Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.16

 

 IRREVOCABLE GUARANTEE AGREEMENT

 THIS AGREEMENT MADE EFFECTIVE AS OF THE 31ST DAY OF DECEMBER
  2004 (the "Effective Date"). 

 BETWEEN: 

  
    
      
         RESPONSE BIOMEDICAL CORP., a company
          incorporated under the laws of British Columbia having its head office
          at 8081 Lougheed Highway, Burnaby, B.C. V5A 1W9, Canada, 

         (the "Company") 

      

    

  

 AND: 

  
    
      
         STIFTUNG ZUR FOERDERUNG DER LEBENSQUALITAET,
          BASEL,  c/o Bank Sarasin & Cie, Elisabethenstrasse
          62, P.O. Box CH-4002 Basel, Switzerland 

         (the "Guarantor") 

      

    

  

 WHEREAS: 

 A.                    the
  Company is entering into a line of credit agreement with The Toronto-Dominion
  Bank (“the “Creditor”), evidenced by the materials attached
  as Schedule "A" for a total of US$1,000,000 and referred to herein
  as the "Credit Line ", contingent upon the issuance of a suitable standby letter
  of credit (“LC”) to the Creditor by Bank Sarasin Elisabethenstrasse
  62, P.O. Box CH-4002 Basel, Switzerland; 

 B.                    the
  Guarantor has agreed to guarantee the LC by providing an unconditional and irrevocable
  guarantee for the amount of US$1,000,000 (the “Guarantee”) to
  Bank Sarasin expiring at the office the Creditor on the close of business December
  30, 2005; 

 C.                   
  the Guarantor has agreed to accept common share purchase warrants (the “Warrants”)
  providing the Guarantor the right to purchase 449,250 common
  shares without par value (the "Shares") in the capital stock of the Company
  as consideration for providing the Guarantee, such Warrants to be exercisable
  at a price of Cdn $0.80 per Share and the total aggregate
  number of Shares calculated based on an exchange rate of C$/US$1.198;

 D.                    the
  Guarantor is a person to whom the Company may issue securities pursuant to the
  exemption (the "Exemptions") provided by Multilateral Instrument #45-103 of
  the British Columbia Securities Act, Rules, Regulations, Instruments
  or Notices; and 

 E.                    the
  Warrants will be issued pursuant to the Exemptions and that the Company is relying
  on the Exemptions from the requirements to provide the purchaser with a prospectus
  and to sell securities through a person registered to sell securities under
  the B.C. Securities Act and, as a consequence of acquiring securities
  pursuant to the Exemptions, certain protections, rights and remedies provided
  by the B.C. Securities Act, including statutory rights of rescission
  or damages, will not be available to the purchaser. 

 - 2 - 

                       NOW
  THEREFORE THIS AGREEMENT WITNESSETH THAT in consideration of the mutual covenants
  and agreements herein contained, the receipt and sufficiency of which is hereby
  acknowledged, the parties covenant and agree with each other (the "Agreement")
  as follows: 

	 1.      	 On the basis of the representations and warranties
        of the Guarantor contained in this Agreement and subject to the terms
        of this Agreement, the Company agrees to issue the Warrants to or at the
        direction of the Guarantor as full consideration for providing the Guarantee.
      

	 
	 2.      	 For the term of the Guarantee, the Company agrees
        to inform the Guarantor of the Credit Line balance by e-mail or fax on
        the last business day of each calendar month. 

	 
	 3.      	 This Agreement is subject to all necessary approvals
        of the TSX Venture Exchange (the "Exchange") and the B.C. Securities Commission
        (the "Regulators"). 

	 
	 4.      	 Subject to the Creditor having first accepted a
        LC from Bank Sarasin and the Creditor and the Company executing the Credit
        Line, the Company shall deliver a warrant certificate representing the
        Warrants to the Guarantor at his address shown on the first page of this
        Agreement within ten days of receiving written notice of the last of the
        approvals of the Regulators. 

	 
	 5.      	 The Guarantor acknowledges that the Shares will
        be subject to a four (4) month hold period from the date of the
        issuance of the Warrants imposed by the Exchange and by the operation
        of applicable securities rules or by applicable securities regulatory
        bodies, and that a share certificate issued within four months of issuing
        the Warrants, as a result of exercising the Warrants, will bear legends
        to that effect. 

	 
	 6.      	 The Guarantor acknowledges that this Agreement is
        not being entered into and the Warrants are not being acquired by the
        Guarantor as a result of any material information about the Company's
        affairs that has not been publicly disclosed. 

	 
	 7.      	 In the event of any subdivision, consolidation or
        other change in the share capital of the Company prior to the issuance
        of the Warrants, the number of Warrants issued pursuant to this Agreement
        shall be adjusted in accordance with such subdivision, consolidation or
        other change in the share capital of the Company. 

	 
	 8.      	 Time shall be of the essence in this Agreement.
      

	 
	 9.      	 This Agreement is subject to, governed by and construed
        in accordance with the laws of the Province of British Columbia. 

	 
	 10.      	 All references to funds in this Agreement are in
        Canadian funds unless otherwise noted. 

	 
	 11.      	 This Agreement shall enure to the benefit of and
        be binding upon the parties hereto and their respective heirs, executors,
        administrators, successors and assigns. 

	 
	 12.      	 The parties hereto agree to execute and deliver
        all such further documents and other writings of any kind whatsoever and
        all such further acts and things as are reasonably required to carry out
        the full intent and meaning of this Agreement. 

	 
	 13.      	 Whenever the singular or masculine is used in this
        Agreement the same shall be deemed to include the plural or the feminine
        or the body corporate as the context may require. 

 - 3 - 

	 14.      	 This Agreement constitutes the entire agreement
        between the parties and there are no representations, warranties, covenants
        or agreements collateral hereto other than as contained herein. 

	 
	 15.      	 This Agreement may be signed in as many counterparts
        as may be deemed necessary, each of which so signed shall be deemed to
        be an original, and all such counterparts together shall constitute one
        and the same instrument. 

 IN WITNESS WHEREOF the parties have executed this written
  Agreement effective as of the Effective Date. 

	 SIGNED, SEALED AND DELIVERED BY  	 	  	  	  
	 RESPONSE BIOMEDICAL CORP. per:  	 	  	  	  
	  	 	 	 	 
	
      ”Brian Richards”  	  	  	  	  
	 Authorized Signatory  	  	  	  	  
	 	 	 	 	 
	Name of Signatory: 	
      Brian Richards  	. 	 	  	  
	 	  	 	 	 	 
	Title of Signatory: 	
      Executive VP, Director  	. 	 	  	  
	 	  	 	 	 	 
	 	  	 	 	 	 
	 	  	 	 	 	 
	 SIGNED, SEALED & DELIVERED  	  	 )  	  	  
	 by STIFTUNG ZUR FOERDERUNG DER  	 	 )  	  	  
	 LEBENSQUALITAET, BASEL  	  	 )  	  	  
	 in the presence of:  	  	 )  	  	  
	 	  	  	 )  	 STIFTUNG ZUR FOERDERUNG DER  	  
	
      “Walter Oberle”  	 .  	  	LEBENSQUALITAET, BASEL  	  
	 Signature of Witness  	  	 )  	  	  
	 	  	  	 )  	  	  
	Name: 	
      Walter Oberle  	 .  	 )  	 Per:  	  
	 	  	  	 )  	  	  
	Address: 	
      Benten Str. 77 CH4104 OberenL .  	 	 )  	  	  
	 	  	  	 )  	
      “D. Moppert”  	 .
	Occupation: 	
      Banker  	 .  	 )  	 Duly Authorized Signatory of the Guarantor  	 

 - 4 - 

 SCHEDULE A 

	 1.      	 Standby Letter of Credit issued by Bank Sarasin
        to The Toronto-Dominion Bank 

	 
	 2.      	 Line of Credit Agreement between the Company and
        The Toronto-Dominion BankFiled by Automated Filing Services Inc. (604) 609-0244 - Response Biomedical Corp. - Exhibit 4.17

This CONSULTING AGREEMENT dated October 22, 2004 

	 BETWEEN:  	 RESPONSE BIOMEDICAL CORP., a company incorporated
      in the Province of British Columbia and having an office at 8081 Lougheed
      Highway, Burnaby, British Columbia V5A 1W9
	  	 
	  	 (“Response”)  
	  	 
	 AND:  	 MICHAEL GROVES of 28 Wells Road, Flemington,
      New Jersey 08822  
	  	 
	  	 (the “Consultant”)  

 WITNESSES THAT WHEREAS: 

 Response is involved in the research and commercialization
  of cost-effective and market-driven point-of-care testing systems; 

 The Consultant has certain skills and expertise which Response
  wishes to engage; and 

 The Consultant is an independent contractor, engaged pursuant
  to a contract for services, and not an employee of Response; 

 THEREFORE in consideration of the recitals, the following
  representations and covenants and the payment of one dollar made by each party
  to the other, the receipt and sufficiency of which is acknowledged by each party,
  the parties agree on the following terms: 

	 1.      	 ENGAGEMENT AND DURATION 

	 
	 1.1.      	 Response hereby engages the services of the Consultant
        and the Consultant hereby accepts such engagements and agrees to perform
        the services to the best of his ability and in accordance with the terms
        and conditions of this Agreement. 

	 
	 1.2.      	 Response shall engage the Consultant effective
        November 15, 2004 and terminating on May 15, 2006 (the “Termination
        Date”). 

	 
	 1.3.      	 The term of this Agreement may be extended with
        the written mutual agreement of the parties at any time. 

	 
	 2.      	 DUTIES 

	 
	 2.1.      	 The Consultant shall, pursuant to this Agreement
        and for the period November 15, 2004 until November 15, 2005, have the
        title “Vice President, Sales and Marketing”, and perform such
        duties as described in Appendix A “VP, Sales & Marketing Job
        Description”, and any other similar duties requested from time to
        time by the President of Response. These duties and this title may be
        extended with the written mutual agreement of the parties at any time.
      

	 
	 2.2.      	 The Consultant shall report directly to the President
        of Response. Upon the agreement of the Consultant, he may also report
        to such other person(s), as the President of Response shall direct from
        time to time. 

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	 2.3.      	 The Consultant will, subject to the terms
        of this Agreement, comply promptly and faithfully with Response’s
        reasonable instructions, directions, requests, rules and regulations.
      

	 
	 3.      	 REMUNERATION AND BENEFITS
      

	 
	 3.1      	 FEES 

	 
	 3.1.1      	 For services provided by the Consultant
        from November 15, 2004 until November 15, 2005, the Consultant will be
        paid a monthly rate for services in the amount of US$13,000 based
        on an average of 12 work days per month, payable in equal monthly instalments.
        This amount may be pro-rated for different numbers of workdays by mutual
        agreement. This payment may be extended with the written mutual agreement
        of the parties at any time. 

	 
	 3.2.      	 OPTIONS 

	 
	 	 As further consideration of the services
        provided by the Consultant, the Company shall grant an option to purchase
        250,000 shares of Response Biomedical Corp. common stock at a price of
        CDN $0.85 per share in accordance with policies of the Toronto Venture
        Exchange and Response’s Stock Option Plan. 

	 
	 3.3.      	 REIMBURSEMENT OF EXPENSES
      

	 
	 3.3.1.      	 Within 30 days of the presentation of
        receipts to Response by the Consultant, Response shall reimburse the Consultant
        for all reasonable expenses incurred by the Consultant in the performance
        of his duties pursuant to this Agreement. 

	 
	 4.      	 RESTRICTIVE COVENANTS 

	 
	 4.1.      	 NON-COMPETITION 

	 
	 4.1.1.      	 During the term of this Agreement, the
        Consultant shall not act as a consultant for any entity engaged in a business
        that is substantially similar to and/or competes with the business then
        engaged in by Response (the “Competitive Entity”) 

	 
	 4.1.2.      	 During the term of this Agreement and
        for twelve months following the termination or expiration of this Agreement,
        the Consultant shall not: 

	 
	 	 (a)     
      
	 own or have any interest directly in a Competitive
        Entity; 

	 
	 	 (b)      
	 act as an officer, director, agent Consultant or
        consultant of a Competitive Entity; or 

	 
	 	 (c)      
	 assist in any way or in any capacity, any person,
        firm, association, partnership, corporation or other entity which is focused
        on the research and commercialization of quantitative lateral flow point-of-care
        or on-site testing systems for human, veterinary, food safety or environmental
        markets. 

	 
	 4.1.3.      	 The restriction set out in subparagraph
        4.1.2(a) above shall not apply to the Consultant’s ownership of
        less than ten percent (10%) of the securities of any Competitive Entity.
      

 2

 

	 4.1.4.      	 The Consultant acknowledges that the restrictions
        contained in this Section 4.0 are reasonable; however, in the event that
        any court should determine that any of the restrictive covenants contained
        in subparagraph 4.1.1, 4.1.2 or 4.1.3 of this Agreement, or any part thereof,
        are unenforceable because of the duration of such provision or the area
        covered thereby, such court shall have the power to reduce the duration
        or area of such provision and, in its reduced form, such provision shall
        then be enforceable and shall be enforced. 

	 
	 4.2.      	 CONFIDENTIALITY 

	 
	 4.2.1.      	 The term “Confidential Information”
        means any and all information concerning any aspect of Response not generally
        known to persons other than those associated with Response including,
        but not limited to, clinical data, concepts, processes and techniques,
        trade secrets, business strategies and financial information. Response
        may disclose, in writing or orally, to the Consultant certain Confidential
        Information. These disclosures will be directed primarily to the subject
        of research and commercialization of quantitative lateral flow point-of-care
        testing systems for human, veterinary, food safety and environmental markets,
        but may also include proprietary and Confidential Information relating
        generally to commercialization of RAMP. 

	 
	 4.2.2.      	 The Consultant acknowledges and agrees
        that the Confidential Information is disclosed to the Consultant in the
        strictest confidence and any Confidential Information disclosed to the
        Consultant in any form whatsoever is and shall be considered confidential
        and proprietary information of Response. 

	 
	 4.2.3.      	 Except as authorized by Response, the
        Consultant will not: 

	 
	 	 (a)     
      
	 duplicate, transfer or disclose nor allow any other
        person to duplicate, transfer or disclose any of the Confidential Information;
      

	 
	 	 (b)      
	 use the Confidential Information without the prior
        written consent of Response; or 

	 
	 	 (c)      
	 incorporate, in the whole or in part, within any
        domestic or foreign patent application any proprietary or Confidential
        Information disclosed by Response. 

	 
	 4.2.4.      	 The Consultant will safeguard all Confidential
        Information at all times so that it is not exposed to or used by unauthorized
        person(s), and will exercise at least the same degree of care used to
        protect the Consultant’s own Confidential Information. 

	 
	 4.2.5.      	 Any and all notes, diagrams, reports,
        notebook pages, memoranda, and like materials and chemical, and biological
        materials received from Response and any copies or excerpts thereof containing
        proprietary or Confidential Information will remain the property of Response
        and will, upon the request of Response, be promptly returned to Response.
      

	 
	 4.2.6.      	 The restrictive obligations set forth
        above shall not apply to the disclosure or use of any information which:
      

	 
	 	 (a)      
	 is or later becomes publicly known under circumstances
        involving no breach of this Agreement by the Consultant; 

	 
	 	 (b)      
	 is already known to the Consultant at the time of
        receipt of the Confidential Information; or 

	 
	 	 (c)      
	 is lawfully made available to the Consultant by
        a third party. 

 3

 

	 4.2.7.      	 No patent rights or licenses are granted
        by this Agreement. The disclosure of Confidential Information under this
        Agreement shall not result in any obligation for either party to grant
        any rights in its patent rights or Confidential Information, and no other
        obligations of any kind are assumed by or implied against either party,
        except for as stated in this Agreement. 

	 
	 4.2.8.      	 The provisions of Section 4.2 shall survive
        the termination of this Agreement. 

	 
	 4.3.      	 DELIVERY OF RECORDS 

	 
	 4.3.1.      	 Upon the termination of the Consultant’s
        engagement with the Company, the Consultant will deliver to the Company
        all books, records, lists, brochures and other property belonging to the
        Company or developed in connection with the business of the Company. 

	 
	 5.      	 OWNERSHIP OF WORK PRODUCT
      

	 
	 5.1.      	 Any and all know-how, ideas, discoveries,
        inventions, improvements, formula, methods, processes, systems, plans
        and any other knowledge or information of a technical or scientific nature
        or of a business nature pertinent to Response’s scientific or business
        interests whether protectable as industrial or intellectual property right
        or not, which the Consultant may conceive develop or acquire whether solely
        or jointly with any other party in furtherance of the engagement with
        Response will be the sole and exclusive property of Response; however,
        Response agrees to name the Consultant as the inventor on any patent applications
        made as a result of work performed by him under this Agreement, provided
        that all such patent applications are assigned to Response. 

	 
	 6.      	 TERMINATION 

	 
	 6.1.      	 Response may terminate the Consultant’s
        engagement under this Agreement: 

	 
	 	 (a)     
      
	 if there is a material breach or default of any
        term of this Agreement by the Consultant if such material breach or default
        has not been remedied to the satisfaction of Response within fifteen
        (15) working days after written notice of the material breach
        or default has been delivered by Response to the Consultant; and 

	 
	 	 (b)      
	 at any time by giving the Consultant three
        months notice in writing. 

	 
	 6.2.      	 The Consultant may terminate its obligations
        under this Agreement: 

	 
	 	 (a)      
	 at any time by giving the President of Response
        three months notice in writing; and 

	 
	 	 (b)      
	 upon a material breach or default of any term of
        this Agreement by Response if such material breach or default has not
        been remedied to the satisfaction of the Consultant within fifteen
        (15) working days after written notice of the material breach
        or default has been delivered by the Consultant to Response. 

	 
	 6.3.      	 The rights of Response and the Consultant
        under this section 6.0 are in addition to and not in derogation of any
        other remedies which may be available to the Company or the Consultant
        at law or in equity. 

 4

 

	 6.4      	 In the event of any dispute arising with respect
        to any matter relating to this Agreement, the matter in dispute shall
        be referred to a single arbitrator under the Commercial Arbitration
        Act then in effect in British Columbia 

	 
	 7.      	 WAIVER 

	 
	 7.1.      	 No consent or waiver, express or implied, by any
        party to this Agreement of any breach or default by the other party in
        the performance of its obligations under this Agreement or of any of the
        terms, covenants or conditions of this Agreement shall be deemed or construed
        to be a consent or waiver of any subsequent or continuing breach or default
        in such party’s performance or in the terms, covenants and conditions
        of this Agreement. The failure of any party to this Agreement to assert
        any claim in a timely fashion for any of its rights or remedies under
        this Agreement shall not be construed as a waiver of any such claim and
        shall not serve to modify, alter or restrict any such party’s right
        to assert such claim at any time thereafter. 

	 
	 8.      	 NOTICES 

	 
	 8.1.      	 Any notice relating to this Agreement or required
        or permitted to be given in accordance with this Agreement shall be in
        writing and shall be personally delivered or mailed by registered mail,
        postage prepaid to the address of the parties set out on the first page
        of this Agreement, any notice shall be deemed to have been received if
        delivered, when delivered, and if mailed, on the fifth day (excluding
        Saturdays, Sundays and holidays) after the mailing thereof. If normal
        mail service is interrupted by strike, slowdown, force majeure or other
        cause, a notice sent by registered mail will not be deemed to be received
        until actually received and the party sending the notice shall utilize
        any other services which have not been so interrupted or shall deliver
        such notice in order to ensure prompt receipt thereof. 

	 
	 8.2.      	 Each party to this Agreement may change its address
        for the purpose of this section by giving written notice of such change
        in the manner provided for in section 8.1. 

	 
	 9.      	 APPLICABLE LAW 

	 
	 9.1.      	 This Agreement shall be governed by and construed
        in accordance with the laws of the province of British Columbia and the
        federal laws of Canada applicable therein, which shall be deemed to be
        the proper law hereof. The parties hereto hereby submit to the jurisdiction
        of the courts of British Columbia. 

	 
	 10.      	 SEVERABILITY 

	 
	 10.1.      	 If any provision of this Agreement for any reason
        is declared invalid, such declaration shall not affect the validity of
        any remaining portion of the Agreement, which remaining portion shall
        remain in full force and effect as if this Agreement had been executed
        with the invalid portion thereof eliminated and is hereby declared the
        intention of the parties that they would have executed the remaining portions
        of this Agreement without including any such part, parts portion which
        may, for any reason, be hereafter declared invalid. 

	 
	 11.      	 ENTIRE AGREEMENT 

	 
	 11.1.      	 Other than the stock option agreement referred to
        in Section 3.2, this Agreement constitutes the entire agreement between
        the parties hereto. There are no representations or warranties, express
        or implied, 

 5

 

	 	 statutory or otherwise other than set forth in this
        Agreement and there are no agreements collateral hereto other than as
        are expressly set forth or referred to herein. The Agreement cannot be
        amended or supplemented except by a written agreement executed by both
        parties hereto. 

	 
	 12.      	 NON-ASSIGNABILITY 

	 
	 12.1.      	 This Agreement shall not be assigned by either party
        to this Agreement without the prior written consent of the other party
        to this Agreement. 

	 
	 13.      	 BURDEN AND BENEFIT 

	 
	 13.1.      	 This Agreement shall enure to the benefit of and
        be binding upon the parties hereto and their respective heirs, executors,
        administrators, successors and permitted assigns. 

	 
	 14.      	 TIME 

	 
	 14.1.      	 Time is of the essence of this Agreement. 

IN WITNESS WHEREOF the Subscriber has duly executed this subscription as of the date set out on the first page of this Agreement. 

	 RESPONSE BIOMEDICAL CORP.  	 	 MICHAEL GROVES  
	  	 	 
	 ”William J. Radvak” 	  	 “MichaelGroves” 
    
	 William J. Radvak  	 	  
	 President  & CEO  	  	  

 6

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