valuator. The
fees of such Independent Valuator shall be borne equally by MDS and Hemosol.

                                   ARTICLE 4
                                  MISCELLANEOUS

4.1  ASSIGNMENT

     MDS may assign this agreement to an affiliate thereof. Subject to the
foregoing, this Agreement may not be assigned and shall be binding upon all of
the Parties and their respective successors and assigns.

4.2  NOTICE

     All notices and other communications hereunder shall be in writing and
shall be delivered to the Parties at the following addresses or sent by fax at
the following facsimile numbers or at such other addresses or facsimile numbers
as shall be specified by the Parties by like notice:

<PAGE>
                                      -8-

     (a)  if to Hemosol:

          LPBP Inc.
          100 International Blvd.
          Toronto, Ontario
          M9W 6J6

          Attention:          John Anderson
          Facsimile No.:      416 924 2155

     (b)  if to MDS:

          100 International Boulevard
          Toronto, Ontario
          M9W 6J6

          Attention:          James A.H. Garner
          Facsimile No.:      416 213 4222

     (c)  if to MDS Laboratory Services, L.P.:

          c/o MDS Laboratory Services Inc.
          100 International Boulevard
          Toronto, Ontario
          M9W 6J6

          Attention:          General Manager
          Facsimile No.:      416 213 4215

     The date of receipt of any such notice shall be deemed to be the date of
delivery thereof (unless such day is not a Business Day, in which case the date
of receipt shall be deemed to be the next Business Day) or, in the case of
notice sent by facsimile, the date of successful transmission thereof (unless
transmission is received after normal business hours, in which case the date of
receipt shall be deemed to be the next Business Day).

4.3  FURTHER ASSURANCES

     Each Party will execute any deeds, assignments, agreements, and further and
other instruments and writings and give such further assurances as may be
necessary or appropriate to give effect fully to the provisions and intent of
this Agreement. Each of the Partnership and the General Partner confirms its
knowledge of this Agreement and will carry out and be bound by the provisions of
this Agreement to the full extent that it has the capacity and power at law to
do so.

<PAGE>
                                      -9-

4.4  AMENDMENTS

     This Agreement may only be amended by an instrument in writing signed by
all Parties hereto.

4.5  COUNTERPARTS

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

4.6  TERM

     This Agreement shall terminate when Hemosol no longer owns the LP Interest.

4.7  SPECIAL RELIEF

     Each of Hemosol and the Partnership agree that MDS may obtain an injunction
or other appropriate relief against either of them if either contravenes or
fails to comply with any provision of this Agreement in any way, and further
agrees that the provisions of this Section may be pleaded against Hemosol and/or
the Partnership, as applicable, by way of estoppel or defence.

4.8  INVALIDITY

     The invalidity of any provision of this Agreement shall not affect the
validity of any other provision. If any provision of this Agreement is
determined to be void or unenforceable in whole or in part, it shall not be
deemed to affect or impair the validity of any other provision and such
provisions are declared to be separate, distinctive and severable.

4.9  CARRYING ON BUSINESS

     The Partnership covenants and agrees to carry on its business and its
operations in accordance with the provisions of this Agreement and to take no
action which would constitute a contravention of any of its provisions. The
Partnership shall maintain a true copy of this Agreement at its head office for
examination.

4.10 CONFLICT WITH LIMITED PARTNERSHIP AGREEMENT

     If there is a conflict between the provisions of this Agreement and the
provisions of the Limited Partnership Agreement, the Parties shall promptly do
whatever is required to amend the Limited Partnership Agreement so that it
conforms to the provisions of this Agreement.

<PAGE>
                                      -10-

4.11 WAIVER

     No waiver by any Party of any of its rights hereunder shall be effective
unless made in writing and no such waiver shall be construed as, nor constitute,
a continuing waiver of such right nor a waiver of any other right hereunder.

4.12 TIME

     Time shall be of the essence hereof.

     IN WITNESS WHEREOF the Parties have executed this Agreement as of the date
first above written.

                                         MDS INC.

                                         By:____________________________________
                                            Name:
                                            Title:

                                         HEMOSOL INC.

                                         By:____________________________________
                                            Name:
                                            Title:

                                         By:____________________________________
                                            Name:
                                            Title:

                                         MDS LABORATORY SERVICES, L.P., BY ITS
                                         GENERAL PARTNER MDS LABORATORY
                                         SERVICES INC.

                                         By:____________________________________
                                            Name:
                                            Title:

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