SPONSORSHIP AGREEMENT

THIS AGREEMENT, dated for reference March 13, 1996, is made

BETWEEN:

                  HEALTHCARE CAPITAL CORP., a corporation  incorporated pursuant                   to the laws of the  Province  of Alberta  and having an office                   located at 1120-595 Howe Street, Vancouver,  British Columbia,                   V6B 1N2

                                                                (the Issuer);

AND:

                  C.M. OLIVER & COMPANY LIMITED, a company amalgamated under the                   laws of British  Columbia,  having its head  office at the 2nd                   Floor, 750 West Pender Street,  Vancouver,  British  Columbia,                   V6C 1B5

                                                                (the Sponsor).

WHEREAS:

A. The Issuer wishes to distribute to residents of British  Columbia and Alberta units,  comprised  of one common  share and one share  purchase  warrant,  to be issued on the exercise of previously issued special  warrants,  on the terms and conditions  described  in the  prospectus  of the  Issuer  to be filed  with the British Columbia  Securities  Commission and the Alberta  Securities  Commission (the Prospectus);

B. The Sponsor is an investment dealer based in Vancouver and is a member of the Vancouver,  Alberta,  Toronto and Montreal  stock  exchanges  and of the Pacific District of the Investment Dealers Association of Canada, and is registered as a dealer under the Securities Act (British Columbia);

C. The Sponsor is prepared,  on and subject to the terms and  conditions of this Agreement, to conduct an investigation of the organization, management, business and affairs of the Issuer,  sufficient to enable it to sign the  certificate for the final Prospectus of the Issuer.

THEREFORE, the parties agree:

1.                INTERPRETATION

1.1               Defined Terms

In this Agreement:

AG2432.386 [097]

                                                     - 2 -

                  (a)      Distribution  means the  distribution by the Issuer                            of the Units to holders of the  Securities  under the                            Prospectus  and   distribute  has  a  corresponding                            meaning;

                  (b)      Finders'   Special   Warrants   means  the  Special                            Warrants  issued  by the  Issuer  as a  finders'  fee                            pursuant  to a  private  placement  completed  by the                            Issuer on February 28, 1996;

                  (c)      Indemnified   Parties   means  the   Sponsor,   its                            affiliates and their respective directors,  officers,                            employees and agents;

                  (d)      Issuer means HealthCare Capital Corp.;

                  (e)      Marketing  Materials means any marketing  materials                            to be used in connection with the Offering;

                  (f)      material     change,     material     fact    and                            misrepresentation   have  the  respective  meanings                            assigned in the Securities Act (British Columbia);

                  (g)      Offering means the offering,  sale and distribution                            of the Securities pursuant to the Prospectus;

                  (h)      Prospectus means the final prospectus of the Issuer                            to  be  filed  with  the  Securities  Commissions  in                            connection with the Offering;

                  (i)      Related  Agreements means any contract which may be





                           regarded as material to the  purchase of  Securities,                            each   as   more   particularly   described   in  the                            Prospectus;

                  (j)      Securities  means the 1,870,000 Units of the Issuer                            issuable   pursuant  to  the  Special   Warrants  and                            additional   35,750  Units  of  the  Issuer  issuable                            pursuant to the  Finders'  Special  Warrants  offered                            under the Prospectus;

                  (k)      Securities Commissions means the Alberta Securities                            Commission  and  the  British   Columbia   Securities                            Commission;

                  (l)      Securities  Law means  collectively  the applicable                            laws,  regulations,  policies and prescribed forms of                            Alberta   and  British   Columbia   relating  to  the                            distribution of the Securities;

                  (m)      Security Holder means any person whose subscription                            for  Securities  is accepted  by the  Issuer,  or any                            subsequent transferee or successor of such person;

                  (n)      Sponsor means C.M. Oliver & Company Limited; and

AG2432.386 [097]

                                                     - 3 -

                  (o)      Special  Warrants  means  the  outstanding  special                            warrants  of the  Issuer  each such  special  warrant                            entitling the acquisition of one common share and one                            non-transferable  share purchase  warrant to purchase                            one  additional  common  share in the  capital of the                            Issuer.

1.2               Accounting Terms

Any  accounting  terms used  herein  which are not  specifically  defined in the preceding  section 1.1 shall be construed in accordance with generally  accepted Canadian accounting principles.

1.3               Number and Gender

Words  importing  the singular  number  include  plural and vice versa and words importing gender include the masculine, feminine and neuter genders.

1.4               Headings

The  division  of  this  Agreement  into  sections,   subsections,   paragraphs, subparagraphs, schedules and clauses, and the insertion of headings and captions are for  convenience  of reference  only and do not affect the  construction  or interpretation of this Agreement.

1.5               Severability

Any  provision  of this  Agreement  which  may be found to be  prohibited  by or unenforceable  pursuant  to the  laws  of any  jurisdiction  shall,  as to  such jurisdiction,   be  ineffective  to  the  extent  of  such  unenforceability  or prohibition without invalidating the remaining terms and provisions hereof.

1.6               Certificates and Certified Copies

Whenever in this  Agreement  reference is made to a  certificate  or a certified copy to be delivered by a party,  unless specifically  provided otherwise,  such certificate  or certified  copy must be executed by an officer of the party who, by virtue of his office,  is familiar  with the subject of such  certificate  or certified copy and shall certify the completeness, truth and accuracy thereof as of the date of such certificate or certified copy.

1.7               Governing Law

This  Agreement is governed by, and will be construed in  accordance  with,  the laws of British Columbia, Canada.

1.8               Entire Agreement

AG2432.386 [097]

                                                     - 4 -

This Agreement,  including any thing expressly incorporated by reference herein, contains all the terms and  conditions  in  connection  with the subject  matter hereof and no other agreements,  written or oral, respecting such subject matter





shall be deemed to exist or to bind any party.

1.9               Currency References

All dollar amounts  referred to in this Agreement are in Canadian dollars unless otherwise specifically provided.

2.                APPOINTMENT OF SPONSOR

2.1               Appointment of Sponsor

The Issuer  appoints  the  Sponsor as sponsor of the  Offering  and the  Sponsor accepts  the  appointment  and agrees to act as sponsor of the Issuer  under the Prospectus on the terms of this Agreement.

2.2               Duties of Sponsor

As sponsor of the Issuer  under the  Prospectus,  the  Sponsor  will  conduct an investigation  of the  organization,  management,  business  and  affairs of the Issuer sufficient,  in its sole discretion, to enable it to determine whether or not it is able to sign the certificate of the Prospectus.

2.3               Signature of Certificate

If,  following  the  investigation  referred to in  subsection  2.2, the Sponsor determines  in its sole  discretion  that it is able to do so, the Sponsor  will sign the  certificate for the  Prospectus,  certifying  that, to the best of its knowledge,  the  Prospectus  contains  full,  true and plain  disclosure  of all material facts relating to the Securities.

2.4               Review of Business

The Issuer will provide,  or cause to be provided,  to the Sponsor,  its counsel and its agents a reasonable  opportunity to conduct such full and  comprehensive review of its business,  capital,  finances,  operations  and  principals as the Sponsor,  in  its  sole  discretion,   considers  reasonably  necessary  in  the circumstances.

2.5               Sponsor's Fee

For the  services  of the  Sponsor as sponsor  of the  Offering  and as full and complete  compensation  therefor,  the Issuer will pay to the Sponsor the sum of $32,100  (inclusive  of  Goods  and  Services  Tax),  the  receipt  of  which is acknowledged by the Sponsor.

AG2432.386 [097]

                                                     - 5 -

3.                REPRESENTATIONS AND WARRANTIES

3.1               Representations and Warranties of the Issuer

The Issuer represents and warrants to the Sponsor that:

                  (a)      Status of the Issuer

                           The  Issuer,  and  each  of  its  subsidiaries,  is a                            corporation duly  incorporated,  validly existing and                            in good  standing  under the  respective  laws of the                            jurisdiction  of its  incorporation  and each has all                            requisite  power and authority and holds all material                            licences,  certificates,  consents, permits and other                            authorizations as are necessary to enable it to carry                            on  its   proposed   business  as  disclosed  in  the                            Prospectus.

                  (b)      Regular Business

                           The business of the Issuer and its subsidiaries  have                            been  carried  on,  in  all  material  respects,   as                            contemplated   by  and   in   compliance   with   the                            requirements of their respective constating documents                            and in compliance with all applicable laws, rules and                            regulations,  and  neither  the Issuer nor any of its                            subsidiaries  is in breach of or in default under any                            mortgage,  note,  indenture,   contract,  instrument,                            lease or other document or agreement to which it is a                            party.

                  (c)      Corporate and Partnership Authority

                           The execution, delivery and performance by the Issuer                            of this  Agreement and the Related  Agreements,  when                            executed and  delivered,  to which it is or will be a                            party are within the  Issuer's  powers,  have been or                            will have been, at the time of execution and delivery                            thereof,  duly authorized by all necessary  corporate





                           action  and  do  not  and  will  not  contravene  its                            constating documents or any provision of any contract                            binding on it.

                  (d)      Claims and Potential Claims

                           To  the  knowledge  of  the  Issuer,  no  litigation,                            proceeding or  investigation is pending or threatened                            before any court,  agency,  arbitrator  or  otherwise                            which will or might reasonably result in any material                            adverse change in the business, affairs or properties                            or conditions  (financial or otherwise) of the Issuer                            or any of its  subsidiaries or which might reasonably                            result in any  material  liability on the part of the                            Issuer or any of its subsidiaries.

AG2432.386 [097]

                                                     - 6 -

                  (e)      Prospectus

                           The Prospectus  complies with the requirements of the                            Securities   Law  in  all  material   respects.   The                            Prospectus does not contain any  misrepresentation or                            any untrue  statement of a material  fact or omit any                            statement  or  information,  the  omission  of  which                            constitutes a misrepresentation, or omit to state any                            material  fact  required to be stated or necessary to                            make any  statement  contained  therein  not false or                            misleading in light of the  circumstances in which it                            is made and all information and statements  contained                            in the Prospectus are true and correct.  In addition,                            all  information  and  statements  contained  in  the                            Prospectus constitute full, true and plain disclosure                            of all material facts.

                  (f)      Financial Statements

                           The financial  statements of the Issuer  contained in                            the  Prospectus   accurately  reflect  the  financial                            position of the Issuer on a consolidated basis at the                            dates thereof and there have been no adverse material                            changes in the  financial  position  of the Issuer or                            any of its  subsidiaries  since the respective  dates                            thereof, except as fully and plainly disclosed in the                            Prospectus.

                  (g)      Representations and Warranties

                           The  representations and warranties in this Agreement                            are true and will  remain  true as of the date of the                            Prospectus.

3.2               Representations and Warranties of the Sponsor

The Sponsor represents and warrants to the Issuer that:

                  (a)      Corporate Status

                           It  is  a  corporation  duly   amalgamated,   validly                            existing  and in  good  standing  under  the  laws of                            British Columbia.

                  (b)      Corporate Authority

                           The  execution,   delivery  and  performance  by  the                            Sponsor of this  Agreement  is within  the  Sponsor's                            corporate  powers,  has been duly  authorized  by all                            necessary corporate action and does not contravene:

                           (i)      the  memorandum  or articles of the Sponsor;                                     or

                           (ii)     any law; or

AG2432.386 [097]

                                                     - 7 -

                           (iii)    any provision of any other contract  binding                                     on the Sponsor.

                  (c)      Governmental Approvals





                           Except for compliance  with the  requirements  of the                            Securities Law, no authorization or approval or other                            action  by  and  no  notice  to or  filing  with  any                            governmental authority or regulatory body is required                            for the due  execution,  delivery and  performance by                            the Sponsor of this Agreement.

3.3               Survival of Representations and Warranties

Each of the parties  hereto  acknowledges  that the other parties are relying on each of the representations  and warranties  addressed to such other parties set forth in section 3.1 or 3.2, as the case may be, and any representations made in any  certificate  issued to such other parties in connection with this Agreement notwithstanding  any  investigations  heretofore or hereafter made by such other parties  or their  counsel  or  representatives.  All such  representations  and warranties  shall not merge in or be  prejudiced  by,  and shall  survive  for a period of three years from the completion of the distribution of the Units.

4.                COVENANTS OF THE ISSUER

The Issuer covenants with the Sponsor that:

                  (a)      it will  take all such  acts  and  execute,  file and                            deliver all such documents,  amendments,  notices and                            information   as  may  be   necessary  to  cause  the                            purchasers of Securities to become  Security  Holders                            of the Issuer;

                  (b)      it will  execute  or  procure  the  execution  of all                            documents  and use its best  efforts to take or cause                            to  be  taken  all  steps  which  may  be  reasonably                            necessary  to enable  the  transactions  contemplated                            herein to be completed;

                  (c)      it will notify the Sponsor promptly in writing of the                            full  particulars  of any  material  change,  whether                            actual,  anticipated or  threatened,  in any material                            fact stated or referred to in the Prospectus or which                            would result in an omission  from the  Prospectus  to                            state a material fact necessary to make any statement                            contained  therein  not  misleading  in  light of the                            circumstances in which it is made;

                  (d)      during the period of  distribution,  distribution  to                            the public or primary  distribution to the public (as                            contemplated   by   the   Securities   Law)   of  the                            Securities,  it will advise the  Sponsor  promptly of                            any  request of any  securities  commission  or other                            securities   authority  for  a  cease  trading  order                            relating to the Securities,  or of the institution or                            threat of  institution  of any  proceedings  for that                            purpose, or of the receipt by it, or its counsel

AG2432.386 [097]

                                                     - 8 -

                           of any  material  communication  from any  securities                            commission or other securities  authority relating to                            the  Prospectus  or  any  supplements  or  amendments                            thereto;

                  (e)      upon the occurrence of a material  change,  it shall,                            to the  satisfaction of the Sponsor,  promptly comply                            with all  applicable  filing  and other  requirements                            under the Securities Law as a result of such material                            change;

                  (f)      the Securities, when issued, will have the attributes                            described in the Prospectus; and

                  (g)      it  will  deliver  or  cause  to  be  delivered   all                            documents,   including   legal   opinions,   required                            hereunder and by the Prospectus.

5.                EXPERT OPINIONS

The Issuer shall deliver to the Sponsor on the date of filing the Prospectus:

                  (a)      a  letter  dated  as of a  date  not  more  than  one                            Business Day prior to the date of the Prospectus,  in                            form and substance  satisfactory to the Sponsor, from                            the then current auditor of the Issuer:

                           (i)      stating that, in such auditor's opinion, the                                     financial  statements  and notes  thereto of                                     the Issuer  examined by them and included in                                     the Prospectus covered by his report therein                                     comply as to form in all  material  respects





                                    with the applicable accounting  requirements                                     of the Securities Law; and

                           (ii)     stating that, in such auditor's opinion, the                                     balance sheet of the Issuer  examined by the                                     auditor and included in the  Prospectus  and                                     covered by his report therein complies as to                                     form  in  all  material  respects  with  the                                     applicable  accounting  requirements  of the                                     Securities Law; and

                           (iii)    addressing  such other  matters  relating to                                     the financial  information in the Prospectus                                     to which the Sponsor may reasonably  require                                     comfort;

                  (b)      a  favourable  legal  opinion,  in form  and  content                            reasonably satisfactory to the Sponsor, by counsel to                            the  Issuer  dated  the  date of the  Prospectus  and                            addressed  to the  Sponsor,  relating  to such  legal                            matters  as  the  Sponsor  may  reasonably   request,                            including, without limitation, certain of the matters                            in section 3.1, title to the Issuer's  property,  and                            matters pertaining to the Securities Law;

AG2432.386 [097]

                                                     - 9 -

                  (c)      a certificate of the Issuer certifying  certain facts                            relating  to the  business  of the  Issuer,  and  its                            affairs  as  may  be  reasonably   requested  by  the                            Sponsor; and

                  (d)      any other  certificates,  comfort letters or opinions                            in  connection   with  any  matter   related  to  the                            Prospectus  which  are  reasonably  requested  by the                            Sponsor or their legal counsel.

6.                TERMINATION

6.1               Term of Agreement

This Agreement shall  terminate and,  subject to the provisions set forth below, be of no further  force or effect on the exercise by the Sponsor of its right to terminate  this Agreement as provided in subsection  6.2,  provided that, in any event,  sections  3, 7 and 8 and, in the event that such  termination  occurs by virtue of paragraph  6.2(b),  subsection 2.5 shall not terminate  (except as set forth  therein)  and shall  continue in full force and effect for the benefit of the Sponsor or the other parties to this Agreement, as the case may be.

6.2               Termination of Agreement

The Sponsor may, at its sole option,  terminate this Agreement at any time prior to the  issuance  of a  receipt  for  the  Prospectus  by all of the  Securities Commissions by notice in writing to the Issuer if:

                  (a)      any  representation  or warranty made by or on behalf                            of the Issuer herein or in any certificate  delivered                            in connection with this Agreement proves to have been                            incorrect in any material respect when made;

                  (b)      any material adverse change occurs in the business or                            financial  condition  of  the  Issuer  or  any of its                            subsidiaries;

                  (c)      the  Issuer  breaches  or fails to perform or observe                            any of the covenants or agreements to be performed or                            observed by it hereunder;

                  (d)      any order  operating  to  restrict,  prevent or cease                            trading   in  the   Securities   is  made  under  the                            Securities Law;

                  (e)      any  inquiry  or  investigation,  whether  formal  or                            informal,  is commenced or threatened by a securities                            commission  against  the  Issuer  or  its  directors,                            officers or agents; or

                  (f)      any of the  conditions set forth in section 5 are not                            satisfied.

AG2432.386 [097]





                                                     - 10 -

6.3               Obligations of Sponsor Clarified

For greater certainty, the Sponsor is obligated under this Agreement, subject to subsection 6.2, only to perform the investigation referred to in subsection 2.2, and nothing in this Agreement will obligate the Sponsor to sign the  certificate for the Prospectus,  unless, in its sole discretion, it considers itself able to do so.

7.                COSTS, EXPENSES AND TAXES

Whether or not the Sponsor signs the  certificate as  contemplated in subsection 2.3,  the  Issuer  will bear the  costs  and  expenses  in  connection  with the Offering, the preparation,  execution and delivery of this Agreement, amendments to the Prospectus and the other documents to be delivered hereunder,  including, without limitation:

                  (a)      the  reasonable  fees and  out-of-pocket  expenses of                            counsel for the Sponsor with respect  thereto  (which                            fees,  not  including  expenses  and  taxes,  are not                            expected to exceed $15,000 but may after consultation                            with and receipt of the prior approval of the Issuer)                            and with  respect to  advising  the Sponsor as to its                            rights and responsibilities under this Agreement;

                  (b)      fees  and  costs of  preparing  and  reproducing  the                            Prospectus,  any  amendments  thereto  and any  other                            Marketing Materials prepared by the Issuer;

                  (c)      filing fees in connection  with  compliance  with the                            Securities Law;

                  (d)      all costs and expenses  associated  with obtaining an                            assessment  report in  compliance  with Interim Local                            Policy   Statement  3-17  of  the  British   Columbia                            Securities Commission, if required; and

                  (e)      all costs and expenses,  if any (including reasonable                            counsel fees and  expenses),  in connection  with the                            enforcement   of  this   Agreement,   and  the  other                            documents to be delivered hereunder.

8.                INDEMNIFICATION

8.1               Indemnification of Indemnified Parties

The Issuer  shall and does hereby  indemnify  and save the  Indemnified  Parties harmless from and against any liability,  claim, demand or loss,  excluding loss of  profits,  which the  Indemnified  Parties may  suffer,  whether  pursuant to statute or otherwise, howsoever arising, in consequence of:

AG2432.386 [097]

                                                     - 11 -

                  (a)      any  statement  or  omission  in the  Prospectus,  or                            otherwise made or omitted by the Issuer in connection                            with the  Offering,  being or being  alleged  to be a                            misrepresentation;

                  (b)      the  Issuer not  complying  with any  requirement  of                            applicable   legislation  of  Canada  or  of  British                            Columbia or Alberta; or

                  (c)      any  order  made  or any  inquiry,  investigation  or                            proceeding commenced,  threatened or announced by any                            securities  regulatory  authority or other  competent                            authority  in  British  Columbia,  Alberta or Ontario                            which prevents or restricts trading in or the sale or                            distribution  in British  Columbia and Alberta of the                            Securities.

8.2               Right to Counsel

If any  claim  contemplated  by this  section  is  asserted  against  any of the Indemnified  Parties,  the Issuer shall be entitled (but not required) to assume the defence on behalf of the Indemnified  Parties of any suit brought to enforce such claim,  provided that the defence shall be through legal counsel acceptable to the  Indemnified  Parties and no admission of liability  shall be made by the Issuer or the  Indemnified  Parties  without,  in each case,  the prior  written consent of all the parties hereto, such consent not to be unreasonably withheld. Any of the Indemnified  Parties shall have the right to employ separate  counsel in any such suit and participate in the defence  thereof,  at the expense of the Issuer.

8.3               Indemnity





The  indemnity  provided  for in this  section  will not be limited or otherwise affected by any other indemnity obtained by the Sponsor from any other person in respect of any matters  specified in this  Agreement  and will  continue in full force and effect until all possible  liability of the Sponsor arising out of the transactions  contemplated  by  this  Agreement  has  been  extinguished  by the operation of law.

9.                NOTICES

Any notice  required or permitted to be given  hereunder shall be in writing and be given by personal service, telex, telegram, telecopy or by registered letter, with postage fully prepaid, to the address set forth below:

AG2432.386 [097]

                                                     - 12 -

                  (a)      if to the Issuer at:

                           HealthCare Capital Corp.                            c/o Ballem MacInnes                            Barristers and Solicitors                            First Canadian Centre                            1800, 350-7th Avenue S.W.                            Calgary, Alberta                            T2P 3N9                            Attention:       William DeJong                            Telephone:       (403) 292-9800                            Fax:             (403) 233-8979

                  (b)      if to the Sponsor at:

                           C.M. Oliver & Company Limited                            2nd Floor, 750 West Pender Street                            Vancouver, B.C.                            V6C 1B5                            Attention:       Lyle Davis                            Telephone:       (604) 668-6700                            Fax:             (604) 681-8964

Any notice  delivered  personally  or by telex,  telegram or  telecopy  shall be deemed to be received by and given to the addressee on the day of delivery.  Any notice mailed as aforesaid shall be deemed to have been received by and given to the addressee on the fifth  Business Day following the date of mailing except in the event of a  disruption  of postal  service,  in which event  notice shall be delivered  personally  or given by telex,  telegram or  telecopy.  Either  party hereto may designate a new address by giving written notice thereof to the other party at least ten days in advance of the effective date of such designation.

10.               MISCELLANEOUS

10.1              Amendments, Etc.

No amendment or waiver of any  provision  of this  Agreement  nor consent to any departure by the Issuer  therefrom shall in any event be effective  unless it is in writing and signed by the  Sponsor  and then such  waiver or consent  will be effective only in the specific  instance and for the specific  purpose for which given.

10.2              Time

Time shall be of the essence of this Agreement.

AG2432.386 [097]

                                                     - 13 -

10.3              Binding Effect

This  Agreement  is binding  upon and enures to the  benefit of the  parties and their  respective  successors and assigns,  and no party shall have the right to assign its rights  hereunder or any interest  herein  without the prior  written consent of the other parties.

10.4              Governing Law

This Agreement  will be governed by the law of British  Columbia and the parties attorn to the  non-exclusive  jurisdiction of the courts of British Columbia for the resolution of all disputes arising in connection with this Agreement.

11.               EXECUTION IN COUNTERPART





This  Agreement may be executed by any party in two or more  counterparts,  each such  counterpart  will be deemed to be an original,  and all such  counterparts taken together will constitute one and the same agreement.

IN WITNESS of this  Agreement,  the parties  have  executed and  delivered  this Agreement as of the date given above.

HEALTHCARE CAPITAL CORP.

By:      /s/ Douglas F. Good Title:   Chief Financial Officer

C.M. OLIVER & COMPANY LIMITED

By:      /s/ C. M. O'Brian Title:   Chairman

AG2432.386 [097] 
Question: Highlight the parts (if any) of this contract related to Anti-Assignment that should be reviewed by a lawyer. Details: Is consent or notice required of a party if the contract is assigned to a third party?
Output: 33787