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                                                                   EXHIBIT 10.17

                                            ***TEXT OMITTED AND FILED SEPARATELY
                                                CONFIDENTIAL TREATMENT REQUESTED
                                          UNDER 17 C.F.R. Sections 200.80(B)(4),
                                                              200.83 AND 230.406

                        LICENSE AND DEVELOPMENT AGREEMENT

        THIS LICENSE AND DEVELOPMENT AGREEMENT (the "Agreement") is made as of
October 6, 1998 (the "Effective Date") by and among GENETRONICS BIOMEDICAL,
LTD., a corporation organized under the laws of British Columbia, a province of
Canada, and GENETRONICS, INC., a wholly-owned subsidiary of Genetronics
Biomedical, Ltd. and a corporation organized under the laws of California (both
jointly and severally hereinafter referred to as "Genetronics"), and ETHICON,
INC., a wholly-owned subsidiary of Johnson & Johnson and a corporation organized
under the laws of New Jersey (hereinafter referred to as "Ethicon").

                                    RECITALS

        WHEREAS, Genetronics wishes to grant to Ethicon, and Ethicon wishes to
obtain from Genetronics, an exclusive license under Genetronics' proprietary
drug delivery technology to make, use and sell products for the prevention,
detection or treatment of pre-cancer and cancer on the terms and subject to the
conditions set forth herein.

        NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual covenants and agreements contained herein, the parties hereto, intending
to be legally bound, do hereby agree as follows:

                                    AGREEMENT
                                   DEFINITIONS

        1.1    "ADVISORY COMMITTEE" means the committee established pursuant to
Section 3.1.

        1.2    "AFFILIATE" shall mean, in relation to either party hereto, (a)
any entity in which the relevant party directly or indirectly holds more than
50% of the voting stock or power, (b) any entity ("Holding Entity") which holds
directly or indirectly more than 50% of the voting stock or power of the
relevant party, (c) any other entity in which more than 50% of the voting stock
or power is directly or indirectly held by any Holding Entity of the relevant
party or (d) any entity in which the relevant party directly or indirectly holds
less than 50% of the voting stock or power but has management control of such
entity in that it has the ability to appoint and remove the majority of the
Board of Directors (or other governing body) of such party.

        1.3    "APPLICATOR" means that component of the Drug Delivery System
which uses an electrode needle array, whether or not integrated, to deliver the
pulsed electrical field from the Generator to the patient during
Electroporation.

        1.4    "BANKRUPTCY EVENT" shall mean the entity in question becomes
insolvent, or voluntary or involuntary proceedings by or against such entity are
instituted in bankruptcy or under any insolvency law, or a receiver or custodian
is appointed for such entity, or proceedings are instituted by or against such
entity for corporate

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reorganization or the dissolution of such entity, which proceedings, if
involuntary, shall not have been dismissed within sixty (60) days after the date
of filing, or such person or entity makes an assignment for the benefit of its
creditors, or substantially all of the assets of such entity are seized or
attached and not released within sixty (60) days thereafter.

        1.5    "CHANGE IN CONTROL" shall mean in respect of a party hereto (i)
the liquidation or dissolution of such party or the sale or other transfer by
such party (excluding transfers to subsidiaries) of all or substantially all of
its assets; or (ii) the occurrence of a tender offer, stock purchase, other
stock acquisition, merger, consolidation, recapitalization, reverse split, sale
or transfer of assets or other transaction, as a result of which any person,
entity or group (a) becomes the beneficial owner, directly or indirectly, of
securities of such party representing more than 50% of the ordinary shares of
such party or representing more than 50% of the combined voting power with
respect to the election of directors (or members of any other governing body) of
such party's then outstanding securities, (b) obtains the ability to appoint a
majority of the Board of Directors (or other governing body) of such party, or
obtains the ability to direct the operations or management of such party or any
successor to such party's business; provided, however, that Change in Control
shall not include the issuance by a party of equity to the public through a
public offering or offerings.

        1.6    "CONTROL" means possession of the ability to grant a license or
sublicense as provided for herein without violating the terms of any agreement
or other arrangement with any Third Party.

        1.7 "DEEP SEATED PROBE" means a proposed device to be developed by the
parties based on the Genetronics Technology, as more particularly described in
Exhibit F hereto.

        1.8    "DRUG DELIVERY SYSTEM" means any system for the delivery of drugs
by means of Electroporation, or any mechanical, electrical or software component
of the delivery system (including the Generator and the Applicator), the
manufacture, use or sale of which is covered by the Genetronics Technology.

        1.9    "ELECTROPORATION" means the application of high-voltage
electrical impulses to living cells to enhance the delivery of molecules into
such cells by increasing the permeability of the membrane of such cells.

        1.10   "ETHICON IMPROVEMENTS" means any improvement, Know-How, discovery
or development based on the Genetronics Technology, which is created, conceived
of, developed or first reduced to practice by Ethicon and/or its sublicensees
during the Term.

        1.11   "FDA" means the United States Food and Drug Administration.

        1.12   "FIELD" means the use of Electroporation for the detection,
prevention and treatment of pre-cancer and cancer, except (a) applications
involving the detection,

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prevention or treatment of basal cell skin and squamous cell skin pre-cancer and
cancer, and (b) Gene Therapy applications.

        1.13   "FIRST COMMERCIAL SALE" means the date of the first sale of the
Drug Delivery System to an end user of such system but not with respect to
clinical trials and market development activities. Sale to an Affiliate shall
not constitute a First Commercial Sale unless the Affiliate is the end user of
the Drug Delivery System.

        1.14   "GENE THERAPY" means applications involving the introduction of a
nucleic acid sequence such that therapeutic RNA or a protein product is produced
based on the coding sequence so introduced.

        1.15   "GENERATOR" means that component of the Drug Delivery System,
which creates a pulsed electrical field for use during Electroporation.

        1.16   "GENETRONICS KNOW-HOW" means all Know-How related to the Drug
Delivery System or any component thereof, which is not covered by the
Genetronics Patent Rights, but is necessary or appropriate to develop,
manufacture and commercialize the Drug Delivery System in the Field, and which
is under the Control of Genetronics as of the Effective Date or acquired by or
developed by or for Genetronics during the Term.

        1.17   "GENETRONICS PATENT RIGHTS" means all Patent Rights claiming the
Drug Delivery System or any component thereof, which are necessary or
appropriate to use (in various procedures with various therapeutic agents),
develop, manufacture and commercialize the Drug Delivery System in the Field,
and which are under the Control of Genetronics as of the Effective Date or
acquired by, developed by or for Genetronics during the Term, also including the
Joint Patent Rights. The Genetronics Patent Rights as of the Effective Date are
set forth on Exhibit A.

        1.18   "GENETRONICS TECHNOLOGY" means the Genetronics Patent Rights and
the Genetronics Know-How.

        1.19   "JOINT PATENT RIGHTS" means all Patent Rights covering all
inventions conceived of and reduced to practice during the Term jointly by
employees or agents of Ethicon and employees or agents of Genetronics.

        1.20   "KNOW-HOW" means all know-how, trade secrets, inventions, data,
processes, techniques, procedures, compositions, devices, methods, formulas,
protocols and information, whether or not patentable, which are confidential,
including, without limitation, all chemical, biochemical, toxicological and
scientific research information.

        1.21   "MARKET REQUIREMENTS" shall have the meaning given in the Supply
Agreement.

        1.22   "NET SALES"

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               (a)    Net Sales means the gross amounts invoiced for sales of
the Drug Delivery System, or any component thereof (i.e., the Generator or the
Applicator), by Ethicon, its Affiliates and sublicensees to Third Parties, less
(a) discounts actually granted, (b) credits or allowances actually granted upon
claims, damaged goods, rejections or returns of the Drug Delivery System,
including recalls, (c) freight, postage, shipping and insurance charges actually
allowed or paid for delivery of the Drug Delivery System, to the extent billed,
and (d) taxes, duties or other governmental charges (other than income taxes)
levied on, absorbed or otherwise imposed on sales of the Drug Delivery System.

               (b)    In the event that the Drug Delivery System is sold in the
form of a combination product containing one or more elements other than the
Drug Delivery System, Net Sales for the Drug Delivery System will be calculated
by multiplying the Net Sales of such combination product by the [...***...]
where A is the [...***...]. of the Drug Delivery System if sold separately by
Ethicon, its Affiliates or sublicensees, and B is the [...***...]. of any other
component or components in the combination product is not part of the Drug
Delivery System, if sold separately by Ethicon, its Affiliates or sublicensees.

               (c)    If on a country-by-country basis the other component or
components in a combination product are not sold separately in said country by
Ethicon, its Affiliates or sublicensees, Net Sales of the Drug Delivery System
included within such combination product shall be calculated by [...***...] of
such combination product [...***...] the fraction A/C where A is [...***...] of
the Drug Delivery System if sold separately and C is [...***...] of the
combination product. If on a country-by-country basis neither the Drug Delivery
System nor the combination product is sold separately in said country by
Ethicon, its Affiliates or sublicensees, Net Sales of the Drug Delivery System
shall be calculated as set forth in the previous sentence, except that A shall
be [...***...] the Drug Delivery System to Ethicon or such Affiliate or
sublicensee that makes the sale to a Third Party and C shall be [...***...] as
applicable, of the combination product. For purposes of the foregoing
calculations, all costs will be determined on a fully allocated basis consistent
with generally accepted accounting principles as consistently applied by
Ethicon, its Affiliate or sublicensees.

               (d)    Notwithstanding the foregoing, in the event that the
Applicator is sold as part of a surgical kit and if, as part of such kit, the
Applicator does not have a separate invoiced price, then Net Sales of such
Applicator shall [...***...] the [...***...] of such surgical kit [...***...] of
[...***...] of the [...***...] within such surgical kit.

        1.23   "PATENT RIGHTS" means all rights under patents and patent
applications, and any and all patents issuing therefrom (including utility,
model and design patents and certificates of invention), together with any and
all substitutions, extensions (including supplemental protection certificates),
registrations, confirmations, reissues, divisionals, continuations,
continuations-in-part, re-examinations, renewals and foreign counterparts of the
foregoing.

                                       4. *CONFIDENTIAL TREATMENT REQUESTED
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        1.24   "REGULATORY AGENCY" shall mean the regulatory agency in a country
which perform the same or equivalent function as the FDA in the United States,
and any reference to a rule or requirement of the FDA herein shall if the
circumstances make it applicable refer to the equivalent rule or requirement of
any Regulatory Agency.

        1.25   "SOFTWARE" means the software in executable code included in or
with the Drug Delivery System.

        1.26   "SUPPLY AGREEMENT" means the supply agreement to be executed by
the parties contemporaneously with this Agreement, substantially in the form
attached hereto as Exhibit B.

        1.27   "STOCK PURCHASE AGREEMENT" means that certain Stock Purchase
Agreement to be executed by and among the parties hereto, and dated as of the
same date as this Agreement, substantially in the form attached hereto as
Exhibit C.

        1.28   "TERRITORY" means all countries of the world, except Canada.

        1.29   "TERM" has the meaning set forth in Section 13.1.

        1.30   "THIRD PARTY" means any entity other than Genetronics or Ethicon
or an Affiliate of Genetronics or Ethicon.

        1.31   "TIER 1 EUROPEAN COUNTRIES" means France, the United Kingdom,
Germany and Italy.

        1.32   "TRADEMARKS" means the trademarks included in or with the Drug
Delivery System.

        1.33   "VALID CLAIM" means a claim of an issued patent included within
the Genetronics Patent Rights, which claim has not lapsed, been canceled or
become abandoned and has not been declared invalid or unenforceable by an
unreversed and unappealable decision or judgment of a court or other appropriate
body of competent jurisdiction, and which has not been admitted to be invalid or
unenforceable through reissue, disclaimer or otherwise.

                                    ARTICLE 2
                              SCOPE OF DEVELOPMENT

        2.1    OBJECTIVES. During the Term, Genetronics will have primary
responsibility for the activities described in Section 4.1, and Ethicon will
have primary responsibility for the activities described in Section 4.2.

        2.2    LIMITATIONS ON DEVELOPMENT. Except as specifically provided
herein, all activities of the parties outside of this Agreement are outside of
the scope of this Agreement, and nothing herein is intended to limit Genetronics
or its Affiliates from using the Genetronics Technology and any Joint Patent
Rights or Ethicon or its Affiliates from using any Joint Patent Rights for other
purposes.

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        2.3    DRUG DELIVERY SYSTEM.

               (a)    Except as permitted by Section 4.1(d), Genetronics agrees
that it shall not develop or commercially exploit the Drug Delivery System being
developed for or commercially exploited by Ethicon (an "Ethicon System").
Genetronics shall use commercially reasonable and diligent efforts to ensure
that Ethicon System will include means designed to render the Generator
non-functioning without the Applicator designed for the Ethicon System and vice
versa.

               (b)    Genetronics shall use commercially reasonable and diligent
efforts to ensure that other Drug Delivery Systems developed by it are not able
to be used for the detection, prevention and treatment of pre-cancer (except for
skin) or cancer; provided, however, that Genetronics may develop and
commercially exploit a Drug Delivery System for the detection, prevention and
treatment of basal cell skin pre-cancer and cancer, and squamous cell skin
pre-cancer and cancer if it (i) is substantially different in design and
operation from any Ethicon System, and (ii) provides less than acceptable
efficacy for the detection, prevention and treatment of other forms of
pre-cancer and cancer.

               (c)    Genetronics agrees if it enters into an agreement with an
Affiliate or Third Party concerning the subject matter of this Section 2.3, it
will require such Affiliate or Third Party to be made subject to the above
provision.

        2.4    COMMERCIAL EXPLOITATION IS AT ETHICON'S DISCRETION. Except as
expressly provided hereunder, the marketing, sale or other commercial
exploitation (collectively, the "Commercial Exploitation") of the Drug Delivery
System in the Territory for use in the Field shall be exercised by Ethicon in
accordance with its own business judgment and in its sole and absolute
discretion. Accordingly, Genetronics acknowledges, understands and agrees
subject to the obligations of Ethicon in Article 6 hereof, as follows:

               (a)    Ethicon shall have complete control and sole discretion
with respect to the Commercial Exploitation of the Drug Delivery System in the
Territory for use in the Field and that this will have a material effect upon
the amount of any royalty payments that may be payable hereunder; and such
control and discretion over sales by Ethicon could negatively impact Genetronics
receipt of royalty payments;

               (b)    Ethicon has no duty to commercially exploit the Drug
Delivery System, to exert any level of efforts in commercially exploiting the
Drug Delivery System or to generate royalty payments;

               (c)    that whether or not Ethicon or any of its Affiliates
commercially exploit the Drug Delivery System, neither Ethicon nor any of its
Affiliates is prohibited from manufacturing, marketing or selling other products
that may compete with or reduce the Net Sales of Drug Delivery System hereunder;

               (d)    that personnel of Ethicon are only required to take
actions in connection with the Commercial Exploitation of the Drug Delivery
System in the

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Territory for use in the Field that such personnel believe to be in the best
interests of Ethicon and that they are not required to take into account the
interests of Genetronics at all; and

               (e)    not to challenge in any subsequent claim or action any
decision regarding the Commercial Exploitation of the Drug Delivery System in
the Territory for use in the Field made by any director, officer, employee or
individuals acting as agents of Ethicon or its Affiliates in what such
individual subjectively believes to be the best interests of Ethicon (or such
Affiliate), unless such action constitutes a material breach by Ethicon of any
of its obligations under this Agreement.

        2.5    NO NAMING INDIVIDUALS. The parties agree that as between
themselves, the directors, officers, employees and individuals acting as agents
of or for any party to this Agreement shall not be named as parties to any suit
or arbitration proceeding brought in connection with the transactions
contemplated by this Agreement solely as a result of performing actions in their
capacity as an agent of or for a party to this Agreement.

                                    ARTICLE 3
                               ADVISORY COMMITTEE

        3.1    FORMATION. The activities of the parties under this Agreement
shall be managed by the Advisory Committee, which shall be comprised of three
representatives appointed by Genetronics and three representatives appointed by
Ethicon. Such representatives shall be senior members of management or
consultants from each of the parties. Either party may appoint substitute or
replacement members of the Advisory Committee to serve as their representatives
upon notice to the other party. The Advisory Committee shall have the
responsibility and authority to (a) coordinate and monitor the progress of this
Agreement, (b) encourage and facilitate communication and cooperation between
the parties in the performance of this Agreement, and (c) undertake such other
tasks and responsibilities as are set forth in this Agreement.

        3.2    MEETINGS. The Advisory Committee shall meet at least once per
quarter or as it deems necessary at its discretion at locations and times to be
determined by the Advisory Committee, with the intent of meeting at alternating
locations in Somerville, New Jersey and San Diego, California, with each party
to bear all travel and related costs for its representatives. Each meeting shall
be chaired by a Advisory Committee member from the host party.

        3.3    DECISION-MAKING PROCESS. Each member of the Advisory Committee
shall have one vote, and decisions by the Advisory Committee shall be made by a
majority vote. Any disagreement among members of the Advisory Committee shall be
resolved within the Advisory Committee based on the efficient achievement of the
objectives of this Agreement. Any disagreement which cannot be resolved by a
majority vote of the Advisory Committee shall be referred to the President of
each of Genetronics and Ethicon for resolution. It is the intent of the parties
to resolve issues through the Advisory Committee whenever possible and to refer
issues to the President

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of each of Genetronics and Ethicon only when resolution through the Advisory
Committee cannot be achieved. Any disagreement which cannot be resolved by the
President of each of Genetronics and Ethicon shall be resolved (a) by the
President of Ethicon if the disagreement involves issues within the Territory,
(b) by the President of Genetronics if the disagreement involves issues outside
the Territory (i.e., within Canada).

        3.4    DEVELOPMENT PROGRAM. The Advisory Committee shall have executive
authority with respect to decisions on the "Development Program". The
Development Program shall be the program under which the parties manage the
development of the Drug Delivery System under this Agreement. The Advisory
Committee's role shall include supervising and managing the expenditure of funds
for research and development in accordance with Section 4.1, evaluating and
determining which products to develop. In addition, by unanimous consent only,
the Advisory Committee is responsible for reviewing (and if necessary revising)
the milestones in Section 6.2 and approving any new milestones as part of the
Development Program. The tie-breaker provisions of Section 3.3 shall not apply
to any revision of the existing milestones or to the addition of new milestones.
Genetronics shall develop and propose to the Advisory Committee annual budgets
for the Development Program for its review and consent.

        3.5    PATENT STRATEGY. The Advisory Committee shall be responsible for
managing and reviewing the patent strategy in the Territory for use of the Drug
Delivery System in the Field (the "Patent Strategy"). The Patent Strategy shall
include, but not be limited to, deciding on the question of inventorship of any
inventions arising under this Agreement, agreeing on the desired scope of patent
protection to be secured by Genetronics, agreeing on the desired scope of patent
protection to be secured for Joint Inventions, and recording and advising the
parties on all patents secured in furtherance of hereunder. Genetronics shall
develop and propose to the Advisory Committee annual budgets for the Patent
Strategy for its review and consent.

        3.6    CLINICAL/REGULATORY PROGRAM. The initial program will be proposed
by Genetronics. The Advisory Committee shall be responsible for managing and
reviewing the clinical and regulatory program in the Territory for use of the
Drug Delivery System in the Field (the "Clinical/Regulatory Program"). The
Clinical/Regulatory Program shall be the regulatory strategy which is adopted as
the Clinical/Regulatory Program by the Advisory Committee, subject to approval
by Ethicon. Such program is to be in writing and to be continually reviewed and
revised as necessary by the Advisory Committee, subject to approval by Ethicon.
Within 90 days of the Effective Date, the Advisory Committee shall prepare and
submit to Ethicon for its approval a strategy for the initial
Clinical/Regulatory Program for a period (to be designated by the Advisory
Committee) following the Effective Date, including a budget of clinical costs
for such period. With respect to the Clinical/Regulatory Program, Ethicon shall
have review and approval rights for all significant correspondence and filings
received from or made to any governmental entity.

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                                    ARTICLE 4
                  DEVELOPMENT AND COMMERCIALIZATION ACTIVITIES

        4.1    GENETRONICS CONTRIBUTIONS.

               (a)    SALES AND MARKETING. For the purposes of clarification
only, the parties acknowledge that Genetronics will sell, contract, distribute,
enter orders, invoice, collect, and market the Drug Delivery System (being sold
by Ethicon in the Territory for use in the Field) in Canada for use in the
Field. In Canada, Genetronics will be responsible for warranties and returns of
the Drug Delivery System and will provide the necessary staffing and inventory
to ensure a reasonable turnaround time for any defective part or all of the Drug
Delivery System

               (b)    CLINICAL TRIALS. Subject to Section 4.1(c) below and the
Clinical/Regulatory Program, the parties agree that Genetronics will conduct and
own the regulatory filings, at its sole cost, of all clinical trials (i) of the
Drug Delivery System in Canada, (ii) for the Head and Neck indication in the
United States, and (iii) any clinical trial commenced by Genetronics prior to
the Effective Date. Except as set forth above and subject to Section 4.1(c)
below and the Clinical/Regulatory Program, the parties agree that Genetronics
will conduct (but Ethicon will own the regulatory filings of) all clinical
trials of the Drug Delivery System in the Territory for those indications in the
Field selected by the Advisory Committee.

               (c)    REGULATORY.

                      (i)    Genetronics presently has an application to obtain
the CE mark for the Drug Delivery System in the European Union. Genetronics
shall continue to maintain at its sole cost the CE mark to the extent Ethicon
wishes it reasonably to do so; provided, however, at any time after the
Effective Date, upon the written request of Ethicon, Genetronics shall promptly
assign and deliver the CE mark, along with any and all supporting documentation
and other related information to Ethicon. Upon receipt of the filings from
Genetronics, Ethicon shall assume all ongoing costs associated therewith.

                      (ii)   Genetronics presently has an approved
investigational new drug application ("IND") with the FDA. Any additional
indications filed with the FDA by Genetronics, shall be filed in Ethicon's name
and shall be at Ethicon's sole cost if filed pursuant to the Clinical/Regulatory
Program. Genetronics shall continue to maintain at its sole cost the current
filings before the FDA and Regulatory Agencies to the extent Ethicon wishes it
reasonably to do so; provided, however, that at any time after the Effective
Date, upon the written request of Ethicon, Genetronics shall within 120 days
after receipt of such request, assign and deliver the IND, NDA and all filings,
along with any and all supporting documentation and other related information to
Ethicon. Upon receipt of the filings from Genetronics, Ethicon shall assume all
ongoing regulatory costs associated therewith. Genetronics shall provide Ethicon
for its use in obtaining regulatory approvals with copies of all data, results
and related information from clinical trials and all regulatory filings and
related information in the territory (including the right

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to reference Genetronics IND or NDA in regulatory filings), all of the
information shall be considered Confidential Information of Genetronics.

                      (iii)  Genetronics shall provide Ethicon for its use in
obtaining regulatory approvals with copies of all data, results and related
information from clinical trials and all regulatory filings and related
information (including the right to reference Genetronics regulatory filings),
all of the information shall be considered Confidential Information of
Genetronics (as defined in Article 15).

               (d)    CANADA. For purposes of clarification only, the parties
acknowledge that Genetronics will conduct all clinical trials of the Drug
Delivery System in Canada for those indications in the Field selected by
Genetronics, in its sole discretion and at its own expense. Genetronics will
consult with Ethicon on all clinical trials of the Drug Delivery System in
Canada for use in the Field and will provide Ethicon for its use with copies of
all data, results and related information from such clinical trials; provided,
however, that Genetronics and Ethicon will consult on all such clinical trials
related to Bleomycin and other generic drugs. Genetronics will be responsible
for regulatory filings and approvals in Canada for use of the Drug Delivery
System in the Field. Genetronics shall secure, at its own expense, any and all
licenses, permits approvals and other authorizations (collectively, "Regulatory
Approvals") required to commercialize the Drug Delivery System in Canada for use
in the Field. Genetronics shall own and maintain all such Regulatory Approvals
and related information and shall disclose such information to Ethicon for its
use in accordance with this Agreement and the license granted hereunder and in
the Supply Agreement, and to the extent necessary for Ethicon to perform its
obligations under this Agreement. Such Regulatory Approvals and related
information (including, without limitation, any and all reference rights related
thereto) shall be considered Confidential Information of Genetronics (as defined
in Article 15).

               (e)    CROSS-BORDER SALES. The parties agree not to resell the
Drug Delivery System into each other's territory. The parties agree with respect
to any distributor (or equivalent) of the Drug Delivery System it may engage,
that in the event a party receives written evidence from any source that the
Drug Delivery System (or any component thereof) previously transferred to such
distributor was resold by such distributor into the territory of the other party
on at least three occasions, then the party receiving the evidence shall take
appropriate steps to ensure such reselling does not occur in the future. The
party who has engaged such distributor shall promptly discuss the steps that are
being taken with the other party to ensure that such reselling will not reoccur.
Genetronics further agrees to include a provision in any distribution or similar
agreement it enters into during the Term to enable it to take such action.

               (f)    RESEARCH AND DEVELOPMENT. Genetronics shall dedicate
[...***...] of its gross revenues per year, if any, with respect to sales of the
Drug Delivery System for use in the Field, but in no event less than [...***...]
per year (hereinafter, "Research Funds"), to fund research and development
activities related to the Drug Delivery System in the Field as decided by the
Advisor Committee under Article 3 (provided that, the Advisory Committee may
agree to spend less than the total amount of Research

                                      10. *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   11

Funds available in any year); the Research Funds also may be used for research
and development outside the Field if agreed to by unanimous consent of the
Advisory Committee.

               (g)    MANUFACTURING; TOOLING. Genetronics will have the
exclusive right to manufacture the Drug Delivery System for Ethicon pursuant to
the Supply Agreement (until there is a Failure to Supply as provided in Article
7 of the Supply Agreement); provided, however, that Ethicon shall have approval
rights with respect to the Market Requirements (as defined in the Supply
Agreement), any Third Party manufacturer and the material suppliers with respect
to the Drug Delivery System. Genetronics shall own all tooling; provided,
however, that in the event of a Failure to Supply as defined in the Supply
Agreement, Genetronics shall be required to transfer ownership of all tooling to
Ethicon. The parties shall share equally all Tooling Costs for the Applicator up
to [...***...] in the first year and up to [...***...] in each year thereafter.
Ethicon shall pay for all tooling costs for the Applicator in excess of
[...***...] in the first year and [...***...] in each year thereafter. Tooling
Costs means the direct costs for dies and molds.

        4.2    ETHICON CONTRIBUTIONS.  Subject to Section 2.4:

               (a)    SALES AND MARKETING. Ethicon will sell, contract,
distribute, enter orders, invoice, collect, and market the Drug Delivery System
in the Territory for use in the Field.

               (b)    CLINICAL TRIALS. As of the Effective Date, but subject to
its approval of the Clinical/Regulatory Program (including the proposed budget
for clinical trials), Ethicon shall assume all clinical costs associated with
the Clinical/Regulatory Program other than those costs with respect to the head
and neck indication. Ethicon will consult with Genetronics in an effort to
assist Genetronics with the clinical trials of the Drug Delivery System
conducted pursuant to this Agreement.

               (c)    REGULATORY. The parties agree that Ethicon will be
responsible for filing for regulatory approval and funding clinical studies in
the Territory except for head and neck indications in the United States and the
application for CE mark in Europe as described in Section 4.1. Ethicon shall
provide Genetronics for its use under Section 4.1(d) in obtaining regulatory
approvals with copies of all data, results and related information from clinical
trials in the Territory and all regulatory filings and related information in
the territory, all of the information shall be considered Confidential
Information of Ethicon (as defined in Article 15).

        4.3    COMMERCIALLY REASONABLE AND DILIGENT EFFORTS. Each party shall
use commercially reasonable and diligent efforts to perform its responsibilities
under this Agreement. As used herein, the term "commercially reasonable and
diligent efforts" means, unless the parties agree otherwise, those efforts
consistent with the exercise of prudent scientific and business judgment, as
applied to other products of similar scientific and commercial potential within
the relevant product lines of the parties.

                                      11. *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   12

        4.4    AVAILABILITY OF RESOURCES. Each party shall maintain
laboratories, offices and all other facilities reasonably necessary to carry out
the activities to be performed by such party under this Agreement.

        4.5    DISCLOSURE; REPORTS. Genetronics shall make available and
disclose to Ethicon promptly after the Effective Date all Genetronics Know-How
to the extent necessary for Ethicon to perform its obligations under this
Agreement. The parties shall exchange, at a minimum, quarterly written reports
(with copies to the Advisory Committee) presenting a meaningful summary of the
activities performed by such party under this Agreement. In addition, on
reasonable request by a party, the other party shall make presentations of its
activities under this Agreement.

                                    ARTICLE 5
                                GRANT OF LICENSES

        5.1    LICENSE TO DRUG DELIVERY SYSTEM. Subject to the terms and
conditions of this Agreement and during the Term, Genetronics hereby grants to
Ethicon an exclusive license, including the right to grant sublicenses pursuant
to Section 5.2, under the Genetronics Technology to use, offer for sale, sell
and import the Drug Delivery System in the Territory for use in the Field, and
an exclusive license to use and distribute the Software and Trademarks in the
Territory for use in the Field.

        5.2    SUBLICENSES. Except as expressly provided hereunder or in the
Supply Agreement, Ethicon may sublicense any rights or obligations hereunder
without the prior written consent of Genetronics; provided, however, that
Ethicon may not sublicense its rights and obligations hereunder to a sublicensee
who is a direct competitor of Genetronics in the field of Electroporation
without Genetronics' prior written consent. Ethicon shall notify any sublicensee
hereunder of all rights and obligations of Ethicon under this Agreement which
are sublicensed to such sublicensee. Ethicon shall remain primarily liable under
this Agreement irrespective of any sublicense granted hereunder.

        5.3    RIGHT OF FIRST NEGOTIATION. Genetronics shall provide Ethicon (a)
written notice of its intention to license a Drug Delivery System for either
dermatological and/or cardiovascular applications (except Gene Therapy
applications), and (b) a functional prototype of such Drug Delivery System which
demonstrates relevant pre-clinical efficacy. During the 120-day period following
receipt of such written notice and prototype Drug Delivery System from
Genetronics, Ethicon shall have the first right to negotiate a license to the
Drug Delivery System for either dermatological and/or cardiovascular
applications, as applicable, upon commercially reasonable terms mutually
acceptable to the parties. In the event the parties are unable to reach
agreement on the terms of such a license within such 120-day period, Genetronics
shall have no further obligation to Ethicon under this Section 5.3.

                                      12.
<PAGE>   13

        5.4    RIGHT OF FIRST REVIEW. Except in respect of relationships in
existence as of the Effective Date, Genetronics shall provide Ethicon (a)
written notice of its intention to license a Drug Delivery System for Gene
Therapy applications, and (b) a functional prototype of such Drug Delivery
System which demonstrates relevant pre-clinical efficacy, prior to approaching a
Third Party to license such Drug Delivery System for Gene Therapy applications.
Genetronics shall discuss with Ethicon a possible development and license
agreement to use such Drug Delivery System for Gene Therapy applications, but is
under no obligation to enter into any such agreement with Ethicon. After
providing such written notice and prototype Drug Delivery System to Ethicon,
Genetronics shall have no further obligation to Ethicon under this Section 5.4.

        5.5    IMPROVEMENTS. During the Term, Ethicon hereby grants Genetronics
an non-exclusive, royalty-free license to use and practice any Ethicon
Improvements within the Field solely in Canada that are incorporated into the
Drug Delivery System being sold by Ethicon. Ethicon shall notify Genetronics
within a reasonable period of time of any such Ethicon Improvements.

                                    ARTICLE 6
                               PAYMENT OBLIGATIONS

        6.1    LICENSE FEE. In partial consideration of the license granted to
Ethicon by Genetronics under Section 5.1, Ethicon shall pay to Genetronics a
one-time, non-refundable fee of $4,000,000 within seven (7) days of the
Effective Date.

        6.2    MILESTONES. The party that first becomes aware of the achievement
of any milestone hereunder shall provide the other party written notice of any
milestone achieved hereunder within 10 days of achievement of such milestone.
Within 30 days after achievement of each of the following milestones, Ethicon
shall pay to Genetronics the non-refundable milestone payment set forth below:

               (a)    RESEARCH AND DEVELOPMENT.

                      (i)    $500,000 upon receipt of CE certification of ISO
                             9001 by a notified body, provided that such payment
                             shall be reduced by $100,000 per month on a
                             pro-rata daily basis following March 31, 1999;

                      (ii)   [...***...] upon completion of a [...***...] with
                             respect to the Drug Delivery System for the
                             [...***...] or upon waiver of such [...***...];

                      (iii)  [...***...] upon the issuance of patents
                             corresponding to [...***...] in the United States,
                             Europe and Japan; and

                                      13. *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   14

                      (iv)   [...***...] upon the issuance of patents
                             corresponding to U.S. Patent Application Serial
                             Number [...***...] in the United States, Europe and
                             Japan.

               (b)    DEVELOPMENT OF DEEP SEATED PROBE.

                      (i)    [...***...] upon agreement by the parties of the
                             [...***...] of the Deep Seated Probe;

                      (ii)   [...***...] upon [...***...] of a prototype Drug
                             Development System for use in the Field which meets
                             the agreed upon [...***...];

                      (iii)  [...***...] upon [...***...] for the first agreed
                             upon indication by the Advisory Committee;

                      (iv)   [...***...] upon [...***...] by [...***...] of the
                             Deep Seated Probe; and

                      (v)    [...***...] upon production of the [...***...] of
                             the Deep Seated probe which meets the agreed upon
                             product specifications.

               (c)    SALES AND MARKETING.

                      (i)    [...***...] upon the First Commercial Sale of the
                             Drug Delivery System in [...***...];

                      (ii)   [...***...] upon the First Commercial Sale of the
                             Drug Delivery System in [...***...];

                      (iii)  [...***...] upon achievement of cumulative Net
                             Sales (cumulative sales of the Applicator and the
                             Generator) in excess of [...***...] within
                             [...***...]; and

                      (iv)   [...***...] upon achievement of cumulative Net
                             Sales (cumulative sales of the Applicator and the
                             Generator) in excess of [...***...] [...***...].

               (d)    HEAD AND NECK CANCER.

                      (i)    [...***...] upon [...***...] for an agreed upon
                             indication for head and neck cancer (the parties
                             agreeing to work together with [...***...] to
                             formulate such indication); provided that such
                             payment shall be reduced by [...***...] on a
                             pro-rata [...***...] basis following [...***...];
                             and

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                      14.
<PAGE>   15

                      (ii)   [...***...] upon the successful completion of a
                             [...***...] study using the Drug Delivery System;
                             with [...***...] paid upon the achievement of the
                             results set forth in each of Sections
                             6.2(d)(iii)(3)(a), (b) or (c) below. The payment
                             shall be reduced by [...***...] per month on a
                             pro-rata [...***...] basis following [...***...].
                             The study will be a [...***...]. A summary of these
                             studies is attached hereto as Exhibit D.

                      (iii)  Successful completion of a [...***...] shall mean

                             (1)    completion of the planned study with:

                                    (a)    a statistically significant number of
patients with [...***...] who have completed Electroporation therapy; and

                                    (b)    an appropriate control group of
patients (if required by the regulatory agency);

                             (2)    completion of the data analysis and medical
regulatory report writing in sufficient detail to allow for peer review by the
medical community, and

                             (3)    the study will confirm that in patients with
[...***...]:

                                    (a)    [...***...] of patients who have
tumors completely treated by Electroporation therapy will have [...***...] at
the treatment site (i.e. [...***...];

                                    (b)    [...***...] of patients who have a
complete response at the treatment site will have [...***...] at that site for
the earlier of [...***...] or the duration of their life; and

                                    (c)    [...***...] of patients who have
[...***...] at the end of their therapy will survive [...***...] from the last
treatment of Electroporation therapy.

               (e)    QUALITY OF LIFE

                      (i)    [...***...] upon [...***...] of a [...***...]
quality of life study on a statistically significant head and neck cancer
patient pool, which demonstrates such cancer patients who have undergone
Electroporation therapy using the Product (as defined in the Supply Agreement)
have [...***...] in such [...***...] quality of life study and [...***...] as
compared to alternative conventional therapy for recurrent head and neck cancer
patients. Electroporation therapy need not be a curative means for this study.

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                      15.
<PAGE>   16

                      (ii)   [...***...] upon [...***...] of a [...***...]
quality of life study on a statistically significant patient pool for a cancer
indication (other than head and neck) approved by the Advisory Committee, which
demonstrates such cancer patients who have undergone Electroporation therapy
using the Product (as defined in the Supply Agreement) have [...***...] in such
[...***...] quality of life study and [...***...] as compared to alternative
conventional therapy for similar patients with the same type of cancer (such
indication for Electroporation cancer therapy being different from 6.2(e)(i) and
6.2(e)(iii)). Electroporation therapy need not be a curative means for this
study.

                      (iii)  [...***...] upon [...***...] of a [...***...]
quality of life study on a statistically significant patient pool for a cancer
indication (other than head and neck or the indication approved in paragraph
(ii) above) approved by the Advisory Committee, which demonstrates such cancer
patients who have undergone Electroporation therapy using the Product (as
defined in the Supply Agreement) have [...***...] in such [...***...] quality of
life study and [...***...] as compared to alternative conventional therapy for
similar patients with the same type of cancer (such indication for
Electroporation cancer therapy being different from 6.2(e)(i) and 6.2(e)(ii)).
Electroporation therapy need not be a curative means for this study.

        6.3    PAYMENTS OBLIGATIONS.

               (a)    During the Term, Ethicon shall pay to Genetronics
[...***...] of Net Sales.

               (b)    No multiple or stacked royalties shall be due on the Drug
Delivery System if the Drug Delivery System is within the scope of more than one
Valid Claim or more than one patent licensed under this Agreement.

        6.4    ETHICON OBLIGATIONS.

               (a)    Ethicon will launch the Drug Delivery System in one or
more of the Tier 1 European Countries for use in the Field within [...***...]
following the satisfaction by Genetronics at its sole cost and expense of the
following: (i) CE Certification of the Drug Delivery System, (ii) be capable of
supplying commercial quantities of the Drug Delivery System reasonably
acceptable to Ethicon in accordance with the Supply Agreement, (iii) completion
of the current French clinical trials EPT-04, EPT-06, and EPT-07, and (iv)
provided that the Drug Delivery System complies with the mutually agreed upon
Specifications set forth in the Supply Agreement. In the event Ethicon fails to
launch the Drug Delivery System in the Tier 1 European Countries within such
[...***...] period, Ethicon shall pay to Genetronics (1) for the first
[...***...] delay, on a month by month basis, a payment equal to [...***...] of
Net Sales assuming the most current agreed upon production forecast for the Drug
Delivery System for the next month was sold in the Tier 1 European Countries,
thereafter (2) for the next [...***...] months of delay, on a month by month
basis, a payment equal to [...***...] of Net Sales assuming the most current
agreed upon production forecast for the Drug Delivery System for the next month
was sold in the Tier 1 European Countries; thereafter, the license granted
hereunder shall be converted to a non-exclusive license and Ethicon shall pay
based on actual sales as provided in paragraph 6.3. Notwithstanding the
foregoing, if the manufacture, use or

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                      16.
<PAGE>   17

sale of the Drug Delivery System [...***...] an [...***...] in the applicable
[...***...], the [...***...] in such [...***...] shall be [...***...], at its
[...***...].

               (b)    Ethicon will launch the Drug Delivery System in the United
States for use in the Field within [...***...] following the satisfaction by
Genetronics at its sole cost and expense of the following for the U.S.: (i) FDA
approval to use the Drug Delivery System for such indication and, (ii) be
capable of supplying commercial quantities of the Generator reasonably
acceptable to Ethicon in accordance with the Supply Agreement; and (iii)
provided that the Drug Delivery System complies with the mutually agreed upon
Specifications set forth in the Supply Agreement. In the event Ethicon fails to
launch the Drug Delivery System in the United States within such [...***...]
period, Ethicon shall pay to Genetronics (1) for the first [...***...] delay, on
a month by month basis, a payment equal to [...***...] of Net Sales assuming the
most current agreed upon production forecast for the Drug Delivery System for
the next month was sold in the United States; thereafter, (2) for the next
[...***...] of delay, on a month by month basis, a payment equal to [...***...]
of Net Sales assuming the most current agreed upon production forecast for the
Drug Delivery System for the next month was sold in the United States thereafter
the license granted hereunder shall be converted to a non-exclusive license and
Ethicon shall pay based on actual sales as provided in paragraph 6.3.
Notwithstanding the foregoing, if the [...***...] of the Drug Delivery System
[...***...] an [...***...] in the [...***...], the [...***...] in the
[...***...] shall be [...***...], at [...***...].

        6.5    CNRS AND IGR LICENSE. The parties agree that if Ethicon (which
for the purpose of this paragraph shall also include its affiliate Ethnor)
should decide in its sole discretion to exercise its option with the LeCentre
National De La Recherche Scientifique ("CNRS") and L'Institut Gustave Roussy
("IGR") to license French Patent No. 93 03688 and its corresponding counterparts
(the "French Patent"), then Ethicon will notify Genetronics in writing promptly
following the exercise of the option. Ethicon shall be responsible for paying
the sums required to exercise the option in the expanded territory [...***...]
and the yearly lump sum required until the first commercial sale in the expanded
territory [...***...] and one half of the sum due upon the launch of a product
in the expanded territory [...***...]. Genetronics agrees to pay half the sum
due upon the launch of a product in the expanded territory [...***...]. In the
event of and for so long as Ethicon is obligated under the agreement with the
CNRS and IGR to pay fees for the license of the French Patent, Genetronics
agrees to permit Ethicon to deduct from the amounts due Genetronics under the
Supply Agreement, on a country by country basis:

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                      17.
<PAGE>   18

               (a)    [...***...] of the Purchase Price (as defined in the
Supply Agreement) in countries where the French Patent has been filed and
remains in full force and effect, or

               (b)    [...***...] of the Purchase Price (as defined in the
Supply Agreement) in countries where no patent has been filed or in which the
French Patent has expired or been forfeited;

provided, however, that in no event will Ethicon be allowed to deduct from any
amount due Genetronics under the Supply Agreement more than the royalty due to
the CNRS and IGR. Since the minimum royalty due under the agreement with the
CNRS and IGR has not been negotiated, Ethicon and Genetronics agree to meet and
negotiate in good faith to determine what, if any, minimum royalty to offer to
the CNRS and IGR. Ethicon shall initiate discussions with the CNRS and IGR or
their representatives to reach agreement on such minimum royalty. Genetronics at
its sole discretion may attend and participate in such discussions. Ethicon
shall use reasonable commercial efforts to convince the CNRS and IGR or their
representative that the minimum royalty determined to be reasonable by Ethicon
and Genetronics is appropriate. If Ethicon is unable to convince the CNRS and
IGR that such minimum royalty is reasonable, Ethicon and Genetronics shall
negotiate in good faith to determine an appropriate course of action.

                                    ARTICLE 7
                            PAYMENTS; RECORDS; AUDITS

        7.1    PAYMENT; REPORTS. Royalty payments shall be calculated and
reported for each fiscal quarter of Ethicon. All royalty payments due to
Genetronics under this Agreement shall be paid within 45 days of the end of each
fiscal quarter, unless otherwise specifically provided herein. Each payment of
royalties shall be accompanied by a report in sufficient detail to permit
confirmation of the accuracy of the royalty payment made, including, without
limitation, Net Sales, the royalties payable in United States dollars, the
method used to calculate the royalty and the exchange rates used.

        7.2    EXCHANGE RATE; MANNER AND PLACE OF PAYMENT. All payments
hereunder shall be payable in United States dollars. With respect to each
quarter, for countries other than the United States, whenever conversion of
payments from any foreign currency shall be required, such conversion shall be
made at the rate of exchange reported in The Wall Street Journal on the last
business day of the applicable reporting period. All payments owed under this
Agreement shall be made by wire transfer to a bank account designated by
Genetronics, unless otherwise specified in writing by Genetronics.

        7.3    LATE PAYMENTS. In the event that any payment, including royalty
payments, due hereunder is not made when due, the payment shall accrue interest
from that date due at the rate of 1.5% per month; provided however, that in no
event shall such rate exceed the maximum legal annual interest rate. The payment
of such interest shall not limit Genetronics from exercising any other rights it
may have as a consequence of the lateness of any payment.

                                      18.      *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   19

        7.4    RECORDS AND AUDITS. During the Term, and for a period of one year
thereafter, Ethicon shall keep complete and accurate records in sufficient
detail to permit Genetronics to confirm the accuracy of all payments due
hereunder. Genetronics shall have the right to cause an independent, certified
public accountant reasonably acceptable to Ethicon to audit such records to
confirm royalty payments for the preceding year. Such audits may be exercised
during normal business hours no more than once in any 12-month period upon at
least 30 days' prior written notice to Ethicon. Genetronics shall bear the full
cost of such audit unless such audit discloses an underpayment by more than 5%
of the amount due under this Agreement. In such case, Ethicon shall bear the
full cost of such audit. In all events, Ethicon shall pay any underpayment with
interest in accordance with Section 7.3. Any dispute regarding any payments due
hereunder shall be subject to the dispute resolution procedures set forth in
Article 15.

        7.5    TAXES. All taxes levied on account of the royalties and other
payments accruing to Genetronics under this Agreement shall be paid by
Genetronics for its own account, including taxes levied thereon as income to
Genetronics. If provision is made in law or regulation for withholding, such tax
shall be deducted from the royalty or other payment made by Ethicon to the
proper taxing authority and a receipt of payment of the tax secured and promptly
delivered to Genetronics. Each party agrees to assist the other party in
claiming exemption from such deductions or withholdings under any double
taxation or similar agreement or treaty from time to time in force.

        7.6    PROHIBITED PAYMENTS. Notwithstanding any other provision of this
Agreement, if Ethicon is prevented from paying any such royalty by virtue of the
statutes, laws, codes or governmental regulations of the country from which the
payment is to be made, then such royalty may be paid by depositing funds in the
currency in which accrued to Genetronics' account in a bank acceptable to
Genetronics in the country whose currency is involved.

                                    ARTICLE 8
                                   TRADEMARKS

        All uses by Ethicon of Genetronics' name, or any trademark, service mark
or tradename (or any mark or name closely resembling the same), now or hereafter
owned or licensed by Genetronics or any of its Affiliates shall be subject to
the prior written consent of Genetronics. Ethicon is not authorized to use
Genetronics' name or any such trademark, service mark or tradename in connection
with any aspect of its business, other than in connection with the sales,
marketing, promotion and distribution of the Drug Delivery System in accordance
with the terms of this Agreement and the Supply Agreement. Ethicon (a) shall not
use any trademark, service mark or trade name of Genetronics as part of its
name, and (b) shall not do or permit any act to be done at any time which may in
any way impair the rights of Genetronics in any such trademark, service mark or
trade name. All uses of any trademark, service mark or trade name of Genetronics
shall inure to the benefit of Genetronics. Ethicon shall not

                                      19.
<PAGE>   20

adopt, use or attempt to register any trademark, service mark or trade name
which is confusingly similar to any trademark, service mark or trade name of
Genetronics.

                                    ARTICLE 9
                                 INDEMNIFICATION

        In order to distribute among themselves the responsibility for claims
arising out of this Agreement, and except as otherwise specifically provided for
herein, the parties agree as follows:

        (a)    Genetronics agrees to defend and indemnify and hold Ethicon
harmless against any and all claims, suits, proceedings, expenses, recoveries
and damages (including, but not limited to, any expenses incurred in connection
with any recall of the Drug Delivery System), including court costs and
reasonable attorneys fees and expenses, arising out of, based on, or caused by
(i) any product liability claim related to alleged defects in materials, design,
construction or workmanship of the Drug Delivery System in the form supplied to
Ethicon by Genetronics hereunder, (ii) in connection with the Drug Delivery
System manufactured by Ethicon, product liability claims related to alleged
defects in design of the Drug Delivery System to the extent designed by
Genetronics, (iii) the breach by Genetronics of any representation or warranty
contained in this Agreement, or (iv) clinical trials performed by Genetronics in
each case except to the extent that such claims, suits, proceedings, expenses,
recoveries or damages arise from or are aggravated by acts of or failure to act
by Ethicon. Ethicon will promptly notify Genetronics of any such claim or demand
which comes to its attention.

        (b)    Ethicon agrees to defend and indemnify and hold Genetronics
harmless against any and all claims, suits, proceedings, expenses, recoveries,
and damages including court costs and reasonable attorneys fees and expenses, in
connection with the Drug Delivery System sold by Ethicon or its Affiliates
arising out of, based on, or caused by (i) statements, whether written or oral,
made or alleged to be made by Ethicon or its Affiliates on the packaging or
labeling of the Drug Delivery System, or in the advertising, publicity,
promotion, or sale of the Drug Delivery System, (ii) the storage, sale,
shipment, promotion or distribution of the Drug Delivery System by Ethicon or
its Affiliates, (iii) the breach by Ethicon of any representation or warranty
contained in this Agreement, or (iv) any product liability claim related to
alleged defects in materials, design (unless designed by Genetronics),
construction or workmanship of the Drug Delivery System manufactured by or for
Ethicon hereunder by a party other than Genetronics or its Affiliates, in each
case except to the extent that such claims, suits, proceedings, expenses,
recoveries or damages arise from or are aggravated by acts of or failure to act
by Genetronics. Genetronics will promptly notify Ethicon of any such claim or
demand which comes to its attention.

                                   ARTICLE 10
                         PATENT RIGHTS AND INFRINGEMENT

                                      20.
<PAGE>   21

                                    ARTICLE 1

        10.1   OWNERSHIP OF PATENT RIGHTS. Ownership of inventions conceived of
or reduced to practice in the course of the Collaboration shall be determined in
accordance with the rules of inventorship under United States patent law.
Ethicon shall own all inventions conceived of and reduced to practice solely by
its employees and agents, and all patent applications and patents claiming such
inventions. Genetronics shall own all Genetronics Technology and all inventions
conceived of and reduced to practice solely by its employees and agents, and all
patent applications and patents claiming such inventions. All inventions
conceived of and reduced to practice jointly by employees or agents of
Genetronics and employees or agents of Ethicon, and all Joint Patent Rights
shall be owned jointly by Genetronics and Ethicon.

        10.2   PROSECUTION AND MAINTENANCE OF PATENT RIGHTS.

               (a)    Subject to commercially appropriate and reasonable efforts
(subject to oversight by the Advisory Committee), Genetronics shall at its own
expense and by counsel of its own choice, file, prosecute and maintain all
patent applications and patents within the Genetronics Patent Rights and any
inventions conceived of and reduced to practice solely by its employees and
agents hereunder. Genetronics shall do everything commercially appropriate and
reasonable (subject to oversight by the Advisory Committee), including without
limitation filing all documents and paying all fees to the appropriate patent
offices to maintain the patents and pending patent applications in effect.
Genetronics agrees to promptly provide Ethicon with copies of all correspondence
to and from the patent offices related to the pending patent applications within
the Genetronics Patent Rights. Ethicon shall have the right to provide comments
to Genetronics regarding the content of such correspondence, and to comment
thereon. Genetronics shall consider all such comments offered by Ethicon;
provided, that all final decisions with respect to such prosecution shall rest
solely in the discretion of Genetronics. In the event that Genetronics desires
to abandon any such patent application or patent within the Genetronics Patent
Rights, or if Genetronics later declines to prosecute or maintain any such
patent application or patent, Genetronics shall provide reasonable prior written
notice to Ethicon of such intention and Ethicon shall have the right, but not
the obligation at its own expense, to file, prosecute, and maintain such patent
application or patent, which Genetronics shall assign to Ethicon and shall no
longer be subject to the terms of this Agreement.

               (b) The Advisory Committee shall determine which party shall be
responsible for the filing, prosecution and maintenance of patent applications
and patents within the Joint Patent Rights on a case by case basis, with the
understanding that it is the parties' intent that Genetronics shall be initially
responsible for the filing, prosecution and maintenance of patent applications
and patents within the Joint Patent Rights related to the Drug Delivery System.
In the event that a party responsible for the filing, prosecution and
maintenance of any patent application or patent within the Joint Patent Rights
desires to abandon such patent application or patent, or if such party later
declines responsibility for such patent application or patent, such party shall
provide reasonable prior written notice to the other party of its intention to
abandon or decline responsibility, and the other party shall have the right, but
not the obligation, to prepare, file, prosecute, and maintain any such patent
application or patent within the Joint

                                      21.
<PAGE>   22

Patent Rights. The parties shall share equally the costs of filing, prosecuting
and maintaining patents or patent applications within the Joint Patent Rights.

        10.3   COOPERATION OF THE PARTIES. Each party agrees to cooperate fully
in the preparation, filing, and prosecution of any Joint Patent Rights under
this Agreement. Such cooperation includes, but is not limited to:

               (a)    executing all papers and instruments, or requiring its
employees or agents, to execute such papers and instruments, so as to effectuate
the ownership of Joint Patent Rights set forth in Section 10.1 and to enable the
other party to apply for and to prosecute joint patent applications in any
country; and

               (b)    promptly informing the other party of any matters coming
to such party's attention that may affect the preparation, filing, or
prosecution of any such joint patent applications.

        10.4   INFRINGEMENT OF THIRD PARTY RIGHTS. Genetronics and Ethicon shall
promptly notify the other in writing of any allegation by a Third Party that the
activity of either of the parties in connection with this Agreement infringes or
may infringe the intellectual property rights of such Third Party. Genetronics
shall have the right to control the defense of any claims with respect to the
Genetronics Technology, at its own expense and by counsel of its own choice, and
Ethicon shall have the right to be represented in any such action, at its own
expense and by counsel of its own choice. In the event that such matter includes
claims with respect to the Joint Patent Rights, the party responsible for
prosecution and maintenance of the applicable Joint Patent Rights under Section
10.2(b) shall have the right to control the defense of such claims by counsel of
its own choice and the parties shall share equally the costs with respect
thereto. If Genetronics fails to proceed in a timely fashion with regard to the
defense of any claims with respect to the Genetronics Technology, Ethicon shall
have the right to control any such defense of such claim at its own expense and
by counsel of its own choice, and Genetronics shall have the right to be
represented in any such action, at its own expense and by counsel of its own
choice. Neither party shall have the right to settle any patent infringement
litigation under this Section 10.4 in a manner that diminishes the rights or
interests of the other party or obligates the other party to make any payment or
take any action without the consent of such other party.

        If as a result of the manufacture, use or sale of the Drug Delivery
System in any country of the Territory, Genetronics or Ethicon or any Affiliate
of either of them is sued for patent infringement or threatened with such a
lawsuit or other actions by a Third Party, Genetronics and Ethicon shall meet to
analyze the infringement claim and avoidance of same. If it is necessary to
obtain a license from such Third Party, Genetronics and Ethicon in negotiating
such a license shall make every effort to minimize the license fees and/or
royalty payable to such Third Party. If Ethicon shall be obligated to pay a
license fee, royalty or both, then Genetronics shall elect within ten (10) days
of the execution of the license with such Third Party to

                                      22.
<PAGE>   23

 [...***...].

        10.5   INFRINGEMENT BY THIRD PARTIES. Genetronics and Ethicon shall
promptly notify the other in writing of any alleged or threatened infringement
of any patent included in the Genetronics Patent Rights or the Joint Patent
Rights of which they become aware. Both parties shall cooperate with each other
to terminate such infringement without litigation. Genetronics shall have the
right to bring and control any action or proceeding with respect to infringement
of any patent included in the Genetronics Patent Rights, at its own expense and
by counsel of its own choice, and Ethicon shall have the right to be represented
in any such action, at its own expense and by counsel of its own choice. In the
event any patent included in the Joint Patent Rights is infringed by a Third
Party, the party responsible for prosecution and maintenance of the applicable
Joint Patent Rights under Section 10.2(b) shall have the right to bring and
control any action or proceeding with respect to such patent, and the other
party shall have the right to be represented in any such action by counsel of
its own choice, and the parties shall share equally in the expenses thereof.
With respect to infringement of any patent included in the Genetronics Patent
Rights, if Genetronics fails to bring an action or proceeding within (a) 90 days
following the notice of alleged infringement or (b) 10 days before the time
limit, if any, set forth in the appropriate laws and regulations for the filing
of such actions, whichever comes first, Ethicon shall have the right to bring
and control any such action, at its own expense and by counsel of its own
choice, and Genetronics shall have the right to be represented in any such
action, at its own expense and by counsel of its own choice. In the event a
party brings an infringement action, the other party shall cooperate fully,
including if required to bring such action, the furnishing of a power of
attorney. Neither party shall have the right to settle any patent infringement
litigation under this Section 10.5 in a manner that diminishes the rights or
interests of the other party without the consent of such other party. In the
event Genetronics brings such action, any recovery realized as a result of such
litigation, after reimbursement of any litigation expenses of Genetronics and
Ethicon, shall belong to Genetronics.

        10.6   ENFORCEMENT OR DEFENSE BY ETHICON. In the event Ethicon brings
any action to enforce or defend the Genetronics Patent Rights, Ethicon may
withhold up to 50% of the royalties otherwise due to Genetronics hereunder for
the duration of such action and may apply such withheld amounts toward
reimbursement of its litigation expenses, including reasonable attorneys' fees,
in connection with such action. Any recovery realized by Ethicon as a result of
such litigation shall be applied first in satisfaction of any unreimbursed
litigation expenses of Ethicon and any litigation expenses of Genetronics, and
next toward reimbursement of royalties withheld by Ethicon and due to
Genetronics, and the remainder shall belong to Ethicon, subject to payment of
royalties as if such recovery were Net Sales.

                                   ARTICLE 11
                 THIS ARTICLE HAS BEEN INTENTIONALLY LEFT BLANK

                                      23.      *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   24

                                   ARTICLE 12
                         REPRESENTATIONS AND WARRANTIES

        12.1   CORPORATE POWER. Each party hereby represents and warrants that
such party is duly organized and validly existing under the laws of the state of
its incorporation and has full corporate power and authority to enter into this
Agreement and to carry out the provisions hereof.

        12.2   DUE AUTHORIZATION. Each party hereby represents and warrants that
such party is duly authorized to execute and deliver this Agreement and to
perform its obligations hereunder.

        12.3   BINDING OBLIGATION. Each party hereby represents and warrants
that this Agreement is a legal and valid obligation binding upon it and is
enforceable in accordance with its terms. The execution, delivery and
performance of this Agreement by such party does not conflict with any
agreement, instrument or understanding, oral or written, to which it is a party
or by which it may be bound, nor violate any law or regulation of any court,
governmental body or administrative or other agency having authority over it.

        12.4   INCONSISTENT AGREEMENT. Neither party has entered into, nor will
they enter into any agreements that are inconsistent with the rights conferred
to the other party under this Agreement.

        12.5   REPRESENTATIONS AND WARRANTIES OF GENETRONICS. Genetronics hereby
represents and warrants to Ethicon that:

               (a)    During the Term, Genetronics is the sole and exclusive
owner of or, for licenses executed after the date hereof, licenses with the
right to sublicense, the Genetronics Technology; provided, however, that there
are no such licenses as of the Effective Date.

               (b)    As of the Effective Date, Genetronics has not received any
notice from any person or entity claiming to have any right, title or interest
in or to the Genetronics Technology and, to the best of its knowledge, has no
reason to expect that any such notice is forth coming.

               (c)    As of the Effective Date, to the best of its knowledge,
that the patents included in the Genetronics Patents Rights are valid and
enforceable in those countries listed on Exhibit E hereto.

               (d)    As of the Effective Date, Genetronics has no knowledge of
(i) any existing published patent application or issued patent which the
manufacture, use or sale of the Drug Delivery System would infringe, and (ii)
any infringement of the Genetronics Patent Rights by a Third Party.

                                      24.
<PAGE>   25

               (e)    All authorizations, approvals, or permits, if any, of any
governmental authority or regulatory body of the United States or of any country
or state that are required in connection with this Agreement including, but not
limited to, the notification requirements under the Hart Scott Rodino Antitrust
Improvements Act of 1976, if required, shall have been duly obtained and shall
be effective on and as of the Effective Date.

        12.6   DISCLAIMER OF WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT OR THE SUPPLY AGREEMENT:

               (a)    NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY TO THE
OTHER PARTY OF ANY KIND;

               (b)    NOTHING HEREIN SHALL BE CONSTRUED AS A REPRESENTATION OR
WARRANTY BY GENETRONICS TO ETHICON THAT THE GENETRONICS TECHNOLOGY IS VALID,
ENFORCEABLE, OR NOT INFRINGED BY ANY THIRD PARTY OR THAT THE PRACTICE OF SUCH
RIGHTS DOES NOT INFRINGE ANY INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY; AND

               (c)    NEITHER PARTY MAKES ANY WARRANTIES, EXPRESS OR IMPLED,
CONCERNING THE SUCCESS OF THE DEVELOPMENT OR THE COMMERCIAL EXPLOITATION OF THE
DRUG DELIVERY SYSTEM.

                                   ARTICLE 13
                              TERM AND TERMINATION

        13.1   TERM. This Agreement shall commence as of the Effective Date and
shall continue, until the expiration of the last to expire of the Genetronics
Patent Rights covering the Drug Delivery System in any country, unless
terminated earlier as provided herein (the "Term"). Following the expiration of
this Agreement in accordance with this Section 13.1, Ethicon shall have a
fully-paid license on the same terms as set forth in Section 5.1, except that
such license shall be a non-exclusive, worldwide, fully-paid, irrevocable
license with the right to make and have made the Drug Delivery System in the
Territory for use in the Field.

        13.2   TERMINATION BY ETHICON. Ethicon may terminate this Agreement
without cause upon 180 days' prior written notice to Genetronics. Upon
termination of this Agreement by Ethicon pursuant to this Section 13.2, (i)
Ethicon shall have no right to practice the Genetronics Patent Rights or use any
of the Genetronics Technology, (ii) all right, title or interest in, or other
incidents of ownership under, the Genetronics Technology shall revert to and
become the sole property of Genetronics, and (iii) any sublicenses granted
hereunder by Ethicon shall remain in effect, but shall be assigned to
Genetronics.

        13.3   EVENTS OF DEFAULT. The occurrence of any one or more of the
following acts, events or occurrences shall constitute an "Event of Default"
under this Agreement:

                                      25.
<PAGE>   26

               (a)    a failure by Ethicon to pay 60 days after written notice
thereof by Genetronics any amount due in accordance with Article 6 hereof; or

               (b)    either party becomes the subject of a Bankruptcy Event; or

               (c)    in the event Ethicon terminates the Supply Agreement upon
breach by Genetronics; or

               (d)    in the event of a Change in Control of Genetronics, and
such Change in Control involves (i) a Competitor (as defined below); (ii) any
entity which has a documented and consistent history of Good Manufacturing
Practice problems with the FDA or equivalent problems with any Regulatory
Agency, or (iii) a party which does not have the financial, production or other
resources necessary for it to meet all of the obligations of Genetronics under
this Agreement. For purposes of this paragraph, a "Competitor" shall mean any
entity which is involved in the same business as any operating company among the
Johnson & Johnson Family of Companies ("J&J") that: (A) belongs to the
Professional Sector of (J&J), (B) is engaged in the business of commercially
exploiting surgical oncology products.

        13.4   TERMINATION RIGHTS UPON AN EVENT OF DEFAULT. Upon the occurrence
of an Event of Default, the non-defaulting party in its sole discretion may
terminate this Agreement upon written notice to the defaulting party. If the
Event of Default is caused by Genetronics (a) Ethicon shall have a fully-paid
license on the same terms as set forth in Section 5.1, except that such license
shall be non-exclusive, worldwide, fully-paid, irrevocable license with the
right to make and have made the Drug Delivery System in the Territory for use in
the Field, and (b) Genetronics shall provide such assistance and other
information as shall be necessary in order for Ethicon to manufacture or have
manufactured the Drug Delivery System. If the Event of Default is caused by
Ethicon all rights granted to Ethicon's by Genetronics under this Agreement
shall terminate immediately upon such Event of Default. Disputes over Events of
Default shall be subject to Article 14.

        13.5   FORCE MAJEURE EVENTS.

               (a)    If either party is prevented from performing any of its
obligations hereunder (other than payment obligations) due to any cause which is
beyond the non-performing party's reasonable control, including, without
limitation, fire, explosion, flood, or other acts of God; acts, regulations, or
laws of any government; war or civil commotion; strike, lock-out or labor
disturbances; or failure of public utilities or common carriers (a "Force
Majeure Event"), such non-performing party shall not be liable for breach of
this Agreement with respect to such non-performance to the extent such
non-performance is due to a Force Majeure Event. Such non-performance will be
excused for three months or as long as such event shall be continuing (whichever
period is shorter), provided that the non-performing party gives immediate
written notice to the other party of the Force Majeure Event. Such
non-performing party shall exercise all reasonable efforts to eliminate the
Force Majeure Event and to resume performance of its affected obligations as
soon as practicable. Should the event of force majeure

                                      26.
<PAGE>   27

continue unabated for a period of sixty (60) days or more, the parties shall
enter into good faith discussions with a view to alleviating its affects or to
agreeing upon such alternative arrangements as may be fair and reasonable having
regard to the circumstances prevailing at that time.

               (b)    In the event that such alternative arrangements cannot be
agreed upon within thirty (30) days after the expiration of such initial sixty
(60) day period, and in the event Genetronics is the party which is the subject
of the force majeure event, then Ethicon shall have the right and option, upon
written notice to Genetronics (the "Force Majeure Notice"), to either
manufacture itself the components of the Drug Delivery System which are the
subject of such force majeure event, or to have a Third Party so manufacture
such components. The Force Majeure Notice shall specify the components which are
the subject thereof. Upon delivery of the Force Majeure Notice to Genetronics,
(i) Ethicon shall be entitled to manufacture the Drug Delivery System itself,
and (ii) Genetronics shall provide such assistance and other information as
shall be necessary in order for Ethicon to manufacture or have manufactured the
Drug Delivery System.

        13.6   REASONABLENESS. Genetronics expressly acknowledges that the
termination provisions contained in this Article 13 are reasonable considering
the intended nature and scope of this Agreement.

        13.7   RIGHTS UPON INSOLVENCY. All rights and licenses granted under or
pursuant to this Agreement or the Supply Agreement by Genetronics to Ethicon are
for all purposes of Section 365(n) of Title 11, U.S. Code (the "Bankruptcy
Code"), licenses of rights to "intellectual property" as defined in the
Bankruptcy Code. The parties agree that Ethicon, as a licensee of such rights
under this Agreement or the Supply Agreement, shall retain and may fully
exercise all of its rights and elections under the Bankruptcy Code. If a case is
commenced by or against Genetronics under the Bankruptcy Code, then, unless and
until this Agreement is rejected as provided in the Bankruptcy Code, Genetronics
(in any capacity, including debtor-in-possession) and its successors and assigns
(including, without limitation, a Bankruptcy Code trustee) shall either perform
or caused to be performed all of the obligations provided in this Agreement to
be performed by Genetronics or provide or cause to be provided to Ethicon all
such intellectual property (including all embodiments thereof) held by
Genetronics and such successors and assigns. If this Agreement is rejected as
provided in the Bankruptcy Code and Ethicon elects to retain its rights
hereunder as provided in the Bankruptcy Code, then Genetronics (in any capacity,
including debtor-in-possession) and its successors and assigns (including,
without limitation, a Bankruptcy Code trustee) shall provide or cause to be
provided to Ethicon all such intellectual property (including all embodiments
thereof) held by Genetronics and such successors and assigns immediately upon
Ethicon's written request therefor. All rights, powers and remedies of Ethicon
provided under this Article are in addition to and not in substitution for any
and all other rights, powers and remedies now or hereafter existing at law or in
equity (including, without limitation, the Bankruptcy Code) in the event of any
such commencement of a bankruptcy proceeding by or against Genetronics. Ethicon,
in addition to the rights, powers and remedies expressly provided herein, shall
be entitled to exercise all other such rights

                                      27.
<PAGE>   28

and powers and resort to all other such remedies as may now or hereafter exist
at law or in equity (including the Bankruptcy Code) in such event.

                                   ARTICLE 14
                               DISPUTE RESOLUTION

        14.1   DISPUTES. The parties recognize that disputes as to certain
matters may from time to time arise which relates to either party's rights and
obligations hereunder. It is the objective of the parties to establish
procedures to facilitate the resolution of such disputes in an expedient and
cost effective manner by mutual cooperation and without resort to litigation. To
accomplish this objective, the parties agree that any dispute, claim or
controversy arising from or related in any way to this Agreement or the
interpretation, application, breach, termination or validity thereof, including
any claim of inducement of this Agreement by fraud or otherwise (a "Dispute"),
shall be referred to the President of each party, who or whose designee shall
attempt to resolve it in good faith to negotiate a resolution of the Dispute
prior to pursuing other remedies. If within 21 days after referral of the
Dispute to such officers, the parties have not succeeded in negotiation a
resolution of the dispute, such dispute shall be submitted to non-binding
mediation pursuant to Section 14.2. If the parties are unable to resolve the
Dispute within 45 days after initiation of non-binding mediation, such dispute
shall be submitted to arbitration pursuant to Section 14.3.

        14.2   MEDIATION.

               (a)    Any Dispute submitted to non-binding mediation shall be
mediated in accordance with the Model Procedures for the Mediation of Business
Disputes promulgated by the Center for Public Resources ("CPR") then in effect,
except where those rules conflict with these provisions, in which case these
provisions control. The mediation shall be conducted in Trenton, New Jersey and
shall be attended by a senior executive with authority to resolve the dispute
from each of the operating companies that are parties.

               (b)    The mediator shall be an attorney specializing in business
litigation who has at least 15 years of experience as a lawyer with a law firm
or corporation of over 25 lawyers or was a judge of a court of general
jurisdiction and who shall be appointed from the list of neutrals maintained by
CPR.

               (c)    The parties shall promptly confer in an effort to select a
mediator by mutual agreement. In the absence of such an agreement, the mediator
shall be selected from a list generated by CPR with each party having the right
to exercise challenges for cause and two peremptory challenges within 72 hours
of receiving the CPR list.

               (d)    The mediator shall confer with the parties to design
procedures to conclude the mediation within no more than 45 days after
initiation. Under no

                                      28.
<PAGE>   29

circumstances shall the commencement of arbitration under Section 14.3 below be
delayed more than 45 days by the mediation process specified herein.

               (e)    Each party agrees to toll all applicable statutes of
limitation during the mediation process and not to use the period or pendancy of
the mediation to disadvantage the other party procedurally or otherwise. No
statements made by either side during the mediation may be used by the other
during any subsequent arbitration.

               (f)    Each party has the right to pursue provisional relief from
any court, such as attachment, preliminary injunction, replevin, etc., to avoid
irreparable harm, maintain the status quo, or preserve the subject matter of the
arbitration, even though mediation has not been commenced or completed.

        14.3   DISPUTE RESOLUTION; ARBITRATION.

               (a)    Any Dispute will be submitted for resolution to
arbitration pursuant to the commercial arbitration rules then pertaining of the
CPR, except where those rules conflict with these provisions, in which case
these provisions control. The arbitration will be held in Trenton, New Jersey.

               (b)    The panel shall consist of three arbitrators chosen from
the CPR Panels of Distinguished Neutrals each of whom is a lawyer specializing
in business or patent litigation with at least 15 years experience with a law
firm or corporation of over 25 lawyers or was a judge of a court of general
jurisdiction. In the event the aggregate damages sought by the claimant are
stated to be less than $5 million, and the aggregate damages sought by the
counterclaimant are stated to be less than $5 million, and neither side seeks
equitable relief, then a single arbitrator shall be chosen, having the same
qualifications and experience specified above.

               (c)    The parties agree to cooperate (1) to obtain selection of
the arbitrator(s) within 30 days of initiation of the arbitration, (2) to meet
with the arbitrator(s) within 30 days of selection and (3) to agree at that
meeting or before upon procedures for discovery and as to the conduct of the
hearing which will result in the hearing being concluded within no more than 9
months after selection of the arbitrator(s) and in the award being rendered
within 60 days of the conclusion of the hearings, or of any post-hearing
briefing, which briefing will be completed by both sides with 20 days after the
conclusion of the hearings. In the event no such agreement is reached, the CPR
will select arbitrator(s), allowing appropriate strikes for reasons of conflict
or other cause and three peremptory challenges for each side. The arbitrator(s)
shall set a date for the hearing, commit to the rendering of the award within 60
days of the conclusion of the evidence at the hearing, or of any post-hearing
briefing (which briefing will be completed by both sides in no more than 20 days
after the conclusion of the hearings), and provide for discovery according to
these time limits, giving recognition to the understanding of the parties hereto
that they contemplate reasonable discovery, including document demands and
depositions, but that such discovery be limited so that the time limits
specified herein may be met without undue difficulty. In no event will the
arbitrator(s) allow either side to obtain more than a total of 40 hours of
deposition testimony from all

                                      29.
<PAGE>   30

witnesses, including both fact and expert witnesses. In the event multiple
hearing days are required, they will be scheduled consecutively to the greatest
extent possible.

               (d)    The arbitrator(s) shall render their award following the
substantive law of New Jersey. The arbitrator(s) shall render an opinion setting
forth findings of fact and conclusions of law with the reasons therefor stated.
A transcript of the evidence adduced at the hearing shall be made and shall,
upon request, be made available to either party.

               (e)    To the extent possible, the arbitration hearings and award
will be maintained in confidence.

               (f)    The United States District Court for the District of New
Jersey may enter judgment upon any award. In the event the panel's award exceeds
$5 million in monetary damages or includes or consists of equitable relief, then
the court shall vacate, modify or correct any award where the arbitrators'
findings of fact are clearly erroneous, and/or where the arbitrators'
conclusions of law are erroneous; in other words, it will undertake the same
review as if it were a federal appellate court reviewing a district court's
findings of fact and conclusions of law rendered after a bench trial. An award
for less than $5 million in damages and not including equitable relief may be
vacated, modified or corrected only upon the grounds specified in the Federal
Arbitration Act. The parties consent to the jurisdiction of the above-specified
Court for the enforcement of these provisions, the entry of judgment on any
award, and the vacatur, modification and correction of any award as above
specified. In the event such Court lacks jurisdiction, then any court having
jurisdiction of this matter may enter judgment upon any award and provide the
same relief, and undertake the same review, as specified herein.

               (g)    Each party has the right before or during the arbitration
to seek and obtain from the appropriate court provisional remedies such as
attachment, preliminary injunction, replevin, etc. to avoid irreparable harm,
maintain the status quo, or preserve the subject matter of the arbitration.

               (h)    EACH PARTY HERETO WAIVES ITS RIGHT TO TRIAL OF ANY ISSUE
BY JURY.

               (i)    EACH PARTY HERETO WAIVES ANY CLAIM TO PUNITIVE OR
EXEMPLARY DAMAGES FROM THE OTHER.

               (j)    EACH PARTY HERETO WAIVES ANY CLAIM OF INDIRECT, SPECIAL,
INCIDENTAL AND CONSEQUENTIAL DAMAGES FROM THE OTHER.

                                      30.
<PAGE>   31

                                   ARTICLE 15
                                  MISCELLANEOUS

        15.1   CONFIDENTIALITY; PRESS RELEASES.

               (a)    Ethicon and Genetronics will be exchanging information
relating to the Drug Delivery System at the inception of and from time to time
during the term of this Agreement. Any such information which is considered by
the disclosing party to be confidential will be identified in writing as
confidential information or, if disclosed orally or in another non-written
manner, shall be confirmed in writing as being confidential promptly after the
disclosure thereof. The party receiving such information will maintain the
information in confidence using the same standard of care it uses to maintain
its own information in confidence during the term of this Agreement and for a
period of five years thereafter. Such obligation of confidentiality shall not
apply to information which (i) is known to the receiving party prior to the
disclosure, (ii) is publicly known as of the date of the disclosure, (iii)
becomes publicly known after the date of disclosure through no fault of the
receiving party, (iv) is received from a Third Party who has no obligation of
confidentiality to the disclosing party, (v) is developed independently by the
receiving party, (vi) is required to be disclosed to comply with a court or
administrative subpoena or order, provided the receiving party first uses
reasonable effort to obtain an order preserving the confidentiality of the
confidential information and provided that the receiving party gives the other
party timely notice off the contemplated disclosure to provide the disclosing
party the opportunity to intervene to preserve the confidentiality of the
information, or (vii) is required to be disclosed under applicable laws, rules
or regulations, including, without limitation, the rules and regulations of the
Toronto Stock Exchange or other governmental bodies.

               (b)    Notwithstanding paragraph (a) above, Ethicon shall be
permitted to disclose to its wholesalers and other direct customers such
confidential information relating to the Drug Delivery System as Ethicon shall
reasonably determine to be necessary in order to effectively market and
distribute the Drug Delivery System provided that such entities are bound the
same confidentiality obligations that Ethicon has with respect to Genetronics
confidential information.

               (c)    No party to this Agreement shall originate any publicity,
news release or other public announcement, written or oral, whether relating to
this Agreement or the existence of any arrangement between the parties, without
the prior written consent of any other party named in such publicity, news
release or other public announcement, except where such publicity, news release
or other public announcement is required by law; provided that in such event,
the party issuing same shall still be required to consult with the other party
or parties named in such publicity, news release or public announcement a
reasonable time (being not less than 48 hours) prior to its release to allow the
named party or parties to comment on the use of its name and, after its release,
shall provide the named party or parties with a copy thereof. No prior approval
will be required for a press release substantially in the form attached hereto
as Exhibit G to be issued by Genetronics on or about the Effective Date.

                                      31.
<PAGE>   32

               (d)    Neither party shall use the name of the other for
advertising or promotional claims without the prior written consent of the other
party.

        15.2   INSURANCE. Genetronics agrees to procure and maintain in full
force and effect during the term of this Agreement and, with respect to the
manufacture and/or design of the Drug Delivery System by Genetronics, for so
long as the Drug Delivery System is manufactured by Genetronics or marketed by
either party, respectively, valid and collectible insurance policies in
connection with this Agreement, which policies shall provide for the type of
insurance and amount of coverage described in Exhibit F of the Supply Agreement.
Upon Ethicon's request, Genetronics shall provide to Ethicon a certificate of
coverage or other written evidence reasonably satisfactory to Ethicon of such
insurance coverage.

        15.3   SURVIVAL. Those provisions of this Agreement dealing with rights
and obligations upon and/or after termination of this Agreement shall survive
termination of this Agreement to the extent necessary to give effect to such
provisions.

        15.4   PENALTIES. If either party terminates this Agreement in
accordance with the terms herein, the terminating party shall owe no penalty or
indemnity to the terminated party on account of such termination.

        15.5   INDEPENDENT CONTRACTOR STATUS. Neither party shall have any
authority to obligate the other in any respect nor hold itself out as having any
such authority. All personnel of Genetronics shall be solely employees of
Genetronics and shall not represent themselves as employees of Ethicon, and all
personnel of Ethicon shall be solely employees of Ethicon and shall not
represent themselves as employees of Genetronics.

        15.6   BINDING EFFECT; BENEFITS; ASSIGNMENT.

               (a)    This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective permitted successors and
assigns. Nothing contained herein shall give to any other person any benefit or
any legal or equitable right, remedy or claim. Anything to the contrary herein
notwithstanding, Genetronics agrees that the right and obligations under this
Agreement of Ethicon may, from time to time, be exercised or performed, as the
case may be, in whole or in part by Affiliates of Ethicon.

               (b)    Genetronics shall be permitted to assign all or part of
this Agreement to any Affiliate of Genetronics upon written notice to Ethicon,
such assignment shall be subject to the assignee agreeing in writing to assume
the benefits and obligations of this Agreement. Anything contained herein to the
contrary notwithstanding, this Agreement shall not be assignable by Genetronics
without the prior written consent of Ethicon, such consent not to be
unreasonably withheld; provided; however, that if such assignment involves any
entity of the type referred to in Section 13.3(d), then Ethicon's refusal of
consent to such an assignment shall be deemed to have been reasonable.

                                      32.
<PAGE>   33

               (c)    Ethicon shall be permitted to assign all or part of this
Agreement to any Affiliate of Ethicon upon written notice to Genetronics, such
assignment shall be subject to the assignee agreeing in writing to assume the
benefits and obligations of this Agreement. Anything contained herein to the
contrary notwithstanding, this Agreement shall not be assignable by Ethicon
without the prior written consent of Genetronics, such consent not to be
unreasonably withheld.

        15.7   ENTIRE AGREEMENT; AMENDMENTS. Before signing this Agreement the
parties have had numerous conversation, including without limitation preliminary
discussions, formal negotiations and informal conversations at meals and social
occasions, and have generated correspondence and other writings, in which the
parties discussed the transaction which is the subject of this Agreement and
their aspirations for success. In such conversations and writings, individuals
representing the parties may have expressed their judgments and beliefs
concerning the intentions, capabilities and practices of the parties, and may
have forecasted future events. The parties recognize that such conversations and
writings often involve an effort by both sides to be positive and optimistic
about the prospects for the transactions. However, it is also recognized that
all business transactions contain an element of risk, as does the transaction
contemplated by this Agreement, and that it is normal business practice to limit
the legal obligations of contracting parties to only those promises and
representations which are essential to their transaction so as to provide
certainty as to their future rights and remedies. Accordingly, this Agreement is
intended to define the full extent of the legally enforceable undertakings of
the parties hereto, and no promise or representation, written or oral, which is
not set forth explicitly in this Agreement is intended by either party to be
legally binding. Each of the parties acknowledge that in deciding to enter into
this Agreement and to consummate the transaction contemplated hereby none of
them has relied upon any statements or representations, written or oral, other
than those explicitly set forth herein or therein. No subsequent alteration,
amendment, change or addition to this Agreement shall be binding upon the
parties hereto unless reduced to writing and signed by the respective authorized
officers of the parties.

        15.8   SEVERABILITY. In the event that any provision of this Agreement
would be held in any jurisdiction to be invalid, prohibited or unenforceable for
any reason, such provision, as to such jurisdiction, shall be ineffective,
without invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.
Notwithstanding the foregoing, if such provision could be more narrowly drawn so
as not to be invalid, prohibited or unenforceable in such jurisdiction, it
shall, as to such jurisdiction, be so narrowly drawn, without invalidating the
remaining provisions of this Agreement or affecting the validity or
enforceability of such provision in any other jurisdiction.

        15.9   REMEDIES. Unless otherwise expressly provided, all remedies
hereunder, are cumulative, are in addition to any other remedies provided for by
law and may, to the extent permitted by law, be exercised concurrently or
separately, and the exercise of any one remedy shall not be deemed to be an
election of such remedy or to preclude the exercise of any other remedy.

                                      33.
<PAGE>   34

        15.10  NOTICES. Any notice, request, consent or communication
(collectively, a "Notice") under this Agreement shall be effective if it is in
writing and (i) personally delivered, (ii) sent by certified or registered mail,
postage prepaid, return receipt requested, (iii) sent by an internationally
recognized overnight delivery service, with delivery confirmed, or (iv) telexed
or telecopied, with receipt confirmed, addressed as set forth in this Section or
to such address as shall be furnished by either party hereto to the other party
hereto. A Notice shall be deemed to have been given as of (i) the date when
personally delivered, (ii) seven (7) business days after being deposited with
the United States Postal Service, certified or registered mail, properly
addressed, return receipt requested, postage prepaid, (iii) two business days
after being delivered to said overnight delivery service properly addressed, or
(iv) confirmation of receipt of the telex or telecopy, as the case may be. All
Notices shall specifically state: (i) the provision (or provisions) of this
Agreement with respect to which such Notice is given, and (ii) the relevant time
period, if any, in which the party receiving the Notice must respond.

                      If to Genetronics:

                      Genetronics, Inc.
                      11199 Sorrento Valley Road
                      San Diego, CA 92121-1334
                      Attention: Vice President, Corporate Development
                      Fax: (619) 410-3395

                      with a copy to:

                      Cooley Godward LLP:
                      4365 Executive Drive, Suite 1100
                      San Diego, CA 92121-2128
                      Attention: M. Wainwright Fishburn, Esq.
                      Fax: No. (619) 453-3555;

                      If to Ethicon:

                      Ethicon, Inc.
                      Route 22 West
                      Somerset, New Jersey 08876
                      Attention: Vice President, New business Development
                      Fax: (908) 218-3492

                      with a copy to:

                      Office of General Counsel
                      Johnson & Johnson
                      One Johnson & Johnson
                      Plaza New Brunswick, New Jersey 08933
                      Fax: 1-908-524-2788;

                                      34.
<PAGE>   35

        15.11  WAIVERS. The failure of either party to assert a right hereunder
or to insist upon compliance with any term or condition of this Agreement shall
not constitute a waiver of that right or excuse a similar subsequent failure to
perform any such term or condition by the other party.

        15.12  COUNTERPARTS. This Agreement may be executed in any number of
counterparts, and execution by each of the parties of any one of such
counterparts will constitute due execution of this Agreement. Each such
counterpart hereof shall be deemed to be an original instrument, and all such
counterparts together shall constitute but one agreement.

        15.13  HEADINGS. The article and section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

        15.14  CONSTRUCTION. The parties hereto agree that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not be applied in the construction or interpretation of
this Agreement.

        15.15  PATENT MARKINGS. To the extent it is commercially reasonable to
do so, Ethicon agrees (a) to mark the Drug Delivery System sold in the United
States with all applicable United States patent numbers and/or trademarks, and
(b) to mark the Drug Delivery System shipped to or sold in other countries in
such a manner as to conform with the patent and trademark laws and practices of
the country of manufacture or sale.

                                      35.
<PAGE>   36

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their duly authorized officers as of the date first
above written.

                                    GENETRONICS BIOMEDICAL, INC.

                                    By:  /s/  Lois J. Crandell
                                        ----------------------------------------
                                    Name: Lois J. Crandell
                                    Title: President and Chief Executive Officer

                                    By:  /s/  Martin Nash
                                    Name: Martin Nash
                                    Title: Senior Vice President

                                    GENETRONICS, INC.

                                    By:  /s/  Lois J. Crandell
                                        ----------------------------------------
                                    Name: Lois J. Crandell
                                    Title: President and Chief Executive Officer

                                    By:  /s/  Martin Nash
                                        ----------------------------------------
                                    Name: Martin Nash
                                    Title: Senior Vice President

                                    ETHICON, INC.

                                    By:  /s/  Howard Zauberman
                                        ----------------------------------------
                                    Name: Howard Zauberman
                                    Title: Vice President, Growth Technologies/
                                    New Business Development

                                      36.
<PAGE>   37

                                    EXHIBIT A

                            GENETRONICS PATENT RIGHTS

Genetronics, Inc.                                                         Page 1

                           Electroporation Therapy of
                                     Cancer

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
                                 Attorney                 Serial/Patent                       Date Issued
        Patent Title             Docket No.     Country       Number           Status          or Filed        Key Claims
-----------------------------------------------------------------------------------------------------------------------------------
<S>                            <C>              <C>       <C>            <C>                  <C>          <C>
Electroporation System with        15-27          US        5,439,440          Issued           8/8/95     Apparatus and method for
Voltage Control Feedback for                                                                               laparascopic EPT with
Clinical Applications                                                                                      needle array and caliper
-----------------------------------------------------------------------------------------------------------------------------------
[...***...]
-----------------------------------------------------------------------------------------------------------------------------------
Injection and                      15-21          US        5,273,525          Issued          12/28/93    Needle apparatus and
Electroporation Apparatus                                                                                  method
for Drug and Gene Delivery
-----------------------------------------------------------------------------------------------------------------------------------
Needle Electrodes for              15-44          US        5,702,359    Issued CIP of 15-27   12/30/97    Apparatus and method for
Electroporation Mediated                                                                                   variety of needle arrays
Delivery of Drugs and Genes
-----------------------------------------------------------------------------------------------------------------------------------
[...***...]
-----------------------------------------------------------------------------------------------------------------------------------
Electroporetic Gene and Drug   15-69 + 15-104   Europe     EP# 788 392     Issued 5/27/98       6/27/95    Apparatus and method for
Delivery by induced Electric     (Ireland)                                                                 contact free
Fields                                                                                                     electroporation of blood
                                                                                                           in vivo
-----------------------------------------------------------------------------------------------------------------------------------
[...***...]
-----------------------------------------------------------------------------------------------------------------------------------
Applicator for                     15-20          US        5,318,514     Issued Parent of      6/7/94     Apparatus for
Electroporation of Drugs and                                                31, 35 and 46                  electroporation through
Genes into Surface Cells                                                                                   the skin, needles and
                                                                                                           meander electrodes
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

                                      37.      *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   38

                                    EXHIBIT B

                                SUPPLY AGREEMENT

                     (SEE EXHIBIT 10.18 FILED AS AN EXHIBIT
                   TO THE REGISTRANT'S S-1 ON OCTOBER 5, 1999)

                                      38.
<PAGE>   39

                                    EXHIBIT C

                            STOCK PURCHASE AGREEMENT

                     (SEE EXHIBIT 10.16 FILED AS AN EXHIBIT
                   TO THE REGISTRANT'S S-1 ON OCTOBER 5, 1999)

                                      39.
<PAGE>   40

                                    EXHIBIT D

                 CLINICAL STUDIES REFERRED TO IN SECTION 6.2(D)

  A PHASE II TRIAL OF ELECTROPORATION THERAPY (EPT) USING THE GENETRONICS, INC.
  MEDPULSER(TM) SYSTEM AND INTRATUMOR BLEOMYCIN IN PATIENTS WITH SQUAMOUS CELL
  CARCINOMA OF THE HEAD AND NECK WHO HAVE FAILED STANDARD THERAPY AND WHO HAVE
            DISEASE PROGRESSION FOLLOWING INTRATUMOR BLEOMYCIN ALONE

                            PROTOCOL NUMBER EPT-97-01

                                (IND NO. 54,146)

Genetronics, Inc.                                               November 5, 1997
11199 Sorrento Valley Road
San Diego, CA 92121-1334
Tel: (619) 597-6006
Fax: (619) 597-0119

I have received and read the Investigator's Brochure for Electroporation Therapy
(EPT) for the Delivery of Bleomycin Sulfate dated September 19, 1997, and the
Protocol dated November 5, 1997, and the Statement of Investigator Obligations.
I, the Principal Investigator of this trial, approve of, and will comply with,
all conditions, instructions and restrictions described in this protocol. I
affirm that my subordinates in this trial will also comply strictly with this
protocol. I am aware that my adherence to the above protocol is mandatory and
that any changes in the protocol or consent form, except those necessary to
eliminate apparent immediate hazards to human subjects, must first be approved
by Genetronics, Inc. and the Institutional Review Board. Failure to adhere to
these stipulations may constitute a breach of federal regulations and may result
in termination of the trial.

-----------------------------------               ----------------------------
Principal Investigator Name                                   Date
Site Name
City, State
Country

-----------------------------------               ----------------------------
Melody Anderson, M.S.                                         Date
Director, Clinical Programs
Genetronics, Inc.

                                  CONFIDENTIAL

Information in this protocol is confidential and may not be disclosed to parties
other than trial personnel and the Institutional Review Board directly involved
with this trial. All parties must understand that confidential information may
not be disseminated further without prior written permission from Genetronics,
Inc.

                                      40.
<PAGE>   41

  A PHASE II TRIAL OF ELECTROPORATION THERAPY (EPT) USING THE GENETRONICS, INC.
  MEDPULSER(TM) SYSTEM AND INTRATUMOR BLEOMYCIN IN PATIENTS WITH SQUAMOUS CELL
         CARCINOMA OF THE HEAD AND NECK WHO HAVE FAILED STANDARD THERAPY

                            PROTOCOL NUMBER EPT-97-02

                                (IND NO. 54,146)

Genetronics, Inc.                                               November 5, 1997
11199 Sorrento Valley Road
San Diego, CA 92121-1334
Tel:  (619) 597-6006
Fax:  (619) 597-0119

I have received and read the Investigator's Brochure for Electroporation Therapy
(EPT) for the Delivery of Bleomycin Sulfate dated September 19, 1997, and the
Protocol dated November 5, 1997, and the Statement of Investigator Obligations.
I, the Principal Investigator of this trial, approve of, and will comply with,
all conditions, instructions and restrictions described in this protocol. I am
aware that my adherence to the above protocol is mandatory and that any changes
in the protocol or consent form, except those necessary to eliminate apparent
immediate hazards to human subjects, must first be approved by Genetronics, Inc.
and the Ethics Committee. Failure to adhere to these stipulations may constitute
a breach of federal regulations and may result in termination of the trial.

-----------------------------------               ----------------------------
Principal Investigator Name                                   Date
Site Name
City, State
Country

-----------------------------------               ----------------------------
Melody Anderson, M.S.                                         Date
Director, Clinical Programs
Genetronics, Inc.

                                  CONFIDENTIAL

Information in this protocol is confidential and may not be disclosed to parties
other than trial personnel and the Ethics Committee directly involved with this
trial. All parties must understand that confidential information may not be
disseminated further without prior written permission from Genetronics, Inc.

                                      41.
<PAGE>   42

                     INVESTIGATIONAL NEW DRUG (IND) PROTOCOL

          AN OPEN-LABEL STUDY OF ELECTROPORATION THERAPY (EPT) FOR THE
             TREATMENT OF NONRESECTABLE PANCREATIC CANCER USING THE
              GENETRONICS, INC. MEDPULSER(TM) SYSTEM AND BLEOMYCIN

                           PROTOCOL NUMBER: EPT-97-03

                                    PROMOTER:

                                Genetronics, Inc.
                           11199 Sorrento Valley Road
                        San Diego, California 92121-1334

Date Prepared: May 26, 1997

                                      42.
<PAGE>   43

                     INVESTIGATIONAL NEW DRUG (IND) PROTOCOL

          AN OPEN-LABEL STUDY OF ELECTROPORATION THERAPY (EPT) FOR THE
            TREATMENT OF NONRESECTABLE METASTATIC CANCER IN THE LIVER
         USING THE GENETRONICS, INC. MEDPULSER(TM) SYSTEM AND BLEOMYCIN

                           PROTOCOL NUMBER: EPT-97-04

                                    PROMOTER:

                                Genetronics, Inc.
                           11199 Sorrento Valley Road
                        San Diego, California 92121-1334

Date Prepared: May 22, 1997

                                      43.
<PAGE>   44

            AN OPEN LABEL LESION CONTROLLED STUDY OF ELECTROPORATION
          THERAPY (EPT) FOR THE TREATMENT OF CUTANEOUS KAPOSI'S SARCOMA
         USING THE GENETRONICS, INC. MEDPULSER(TM) SYSTEM AND BLEOMYCIN

                           PROTOCOL NUMBER: EPT-97-05

                                    SPONSOR:

                                Genetronics, Inc.
                           11199 Sorrento Valley Road
                           San Diego, California 92121

Date Prepared: July 3, 1997

                                      44.
<PAGE>   45

            AN OPEN LABEL LESION CONTROLLED STUDY OF ELECTROPORATION
             THERAPY (EPT) FOR THE TREATMENT OF CUTANEOUS METASTATIC
        MELANOMA THE GENETRONICS, INC. MEDPULSER(TM) SYSTEM AND BLEOMYCIN

                           PROTOCOL NUMBER: EPT-97-06

                                    SPONSOR:

                                Genetronics, Inc.
                           11199 Sorrento Valley Road
                           San Diego, California 92121

Date Prepared: July 1, 1997

                                      45.
<PAGE>   46

                     INVESTIGATIONAL NEW DRUG (IND) PROTOCOL

          AN OPEN-LABEL STUDY OF ELECTROPORATION THERAPY (EPT) FOR THE
           TREATMENT OF HEAD & NECK TUMORS USING THE GENETRONICS, INC.
                       MEDPULSER(TM) SYSTEM AND BLEOMYCIN

                           PROTOCOL NUMBER: EPT-97-07

                                  SPONSORED BY:

                                Genetronics, Inc.
                           11199 Sorrento Valley Road
                        San Diego, California 92121-1334

Date Prepared: October 16, 1997

                                      46.
<PAGE>   47

                                    EXHIBIT E

                      COUNTRIES REFERRED TO IN SECTION 12.5

                            UNITED STATES OF AMERICA

                            TIER 1 EUROPEAN COUNTRIES

                                     MEXICO

                                      JAPAN

                                      INDIA

                                      CHINA

                                     RUSSIA

                                      47.
<PAGE>   48

                                    EXHIBIT F

  CONCEPT DRAWING OF THE PROPOSED DEEP SEATED PROBE REFERRED TO IN SECTION 6.2

                                      48.
<PAGE>   49

                                    EXHIBIT G

                    PRESS RELEASE REFERRED TO IN SECTION 15.1

                                      49.<PAGE>   1

                                                                   EXHIBIT 10.18

                                            ***TEXT OMITTED AND FILED SEPARATELY
                                                CONFIDENTIAL TREATMENT REQUESTED
                                            UNDER 17 C.F.R. SS.SS. 200.80(B)(4),
                                                              200.83 AND 230.406

                                   SUPPLY AGREEMENT

        THIS SUPPLY AGREEMENT (the "Agreement") is made as of October 2, 1998,
by and among ETHICON, INC., a New Jersey Corporation with its principal office
at Route 22, Somerville, New Jersey 08876-0151 ("Ethicon"), GENETRONICS
BIOMEDICAL, LTD., a corporation organized under the laws of British Columbia, a
province of Canada, and Genetronics, Inc., a wholly-owned subsidiary of
Genetronics Biomedical, Ltd. and a California Corporation with its principal
office at 11199 Sorrento Valley Road, San Diego, CA 92121 (both jointly and
severally hereinafter referred to as "Genetronics").

                                    RECITALS

        WHEREAS, pursuant to an agreement dated the date hereof (the "License
Agreement"), Genetronics has licensed to Ethicon certain rights to a drug
delivery system in the Territory for use in the Field.

        WHEREAS, this Supply Agreement is being entered into in connection with
the License Agreement to set out the terms and conditions under which
Genetronics will supply to Ethicon the components of the drug delivery system.

        NOW THEREFORE, in consideration of the mutual covenants and
consideration set forth herein, and contingent upon the simultaneous execution
of the License Agreement, the parties hereto agree as follows:

                                    AGREEMENT

                                    ARTICLE I
                                   DEFINITIONS

        SECTION 1.1. As used in this Agreement, the following defined terms
shall have the meanings set out in this Article 1. Capitalized terms used but
not otherwise defined herein shall have the meanings given such terms in the
License Agreement.

        (a)    "AFFILIATE" shall mean, in relation to either party hereto, (a)
any entity in which the relevant party directly or indirectly holds more than
50% of the voting stock or power, (b) any entity ("Holding Entity") which holds
directly or indirectly more than 50% of the voting stock or power of the
relevant party, (c) any other entity in which more than 50% of the voting stock
or power is directly or indirectly held by any Holding Entity of the relevant
party or (d) any entity in which the relevant party directly or indirectly holds
less than 50% of the voting stock or power but has management control of such
entity in that it

<PAGE>   2

has the ability to appoint and remove the majority of the Board of Directors (or
other governing body) of such party.

        (b)    "BANKRUPTCY EVENT" shall mean the person or entity in question
becomes insolvent, or voluntary or involuntary proceedings by or against such
person or entity are instituted in bankruptcy or under any insolvency law, or a
receiver or custodian is appointed for such person or entity, or proceedings are
instituted by or against such person or entity for corporate reorganization or
the dissolution of such person or entity, which proceedings, if involuntary,
shall not have been dismissed within 60 days after the date of filing, or such
person or entity makes an assignment for the benefit of its creditors, or
substantially all of the assets of such person or entity are seized or attached
and not released within 60 days thereafter.

        (c)    "CHANGE IN CONTROL" shall mean (i) the liquidation or dissolution
of Genetronics or the sale or other transfer by Genetronics (excluding transfers
to subsidiaries) of all or substantially all of its assets; or (ii) the
occurrence of a tender offer, stock purchase, other stock acquisition, merger,
consolidation, recapitalization, reverse split, sale or transfer of assets or
other transaction, as a result of which any person, entity or group (a) becomes
the beneficial owner, directly or indirectly, of securities of Genetronics
representing more than 50% of the ordinary shares of Genetronics or representing
more than 50% of the combined voting power with respect to the election of
directors (or members of any other governing body) of Genetronics' then
outstanding securities, (b) obtains the ability to appoint a majority of the
Board of Directors (or other governing body) of Genetronics, or obtains the
ability to direct the operations or management of Genetronics or any successor
to Genetronics business; provided, however, that Change in Control shall not
include the issuance by Genetronics of equity to the public through a public
offering or offerings.

        (d)    "DRUG DELIVERY SYSTEM" shall have the meaning given in the
License Agreement.

        (e)    "EVENT OF DEFAULT" shall have the meaning given in Section 11.4
hereof.

        (f)    "EFFECTIVE DATE" shall have the meaning ascribed in Section 3.1
hereof.

        (g)    "ESCROW ACCOUNT" AND "ESCROW AGENT" shall have the meaning
ascribed in Section 10 hereof.

        (h)    "FDA" shall mean the United States Food and Drug Administration.

        (i)    "FIRST COMMERCIAL SALE" shall mean the date of the first sale of
the Drug Delivery System to an end user of such system but not with respect to
clinical trials or market development activities. Sale to an Affiliate shall not
constitute the First Commercial Sale unless the Affiliate is the end user of the
Drug Delivery System.

        (j)    "FORCE MAJEURE EVENT" OR "FORCE MAJEURE NOTICE" shall have the
meaning ascribed in Section 11.6 hereof.

                                       2
<PAGE>   3

        (k)    "HOLDING ENTITY" shall have the meaning ascribed in Section
1.1(a) hereof.

        (l)    "MANUFACTURING PLAN" shall have the meaning ascribed in Section
3.1 hereof.

        (m)    "MARKET REQUIREMENTS" shall mean the Market Requirements
stipulated by Ethicon for the Products in accordance with Section 4.1 hereof and
as more particularly described in Exhibit A hereto.

        (n)    "PROCESS & PRODUCT DESCRIPTION" shall mean, with respect to each
Product, the design, all regulatory filings with the FDA or any Regulatory
Agency, the regular laboratory procedures, good laboratory procedures, or good
manufacturing procedures (including, but not limited to, FDA good manufacturing
practices or the equivalent practices of any Regulatory Agency, EN 46000 series
procedures and Ethicon (or its parent company) guidelines), as the case may be,
as well as such other know-how, technical specifications, instructions,
processes and other intellectual property and information Genetronics shall
possess and as shall be necessary in order to allow Ethicon to own the design
and the regulatory filings, and to manufacture and/or have manufactured for it
the Product. The source code for any Software shall also be included in such
material. Such Process & Product Description shall be sufficiently clear and
detailed that it can be readily followed and carried out by a skilled person to
make the Drug Delivery System in the manner Genetronics considers most
efficient.

        (o)    "PRODUCTS" shall mean the Drug Delivery System meeting the
Specifications set forth in Exhibit A hereto.

        (p)    "PURCHASE PRICE" shall have the meaning as given in Section 5.1
hereof.

        (q)    "REGULATORY AGENCY" shall mean the regulatory agency or notified
body in a country which performs the same or equivalent function as the FDA in
the United States. Any reference to a rule or requirement of the FDA herein
shall refer, if the circumstances make it applicable, to the equivalent rule or
requirement of any Regulatory Agency.

        (r)    "SECONDARY FACILITIES" shall have the meaning ascribed in Section
3.1(c) hereof.

        (s)    "SOFTWARE" shall have the meaning given in the License Agreement.

        (t)    "SPECIFICATIONS" shall have the meaning given in Section 4.1
hereof and as more particularly described in Exhibit A hereto.

        (u)    "TRADEMARKS" shall mean: (i) the trademarks, including all
trademark registrations and applications, listed on Exhibit B hereto, and (ii)
in countries in which such trademarks are not applied for or registered, any
rights of Genetronics with respect to such trademarks under applicable law.

        (v)    "YEAR 2000 COMPLIANT" shall mean:

                                       3
<PAGE>   4

(i)     each Product performs in a consistent manner and functions without
interruptions regardless of the date in time on which such Product is delivered,
used and/or further distributed, whether before, on or after January 1, 2000 and
whether or not the dates are affected by leap years;

(ii)    each Product, if computerized, accepts, calculates, compares, sorts,
extracts, sequences and otherwise processes date inputs and date values, and
returns and displays date values and performs, in a consistent manner regardless
of the dates used, whether before, on or after January 1, 2000;

(iii)   each Product, if computerized, accepts and responds to two-digit
year-date input in a manner that resolves any ambiguities as to the century in a
defined, predetermined and appropriate manner;

(iv)    each Product, if computerized, stores and displays date information in
ways that are unambiguous as to the determination of the century.

                                    ARTICLE 2
                                  SUPPLY RIGHTS

        SECTION 2.1. GENETRONICS shall supply the Products to Ethicon in
accordance with and subject to the terms and conditions of this Agreement. For
purposes of clarification only, Genetronics shall only supply the Products to
Ethicon in the Territory for use in the Field.

                                    ARTICLE 3
                      EFFECTIVE DATE: PRODUCTION FACILITIES

        SECTION 3.1. EFFECTIVE DATE.

        (a)    Although the parties have entered into this Agreement
simultaneously with the License Agreement, the parties acknowledge that, except
as otherwise provided herein, the obligations of the parties under this
Agreement shall only become effective (hereinafter referred to as the "Effective
Date") upon acceptance by Ethicon of the Manufacturing Plan (as defined below).

        (b)    Within 60 days after the execution and delivery of this
Agreement, Genetronics shall submit to Ethicon its one year manufacturing
capability plan (the "Manufacturing Plan") for completing implementation of
procedures and facilities for producing the Products which satisfy both the
volume, specifications and other supply requirements of this Agreement. Ethicon
shall be reasonably available for advice and consultation during Genetronics'
development of the Manufacturing Plan.

                                       4
<PAGE>   5

        (c)    The Manufacturing Plan shall include commercially appropriate
plans (including scheduled availability thereof) which provide for alternative
manufacturing facilities (the "Secondary Facilities") in the event Genetronics'
primary manufacturing facility is incapable (either by reason of force majeure
or otherwise) of supplying the Products as anticipated under this Agreement.
Ethicon shall promptly review the Manufacturing Plan and discuss with
Genetronics changes, if any, required to meet such provisions. Notwithstanding
Ethicon's review of the Manufacturing Plan, it is expressly acknowledged that
Genetronics shall be solely responsible for complying with its obligations under
this Agreement.

        SECTION 3.2. PRO-COMMERCIALIZATION AUDIT. Ethicon shall have the right,
upon reasonable advance notice and during regular business hours, to audit or
have .audited (by a third party bound by obligations of confidentiality at least
as stringent as those set forth herein) the manufacturing facilities (including,
if applicable, the Secondary Facilities) which Genetronics is going to use to
manufacture the Products (including those facilities of its sub-contractors) to
confirm that such facilities are adequate to meet the requirements of (i) the
Manufacturing Plan, (ii) prevailing FDA, Regulatory Agency and ISO 9001 and EN
46001 requirements (or, if appropriate, ISO 9002 and EN 46002 requirements),
(iii) Ethicon external manufacturing policies (as set out in Exhibit D hereto),
and (iv) the requirements of this Agreement. Such audits may be conducted by
Ethicon as required before initiation of Genetronics production qualification
run and/or before Genetronics shipment of its first commercially saleable
Product. If either of such audits reveal that the manufacturing facilities
either do not satisfy the requirements of the Manufacturing Plan or are not
adequate to meet the requirements of this Agreement, in each case, in all
material respects, then Ethicon shall provide written notice of such fact, which
notice shall contain in reasonable detail the deficiencies found in the
manufacturing facilities and, if practicable, those steps Genetronics should
undertake in order to remedy such deficiencies. Genetronics shall use
commercially reasonable efforts to remedy such deficiencies within 60 days of
receipt of the notification thereof. If such deficiencies are not remedied by
Genetronics after 30 days, then Genetronics shall instruct the Escrow Agent to
permit Ethicon to have access to the Escrow Account to enable Ethicon to begin
contingency planning for alternate sourcing of the Product. If the deficiencies
are not remedied by Genetronics within the 60 day period, such failure shall be
considered a "Failure to Supply" for purposes of Article 7 hereof. If the
deficiencies are remedied by Genetronics within the 60 day period, Ethicon shall
return the contents of the Escrow Account to the Escrow Agent.

        SECTION 3.3. POST-COMMERCIALIZATION INSPECTION AND AUDIT. Ethicon shall
have the right, upon reasonable advance notice and during regular business
hours, to inspect and audit the facilities being used by Genetronics for
production of the Products (including those of any sub-contractor used by
Genetronics) to assure compliance by Genetronics with applicable rules and
regulations, FDA Good Manufacturing Practices, ISO 9001 and EN 46001
requirements (or, if appropriate, ISO 9002 and EN 46002 requirements), Ethicon
external manufacturing procedures (as set forth on Exhibit D hereto), and with
the other provisions of this Agreement; provided, however, that two

                                       5
<PAGE>   6

years after the First Commercial Sale, such audits shall be limited to no more
than twice per year. Such inspection and audit shall be conducted in a manner so
as to minimize disruption of the business operations of Genetronics. If an audit
reveals that the facilities either do not satisfy the requirements of the
Manufacturing Plan or are not adequate to meet the requirements of this
Agreement, in each case, in all material respects, then Ethicon shall provide
written notice of such fact, which notice shall contain in reasonable detail the
deficiencies found in the manufacturing facilities and, if practicable, those
steps Genetronics should undertake in order to remedy such deficiencies.
Genetronics shall use commercially reasonable efforts to remedy such
deficiencies within 30 days of receipt of the notification thereof. If such
deficiencies are not remedied by Genetronics; after 14 days, then Genetronics
shall instruct the Escrow Agent to permit Ethicon to have access to the Escrow
Account to enable Ethicon to begin contingency planning for alternate sourcing
of the Product. If the deficiencies are not remedied by Genetronics; within the
30 day period, such failure shall be considered a "Failure to Supply" for
purposes of Article 7 hereof. If the deficiencies are remedied by Genetronics
within the 30 day period, Ethicon shall return the contents of the Escrow
Account to the Escrow Agent.

                                    ARTICLE 4
                                 SPECIFICATIONS

        SECTION 4.1. Prior to the placement of the first order for the Products,
Ethicon shall specify the market requirements ("Market Requirements") for launch
of the Products. Genetronics shall then submit to Ethicon specifications for the
Products. If accepted by Ethicon, such specifications shall become a part of
this Agreement and be deemed attached as part of Exhibit A hereof
("Specifications").

        SECTION 4.2. Specifications for any improvements to the Product shall be
agreed to by Ethicon no less than 30 days prior to the placement of the first
order for each such improved Product. Such Specifications shall become part of
this Agreement and be deemed attached as part of Exhibit A hereof.

        SECTION 4.3. All Products supplied to Ethicon hereunder shall be
supplied in finished form. Products shall be supplied in packaging which is
suitable for delivery to the ultimate end-user of the Products. The packaging
requirements shall be specified in the Specifications.

        SECTION 4.4. No changes to the Specifications or to the Products shall
be made by Genetronics without the prior written agreement of Ethicon. In
addition, any changes to the Product, the Specifications or the manufacturing
process which may require the submission of any amendment, filing or other
documentation with any regulatory authority shall be identified, reviewed and
approved by Ethicon through a documented change control system. Ethicon shall
provide a written response to Genetronics of any such proposed changes within 30
days after receipt.

                                       6
<PAGE>   7

                                    ARTICLE 5
                            ORDERS, PRICES AND TERMS

        SECTION 5.1. PURCHASE PRICE. The purchase price (the "Purchase Price")
for each Product purchased from Genetronics shall be as set out on Exhibit C;
provided, however the initial Purchase Price for the Generator will remain in
effect for one year from the date of First Commercial Sale.

        SECTION 5.2. SHIPPING TERMS. All shipments of Products shall be FOB
Genetronics' manufacturing facility, provided that said facility is located in
the continental United States, and shall be accompanied by a packing slip which
describes the Products and states the purchase order number. To the extent of
any conflict or inconsistency between this Agreement and any purchase order,
purchase order release, confirmation, acceptance or any similar document, the
terms of this Agreement shall govern.

        SECTION 5.3. FORECASTS AND PURCHASE ORDERS.

        (a)    During the term of this Agreement, Ethicon shall provide to
Genetronics; no later than the first day of each month a non-binding rolling 12
month forecast reflecting Ethicon's monthly requirements for Product(s) for that
period. The forecast will be assumed to be mutually agreeable unless Genetronics
notifies Ethicon within 10 business days of receipt of said forecast in which
case the parties agree to discuss an acceptable alternate forecast. In addition,
Ethicon shall provide an initial guidance forecast ("Initial Forecast") 60 days
prior to the estimated date of First Commercial Sale of each new Product. Such
forecast shall be updated prior to such estimated date of First Commercial Sale.

        (b)    Ethicon shall place binding orders for Products by written or
electronic purchase order (or by any other means agreed to by the parties) to
Seller, which shall be placed at least 60 days prior to the desired date of
delivery. Genetronics shall be obligated to supply no less than 90% of the
Products ordered pursuant to this Agreement to the extent the purchase orders
are, collectively, no greater than 120% of the monthly forecast provided
pursuant to Section 5.3(a) above no less than 90 days prior to delivery of such
purchase order. Ethicon shall at all times be obligated to purchase the quantity
of the Products requested in such purchase orders.

        SECTION 5.4. SHORT-SHIPMENTS. Ethicon shall notify Genetronics of any
short shipment claims within 30 days of receipt of a shipment of Products.

        SECTION 5.5. INVENTORY. Genetronics agrees to work with Ethicon to
maintain the minimum amount of inventory needed to satisfy customer service
requirements. To that end, Genetronics will disclose to Ethicon the initial
production cycle time and utilize commercially reasonable efforts to work with
Ethicon on a program to reduce the cycle time to the most reasonably possible
minimum level. Ethicon shall be responsible for

                                       7
<PAGE>   8

the cost of raw material components sufficient to satisfy the obligations of the
current open Purchase Orders, plus an additional four weeks as dictated by the
current Product forecast. Any purchase of material made and expenses incurred in
excess of these amounts is done at Genetronics own risk. Subject to the prior
sentence, unique materials requiring special consideration will be discussed on
a case by case basis and appropriate purchasing activities negotiated between
the parties. Neither party shall be bound with respect to arrangements for any
such materials in the absence of a definitive written agreement with respect to
such matters.

        SECTION 5.6. PRODUCT DEFECTS.

        (a)    Delivery of any Product by Genetronics to Ethicon shall
constitute a certification by Genetronics that the Product conforms to the
Specifications. Ethicon shall have 90 days after receipt of a shipment of
Products to determine if the Product conforms to the Specifications and to
accept or reject any of such Products which fail to conform to the
Specifications. Any claims for failure to so conform ("Claims") shall be made by
Ethicon in writing to Genetronics, indicating the nonconforming characteristics
of the Product.

        (b)    If Genetronics; agrees with such Claim, then as promptly as
possible after the submission of a Claim by Ethicon, Genetronics shall provide
Ethicon with a replacement Product(s). Genetronics shall pay for all shipping
costs of returning or destroying Products that are the subject of such accepted
Claims. Genetronics shall bear the risk of loss for such Products, beginning at
such time as they are taken at Ethicon's premises for return delivery.

        (c)    If Genetronics does not agree with such Claim, then the parties
agree to submit the Products in question to an independent party which has the
capability of testing the Products to determine whether or not they comply with
the Specifications. In the event the parties cannot agree upon such independent
party, or in the event it is not possible to acquire the services of such an
independent party, then such dispute shall be resolved pursuant to Article 12.

        SECTION 5.7. CUSTOMER WARRANTY & SERVICE.

        (a)    Genetronics shall warrant the Products to be free from defects in
workmanship or material for 12 months from the date of commercial sale to
Ethicon's customer; provided, however, that with respect to the Generator such
warranty shall be for the greater of 10,000 cycles (as tracked by the Generator)
or 12 months from the date of sale to Ethicon's customer. The Genetronics'
warranty provided for under this Section 5.7(a) shall not apply to any Product
which has been used with unapproved software or hardware, or which has been
customized, modified, damaged, misused or improperly stored, installed or
repaired.

        (b)    Servicing of Products whether within the manufacturers warranty
period or not shall be managed by Ethicon through designated service centers.
Genetronics agrees

                                       8
<PAGE>   9

to provide appropriate training, documentation and recommended spare parts lists
and sources, for the purposes of establishing Ethicon designated service centers
for the Products and Ethicon agrees to pay Genetronic's reasonable expenses of
doing so. Products will be returned to the service center at the direction of
the Ethicon representatives. Products in need of service that are within the
manufacturers warranty period will be repaired and costs associated with these
repairs (including transportation to and from the customer) will be charged back
to Genetronics. Genetronics agrees to fund the cost of a reasonable number of
Products as loaner pool inventory at the respective Ethicon service centers for
Products in need of repair or service that are within the manufacturers warranty
period.

                                    ARTICLE 6
                   PACKAGING, PROMOTIONAL MATERIAL, TRADEMARKS

        SECTION 6.1. PACKAGING. Ethicon's preliminary packaging and labeling
requirements for the Products are set out on Exhibit A, and shall be deemed to
be part of the Specifications for each particular Product. In addition, from
time to time, Ethicon may submit changes to such packaging and labeling
specifications should Ethicon determine such changes are necessary or desirable.
Any packaging and labeling requirements must be commercially reasonable in light
of Ethicon's then-existing packaging practices.

        SECTION 6.2. PROMOTIONAL MATERIAL. Genetronics acknowledges and agrees
that pursuant to the License Agreement Ethicon has licensed exclusive rights to
the trademarks, copyrights, plans, ideas, names, slogans, artwork and all other
intellectual property that appear on or are otherwise used by Ethicon in
connection with the distribution, marketing or sale of the Drug Delivery System
in the Territory for use in the Field. All trademarks used by Ethicon and/or its
Affiliates in connection with the Products shall be chosen by Ethicon and/or its
Affiliates in their sole discretion. Ethicon at its cost shall be solely
responsible for producing promotional copy and material with respect to the
Products in the Territory for use in the Field and that it shall dot be
necessary for Genetronics' prior review of such promotional copy or material.

        SECTION 6.3. TRADEMARKS. Notwithstanding the foregoing, all uses by
Ethicon of Genetronics' name, or any Trademark, service mark or tradename (or
any mark or name closely resembling the same), now or hereafter owned or
licensed by Genetronics or any of its Affiliates shall be subject to the prior
written consent of Genetronics. Ethicon is not authorized to use Genetronics'
name or any such trademark, service mark or tradename in connection with any
aspect of its business, other than in connection with the sales, marketing,
promotion and distribution of the Drug Delivery System in accordance with the
terms of this Agreement and the License Agreement. Ethicon (a) shall not use any
trademark, service mark or trade name of Genetronics as part of its name, and
(b) shall not do or permit any act to be done at any time which may in any way
impair the! rights of Genetronics in any such trademark, service mark or trade
name. All uses of any trademark, service mark or trade name of Genetronics shall
inure

                                       9
<PAGE>   10

to the benefit of Genetronics-. Ethicon shall not adopt, use or attempt to
register any trademark, service mark or trade name which is confusingly similar
to any trademark, service mark or trade name of Genetronics.

                                    ARTICLE 7
                           LICENSE: FAILURE TO SUPPLY

        SECTION 7.1 LICENSE. Upon a Failure to Supply (as defined below in
Section 7.2), Genetronics hereby grants to Ethicon a fully paid up exclusive
license, with the right to grant sublicenses to Third Parties, under the
Genetronics Technology to develop, use, sell, make and have made the Drug
Delivery System in the Territory for use in the Field and to use the Software
and Trademarks in connection therewith; it being understood that the license
granted hereunder shall only be effective upon the occurrence of a Failure to
Supply. The parties agree that under the license in the Trademarks granted
herein, to protect the goodwill in the Trademarks, Ethicon shall submit to
Genetronics, for its written approval, specimens of labels, advertising, and
other materials bearing the Trademarks. Genetronics shall communicate its
approval or disapproval of Ethicon's use of the Trademarks within 10 days
following receipt of such specimens. Failure of Genetronics to respond within
such 10 day period shall constitute approval of such use. Genetronics' approval
of Ethicon's use of the Trademarks shall not be unreasonably withheld.

        SECTION 7.2 FAILURE TO SUPPLY. A failure to supply (a "Failure to
Supply") shall occur if after the date hereof, (A) there occurs a
pre-commercialization audit failure in accordance with Section 3.2 hereof, or
(B) there occurs a post-commercialization audit and inspection failure in
accordance with Section 3.3 hereof, or (C) the parties are unable or unwilling
or have failed for any reason to agree on the initial Specifications 6 months
after submission of the Market Requirements in accordance with Section 4.1
hereof, or (D) for a period of or exceeding 60 days Genetronics is unable or
unwilling or has failed for any reason (including the occurrence of a Force
Majeure Event as defined in Section 11.6, or following commencement of a case by
or against Genetronics under the Bankruptcy Code (as defined in Section 11.7))
to supply to Ethicon 85% or more of any Products in compliance with the desired
delivery date specified in the purchase orders submitted by Ethicon in
accordance with Section 5.3, or (E) there occurs an Event of Default which is
caused by Genetronics and Ethicon elects not to terminate this Agreement
pursuant to Section 11.5; and thereafter such Failure to Supply is not cured by
Genetronics within 30 days after receipt of written notice from Ethicon. After
the occurrence of a Failure to Supply, (i) Ethicon may make and have made the
Products pursuant to the license granted in Section 7.1 above, (ii) Ethicon
shall have no obligation to purchase any further Products from Genetronics
hereunder, (iii) Genetronics shall instruct the Escrow Agent to make available
to Ethicon or its designee the contents of the Escrow Account, (iv) Genetronics
shall provide such assistance, training and other information as shall be
necessary in order for Ethicon or its designated supplier to manufacture or have
manufactured the Products, and (v) Ethicon

                                       10
<PAGE>   11

shall be required to pay to Genetronics all payments due under the License
Agreement. Genetronics shall include any other technical and proprietary
materials, information and techniques necessary or helpful for Ethicon to
procure required raw materials or produce or arrange for an alternative supplier
of Products. Genetronics shall not sell any Products to any Third Party in the
Territory for use in the Field after a Failure to Supply.

                                    ARTICLE 8
                         REPRESENTATIONS AND WARRANTIES

        SECTION 8.1. GENETRONICS REPRESENTATIONS AND WARRANTIES. Genetronics
represents and warrants to Ethicon that:

        (a)    the Products supplied by Genetronics will be manufactured in
accordance with the Specifications for such Product;

        (b)    the Products shall be supplied free from material defects in
design, construction, materials and workmanship;

        (c)    the Products are being sold to Ethicon free and clear of all
liens, claims and encumbrances of any nature;

        (d)    As of the Effective Date, Genetronics is unaware of any pending
or threatened suits, claims, or actions of any type whatsoever with respect to
the Products;

        (e)    all necessary corporate and other authorizations, consents and
approvals which are necessary or required for the entering into of this
Agreement have been duly obtained;

        (f)    the entering into of this Agreement by Genetronics will not (i)
violate any provision of law, statute, rule or regulation or any ruling, writ,
injunction, order, judgment or decree of any court, administrative agency or
other governmental body to which Genetronics is subject, or (ii) conflict with
or result in any breach of any of the terms, conditions or provisions of, or
constitute a default (or give rise to any right of termination, cancellation or
acceleration) under, or result in the creation of any lien, security interest,
charge or encumbrance upon any of the properties or assets of Genetronics, under
its organizational documents, as amended to date, or any material note,
indenture, mortgage, lease, agreement, contract, purchase order or other
instrument, document or agreement to which Genetronics is a party or by which it
or any of its properties or assets is bound or affected;

        (g)    the Products supplied under this Agreement are fully Year 2000
Compliant, or it will be able to demonstrate Year 2000 compliance in full
production versions of the Products, with accompanying documentation, no later
than the December 31, 1998; provided, however, this warranty shall not apply to
output, results, errors or abnormal terminations caused in whole or in part by
(i) any functionality of the Products not

                                       11
<PAGE>   12

developed by Genetronics or its agents, (ii) use of the Products in combination
with any other product not created by Genetronics or its agents, (iii) any
modifications of the Products made by a party other than Genetronics or its
agents, or (iv) any data provided to the Products by persons other than
Genetronics or its agents which does not specify the century or is incorrect or
ambiguous;

        (h)    all of the Products supplied to Ethicon hereunder comply with all
applicable statutes, laws, ordinances and regulations relating to the
manufacture, assembly and supply of medical devices and/or drugs enforced by the
FDA (including compliance with Quality System Regulations) or any Regulatory
Agency and no Product delivered by Genetronics to Ethicon shall be adulterated
or misbranded at the time of delivery within the meaning of the Federal Food,
Drug and Cosmetic Act or its equivalent in another country; and

        (i)    during the Term, Genetronics is the sole and exclusive owner of
or, for licenses executed after the date hereof, licenses with the right to
sublicense, the Genetronics Technology; provided, however, there are no such
licenses as of the date of this Agreement.

        (j)    as of the Effective Date, Genetronics has not received any notice
from any person or entity claiming to have any right, title or interest in or to
the Genetronics Technology and, to the best of its knowledge, has no reason to
expect that any such notice is forth coming.

        (k)    as of the Effective Date, to the best of its knowledge, that the
patents included in the Genetronics Patents Rights are valid and enforceable in
those countries listed on Exhibit E to the License Agreement.

        (l)    as of the Effective Date, Genetronics has no knowledge of (i) any
existing published patent application or issued patent which the manufacture,
use or sale of the Drug Delivery System would infringe, and (ii) any
infringement of the Genetronics Patent Rights by a Third Party.

               Genetronics' representations and warranties in this Section 8.1
which are applicable to a Product shall not apply to any such Product which has
been used by a third party with unapproved software or hardware, or which has
been customized, modified, damaged, misused or improperly stored, installed or
repaired, except to the extent that such actions arise from or are aggravated by
acts of or failure to act by Genetronics.

        SECTION 8.2. ETHICON REPRESENTATIONS AND WARRANTIES. Ethicon represents
and warrants to Genetronics that:

        (a)    all necessary corporate and other authorizations, consents and
approvals which are necessary or required for the entering into of this
Agreement have been duly obtained;

                                       12
<PAGE>   13

        (b)    the entering into of this Agreement by Ethicon shall not (i)
violate any provision of law, statute, rule or regulation or any ruling, writ,
injunction, order, judgment or decree of any court, administrative agency or
other governmental body or (ii) conflict with or result in any breach of any of
the terms, conditions or provisions of, or constitute a default (or give raise
to any right of termination, cancellation or acceleration) under, or result in
the creation of any lien, security interest, charge or encumbrance upon any of
the properties or assets of Ethicon under its organizational documents, as
amended to date, or any material note, indenture, mortgage, lease, agreement,
contract, purchase order or other instrument, document or agreement in which
Ethicon is a party or by which it or any of its properties or assets is bound or
affected;

        SECTION 8.3. INDEMNIFICATION. In order to distribute among themselves
the responsibility for claims arising out of this Agreement, and except as
otherwise specifically provided for herein, the parties agree as follows:

        (a)    Genetronics agrees to defend and indemnify and hold Ethicon
harmless against any and all claims, suits, proceedings, expenses, recoveries
and damages (including, but not limited to, any expenses incurred in connection
with any Product recall), including court costs and reasonable attorneys fees
and expenses, arising out of, based on, or caused by (i) any product liability
claim related to alleged defects in materials, design, construction or
workmanship of the Products in the form supplied to Ethicon by Genetronics
hereunder, (ii) in connection with Products manufactured by Ethicon, product
liability claims related to alleged defects in design of Products to the extent
designed by Genetronics, or (iii) the breach by Genetronics of any
representation or warranty contained in this Agreement, in each case except to
the extent that such claims, suits, proceedings, expenses, recoveries or damages
arise from or are aggravated by acts of or failure to act by Ethicon. Ethicon
will promptly notify Genetronics of any such claim or demand which comes to its
attention.

        (b)    Ethicon agrees to defend and indemnify and hold Genetronics
harmless against any and all claims, suits, proceedings, expenses, recoveries,
and damages including court costs and reasonable attorneys fees and expenses, in
connection with any of the Products sold by Ethicon or its Affiliates arising
out of, based on, or caused by (i) statements, whether written or oral, made or
alleged to be made by Ethicon or its Affiliates on the packaging or labeling of
any of the Products, or in the advertising, publicity, promotion, or sale of any
of the Products, (ii) the storage, sale, shipment, promotion or distribution of
the Products by Ethicon or its Affiliates, (iii) any product liability claim
related to alleged defects in materials, design (unless designed by
Genetronics), construction or workmanship of the Products manufactured by or for
Ethicon hereunder by a party other than Genetronics or its Affiliates, or (iv)
the breach by Ethicon of any representation or warranty contained in this
Agreement, in each case except to the extent that such claims, suits,
proceedings, expenses, recoveries or damages arise from or are aggravated by
acts of or failure to act by Genetronics. Genetronics will promptly notify
Ethicon of any such claim or demand which comes to its attention.

                                       13
<PAGE>   14

        SECTION 8.4. DISCLAIMER OF WARRANTIES. EXCEPT AS EXPRESSLY SET FORTH IN
THIS AGREEMENT OR THE LICENSE AGREEMENT:

        (a)    NEITHER PARTY MAKES ANY REPRESENTATION OR WARRANTY TO THE OTHER
PARTY OF ANY KIND;

        (b)    NOTHING HEREIN SHALL BE CONSTRUED AS A REPRESENTATION OR WARRANTY
BY GENETRONICS TO ETHICON THAT THE GENETRONICS, TECHNOLOGY IS VALID,
ENFORCEABLE, OR NOT INFRINGED BY ANY THIRD PARTY OR THAT THE PRACTICE OF SUCH
RIGHTS DOES NOT INFRINGE ANY INTELLECTUAL PROPERTY RIGHT OF ANY THIRD PARTY; AND

        (c)    NEITHER PARTY MAKES ANY WARRANTIES, EXPRESS OR IMPLIED,
CONCERNING THE SUCCESS OF THE DEVELOPMENT OR THE COMMERCIAL EXPLOITATION OF THE
DRUG DELIVERY SYSTEM.

                                    ARTICLE 9
                               REGULATORY MATTERS.

        SECTION 9.1. ADVERSE EVENTS; FDA AUDITS: ETC.

        (a)    Each party agrees to provide to the other party within 3 business
days of the initial receipt by such party of any report of any serious adverse
experience with respect to a Product of which such party is made aware. Serious
adverse experiences mean any experience that suggests a significant hazard,
contra indication, side effect or precaution, or any experience that is fatal or
life threatening, is permanently disabling, or requires or prolongs inpatient
hospitalization.

        (b)    Genetronics shall promptly provide to Ethicon copies of any
inspection reports it receives from the FDA or any Regulatory Agency.

        (c)    Genetronics shall promptly notify Ethicon of any inspections by
the FDA or any Regulatory agency of its facilities.

        (d)    Product complaints shall be handled in accordance with the
procedures set out in Exhibit E.

        SECTION 9.2. RECALLS.

        (a)    In the event any governmental agency having applicable
jurisdiction shall order any corrective action with respect to a Product
supplied hereunder (including any recall of any product containing a Product),
customer notice, restriction, change, corrective action or market action or any
Product change, and the cause or basis of such corrective action is attributable
to a breach by Genetronics of any of its warranties,

                                       14
<PAGE>   15

representations, obligations or covenants contained herein, then Genetronics
shall be liable, and shall reimburse Ethicon for the reasonable costs of such
action, including the cost of any Product affected thereby whether or not such
particular Product shall be established to be in breach of any warranty by
Genetronics hereunder.

        (b)    In the event that Ethicon determines to undertake any recall of
any Product supplied hereunder (including any recall of any product containing a
Product), customer notice, restriction, change, corrective action or market
action or any Product change, and the cause of such corrective action is due to
a breach by Genetronics; of any of its warranties, representations, obligations
or covenants contained herein, then Genetronics shall be liable, and shall
reimburse Ethicon for the reasonable costs of such action, including the cost of
any Product affected thereby, whether or not such particular Product shall be
established to be in breach of any warranty by Genetronics hereunder.

        (c)    Genetronics shall maintain in accordance with Section 4.14 of
EN46001 (or any successor provision) those procedures which will enable
Genetronics to take the necessary steps to initiate a recall of the Products at
any time or to issue advisory notices to Ethicon to initiate a recall. Such
procedures shall account for the time differences between Europe and the United
States, and provide for a process for Genetronics to limit liability exposure
until Ethicon has had the opportunity to review relevant details and information
to determine the extent of any action required. Such procedures shall also
identify responsible personnel for contact outside normal business hours who
shall have the authority to make interim decisions with respect to any such
recall action.

                                   ARTICLE 10
                 ESCROW ACCOUNT* PROCESS & PRODUCT DESCRIPTIONS

        SECTION 10.1. In view of the fact that manufacturing the Drug Delivery
System involves trade secrets, Genetronics has agreed to the following
provisions to enhance Ethicon's assurance of continuity of supply of the Drug
Delivery System. Within 30 days after the signing of this Agreement, Genetronics
shall deposit the Process & Product Descriptions into an escrow account (the
"Escrow Account") to be held by the escrow agent (the "Escrow Agent") described
in Exhibit G hereto or to such other escrow agent chosen by the Advisory
Committee and notified to Genetronics from time to time. The Process & Product
Descriptions shall be updated periodically by Genetronics and copies delivered
to the Escrow Agent for deposit in the Escrow Account upon changes being made
thereto according to the same requirements as those required by the Quality
System Regulations (QSR) of the FDA. In general, this means that those changes
which effect safety and effectiveness will be updated on a continuous basis
during the year, and other changes will be updated on a quarterly basis. Ethicon
shall have the right, upon reasonable advance notice to Genetronics and during
regular business hours, to audit or have audited (by a Third Party bound by
confidentiality at least as stringent as those set forth herein) the Escrow
Account. Genetronics shall

                                       15
<PAGE>   16

request that the Escrow Agent notify Ethicon in writing of the deposit of the
Process & Product Descriptions with the Escrow Agent and all updates thereto.
The Process & Product Descriptions shall be available at all time to
Genetronics, its then-current management and its successor (including any
trustee in bankruptcy of Genetronics) for inspection and copying but for so long
as this Agreement is in effect, the original deposited Process & Product
Descriptions and amendments shall remain on deposit. Genetronics acknowledges
and agrees that the failure to deposit and update the Process & Product
Descriptions as required hereby would cause irreparable harm to Ethicon if
Ethicon is required to manufacture the Products pursuant to Article 7.

                                   ARTICLE 11
                              TERM AND TERMINATION

        SECTION 11.1. TERM. This Agreement shall commence as of the Effective
Date and shall continue until the expiration of the last to expire of the
Genetronics Patent Rights covering the Drug Delivery System in any country,
unless terminated earlier as provided herein (the "Term").

        SECTION 11.2. TERMINATION FOR CAUSE. Upon a failure by Ethicon to pay 60
days after written notice thereof by Genetronics any amount due in accordance
with this Agreement or the License Agreement, Genetronics may terminate this
Agreement.

        SECTION 11.3. TERMINATION BY ETHICON. Ethicon may terminate this
Agreement without cause upon 180 days' prior written notice to Genetronics.

        SECTION 11.4. EVENTS OF DEFAULT. The occurrence of any one or more of
the following acts, events or occurrences shall constitute an "Event of Default"
under this Agreement:

        (a)    either party becomes the subject of a Bankruptcy Event; or

        (b)    in the event Ethicon terminates the License Agreement upon breach
by Genetronics; or

        (c)    in the event of a Failure to Supply; or

        (d)    in the event of a Change in Control of Genetronics, and such
Change in Control involves (i) a Competitor (as defined below); (ii) any entity
which has a documented and consistent history of Good Manufacturing Practice
problems with the FDA or equivalent problems with any Regulatory Agency, or
(iii) a party which does not have the financial, production or other resources
necessary for it to meet all of the obligations of Genetronics under this
Agreement. For purposes of this paragraph, a "Competitor' shall mean any entity
which is involved in the same business as any operating company among the
Johnson & Johnson Family of Companies ("J&J") that:

                                       16
<PAGE>   17

(A) belongs to the Professional Sector of J&J, or (B) is engaged in the business
of commercially exploiting surgical oncology products.

        SECTION 11.5. TERMINATION RIGHTS UPON AN EVENT OF DEFAULT. Upon the
occurrence of an Event of Default under this Agreement, the non-defaulting party
in its sole discretion may terminate this Agreement upon written notice to the
defaulting party.

        SECTION 11.6. FORCE MAJEURE EVENTS. If either party is prevented from
performing any of its obligations hereunder (other than payment obligations) due
to any cause which is beyond the non-performing party's reasonable control,
including, without limitation, fire, explosion, flood, or other acts of God;
acts, regulations, or laws of any government; war or civil commotion; strike,
lock-out or labor disturbances; or failure of public utilities or common
carriers (a "Force Majeure Event"), such non-performing party shall not be
liable for breach of this Agreement with respect to such non-performance to the
extent such non-performance is due to a Force Majeure Event. Such nonperformance
will be excused for three months or as long as such event shall be continuing
(whichever period is shorter), provided that the non-performing party gives
immediate written notice to the other party of the Force Majeure Event. Such non
performing party shall exercise all reasonable efforts to eliminate the Force
Majeure Event and to resume performance of its affected obligations as soon as
practicable. Should the event of force majeure continue unabated for a period of
60 days or more, the parties shall enter into good faith discussions with a view
to alleviating its affects or to agreeing upon such alternative arrangements as
may be fair and reasonable having regard to the circumstances prevailing at that
time.

        (b)    In the event that such alternative arrangements cannot be agreed
upon within 30 days after the expiration of such initial 60 day period, and in
the event Genetronics is the party which is the subject of the force majeure
event, then Ethicon shall have the right and option, upon written notice to
Genetronics (the "Force Majeure Notice"), to either manufacture itself the
Products which are the subject of such force majeure event, or to have a third
party so manufacture such Products. The Force Majeure Notice shall specify the
Products which are the subject thereof. Upon delivery of the Force Majeure
Notice to Genetronics, (i) this Agreement shall be terminated, (ii) Ethicon
shall have all rights to use the Process & Product Descriptions and (iii)
Genetronics shall provide such assistance and other information as shall be
necessary in order for Ethicon to manufacture or have manufactured the Products.

        SECTION 11.7. RIGHTS UPON INSOLVENCY. All rights and licenses granted
under or pursuant to this Agreement or the License Agreement by Genetronics to
Ethicon are for all purposes of Section 365(n) of Title 11, U.S. Code (the
"Bankruptcy Code"), licenses of rights to "intellectual property" as defined in
the Bankruptcy Code. The parties agree that Ethicon, as a licensee of such
rights under this Agreement or the License Agreement, shall retain and may fully
exercise all of its rights and elections under the Bankruptcy Code. If a case is
commenced by or against Genetronics under the Bankruptcy Code, then, unless and
until this Agreement is rejected as provided in the Bankruptcy Code, Genetronics
(in any capacity, including debtor-in-possession) and its successors and

                                       17
<PAGE>   18

assigns (including, without limitation, a Bankruptcy Code trustee) shall either
perform or caused to be performed all of the obligations provided in this
Agreement to be performed by Genetronics, or provide or cause to be provided to
Ethicon all such intellectual property (including the Escrow Account and all
updates thereof) held by Genetronics and such successors and assigns. If this
Agreement is rejected as provided in the Bankruptcy Code and Ethicon elects to
retain its rights hereunder as provided in the Bankruptcy Code, then
Genetronics; (in any capacity, including debtor-in-possession) and its
successors and assigns (including, without limitation, a Bankruptcy Code
trustee) shall provide or cause to be provided to Ethicon all such intellectual
property (including the Escrow Account and all updates thereof) held by
Genetronics; and such successors and assigns immediately upon Ethicon's written
request therefor. All rights, powers and remedies of Ethicon provided under this
Article are in addition to and not in substitution for any and all other rights,
powers and remedies now or hereafter existing at law or in equity (including,
without limitation, the Bankruptcy Code) in the event of any such commencement
of a bankruptcy proceeding by or against Genetronics. Ethicon, in addition to
the rights, powers and remedies expressly provided herein, shall be entitled to
exercise all other such rights and powers and resort to all other such remedies
as may now or hereafter exist at law or in equity (including the Bankruptcy
Code) in such event.

        SECTION 11.8. REASONABLENESS. Genetronics; expressly acknowledges that
the termination provisions contained in this Article 11 are reasonable,
considering the intended nature and scope of this Agreement.

                                   ARTICLE 12
                               DISPUTE RESOLUTION

        SECTION 12.1. DISPUTES. The parties recognize that disputes as to
certain matters may from time to time arise which relates to either party's
rights and obligations hereunder. It is the objective of the parties to
establish procedures to facilitate the resolution of such disputes in an
expedient and cost effective manner by mutual cooperation and without resort to
litigation. To accomplish this objective, the parties agree that any dispute,
claim or controversy arising from or related in any way to this Agreement or the
interpretation, application, breach, termination or validity thereof, including
any claim of inducement of this Agreement by fraud or otherwise (a "Dispute"),
shall be referred to the President of each party, who or whose designee shall
attempt to resolve it in good faith to negotiate a resolution of the Dispute
prior to pursuing other remedies. If within 21 days after referral of the
Dispute to such officers, the parties have not succeeded in negotiation a
resolution of the dispute, such dispute shall be submitted to non-binding
mediation pursuant to Section 12.2. If the parties are unable-to resolve the
Dispute within 45 days after initiation of non-binding mediation, such dispute
shall be submitted to arbitration pursuant to Section 12.3.

                                       18
<PAGE>   19

        SECTION 12.2. MEDIATION.

        (a)    Any Dispute submitted to non-binding mediation shall be mediated
in accordance with the Model Procedures for the Mediation of Business Disputes
promulgated by the Center for Public Resources ("CPR") then in effect, except
where those rules conflict with these provisions, in which case these provisions
control. The mediation shall be conducted in Trenton, New Jersey and shall be
attended by a senior executive with authority to resolve the dispute from each
of the operating companies that are parties.

        (b)    The mediator shall be an attorney specializing in business
litigation who has at least 15 years of experience as a lawyer with a law firm
or corporation of over 25 lawyers or was a judge of a court of general
jurisdiction and who shall be appointed from the list of neutrals maintained by
CPR.

        (c)    The parties shall promptly confer in an effort to select a
mediator by mutual agreement. In the absence of such an agreement, the mediator
shall be selected from a list generated by CPR with each party having the right
to exercise challenges for cause and two peremptory challenges within 72 hours
of receiving the CPR list.

        (d)    The mediator shall confer with the parties to design procedures
to conclude the mediation within no more than 45 days after initiation. Under no
circumstances shall the commencement of arbitration under Section 12.3 below be
delayed more than 45 days by the mediation process specified herein.

        (e)    Each party agrees to toll all applicable statutes of limitation
during the mediation process and not to use the period or pendency of the
mediation to disadvantage the other party procedurally or otherwise. No
statements made by either side during the mediation may be used by the other
during any subsequent arbitration.

        (f)    Each party has the right to pursue provisional relief from any
court, such as attachment, preliminary injunction, replevin, etc., to avoid
irreparable harm, maintain the status quo, or preserve the subject matter of the
arbitration, even though mediation has not been commenced or completed.

        SECTION 12.3. ARBITRATION.

        (a)    Any Dispute will be submitted for resolution to arbitration
pursuant to the commercial arbitration rules then pertaining of the Center for
Public Resources ("CPR"), except where those rules conflict with these
provisions, in which case these provisions control. The arbitration will be held
in Trenton, New Jersey.

        (b)    The panel shall consist of three arbitrators chosen from the CPR
Panels of Distinguished Neutrals each of whom is a lawyer specializing in
business or patent litigation with at least 15 years experience with a law firm
or corporation of over 25 lawyers or was a judge of a court of general
jurisdiction. In the event the aggregate

                                       19
<PAGE>   20

damages sought by the claimant are stated to be less than $5 million, and the
aggregate damages sought by the counterclaimant are stated to be less than $5
million, and neither side seeks equitable relief, then a single arbitrator shall
be chosen, having the same qualifications and experience specified above.

        (c)    The parties agree to cooperate (1) to obtain selection of the
arbitrator(s) within 30 days of initiation of the arbitration, (2) to meet with
the arbitrator(s) within 30 days of selection and (3) to agree at that meeting
or before upon procedures for discovery and as to the conduct of the hearing
which will result in the hearing being concluded within no more than 9 months
after selection of the arbitrator(s) and in the award being rendered within 60
days of the conclusion of the hearings, or of any post-hearing briefing, which
briefing will be completed by both sides with 20 days after the conclusion of
the hearings. In the event no such agreement is reached, the CPR will select
arbitrator(s), allowing appropriate strikes for reasons of conflict or other
cause and three peremptory challenges for each side. The arbitrator(s) shall set
a date for the hearing, commit to the rendering of the award within 60 days of
the conclusion of the evidence at the hearing, or of any post-hearing briefing
(which briefing will be completed by both sides in no more than 20 days after
the conclusion of the hearings), and provide for discovery according to these
time limits, giving recognition to the understanding of the parties hereto that
they contemplate reasonable discovery, including document demands and
depositions, but that such discovery be limited so that the time limits
specified herein may be met without undue difficulty. In no event will the
arbitrator(s) allow either side to obtain more than a total of 40 hours of
deposition testimony from all witnesses, including both fact and expert
witnesses. In the event multiple hearing days are required, they will be
scheduled consecutively to the greatest extent possible.

        (d)    The arbitrator(s) shall render their award following the
substantive law of New Jersey. The arbitrator(s) shall render an opinion setting
forth findings of fact and conclusions of law with the reasons therefor stated.
A transcript of the evidence adduced at the hearing shall be made and shall,
upon request, be made available to either party.

        (e)    To the extent possible, the arbitration hearings and award will
be maintained in confidence.

        (f)    The United States District Court for the District of New Jersey
may enter judgment upon any award. In the event the panel's award exceeds $5
million in monetary damages or includes or consists of equitable relief, then
the court shall vacate, modify or correct any award where the arbitrators'
findings of fact are clearly erroneous, and/or where the arbitrators'
conclusions of law are erroneous; in other words, it will undertake the same
review as if it were a federal appellate court reviewing a district court's
findings of fact and conclusions of law rendered after a bench trial. An award
for less than $5 million in damages and not including equitable relief may be
vacated, modified or corrected only upon the grounds specified in the Federal
Arbitration Act. The parties consent to the jurisdiction of the above-specified
Court for the enforcement of these provisions, the entry of judgment on any
award, and the

                                       20
<PAGE>   21

vacatur, modification and correction of any award as above specified. In the
event such Court lacks jurisdiction, then any court having jurisdiction of this
matter may enter judgment upon any award and provide the same relief, and
undertake the same review, as specified herein.

        (g)    Each party has the right before or during the arbitration to seek
and obtain from the appropriate court provisional remedies such as attachment,
preliminary injunction, replevin, etc. to avoid irreparable harm, maintain the
status quo or preserve the subject matter of the arbitration.

        (h)    EACH PARTY HERETO WAIVES ITS RIGHT TO TRIAL OF ANY ISSUE BY JURY.

        (i)    EACH PARTY HERETO WAIVES ANY CLAIM TO PUNITIVE OR EXEMPLARY
DAMAGES FROM THE OTHER.

        (j)    EACH PARTY HERETO WAIVES ANY CLAIM OF INDIRECT, SPECIAL,
INCIDENTAL AND CONSEQUENTIAL DAMAGES FROM THE OTHER.

                                   ARTICLE 13
                                  MISCELLANEOUS

        SECTION 13.1. CONFIDENTIALITY; PRESS RELEASES.

        (a)    Ethicon and Genetronics will be exchanging information relating
to the Products at the inception of and from time to time during the term of
this Agreement. Any such information which is considered by the disclosing party
to be confidential will be identified in writing as confidential information or,
if disclosed orally or in another non-written manner, shall be confirmed in
writing as being confidential promptly after the disclosure thereof. The party
receiving such information will maintain the information in confidence using the
same standard of care it uses to maintain its own information in confidence
during the term of this Agreement and for a period of five years thereafter.
Such obligation of confidentiality shall not apply to information which (i) is
known to the receiving party prior to the disclosure, (ii) is publicly known as
of the date of the disclosure, (iii) becomes publicly known after the date of
disclosure through no fault of the receiving party, (iv) is received from a
third party who has no obligation of confidentiality to the disclosing party or
(v) is developed independently by the receiving party, (vi) is required to be
disclosed to comply with a court or administrative subpoena or order; provided,
however, that the receiving party first uses reasonable efforts to obtain an
order preserving the confidentiality of any Confidential Information, and
provided, further, that the receiving party gives the other party timely notice
of the contemplated disclosure to provide the disclosing party the opportunity
to intervene to preserve the confidentiality of any Confidential Information, or
(vii) is required to be disclosed under applicable laws, rules or regulations,
including, without limitation, the rules and regulations of the Toronto Stock
Exchange or other governmental bodies.

                                       21
<PAGE>   22

        (b)    Notwithstanding paragraph (a) above, Ethicon shall be permitted
to disclose to its wholesalers and other direct customers such confidential
information relating to the Products as Ethicon shall reasonably determine to be
necessary in order to effectively market and distribute the Products provided
that such entities are bound by the same confidentiality obligation of Ethicon
has with respect to Genetronics confidential information.

        (c)    No party to this Agreement shall originate any publicity, news
release or other public announcement written or oral, whether relating to this
Agreement or the existence of any arrangement between the parties, without the
prior written consent of any other party named in such publicity, news release
or other public announcement, except where such publicity, news release or other
public announcement is required by law; provided that in such event, the party
issuing same shall still be required to consult with the other party or parties
named in such publicity, news release or public announcement a reasonable time
(being not less than 48 hours) prior to its release to allow the named party or
parties to comment on the use of its name and, after its release, shall provide
the named party or parties with a copy thereof.

        (d)    Neither party shall use the name of the other for advertising or
promotional claims without the prior written consent of the other party.

        SECTION 13.2. INSURANCE. Genetronics agrees to procure and maintain in
full force and effect during the term of this Agreement and for as long as the
Products are marketed valid and collectible insurance policies in connection
with the supply of Products pursuant to this Agreement, which policies shall
provide for the type of insurance and amount of coverage described in Exhibit F.
The existence of such insurance coverage shall in no way limit the liability of
Genetronics hereunder. Upon Ethicon's request, Genetronics; shall provide to
Ethicon a certificate of coverage or other written evidence reasonably
satisfactory to Ethicon of such insurance coverage.

        SECTION 13.3. QUARTERLY REVIEW. The parties agree to establish a
quarterly operations review process pursuant to which the parties will review
(either in person, by telephone, video conference or other mutually agreeable
means) Product quality, cycle time, manufacturing capacity, delivery and cost
reduction efforts.

        SECTION 13.4 SURVIVAL. Those provisions of this Agreement dealing with
rights and obligations upon and/or after termination of this Agreement shall
survive termination of this Agreement to the extent necessary to give effect to
such provisions.

        SECTION 13.5. PENALTIES. If either party terminates this Agreement in
accordance with the terms herein, the terminating party shall owe no penalty or
indemnity to the terminated party on account of such termination.

        SECTION 13.6. INDEPENDENT - CONTRACTOR STATUS. Neither party shall have
any authority to obligate the other in any respect nor hold itself out as having
any such

                                       22
<PAGE>   23

authority. All personnel of Genetronics shall be solely employees of Genetronics
and shall not represent themselves as employees of Ethicon, and all personnel of
Ethicon shall be solely employees of Ethicon and shall not represent themselves
as employees of Genetronics.

        SECTION 13.7. BINDING EFFECTS BENEFITS ASSIGNMENT.

        (a)    This Agreement shall inure to the benefit of and be binding upon
the parties hereto and their respective permitted successors and assigns.
Nothing contained herein shall give to any other person any benefit or any legal
or equitable right, remedy or claim. Anything to the contrary herein
notwithstanding, Genetronics agrees that the right and obligations under this
Agreement of Ethicon may, from time to time, be exercised or performed, as the
case may be, in whole or in part by Affiliates of Ethicon.

        (b)    Genetronics shall be permitted to assign all or part of this
Agreement to any Affiliate of Genetronics upon written notice to Ethicon, such
assignment shall be subject to the assignee agreeing in writing to assume the
benefits and obligations of this Agreement. Anything contained herein to the
contrary notwithstanding, this Agreement shall not be assignable by Genetronics
without the prior written consent of Ethicon, such consent not to be
unreasonably withheld; provided; however, that if such assignment involves any
entity of the type reference in Section 11.4(e), then Ethicon's refusal of
consent to such an assignment shall be deemed to have been reasonable.

        (c)    Ethicon shall be permitted to assign all or part of this
Agreement to any Affiliate of Ethicon upon written notice to Genetronics, such
assignment shall be subject to the assignee agreeing in writing to assume the
benefits and obligations of this Agreement. Anything contained herein to the
contrary notwithstanding, this Agreement shall not be assignable by Ethicon
without the prior written consent of Genetronics, such consent not to be
unreasonably withheld.

        SECTION 13.8. ENTIRE AGREEMENTS AMENDMENTS. Before signing this
Agreement the parties have had numerous conversation, including without
limitation preliminary discussions, formal negotiations and informal
conversations at meals and social occasions, and have generated correspondence
and other writings, in which the parties discussed the transaction which is the
subject of this Agreement and -their aspirations for success. In such
conversations and writings, individuals representing the parties may have
expressed their judgments and beliefs concerning the intentions, capabilities
and practices of the parties, and may have forecasted future events. The parties
recognize that such conversations and writings often involve an effort by both
sides to be positive and optimistic about the prospects for the transactions.
However, it is also recognized that all business transactions contain an element
of risk, as does the transaction contemplated by this Agreement, and that it is
normal business practice to limit the legal obligations of contracting parties
to only those promises and representations which are essential to their
transaction so as to provide certainty as to their future rights and remedies.
Accordingly, this Agreement is intended to define the full extent of the legally
enforceable undertakings of the parties hereto, and no promise

                                       23
<PAGE>   24

or representation, written or oral, which is not set forth explicitly in this
Agreement is intended by either party to be legally binding. Each of the parties
acknowledge that in deciding to enter into this Agreement and to consummate the
transaction contemplated hereby none of them has relied upon any statements or
representations, written or oral, other than those explicitly set forth herein
or therein. No subsequent alteration, amendment, change or addition to this
Agreement shall be binding upon the parties hereto unless reduced to writing and
signed by the respective authorized officers of the parties.

        SECTION 13.9. SEVERABILITY. In the event that any provision of this
Agreement would be held in any jurisdiction to be invalid, prohibited or
unenforceable for any reason, such provision, as to such jurisdiction, shall be
ineffective, without invalidating the remaining provisions of this Agreement or
affecting the validity or enforceability of such provision in any other
jurisdiction. Notwithstanding the foregoing, if such provision could be more
narrowly drawn so as not to be invalid, prohibited or unenforceable in such
jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without
invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

        SECTION 13.10. REMEDIES. Unless otherwise expressly provided, all
remedies hereunder (including, but not limited to, those remedies provided for
in Section 12.10 hereof), are cumulative, are in addition to any other remedies
provided for by law and may, to the extent permitted by law, be exercised
concurrently or separately, and the exercise of any one remedy shall not be
deemed to be an election of such remedy or to preclude the exercise of any other
remedy.

        SECTION 13.11. NOTICES. Any notice, request, consent or communication
(collectively, a "Notice") under this Agreement shall be effective if it is in
writing and (i) personally delivered, (ii) sent by certified or registered mail,
postage prepaid, return receipt requested, (iii) sent by an internationally
recognized overnight delivery service, with delivery confirmed, or (iv) telexed
or telecopied, with receipt confirmed, addressed as set forth in this Section or
to such address as shall be furnished by either party hereto to the other party
hereto. A Notice shall be deemed to have been given as of (i) the date when
personally delivered, (ii) 7 business days after being deposited with the United
States Postal Service, certified or registered mail, properly addressed, return
receipt requested, postage prepaid, (iii) two business days after being
delivered to said overnight delivery service properly addressed, or (iv)
confirmation of receipt of the telex or telecopy, as the case may be. All
Notices shall specifically state: (i) the provision (or provisions) of this
Agreement with respect to which such Notice is given, and (ii) the relevant time
period, if any, in which the party receiving the Notice must respond.

                                       24
<PAGE>   25

                      If to GENETRONICS:

                      Genetronics, Inc.
                      11199 Sorrento Valley Road
                      San Diego, CA 92121-1334
                      Attention: Vice President, Corporate Development
                      Fax: (619) 410-3395

                      with a copy to:

                      Cooley Godward LLP: 4365 Executive Drive, Suite 1100
                      San Diego, CA 92121-2128
                      Attention: M. Wainwright Fishburn, Esq.
                      Fax: No. (619) 453-3555;

                      If to ETHICON:

                      Ethicon, Inc.
                      Route 22 West
                      Somerset, New Jersey 08876
                      Attention: Vice President, New business Development
                      Fax: (908) 218-3492

                      with a copy to:

                      Office of General Counsel
                      Johnson & Johnson
                      One Johnson & Johnson Plaza
                      New Brunswick, New Jersey 08933
                      Fax: 1-908-524-2788;

        SECTION 13.12. WAIVERS. The failure of either party to assert a right
hereunder or to insist upon compliance with any term or condition of this
Agreement shall not constitute a waiver of that right or excuse a similar
subsequent failure to perform any such term or condition by the other party.

        SECTION 13.13. COUNTERPARTS. This Agreement may be executed in any
number of counterparts, and execution by each of the parties of any one of such
counterparts will constitute due execution of this Agreement. Each such
counterpart hereof shall be deemed to be an original instrument, and all such
counterparts together shall constitute but one agreement.

                                       25
<PAGE>   26

        SECTION 13.14. HEADINGS. The article and section headings contained in
this Agreement are for reference purposes only and shall not affect in any way
the meaning or interpretation of this Agreement.

        SECTION 13.15. CONSTRUCTION. The parties hereto agree that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not be applied in the construc5on or interpretation of this
Agreement.

        SECTION 13.16. PATENT MARKINGS. To the extent it is commercially
reasonable to do so, Ethicon agrees (a) to mark the Products sold in the United
States with all applicable United States patent numbers and/or trademarks, and
(b) to mark the Products shipped to or sold in other countries in such a manner
as to conform with the patent and trademark laws and practices of the country of
manufacture or sale.

        SECTION 13.17. EXPORT LAW COMPLIANCE. Ethicon understands and recognizes
that the Products and other materials made available to it hereunder may be
subject to the export administration regulations of the United States Department
of Commerce and other United States government regulations related to the export
of technical data and equipment and products produced therefrom and hereby
agrees to comply with all applicable laws, rules and regulations.

                                       26
<PAGE>   27

       IN WITNESS WHEREOF, Ethicon and Genetronics intending legally to be bound
hereby have caused this Supply Agreement to be duly executed as of the date
first above written.

                                   ETHICON, INC.

                                   By:  /s/ Howard Zauberman
                                       -----------------------------------------
                                   Name: Howard Zauberman
                                   Title: Vice President Growth Technologies/
                                   New Business Development

                                   GENETRONICS BIOMEDICAL, LTD.

                                   By: /s/ Louis J. Crandell
                                       -----------------------------------------
                                   Name: Louis J. Crandell
                                   Title: President and Chief Executive Officer

                                   By:  /s/ Martin Nash
                                       -----------------------------------------
                                   Name: Martin Nash
                                   Title: Senior Vice President

                                   GENETRONICS, INC.

                                   By:  /s/ Louis J. Crandell
                                       -----------------------------------------
                                   Name: Louis J. Crandell
                                   Title: President and Chief Executive Officer

                                   By:  /s/ Martin Nash
                                       -----------------------------------------
                                   Name: Martin Nash
                                   Title: Senior Vice President

                                       27
<PAGE>   28

                                                                       EXHIBIT A

                                    PRODUCTS

                       MARKET REQUIREMENTS; SPECIFICATIONS

                              MARKET REQUIREMENTS:
                       [TO BE COMPLETED AT A LATER DATE]

GENERATOR:

APPLICATOR:

                                 SPECIFICATIONS;
                        [TO BE COMPLETED AT A LATER DATE]

GENERATOR:
(including power cable)

APPLICATOR:

DRUG:

                                       28.
<PAGE>   29

                                                                       EXHIBIT B

                                   TRADEMARKS

MEDPULSER(R)

                                       29.
<PAGE>   30

                                                                       EXHIBIT C

                                     PURCHASE PRICE

1.  GENERATOR:

        (a) The Purchase Price for a Generator (including the power cable) shall
be [...***...] provided, however, that at the end of each Quarter following the
First Commercial Sale, Ethicon shall calculate whether the Purchase Price is
less than the "Adjusted Generator Purchase Price" (as defined below). Ethicon
will consolidate sales by Affiliates and report on sales by country, reflecting
the Adjusted Generator Purchase Price. If so, Ethicon shall forward a payment to
Genetronics for the difference. For purposes of this paragraph (a) "Adjusted
Generator Purchase Price" shall mean [...***...] of Net Sales (as defined in the
License Agreement) of the Generator, and "Quarter" shall mean the fiscal quarter
used for internal accounting purposes by Ethicon.

        (b) The Purchase Price for Generators designated by Ethicon for market
development activities and for clinical trials shall be the cost from
Genetronics; or its contract manufacturer plus [...***...] which will be
documented with a purchase quote and be subject to audit by Ethicon in
accordance with the provisions in the License Agreement.

2.  APPLICATOR:

        (a) The Purchase Price for the Applicator shall be $[...***...];
provided, however, that at the end of each Quarter following the First
Commercial Sale, Ethicon shall calculate whether the Purchase Price is less than
the "Adjusted Applicator Purchase Price" (as defined below). Ethicon will
consolidate sales by Affiliates and report on sales by country, reflecting the
Adjusted Applicator Purchase Price. If so, Ethicon shall forward a payment to
Genetronics; for the difference. For purposes of this paragraph "Adjusted
Applicator Purchase Price" shall mean [...***...] of Net Sales of the
Applicator, to be paid by installments at the end of each Quarter following the
First Commercial Sale. For purposes of this paragraph, "Quarter" shall mean the
fiscal quarter used for internal accounting purposes by Ethicon. All payments
shall be subject to audit by Ethicon in accordance with the audit provisions in
the License Agreement.

        (b) The Purchase Price for Applicators designated by Ethicon for market
development activities and for clinical trials shall be the cost from
Genetronics or its contract manufacturer plus [...***...] which will be
documented with a purchase quote and be subject to audit by Ethicon in
accordance with the provisions in the License Agreement.

                                       30.     *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   31

3.  DRUG:

        (a) The name of the drug is Bleomycin (the "Drug"); provided; however,
in the event Genetronics shall acquire rights to any other drug for use with
Electroporation in the Territory for use in the Field from any Third Party
supplier, such drug shall be deemed a Drug for purposes of this Agreement.

        (b) The price of the Drug will be the [...***...] which will be
documented with a purchase quote and be subject to audit by Ethicon in
accordance with the audit provisions in the License Agreement.

        (c) Genetronics agrees to use reasonable commercial efforts during the
Term to ensure that Ethicon is supplied with commercial quantities of the Drug
in the Territory for use in the Field. In addition, Genetronics acknowledges
that it has entered into an agreement (the "Abbott Agreement") with Abbott
Laboratories for supply of the Drug. Promptly after signing the Supply
Agreement, Genetronics will, to the extent reasonably possible, attempt to
assign to Ethicon its rights under the Abbott Agreement solely with respect to
supply of the Drug in the Territory for use in the Field. For purposes of
clarification only, Genetronics need not transfer its rights under the Abbott
Agreement relating to the use of the Drug outside the Territory and/or the
Field.

                                       31.     *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   32

                                                                       EXHIBIT D

                         ETHICON MANUFACTURING POLICIES

 PURPOSE/SCOPE:       This document is intended to provide the requirements for
                      becoming a qualified external manufacturer and maintaining
                      a qualified status.

ACCEPTABLE QUALITY RATING:

                      As part of the due diligence or screening process, the
                      respective manufacturing facility will be audited for
                      compliance with the [...***...].

                      Observations highlighted in the audit process will be
                      categorized as acceptable, marginal or "Unacceptable." For
                      purposes of this Exhibit D, "Unacceptable" shall be
                      defined as [...***...].

                      All Unacceptable observations must [...***...]. A
                      corrective action plan for all Unacceptable deficiencies
                      must be [...***...].

                      Maintaining a qualified status requires an annual audit
                      with [...***...] observations and agreed upon improvement
                      levels in customer satisfaction metrics. Qualified status
                      will be negated if the audit reveals [...***...]
                      observation and a corrective action plan is not received
                      by Ethicon within [...***...] and corrective action does
                      not take place within [...***...].

ACCEPTABLE PRODUCT DESIGN CONTROL:

                      Genetronics will be expected to adhere to the design
                      control requirements as detailed in [...***...].

                                       32.     *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   33

ACCEPTABLE PRODUCT/PKG. STABILITY:

                      As part of the development of the Product, Genetronics
                      will be expected to demonstrate, through supporting the
                      data, [...***...]. Sterile Products and packaging must
                      adhere to the appropriate standards of the [...***...] or
                      [...***...] for [...***...] and [...***...].

ACCEPTABLE PRODUCT/PROCESS VALIDATION/VERIFICATION:

                      In accordance with the requirements of the [...***...].
                      Genetronics will be expected to demonstrate that the
                      process and/or Product can consistently meet the
                      specifications. In those situations where standard
                      validation steps cannot be taken, verification of
                      consistency [...***...] will be acceptable.

CLOSURE OF DUE DILIGENCE ITEMS:

                      Genetronics will be expected to resolve any open
                      items/issues identified during the [...***...] process.

PRODUCT RELEASE MECHANISM:

                      Genetronics will provide a certificate of conformance for
                      each lot of material produced and released for shipment.
                      The elements of the conformance certificate will be
                      [...***...] and [...***...]. Demonstration of validation
                      of appropriate test methods is a [...***...] the product
                      release mechanism.

PROCESS FOR COMPLAINTS, RETURNS AND RECALLS:

                      The [...***...] will determine the appropriate process for
                      the handling and reporting of complaints.

                      [...***...] will be responsible to have procedures in
                      place to follow the requirements of the [...***...] for
                      record keeping, investigations and corrective action.

                                       33.     *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   34

                      [...***...] will be responsible for receiving and
                      maintaining a file of all complaints and Medical Device
                      Reports ("MDR"). [...***...] will be responsible for
                      receiving complaints from [...***...] investigations,
                      reporting (e.g., the MDR), corrective actions and
                      providing a copy of [...***...]. [...***...] will own
                      [...***...], and will be responsible for registration
                      requirements and [...***...] of the [...***...].

MEASURES:

                      Genetronics agrees to monitor and report the following
                      measurements: [...***...]

                                       34.     *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   35

                                                                       EXHIBIT E

                               PRODUCT COMPLAINTS

                                U.S. AND EX-U.S.

Ethicon Responsibilities

-   Ethicon considered distributor;

-   Receive and report all Product complaints to Genetronics; and

-   Report all adverse event Product complaints to the FDA or any similar
    regulatory authority in foreign countries.

Genetronics Responsibilities

-   Receive, log, evaluate, test, investigate and implement corrective action,
    as appropriate, on all Product complaints;

-   Provide required reporting to the FDA or any similar regulatory authority in
    foreign countries; and

-   Provide status reports to Ethicon within the agreed upon time frame.

General:

-   Each party shall notify the other party in writing within 3 business days
    after receiving notice of any claim, action or inquiry by the FDA relating
    to non-compliance or any notice with respect to any violation of any
    applicable laws, rules or regulations. In addition, each party shall notify
    the other party in writing of any adverse reaction, malfunction, injury or
    other similar claims with respect to the Drug Delivery System of which it
    becomes aware.

-   Each party shall notify the other party in writing within 3 business days of
    any FDA audit, or any audit from any other regulatory body, of its factories
    for the manufacture of the Drug Delivery System, or any request for
    information from the FDA or other regulatory body related to the manufacture
    of the Drug Delivery System, as soon as practically possible after such
    party receives notice of such audit or such request.

                                       35.
<PAGE>   36

-   Each party shall notify the other party in writing within 3 business days
    after receiving notice of any claim, action or inquiry by the FDA or other
    applicable United States or foreign regulatory body or government authority
    or court of law relating to noncompliance of Products covered in this
    Agreement.

-   Genetronics shall file, and maintain at its own cost, all appropriate
    facility registrations with the FDA in the United States and any similar
    regulatory authority in foreign countries which have the authority to
    approve the sale of the Drug Delivery System for use in humans.

                                       36.
<PAGE>   37

                                                                       EXHIBIT F

                                       INSURANCE

Genetronics will obtain and maintain the following insurance coverage:

-   Commercial general liability coverage in the amount of [...***...];

-   Product liability insurance in the amount of [...***...] per occurrence and
    [...***...]. in the aggregate;

-   Clinical trial insurance in an amount not less than [...***...] per
    occurrence and [...***...] in the aggregate; and

-   All risk property insurance covering the buildings, machinery and equipment,
    and inventory, all on a 100% replacement value basis.

Such policies shall name Ethicon as an additional insured and shall provide for
[...***...] written notice of cancellation. Genetronics shall annually provide
Ethicon with a certificate of insurance evidencing required coverage. The
existence of such insurance coverage shall in no way limit the liability of
Genetronics.

                                       37.     *CONFIDENTIAL TREATMENT REQUESTED
<PAGE>   38

                                                                       EXHIBIT G

                                  ESCROW AGENT

Data Securities International
9555 Chesapeake Drive, Suite 200
San Diego, California 92123
Attention: DSI Contract Administration
Tel: (619) 694-1900
Fax: (619) 694-1919

                                      38.

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