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                                                                   Exhibit 10.41

                           POLAR MOLECULAR CORPORATION

                      BRIDGE SECURITIES PURCHASE AGREEMENT

     THIS PURCHASE AGREEMENT is made as of the 30th day of January, 2001 by and
among Polar Molecular Corporation, a Utah corporation ("PMC"), and the investors
listed on Schedule A hereto, each of which is herein referred to as an
"Investor."

                                    RECITALS:

     A. PMC has engaged APS Financial Corporation ("APSF") to assist PMC in
raising additional capital. Pursuant to an engagement letter between PMC and
APSF, APSF has agreed to proceed with an immediate financing pursuant hereto
(the "Bridge Financing") and contemplates assisting with a second offering of
approximately $4,000,000 in the first quarter of 2001 (the "Secondary
Placement").

     B. The Investors hereby agree to provide the Bridge Financing upon the
terms and conditions set forth herein.

     NOW THEREFORE, in consideration of the mutual covenants and conditions
herein contained, the parties agree as follows.

     1. Purchase of Bridge Securities. Subject to the terms and conditions of
this Agreement and based upon the warranties and representations herein
contained, PMC agrees to sell to the Investors, a maximum of 32 units of PMC's
securities (the "Bridge Securities"), each unit consisting of 250 shares of
PMC's 10% Cumulative Redeemable Series B Preferred Stock (the "Series B
Preferred Stock") and 1 common stock purchase warrant to purchase 247,071 shares
of common stock (the "Bridge Warrant"). Each Unit will be sold for $25,000 for a
maximum offering of $800,000 if all 32 units are sold. Schedule A shows the
number of Units and aggregate purchase price paid by each Investor. The Series B
Preferred Stock will be issued in accordance with the Terms and Designations of
Series B Preferred Stock of PMC in the form attached hereto as Exhibit 1A and
the Bridge Warrant will be in the form attached hereto as Exhibit 1B. Subject in
part to the truth and accuracy of each Investor's representations set forth in
Section 3 of this Agreement, the offer, sale and issuance of the Series B
Preferred Stock as contemplated by this Agreement are exempt from the
registration requirements of any applicable state and federal securities laws,
and neither PMC nor any authorized agent acting on its behalf will take any
action hereafter that would cause the loss of such exemption.

     2. Representations and Warranties of PMC. PMC represents and warrants that,
except as set forth in the attached Schedule of Exceptions:

     2.01. Organization and Good Standing. PMC is a corporation duly organized,
validly existing and in good standing under the laws of the State of Utah and
has all requisite corporate power and is duly authorized, qualified, franchised
and licensed under all applicable laws, regulations, ordinances and orders of
public authorities to own its properties and assets and to carry on its business
as it is presently being conducted.

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     2.02. Articles and Bylaws. Attached hereto as Exhibit 2.02A is a copy of
PMC's Articles of Incorporation as they will be in effect at the closing of the
sale of the Bridge Securities (the "Closing"). Exhibit 2.02A includes the
provisions set forth in the attached Exhibit 1A. Attached hereto as Exhibit
2.02B is a copy of PMC's Bylaws as they will be in effect at the Closing. The
attached Exhibits 2.02A and 2.02B are complete and accurate copies of PMC's
Articles of Incorporation and Bylaws as will be in effect as of the Closing.
Those documents have been approved by all needed action of PMC's shareholders
and/or Board of Directors.

     2.03. Authorization. The Board of Directors of PMC has approved this
Agreement and the agreements referred to in Section 5, including without
limitation, those agreements referred to in Sections 5.03, 5.08, 5.09 and 5.10
(this Agreement and those other agreements are collectively referred to herein
as the "Bridge Financing Agreements") and the transactions contemplated hereby
and thereby and has authorized the execution and delivery of this Agreement and
the other Bridge Financing Agreements by PMC. PMC has full power, authority and
legal right to enter into this Agreement and the other Bridge Financing
Agreements and to consummate the transactions contemplated therein. This
Agreement and the other Bridge Financing Agreements constitute legal, valid and
binding obligations of PMC enforceable in accordance with their terms. except
(i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors' rights
generally, (ii) as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies, and (iii) to the
extent the indemnification provisions contained in the Investors' Rights
Agreement may be limited by applicable federal or state securities laws.

     2.04. Capitalization. The authorized capital stock of PMC consists of
150,000,000 shares of common stock, with $.001 par value and 10,000,000 shares
of preferred stock with $.001 par value. All outstanding shares are duly
authorized, fully paid, validly issued and nonassessable in accordance with
applicable law. Attached hereto as Exhibit 2.04 is a schedule showing all of the
currently outstanding shares of common stock and all shares of common stock that
are issuable upon the exercise of outstanding common stock warrants, options,
conversion and other acquisition rights of any kind (including without
limitation, royalties, debt, interest, compensation, Series A Preferred Stock
and consulting related conversion into equity) and all shares issuable upon a
proposed new officer and director options plan. Other than as set forth on
Exhibit 2.04 or as required pursuant to the Bridge Financing Agreements or any
agreements between PMC and APSF, PMC has no commitments or obligations to issue
any other shares of its common stock. Prior to the Closing, all shares of Series
A Preferred Stock and warrants sold with those shares of Series A Preferred
Stock will be converted into common stock so that there will be no shares of
Series A Preferred Stock outstanding and the former holders of the Series A
Preferred Stock will have no further rights with respect to those shares of
Series A Preferred Stock or those warrants. Because the shares that may be
issuable as shown on Exhibit 2.04 exceeds the currently authorized shares of
common stock, some of those shares will not be able to be issued until after the
amendment to PMC's Articles of Incorporation to be approved pursuant to Section
4.01. PMC will issue as many of those shares as possible before that amendment
to PMC's Articles of Incorporation but Exhibit 2.04 shows which of those shares
(the "Deferred Shares") will not be issued until after that amendment.
Accordingly, with respect to any provision of this Agreement that requires any
of the Deferred Shares to be issued by a

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certain date, that specified date will be extended until that amendment to PMC's
Articles is effective if those Deferred Shares cannot be issued prior to that
amendment.

     2.05. Existing Indebtedness. Attached hereto as Exhibit 2.05 is a list
(showing the payee, amount of debt and type of debt) of all existing debt of
PMC, other than accounts payable.

     2.06. Subsidiaries. PMC does not own, directly or indirectly, any interest
or investment, whether equity or debt, in any corporation, business, trust or
other entity.

     2.07. Litigation. There is no action, suit, proceeding or investigation
pending or, to PMC's knowledge, currently threatened against PMC that questions
the validity of the Bridge Financing Agreements, or the right of PMC to enter
into such agreements, or to consummate the transactions contemplated hereby or
thereby, or that might result, either individually or in the aggregate, in any
material adverse changes in the assets, condition, affairs or prospects of PMC,
financially or otherwise, or any change in the current equity ownership of PMC,
nor is PMC aware that there is any basis for the foregoing. The foregoing
includes, without limitation, actions, suits, proceedings or investigations
pending or threatened (or any basis therefor known to PMC) involving the prior
employment of any of PMC's employees, their use in connection with PMC's
business of any information or techniques allegedly proprietary to any of their
former employers, or their obligations under any agreements with prior
employers. PMC is not a party or subject to the provisions of any order, writ,
injunction, judgment or decree of any court or government agency or
instrumentality. There is no action, suit, proceeding or investigation by PMC
currently pending or that PMC intends to initiate.

     2.08. Patents and Trademarks. To the best of its knowledge with respect to
copyrights, patents, trademarks, services marks and trade names only, PMC has
exclusive title and ownership of or exclusive licenses to all patents,
trademarks, service marks, trade names, copyrights, trade secrets, information,
proprietary rights and processes necessary for its business as now conducted and
as proposed to be conducted without any conflict with or infringement of the
rights of others. Attached hereto as Exhibit 2.08 is a complete list of
trademarks, copyrights, patents and pending patent applications of PMC showing
the type of right, identifying number (if any), stating whether domestic or
international (identifying countries) and expiration date. That exhibit also
indicates which of those rights were obtained by an assignment. Except as set
forth on Exhibit 2.08, there are no outstanding options, licenses, or agreements
of any kind relating to the foregoing, nor is PMC bound by or a party to any
options, licenses or agreements of any kind with respect to the patents,
trademarks, service marks, trade names, copyrights, trade secrets, licenses,
information, proprietary rights and processes of any other person or entity,
except, in either case, for standard end-user, object code, internal-use
software license and support/maintenance agreements. PMC has not received any
communications alleging that PMC has violated or, by conducting its business as
proposed, would violate any of the patents, trademarks, service marks, trade
names, copyrights or trade secrets or other proprietary rights of any other
person or entity. PMC is not aware that any of its employees is obligated under
any contract (including licenses, covenants or commitments of any nature) or
other agreement, or subject to any judgment, decree or order of any court or
administrative agency, that would interfere with the use of his or her best
efforts to promote the interests of PMC or that would conflict with PMC's
business as proposed to be conducted. Neither the execution nor delivery of this
Agreement or the other Bridge Financing Agreements, nor the carrying on of PMC's

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business by the employees of PMC, nor the conduct of PMC's business as proposed,
will, to the best of PMC's knowledge, conflict with or result in a breach of the
terms, conditions or provisions of, or constitute a default under, any contract,
covenant or instrument under which any of such employees is now obligated. PMC
does not believe it is or will be necessary to utilize any inventions of any of
its employees (or people it currently intends to hire) made prior to or outside
the scope of their employment by PMC. Upon execution and delivery of the Patent
Assignment and Royalty Release Agreements to be executed pursuant to Section
5.09, PMC will not have any further obligations to pay royalties for the use of
the intellectual property listed in Exhibit 2.08 or any other intellectual
property used in PMC's business as currently conducted or currently contemplated
to be conducted.

     2.09. Compliance with Other Instruments. PMC is not in violation or default
of any provision of its Restated Certificate or Bylaws, or of any instrument,
judgment, order, writ, decree or contract to which it is a party or by which it
is bound, or, to the best of its knowledge, of any provision of any federal or
state statute, rule or regulation applicable to PMC. The execution, delivery and
performance of this Agreement or the other Bridge Financing Agreements, and the
consummation of the transactions contemplated hereby and thereby will not result
in any such violation or be in conflict with or constitute, with or without the
passage of time and giving of notice, either a default under any such provision,
instrument, judgment, order, writ, decree or contract or an event that results
in the creation of any lien, charge or encumbrance upon any assets of PMC or the
suspension, revocation, impairment, forfeiture, or nonrenewal of any material
permit, license, authorization, or approval applicable to PMC, its business or
operations or any of its assets or properties.

     2.10. Agreements: Action.

          (a) Except for agreements explicitly contemplated hereby and by the
     other Bridge Financing Agreements or as set forth on the Schedule of
     Exceptions, there are no agreements, understandings or proposed
     transactions between PMC and any of its officers, directors, affiliates, or
     any affiliate thereof.

          (b) Except as set forth on the Schedule of Exceptions, there are no
     agreements, understandings, instruments, contracts, proposed transactions,
     judgments, orders, writs or decrees to which PMC is a party or by which it
     is bound that may involve (i) obligations (contingent or otherwise) of, or
     payments to PMC in excess of, $5,000 (other than those involving payments
     to PMC entered into in the ordinary course of business, regardless of the
     amount of such payments, and obligations of PMC not in excess of $5,000
     entered into in the ordinary course of business), or (ii) the license of
     any patent, copyright, trade secret or other proprietary right to or from
     PMC, or (iii) provisions restricting or affecting the development,
     manufacture or distribution of PMC's products or services, or (iv)
     indemnification by PMC with respect to infringements of proprietary rights.

          (c) Except as set forth on the Schedule of Exceptions, PMC has not (i)
     declared or paid any dividends or authorized or made any distribution upon
     or with respect to any class or series of its capital stock, (ii) incurred
     any indebtedness for money borrowed or any other liabilities individually
     in excess of $5,000 or, in the case of

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     indebtedness and/or liabilities individually less than $5,000, but arising
     from a related series of transactions in excess of $25,000 in the
     aggregate, (iii) made any loans or advances to any person, other than
     ordinary advances for business or travel expenses, or (iv) sold, exchanged
     or otherwise disposed of any of its assets or rights, other than the sale
     of its inventory in the ordinary course of business.

          (d) For the purposes of subsections (b) and (c) above, all
     indebtedness, liabilities, agreements, understandings, instruments,
     contracts and proposed transactions involving the same person or entity
     (including persons or entities PMC has reason to believe are affiliated
     therewith) shall be aggregated for the purpose of meeting the individual
     minimum dollar amounts of such subsections.

          (e) PMC is not a party to and is not bound by any contract, agreement
     or instrument, or subject to any restriction under its Restated Certificate
     or Bylaws that adversely affects its business as now conducted or as
     proposed to be conducted, its properties or its financial condition.

          (f) PMC has not engaged in the past three (3) months in any discussion
     (i) with any representative of any person or entity regarding the
     consolidation or merger of PMC with or into any such person or entity, (ii)
     with any corporation, partnership, association or other business entity or
     any individual regarding the sale, conveyance or disposition of all or
     substantially all of the assets of PMC or a transaction or series of
     related transactions in which more than fifty percent (50%) of the voting
     power of PMC is disposed of, or (iii) regarding any other form of
     acquisition, liquidation, dissolution or winding up of PMC.

     2.11. Related-Party Transactions. Except as specifically set forth by party
and amount in the PMC Financial Statements or the Schedule of Exceptions, no
employee, officer, or director of PMC or member of his or her immediate family
is indebted to PMC, nor is PMC indebted (or committed to make loans or extend or
guarantee credit) to any of them. To the best of PMC's knowledge, none of such
persons has any direct or indirect ownership interest in any firm or corporation
with which PMC is affiliated or with which PMC has a business relationship, or
any firm or corporation that competes with PMC, except that employees, officers,
or directors of PMC and members of their immediate families may own less than 1%
of the outstanding stock of publicly traded companies that may compete with PMC.
Except as set forth on the Schedule of Exceptions, no member of the immediate
family of any officer or director of PMC is directly or indirectly interested in
any contract with PMC including obligations of $5,000 or more.

     2.12. Permits. PMC has all franchises, permits, licenses, and any similar
authority necessary for the conduct of its business as now being conducted by
it, the lack of which could materially and adversely affect the business,
properties, prospects, or financial condition of PMC, and PMC believes it can
obtain, without undue burden or expense, any similar authority for the conduct
of its business as planned to be conducted. PMC is not in default in any
material respect under any of such franchises, permits, licenses, or other
similar authority.

     2.13. Environmental and Safety Laws. To the best of its knowledge, PMC is
not in violation of any applicable statute, law or regulation relating to the
environment or occupational

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health and safety, and to the best of its knowledge, no material expenditures
are or will be required in order to comply with any such existing statute, law
or regulation.

     2.14. Disclosure. PMC has fully provided each Investor with all the
information that such Investor has requested for deciding whether to purchase
the Bridge Securities and all information that PMC believes is reasonably
necessary to enable such Investor to make such decision. Neither this Agreement
or the other Bridge Financing Agreements, nor any other statements or
certificates made or delivered in connection herewith or therewith contains any
untrue statement of a material fact or omits to state a material fact necessary
to make the statements herein or therein not misleading.

     2.15. Business Plan and Cash Flow Forecast. The Business Plan updated as of
August, 2000 and attached hereto as Exhibit 2.15A and the Cash Flow Forecast
attached hereto as Exhibit 2.15B have been prepared in good faith by PMC and do
not contain any untrue statement of a material fact nor do they omit to state a
material fact necessary to make the statements made therein not misleading,
except that with respect to projections contained in the Business Plan and Cash
Flow Forecast, PMC represents only that such projections were prepared in good
faith and that PMC reasonably believes there is a reasonable basis for such
projections.

     2.16. Registration Rights. Except as provided in the Investors' Rights
Agreement to be signed pursuant to Section 5.08, PMC has not granted or agreed
to grant any registration rights, including "piggyback", incidental or demand
registration rights, to any person or entity.

     2.17. Title to Property and Assets. PMC owns its property and assets free
and clear of all mortgages, liens, loans and encumbrances, except such
encumbrances and liens that arise in the ordinary course of business solely by
operation of law and do not materially impair PMC's ownership or use of such
property or assets. With respect to the property and assets it leases, PMC is in
compliance with such leases and, to the best of its knowledge, holds a valid
leasehold interest free of any liens, claims or encumbrances. There are no
liens, claims or encumbrances whatsoever related to any of PMC's intellectual
property rights listed on Exhibit 2.08.

     2.18. PMC Financial Statements. Attached hereto as Exhibit 2.18 is a copy
of PMC's unaudited financial statements (balance sheet and statement of
operations, statement of changes in stockholders' equity and statement of cash
flows, including notes thereto) at March 31, 2000 and for the fiscal year then
ended, and its unaudited financial statements (balance sheet and statement of
operations) as of October 31, 2000 and for the seven-month period then ended
(the "PMC Financial Statements). The PMC Financial Statements have been prepared
in accordance with generally accepted accounting principles applied on a
consistent basis throughout the periods indicated and with each other, except
that the unaudited PMC Financial Statements may not Contain all footnotes
required by generally accepted accounting principles. The PMC Financial
Statements fairly present the financial condition and operating results of PMC
as of the dates, and for the periods, indicated therein, subject in the case of
the unaudited PMC Financial Statements to normal year-end audit adjustments.
Except as set forth in the PMC Financial Statements, PMC has no material
liabilities, contingent or otherwise, other than (i) liabilities incurred in the
ordinary course of business subsequent to October 31, 2000 and (ii) obligations
under contracts and commitments incurred in the ordinary course of business and
not required under generally accepted accounting principles to be reflected in
the PMC Financial Statements,

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which, in both cases, individually or in the aggregate, are not material to the
financial condition or operating results of PMC. PMC is not a guarantor or
indemnitor of any indebtedness of any other person, firm or corporation. PMC
maintains and will continue to maintain a standard system of accounting
established and administered in accordance with generally accepted accounting
principles.

     2.19. Employee Benefit Plans. PMC does not have any Employee Benefit Plan
as defined in the Employee Retirement Income Security Act of 1974.

     2.20. Tax Returns, Payments and Elections. PMC has filed all tax returns
and reports (including information returns and reports) as required by law, with
the exception of the Federal and State income tax returns for the year ended
March 31, 2000. These returns will be filed when the audit of the financial
statements is concluded and no taxes will be due. These returns and reports are
true and correct in all material respects. PMC has paid all taxes and other
assessments due, except any contested by it in good faith that are listed in the
Schedule of Exceptions. The provision for taxes of PMC as shown in the PMC
Financial Statements is adequate for taxes due or accrued as of the date
thereof. PMC has not elected pursuant to the Internal Revenue Code of 1986, as
amended (the "Code"), to be treated as a Subchapter S corporation or a
collapsible corporation pursuant to Section 1362(a) or Section 341(f) of the
Code, nor has it made any other elections pursuant to the Code (other than
elections that relate solely to methods of accounting, depreciation or
amortization) that would have a material effect on PMC, its financial condition,
its business as presently conducted or proposed to be conducted or any of its
properties or material assets. PMC has never had any tax deficiency proposed or
assessed against it and has not executed any waiver of any statute of
limitations on the assessment or collection of any tax or governmental charge.
None of PMC's federal income tax returns and none of its state income or
franchise tax or sales or use tax returns has ever been audited by governmental
authorities. Since the date of the PMC Financial Statements, PMC has not
incurred any taxes, assessments or governmental charges other than in the
ordinary course of business and PMC has made adequate provisions on its books of
account for all taxes, assessments and governmental charges with respect to its
business, properties and operations for such period. PMC has withheld or
collected from each payment made to each of its employees, the amount of all
taxes (including, but not limited to, federal income taxes, Federal Insurance
Contribution Act taxes and Federal Unemployment Tax Act taxes) required to be
withheld or collected therefrom, and has paid the same to the proper tax
receiving officers or authorized depositories.

     2.21. Insurance. PMC has in full force and effect fire and casualty
insurance policies, with extended coverage, sufficient in amount (subject to
reasonable deductibles) to allow it to replace any of its properties that might
be damaged or destroyed. Because PMC leases its facilities and does not
currently own significant personal property, it does not believe any such
insurance policy is currently needed and therefore, does not have one.

     2.22. Minute Books. PMC has provided APSF with true, complete and accurate
copies of all minutes of PMC's Shareholders and Board of Directors' meetings
that exist and are in PMC's possession for the period since PMC's completion of
its bankruptcy proceedings in December 1994. With respect to minutes that do not
exist or that are not in PMC's possession, PMC has made APSF aware in writing of
all activities at such meetings that are material to an investment decision by
the Investors.

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     2.23. Labor Agreements and Actions: Employee Compensation. To the best of
its knowledge, PMC has complied in all material respects with all applicable
state and federal equal employment opportunity and other laws related to
employment. PMC is not a party to or bound by any currently effective employment
contract, deferred compensation agreement, bonus plan, incentive plan, profit
sharing plan, retirement agreement, or other employee compensation agreement.

     2.24. Qualified Small Business Stock. As of the Closing: (i) PMC will be an
eligible corporation as defined in Section 1202(e)(4) of the Internal Revenue
Code of 1986, as amended (the "Code"), (ii) PMC will not have made any purchases
of its own stock during the one-year period preceding the Closing having an
aggregate value exceeding 5% of the aggregate value of all its stock as of the
beginning of such period and (iii) PMC's aggregate gross assets, as defined by
Code Section 1202(d)(2), at no time between PMC's inception and through the
Closing have exceeded or will exceed $50 million, taking into account the assets
of any corporations required to be aggregated with PMC in accordance with Code
Section 1202(d)(3).

     2.25. Additional Product Information.

          (a) Attached hereto as Exhibit 2.25(a) is a product comparison showing
     a comparison of PMC's DurAlt FC product to existing competitive products
     used for the bulk treatment of gasoline. Although all the information on
     that Exhibit is not complete, to the best of PMC's knowledge there is no
     data or reasonable estimations that can be made to fill in that missing
     information. Other than as disclosed on Exhibit 2.25(a), to the best of
     PMC's knowledge, there are no products that are used in bulk treating of
     gasoline that provide the same or similar performance enhancing
     capabilities as those of DurAlt FC.

          (b) Attached hereto as Exhibit 2.25(b) is a summary of test results on
     PMC's DurAlt FC(R) products. That summary is an accurate summary of the
     material results of those product tests. PMC has not participated in any
     tests of its current products that show results contrary to those shown on
     that Exhibit.

          (c) The total cost for chemicals and all processing to produce a
     gallon of DurAlt FC by Grow Automotive is $7.48 per gallon (FOB Plant) as
     of December 31, 2000.

     2.26. No Voting Agreements. To the best of PMC's knowledge, there are no
voting agreements or other understanding of any kind, written or oral,
concerning the voting of PMC's shares, other than this Agreement.

     3. Representations and Warranties of the Investors. Each Investor hereby
represents and warrants that:

     3.01. Authorization. Such Investor has full power and authority to enter
into this Agreement and the other Bridge Financing Agreements to which it is a
party, and each such agreement constitutes its valid and legally binding
obligation, enforceable in accordance with its terms except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of
general application affecting enforcement of creditors' rights generally, (ii)
as

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limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies, and (iii) to the extent the indemnification
provisions contained in the Investors' Rights Agreement may be limited by
applicable federal or state securities laws.

     3.02. Purchase Entirely for Own Account. This Agreement is made with such
Investor in reliance upon such Investor's representation to PMC, which by such
Investor's execution of this Agreement such Investor hereby confirms, that the
Bridge Securities to be received by such Investor and the Common Stock issuable
upon conversion or exercise thereof (collectively, the "Securities") will,
except as provided below, be acquired for investment for such Investor's own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that such Investor has no present
intention of selling, granting any participation in, or otherwise distributing
the same. By executing this Agreement, such Investor further represents that,
except as provided below, such Investor does not have any contract, undertaking,
agreement or arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect to any of the
Securities. The Investor will have the right to have the Series B Preferred
Stock redeemed by PMC and, in accordance with Section 4.16, the right to convert
the Bridge Securities into the securities that are offered in the Secondary
Placement. Furthermore, each Investor will be permitted to assign its rights and
obligations hereunder and its Units to other parties who agree to become a party
to this Agreement and can make all of the warranties and representations set
forth in Section 3.

     3.03. Disclosure of Information. Such Investor believes it has received all
the information it considers necessary or appropriate for deciding whether to
purchase the Bridge Securities. Such Investor further represents that it has had
an opportunity to ask questions and receive answers from PMC regarding the terms
and conditions of the offering of the Bridge Securities and the business,
properties, prospects and financial condition of PMC and it has exercised
reasonable diligence in requesting such information. The foregoing, however,
does not limit or modify the representations and warranties of PMC in this
Agreement or the right of the Investors to rely thereon.

     3.04. Investment Experience. Such Investor is an investor in securities of
companies in the development stage and acknowledges that it is able to fend for
itself, can bear the economic risk of its investment, and has such knowledge and
experience in financial or business matters that it is capable of evaluating the
merits and risks of the investment in the Bridge Securities. If other than an
individual, such Investor also represents it has not been organized for the
purpose of acquiring the Bridge Securities.

     3.05. Accredited Investor. Such Investor is an "accredited investor" within
the meaning of Securities and Exchange Commission ("SEC") Rule 501 of Regulation
D, as presently in effect.

     3.06. Restricted Securities. Such Investor understands that the Securities
it is purchasing are characterized as "restricted securities" under the federal
securities laws inasmuch as they are being acquired from PMC in a transaction
not involving a public offering and that under such laws and applicable
regulations such securities may be resold without registration under the Act,
only in certain limited circumstances. In this connection, such Investor
represents

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that it is familiar with SEC Rule 144, as presently in effect, and understands
the resale limitations imposed thereby and by the Act.

     3.07. Further Limitations on Disposition. Without in any way limiting the
representations set forth above, other than pursuant to a redemption or
reinvestment of any of the Bridge Securities in other securities of PMC, such
Investor further agrees not to make any disposition of all or any portion of the
Securities unless and until the transferee has agreed in writing for the benefit
of PMC to be bound by this Section 3, and any other Bridge Financing Agreements
to which the Investor is a party provided and to the extent this Section and
such agreements are then applicable, and:

          (a) There is then in effect a Registration Statement under the Act
     covering such proposed disposition and such disposition is made in
     accordance with such Registration Statement; or

          (b)(i) Such Investor shall have notified PMC of the proposed
     disposition and shall have furnished PMC with a detailed statement of the
     circumstances surrounding the proposed disposition, and (ii) if reasonably
     requested by PMC, such Investor shall have furnished PMC with an opinion of
     counsel, reasonably satisfactory to PMC that such disposition will not
     require registration of such shares under the Act. It is agreed that PMC
     will not require opinions of counsel for transactions made pursuant to Rule
     144 except in unusual circumstances.

          (c) Notwithstanding the provisions of Paragraphs (a) and (b) above, no
     such registration statement or opinion of counsel shall be necessary for a
     transfer by an Investor that is a partnership to a partner of such
     partnership or a retired partner of such partnership who retires after the
     date hereof, or to the estate of any such partner or retired partner or the
     transfer by gift, will or intestate succession of any partner to his or her
     spouse or to the siblings, lineal descendants or ancestors of such partner
     or his or her spouse, or a potential transfer by an Investor that has
     otherwise been agreed to by PMC in writing as of the date hereof, if the
     transferee agrees in writing to be subject to the terms hereof to the same
     extent as if he or she were an original Investor hereunder.

     3.08. Legends. It is understood that the certificates evidencing the
Securities will bear the following legend:

     "These securities have not been registered under the Securities Act of
     1933, as amended. They may not be sold, offered for sale, pledged or
     hypothecated in the absence of a registration statement in effect with
     respect to the securities under such Act or an opinion of counsel
     satisfactory to PMC that such registration is not required or unless sold
     pursuant to Rule 144 of such Act."

     4. Covenants of PMC. PMC agrees that, so long as any of the shares of
Series B Preferred Stock being sold to the Investors hereunder remain
outstanding, then PMC will comply with the following provisions set forth in
this Section 4, providing that the provisions of Section 4.07 relating to the
search for a new Chairperson or CEO and the additional securities that may

                                       10

<PAGE>

be issued pursuant to that section will remain binding and enforceable even
after there are no shares of Series B Preferred Stock outstanding.

     4.01. Shareholder Approvals. PMC agrees that within ten (10) days after the
Closing, it will send out proxies and then (within the minimum period of time
permitted by applicable law and PMC's organizational documents), obtain
shareholder approval for the following:

          (a) A 1-for-9 reverse stock split on all outstanding common stock,
     warrants and options (unless expressly stated otherwise, all references
     herein to shares of common stock will be to shares prior to that reverse
     split).

          (b) Increase in authorized shares of common stock to 40 (forty)
     million shares after reflecting that reverse split.

          (c) Approval of stock option plan for the issuance of 27,500,000
     (pre-split) shares for officers and directors of the Company subject to the
     terms and conditions of that plan and the Compensation Committee of the
     Board of Directors.

          (d) Election of members of the Board.

     4.02. Composition of Board of Directors. In order to provide a balanced
combination of both inside and outside directors with both general business and
industry-specific expertise and contacts, PMC will work with financing sources
to ensure that the optimal balance and skills of persons are included on its
Board. The Board, as so constituted, should position PMC well so as to maximize
the probability of achieving its goals as well as gain the confidence of the
investor community and provide the optimal public profile for a later public
offering by PMC. Of the Board composition of 7 persons, which reflects a
reasonable number of persons for PMC at this stage of its development, the
following are the proposed arrangements.

          (a) Two persons to be appointed by APSF at the Closing pursuant to
     that certain letter agreement between APSF and the Company dated January
     16, 2001 (the "APSF Engagement Letter"). APSF will relinquish one Board
     seat pursuant to the terms of the APSF Engagement Letter, should an
     appropriate financing source in the Secondary Placement desire Board
     representation. Any persons appointed to PMC's Board pursuant to this
     subsection are referred to herein as an "APSF Representative".

          (b) The continuation of Mark Nelson and Alan Smith as management Board
     members.

          (c) The addition of a CFO as a Board member. PMC will seek to retain a
     new CFO and appoint that CFO to the Board within twenty (20) days after the
     Closing.

          (d) The remaining two seats to be filled by appropriate persons as may
     be selected by existing management of PMC or at the request of the existing
     shareholders of PMC.

     4.03. Super Majority Approval. The Board shall require a super majority
(80% or more) on major issues. Major issues will include:

                                       11

<PAGE>

          (a) Selling, leasing, licensing or otherwise transferring all or
     substantially all of the assets of PMC, or any asset(s) with a fair market
     value exceeding $10,000 in a single transaction or series of related
     transactions.

          (b) Entering into any "Material Contracts" which shall be defined as
     contracts involving dollar commitments in excess of $5,000, and all
     employment related agreements.

          (c) Borrowing or incurring any indebtedness or granting any collateral
     or security (by way of guaranty or otherwise) for any indebtedness or
     obligations other than open accounts payable to unaffiliated third parties
     in the ordinary course of business.

          (d) Direct or indirect equity sale of greater than 15% of the
     outstanding stock through any single entity or through an offering.

          (e) Amending PMC's Certificate of Incorporation or Bylaws.

          (f) Amending or waiving any provisions of the Bridge Financing
     Agreements.

          (g) Causing a merger, consolidation or combination of PMC with another
     entity, or engaging in any stock splits, reverse stock splits or
     recapitalizations.

          (h) Repurchasing any interest in the equity of PMC, other than the
     Series B Preferred Stock.

          (i) Dissolving, liquidating or filing bankruptcy or seeking relief
     under any debtor relief law.

          (j) Making any distributions, whether in cash or property, including
     dividends, to any of the directors or shareholders of PMC (other than the
     holders of the Series B Preferred Stock) with respect to their ownership
     interests.

          (k) Causing a change in the nature of the business or the legal name
     of PMC.

          (l) Other than the payment of up to $2,000 per month in the aggregate
     to Richard Nelson and/or his affiliated company, Polar Research
     Corporation, engaging in any transaction with any relative, affiliate or
     related party of any equity owner, director, officer, or other member of
     PMC's Board of Directors, including, without limitation, the employment of
     any such party.

          (m) Engaging in any transactions or negotiations with respect to
     undertaking to make a registered public offering of any securities of PMC.

          (n) The election or removal of Board members or a change in the size
     of the Board, except that supermajority approval will not be required for
     the election of members of the Board in the manner specified in Section
     4.02 or for a change in the size of the Board in the manner specified in
     Section 4.07(c).

                                       12

<PAGE>

Notwithstanding the above supermajority provisions, in the event that PMC
receives a bona fide offer from a qualified purchaser that equals or exceeds Two
Hundred Fifty Million ($250 million) ("PMC Floor Valuation"), then such
supermajority provision shall be waived for that particular offer and
consideration of that particular offer shall be subject to vote of the majority
of the Board of Directors of PMC solely with respect to review and prospective
approval of such offer. The Board of Directors shall review on a quarterly basis
the PMC Floor Valuation and may adjust such valuation to not less than $100
million by majority vote of the Board of Directors, but may not decrease that
valuation to less than $100 million without the vote of at least 80% of the
Board of Directors, which super majority must include the affirmative vote of
the APSF Representative(s).

     4.04. Compliance with Nasdaq Board Committee Requirements. PMC shall
operate with respect to full compliance with all standards and requirements for
all board committees of a publicly traded entity. This shall include at minimum,
establishing an Audit Committee (as soon as sufficient independent Board members
are available) and a Compensation Committee, which committees shall be
established and operate in accordance with the standards set forth for companies
whose securities are listed on the NASDAQ Small Cap Market, unless any such
provision shall be waived by an APSF Representative.

     4.05. Compensation Committee and Process. An APSF Representative will be
automatically provided a seat on the Compensation Committee, which Committee
shall not be greater in number than three persons. The Compensation Committee
shall be established as of the Closing and, thereafter shall be required to
approve all compensation related matters.

     4.06. Chief Financial Officer. As of the Closing, PMC will retain Thomas G.
Murray as Chief Financial Officer of PMC on the terms outlined in Exhibit 4.06
hereto. The CFO will report to the President/CEO on an operating basis, and
periodically (but not less than quarterly) to the Board. Within twenty (20) days
after the Closing, PMC will enter into an employment agreement with Mr. Murray,
subject to approval of the Board, and then appoint Mr. Murray to the Board. The
CFO will be responsible for all the normal functions required of that position.
The CFO will ensure that periodic reports are prepared for the Board as to the
progress of PMC, any and all material risks facing PMC, and status of compliance
with all material prior obligations of PMC (and for pending material
obligations, the probability of future compliance). The CFO may be terminated by
the President/CEO only with the approval of a majority of the Board, which
majority must include the affirmative vote of the APSF Representative(s).

     4.07. Search for New Chairman or President and CEO.

          (a) PMC agrees that it will, at some point in the future, undertake a
     search for an additional person to fill the position of Chairman of the
     Board (or, at the option of Mark Nelson, a President and CEO). As Chairman
     of the Board, this person shall hold a non-executive (non-officer) position
     and shall serve at the pleasure of the Board. The suggested profile of this
     person is one of high standing and integrity, who has held a recognized
     position of leadership with a highly reputable, leading company or
     organization. The search for the Chairman of the Board shall be conducted
     by Mark Nelson who shall, should such a person be identified, recommend
     such person to the Board. The approval of the majority of the Board shall
     be required in order for such

                                       13

<PAGE>

     person to assume the Chairman position. This position shall be filled not
     later than three months prior to the initial filing of a registered public
     offering of securities by PMC.

          (b) Should this person not be added as Chairman of the Board within
     the above mentioned timeframe, then each investor in the Bridge Financing
     and the Secondary Placement (as well as APSF with respect to any stock
     and/or warrants it has received or is entitled to receive) shall be
     immediately issued 33% additional warrants or shares as a percentage of the
     total of all warrants that were received by these investors as a result of
     their original investment (excluding the issuance of the additional 33%
     itself). Such issuance shall be completed prior to completion of a
     registered public offering and shall enable these investors to fully
     participate in the sale of the underlying shares of the warrants as part of
     the registered public offering, although subject to any reasonable
     underwriter's restrictions as set forth in the Investor Rights' Agreement
     to which they are a party. Such arrangements shall be provided
     automatically to each and every investor who has invested in PMC in the
     Bridge Financing or the Secondary Placement. There shall be a provision
     that shall enable such 33% additional issuance to be waived if, on that
     date upon which the 33% additional issuance would become binding, in the
     sole estimation of the APSF Representative, such provision is not warranted
     in the light of strength of the PMC management team.

          (c) The Chairman of the Board will receive a Board seat. This Board
     seat may either be an additional Board seat, which shall bring the Board to
     8 persons, or shall replace one member of the Board (other than an APSF
     Representative), as shall be determined by majority vote of the Board. If
     the Board is increased to 8 persons, then an additional person shall be
     added to the Board within six months by majority vote of the Board so that
     the Board shall consist of an odd number of persons.

     4.08. Back (Accrued Wages), Advances and Accrued Consulting Fees. Attached
hereto as Exhibit 4.08 is a schedule showing each payee and amount of back wages
and consulting fees owed to each payee, as well as all advances outstanding at
the Closing. With respect to all unpaid back wages and consulting fees, other
than those to Mark Nelson, Alan Smith and Chandra Prakash, such amounts shall be
paid in full, and PMC shall obtain written release in evidence thereof, on or
before January 31, 2001. With respect to unpaid back wages and consulting fees
to Mark Nelson, Alan Smith and Chandra Prakash, such individuals will forever
waive and release PMC, in writing, with respect to 85% of such amounts, and PMC
shall pay the remaining 15% to such persons in common stock, and obtain written
releases in evidence thereof, on or before January 31, 2001. Furthermore, all
advances outstanding will be resolved in writing, without any payment or
liability on the part of PMC in connection therewith, on or before February 15,
2001, in form and substance reasonably satisfactory to APSF.

     4.09. Use of Proceeds and Treasury Functions.

          (a) Attached hereto as Exhibit 4.09 is a schedule showing the use of
     the proceeds from the sale of Bridge Securities. PMC shall spend the
     proceeds of the Bridge Financing in compliance with Exhibit 4.09 and shall
     provide the Investors and APSF with any information they request to verify
     that compliance.

                                       14

<PAGE>

          (b) PMC management will operate under such cash management
     restrictions and approvals as are reasonably acceptable to APSF.

     4.10. Reporting Provisions.

          (a) PMC agrees to make available to its shareholders, at minimum, all
     information which a company with securities listed on the NASDAQ Small Cap
     Market is required to provide to its shareholders. That information will be
     provided when it would be required to be provided by a Nasdaq listed
     company. This requirement will apply whether or not PMC has securities
     listed on NASDAQ. However, unless and until PMC is subject to the reporting
     requirements of the Securities Exchange Act of 1934, it will not be
     required to prepare annual, quarterly or current reports in the form
     required by the 1934 Act and the regulations promulgated thereunder.

          (b) For each fiscal year, PMC shall ensure that audited financials are
     prepared by an auditor experienced in public company reporting.

          (c) In addition, PMC agrees to provide the following to each and every
     Board Member:

               (i) Each month a brief written update report to the Board of
          Directors before the 15th day of the following month describing
          generally the major events and activities of the prior month. Such
          report shall make reference to (and in sufficient detail so as to be
          fully and accurately explanatory of company progress or lack thereof)
          the general activities with respect to PMC milestones, previews of any
          upcoming material contracts or engagements, and proposed amendments to
          the business plan or business model.

               (ii) On or before the 15th day of the following month, a
          compilation of the previous month's financial profit and loss and
          balance sheets, as well as statement of cash flows. Any major future
          expenditures contemplated that deviate from the previous budget shall
          also be provided for Board review.

               (iii) Within 30 days following the end of each fiscal year, a
          financial report detailing prior year expenditures versus budget and
          income statement, balance sheet and cash flow projections for the next
          24 month period. Such budget shall be subject to the approval of the
          Board of Directors.

     4.11. Selection of Future Auditors. Future audit/accounting/tax work will
be prepared by an audit firm experienced in public company reporting and will be
selected by the Audit Committee subject to approval by the board. PMC will
select the new auditors within thirty (30) days after the Closing.

     4.12. Compliance With Auditor's Report. PMC will retain their current
auditors, Hein & Associates, to prepare and deliver to PMC's Board of Directors,
within thirty (30) days after the Closing, a report regarding any changes (in
policy, procedures, or otherwise) that Hein & Associates believe should be
completed.

                                       15

<PAGE>

     4.13. Completion of 2000 Audit. The unaudited financial statements of PMC
as of March 31, 2000 and for the year then ended that are included in Exhibit
2.18 are a draft of audited financial statements prepared by PMC's current
auditors. Those auditors have not finalized those financial statements because
they have unpaid fees outstanding. PMC will pay those outstanding fees from the
proceeds of the sale of the Bridge Securities and obtain and deliver to the
Investors the audited 2000 financial statements within 15 days after the
Closing. Those final audited financial statements will be in the same form as
the draft of the audited financial statements included in Exhibit 2.18 and will
include the auditor's opinion thereon which shall be qualified, if at all, only
based on "going concern" limitations.

     4.14. Transfer Agent Engaged. On or before February 15, 2001, PMC will
select a Registrar and Transfer Agent (acceptable to APSF) and allocate all
stock registration and transfer functions to that Transfer Agent for all common
and preferred stock. Such Transfer Agent shall prepare and distribute to APSF a
full and complete stock ledger which shall include the name address, certificate
number, certificate type and number of shares of each shareholder prior to the
earlier of the completion of the Secondary Placement or February 28, 2001.

     4.15. Directors and Officer's Insurance. PMC will obtain directors and
officers liability insurance in such amounts and with such carriers as are
agreed to between PMC and APSF. PMC's CFO will be authorized and directed to
obtain that insurance as soon as possible after the date hereof. PMC's other
officers and directors will cooperate and assist the CFO in his efforts to
obtain that insurance as soon as possible.

     4.16. Right to Convert. The Investors will be given the opportunity to
convert the Bridge Securities into securities in the contemplated Secondary
Placement. PMC will notify each Investor of the commencement of the Secondary
Placement and the description of the securities being offered thereunder (the
"Secondary Securities"). If any Investor wants to exercise that option to
convert the Bridge Securities into the Secondary Securities, it must give notice
of its intent to convert at least five (5) days before the closing of the sale
of the minimum amount of Secondary Securities to be sold in the Secondary
Placement. In the event of such a conversion, the Bridge Warrants and Series B
Preferred Stock (and all accrued and unpaid dividends thereon) will be
surrendered and the Investor will receive: (1) the number of shares of common
stock that would have been received if those Bridge Warrants (including any
additional Bridge Warrants received pursuant to Section 4.07 or as a result of
PMC's extension of the redemption date of the Series B Preferred Stock) had been
fully exercised on that date and (2) an amount of Secondary Securities equal to
$25,000 per Unit that is converted divided by the purchase price of those
Secondary Securities.

     4.17. Management Contracts. All key members of the management group (Mark
Nelson, Alan Smith, and Chandra Prakash) shall, prior to the inception of the
Secondary Offering, execute and deliver (i) Employment Contracts in form and
substance approved by the Board pursuant to Section 4.03(b), and (ii) Invention
Assignment and Non-Competition Agreements with PMC in the form attached hereto
as Exhibit 4.17.

     4.18. Conversion of Debt Into Common Stock. Within 30 days after the
Closing, all amounts on Exhibit 2.05 that are not specifically listed to be paid
from the proceeds pursuant to

                                       16

<PAGE>

Exhibit 4.09 or specifically listed as to remain an outstanding debt will be
converted to common stock unless such requirement is waived in writing by APSF
in its sole discretion.

     4.19. Maximum Shares to be Issued for All Obligations. PMC will issue not
more than 35 million shares (pre-reverse split) of its common stock to satisfy
all of its obligations hereunder to issue shares for conversion of debt, the
resolution of royalty obligations, payment of unpaid back salaries, consulting
fees and advances, the conversion of the Series A Preferred Stock, the payment
of accrued interest and the settlement of any other liability or obligation of
PMC as of the Closing that is to be taken care of by the issuance of common
stock.

     5. Conditions of Investors' Obligations at Closing. The obligations of each
Investor under Section 1 of this Agreement are subject to the fulfillment on or
before the Closing of each of the following conditions, the waiver of which
shall not be effective against any Investor who does not consent thereto in
writing:

     5.01. Representations and Warranties. The representations and warranties of
PMC contained in Section 2 shall be true on and as of the Closing with the same
effect as though such representations and warranties had been made on and as of
the date of such Closing.

     5.02. Performance. PMC shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement that are
required to be performed or complied with by it on or before the Closing.

     5.03. Compliance Certificate. The President of PMC shall deliver to each
Investor at the Closing a certificate stating that the conditions specified in
Sections 5.01, 5.02 and 5.08-5.10 have been fulfilled and stating that there
shall have been no adverse change in the business, affairs, prospects,
operations, properties, assets or condition of PMC since the date of the PMC
Financial Statements.

     5.04. Qualifications. All authorizations, approvals, or permits, if any, of
any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the
Securities pursuant to this Agreement shall be duly obtained and effective as of
the Closing.

     5.05. Proceedings and Documents. All corporate and other proceedings in
connection with the transactions contemplated at the Closing and all documents
incident thereto shall be reasonably satisfactory in form and substance to the
Investors and they shall have received all such counterpart original and
certified or other copies of such documents as they may reasonably request. This
may include, without limitation, good standing certificates and certification by
PMC's Secretary regarding PMC's Certificate of Incorporation and Bylaws and
Board of Director and stockholder resolutions relating to this transaction.

     5.06. Board of Directors. At Closing, the Board of Directors of PMC shall
consist of 7 persons. Mark Nelson, Alan Smith, Richard Socia, Robert MacKenzie
and Terry Maynard shall continue as directors and the other existing directors
shall have submitted resignations, creating two vacancies on the Board of
Directors to be filled by persons designated by APSF. When Thomas G. Murray is
retained as CFO, Terry Maynard will resign from the Board to create a vacancy to
be filled by Thomas G. Murray.

                                       17

<PAGE>

     5.07. Opinions of Company Counsel. Each Investor shall have received from
Berry Moorman, P.C., counsel for PMC, an opinion, dated as of the Closing, in
the form attached hereto as Exhibit 5.07.

     5.08. Investors' Rights Agreement. PMC and each Investor shall have entered
into the Investors' Rights Agreement in the form attached as Exhibit 5.08.

     5.09. Royalty Obligations. The Nelson Family will execute Patent Assignment
Affirmation and Royalty Release Agreements in the form attached hereto as
Exhibit 5.09, wherein: (a) any and all outstanding obligations for royalties
shall be fully released by the Nelson family; (b) the Nelson family shall agree
to release PMC with respect to any further royalty interests of any kind related
to the technology; (c) the Nelson family will reaffirm that the licenses and/or
assignments are all binding and enforceable in favor of PMC; and (d) the Nelson
family releases their security interest in the patents.

     5.10. Security Agreement. PMC shall execute a Security Agreement in the
form attached hereto as Exhibit 5.10 giving the Investors a security interest in
the collateral specified therein to secure the amounts owed with respect to the
Series B Preferred Stock. PMC will also execute and file financing statements
with the States of Colorado and Michigan, and other necessary offices, to
perfect that security interest.

     6. Conditions of PMC's Obligations at Closing. The obligations of PMC to
each Investor under this Agreement are subject to the fulfillment on or before
the Closing of each of the following conditions by that Investor:

     6.01. Representations and Warranties. The representations and warranties of
the Investors contained in Section 3 shall be true on and as of the Closing with
the same effect as though such representations and warranties had been made on
and as of the Closing.

     6.02. Payment of Purchase Price. Each Investor shall have delivered their
respective purchase price specified on Schedule A attached hereto.

     6.03. Qualifications. All authorizations, approvals, or permits, if any, of
any governmental authority or regulatory body of the United States or of any
state that are required in connection with the lawful issuance and sale of the
Securities pursuant to this Agreement shall be duly obtained and effective as of
the Closing.

     7. Miscellaneous.

     7.01. Indemnification.

          (a) PMC agrees to indemnify and hold harmless each Investor, its
     parent companies, subsidiaries, affiliates and their respective officers,
     directors, employees, agents, attorneys and controlling persons (each an
     "Indemnified Person") from and against any and all losses, claims, damages,
     liabilities and expenses, joint or several, to which any such Indemnified
     Person may become subject arising out of or in connection with the
     transactions contemplated by this Agreement, or any claim, litigation,
     investigation or proceedings relating to the foregoing ("Proceedings")
     regardless of

                                       18

<PAGE>

     whether any of such Indemnified Persons is a party thereto, and to
     reimburse such Indemnified Persons for any legal or other expenses as they
     are incurred in connection with investigating or defending any of the
     foregoing, provided that the foregoing indemnification will not, as to any
     Indemnified Person, apply to losses, claims, damages, liabilities or
     expenses to the extent that they are finally judicially determined to have
     resulted from the willful misconduct or gross negligence of such
     Indemnified Person. If for any reason the foregoing indemnification is
     unavailable to any Indemnified Person or insufficient to hold it harmless,
     then PMC shall contribute to the amount paid or payable by such Indemnified
     Person as a result of such loss, claim, damage, liability or expense in
     such proportion as is appropriate to reflect not only the relative benefits
     received by PMC on the one hand and such Indemnified Person on the other
     hand but also the relative fault of PMC and such Indemnified Person, as
     well as any relevant equitable considerations. The indemnity, reimbursement
     and contribution obligations of PMC under this Section shall be in addition
     to any liability which PMC may otherwise have to an Indemnified Person and
     shall be binding upon and inure to the benefit of any successors, assigns,
     heirs and personal representatives of PMC and any Indemnified Person.

          (b) Promptly after receipt by an Indemnified Person of notice of the
     commencement of any Proceedings, such Indemnified Person will, if a claim
     in respect thereof is to be made against PMC, notify PMC in writing of the
     commencement thereof; provided that (i) the omission to so notify PMC will
     not relieve it from any liability which it may have hereunder except to the
     extent it has been materially prejudiced by such failure and (ii) the
     omission to so notify PMC will not relieve it from any liability which it
     may have to an Indemnified Person otherwise than on account of this
     indemnity agreement. In case any such Proceedings are brought against any
     Indemnified Person and it notifies PMC of the commencement thereof, PMC
     will be entitled to participate therein, and to the extent that it may
     elect by written notice delivered to the Indemnified Person, to assume the
     defense thereof, with counsel reasonably satisfactory to such Indemnified
     Person; provided that if the defendants in any such Proceedings include
     both the Indemnified Person and PMC and the Indemnified Person shall have
     concluded that there may be legal defenses available to it which are
     different from or additional to those available to PMC, the Indemnified
     Person shall have the right to select separate counsel to assert such legal
     defenses and to otherwise participate in the defense of such Proceedings on
     behalf of such Indemnified Person. PMC will be liable to such Indemnified
     Person for expenses incurred by the Indemnified Person in connection with
     the defense thereof.

          (c) Each Investor agrees to indemnify and hold harmless PMC, its
     subsidiaries, affiliates and their respective officers, directors,
     employees, agents, attorneys and controlling persons (each a "Company
     Indemnified Person") from and against any and all losses, claims, damages,
     liabilities and expenses, joint or several, to which any such Company
     Indemnified Person may become subject arising out of or in connection with
     the transactions contemplated by this Agreement, or any Proceedings
     relating to the foregoing, regardless of whether any of such Company
     Indemnified Persons is a party thereto, and to reimburse such Company
     Indemnified Persons for any legal or other expenses as they are incurred in
     connection with investigating or defending any of the foregoing, provided
     that the foregoing indemnification will not apply unless,

                                       19

<PAGE>

     and only to the extent that, the amounts for which PMC Indemnified Persons
     are seeking indemnification are finally and judicially determined to have
     resulted from that Investor violating any of its representations or
     warranties contained in this Agreement. Except as otherwise provided for in
     this paragraph, the procedures for indemnification by the Investors, and
     the obligations of PMC Indemnified Persons with respect thereto, shall be
     the same as provided above with respect to the indemnity obligations of
     PMC.

     7.02. Survival of Warranties. The warranties, representations and covenants
of PMC and the Investors contained in or made pursuant to this Agreement shall
survive the execution and delivery of this Agreement and the Closing and shall
in no way be affected by any investigation of the subject matter thereof made by
or on behalf of the Investors or PMC.

     7.03. Successors and Assigns. Except as otherwise provided herein, the
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties (including
transferees of any Securities). Nothing in this Agreement, express or implied,
is intended to confer upon any party other than the parties hereto or their
respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.

     7.04. Governing Law. This Agreement shall be governed by and construed
under the laws of the State of Texas as applied to agreements among Texas
residents entered into and to be performed entirely within Texas.

     7.05. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     7.06. Titles and Subtitles. The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.

     7.07. Notices. Unless otherwise provided, any notice required or permitted
under this Agreement shall be given in writing and shall be deemed effectively
given upon personal delivery to the party to be notified or upon deposit with
the United States Post Office, by registered or certified mail, postage prepaid
and addressed to the party to be notified at the address indicated for such
party on the signature page hereof, or at such other address as such party may
designate by ten (10) days' advance written notice to the other parties.

     7.08. Finder's Fee. Each party represents that it neither is nor will be
obligated for any finders' fee or commission in connection with this
transaction, other than fees to be paid by PMC to APSF. Each Investor agrees to
indemnify and to hold harmless PMC from any liability for any commission or
compensation in the nature of a finders' fee (and the costs and expenses of
defending against such liability or asserted liability) for which such Investor
or any of its officers, partners, employees, or representatives is responsible.
PMC agrees to indemnify and hold harmless each Investor from any liability for
any commission or compensation in the nature of a finders' fee (and the costs
and expenses of defending against such liability or asserted liability) for
which PMC or any of its officers, employees or representatives is responsible.

                                       20

<PAGE>

     7.09. Expenses. Irrespective of whether the Closing is effected, PMC shall
pay all costs and expenses that it incurs with respect to the negotiation,
execution, delivery and performance of this Agreement. If any action at law or
in equity is necessary to enforce or interpret the terms of this Agreement or
the other Bridge Financing Agreements, the prevailing party shall be entitled to
reasonable attorney's fees, costs and necessary disbursements in addition to any
other relief to which such party may be entitled.

     7.10. Amendments and Waivers. Any term of this Agreement may be amended and
the observance of any term of this Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively), only with
the written consent of PMC and the holders of 80% of the Common Stock issuable
or issued upon conversion of the Series B Preferred Stock. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any securities purchased under this Agreement at the time outstanding
(including securities into which such securities are convertible), each future
holder of all such securities, and PMC.

     7.11. Severability. If one or more provisions of this Agreement are held to
be unenforceable under applicable law, such provision shall be excluded from
this Agreement and the balance of the Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms.

     7.12. Aggregation of Stock. All shares of the Series B Preferred Stock held
or acquired by affiliated entities or persons shall be aggregated together for
the purpose of determining the availability of any, rights under this Agreement

     7.13. Entire Agreement. This Agreement and the documents referred to herein
constitute the entire agreement among the parties and no party shall be liable
or bound to any other party in any manner by any warranties, representations, or
covenants except as specifically set forth herein or therein.

     7.14. Knowledge of PMC. Any reference herein to items within the knowledge
of PMC shall include items within the actual knowledge of Mark Nelson, Otis
Nelson, Richard Nelson, Alan Smith or Chandra Prakash.

                                       21

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                              POLAR MOLECULAR CORPORATION

                                        By:   /s/ Mark L. Nelson
                                              ----------------------------------
                                                  Mark L. Nelson, President

                                              INVESTOR

Number of Units : 8                           /s/ E. Bruce McClendon
                                              ----------------------------------
Total Purchase Price $200,000                     E. Bruce McClendon, M.D.

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                              POLAR MOLECULAR CORPORATION

                                        By:   /s/ Mark L. Nelson
                                              ----------------------------------
                                                  Mark L. Nelson, President

                                              INVESTOR

                                              CAMBRIDGE STRATEGIES
                                              GROUP, LLC

Number of Units : 16                    By:   /s/
                                              ----------------------------------
Total Purchase Price $400,000           Name:
                                              ----------------------------------
                                        Its:
                                              ----------------------------------

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                              POLAR MOLECULAR CORPORATION

                                        By:   /s/ Mark L. Nelson
                                              ----------------------------------
                                                  Mark L. Nelson, President

                                              INVESTOR

Number of Units : 5                           /s/ Peter K. Aman
                                              ----------------------------------
Total Purchase Price $125,000                     Peter K. Aman

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                              POLAR MOLECULAR CORPORATION

                                        By:   /s/ Mark L. Nelson
                                              ----------------------------------
                                                  Mark L. Nelson, President

                                              INVESTOR

                                              BISCHOFF FAMILY PARTNERS

Number of Units : 2                     By:   /s/
                                              ----------------------------------
Total Purchase Price $50,000            Name:
                                              ----------------------------------
                                        Its:
                                              ----------------------------------

<PAGE>

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

                                              POLAR MOLECULAR CORPORATION

                                        By:   /s/ Mark L. Nelson
                                              ----------------------------------
                                                  Mark L. Nelson, President

                                              INVESTOR

Number of Units : 1                           /s/ C. Don Van Wart
                                              ----------------------------------
Total Purchase Price $25,000                      C. Don Van Wart<PAGE>

                                                                   Exhibit 10.42

                               PLACEMENT AGREEMENT

     This Placement Agreement ("Agreement") is made as of this 21st day of
December 2001, between Berthel Fisher & Company Financial Services, Inc.,
("Placement Agent") and Polar Molecular Corporation, (the "Company").

                                    RECITALS

     WHEREAS, desires to enter into an Agreement And Plan of Merger (the "Merger
Agreement") among itself, Murdock Communications Corporation ("Murdock") and a
wholly owned subsidiary of Murdock; and

     WHEREAS, as a condition precedent to the Merger, the Company must raise
capital; and

     WHEREAS, the Company desires to offer to sell up to Seven Hundred Thousand
Dollars ($700,000) (the "Interim Offering") of 10% Secured Convertible Notes
(the "Interim Promissory Notes"), which shall be accomplished in two parts, the
Initial Interim Offering during which the parties will attempt to raise Three
Hundred Thousand Dollars ($300,000) (the "Initial Interim Offering") and the
Subsequent Interim Offering during which the parties will attempt to raise Four
Hundred Thousand Dollars ($400,000) (the "Subsequent Initial Offering") both of
which will be raised from a limited number of accredited investors which
includes Company insiders; and

     WHEREAS, the Company wishes to offer to sell (the "Offering") up to One
Million Five Hundred Thousand Dollars ($1,5000,000) of 10% Secured Convertible
Notes (hereinafter referred to as the "Promissory Notes"). From time to time the
Interim Promissory Notes and the Promissory Notes may be collectively referred
to as the "Securities". In the event of the sale of the entire One Million Five
Hundred Thousand Dollars of the Promissory Notes there may be an additional over
allotment of up to Five Hundred Thousand Dollars ($500,000), all of which, if
sold, will be considered part of the Promissory Notes. The Securities shall be
sold only to "accredited investors" as defined in Rule 501(a) of Regulation D
promulgated by the Securities Act of 1933; and

     WHEREAS, the Interim Offering and the Offering is to be effected by a
private placement that is exempt from registration under the Securities Act of
1933, as amended (the "1933 Act"), and the regulations promulgated thereunder;
and

     WHEREAS, the parties contemplate that the Company will prepare a Private
Placement Memorandum regarding the Offering and

<PAGE>

the Promissory Notes (the "Memorandum") which shall include, among other things,
a current business plan; and

     WHEREAS, the Securities to be sold through the Interim Offering and the
Offering are to be sold only to a limited number of accredited investors
(collectively, the "Purchasers" and individually a "Purchaser") on the basis of
the terms set forth in the Memorandum; and

     NOW, THEREFORE, in consideration of the foregoing, the premises and
representations contained herein, and the payment of valuable consideration,
receipt of which is hereby acknowledged by each party hereto, it is agreed as
follows:

                                      TERMS

1.   Engagement of Placement Agent and Exclusivity.

The Company engages Placement Agent to act as exclusive Placement Agent for the
Interim Offering and the Offering through the "Offering Period", however
Placement Agent has the right to use the services of other broker-dealers as set
out in paragraph 9 herein. On the basis of the representations, warranties and
covenants herein contained, but subject to the conditions herein set forth,
Placement Agent is hereby appointed as exclusive Placement Agent for the Interim
Offering and the Offering through the Interim Offering Period and the Offering
Period for the purpose of finding Purchasers for the Securities.

2.   The Interim Offering Period and the Offering Period.

     a.   This Agreement shall be executed at substantially the same time as the
          Merger Agreement and the Interim Offering Period shall commence upon
          execution of this Agreement. The Interim Offering Period shall
          terminate at the close of business twenty (20) days after the
          execution of the Agreement (the "Interim Offering Termination Date")
          and may be extended by the mutual agreement of the Company and the
          Placement Agent for an additional twenty (20) days (or shorter)
          period, in which case the term Interim Offering Termination date shall
          include the later date.

     b.   The Offering Period shall commence as of the date setout in the
          Memorandum (the "Commencement Date"). The Offering Period shall
          terminate at the close of business ninety (90) days after the
          Commencement Date (the "Termination Date"). The Termination Date may
          be extended by the parties for one (1) additional ninety (90) day (or
          shorter) period thereafter, upon the agreement of the Company and the
          Placement Agent, in which case the term "Termination Date" shall mean
          such later date.

<PAGE>

3.   Acceptance of Appointment.

Subject to the observance of and performance by all the parties hereto of all
their obligations to be observed and performed hereunder, and to the execution
and delivery by Placement Agent of a copy of this Agreement as hereinafter
provided, Placement Agent accepts such agency and agrees to use its best efforts
during the Interim Offering Period and the Offering Period to find Purchasers
for the Securities on the terms and conditions herein set forth.

4.   The Securities.

The Securities to be offered pursuant to the Interim Offering and the Offering
shall be structured generally as follows:

     a.   The Interim Offering shall consist of up to Seven Hundred Thousand
          Dollars ($700,000) of Interim Promissory Notes with each Interim
          Promissory Note in a minimum amount of Ten Thousand Dollars ($10,000).

     b.   The Offering shall consist of up to One Million Five Hundred Thousand
          Dollars ($1,500,000) in Promissory Notes, with each Promissory Note in
          a minimum amount of Ten Thousand Dollars ($10,000).

     c.   At the Purchaser's option, the Interim Promissory Notes shall be
          convertible into common stock of the Company at the time of a merger
          of the Company with a publicly traded company or before. The
          Promissory Notes shall be mandatorily convertible into common stock of
          the Company at the time of a merger of the Company with a publicly
          traded company, or before, at the discretion of the Holder of the
          Promissory Notes, all of which shall be more fully described in the
          Memorandum. At the Company's discretion, the Company may decide to
          accept subscriptions for Securities in amounts less than the minimum
          amount stated above. Along with each Interim Promissory Note and each
          Promissory Note the Company shall reserve such common stock sufficient
          to meet the demand in the event all the Securities are converted into
          common stock. The conversion rate(s) for the Securities shall be fixed
          and determined, based on a capitalization table as determined by and
          mutually agreed upon by the Company and the Placement Agent.

5.   Sale of Securities and Closings.

     a.   Immediately after the receipt by Placement Agent from a subscriber of
          an executed Subscription Agreement accompanied by payment of the
          purchase price for the Securities subscribed for (the "Purchase
          Price"),

<PAGE>

          Placement Agent will notify the Company and will deliver to the
          Company the Subscription Agreement and the Purchaser representative's
          certificate (if applicable) and evidence of such payment.

     b.   The Company shall, within five (5) calendar days following receipt of
          an executed Subscription Agreement and evidence of payment, elect to
          accept or reject the subscription and with respect to any Subscription
          Agreement rejected by the Company, the Company shall return the
          Subscription Agreement along with the purchase price tendered by the
          subscriber if then held by the Company to the Placement Agent, for
          return to the subscriber.

     c.   If subscriptions for more than the total amount of the Interim
          Offering or the Offering are received, the order in which
          subscriptions are accepted by the Company shall govern selection among
          qualified Purchasers.

     d.   The date on which the first actual closing for the sale and purchase
          of the Securities occurs, and each subsequent actual closing made
          thereafter in accordance with the terms hereof, shall be called a
          "Closing." The first Closing ("Initial Closing") and additional
          Closings shall be held at the offices of the Company or at such other
          place and at such time as the parties shall mutually agree or such
          Closing may be accomplished by preparation of all closing paperwork by
          the Placement Agent, which will be forwarded to the Company by
          overnight delivery via recognized commercial carrier.

     e.   Checks or wire transfers from the Purchasers for subscriptions to the
          (i) Interim Offering shall be made out to F&M Bank Interim Offering
          Account FBO Polar Molecular Corporation (the "Interim Offering
          Account") and (ii) for the Offering shall be made out to F&M Bank
          Escrow Account FBO Polar Molecular Corporation (the "Escrow Account")
          and shall be forwarded to the Placement Agent at the address stated
          herein. Upon receipt of any funds for subscriptions by subscribers for
          the purchase of the Securities, Placement Agent will deposit said
          funds into either the Interim Offering Account or the Escrow Account,
          whichever is applicable, until the time of each Closing at which time
          the funds will be forwarded to the Company. Placement Agent may have
          to delay Closings from time to time until said funds held in either
          the Interim Offering Account or the Escrow Account are deemed to be

<PAGE>

          available funds in accordance with the procedures set out by F&M Bank.

     f.   The Purchase Price paid by any person whose subscription is rejected
          shall be returned by the Placement Agent to such person in accordance
          with the Memorandum.

6.   Compensation.

     a.   Upon execution of this Agreement a non-refundable due diligence fee in
          the amount of Twenty Five Thousand Dollars ($25,000) will be due to
          the Placement Agent from the Company (the "Due Diligence Fee"),
          payable as set forth in Section 6.b(1) below.

     b.   As compensation for the Placement Agent's services in the Interim
          Offering, payment shall be as follows:

          (1)  Out of the proceeds of the Initial Interim Offering, the Company
               shall pay to the Placement Agent the Due Diligence Fee set out
               above.

          (2)  Out of the proceeds` of the Subsequent Interim Offering, the
               Company shall pay to the Placement Agent a fee equal to $40,000
               in the event that the entire amount of the Subsequent Interim
               Offering is raised by the parties or in the event that less than
               the entire amount of the Subsequent Interim Offering is raised
               then the Company shall pay to the Placement Agent a fee equal to
               ten percent (10%) of the amount raised in the Subsequent Interim
               Offering.

     c.   As compensation for Placement Agent's services in finding subscribers
          for the Promissory Notes in the Offering, the Company hereby agrees to
          pay to Placement Agent, out of proceeds of the Offering, at each
          Closing, a commission ("Commission") in an amount equal to ten percent
          (10%) of the gross cash proceeds from the sale of the Promissory Notes
          to be disbursed to the Company at such Closing. In addition the
          Company shall pay to the Placement Agent, at each Closing during the
          Offering, a non accountable expense allowance equal to 3% of the gross
          cash proceeds to be distributed to the Company from the sale of the
          Promissory Notes and a due diligence fee equal to 2% of the gross cash
          proceeds to be distributed to the Company from the sale of the
          Promissory Notes, said 2% due diligence fee will be

<PAGE>

          paid to Houlihan Smith for completion of its due diligence and other
          activities it performs on behalf of the Company. .

     d.   As further compensation for Placement Agent's services in finding
          subscribers for the Securities sold during the Offering, at the final
          Closing, the Company hereby agrees to deliver to Placement Agent a
          Warrant (the "Placement Agent Warrant") for the purchase of the number
          of shares of common stock of the Company equal to 10% of the total
          dollar amount of the Promissory Notes issued as a result of the
          Offering. The Placement Agent Warrant shall have an exercise price
          equal to 120% of the price of the underlying stock of the Offering at
          the time of the Closing. The Placement Agent Warrant shall expire
          three (3) years from the date of issuance and shall contain the normal
          terms and conditions of warrants of this size and type, which shall
          include but not necessarily be limited to the right to a cashless
          exercise, piggyback registration rights and standard anti dilution
          provisions.

7.   Payment of Expenses and Fees.

     a.   Whether or not the Offering contemplated by this Agreement is
          consummated or this Agreement is terminated, the Company will pay all
          costs and expenses incident to the performance of its obligations
          under this Agreement, including, without limitation, costs and
          expenses incident to the following:

          i.   The preparation and printing or photocopying of copies of the
               Memorandum and all instruments and documents prepared in
               connection with the Offering and the Memorandum; and

          ii.  The establishment of the exemption of the Securities from
               qualification or registration under the securities or "blue sky"
               laws of the states and other jurisdictions reasonably designated
               by Placement Agent as those in which Placement Agent or any
               broker/dealer employed by it intends to sell, or offer for sale,
               the Securities; and

          iii. Services of counsel for the Company, including disbursements
               incurred in connection therewith; and

          iv.  Placement Agent shall have no liability to the Company with
               respect to any of the foregoing.

<PAGE>

     b.   If the Company does not close the Offering, the Company shall
          reimburse Placement Agent for all reasonable out-of-pocket expenses
          (which shall not include compensation or benefits for the personnel of
          Placement Agent) incurred by Placement Agent in connection with this
          Agreement, including but not limited to Placement Agent's attorney's
          fees, travel expenses, documents preparation and other professional
          advisors if required, which Placement Agent does not expect to exceed
          $15,000. Placement Agent shall provide an invoice for all such
          expenses to be reimbursed and payment of any expenses shall be made
          only after receipt by the Company of such invoices.

     c.   Except as otherwise specifically provided in this Agreement, Placement
          Agent and the Company shall each pay its respective expenses incident
          to this Agreement and the transactions contemplated hereby, and no
          party to this Agreement shall have any liability for such expenses
          incurred by any other party.

8.   Investor Suitability Standards and Accredited Investor Status.

     Every Purchaser participating in the Interim Offering or the Offering must:

     a.   Be an accredited investor as defined by Rule 501(a) of Regulation D
          promulgated pursuant to the Securities Act of 1933.

     b.   Have no need for liquidity and have adequate means of providing for
          current needs and contingencies.

     c.   Be able to accept limitations on transferability because there is not
          now any public market for the Securities, and the transferability of
          the Securities is affected by restrictions on resales imposed by
          federal securities laws and the laws of some states.

     d.   Have, alone or with a purchaser representative(s), such knowledge and
          experience in financial matters, that are capable of evaluating,
          either alone or with their purchaser representative(s), the merits and
          risks of an investment in the Securities.

9.   Soliciting Dealers.

In connection with the performance of its obligation under this Agreement,
Placement Agent may, in its sole discretion, use the services of broker-dealers
("Soliciting Dealers") who are members in good standing of the National
Association of Securities

<PAGE>

Dealers, Inc. (NASD) and, as compensation for their services, may pay to
Soliciting Dealers an amount up to the amount of any commission received by
Placement Agent pursuant to the terms hereof. Such amount will be paid to
Soliciting Dealers by Placement Agent only out of the compensation received by
Placement Agent in respect of such sales of Securities as described in Section
6. Placement Agent shall reimburse any Soliciting Dealer for the Soliciting
Dealer's due diligence expenses incurred in connection with the Offering and the
Company shall have no obligation to reimburse Placement Agent for such due
diligence expense payments to Soliciting Dealers. The arrangements between
Placement Agent and any Soliciting Dealer shall be set forth in a Soliciting
Dealer Agreement obligating the Soliciting Dealer to fulfill all requirements
imposed on Placement Agent by this Agreement.

10.  Representations, Warranties and Covenants of the Company.

The Company represents, warrants and covenants to and agrees with Placement
Agent, as of the date hereof, and as of each Closing, as follows:

     a.   The Company's Certificate of Incorporation authorizes the issuance of
          the Interim Promissory Notes, the Promissory Notes and Warrants and
          the shares of common stock issuable upon exercise of the Warrants and
          that the Company has reserved and will continue to reserve shares of
          common stock so that at the time of the exercise of the Warrants there
          will be an adequate number of Shares of common stock available to be
          issued.

     b.   All action required to be taken by the Company as a condition to the
          offer and sale of the Securities to qualified Purchasers has been
          taken or will have been taken prior to the Closing.

     c.   Upon (i) payment of the Purchase Price specified in each Subscription
          Agreement and acceptance of each Subscription Agreement by the Company
          and (ii) the execution and delivery by each Purchaser of such
          additional documents, if any, as may reasonably be requested by the
          Company or as set forth in the Memorandum, each accepted Purchaser
          will be the owner of the Securities subscribed for and entitled to all
          the benefits thereof.

     d.   The Company is duly and validly organized and is a validly existing
          Delaware Corporation.

     e.   During the Offering Period and at all times at or prior to each
          Closing, the Memorandum, to the extent such

<PAGE>

          information is available, will not contain an untrue statement of a
          material fact or omit to state a material fact necessary in order to
          make the statements therein, in light of circumstances under which
          they were made, not misleading.

     f.   The Company and its officers, agents (excluding Placement Agent),
          affiliates and employees have not taken or failed to take any actions,
          whether or not in connection with the issuance of the Securities,
          which action or failure to act conflict with, or otherwise make
          unavailable, the exemption for the offering and sale of the Securities
          from the registration provisions of the 1933 Act and by Regulation D;
          and will not, either directly or indirectly, sell, offer for sale,
          solicit offers to subscribe for or buy, or otherwise approach or
          negotiate in respect of the securities or any other interest in the
          Company during the Offering Period, except as provided for in this
          Agreement or in the Memorandum.

     g.   This Agreement has been duly and validly authorized, executed and
          delivered by or on behalf of the Company and, except insofar as the
          enforceability of the indemnification provisions herein may be subject
          to challenge and except as enforceability may be limited by the
          application of bankruptcy, insolvency, reorganization, moratorium or
          other similar laws affecting the rights of creditors generally and by
          judicial limitations on the right of specific performance, constitutes
          the valid and legally binding agreements of the Company.

     h.   The execution and delivery of this Agreement, the observance and
          performance hereof, and the consummation of the transactions
          contemplated herein, does not and will not constitute a material
          breach of, or a material default under, any instrument or agreement by
          which the Company is bound, and does not and will not contravene any
          existing material law, decree or order applicable to the Company.

     i.   The Company has not made and will not make an offer or sale of the
          Securities on the basis of any communications or documents relating to
          the Company or the Securities, except the Memorandum and the exhibits
          thereto, other documents supplied or prepared by the Company and
          reviewed by Placement Agent and delivered to prospective Purchasers
          for use in making an offer or sale of the Securities, and any cover or
          transmittal letter in respect of the forgoing.

<PAGE>

     j.   The Company will sell the Securities only to Accredited Investors, as
          that term is defined in Regulation D.

     k.   In making any offer or sale of the Securities, the Company and its
          officers and directors shall comply with the provisions of the 1933
          Act, the Securities Exchange Act of 1934, as amended (the "1934 Act"),
          and the applicable securities or "Blue sky" laws of the jurisdictions
          in which the Company makes offers or sales of the Securities.

     l.   The Company will exercise reasonable care to assure that the
          Purchasers to whom it sells the Securities are not underwriters within
          the meaning of Sections 2(11) of the 1933 Act. In that connection the
          Company will: (i) make reasonable inquiry to determine that the
          Purchaser is acquiring the Securities for his, her or its own account
          for investment purposes; and (ii) obtain from the Purchaser a signed
          written agreement (as provided in the Memorandum) that the Securities
          and the common stock of the Company issuable upon expiration of
          Warrants will not be sold without registration under the 1933 Act, in
          the absence of an opinion of counsel satisfactory to counsel for the
          Company that an exception from registration is available. Such
          agreement shall acknowledge the understanding that the Company has no
          intention to register the Securities under the 1933 Act; and (iii) if
          the Company knows or has reason to believe that a Purchaser to whom it
          sells any Securities relied upon the advice of a Purchaser
          Representative as defined in Rule 501(h) of Regulation D in connection
          with evaluating the merits and risks of a purchase of the Securities,
          the Company will obtain; (iii.a) the Purchaser's written
          acknowledgment that he used such representative in evaluating the
          merits and risks of the prospective investment; and (iii.b) a
          Purchaser Representative Certificate (in a form approved by Placement
          Agent completed and signed by such representative).

     m.   The Company and its officers, directors and authorized agents will
          offer to sell, or solicit offers to subscribe for or buy, the
          Securities only in those states and other jurisdiction where permitted
          so to do under applicable law and regulations. The Company and its
          officers, directors, agents and employees; (i) have not at any time,
          either directly or indirectly, sold, offered for sale, solicited
          offers to subscribe for or buy, or otherwise approached or negotiated
          in respect of the sale of, the Securities, except in connection with
          this Offering; and (ii) except as disclosed in the

<PAGE>

          Memorandum, and to their knowledge, have not taken or failed to take
          any action, whether in connection with the Offering or otherwise,
          which action or failure to act conflicts or would conflict with, the
          exemption of the sale of the Securities from the registration
          provisions of the 1933 Act afforded by the Act and by Regulation D;
          and hereafter they will not, either directly or indirectly, sell,
          offer for sale, solicit offers to subscribe for or buy, or otherwise
          approach or negotiate in respect of, the Securities or any other
          interest in the Company prior to or during the Offering Period, except
          as provided for in this Agreement, in connection with this Offering.

11.  Representations, Warranties and Covenants of Placement Agent.

Placement Agent represents and warrants to and agrees with the Company, at the
date hereof, and as of each Closing, as follows:

     a.   Placement Agent is duly and validly organized and is a validly
          existing Iowa Corporation, is duly licensed as a broker-dealer and
          registered as such under the 1934 Act, is a member in good standing of
          the NASD, is in compliance with all rules and regulations under the
          1934 Act and the NASD Conduct Rules, and is duly registered as a
          broker/dealer in every state in which it intends to offer or sell the
          Securities.

     b.   Neither Placement Agent, nor its directors, officers or beneficial
          owners of 10% or more of any class of its equity securities, has a
          record of conduct which would cause the "bad boy" provisions of Rule
          262 of the regulations promulgated under the 1933 Act to apply to the
          transactions contemplated by this Agreement.

     c.   This Agreement has been duly and validly authorized, executed and
          delivered by and on behalf of Placement Agent and, except insofar as
          the enforceability of the indemnification provision herein may be
          subject to challenge and except as enforceability may be limited by
          the application of bankruptcy, insolvency, reorganization, moratorium
          or other similar laws affecting the rights of creditors generally and
          by judicial limitations on the right of specific performance,
          constitute the valid and legally binding agreement of Placement Agent.

     d.   The execution and delivery of this Agreement, the observance and
          performance hereof, and the consummation of the transactions
          contemplated herein and in the Memorandum, does not and will not
          constitute a material

<PAGE>

          breach or material default under, any instrument or agreement by which
          Placement Agent is bound, and does not and will not contravene any
          existing material law, decree or order applicable to Placement Agent.

     e.   Placement Agent has not made and will not make an offer or sale of the
          Securities on the basis of any communications or documents relating to
          the Company or the Securities, except the Memorandum and the exhibits
          thereto, other documents supplied or prepared by the Company and
          delivered to potential Purchasers or to Placement Agent for use in
          making an offer or sale of the Securities, and any cover or
          transmittal letter in respect of the foregoing that has been reviewed
          and approved by the Company. Placement Agent will promptly deliver a
          copy of each amendment or supplement to the Memorandum to all offerees
          then being solicited by it, and to each Purchaser (obtaining from the
          latter a confirmation of its, his or her receipt of same).

     f.   Placement agent will offer and sell the Securities only to Accredited
          Investors, as that term is defined in Regulation D, and will retain
          appropriate records for a period of four years to evidence Placement
          Agent's conduct of the Offering in conformance with the requirements
          of that Regulation.

     g.   In making any offer or sale of the Securities, Placement Agent shall
          comply with the provisions of the 1933 Act, the 1934 Act, and the
          applicable securities or "blue sky" laws of the jurisdictions in which
          Placement Agent makes offers or sales of Preferred Stock.

     h.   Placement Agent will exercise reasonable care to assure that the
          Purchasers to whom it sells the Securities are not underwriters within
          the meaning of Section 2(11) of the 1933 Act. In that connection
          Placement Agent will: (i) make reasonable inquiry to determine that
          the Purchaser is acquiring the Securities for his, her or its own
          account for investment purposes; and (ii) obtain from each Purchaser a
          signed written agreement (as provided in the Memorandum) that the
          Securities will not be sold without registration under the 1933 Act,
          in the absence of an opinion of counsel to the Company that an
          exemption from registration is available. Such agreement shall
          acknowledge the understanding that the Company has no intention to
          register the Securities under the 1933 Act, other than as may be
          expressly provided in a registration rights agreement between the
          Company and the Purchaser.

<PAGE>

     i.   If Placement Agent knows or has reason to believe that a Purchaser to
          whom it sells any Security relied upon the advice of a Purchaser
          representative as defined in Rule 501(h) of Regulation D in connection
          with evaluating the merits and risks of a purchase of the Securities,
          Placement Agent will obtain and deliver to the Company (i) the
          Purchaser's written acknowledgment that he or she used such
          representative in evaluating the merits and risks of the prospective
          investment; and (ii) a Purchaser Representative Certificate (in the
          form approved by Placement Agent) completed and signed by such
          representative.

     j.   Placement Agent and its authorized agents will offer to sell, or
          solicit offers to subscribe for or buy, the Securities only in those
          states and other jurisdictions where the Company and counsel have
          advised it that it is permitted so to do under applicable law and
          regulations.

     k.   Placement Agent will not offer the Securities for sale or solicit any
          offers to purchase the Securities, or otherwise negotiate with any
          person in respect of the Securities, on the basis of any
          advertisement, article, notice or other communication published in any
          newspaper, magazine, or similar medium or broadcast over television or
          radio or hold any seminar or meeting with respect to the Securities
          whose attendees have been invited by any general solicitation or
          general advertising.

12.  Additional Covenants of the Company.

The Company hereby covenants and agrees with Placement Agent as follows:

     a.   The Company will deliver to Placement Agent at its above address, such
          additional number of copies of the Memorandum (and any amendments or
          supplements thereto), prepared by the Company and approved by
          Placement Agent, as the Placement Agent shall reasonably request.

     b.   The Company shall provide such reasonable cooperation and assistance
          to the Placement Agent in the sale of the Securities as Placement
          Agent may request.

     c.   The Company and its employees, affiliates and agents will not at any
          time, either directly or indirectly, sell or offer for sale, solicit
          offers to subscribe for or buy, or otherwise approach or negotiate in
          respect of the sale of the Securities, or any other interest in the
          Company, if such activity would cause the Offering

<PAGE>

          contemplated hereby to not be exempt from the registration provisions
          of the 1933 Act and to Regulation D promulgated thereunder, or to
          violate the applicable securities or "blue sky" laws of any state or
          other jurisdiction that Placement Agent shall reasonably designate as
          one in which Placement Agent or any broker/dealer employed by
          Placement Agent intends to sell the Securities or offer the Securities
          for sale.

     d.   The Company will use its best efforts in cooperation with Placement
          Agent promptly to establish the exemption of the Securities from
          qualification or registration under the securities or "blue sky" laws
          of such states and jurisdictions as Placement Agent may reasonably
          request as those in which Placement Agent or any broker/dealers
          employed by it intends to sell the Securities, or offer the Securities
          for sale (provided that the Company shall not be required to qualify
          to do business in any jurisdiction in which it has not been previously
          qualified); it will furnish Placement Agent's counsel with copies of
          all written communications and documentation, whether sent or
          received, with regard to the foregoing; and Company will pay all
          reasonable costs and expenses incurred in connection with the
          foregoing.

     e.   Except as may be otherwise prohibited by applicable "blue sky" laws,
          the Company will make available to Placement Agent, and Placement
          Agent is authorized on behalf of the Company to make available to each
          Purchaser and his or her representatives, including his or her
          Purchaser Representative with respect to this investment, prior to the
          sale of the Securities to such Purchaser, the opportunity to ask
          questions of, and receive answers from the Company concerning the
          Company, or the terms and conditions of the Offering which the Company
          possesses or can acquire without unreasonable effort or expense that
          is necessary to verify the accuracy of the information contained in
          the Memorandum and of any other information referred to herein.

     f.   The Company shall furnish Placement Agent with all information and
          data concerning the Company as Placement Agent shall reasonably
          request, and will provide Placement Agent with reasonable access to
          the Company's officers, directors, employees, independent certified
          public accountants and legal counsel.

     g.   All information made available to Placement Agent by the Company or
          any of its officers, directors,

<PAGE>

          employees, accountants or attorneys will be complete and correct in
          all material respects and will not contain any untrue statement of
          material fact or, in the aggregate, omit to state a material fact
          necessary in order to make the statements made not misleading.

     h.   During the Interim Offering Period and the Offering Period and for a
          period of thirty-six (36) months thereafter, or until such earlier
          date as the Company is required to file reports pursuant to Sections
          13 or 15(d) of the 1934 Act, the Company will use its best efforts to
          furnish directly to Placement Agent, three (3) days prior to the
          delivery of such communication to holders of the Securities, each
          communication that shall be sent by the Company to the holders of
          Securities including, without limitation, any annual or interim
          financial or other reports of the Company, at any time sent to the
          holders, and shall, in all events, provide such materials to the
          Placement Agent not later than it provides such materials to the
          holders.

     i.   If, during the Initial Offering Period, the Offering Period, or at any
          time at or prior to any Closing, any event relating to or affecting
          the Company or any other event shall come to the attention of the
          Company as a result of which it would or might be appropriate to amend
          or supplement the Memorandum in order that the Memorandum not contain
          an untrue statement of a material fact or omit to state a material
          fact necessary in order to make the statements therein, in light of
          the circumstances under which they were made, not misleading, the
          Company will notify Placement Agent immediately of such event and, if
          Placement Agent's counsel and counsel for the Company are of the
          opinion that it is necessary to amend or supplement the Memorandum,
          the Company will forthwith prepare and furnish to Placement Agent a
          reasonable number of copies of an amendment or amendments of, or
          supplement or supplements to, the Memorandum that will so amend or
          supplement the Memorandum, and the same shall be satisfactory in form
          and substance to Placement Agent and its counsel. The Company will
          promptly furnish to Placement Agent such information with respect to
          the Company or the Memorandum as Placement Agent may from time to time
          reasonably request.

     j.   The Company will complete, execute, deliver and file with the SEC such
          copies of Form D, as and when required by Rule 503 of Regulation D.

     k.   The Company has obtained or will obtain any required consents of the
          holders of any classes of its

<PAGE>

          securities to the Offering and the issuance of the Securities on the
          terms contemplated hereby.

     l.   During the Initial Offering Period, the Offering Period, and for a
          period of thirty-six (36) months thereafter, or until such earlier
          date as the Company is required to file reports pursuant to Sections
          13 or 15(d) of the 1934 Act, the Company will furnish directly to
          Placement Agent, monthly financial statements, to the extent provided
          by the Company to the members of its Board of Directors and
          shareholders of the Company.

13.  Opinion of Counsel.

The Company agrees to deliver the opinion of the Company's counsel to the effect
that (subject to reasonable qualifications and assumptions):

     a.   The Company is a corporation validly existing and in good standing as
          a corporation under the laws of the State of Delaware and that the
          Company retains the requisite corporate power to carry on the business
          described in the Memorandum.

     b.   The execution and delivery of this Agreement and the issuance of the
          Interim Promissory Notes and the Promissory Notes will not violate or
          conflict with the Certificate of Incorporation or Bylaws of the
          Company, or any material agreement known to such counsel to which the
          Company is a party.

     c.   This Agreement has been duly authorized by all requisite corporate
          action and executed and delivered by the Company.

     d.   The Interim Promissory Notes and the Promissory Notes, when executed
          and delivered by the Company, have been duly authorized and will
          constitute valid, binding and enforceable obligations of the Company
          in accordance with their respective terms.

     e.   The Company has obtained or will obtain any required consents of the
          holders of any classes of its securities to the Interim Offering and
          the Offering and the issuance of the Interim Promissory Notes and the
          Promissory Notes on the terms contemplated herein.

     f.   Such counsel knows of no litigation or governmental investigation
          against the Company.

<PAGE>

     g.   The Interim Offering and the Offering, if the Interim Promissory Notes
          and the Promissory Notes are sold only to accredited investors in
          transactions not involving any public offering, will be exempt from
          registration under the 1933 Act.

14.  Conditions of Placement Agent's Obligations.

The Company has entered into an Agreement and Plan of Merger, dated December 19,
2001 among the Company, Murdock Communications Corporation ("Murdock"), and a
wholly owned subsidiary of Murdock. Notwithstanding anything stated elsewhere in
the Agreement, the Company also acknowledges and agrees the Placement Agent is
also engaged by and is the Investment Banker on behalf of Murdock and further
the Company waives any conflicts of interest or potential conflicts of interest
which may exist on the Placement Agent's part. Placement Agent's obligations
hereunder, and the obligations of Purchasers, are subject to the accuracy of and
compliance with the representations and warranties herein of the Company, to the
observance and performance by the Company of its obligations and covenants
hereunder and as undertaken in the Memorandum, and to the following further
conditions (any of which may be waived in writing in whole or in part by
Placement Agent).

     a.   As relates to the Interim Offering, there shall have been an account
          established for the benefit of the Company, controlled by the
          Placement Agent so that, (i) out of the initial $300,000 raised in the
          Initial Offering, Placement Agent can direct payment of One Hundred
          Twenty Five Thousand Dollars ($125,000) to Murdock as a loan from
          Polar and Twenty Five Thousand Dollars ($25,000) to the Placement
          Agent in payment of the Due Diligence Fee pursuant to paragraph 6.b(1)
          and (ii) out of the Subsequent Initial Offering the Placement Agent
          will direct the payment of Seventy Five Thousand Dollars ($75,000) to
          Murdock as a loan from Polar and Forty Thousand Dollars ($40,000) (or
          if less then the entire amount of the Subsequent Interim Offering is
          raised then the Ten Percent (10%) fee, pursuant to paragraph 6.b(2)
          shall be paid to Placement Agent). Any funds from either the Initial
          Interim Offering or the Subsequent Interim Offering not paid to either
          Murdock or the Placement Agent will be paid to the Company.

     b.   An Escrow Account shall have been established at F&M Bank, into which
          will be deposited the proceeds from the Offering. Upon the raise of
          the entire $1.5 Million the Placement Agent shall pay out the
          following amounts; (i) Two Hundred Eighty Two Thousand Dollars
          ($282,000) to the Company, (ii) One hundred Thirty Nine Thousand
          Dollars ($139,000) to Murdock as a loan from

<PAGE>

          Polar and (iii) the commission, expense allowance and fees set out in
          paragraph 6.c to the Placement Agent. The remainder of the funds
          raised in the Offering shall remain in the Escrow Account until such
          time as the Company shall provide verifiable evidence of enforceable
          contracts which indicate projected sales in a minimum amount of
          Fifteen Million Dollars ($15,000,000) for the first 12 months
          following the Offering, said projected revenues being capable of
          reasonable verification by Placement Agent (at which time the
          remaining amount shall be paid to the Company).

     c.   The Company shall have engaged Houlihan, Smith & Company as the
          Company's Investment Bankers (or some other reasonably acceptable
          firm) to issue a fairness opinion and/or independent report as the
          case may be on the prospective merger transaction and a due diligence
          report which shall be made available to Purchasers and potential
          Purchasers

     d.   The Company shall provide to the Placement Agent a list of investors
          in the Company and the financial status of the said investors so that
          the Placement Agent may determine whether or not the said investors
          are accredited, for solicitation during the Interim Offering and the
          Offering. The Company investor/shareholders and the merger candidate
          public company investor/shareholders will only be solicited subject to
          their respective accredited investor status.

     e.   Currently the Company has a lien holder(s) which has a lien on the
          Company's technology (the "Lienholder"), the main asset of the
          Company. The Company shall obtain the consent of the Lienholder so
          that the holders of the Securities are secured by collateral, on a
          secondary pari passu basis with the said existing Lienholder and
          obtain an agreement with the Lienholder so that the Lienholder agrees
          to convert its promissory notes subject to the same terms (other than
          conversion rate) as the Securities.

     f.   After the Initial Closing, Placement Agent may request in writing
          certificates dated the date of each Closing, signed by the Company to
          the effect that all representations and warranties of the Company
          contained herein are true and correct in all material respects with
          the same effect as though made expressly at and as of the time of the
          Closing.

     g.   Placement Agent's counsel shall have been furnished promptly, upon
          written request, such instruments and

<PAGE>

          other documents as they may reasonably require for the purpose of
          enabling them to pass upon the sale of the Securities as herein
          contemplated and in order to evidence the accuracy and completeness in
          all material respects of any and all of the representations or
          warranties, or the fulfillment of any and all of the conditions,
          contained in this Agreement or in the Memorandum, and all such
          instruments and other documents shall be reasonably satisfactory in
          form and substance to such counsel; all actions taken by the Company
          in connection with the sale of the Securities as herein contemplated
          shall be reasonably satisfactory to Placement Agent and its counsel;
          and the Memorandum (and the supplements or amendments thereto) shall,
          at all times during the Offering Period and at the time of each
          Closing, be reasonably satisfactory in form and substance to Placement
          Agent and its counsel.

     h.   If any of the conditions specified in this Section shall not have been
          fulfilled when and as required by this Agreement to be fulfilled, all
          of Placement Agent's obligations under this Agreement may be
          terminated in writing or by telegram at any time at or prior to
          Closing, except as relating to prior Closings which may have already
          occurred, and any such termination shall be without liability to
          Placement Agent, provided that the obligations under Sections
          10,16,19,23 and 24, hereof shall nevertheless survive and continue
          thereafter.

15.  Conditions of the Obligations of the Company.

     a.   At the Initial Closing, the Company shall receive Placement Agent's
          certificate, dated the Closing date (i) as to the number of Purchasers
          to whom the Securities were sold and (ii) stating that the
          representations and warranties contained in Section 11 hereof are true
          and correct in all material respects with the same effect as though
          made expressly at and as of the time of Closing.

     b.   Placement Agent shall not have taken or failed to take any action, at
          any time at or prior to the Closing, that, in the opinion of the
          Company, conflicts or would conflict with, or otherwise make
          unavailable, the exemption for the Interim Offering and the Offering
          and sale of the Securities from the registration provisions of the
          1933 Act afforded by the Act or by Regulation D.

     c.   If any of the conditions specified in this Section shall not have been
          fulfilled when as required by the

<PAGE>

          Agreement to be fulfilled, all the obligations of the Company, under
          this Agreement may be terminated in writing or by telegram at any time
          at or prior to the Initial Closing, and any such termination shall be
          without liability to the Company provided that the obligations under
          Sections 9,11,16,19,23 and 24 hereof shall nevertheless survive and
          continue thereafter.

16.  Indemnification.

     a.   The Company agrees to indemnify and hold harmless Placement Agent, and
          each person, if any, who controls Placement Agent, and each of
          Placement Agent's officers, directors, agents and employees: (i)
          against any and all loss, liability, claim, damage and expense
          whatsoever arising out of a breach by the Company of any of its
          representations and warranties and covenants herein or out of any
          untrue statement or alleged untrue statement of a material fact
          contained in the Memorandum or any document filed with the securities
          agency of any state or other jurisdiction or the omission or alleged
          omission therefrom of a material fact necessary in order to make the
          statements therein, in light of the circumstances under which they
          were made, not misleading, except to the extent that such untrue
          statement or alleged untrue statement or omission or alleged omission
          is made in reliance upon and in conformity with written information
          furnished Placement Agent or its counsel specifically for use with
          reference to Placement Agent or its affiliates in the preparation of
          the memorandum or the preparation of any document filed with the
          securities agency of any state or other jurisdiction; (ii)against any
          and all loss, liability, claim, damage and expense whatsoever to the
          extent of the aggregate amount paid in settlement or satisfaction of
          any judgment or litigation, commenced or threatened, or of any claim
          whatsoever, based upon any breach or untrue or alleged omission
          referred to in clause (i) above, if such settlement is effected with
          the written consent of the Company; and (iii) against any and all
          expense whatsoever incurred in investigating, preparing or defending
          against any litigation, commenced or threatened, or and claim
          whatsoever, based upon any breach or untrue statement or omission, or
          any alleged untrue statement or omission, referred to in clause (i)or
          (ii) above, to the extent that any such expense is not paid under
          clause (i)or (ii) above.

     b.   Placement Agent agrees to indemnify and hold harmless the Company's
          officers, directors, agents, employees and controlling persons (within
          the meaning of the 1933

<PAGE>

          Act); (i) against any and all loss, liability, claim, damage and
          expense whatsoever arising out of Placement Agent's breach of any of
          its representations and warranties and covenants herein or out of any
          untrue statement or alleged untrue statement of a material fact
          contained in the Memorandum or any document filed with the securities
          agency of any state or other jurisdiction or the omission or alleged
          omission therefrom of a material fact necessary in order to make the
          statements therein, in light of the circumstances under which they
          were made, not misleading, to the extent such untrue statement or
          omission conforms to information furnished in writing by Placement
          Agent or on its behalf specifically for inclusion in the Memorandum;
          (ii) against any and all loss, liability, claim, damage and expense
          whatsoever to the extent of the aggregate amount paid in settlement or
          satisfaction of any judgment or litigation, commenced or threatened,
          or of any claim whatsoever, based upon any breach or untrue or alleged
          untrue statement or omission or alleged omission referred to in clause
          (i)above, if such settlement is effected with Placement Agent's
          written consent; and (iii)against any and all expenses whatsoever
          incurred in investigating, preparing or defending against any
          litigation, commenced or threatened, or any claim whatsoever based
          upon any breach or untrue statement or omission, or any alleged untrue
          statement or omission referred top in clauses (i) or (ii) above, to
          the extent that any such expense is not paid under clause (i) or (ii)
          above.

     c.   If the preceding provisions of this Section or any portion thereof or
          the application thereof to any person or circumstances shall to any
          extent be invalid or unenforceable, the parties hereto hereby agree
          that a right of contribution shall exist on the part of the party that
          otherwise would have been the indemnified party under the aforesaid
          provisions (hereinafter referred to as "Contribution Recipient") to
          the extent necessary to reflect the relative benefits received by the
          Company and the Placement Agent from the offering of the Securities.
          The relative benefits received by the Company and the Placement Agent
          shall be deemed to be in the same proportion as the total net proceeds
          from the Interim Offering and the Offering received by the Company
          bear to the expenses reimbursements, commissions and other
          compensation paid to the Placement Agent. No person guilty of a
          fraudulent misrepresentation shall be entitled to contribution from
          any person not guilty of fraudulent misrepresentation.

<PAGE>

     d.   Within a reasonable time after the assertion of any claim against any
          party hereto (or any person who controls such party) in connection
          with the Interim Offering, the Offering or sale of the Securities,
          such party shall give notice of such claim to the other parties
          hereto. An indemnifying party or contributor under this Section shall
          have the right to direct, at such party's own expenses and through
          counsel of such party's own choosing, the contest and defense against
          any such claim and in any litigation, proceedings or settlement
          negotiation with respect thereto. The indemnity set forth in this
          Section shall be in addition to any liability that either of the
          parties hereto may otherwise have.

     e.   No indemnification shall be available to any party hereunder in any
          instance in which liability of that party is found by a court or
          arbitrator of competent jurisdiction to have resulted primarily and
          directly from gross negligence or willful misconduct.

17.  Termination.

     a.   Placement Agent may terminate this Agreement at any time in writing or
          by telegram at any time at or prior to the Initial Closing and any
          such termination shall be without further liability of either party to
          the other, provided that the obligations under Sections 10,16,19,23
          and 24 shall nevertheless survive and continue thereafter.

     b.   Except as otherwise provided herein, the agency of Placement Agent
          hereunder, which is coupled with an interest, is not terminable by the
          Company without Placement Agent's written consent. The Company may
          terminate this Agreement only by written notice to Placement Agent and
          by refusal to accept any proceeds of this Offering. The Company may
          not terminate this Agreement if it has accepted any proceeds of the
          Offering at a Closing as a result of the efforts of Placement Agent.

     c.   If the Company terminates this Agreement, and within twelve (12)
          months following the termination, the Company either (i) obtains
          financing of any kind from contacts introduced to the Company by
          Placement Agent or its agents during the Term of this Offering or (ii)
          sells its assets to contacts introduced to the Company (or affiliates
          of such contacts) by Placement Agent, the Company shall pay to
          Placement Agent a fee of Ten percent (10%) of the amount of any
          financing or the selling price, provided that loans to the Company

<PAGE>

          having a maturity of more than one year shall be included in the
          consideration received by the Company. Within 30 days after the
          termination of this Agreement by the Company, Placement Agent shall
          provide the Company a list of contacts introduced to the Company by
          Placement Agent.

     d.   If this Agreement is terminated by the Company for any reason other
          than a breach by Placement Agent of its obligations hereunder, the
          obligations under Sections 9,11,16,19,23 and 24 and this Section shall
          nevertheless survive and continue thereafter.

18.  Sole Agreement of the Parties.

This Agreement represents the sole agreement of the parties with respect to the
subject matter set forth herein, and supersedes all other agreements of the
parties as to the subject matter.

19.  Representations, Warranties and Agreements to Survive Closing.

All representations, warranties covenants and agreements contained in this
Agreement or contained in certificates submitted pursuant thereto shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of placement Agent or any person who controls Placement Agent, or
by or on behalf of the Company, or any person who controls the Company.

20.  Notices.

All communications hereunder shall be in writing and, if sent to Placement
Agent, shall be mailed (by U.S. certified mail, return receipt requested),
delivered, telecopied, telexed, or telegraphed:

     If to Placement Agent:   Berthel Fisher & Company
                              Financial Services, Inc
                              701 Tama Street, Box 609
                              Marion, Iowa 52302
                              Attn: President

     If to the Company:       Polar Molecular Corporation
                              4600 S. Ulster Street, Suite 700
                              Denver, Colorado 80237
                              Attn: President

or to either party at such other address as such party shall designate by notice
given as hereinabove provided.

<PAGE>

Communications shall be deemed given upon receipt and may be given by counsel
for the party serving the same.

21.  Parties.

This Agreement shall inure to the benefit of and be binding upon Placement
Agent, the Company and the conditions and provisions hereof are intended to be
and are for the sole and exclusive benefit of the parties hereto and their
respective successors, and for the benefit of no other person, except as
otherwise herein specifically provided.

22.  Nature of Obligation.

The obligations of Placement Agent to the Company shall be solely those
contractual obligations provided in this Agreement. No fiduciary relationship is
created hereby. Placement Agent may not bind the Company to any contract.

23.  Arbitration.

Any controversy or claim arising out of or relating to this Agreement or breach
thereof shall be settled by final and binding arbitration, in accordance with
the arbitration rules of the American Arbitration Association, and judgment upon
the award rendered by the arbitrator may be entered in any court having
jurisdiction, including a United States District Court, pursuant to the Federal
Arbitration Act. The cost of the arbitrator shall be shared equally by the
parties. The parties recognize that this paragraph means that certain claims
will be litigated and reviewed before an impartial arbitrator instead of before
a court of law and/or jury, but desire the many benefits of the arbitration
process over court proceedings, including speed of resolution, lower costs and
fees, and more flexible rules of evidence.

25.  Governing Law.

This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Iowa applicable to agreements under seal made and to be
performed wholly within such state.

26.  Counterparts.

This Agreement may be executed in a number of counterparts, all of which
together shall for all purposes constitute one agreement, binding on all parties
notwithstanding that all parties have not signed the same counterpart.

27.  Non-Assignability.

This Agreement may not be assigned by either party (in whole or in part) without
the prior written consent of the other party.

<PAGE>

28.  Miscellaneous.

All titles or captions herein are for convenience only and shall not be deemed a
part hereof. All pronouns and any variations thereof shall be deemed to refer to
the masculine, feminine, neuter, singular or plural, as the identity of the
person or persons or entity may require. The terms "person" and "persons" shall
include reference to individuals, partnerships, corporations, trusts and other
entities. The terms `law" and "laws" shall include, without limitation, any
rules and regulations promulgated under a statute. Any payment of a sum to be
made hereunder by the Company to Placement Agent shall be made by check payable
to the order of Placement Agent.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                            Polar Molecular Corporation

                                            Name: /s/ Mark L. Nelson
                                                  ------------------------------
                                            Title: President-CEO

                                            Berthel Fisher & Company
                                            Financial Services, Inc.

                                            Name: /s/ Thomas J. Berthel
                                                  ------------------------------
                                            Title: CEO

<PAGE>

                                   AMENDMENT A

This Amendment A (the "Amendment") is attached to and made a part of that
Placement Agreement dated as of December 21, 2001 (the "Agreement") which was
executed by and between Berthel Fisher & Company Financial Services, Inc.
(Placement Agent) and Polar Molecular Corporation (the "Company").

All terms defined in the Agreement will have the same meaning when used in this
Amendment.

Whereas, the parties desire to amend several of the terms of the Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

     1.   The first WHEREAS paragraph on page 1 of the Agreement shall be
          amended by deleting the paragraph in its entirety and replacing it
          with the following:

          "WHEREAS, the Company has entered into an Agreement And Plan of Merger
          (the "Merger Agreement") among itself, Murdock Communications
          Corporation ("Murdock") and a wholly owned subsidiary of Murdock; and

     2.   In the forth WHEREAS paragraph on page 1 of the Agreement, the
          numerical reference to One Million Five Hundred Thousand Dollars shall
          be "$1,500,000" rather than "$1,5000,000".

     3.   Paragraph 2.a. of the Agreement shall be deleted in its entirety and
          shall be replaced with the following:

          "This Agreement shall be effective and the Interim Offering Period
          shall commence upon execution. The Interim Offering Period shall
          terminate at the close of business February 28, 2002 (the "Interim
          Offering Termination Date) and may be extended by the mutual agreement
          of the Company and the Placement Agent for an additional thirty (30)
          days (or shorter) period in which case the term Interim Offering
          Termination Date shall include the later date."

     4.   Paragraph 4.c. of the Agreement shall be amended in the following
          manner:

          In the forth line of the paragraph the phrase "shall be mandatorily
          convertible" shall be deleted and replaced with the phrase "may be
          convertible".

<PAGE>

     5.   Paragraph 4 of the Agreement shall be amended by adding the following
          new subparagraph d.

          "In addition to the Interim Promissory Notes and the Promissory Notes
          described above, as a part of the Interim Offering and the Offering,
          the Company will also issue Warrants to the Investors (the
          "Warrants"), which will grant to Investors the right to purchase the
          number of shares of Common stock of the Company equal to the number of
          shares of Common Stock into which the related Interim Promissory Notes
          or the Promissory Notes may be converted."

     6.   Paragraph 6.d. of the Agreement shall become paragraph 6e. and the
          fo1lowing shall be added as the new paragraph 6d.

          "As compensation for Placement Agent's services with respect to
          investors who have received Warrants as a result of investing in the
          Interim Offering and in the Offering, the Company agrees to pay to the
          Placement Agent a commission in an amount equal to ten percent (10%)
          of the gross cash proceeds from the purchase of the Companies Common
          Stock as the result of the exercise of the Warrants (other than
          Warrants issued due to the direct efforts of the Company), said
          commission shall be paid to the Placement Agent within 5 days of the
          exercise by any investor."

     7.   Paragraph 6.d. of the Agreement shall become paragraph 6e., and the
          former Paragraph 6.d. shall be amended by deleting the paragraph in
          its entirety and replacing it with the following.

          "As further compensation for Placement Agent's services in finding
          subscribers for the Securities sold during the Interim Offering and
          the Offering, at the Closings, the Company hereby agrees to deliver to
          the Placement Agent warrants (the "Placement Agent Warrants") for the
          purchase of the number of shares of common stock of the Company equal
          to 10% of the total number of shares of Common Stock issuable upon
          conversion of the Interim Promissory Notes (other than Interim
          Promissory Notes issued due to the direct efforts of the Company) and
          the Promissory Notes issued as a result of the Interim Offering and
          the Offering respectively. The Placement Agent Warrants shall have an
          exercise price equal to 120% of the conversion price of the Common
          Stock subject to the Interim Promissory Notes and the Promissory Notes
          offered in the Interim Offering and the Offering, respectively, at the
          time of the Closings. The Placement Agent Warrants shall expire three
          years from the date of

<PAGE>

          issuance and shall contain the normal terms and conditions of warrants
          of this size and type, which shall include but not necessarily be
          limited to the right to a cashless exercise, piggyback registrations
          rights and standard anti dilution provisions."

     8.   Paragraph 14.b. of the Agreement shall be amended by deleting the
          paragraph in its entirety and replacing it with the following:

          "An Escrow Account shall have been established at F&M Bank, into which
          will be deposited the proceeds from the Offering. As funds are raised
          for the Offering, there will be Closings held, which are expected to
          be weekly but will not be held unless there is at least a minimum of
          Fifty Thousand Dollars ($50,000) of funds raised. Only one legal
          opinion will be required for the offering as a whole. At each Closing,
          the Placement Agent shall pay out the proceeds to be distributed at
          the Closing in the following manner: (i) the applicable commission,
          expense allowance and fees set out in paragraph 6.c to the Placement
          Agent and Houlihan, Smith & Company (or other firm, as selected above)
          and (ii) the remainder of the funds shall be divided one third (the
          "First Proceeds Amount", i.e., the gross proceeds raised minus
          commissions, expense allowance and fees) and two thirds (the "Second
          Proceeds Amount"). The First Proceeds Amount shall be immediately
          released to Polar who in turn will loan one third of that amount to
          Murdock and the remainder will be retained by Polar. The Second
          Proceeds Amount shall remain in the Escrow Account until such time as
          the Company shall provide to the Placement Agent, verifiable evidence
          of enforceable contracts which indicate sales in a minimum amount of
          One Million Five Hundred Thousand Dollars ($1,500,000), as indicated
          in the Memorandum, for the first 12 months following the Offering,
          said revenues being capable of reasonable verification by Placement
          Agent (it is expected that the verifiable evidence shall be an
          executed and enforceable Purchase Order). Upon receipt by the
          Placement Agent of the said verifiable evidence, the Placement Agent
          shall release the Second Proceeds Amount from the Escrow Account to
          the Company which in turn will loan one third of that amount to
          Murdock and the remainder shall be retained by the Company.

     9.   Paragraph 14.e. of the Agreement shall be amended in the following
          manner:

          The last sentence in the paragraph shall be deleted and replaced with
          the following:

<PAGE>

          "The company shall obtain (i) the consent of the Lienholder so that
          the holders of the Securities may be secured by collateral, on a
          secondary pari passu basis with the said existing Lienholder and (ii)
          an agreement with the Lienholder which is reasonably satisfactory to
          the Company and the Placement Agent.

All other terms and conditions in the Agreement will remain the same.

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above.

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Thomas J. Berthel                   By: /s/ Mark L. Nelson
    ----------------------------                --------------------------------
Title: CEO                                  Title: President-CEO

<PAGE>

                                   AMENDMENT B

This Amendment B (the "Amendment") , dated as of February 28, 2002, is attached
to and made a part of that Placement Agreement dated as of December 21, 2001, as
amended pursuant to Amendment A dated as of December 21, 2001 (the "Amended
Agreement"), both of which were executed by and between Berthel Fisher & Company
Financial Services, Inc. (Placement Agent) and Polar Molecular Corporation (the
"Company").

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to extend the terms of the Interim Offering.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

     1.   Pursuant to the terms of the Amended Agreement, the parties agree that
          the term of the Interim Offering is extended thirty (30) days beyond
          the Interim Offering Termination Date until March 28, 2002 and
          therefore the Interim Offering Termination Date shall include the
          later date.

     2.   Placement Agent has been informed that Company will be required to
          book an expense as the result of the recent issuance of Company common
          stock/options to officers and directors of the Company (the "Common
          Stock"). Placement Agent is willing to accept and agree to a reduction
          in the equity section on the balance sheet of the Company related to
          the issuance of the Common Stock, which has been issued within twenty
          four months preceding the merger between the Company and Murdock
          Communications Corporation, so long as such adjustment(s) does not
          exceed Three Hundred Fifty Thousand Dollars ($350,000). In the event
          that the Company is required to make an adjustment(s) to its financial
          statements to account for the issuance of the Common Stock, then the
          Company agrees to take whatever action necessary so the total
          adjustment to the Company financial statement(s) will reduce the
          Company's equity section on the balance sheet by no more than
          $350,000. In addition, the Company agrees that the provision stated in
          this paragraph will be incorporated into an amendment to the Merger
          Agreement executed between the Company and Murdock Communications
          Corporation.

<PAGE>

     3.   Clause (i) of the fourth sentence of Paragraph 14.b of the Amended
          Agreement is hereby amended to read as follows:

               "(i) (A) the applicable commission, expense allowance and fees
               set out in paragraph 6.c to the Placement Agent and Houlihan,
               Smith & Company (or other firm, as selected above) and (B) the
               fees and expenses of counsel to Polar in connection with this
               Agreement, the Initial Offering and the Offering, the Merger
               Agreement and the transactions contemplated thereby and".

All other terms and conditions in the Amended Agreement will remain the same.

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date first set out above.

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Thomas J. Berthel                   By: /s/ Mark L. Nelson
    ----------------------------                --------------------------------
Title: CEO                                  Title: CEO

<PAGE>

                                   AMENDMENT C

This Amendment C (the "Amendment"), dated as of March 27, 2002, is attached to
and made a part of that Placement Agreement dated as of December 21, 200l, as
amended pursuant to Amendment A dated as of December 21, 2001 and Amendment B
dated as of February 28, 2002 (the "Amended Agreement) , each of which were
executed by and between Berthel Fisher & Company Financial Services, Inc.
(Placement Agent) and Polar Molecular Corporation (the "Company")

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to extend and expand the terms of the Interim
Offering.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

1.   Pursuant to the terms of the Amended Agreement, the parties agree that (i)
     the Interim Offering shall be extended until April 30, 2002, and the
     Interim Offering Termination Date shall include such later applicable date,
     and (ii) the principal amount of Interim Promissory Notes (and the total
     exercise price of Warrants) to be offered during the Interim Offering is to
     be increased from $700,000 to $1,500,000.

2.   The proceeds of the first $700,000 of the Interim Offering shall be
     distributed as previously indicated. The final $800,000 of proceeds from
     the Interim Offering shall be distributed, first, to pay (A) the applicable
     commission, expense allowance and fees set out in paragraph 6.c to the
     Placement Agent and Houhlihan, Smith & Company (or other firm, as selected
     in the Amended Agreement) , as if the Interim Offering was the Offering,
     and (B) Holme Roberts & Owen LLP for fees and expenses incurred (but not
     yet paid) by the Company (x) in connection with the Amended Agreement and
     this Amendment, the Interim Offering and the Offering, the Merger Agreement
     and the transactions contemplated thereby and (y) for other matters in
     2001, and, second, two-thirds of the remaining net proceeds shall be
     distributed to the Company and one-third of the remaining net proceeds
     shall be distributed as a loan from the Company to Murdock (with the same
     terms as the other loans to Murdock under the Amended Agreement, and with a
     use of proceeds by Murdock that is approved in advance by the Company (not
     to be unreasonably withheld), provided that any use designed to allow
     Murdock to meet its Net Worth Test under Section 5.15 of the Merger
     Agreement shall be an

<PAGE>

     approved use). Furthermore, the Company shall loan to Murdock one-third of
     the net proceeds (after 10% commissions to Placement Agent) received by the
     Company upon exercise of the Warrants, until the aggregate loan to Murdock
     by the Company under the terms of the Amended Agreement and this Amendment
     is equal to $620,750; this loan shall be on the same terms as the other
     loans to Murdock under the Amended Agreement and this Amendment, shall have
     a use of proceeds by Murdock that is approved in advance by the Company
     (not to be unreasonably withheld, provided that any use designed to allow
     Murdock to meet its Net Worth Test under Section 5.15 of the Merger
     Agreement shall be an approved use).

3.   Paragraph 4.d. of the Amended Agreement shall be amended in its entirety to
     read as follows:

     "In addition to the Interim Promissory Notes described above, as a part of
     the Interim Offering, the Company will also issue Warrants to the Investors
     (the "Warrants"), which will grant to Investors the right to purchase, at
     an exercise price of $0.585 per share, the number of shares of Common Stock
     of the Company equal to twice the number of shares of Common Stock into
     which the related Interim Promissory Notes may be converted."

4.   Paragraph 6.e of the Amended Agreement shall be amended in its entirety to
     read as follows:

     "As further compensation for Placement Agent's services in finding
     subscribers for the Interim Promissory Notes sold during the Interim
     Offering, at the Closings, the Company hereby agrees to deliver to the
     Placement Agent warrants (the "Placement Agent Warrants") for the purchase
     of the number of shares of Common Stock of the Company equal to 10% of the
     total number of shares of Common Stock issuable upon conversion of the
     Interim Promissory Notes (other than Interim Promissory Notes issued due to
     the direct efforts of the Company) as a result of the Interim Offering. The
     Placement Agent Warrants shall have an exercise price equal to 120% of the
     conversion price of the Common Stock subject to the Interim Promissory
     Notes offered in the Interim Offering. The Placement Agent Warrants shall
     expire three years from the date of issuance and shall contain the normal
     terms and conditions of warrants of this size and type, which shall include
     but not necessarily be limited to the right of cashless exercise, piggyback
     registrations rights and standard anti dilution provisions. As further
     compensation for Placement Agent's agreement to use its best efforts to
     find subscribers for an additional (i.e., above and beyond the first
     $700,000 of Interim Promissory Notes sold during the Interim Offering)
     $800,000 of Interim

                                       2

<PAGE>

     Promissory Notes (the "Additional Notes") , the Company hereby agrees to
     (i) immediately deliver 100,000 shares of Common Stock to Placement Agent
     and (ii) deliver a further 100,000 shares to Placement Agent in the event
     that the Placement Agent finds (and receives signed purchase commitments
     from) subscribers for at least $500,000 of the Additional Notes on or prior
     to April 30, 2002."

All other terms and conditions in the Amended Agreement will remain the same.

                                       3

<PAGE>

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date first set out above.

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Thomas J. Berthel                   By: /s/ Mark L. Nelson
    ----------------------------                --------------------------------
Title: CEO                                  Title: President-CEO
       4-5-02

                                       3

<PAGE>

                                   AMENDMENT D

This Amendment D (the "Amendment") dated as of April 30, 2002, is attached to
and made a part of that Placement Agreement dated as of December 21, 2001 (the
"Placement Agreement") which was amended pursuant to an Amendment A dated as of
December 21, 2001 (the "Amendment A") , which was amended pursuant to an
Amendment B dated as of February 28, 2002 (Amendment B") and which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C"), all of
which were executed by and between Berthel Fisher & Company Financial Services,
Inc. (Placement Agent) and Polar Molecular Corporation (the "Company")
(collectively the Placement Agreement, the Amendment A and the Amendment B shall
be referred to as the "Amended Agreement").

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

     1. Pursuant to the terms of the Amended Agreement, the parties agree that
     the Interim Offering shall be extended until May 15, 2002 and the Interim
     Offering Termination Date shall include such later applicable date.

     2. Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
     reference to "April 30, 2002" at the end of the paragraph and replacing it
     with "May 15, 2002".

All other terms and conditions of the Amended Agreement will remain the same

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By:  /s/ Thomas J. Berthel                  By: /s/ Mark L. Nelson
     ---------------------------                --------------------------------
Title: CEO                                  Title: Pres-CEO

<PAGE>

                                   AMENDMENT E

This Amendment E (the "Amendment") dated as of May 15, 2002, is attached to and
made a part of that Placement Agreement dated as of December 21, 2001 (the
"Placement Agreement") which was amended pursuant to an Amendment A dated as of
December 21, 2001 (the "Amendment A"), which was amended pursuant to an
Amendment B dated as of February 28, 2002 (Amendment B"), which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C") and which
was amended pursuant to an Amendment D dated as of April 30, 2002 ("Amendment
D"), all of which were executed by and between Berthel Fisher & Company
Financial Services, Inc. (Placement Agent) and Polar Molecular Corporation (the
"Company") (collectively the Placement Agreement, the Amendment A, the Amendment
B, the Amendment C and the Amendment D shall be referred to as the "Amended
Agreement").

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

     1. Pursuant to the terms of the Amended Agreement, the parties agree that
     the Interim Offering shall be extended for an additional 30 days, until
     June 14, 2002, with the right to extend the Agreement for two additional 30
     day periods by mutual agreement of the parties, and the Interim Offering
     Termination Date shall include such later applicable date.

     2. Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
     reference to "May 15, 2002" at the end of the paragraph and replacing it
     with "June 14, 2002".

All other terms and conditions of the Amended Agreement will remain the same

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Thomas J. Berthel                   By: /s/ Mark L. Nelson
    ----------------------------                --------------------------------
Title: CEO                                  Title: President-CEO

<PAGE>

                                   AMENDMENT F

This Amendment F (the "Amendment") dated as of June 13, 2002, is attached to and
made a part of that Placement Agreement dated as of December 21, 2001 (the
"Placement Agreement") which was amended pursuant to an Amendment A dated as of
December 21, 2001 (the "Amendment A"), which was amended pursuant to an
Amendment B dated as of February 28, 2002 ("Amendment B"), which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C"), which was
amended pursuant to an Amendment D dated as of April 30, 2002 ("Amendment D"),
and Amendment E dated as of May 15, 2002 all of which were executed by and
between Berthel Fisher & Company Financial Services, Inc. (Placement Agent) and
Polar Molecular Corporation (the "Company") (collectively the Placement
Agreement, the Amendment A, the Amendment B, the Amendment C, the Amendment D
and Amendment A shall be referred to as the "Amended Agreement").

All terms defined in the amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

1.   Pursuant to the terms of the Amended Agreement, the parties agree that the
     Interim Offering shall be extended for an additional 30 days, until July
     14, 2002, with the right to extend the Agreement for two additional 30 day
     periods by mutual agreement of the parties, and the Interim Offering
     Termination Date shall include such later applicable date.

2.   Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
     reference to "June 14, 2002" at the end of the paragraph and replacing it
     with "July 14, 2002".

All other terms and conditions of the Amended Agreement will remain the same

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Dwight E. Wheelan, President        By: /s/ Mark L. Nelson
    ---------------------------------           --------------------------------

<PAGE>

                                   AMENDMENT G

This Amendment G (the "Amendment") dated as of July 12, 2002, is attached to and
made a part of that Placement Agreement dated as of December 21, 2001 (the
"Placement Agreement") which was amended pursuant to an Amendment A dated as of
December 21, 2001 (the "Amendment A") , which was amended pursuant to an
Amendment B dated as of February 28, 2002 ("Amendment B"), which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C"), which was
amended pursuant to an Amendment D dated as of April 30, 2002 ("Amendment D"),
which was amended pursuant to an Amendment E dated as of May 15, 2002
("Amendment E") and an Amendment F dated as of June 13, 2002 ("Amendment G"),
all of which were executed by and between Berthel Fisher & Company Financial
Services, Inc. (Placement Agent) and Polar Molecular Corporation (the "Company")
(collectively the Placement Agreement, the Amendment A, the Amendment B, the
Amendment C, the Amendment D, the Amendment F and Amendment G shall be referred
to as the "Amended Agreement").

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

1.   Pursuant to the terms of the Amended Agreement, the parties agree that the
     Interim Offering shall be extended for an additional 48 days, until August
     31, 2002, with the right to extend the Agreement for two additional 30 day
     periods by mutual agreement of the parties, and the Interim Offering
     Termination Date shall include such later applicable date.

2.   Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
     reference to "June 14, 2002" at the end of the paragraph and replacing it
     with "August 31, 2002".

All other terms and conditions of the Amended Agreement will remain the same

<PAGE>

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above.

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Dwight E. Wheelan                   By: /s/ Mark L. Nelson
    ----------------------------                --------------------------------
Title: President                            Title: President & CEO

<PAGE>

                                   AMENDMENT H

This Amendment G (the "Amendment") dated as of August   , 2002, is attached to
                                                      --
and made a part of that Placement Agreement dated as of December 21, 2001 (the
"Placement Agreement") which was amended pursuant to an Amendment A dated as of
December 21, 2001 (the "Amendment A"), which was amended pursuant to an
Amendment B dated as of February 28, 2002 ("Amendment B"), which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C"), which was
amended pursuant to an Amendment D dated as of April 30, 2002 ("Amendment D"),
and Amendment E dated as of May 15, 2002 ("Amendment E"), which was amended
pursuant to an Amendment F dated as of June 13, 2002 ("Amendment F") and an
Amendment G dated as of July 12, 2002 ("Amendment G"), all of which were
executed by and between Berthel Fisher & Company Financial Services, Inc.
(Placement Agent) and Polar Molecular Corporation (the "Company") (collectively
the Placement Agreement, the Amendment A, the Amendment B, the Amendment C, the
Amendment D, the Amendment E, the Amendment F, the Amendment G and Amendment H
shall be referred to as the "Amended Agreement").

All terms defined in the amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

1.   Pursuant to the terms of the Amended Agreement, the parties agree that the
     Interim Offering shall be extended for an additional 60 days, until October
     30, 2002, with the right to extend the Agreement for two additional 30 day
     periods by mutual agreement of the parties, and the Interim Offering
     Termination Date shall include such later applicable date.

2.   Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
     reference to "August 31, 2002" at the end of the paragraph and replacing it
     with "September 30, 2002".

All other terms and conditions of the Amended Agreement will remain the same

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above.

<PAGE>

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Dwight E. Wheelan                   By: /s/ Mark Nelson
    ----------------------------                --------------------------------
Title: President                            Title: President

<PAGE>

                                   AMENDMENT I

This Amendment I (the "Amendment") dated as of September 30, 2002, is attached
to and made a part of that Placement Agreement dated as of December 21, 2001
(the "Placement Agreement") which was amended pursuant to an Amendment A dated
as of December 21, 2001 (the "Amendment A"), which was amended pursuant to an
Amendment B dated as of February 28, 2002 ("Amendment B"), which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C") which was
amended pursuant to an Amendment D dated as of April 30, 2002 ("Amendment D"),
which was amended pursuant to an Amendment E dated as of May 15, 2002
("Amendment E"), which was amended pursuant to an Amendment F dated as of June
13, 2002 ("Amendment F"), which was amended pursuant to an Amendment G dated as
of July 12, 2002 ("Amendment G") and an Amendment H dated as of August 30, 2002,
all of which were executed by and between Berthel Fisher & Company Financial
Services, Inc. (Placement Agent) and Polar Molecular Corporation (the "Company")
(collectively the Placement Agreement, the Amendment A, the Amendment B, the
Amendment C, the Amendment D, the Amendment E, the Amendment F, the Amendment G,
the Amendment H and the Amendment I shall be referred to as the "Amended
Agreement").

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Whereas the parties acknowledge that the 1.5 Million Dollar Interim Offering has
been completed; and

Whereas, the parties desire to initiate and complete an additional offering in
an amount up to Seven Hundred Thousand and No/100 Dollars ($700,000) (the
"Additional Offering")

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

     1. Pursuant to the terms of the Amended Agreement, the parties agree that
     the Interim Offering and the Additional Offering shall be extended for an
     additional 57 days, until November 27, 2002, with the right to extend the
     Agreement for two additional 30 day periods by mutual agreement of the
     parties, and the Interim Offering Termination Date and the date for the
     termination of the Additional Offering (the "Additional Offering
     Termination Date") shall include such later applicable date. The Company
     will provide an Amendment/Supplement, as the case may be, to the

                                       1

<PAGE>

     Confidential Private Placement Memorandum dated January 30, 2002 and the
     Cumulative Supplement and Addendum to Confidential Private Placement
     Memorandum dated April 11, 2002, which will provide necessary information
     to potential investors, including but not necessarily limited to the fact
     that the Interim Offering of $1.5 Million Dollars has been sold out and
     that the parties agree to initiate an Additional Offering in the amount of
     Seven Hundred Thousand Dollars ($700,000) (the "Supplement").

     2. Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
     reference to "September 30, 2002" at the end of the paragraph and replacing
     it with "November 27, 2002".

     3. In order for the Placement Agent to use its best efforts to go forward
     with the Additional Offering the parties agree to the following timeline:

          A.   On or before November 27, 2002, the Company, in cooperation with
               Murdock Communications Corporation ("Murdock"), will have filed
               the S-4 regarding the merger of the Company and Murdock;

          B.   The Supplement will be completed and forwarded to the Placement
               Agent no later than November 7, 2002, in order that the Placement
               Agent may continue to put forth its best efforts to complete the
               Additional Offering;

          C.   At or prior to the final closing for the Additional Offering, the
               Company will produce a letter or some other acceptable evidence
               from Total-Fina-Elf ("TFE"), in which TFE acknowledges that it
               intends to place an order for the Company product;

          D.   On or before the final closing of the Additional Offering, the
               Company, through its attorneys, will complete and present to
               Murdock a revised and amended Merger Agreement, acceptable to
               Murdock, which corresponds to the new dates of the proposed
               Merger.

     4. The parties agree, that out of the funds that are raised in the
     Additional Offering, the first Seventy Five Thousand Dollars of funds
     raised, after the payment of Placement Agent fees and commissions, will be
     paid to the Company's accountants and attorneys. In exchange for payment of
     said funds the Company will produce evidence from the Company's accountants
     and attorneys that said accountants and attorneys will continue to work
     with the Company to do all work reasonable and necessary in order to
     complete the Offering and the proposed merger of the

                                       2

<PAGE>

     Company with Murdock, including but not necessarily limited to filing of a
     Registration Statement prior to the closing of the merger between the
     Company and Murdock, without requiring additional payment until the Merger
     closing.

     5. The Company agrees that out of the net proceeds raised from the exercise
     of Warrants resulting from the Interim Offering and/or the Additional
     Offering, after payment of Placement Agent fees and commissions, the
     Company will loan to Murdock one third of the amount raised. Furthermore,
     assuming the full $700,000 is raised in the Additional Offering, the
     Company will loan to Murdock $190,000 of the net proceeds of the Additional
     Offering. If less than the full $700,000 is raised in the Additional
     Offering, the Company will loan to Murdock 19/52 of any net proceeds (i.e.,
     following payment of Placement Agent fees and commissions) from the
     Additional Offering after payment of the amounts set forth in Paragraph 4
     hereof.

     6. At or prior to the closing of the Merger the Company will use it s
     reasonable best efforts to have either paid off or converted, to Company
     Common Stock, any and all outstanding accounts payable/debt obligations,
     including but not necessarily limited to unpaid salaries, bonuses and/or
     suppliers. Notwithstanding anything to the contrary stated above, the debts
     owed to the Company's accountants and attorneys which may be over and above
     the amounts stated in paragraph 4 above, are not required to be converted
     and may continue to accrue in order to be paid at the Merger Closing and/or
     according to terms agreed to among the parties.

All other terms and conditions of the Amended Agreement will remain the same.

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above.

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Ronald O. Brendegen                 By: /s/ Mark L. Nelson
    ----------------------------                --------------------------------
Title: CFO                                  Title: President-CEO

                                       3

<PAGE>

                                   AMENDMENT J

This Amendment J (the "Amendment J") dated as of September 30, 2002, is attached
to and made a part of that Placement Agreement dated as of December 21, 2001
(the "Placement Agreement") which was amended pursuant to an Amendment A dated
as of December 31, 2001, (the "Amendment A"), which was amended pursuant to an
Amendment B dated as of February 28, 2002 ("Amendment B"), which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C"), which was
amended pursuant to an Amendment D dated as of April 30, 2002 ("Amendment D"),
which was amended pursuant to an Amendment E dated as of May 15, 2002
("Amendment E"), which was amended pursuant to an Amendment F dated as of June
13, 2002 ("Amendment F"), which was amended pursuant to an Amendment G dated as
of July 12, 2002 ("Amendment G"), which was amended pursuant to an Amendment H
dated as of August 30, 2002 ("Amendment H"), which was amended pursuant to an
Amendment I dated as of September 30, 2002 ("Amendment I"), all of which were
executed by and between Berthel Fisher & Company Financial Services, Inc.
(Placement Agent) and Polar Molecular Corporation (the "Company") (collectively
the Placement Agreement, the Amendment A, the Amendment B, the Amendment C, the
Amendment D, the Amendment E, the Amendment F, the Amendment G, the Amendment H
and the Amendment I shall be referred to as the "Amended Agreement").

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

1.   The proceeds of the Additional Offering shall be distributed as follows:

     (a) Of the first $143,000 raised in the Additional Offering, the proceeds,
     net of a 10% commission to the Placement Agent, shall go 100% to the
     Company.

     (b) Of the next $157,000 raised in the Additional Offering, the proceeds,
     net of a 10% commission to the Placement Agent, shall go 50% to Murdock and
     50% to the Company.

     (c) Of the next $400,000 raised in the Additional Offering, the proceeds,
     net of an 18.75% commission to the Placement Agent (to be shared by the
     Placement Agent with

<PAGE>

     Houhlihan Smith & Company Inc. to give effect to the Amended Agreement),
     shall go 66.67% to the Company and 33.33% to Murdock.

2. The Company agrees that out of the proceeds raised from the exercise of
Warrants resulting from the Interim Offering and/or the Additional Offering, the
Company will loan to Murdock the sum of (i) $57,696, (ii) one third of the
proceeds (net of any commissions) raised in the Additional Offering less any
amounts loaned to Murdock under the provisions of paragraph 1 of this Amendment
J and (iii) one-third of the proceeds (net of any commissions) raised from such
Warrants.

3. The Company agrees that, to the extent that Murdock (x) chooses not to accept
any portion of the amounts to be loaned from the Company under the terms set
forth in paragraph 2 above or (y) otherwise does not (whether or not any
proceeds are raised from the exercise of such Warrants) receive the amounts set
forth it items (i) and (ii) of paragraph 2, Murdock shall receive a credit
against its liabilities for purposes of meeting the Net Worth Test (as defined
in the Merger Agreement).

4. The parties agree that they shall not amend the provisions of paragraphs 1
through 4 of this Amendment J without the consent of Murdock, which is hereby
named as a third party beneficiary of such paragraphs 1 through 4.

5. Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
reference to "November 27, 2002" at the end of the paragraph and replacing it
with "December 20, 2002". The Termination Date shall be December 20, 2002.

6. The parties agree that the Company, in cooperation with Murdock, will have
filed the Registration Statement on Form S-4 regarding the merger of the Company
and Murdock (the "S-4 Filing") on or prior to December 23, 2002.

7. Placement Agent agrees that the Company and the Placement Agent have received
a letter from TFE that meets the requirements set forth in Amendment I.

8. Notwithstanding the compensation expense amounts referenced in paragraph 2 of
Amendment B, which the parties agree is superseded by this paragraph 8 of this
Amendment J, the Company agrees that it will limit its compensation expense (as
shown in its initial S-4 Filing, assuming no prior comments by the Securities
and Exchange Commission) relating to issuance of common stock and/or options to
officers and directors since November 1, 2001 to an amount not exceeding
$1,000,000. The parties agree that no such cap is applicable to any related
changes in the S-4 Filing or otherwise required to comply with

                                        2

<PAGE>

comments of the Securities and Exchange Commission or other related agency.

All other terms and conditions of the Amendment Agreement will remain the same.

In Witness Whereof, the parties hereto execute this Amendment as of the day and
date set out above.

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By: /s/ Thomas J. Berthel                   By: /s/ Mark L. Nelson
    ----------------------------                -------------------------------
Title: CEO                                  Title: President - CEO

Acknowledged and agreed for the
purposes of paragraphs 1 through 4
hereof:

MURDOCK COMMUNICATIONS CORPORATION

By: /s/
    ----------------------------
Title:
       -------------------------

                                       3

<PAGE>

                                   AMENDMENT K

This Amendment K ("Amendment K") dated as of December 20, 2002, is attached to
and made a part of that Placement Agreement dated as of December 21, 2001 (the
"Placement Agreement") which was amended pursuant to an Amendment A dated as of
December 21, 2001 (the "Amendment A"), which was amended pursuant to an
Amendment B dated as of February 28, 2002 ("Amendment B"), which was amended
pursuant to an Amendment C dated as of March 27, 2002 ("Amendment C"), which was
amended pursuant to an Amendment D dated as of April 30, 2002 ("Amendment D"),
which was amended pursuant to an Amendment E dated as of May 15, 2002
("Amendment E"), which was amended pursuant to an Amendment F dated as of June
13, 2002 ("Amendment F"), which was amended pursuant to an Amendment G dated as
of July 12, 2002 ("Amendment G"), which was amended pursuant to an Amendment H
dated as of August 30, 2002 ("Amendment H"), which was amended pursuant to an
Amendment I dated as of September 30, 2002 ("Amendment I"), which was amended
pursuant to an Amendment J which was incorrectly dated as of September 30, 2002
and which should have been dated as of December 11, 2002, all of which were
executed by and between Berthel Fisher & Company Financial Services, Inc.
(Placement Agent) and Polar Molecular Corporation (the "Company") (collectively
the Placement Agreement, the Amendment A, the Amendment B, the Amendment C, the
Amendment D, the Amendment E, the Amendment F, the Amendment G, the Amendment H,
the Amendment I and the Amendment J shall be referred to as the "Amended
Agreement").

All terms defined in the Amended Agreement will have the same meaning when used
in this Amendment.

Whereas, the parties desire to amend the terms of the Amended Agreement.

Now Therefore, in consideration of the foregoing, and for other good and
valuable consideration, receipt of which is hereby acknowledged, the parties
agree as follows:

1.   Pursuant to the terms of the Amended Agreement, the parties agree that the
     Additional Offering shall be extended for an additional 42 days until
     January 31, 2003, or until the Murdock Communication Corporation
     Registration Statement (the "S-4 Filing") is completed and filed with the
     SEC, whichever is later, and the Additional Offering Termination Date shall
     include such later applicable date.

<PAGE>

2.   Paragraph 6.e. of the Amended Agreement shall be amended by deleting the
     reference to "December 20, 2002" at the end of the paragraph and replacing
     it with "January 31, 2003 or the date when the S-4 Filing is completed and
     filed with the SEC, whichever is later." The Termination Date shall be
     January 31, 2003 or the date when the S-4 Filing is completed and filed
     with the SEC, whichever is later.

3.   The parties agree that the Company, in cooperation with Murdock, will have
     filed the Registration Statement on Form S-4 regarding the merger of the
     Company and Murdock (the "S-4 Filing") as soon as practicable.

     All other terms and conditions of the Amended Agreement will remain the
     same.

     In Witness Whereof, the parties hereto execute this Amendment as of the day
     and date set out above.

Berthel Fisher & Company                    Polar Molecular Corporation
Financial Services, Inc.

By:                                         By: /s/ Mark L. Nelson
    ----------------------------                --------------------------------
Title:                                      Title: President - CEO
       -------------------------

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