Document:

“CONFIDENTIAL TREATMENT REQUESTED

“CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN OMITTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS, WHICH ARE IDENTIFIED BY ***.”

SECURITY AGREEMENT

This Agreement dated for reference April _____, 2007

executed by:

 Innexus Biotechnology Inc., a corporation incorporated under the laws of the Province of British Columbia, Canada having an office at Suite 2760-200 Granville Street, Vancouver, British Columbia 

Fax number ************; Attention: Jeff Morhet

(the “Debtor”)

in favour of:

RP Dynamic Cross Linking Company LP, an ************ ******** organized under the laws of ********************* an office at ******************************************* ******************

Fax number *********; Attention: ************ 

(the “Secured Party”)

witnesses that for valuable consideration the Debtor covenants and agrees with the Secured Party as follows:

1.

ORGANIZATION OF AGREEMENT

1.1

Organization of Agreement.  This Agreement has been organized on the basis of the following sections:

Section

Heading

1

Organization of Agreement

2

Secured Obligations

3

Charged Property; Discharge Provision

4

Representations and Covenants

5

Events of Default

6

Rights, Remedies and Disclaimers

7

Other Agreements

8

Interpretation

1.2

Defined Terms.  Unless the context otherwise requires:

(a)

the terms defined in Schedule A will have those defined meanings in this Agreement; and 

(b)

terms defined in the PPSA when used in this Agreement will have those defined meanings 

unless such terms are otherwise defined herein.

2.

SECURED OBLIGATIONS

2.1

General.  The Charges created hereby secure payment, observance, performance and satisfaction of all present and future debts, liabilities and obligations of the Debtor to the Secured Party pursuant to or with respect to the Parent Agreement, whether direct or indirect, absolute or contingent, joint or several, matured or not, extended or renewed, wherever and however incurred, of whatsoever nature or kind, whether or not provided for herein, and whether owed as principal, guarantor, indemnitor or otherwise (collectively, the “Secured Obligations”).

2.2

Continuing Security.  The Charges created hereby are general and continuing security for the Secured Obligations and any ultimate unpaid balance thereof, and the Secured Obligations may be reduced to zero from time to time without affecting the continuing nature of the Charges created hereby as security for Secured Obligations thereafter incurred. No payment, observance, performance or satisfaction of the Secured Obligations, nor any ceasing by the Debtor to be indebted or liable to the Secured Party, will be deemed to be a redemption or discharge of the Charges created hereby.

3.

CHARGED PROPERTY; DISCHARGE PROVISION

3.1

Grant.  As security for the Secured Obligations:

(a)

the Debtor grants to the Secured Party a Security Interest in, and grants, mortgages and charges to the Secured Party by way of a fixed and specific charge, and absolutely assigns to the Secured Party, all of the Debtor’s right, title and interest in and to the Collateral; and

(b)

the Debtor grants, mortgages and charges to the Secured Party by way of a floating charge all of the Debtor’s right, title and interest in and to the Collateral other than that Collateral that is validly and effectively subject to the Charges created by subparagraph (a) above.

3.2

Attachment.  The Debtor acknowledges that Value has been given and that the parties have not agreed to postpone the time for attachment of the Charges created hereby except as provided in the preceding paragraph.

3.3

Discharge.  No discharge of the Charges created hereby will be effective unless it is in writing and is executed and delivered by the Secured Party.

4.

REPRESENTATIONS AND COVENANTS

4.1

General.  The Debtor represents and warrants to the Secured Party that each statement made in this Agreement is true, complete and accurate. No investigation by the Secured Party will diminish its right to rely on such statements, all of which will survive until the Secured Party has discharged this Agreement. The Debtor will strictly observe and perform each of its agreements set out herein except to the extent the Secured Party may from time to time, by prior written notice, consent or agree otherwise or waive such compliance.

4.2

Authority to Charge.  The Debtor has good right, full power and lawful authority to enter into this Agreement and to create the Charges provided for herein, and all necessary resolutions have been passed and all other necessary steps have been taken to authorize the execution and delivery of this Agreement and to make the Charges provided for herein effective.

4.3

Promise to Pay.  The Debtor will pay, observe, perform and satisfy all of the Secured Obligations as and when the same are required to be paid, observed, performed and satisfied.

4.4

Title and Adverse Claims.  All existing Charged Property is legally and beneficially owned by the Debtor. The Debtor will defend the Charged Property for the benefit of the Secured Party against the claims and demands of all Persons. The Debtor will immediately notify the Secured Party of any claim, litigation or contemplated expropriation affecting the Debtor or any of the Charged Property.

4.5

Charges.  All of the Charged Property is free and clear of all Charges other than the Charges created hereby. The Debtor will not create, assume or permit the existence of any Charge affecting any of the Charged Property, other than:

(a)

Charges in favour of the Secured Party; and

(b)

Charges approved in writing by the Secured Party prior to their creation or assumption.

Without limiting the above prohibition the Debtor will, upon written request by the Secured Party, immediately pay all obligations, whether or not due, under all Charges prohibited hereby and will cause the same to be discharged immediately. 

4.6

Dispositions.  The Debtor will not sell, lease, assign, release, surrender or otherwise dispose of or part with possession of Charged Property or agree to do so.

4.7

Jurisdictions and Locations.  The Debtor has its chief executive office in British Columbia and will not allow its chief executive office to be in any other jurisdiction except upon 15 days’ prior written notice to the Secured Party. 

4.8

Taxes.  The Debtor will pay when due all taxes, rates, levies, assessments and other charges of every nature which may be imposed against or in respect of the Debtor or any of the Charged Property, provided that the Debtor may refrain from paying such charges if and for so long as the Debtor diligently and in good faith contests the charges and gives to the Secured Party such security as the Secured Party may in its absolute discretion require.

4.9

Insurance.  With respect to insurance:

(a)

the Debtor will keep all of the Charged Property that is of an insurable nature insured for full replacement value against loss or damage by fire (with extended perils coverage), theft, other risks as are customarily insured against for similar property, and such other risks as the Secured Party may reasonably require;

(b)

all such insurance will be with insurers acceptable to the Secured Party, and will contain a standard mortgage clause in favour of the Secured Party as its interest may appear in a form approved by the Insurance Bureau of Canada;

(c)

the Debtor assigns to the Secured Party the proceeds of all insurance required hereby and upon request will do everything necessary to enable the Secured Party to obtain the insurance proceeds, and if any such proceeds are or become payable the Secured Party may apply the same on account of the Secured Obligations, whether or not then due, and the Debtor waives any statutory right to request or require the insurance proceeds to be applied in any particular manner;

(d)

the Debtor will maintain public liability insurance in amounts and with insurers acceptable to the Secured Party and, if the Secured Party requests, with the Secured Party as an additional insured;

(e)

the Debtor will pay when due all premiums in connection with all insurance required hereby, and will provide to the Secured Party insurance certificates evidencing all such insurance and certified copies of the applicable policies, and will provide the Secured Party with evidence of renewal or replacement insurance at least 10 days before any policy expires or is terminated; and

(f)

if any insurance obtained is unacceptable to the Secured Party, the Secured Party may require the Debtor to obtain new insurance approved by the Secured Party.

4.10

Marking Charged Property.  Upon request the Debtor will mark and otherwise take appropriate steps to indicate that the Charged Property is subject to the Charges created hereby.

4.11

Fixtures, Accessions and Commingled Goods.  None of the Charged Property is nor will the Debtor permit Charged Property to become:

(a)

a Fixture; or

(b)

an Accession to or part of other property unless the other property is Charged Property owned by the Debtor free and clear of all Charges other than those in favour of the Secured Party.

4.12

Intangibles.  With respect to all Intangibles, the Debtor will observe and perform all of the obligations imposed upon the Debtor by or in respect of any and all Intangibles and will maintain the same in good standing.

4.13

Legal and Trade Names.  Each name of the Debtor (including its name in any French or combined English-French form) is set out on the first page hereof, and the Debtor has not had, used, or carried on business under, and will not at any time have, use or carry on business under, any other name (including any French or combined English-French form) except upon giving 15 days’ prior written notice to the Secured Party.

4.14

Conduct of Business and Records.  The Debtor will conduct its business in a proper and efficient manner so as to protect and preserve the Charged Property.  The Debtor will keep complete and accurate records of the Charged Property as well as proper books of account for its business.

4.15

Information and Inspection.  The Debtor will from time to time immediately deliver to the Secured Party all information requested by the Secured Party relating to Charged Property and the Debtor’s financial or business affairs. The Secured Party may from time to time inspect Charged Property and Books and Records wherever located and for that purpose the Secured Party will have access without charge to the Debtor’s places of business, and to all other places where Charged Property is or may be kept, and to all mechanical or electronic equipment and processes where any Charged Property or Books and Records may be kept or from which any of the same may be retrieved, and the Debtor will render all necessary assistance. The Debtor authorizes any Person holding any Books and Records to make the same available in a readable form to the Secured Party upon request by the Secured Party.

4.16

Amalgamations.  The Debtor will not permit any corporation to wind-up into or amalgamate or enter into a similar arrangement with the Debtor.

4.17

Further Assurances.  Upon the Secured Party’s request from time to time the Debtor will execute and deliver such further documents (including registrable fixed and specific Charges on such of the Charged Property as the Secured Party may from time to time request) and do such other acts as the Secured Party requires in order to give effect to the intent of this Agreement or to confirm, create, perfect or maintain perfection of the Charges provided for herein.

4.18

Charges and Expenses.  The Debtor will pay on demand all charges and expenses, including legal costs on a solicitor and his own client basis, which may be incurred or charged by or on behalf of the Secured Party or any Receiver in connection with:

(a)

preparing, negotiating, interpreting, amending, registering, renewing or discharging this Agreement or any related registration;

(b)

establishing or confirming the priority of the Charges created hereby;

(c)

complying with a demand by any Person purporting to be entitled under the PPSA to a copy of this Agreement or any related information;  and

(d)

exercising and enforcing rights, remedies and powers under this Agreement or otherwise in relation to any of the Secured Obligations (including correcting any non-compliance by the Debtor, and inspecting, preserving, maintaining, repairing, completing, repossessing, preparing for disposition, disposing of, collecting payments under, borrowing on the security of, and otherwise realizing on the Charged Property, and carrying on the Debtor’s business, and taking proceedings in relation to this Agreement or by reason of non-payment of or to procure payment of any of the Secured Obligations).

The Debtor will on demand pay interest on all such amounts at the highest rate then applicable to any of the Secured Obligations.

4.19

Liability for Deficiency.  If the amounts realized pursuant hereto are insufficient to pay the Secured Obligations in full, the Debtor will immediately pay the deficiency to the Secured Party.

5.

EVENTS OF DEFAULT

5.1

General.  The occurrence of any of the following events will constitute an Event of Default:  

(a)

the occurrence of a Rejection Event, as this term is defined in the Royalty Agreement; 

5.2

Floating Charge.  The floating charge created hereby will not become a fixed charge until, but will become a fixed charge immediately upon, the earlier of the occurrence of an Event of Default.

6.

RIGHTS, REMEDIES AND DISCLAIMERS

6.1

Correct Non-Compliance.  If the Debtor fails to perform any of its obligations hereunder or fails upon request to give the Secured Party proof thereof, the Secured Party may (but will not be obligated to) perform any or all of such obligations or cause them to be performed without prejudice to the other rights and remedies of the Secured Party.

6.2

Indulgences.  The Secured Party may grant extensions of time and other indulgences, take and give up security, accept compositions, make settlements, grant releases and discharges, refrain from perfecting or maintaining perfection of Charges, and otherwise deal with the Debtor, debtors of the Debtor, sureties and other Persons and with the Charged Property and other security, all as the Secured Party may see fit and without prejudice to the liability of the Debtor or the rights or remedies of the Secured Party.

6.3

Allocation of Payments and Increases.  All payments made in respect of the Secured Obligations from time to time, and any monies realized from any security held therefor, may be applied to such parts of the Secured Obligations (whether or not then due) as the Secured Party may see fit or, at the option of the Secured Party, may be held unappropriated in a collateral account or released to the Debtor, and the Secured Party may from time to time revoke or alter such application or holding, all without prejudice to the liability of the Debtor or the rights or remedies of the Secured Party. The Secured Party may also hold as additional security any increases or profits (including dividends) in respect of Charged Property.

6.4

Set-Off.  Whenever any or all of the Secured Obligations are immediately due and payable or the Secured Party has the right to declare the same to be immediately due and payable (whether or not it has so declared), the Secured Party may at any time set off any amounts owed to the Debtor by the Secured Party in any capacity  against any or all of the Secured Obligations, whether or not then due and whether absolute or contingent.

6.5

Acceleration.  Upon the occurrence of an Event of Default the Secured Party may declare any or all of the Secured Obligations to be immediately due and payable.

6.6

Enforcement on Default.  Upon the occurrence of an Event of Default the Charges created hereby will immediately become enforceable. To enforce the Charges created hereby the Secured Party may exercise, in addition to any rights any remedies otherwise available to it at law, any one or more of the following rights and remedies with respect to all or such of the Charged Property as the Secured Party considers appropriate:

(a)

appoint by instrument a Receiver with or without bond as the Secured Party may determine, and may from time to time remove such Receiver and appoint another in its place;

(b)

immediately and without notice:

(i)

enter upon, occupy (and remain in occupation of until the realization is complete) and use any of the Debtor’s places of business and any other premises where Charged Property is or may be kept, and take possession of, use, remove, preserve, protect, disable, maintain, repair and complete the Charged Property, all with power to exclude the Debtor and its agents and employees;

(ii)

enforce the observance and performance by others of their obligations and liabilities in respect of the Charged Property; and

(iii)

exercise any or all of the rights and remedies of the Debtor in respect of the Charged Property;

all in the manner and to the extent the Secured Party may consider reasonable, and without limitation any completion of any Charged Property may be in accordance with existing plans or otherwise as the Secured Party may determine in its absolute discretion;

(c)

sell, lease or otherwise dispose of or concur in selling, leasing or otherwise disposing of the Charged Property, whether by public or private sale or lease or otherwise, in such manner, at such price, and on such terms and conditions (as to deferred payment and otherwise) as the Secured Party may consider reasonable;  and

(d)

exercise any other rights and remedies hereunder and any other rights and remedies of a secured party or mortgagee under the PPSA, as amended or replaced from time to time, or otherwise at law or in equity.

6.7

Receiver.  A Receiver appointed pursuant hereto will be the agent of the Debtor and not of the Secured Party. To the extent permitted by law or to such lesser extent permitted by its appointment the Receiver will have all of the rights, remedies and powers of the Secured Party hereunder and, in addition, will have power to carry on or concur in carrying on all or any part of the business of the Debtor. For these purposes the Receiver may from time to time borrow money and may secure such borrowings and related interest and costs by granting Charges and certificates on the Charged Property in priority to the Charges created hereby.

6.8

Proceeds of Disposition.  Subject to applicable law and any Charges ranking in priority to the Charges created hereby, all amounts realized from Charged Property pursuant hereto will be applied as the Secured Party may see fit within the following constraints:

(a)

firstly, in or toward payment of all charges and expenses (including legal fees and disbursements on a solicitor and his own client basis) incurred or charged by the Secured Party or Receiver in connection with the exercise by the Secured Party or Receiver of the rights, remedies and powers granted pursuant hereto or otherwise, including the Receiver’s remuneration and all amounts properly payable by the Receiver; and

(b)

secondly, in or toward payment to the Secured Party of the Secured Obligations.

6.9

Liability of Secured Party and Receiver.  Neither the Secured Party nor any Receiver will be liable or accountable for any failure to exercise or for any delay in exercising any of its rights, remedies or powers; nor will the Secured Party or any Receiver be responsible for any debts contracted by it, for damages to Persons or property, or for salaries or non-fulfilment of contracts, during any period when it manages or otherwise deals with Charged Property; nor will the Secured Party be responsible for any misconduct, negligence or failure to act on the part of any Receiver; nor will anything contained herein or any act of the Secured Party or any Receiver render the Secured Party or any Receiver a mortgagee in possession or render them liable to account as a mortgagee in possession or for any loss on realization; nor will the Secured Party or any Receiver be accountable for the proceeds of any disposition until the monies therefor are actually received; nor will the Secured Party or any Receiver be bound to do, observe, perform, or to see to the observance or performance by the Debtor of, any obligation of the Debtor; nor will the Secured Party or any Receiver be obligated to keep Charged Property identifiable; nor will the Secured Party or any Receiver be obligated to take necessary or other steps to preserve rights against other Persons with respect to anything included in the Charged Property.

6.10

Statutory Waiver.  To the fullest extent permitted by law the Debtor waives all of the rights, benefits and protections given by the provisions of any existing or future statutes which impose any greater obligations upon the Secured Party than those provided for herein or which impose limitations upon the rights or remedies of a secured party or upon the methods of realization of security, including any seize or sue or anti-deficiency statutes.

6.11

No Obligation to Advance.  None of the preparation, execution, perfection or registration of this Agreement nor the making of any Advance will bind the Secured Party to advance, continue, extend time for payment of, or accept anything which constitutes or would constitute a Secured Obligation, all of which will remain in the discretion of the Secured Party.

6.12

Power of Attorney.  The Debtor hereby irrevocably appoints the Secured Party or the Receiver, as the case may be, as the attorney of the Debtor, with full power of substitution, to execute and deliver under seal or otherwise in the name of the Debtor all documents, and generally to use the name of the Debtor and to do all things, as may be necessary or incidental to the exercise of any of the rights, remedies or powers conferred on the Secured Party or the Receiver, as the case may be, pursuant hereto or otherwise.

6.13

Waiver.  The Secured Party may from time to time waive in whole or in part any right, remedy, breach or default under any provision of this Agreement, but any such waiver on any particular occasion will not be deemed to be a waiver of any such right, remedy, breach or default thereafter or of any other right, remedy, breach or default. No waiver will be effective unless in writing and executed by the Secured Party and, without limitation, no failure to exercise or delay in exercising any right or remedy of the Secured Party will operate as a waiver of such right or remedy.

6.14

Additional Security.  The Charges created hereby are in addition to and not in substitution for any other Charges now or hereafter held by the Secured Party.

6.15

Rights Cumulative.  No right, remedy or power of the Secured Party or any Receiver is intended to be exclusive, and each will be in addition to every other right, remedy and power now or hereafter existing whether or not contained herein.

6.16

Order of Realization.  The Secured Party may realize upon the Charges created hereby and any other present or future Charges in such order as it may consider appropriate, and any such realization will not prevent realization on any other Charges.

7.

OTHER AGREEMENTS

7.1

Amalgamation.  Without limiting the prohibition contained herein against the Debtor amalgamating without the Secured Party’s consent, if the Debtor amalgamates with any other corporations the Charges created hereby will extend to Charged Property of each of the amalgamating corporations at the time of the amalgamation and to Charged Property thereafter owned or acquired by the amalgamated corporation, and the Secured Obligations will include all Secured Obligations of the amalgamated corporation.

7.2

Secured Obligations Absolute.  The obligation of the Debtor to pay, observe, perform and satisfy the Secured Obligations is absolute and unconditional and will not be affected by any circumstance, including any set-off, claim, counterclaim, defence or other right which the Debtor now or hereafter has against the Secured Party or anyone else for any reason whatsoever.

7.3

Amendment.  This Agreement may only be amended by a document executed by the party against whom enforcement of the amendment is sought.

7.4

Communication.  No notice, consent or other communication in connection herewith (including legal process) will be effective unless it is in writing and is executed by the party giving the same or the party’s authorized agent. Any such communication may be validly given by delivery, mail or fax to the address for the intended party set out on the first page hereof, or a corresponding fax number, or such other address or fax number as the intended party may have given notice of. Any such communication given by mail will be deemed to have been given on the earlier of the date of actual receipt or, except when postal services are not functioning, the expiry of five days after the date of mailing.

7.5

Assignment.  The Debtor will not assign this Agreement or any of its rights or benefits hereunder.

7.6

Copies of Agreement and Financing Statements.  The Debtor acknowledges receipt of a copy of this Agreement and waives the right to receive a copy of all present and future Financing Statements and Financing Change Statements filed in connection with the Charges created hereby and all related Verification Statements.

8.

INTERPRETATION

8.1

Governing Law and Attornment.  This Agreement will be governed by the laws in effect in British Columbia. The Debtor irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts of British Columbia with respect to all matters arising in connection with this Agreement and the Secured Obligations.

8.2

Successors.  This Agreement will enure to the benefit of and be binding upon the parties and their respective heirs, personal representatives, successors and permitted assigns.

8.3

Severability.  The invalidity or unenforceability of any provision of this Agreement will not affect the remaining provisions or the remainder of the impugned provision.

8.4

Number and Gender.  Unless the context otherwise requires, words importing the singular will include the plural and vice versa, and words importing gender will include all genders.

8.5

Headings.  Headings have been inserted for convenience of reference only and are not to affect interpretation.

8.6

Entire Agreement.  The Secured Party has not made any representation or agreement or undertaken any obligation in connection with the subject matter of this Agreement other than as specifically set out herein and in any other document executed by the Secured Party.

In witness whereof the Debtor has executed this Agreement under seal, with the intent that it take effect as a deed, at ____________________, British Columbia.

							
	 
	 
	EXECUTION DATE

	 
	 

	OFFICER SIGNATURE(S)

	 
	Y

	M

	D

	 
	BORROWER(S) SIGNATURE(S)

	 
	 
	 
	 
	 
	 
	 

	

	 
	 
	 
	 
	 
	INNEXUS BIOTECHNOLOGY INC.,

by its authorized signatory(ies):

Print Name:

Print Name:

	OFFICER CERTIFICATION:

Your signature constitutes a representation that you are a solicitor, notary public or other person authorized by the Evidence Act, R.S.B.C. 1996, c. 124, to take affidavits for use in British Columbia and certifies the matters set out in Part 5 of the Land Title Act as they pertain to execution of this instrument.

DM_VAN/267160-00001/6661143.4

SCHEDULE A

DEFINED TERMS

“this Agreement”, “hereby”, “herein”, “hereof”, “hereto” and “hereunder” refer to the whole of this Agreement, including the attachments, all as amended from time to time, and not to any subdivision hereof.

“Books and Records” means all books, records, files, papers, disks, documents and other repositories of data recording, evidencing or relating to Charged Property or the Debtor to which the Debtor (or any Person on the Debtor’s behalf) has a right of access.

“Charge” means any Security Interest, mortgage, charge (fixed or floating), pledge, hypothec, lien (statutory or otherwise), assignment, lease, conditional sale or other title retention agreement, trust or other encumbrance of any nature however arising.

“Charged Property” means all property, assets, undertaking and interests now or hereafter subject to the Charges created hereby, and any reference to “Charged Property” will unless otherwise provided be deemed to refer to the Charged Property as a whole or any parts thereof.

“Collateral” has the meaning given to it in Schedule B.

“Debtor” has the meaning given to in on the first page of this Agreement, and includes any heirs, personal representatives, successors and permitted assigns of the Debtor, as the case may be, whether immediate or derivative.

 “Event of Default” means any event referred to in paragraph 5.1 as constituting an Event of Default.  

“including” means including without limitation.

“Parent Agreement” means that certain agreement made April ____, 2007 between the Debtor (in that agreement referred to as “InNexus”), Innexus Bioscience (Barbados) Inc., a company incorporated in Barbados (in that agreement referred to as “Innexus Bioscience”) and the Secured Party (in that agreement referred to as “RP”).

“Person” means any individual, proprietorship, firm or artificial body, including any corporation, government or instrumentality.

 “PPSA” means the Personal Property Security Act (British Columbia) and the regulations made thereunder.

“Receiver” means a receiver, receiver-manager or receiver and manager of the Debtor or Charged Property, whether appointed by the Secured Party or a court upon the application of the Secured Party.

“Royalty Agreement” means that certain agreement dated for reference April ___, 2007 between Innexus Bioscience (Barbados) Inc., a company incorporated in Barbados (in that agreement referred to as “ Grantor”), and the Secured Party (in that agreement referred to as “Royalty Holder”) of the second part.

“Secured Obligations” has the meaning given to it in section 2.

“Secured Party” has the meaning given to in on the first page of this Agreement, and includes any successors or assigns of the Secured Party, whether immediate or derivative.

DM_VAN/267160-00001/6661143.4

- 3 -

SCHEDULE B

Collateral means

All presently owned or held and hereafter acquired, owned or held personal property of whatever nature or kind and wheresoever situate, including without limitation all Goods and Intangibles,  which in any way or manner relates to the Field (as defined below), and without limitation including the following which in any way or manner relates to the Field (as defined below),:

(a)

****************************************************************** ****************************************************************** ****************************************************************** ****************************************************************** ***********************

(b)

******************************************************************  ********************

(c)

***********

(d)

*******************************

(i)

*****************************

(ii)

************************************************************************************************************************************************************************************ ****************************************************************************

(iii)

**********************************

(e)

***************************************************************** ***************************************************************** ***************************************************************** ****************

(f)

********************

(g)

***************************************************************** **************

(h)

***************************************************************** ******************* 

(i)

********************

(j)

***************************************************************** ******************

(k)

***********

(l)

****************************

(m)

*****************************************************************

(n)

**********************

**************************************

(a)  ***************************************************************** ***************************************************************** ************************************ 

(b)  **********************************************************************  *************************************************************************************************************************************************************************************************************************************************************************************************************************************

(c)  ************************************************************************** **************************************************************************************** 

(d)  ***************************************************************** *******************************************************************************************  

(e)  ************************************************************************** *************************************************************************************************************************

DM_VAN/267160-00001/6661143.4Converted by EDGARwiz

Drawn &
Prepared by:

Lex Caribbean

Worthing Corporate Center
Worthing

Christ Church

Barbados

“CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS
DOCUMENT
HAVE BEEN OMITTED AND HAVE BEEN SEPARATELY FILED WITH THE
COMMISSION.
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE
OMITTED
PORTIONS, WHICH ARE IDENTIFIED BY ***.”

STAMPED
TO SECURE US$2,500,000.00 BARBADOS:

THIS
DEBENTURE/MORTGAGE is dated the

day
of

2007
and made BETWEEN:

(1)

INNEXUS BIOSCIENCE (BARBADOS) INC. a company incorporated
and registered under the provisions of the Companies Act CAP 308 of the Laws of
Barbados as Company No. 11693, and licensed as an international business company
under the International Business Companies Act, and whose registered office is
situate at Chamberlain Place, Broad Street, Bridgetown, St. Michael, Barbados in
this Island (the “Company”) and

(2)

RP

DYNAMIC

CROSS

LINKING

LP.,

**********************************************
********************************************************************

********************************************************************

******************************** (hereinafter called the “Secured
Party”) WHEREAS:

(1)

By a Purchase Agreement and a Royalty Agreement each of which is
dated the

April, 2007 and made between the Company and the Secured Party
(the “Agreements”) the Secured Party agreed to
*********************************

********************************************************************
********************************************************************
********************************************************************

(2)

The Company has agreed to provide security for the performance by
the Company of its obligations under the Agreements in the manner hereinafter
appearing.

NOW THIS DEED WITNESSES as follows: 1. COVENANT TO PAY

1.1 The Company hereby COVENANTS that it will on demand pay
and discharge the Secured Liabilities when due to the Secured Party. For the
purposes of this Debenture/Mortgage, the term “Secured Liabilities” means all
monies, obligations and liabilities whether actual or contingent now or
hereafter due owing or incurred to the Secured Party by the Company in any
manner whatsoever (whether alone or jointly and in whatever style name or form
and whether as principal or surety) including without limitation any liability
to pay liquidated damages computed in accordance with the provisions of the
Agreements in respect of any loss or damage suffered by the Secured Party as a
consequence of the Company’s breach of the Agreements together with interest to
date of payment at the rate set forth in Section 2.7 of the Royalty Agreement
(the “Interest Rate”) and upon such terms as may from time to time be agreed and
all reasonable commission fees and other charges and all

reasonable legal and other costs charges and expenses incurred by
the Secured Party in relation to the creation or enforcement of this security or
the assets hereby charged on a full indemnity basis. A reference in this deed to
“Secured Liabilities” shall be deemed to include a reference to any part
thereof.

 1.2 The Secured Party shall cease to be under any further
commitment to the Company and the Secured Liabilities shall immediately become
due and payable on demand on the occurrence of a Rejection Event, as defined in
the Royalty Agreement.

2.

INTEREST

2.1

The Company shall pay commission interest fees and charges to date
of payment (as well after as before any demand or judgment or the liquidation or
administration of the Company) at the rates and upon the terms set out in the
Agreements or at such other rates as may from time to time be agreed between the
Company and the Secured Party in writing.

3.

CHARGING CLAUSE

3.1 The Company as beneficial owner hereby charges to the Secured
Party as a continuing security for the payment and discharge of the Secured
Liabilities:

3.1.1. all right title estate and other interests of the Company
in any

freehold and leasehold properties both present and future.

3.1.2. all stocks shares bonds and securities of any kind
whatsoever

whether marketable or otherwise and all other interests
including

but not limited to loan capital of the Company both present and
future in any company firm consortium or entity wheresoever situate including
all allotments accretions offers rights benefits and advantages whatsoever at
any time accruing offered or arising in respect of or incidental to the same
whether by way of conversion redemption bonus preference option dividend
interest or otherwise in respect thereof (hereinafter referred to as the
“Securities”);

3.1.3. all book and other debts revenues and claims both present
and future (including bank deposits and credit balances) and all things in
action due or owing or which may become due or owing to or purchased or
otherwise acquired by the Company and the full benefit of all rights and
remedies relating thereto including but not limited to any negotiable or
non-negotiable instruments guarantees indemnities debentures legal and equitable
charges and other security reservation of proprietary rights of tracing liens
and all other rights and remedies of whatsoever nature in respect of the
same;

3.1.4 (a)

all the goodwill and all patents patent applications trade marks
trade names registered designs copyrights

computer programmes inventions confidential information know-how
and all other intellectual or intangible property or rights and all applications
for the

protection of the foregoing in any part of the world and all
licences agreements and ancillary and connected rights including all royalty
fees and other income both present and future of the Company, and

(b)

without prejudice to the generality of the foregoing, the

intellectual
property rights specified in Schedule 1, (c)

(collectively,
the “Intellectual Property”); and

3.1.5 the undertaking and all other property assets and rights of
the Company whatsoever and wheresoever both present and future including but not
limited to the stock in trade of the Company wheresoever and the whole of the
property assets and rights which is or may be from time to time while this
instrument is in force comprised in the property and undertaking of the Company
and the property and assets described in the foregoing sub-clauses 3.1.1, 3.1.2,
3.1.3, and 3.1.4 (if and in so far as the charges thereon herein contained shall
for any reason be ineffective as fixed charges).

3.2 The charge hereby created shall as regards the property and
assets described in the foregoing sub-clauses 3.1.1, 3.1.2, 3.1.3, and 3.1.4 be
a fixed first charge (and as regards all those parts of the freehold and
leasehold property now vested in the Company shall constitute a charge by way of
legal mortgage thereon) and as to the property and assets described in
sub-clause 3.1.5 shall be a floating charge subject to Clause 3.1.4. The Secured
Party may at any time by notice in writing to the Company convert such floating
charge into a fixed charge as regards all the assets covered

thereby or any assets specified in the notice which the Secured
Party may in its absolute discretion consider to be in jeopardy or which may
become the subject of an injunction.

3.3

The Company hereby covenants that it will not without the prior
consent in writing of the Secured Party:

(a) sell assign discount factor pledge charge or otherwise dispose
of the premises Thirdly described or any part thereof or deal with the same
otherwise than in accordance with Clause 4.1.2(a);

(b) create or attempt to create or permit to subsist any mortgage
debenture charge or pledge upon or permit any lien or other encumbrance (save a
lien arising by operation of law in the ordinary course of trading) to arise on
or affect the goodwill undertaking property assets revenues and rights hereby
charged (together the “Charged Assets”) or any part thereof; or

© part with possession of transfer sell lease or otherwise dispose
of the Charged Assets or any part thereof or attempt or agree so to do (except
in the case of stock in trade charged by way of floating charge only which may
be sold at market value in the usual course of trading as now conducted and for
the purpose of carrying on the Company's business).

3.4 Notwithstanding anything herein contained if the Company
further charges pledges or otherwise encumbers (whether by way of fixed or
floating security) any of the property or assets described in sub-clause 3.1.5
or attempts so to do without the prior consent in writing of the Secured Party
or if any other person levies or attempts to levy any distress execution
sequestration or other process against any of the property or assets
described

in sub-clause 3.1.5 the charge hereby created over the assets the
subject thereof shall automatically without notice operate as a fixed charge
instantly such event occurs.

3.5 Any charge hereafter created (otherwise than in favour of the
Secured Party) without the prior approval in writing of the Secured Party shall
be expressed to be subject to this security and the Company will deposit with
the Secured Party and the Secured Party during the continuance of this security
shall be entitled to hold all deeds and documents of title relating to the
Charged Assets.

4.
COVENANTS BY THE COMPANY

4.1
The Company hereby covenants with the Secured Party that during the continuance
of this security the Company will at all times:

conduct
and carry on its business in a proper and efficient manner and not make any
substantial alteration in the nature of or mode of conduct of that business and
keep or cause to be kept proper books of account relating to such business;

observe
and perform all covenants and stipulations from time to time affecting its
freehold or leasehold property or the mode of user or enjoyment of the same and
not without the prior consent in writing of the Secured Party enter into any
onerous or restrictive obligations affecting any such property or make any
structural or material alteration thereto or do or suffer to be done on any such
property anything which is ‘development’ as defined in the Town and Country
Planning Act, CAP 240 nor do or suffer or omit to be done any

act matter or thing whereby any provision of any Act of Parliament
order or regulation from time to time in force affecting any such property is
infringed;

(c)

observe and perform all covenants and stipulations from time to
time affecting the Intellectual Property and all other industrial or intangible
property or any licence or ancillary or connected rights or benefits from time
to time relating to the Intellectual Property and preserve maintain and renew
when necessary or desirable all such licences and rights;

keep
all buildings and erections and all plant machinery fixtures fittings vehicles
computers and equipment and effects and every part thereof in good and
substantial repair and in good working order and condition with recognizable
identification markings and not pull down or remove or sell or otherwise dispose
of any of the same without the prior consent in writing of the Secured Party
except in the ordinary course of use repair maintenance or improvement. If the
Company is at any time in default in complying with this covenant the Secured
Party shall be entitled but not bound to repair and maintain the same with power
for the Secured Party its agents and their respective employees to enter any of
the Company's property for that purpose or to inspect the same and any sum so
expended by the Secured Party shall be repayable by the Company to the Secured
Party on demand together with interest at the Interest Rate.

at its own expense insure and keep insured all its property and
effects whatsoever of an insurable nature with insurers previously approved by
the Secured Party in writing against loss or damage by fire civil commotion
explosion earthquake subsidence landslip heave aircraft and articles
dropped

therefrom flood storm lightning burst pipes theft malicious damage
impact and such other risks and contingencies as the Secured Party shall from
time to time request to the full replacement value thereof from time to time
including architects, surveyors, engineers and all other professional fees and
demolition charges together with full provision for estimated inflation and loss
of rent for three years in the name of the Company with the interest of the
Secured Party noted on the policy and with the policy containing such provisions
for the protection of the Secured Party as the Secured Party may reasonably
require to avoid the interest of the Secured Party being prejudiced by any act
of the Company or of any occupier and maintain such other insurance policies
(with the interest of the Secured Party noted thereon) containing like
provisions for the protection of the Secured Party as are normally maintained by
prudent companies carrying on similar businesses and duly pay within one week of
the same becoming due all premiums and other moneys necessary for effecting and
keeping up such insurances and on demand produce to the Secured Party the
policies of such insurance and proof of such payments failing which the Secured
Party may take out or renew such insurances in any sum which the Secured Party
may think expedient and all money expended by the Secured Party under this
provision shall be reimbursed by the Company on demand and bear interest at the
Default Rate from the date of payment by the Secured Party. All moneys to be
received by virtue of any insurance maintained or effected by the Company
(whether or not in pursuance of the obligations hereunder) are hereby charged to
and shall be paid to the Secured Party (or if not paid by the insurers directly
to the Secured Party held on trust for the Secured Party) and shall at the
option of the Secured Party be applied in replacing restoring or reinstating the
property or assets destroyed damaged or

lost (any deficiency being made good by the Company) or (save in
the case of leasehold premises) in reduction of the Secured Liabilities;

punctually pay and indemnify the Secured Party and any receiver
appointed by it against all existing and future rent rates taxes duties charges
assessments impositions and outgoings whatsoever (whether imposed by agreement
statute or otherwise and whether in the nature of capital or revenue) now or at
any time during the continuance of this security payable in respect of the
Charged Assets or any part thereof or by the owner or occupier thereof. If any
such sums shall be paid by the Secured Party or by any such receiver the same
shall be repaid by the Company on demand with interest at the Interest Rate;

not
(without the prior consent in writing of the Secured Party) vary surrender
cancel assign charge or otherwise dispose of or permit to be forfeit its
leasehold interest in any premises or any credit sale hire purchase leasing
rental licence or like agreement for any material equipment used in its business
or agree any rent review but shall generally fulfill its obligations under every
such lease and agreement and when required produce to the Secured Party proof of
all payments from time to time due from the Company thereunder;

(h) not (without the prior consent in writing of the Secured
Party) transfer sell lease or dispose of any Charged Assets to any subsidiary
affiliate or holding company (as defined by the Companies Act, CAP 308) of the
Company or of any such third party or any subsidiary of any such holding company
save on terms previously approved in writing by the Secured Party;

(i)

not do or cause or permit to be done anything which may in any way
depreciate jeopardize or otherwise prejudice the value to the Secured Party of
the security hereby charged and not (without the prior consent in writing of the
Secured Party) incur any expenditure or liabilities of an exceptional or unusual
nature;

(j)

not to contribute more than $10,000.00 in aggregate to the capital
of any existing or future subsidiary or affiliate of the Company without the
prior consent in writing of the Secured Party;

(k)

not to make any loans to or give any guarantees or indemnity in
respect of the obligations of any subsidiary or affiliate of the Company or of
any director or shareholder of the Company or of any director or shareholder of
any subsidiary or affiliate of the Company without the prior written consent of
the Secured Party; and

(l)

not to repay any loan made to the Company by any director or
shareholder of the Company without first repaying to the Secured Party the
Secured Liabilities.

4.2 The Company hereby further covenants with the Secured Party
that during the continuance of this security the Company will:

(a) get in and realize all book and other debts revenues and
claims hereby charged in the ordinary course of and for the purpose of carrying
on its business and pay into the Company's account with the Secured Party or to
such account as

the Secured Party shall from time to time direct all moneys which
it may receive in respect of the same forthwith on receipt and pending such
payment hold such moneys on trust for the Secured Party and not (without the
prior consent in writing of the Secured Party) charge or otherwise dispose of or
release exchange compound set off or grant time or indulgence or otherwise deal
with all or any of the same or purport so to do;

(b)

furnish to the Secured Party copies of the profit and loss account
balance sheet and Directors' Report in respect of each financial year of the
Company its holding companies and such of the subsidiaries of the Company or its
holding companies as the Secured Party may from time to time require showing a
true and fair view of their respective affairs profit or loss and source and
application of funds certified by duly qualified auditors approved by the
Secured Party forthwith upon the same becoming available and not in any event
later than the expiration of four months from the end of such financial year and
also at the time of issue copies of all statements and circulars to shareholders
or to any class of creditors and from time to time such other information
statements forecasts and projections of the Company its holding companies and
the subsidiaries of the Company or its holding companies as the Secured Party
may require;

(c)

not (without the prior consent in writing of the Secured Party)
permit any person:

(i) to be registered as proprietor under the Property Act, CAP 236
or Land Registration Act 1979, CAP 229 of any freehold or leasehold property
present or future

from time to time hereby charged nor create or permit to arise any
overriding interest affecting such property within the definition in those Acts;
or

(ii) to become entitled to any proprietary right or interest which
might affect the value of any land fixtures or fixed plant and machinery hereby
charged;

(d)

not (without the prior consent in writing of the Secured Party)
redeem or purchase its own shares nor declare or pay any dividends on its share
capital otherwise than in respect of the financial year of the Company preceding
or current at the date when the dividend is declared and the aggregate amount
distributed by the Company by way of dividend on its share capital in respect of
any financial year of the Company shall not exceed the profits of the Company
for that year available for distribution as dividend on such capital Provided
that no dividends shall be paid in accordance with this clause or otherwise if
at the time of the proposed payment any portion of the Secured Liabilities is
outstanding or the Company is in default of any of the provisions of this
Debenture/Mortgage or the Agreements;

(e)

to inform the Secured Party immediately on contracting to purchase
any estate or interest in any freehold leasehold and to supply the Secured Party
with such details of the purchase as the Secured Party may from time to time
require.

(f)

deposit with the Secured Party and permit the Secured Party during
the continuance of this security to hold and retain the following:

(i)

all deeds and documents of title relating to all freehold
leasehold property from time to time belonging to the Company (and the insurance
policies relating thereto);

(ii)

all stock and share certificates and documents of title relating
to the Securities and such deeds of transfer in blank and other documents as the
Secured Party may from time to time require for perfecting its title to the
Securities (duly executed by or signed on behalf of the registered holder) or
for vesting or enabling it to vest the same in itself or its nominees or in any
purchaser; and

(iii)

all such documents relating to the Charged Assets as the Secured
Party may from time to time reasonably require;

(g) if required by the Secured Party procure that each subsidiary
of the Company shall guarantee to the Secured Party payment of the Secured
Liabilities and charge all its undertaking property and assets to secure the
same in such manner as the Secured Party shall from time to time require.

5.
FURTHER ASSURANCE

5.1 The Company shall at any time if and when reasonably required
by the Secured Party execute such further legal or other mortgages fixed or
floating charges or assignments

in favour of the Secured Party as the Secured Party shall from
time to time require over all or any of the Charged Assets both present and
future including but not limited to assets specified in any notice converting
the floating charge into a fixed charge, all freehold and leasehold properties
present and future, the Intellectual Property, the Securities and the book and
other debts revenues and claims of the Company and all rights and remedies
relating thereto both present and future (including any vendor's lien) to secure
the payment and discharge of the Secured Liabilities or to facilitate the
realization of the Charged Assets or the exercise of the powers conferred on the
Secured Party or a receiver appointed by it such further mortgages charges or
assignments to be prepared by or on behalf of the Secured Party at the cost of
the Company and to contain an immediate power of sale without notice a clause
excluding s 103(1), s 108 and the restrictions contained in s 111 of the
Property Act, CAP 236 and such other clauses for the benefit of the Secured
Party as the Secured Party may reasonably require.

6.
POWERS OF THE SECURED PARTY

6.1 At any time after the Secured Party shall have demanded
payment of the Secured Liabilities or if requested by the Company the Secured
Party may exercise without further notice and without the restrictions contained
in s 111 of the Property Act, CAP 236 and whether or not it shall have appointed
a receiver all the powers conferred on mortgagees by the Property Act, CAP 236
as hereby varied or extended and all the powers and discretions hereby conferred
either expressly or by reference on a receiver appointed hereunder.

6.2
Sections 103(1) and 108 of the Property Act, CAP 236 shall not apply to this
security or to any security given to the Secured Party pursuant
hereto.

6.3 The statutory powers of leasing conferred on the Secured Party
shall be extended so as to authorize the Secured Party to lease and make
agreements for leases at a premium or otherwise and accept surrenders of leases
and grant options as the Secured Party shall consider expedient and without the
need to observe any of the provisions of sections 109 and 110 of the Property
Act, CAP 236.

7.
APPOINTMENT AND POWERS OF RECEIVER

7.1 At any time after the Secured Party shall have demanded
payment of the Secured Liabilities or if requested by the Company the Secured
Party may in writing under its Common Seal or under the hand of any Director or
Manager, General Manager or Assistant General Manager of the Secured Party
appoint any person to be a receiver of the Charged Assets or any part thereof
(with power to authorize any joint receiver to exercise any power independently
of any other joint receiver and may from time to time fix his or their
remuneration and may (subject to obtaining any necessary Court order) remove any
receiver so appointed and appoint another in his place. A receiver so appointed
shall be the agent of the Company and the Company shall be solely responsible
for his acts or defaults and for his remuneration and such receiver so appointed
shall have all the powers conferred from time to time on receivers by statute
and in the case of the powers conferred by the Property Act, CAP 236 without the
restrictions contained in s 111 of the Act and in addition power on behalf and
at the cost of the Company (notwithstanding liquidation of the Company) to do or
omit to do anything which the Company could do or omit to do in relation to the
Charged Assets or any part thereof and in particular (but without limitation)
any such receiver may:

(a)

take possession of collect get in and give receipts binding on the
Company for all or any of the Charged Assets, exercise in respect of the
Securities all voting or other powers or rights available to a registered holder
thereof in such manner as he may think fit and bring defend or discontinue any
proceedings or submit to arbitration in the name of the Company or otherwise as
may seem expedient to him;

(b)

carry on manage develop reconstruct amalgamate or diversify the
business of the Company or any part thereof or concur in so doing, lease or
otherwise acquire and develop repair or improve properties or other assets
without being responsible for loss or damage and raise or borrow any money
(including money for the completion with or without modification of any building
in the course of construction or renovation and any development or project in
which the Company was engaged) from or incur any other liability to the Secured
Party or others on such terms with or without security as he may think fit and
so that any such security may be or include a charge on the whole or any part of
the Charged Assets ranking in priority to, pari passu with, or subsequent to,
this security or otherwise;

without the restrictions imposed by s 111 of the Property Act, CAP
236 or the need to observe any of the provisions of sections 109 and 110 of such
Act sell by public auction or private contract, let surrender or accept
surrenders grant licences or otherwise dispose of or deal with all or any of the
Charged Assets or concur in so doing in such manner for such consideration and
generally on such terms and conditions as he may think fit with full power to
convey let surrender accept surrenders or otherwise transfer or deal with such
Charged Assets in the name and on behalf of the Company or otherwise
and

so that covenants and contractual obligations may be granted and
assumed in the name of and so as to bind the Company (or other the estate owner)
if he shall consider it necessary or expedient so to do. Any such sale lease or
disposition may be for cash debentures or other obligations, shares stock
securities or other valuable consideration and be payable immediately or by
installments spread over such period as he shall think fit and so that any
consideration received or receivable shall ipso facto forthwith be and become
charged with the payment of the Secured Liabilities. Plant machinery fixtures
fittings and equipment may be severed and sold separately from the premises
containing them and the receiver may apportion any rent and the performance of
any obligations affecting the premises sold without the consent of the
Company;

(d)

promote the formation of companies with a view to the same
purchasing leasing licensing or otherwise acquiring interests in all or any of
the Charged Assets or otherwise, arrange for such companies to trade or cease to
trade and to purchase lease licence or otherwise acquire all or any of the
Charged Assets on such terms and conditions whether or not including payment by
installments secured or unsecured as he may think fit;

(e)

make any arrangement or compromise allow time for payment or enter
into abandon cancel or disregard any contracts which he shall think
expedient;

(f)

make and effect such repairs renewals and improvements to the
Charged Assets or any part thereof as he may think fit and maintain renew take
out or increase insurances;

(g)

appoint managers agents officers and employees for any of such
purposes or to guard or protect the Charged Assets at such salaries and
commissions for such periods and on such terms as he may determine and dismiss
the same;

(h)

without any further consent by or notice to the Company exercise
on behalf of the Company all the powers and provisions conferred on a landlord
or a tenant by any applicable legislation from time to time in force relating to
rents or agriculture in respect of any part of the property hereby charged but
without any obligation to exercise any of such powers and without any liability
in respect of powers so exercised or omitted to be exercised;

(i)

sign any document execute any deed and do all such other acts and
things as may be considered by him to be incidental or conducive to any of the
matters or powers aforesaid or to the realization of the Secured Party's
security and use the name of the Company for all the above purposes.

7.2 All money received by the Secured Party or by any receiver
appointed by the Secured Party in the exercise of any powers conferred by this
Debenture/Mortgage shall be applied after the discharge of the remuneration and
reasonable expenses of such receiver and all liabilities having priority thereto
in or towards satisfaction of such of the Secured Liabilities and in such order
as the Secured Party in its absolute discretion may from time to time
conclusively determine (save that the Secured Party may credit the same to a
suspense account for so long and in such manner as the Secured Party may from
time to time determine and the receiver may retain the same for such period as
he and the Secured Party consider expedient).

7.3 No purchaser or other person shall be bound or concerned to
see or enquire whether the right of the Secured Party or any receiver appointed
by it to exercise any of the powers hereby conferred has arisen or not or be
concerned with notice to the contrary or with the propriety of the exercise or
purported exercise of such powers.

7.4 The Company hereby covenants with the Secured Party on demand
to pay all costs charges and expenses incurred by the Secured Party or by any
such receiver or which it or he shall properly incur in or about the enforcement
preservation or attempted preservation of this security or of the Charged Assets
or any of them on a full indemnity basis [with interest at the Default Rate]
from the date of payment by the Secured Party or such receiver. Any such
receiver shall be entitled to remuneration appropriate to the work and
responsibilities involved upon the basis of charging from time to time adopted
by such receiver in accordance with the current practice of his firm.

7.5 Neither the Secured Party nor any such receiver shall be
liable to account as mortgagee in possession in respect of all or any of the
Charged Assets nor be liable for any loss upon realization or for any neglect or
default of any nature whatsoever in connection therewith for which a mortgagee
in possession may be liable as such.

7.6 The Company hereby agrees to indemnify both the Secured Party
and any such receiver against all losses actions claims expenses demands and
liabilities whether in contract tort or otherwise now or hereafter incurred by
it or him or by any manager agent officer or employee for whose liability act or
omission it or he may be answerable for anything done or omitted in the exercise
or purported exercise of the powers herein contained or occasioned by any breach
by the Company of any of its covenants or other obligations to the Secured
Party. The Company shall so indemnify

the Secured Party and any such receiver on demand [and shall pay
interest on the sums demanded at the Default Rate].

8.

POWER OF ATTORNEY

8.1 The Company by way of security hereby irrevocably appoints the
Secured Party and the persons deriving title under it and separately any
receiver appointed hereunder severally to be its attorney in its name and on its
behalf and as its act and deed or otherwise to execute and complete any
documents which the Secured Party may require for perfecting its title to or for
vesting the Charged Assets both present and future in the Secured Party or its
nominees or in any purchaser and otherwise generally to sign seal deliver and
otherwise perfect any such legal or other mortgage charge or assignment referred
to in Clause 5 and all such deeds and documents and to do all such acts and
things as may be required for the full exercise of the powers hereby conferred
including any sale lease disposition realization or getting in of the Charged
Assets and this appointment shall operate as a general power of attorney. The
Company hereby covenants with the Secured Party and separately with any such
receiver to ratify and confirm any deed document act and thing and all
transactions which any such attorney may lawfully execute or do.

9.

EXCLUSION OF THE COMPANY'S
POWERS OF LEASING ETC

9.1.1 During the continuance of this security the statutory and
any other powers of leasing, letting entering into agreements for leases or
lettings and accepting or agreeing to accept surrenders of leases or tenancies
shall not in relation to the Charged Assets or any part thereof be exercisable
by the Company nor shall the Company part with possession of the same or any
part thereof nor (save as is provided in clause 3..3(c)

hereof) confer any licence right or interest to occupy nor grant
any licence or permission to assign underlet or part with possession of the same
or any part thereof nor agree suffer or permit any variation or addition to the
terms of any lease tenancy or licence without in every such case obtaining the
prior consent in writing of the Secured Party under the hand of a Director or
Manager, General Manager or Assistant General Manager of the Secured
Party.

10. CONTINUING SECURITY

10.1 This security shall be a continuing security notwithstanding
any settlement of account or other matter whatsoever and is in addition to and
shall not merge with or otherwise prejudice or affect any contractual or other
right or remedy or any guarantee lien pledge bill note mortgage or other
security (whether created by the deposit of documents or otherwise) now or
hereafter held by or available to the Secured Party and shall not be in any way
prejudiced or affected thereby or by the invalidity thereof or by the Secured
Party now or hereafter dealing with exchanging releasing varying or abstaining
from perfecting or enforcing any of the same or any rights which it may now or
hereafter have or giving time for payment or indulgence or compounding with any
other person liable.

11
AMOUNT SECURED

11.1 The amount to be secured by this Debenture/Mortgage shall be
unlimited. This Debenture/Mortgage shall be stamped in the first instance with
stamp duty covering an aggregate indebtedness of the amount stated in Schedule
2, and the Company hereby agrees that the Secured Party shall be and is hereby
empowered at any time or times hereafter (without further licence of consent of
the Company) to affix additional stamp duty hereon covering any sum or sums by
which the Secured Liabilities may exceed the said sum, it being the intent of
these presents that until its discharge in writing by the Secured Party, any
charge hereby created shall be a continuing security for payment and discharge
of the Secured Liabilities. All legal costs, charges and expenses incurred by
the Secured Party in connection with such increase of stamp duty shall be deemed
to be properly incurred by the Secured Party and shall be repaid by

the Company to the Secured Party on demand, and unless repaid
shall carry interest at the Interest Rate from the date of demand, and until
payment shall be a charge on the Charged Assets.

11.2 Without prejudice to the right of the Secured Party under
Clause 11.1 the Company will at all times and from time to time duly stamp this
Debenture/Mortgage in accordance with the intent of Clause 11.1 and shall
procure that such statement of the charge hereby created or such amended
particulars thereof in such form as the Secured Party may reasonably require are
duly lodged with the Registrar of Companies pursuant to s 237 of the Companies
Act, CAP 308.

12.
CURRENCY CLAUSES

12.1 All moneys received or held by the Secured Party or by a
receiver under this Debenture/Mortgage may from time to time after demand has
been made by the Secured Party be converted into such other currency as the
Secured Party considers necessary or desirable to cover the obligations and
liabilities actual or contingent of the Company in that other currency at the
then prevailing spot rate of exchange of DGM Bank & Trust Inc. for
purchasing that other currency with the existing currency.

12.2 If and to the extent that the Company fails to pay the amount
due on demand the Secured Party may in its absolute discretion without notice to
the Company purchase at any time thereafter so much of any currency as the
Secured Party considers necessary or desirable to cover the obligations and
liabilities of the Company in such currency hereby secured at the then
prevailing spot rate of exchange of the DGM Bank & Trust Inc. for purchasing
such currency and the Company hereby agrees to indemnify the Secured Party
against the full cost incurred by the Secured Party for such purchase.

12.3 No payment to the Secured Party (whether under any judgment
or court order or otherwise) shall discharge the obligation or liability of the
Company in respect of which it was made unless and until the Secured Party shall
have received payment in full in the currency in which such obligation or
liability was incurred and to the extent that the amount of any such payment
shall on actual conversion into such currency fall short of such obligation or
liability actual or contingent expressed in that currency the Secured Party
shall have a further separate cause of action against the Company and shall be
entitled to enforce the charges hereby created to recover the amount of the
shortfall.

13.
MISCELLANEOUS

13.1 No failure or delay by the Secured Party in exercising any
right or remedy shall operate as a waiver thereof nor shall any single or
partial exercise or waiver of any right or remedy preclude its further exercise
or the exercise of any other right or remedy.

13.2 Each of the provisions of this Debenture/Mortgage is
severable and distinct from the others and if at any time one or more of such
provisions is or becomes invalid illegal or unenforceable, the validity legality
and enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby.

13.3 It is hereby certified that neither the execution of this
Debenture/Mortgage nor the creation of the charges herein contained contravenes
any of the provisions of the Articles of Incorporation or By-laws of the
Company.

13.4 Any notice or demand for payment by the Secured Party
hereunder shall without prejudice to any other effective mode of making the same
be deemed to have been

properly served on the Company if served on any one of the
directors or on the secretary of the Company or delivered or sent by first class
letter post telex cable or fax to the Company at its registered office or at any
of its principal places of business. Any such notice or demand sent by first
class letter post shall if posted before the last scheduled collection of
letters from the place of posting on any day be deemed to have been served on
the addressee at 10 a.m. on the next business day following the day of posting
notwithstanding that it be undelivered or returned undelivered and in proving
such service it shall be sufficient to prove that the notice or demand was
properly addressed and posted. Any notice or demand sent by telex cable or fax
on a business day shall be deemed to have been served at the time of dispatch.
Any such notice or demand or any certificate as to the amount at any time
secured hereby shall be conclusive and binding upon the Company if signed by an
officer of the Secured Party.

13.5 In this Debenture/Mortgage the headings to clauses are for
convenience only and have no legal effect and references to clauses and
schedules are to clauses and schedules of this Debenture/Mortgage unless
otherwise stated.

13.6 In this Debenture/Mortgage the expressions the “Company” and
the “Secured Party” where the context admits include their respective successors
and assigns whether immediate or derivative and the expression 'receiver'
includes a receiver and manager. Any appointment or removal of a receiver under
Clause 7 and any consents hereunder may be made or given by writing signed or
sealed by any such successors or assigns and the Company hereby irrevocably
appoints each of the same to be its attorney in the terms and for the purposes
set out in Clause 8.

13.7 Any change in the constitution of the Secured Party or its
absorption in or amalgamation with any other person or the acquisition of all or
part of its undertaking by any other person shall not in any way prejudice or
affect its rights hereunder.

13.8 The Company acknowledges and agrees that in the event of any
discrepancy between any term of this Debenture/Mortgage and any term of the
Agreements, the terms of the Agreements shall apply and take precedence over the
terms of this Debenture/Mortgage.

13.9 This Debenture/Mortgage shall be governed by and interpreted
in accordance with Barbados law.

IN WITNESS whereof this Debenture/Mortgage has been
executed by the Company under seal and the Secured Party has executed this
Debenture/Mortgage the day and year first hereinbefore written.

SCHEDULE 1

INTELLECTUAL PROPERTY RIGHTS

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(A)

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(B)

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(C)

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(D)

*****************

(E)

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(a)

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(b)

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(c)

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(d)

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SCHEDULE 2

Amount stamped to secure
Two million five hundred thousand
dollars currency of the United States of America
(US$2,500,000.00)

THE COMMON SEAL of INNEXUS BIOSCIENCE (BARBADOS) INC.
was hereunto affixed pursuant to a resolution of its Board in the presence
of:

Witness:

Name:

Address:

Occupation:

EXECUTED AS A DEED by RP DYNAMIC )

CROSS
LINKING COMPANY LP in the

)

presence of:

) ) ) )

Authorised Signatory

Authorized Signatory

NOTARY

I,

a Notary Public in and for

do hereby CERTIFY that on the

day

of

2007 personally appeared before me a male/ female person who
identified himself/herself to be

and personally appeared before me a male/ female person who

identified himself/herself to be two of the authorized signatories
of RP DYNAMIC CROSS LINKING LP. and the signatories to the within written
Debenture and did in my presence sign the same as and for their voluntary act
and deed.

IN TESTIMONY WHEREOF I have hereunto set and subscribed by
name and affixed my seal of office this

day of

2007.

Authorized Signatory

NOTARY PUBLIC

of

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