Schedule "C"
                               ------------

                         BCCA  Royalty  Agreement

THIS  AGREEMENT  made  as  of  the  8th day  of  May  1997.
                                    ---          ---    --

AMONG:
     BRITISH  COLUMBIA CANCER AGENCY, a society duly incorporated under the laws
     of the Province of British Columbia with an office at 600 West 10th Avenue,
     Vancouver,  British  Columbia,  V5Z  4E6

     ("BCCA")
                                                  OF  THE  FIRST  PART
AND:
     DERMA  TECHNOLOGIES  INC.,a  company  duly  company  under  the laws of the
     Province  of  British  Columbia  with  an  office  at 835 West 10th Avenue,
     Vancouver,  British  Columbia,  V5Z  4E8.

     (the  "company")
                                                 THE  SECOND  PART
AND:

     DR.  HARVY  LUI,  a  Physician,  of  BCCA, 600 West 10th Avenue, Vancouver,
     British  Columbia,  V5Z  4E6

     ("Lui")

AND:

     DR.  HAISHAN  ZENG,  A Scientist, of BCCA, 600 West 10th Avenue, Vancouver,
     British  Columbia  V5Z  4E6

     ("Zeng")

AND:

     DR.  CALUM MACAULAY, a Scientist, of BCCA, 600 West 10th Avenue, Vancouver,
     British  Columbia,  V5Z  4E6

     ("MacAulay")
AND:

     DR.  DAVIC  MCLEAN,  a Physician, of BCCA, 600 West 10th Avenue, Vancouver,
     British  Columbia,  V5Z  4E6

     ('McLean")

AND:
     DR.  BRANCO  PALCIC, a Scientist, of BCCA, 600 West 10th Avenue, Vancouver,
     British  Columbia,  V5Z  4E6

     (Palcic")

                                                            OF  THE  THIRD  PART

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                                     -2-

WHEREAS:

A.   The  Researchers  are  employed  by  BCCA;

B.   On the project originating from in the Skin Working Group of BCCA, a set of
     conceptual  devices  have  been  developed.

C.   The  Researchers  have  developed  patent  applications  for three of these
     devices;

D.   Further research is needed in order to develop these devices for commercial
     use.

E.   BCCA  has  elected  not  to  pursue  the  patenting  of  these  devices.

F.   BCCA  is willing to permit the Company to undertake the require research to
     develop  these  devices,  and  to  build  study  and  laboratory prototypes
     provided that all risks and costs associated with this research are assumed
     and  paid  for  by  the  Company:

G.   The  Company  us  prepared  to  undertake  the  research  and  development.

NOW THERFORE THIS INDENTURE WITNESSETH that in consideration of the premises and
of  the  mutual covenants hereinafter set forth, the parties hereto covenant and
agree  as  follows:

ARTICLE  1:     DEFINITIONS
                -----------

1.1  In  this  Agreement  unless  the  context  clearly or necessarily indicates
     otherwise,  the  following  words  and  phrases  shall  mean.

     (a)  "The devises" is defined as encompassing the embodiments envisioned in
          the  patent  applications
          (1)  Fluorescene  scope  system  for  dermatologic  diagnosis,
          (2)  Spectrometer  system  for  diagnosis  of  skin  disease,
          (3)  Apparatus  and  method  to  monitor  photodynamic  therapy  (DPT)
               (Abstracts  attached  in  Appendix  A)

     (b)  "Date  of  Commencement"  ; This Agreement will be deemed to have come
          into  force  on  the  date of execution and will be read and construed
          accordingly.

     (c)  "Gross  Revenue"  All  Revenues,  receipts  and  monies  directly  or
          indirectly  collected or received whether for cash or credit or by way
          of benefit, advantage or concession by the Company from the use of the
          Technology  and/or  any Products in any or all parts of the word where
          the  world where the Company is permitted by law and by this Agreement
          to  use the Technology and/or the Products. Where any gross revenue is
          derived  from  a country other than Canada, it shall be converted into
          the equivalent in Canadian dollars on the date received by the Company
          at  the  rate of exchange set by the Bank of Montreal in the amount of
          Canadian  dollars  actually  received  by the Company pursuant to such
          conversion  shall  be  included  in  gross  revenue.

     (d)  "Royalty Due Date": The last working day of December in each and every
          year  during  which  this  Agreement remains in full force and effect.

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                                     -3-

ARTICLE  2:     PROPERTY  RIGHTS  IN  AND  TO  THE  DEVICES
                -------------------------------------------

2.1  The  parties  hereby  acknowledge and agree subject to Section 3.1 that all
     rights, title and interest in and to the devices now owned by BCCA shall be
     and  they  are  hereby  assigned  by  BCCA  to  the  Company.

2.2  The  Researchers  and  BCCA  agree  to  assign  to the Company all of their
     respective  right,  title and interest in and to the Patents arising out of
     the  devices  that  may  hereafter  be  applied  for.

ARTICLE  3:     ROYALTIES
                ---------

3.1  In  consideration of the transfer by the investors of all the rights in and
     to the devices, the Company shall pay to the investors a Royalty of 1.0% of
     its  Gross  Revenue  on  all  Gross  Revenue derived from the marketing and
     manufacturing of the Technology and the marketing manufacturing and sale of
     Products.

3.2  In  consideration  of  the transfer by BCCA of all the rights in and to the
     devices,  the  Company  shall  pay  to  BCCA a Royalty of 1.5% of its Gross
     Revenue  on  all Gross Revenue derived from the marketing and manufacturing
     of  the  Technology  and  the marketing manufacturing and sale of Products.

3.3  Royalties shall become due and payable on the Royalty Due Date and shall be
     calculated  with respect to Gross Revenue received by the company in the 12
     month  period  immediately  preceding  the respective Royalty Due Date. The
     Company  shall  pay  such  Royalty on or before the date it becomes due and
     payable.

3.4  All  payments  of  Royalties made by the Company to BCCA hereunder shall be
     made  in Canadian Dollars without any deduction or reductions of any nature
     or  kind  whatsoever,  except  as  may  be  prescribed  by  Canadian  law.

ARTICLE  4:     ACCOUNTING  RECORDS  IN  RESPECT  OF  ROYALTIES
                -----------------------------------------------

4.1  The Company shall maintain at its principal place of business or such other
     place  as may be most convenient, separate accounts and records of business
     done  under  this  Agreement, such accounts and reports to be in sufficient
     detail  to  enable  proper returns to be made under this agreement, and the
     Company  shall  require  its  licensees  and  sub-licensees to keep similar
     accounts  and  records.

4.2  The  Company  shall  deliver  to BCCA on the Royalty Due Date any Royalties
     together  with  an  accounting  statement (the "Accounting") setting out in
     detail  how  the  account  in  Gross  revenue  was  determined.

4.3  During  the term of this Agreement and thereafter, all information provided
     to  BCCA  or  its  representatives  pursuant  to  this Article shall remain
     confidential  and be treated as such by BCCA and will not be made available
     to  any  other  person.

4.4  Notwithstanding  the  termination  of  this Agreement, this Article 4 shall
     remain  in  full  force  and  effect  until:

     (a)  all  payments  of  Royalty  required to be made by the Company to BCCA
          under  this  Agreement  have  been  made  by  the Company to BCCA: and

     (b)  any  other  claim  or  claims of any nature or kind whatsoever of BCCA
          against  the  Company  have  been  settled.

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                                     -4-

ARTICLE  5:     RESEARCHERS
                -----------

The  Researchers jointly and severally warrant and represent to the Company that
the Technology to date has been developed in the course of their employment with
BCCA  and that they are willing to transfer their right, title or interest in or
to  any  Products to the Company in accordance with the terms of this Agreement.

ARTICLE  6:     TERMINATION
                -----------

6.1     This  Agreement  shall  expire:

     (a)  If  Patents  have  been  issued  with respect to the devices, upon the
          expiry  of  the  last  such  Patent  issued:

     (b)  If  no  such  Patents  have been issued, on the date which is 20 years
          from  the  Date  of  Commencement.

ARTICLE  7:     GENERAL
                -------

IN  WITNESS  WHEROF the parties hereto have caused this Agreement to be executed
by  the  parties  on  the  date  hereinbefore  set  forth.

The  CORPORATE  SEAL  of  BRITISH          )
COLUMBIA  CANCER  AGENCY  was              )
Hereunto  affixed  in  the  presence  of:  )
/s/ Dr. Victor Ling                        )
________________________________           )       c/s
Authorized  Signatory  Dr.  Victor  Ling   )
                                           )
________________________________           )
Authorized  Signatory                      )

The  CORPORATE  SEAL  of  DERMA            )
TECHNOLOGIES  INC.  was  hereunto          )
affixed  in  the  presence  of:            )
/s/ unknown     "president"                )
________________________________           )      c/s
Authorized  Signatory                      )
                                           )
________________________________           )
Authorized  Signatory                      )

SIGNED,  SEAL  AND  DELIVERED  by          )
DR.  HARVY  LUI  in  the  presence  of:    )
                                           )    /s/ DR.  HARVY  LUI
________________________________           )    _________________________
Name                                       )    DR.  HARVY  LUI
                                           )
7726 Kaymen  Dr.                           )
________________________________           )
Address                                    )
                                           )
Secretary                                  )
________________________________           )
Occupation



<PAGE>

                                       -5-


SIGNED,  SEALED  AND  DELIVERED  by        )
DR.  HAISHAN  ZENG  in  the  presence  of: )
                                           )
/s/ Val Kinnie                             )   /s/ DR.  HAISHAN  ZENG
____________________________               )   ----------------------
Name                                       )   DR.  HAISHAN  ZENG
                                           )
                                           )
12584  -24  Ave,  Surrey                   )
------------------------                   )
Address                                    )
                                           )
Admin. Assistant                           )
-------------------------                  )
Occupation                                 )


SIGNED,  SEAL  AND  DELIVERED  by          )
DR. CALUM MACAULAY in the presence of:     )
/s/ Val Kinnie                             )  /s/ DR.  CALUM  MACAULAY
________________________________           )  ____________________________
Name                                       )  DR.  CALUM  MACAULAY
                                           )
12584  -24  Ave,  Surrey                   )
------------------------                   )
Address                                    )
                                           )
Admin. Assistant                           )
-------------------------                  )
Occupation                                 )


SIGNED,  SEALED  AND  DELIVERED  by        )
DR. DAVID MCLEAN in the presence of:       )
/s/ J. Kowell                              )  /s/ DR.  DAVID  MCLEAN
_________________________________          )  ____________________________
Name                                       )  DR.  DAVID  MCLEAN
                                           )
7726  Kayman  Dr                           )
__________________                         )
Address                                    )
                                           )
Secretary                                  )
_________________________                  )
Occupation                                 )


SIGNED,  SEAL  AND  DELIVERED  by          )
DR. BRANKO PALCIC in the presence of:      )
/s/ Val Kinnie                             )  /s/ DR.  BRANKO  PALCIC
_________________________________          )  ____________________________
Name                                       )  DR.  BRANKO  PALCIC
                                           )
12584  -24  Ave,  Surrey                   )
------------------------                   )
Address                                    )
                                           )
Admin. Assistant                           )
-------------------------                  )
Occupation                                 )