Document:

EXHIBIT 10.8.4
Date: 18th February 19XX

PARTIES:

1.       THE LICENSOR: XXXXXXXX whose registered office is at XXXXXXXXXXX

2.       THE LICENSEE: CHRONIMED INC. whose place of business is at 13911
         Ridgedale Drive, Minnetonka, Minnesota 55305, USA.

RECITALS:
(A) The Licensor has developed and is the beneficial owner of a substantial body
of valuable Technical Information as defined below relating to the manufacture
assembly, and commercial operation of the Supreme System and is the registered
proprietor of the Patent Rights relating thereto as defined below
(B) The Licensee wishes to receive and the Licensor is willing to grant a
license on the terms set out below and to work under the said Patent Rights in
order to manufacture, use, sell or otherwise deal in the Products

OPERATIVE PROVISIONS:
1. DEFINITIONS
1.1 In this Agreement the following terms shall have the following meanings
unless the context otherwise requires:
"Copyright": all copyright and rights in the nature of copyright to which either
party may now be or may subsequently become entitled in or in respect of all
drawings and other documents, recordings in any form and all other' articles
bearing or embodying any part of the Technical Information;
"Effective Date": XXXXXXXXX;
"Improvements": all improvements, modifications or adaptations to any part of
the Technical Information which might reasonably be of commercial intent to the
Licensor or the Licensee in the design manufacture use or supply of the Products
or in the operation of the Process and which may be made or acquire by either
party during the term of this Agreement;
"the Minimum Royalty": the annual sum of XXXXXXXXX, or such greater sum as shall
equal XXXXXX compounded at an annual rate so as to reflect the change in the

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US Producer Price Index (excluding energy and food) between the date of this
Agreement and the first day of the relevant Year of the Agreement. No Minimum
Royalty will be due until the first day of the month ("Commencement Date")
following the date when Licensee is producing with FDA approval at the rate of
XXXX Reagent Strips per month for three consecutive months. The Minimum Royalty
will be payable for five years following the COMMENCEMENT DATE. In the event the
Commencement Date is other than the first day of a Year of the Agreement, the
Minimum Royalty will be prorated for the first and last year of the five year
period. After five years, no Mimimum Royalty will be required so long as
Licensee is not manufacturing a competitive product.
"Net Sales Value": the invoiced ex-works sales value of the Reagent Strips
manufactured and sold pursuant to this Agreement in an arm's length transaction
exclusively for money after deduction of normal trade discounts actually granted
and of any credits actually given by the Licensee (or in the case of Clause 6.3
by Licensor) for defective goods and excluding or making proper deductions for
any costs of packing, insurance, carriage and freight and other sales tax and,
in the case of export orders, any import duties or similar applicable
governmental levies or export insurance costs subject in all cases to the same
being separately charged on customer invoices. In any sale or other disposal of
any Reagent Strips or part thereof otherwise than in any arm's length
transaction exclusively for money, (other than samples made available for
marketing purposes) the fair market price (if higher) in the relevant country of
disposal shall be substituted for the Net Sales Value;
"Patent Rights":
(i) the patents and applications short particulars of which are set out in
Schedule B hereto;
(ii) all patent applications that may hereafter be filed by or on behalf of the
Licensor which either are based on or claim priority from any of the foregoing
patents and applications or which are in respect of any Improvements to which
either party is exclusively entitled; and

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(iii) all patents which may be granted pursuant to any of the foregoing patent
applications;
"Process": the technical process required to manufacture the Products;
"Products": Supreme meter and strip system details of which are set out in
Schedule A hereto;
"Technical Information": all know-how, experience, drawings, designs, circuit
diagrams, computer programs and all other technical information relating to the
Products or the Process and which might reasonably be of commercial interest to
the Licensor or the Licensee in the design manufacture use or supply of the
Products or in the operation of the Process;
"The Territory": Territory A and Territory B;
"Territory A": North America (including any US territories wherever located) and
Mexico;
"Territory B" Central America, South America, Taiwan, Hong Kong, Singapore,
The Philipines, Korea;
"Year of the Agreement" the period commencing on the Effective Date and
ending XXXXXXXX 1993 and each subsequent calendar year during the term of this
Agreement;

2.       TECHNICAL INFORMATION
2.1 Forthwith on receipt from the Licensee of the initial sum due pursuant to
clause 6.1 below the Licensor will supply the Licensee with all Technical
Information in its possession that has not previously been disclosed that is
reasonably necessary or desirable to enable the Licensee to operate the Process
and to design, manufacture on a commercial scale and sell Products of a quality
at least equivalent to those being produced by the Licensor at the Effective
Date;

2.2 The Licensor shall if requested within 12 months from the Effective Date or
such other period as may be mutually agreed provide technical assistance at the
Licensor's premises in XXXXXXXX or, if so requested by the Licensee, provide
suitably trained technical assistants to attend the premises of the Licensee in
XXXXXXXXX for such period as may be necessary to assist in

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the transfer of the Technical Information to the Licensee. The Licensee shall be
responsible for all travel and incidental costs associated with the provision of
such services and the Licensor shall make no other charge in connection with
such services, provided always that they do not exceed a maximum of 90 man days
in total. For the purpose of this sub-paragraph a man day means a day of 8
working hours during which one member of the Licensor's staff is made available
to the Licensee.

2.3 If the Licensee requires additional assistance to that provided under
subclause 2.2 the Licensor will use his reasonable endeavours to provide it at
the Licensee's cost.

2.4 The Licensor warrants that all Technical Information disclosed or to be
disclosed to the Licensee hereunder is or will be accurate to the best of the
Licensor's knowledge and belief; provided always that the Licensor will promptly
correct any errors in the Technical Information subsequently discovered by him.

2.5 With respect to any Products manufactured pursuant to this Agreement the
Licensee shall be exclusively responsible for the technical and commercial
operation of the Process and for incorporating any modifications or developments
thereto that might be necessary or desirable and for all Products sold or
supplied by the Licensee and accordingly the Licensee shall indemnify the
Licensor in respect of all costs damages and expenses incurred as a result of
any claims by third parties in tort or otherwise against the Licensor arising in
any way out of the use of any of the Technical Information by the Licensee save
that the Licensee shall not be liable in any way in respect of claims by third
parties arising as a result of the Licensor's actions, designs or Technical
Information.

2.6 The Licensee undertakes that for so long as any part of the Technical
Information remains subject to the obligations of confidence in clause 4 hereof
it will not use the same for any purpose except as expressly licensed hereby and
in accordance with the terms of this Agreement.

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3. IMPROVEMENTS
3.1 Each party shall forthwith disclose to the other in confidence and in such
detail as that other may reasonably require all Improvements or discoveries
resulting from application of the Process or Products that it may develop or
acquire during the term of this Agreement except insofar as such disclosure
would disclose information derived from and subject to confidentiality
obligations in favor of a third party.

3.2 Improvements that the Licensor is due to disclose to the Licensee under
clause 3.1 above shall be deemed to be part of the Technical Information for the
purposes of the rights granted to the Licensee under clause 5 hereof.

3.3 Subject to Licensee's exclusive rights hereunder the Licensor shall have a
non-exclusive irrevocable world-wide royalty-free license without limit of time
with the right to grant sub-licenses thereunder to use all Improvements the
Licensee is due to disclose to the Licensor under clause 3.1 hereof and to work
under all intellectual property rights in respect thereof owned by the Licensee
or any successors in title of the Licensee.

3.4 Save as otherwise provided therein, Improvements arising from work carried
out by the Licensor alone shall remain the exclusive property of the Licensor
and Improvements arising from work carried out by the Licensee alone shall
remain the exclusive property of the Licensee.

3.5 Improvements arising from work carried out jointly shall belong to the
parties equally unless they shall otherwise agree. Each party shall have the
irrevocable right to use such joint Improvements independently of the other and
to the extent necessary for such use a license under all jointly held
intellectual property rights relating thereto including the right to grant
sub-licenses thereunder. Each party hereby undertakes that on request it will
confirm to any prospective licensee of the other the right of that other
pursuant to this paragraph to grant such a license.

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4.       CONFIDENTIALITY
4.1 Each party agrees to maintain secret and confidential all Technical
Information obtained from the other both pursuant to this Agreement and prior to
and in contemplation of it and all other information that it may acquire from
the other in the course of this Agreement, to respect the other's proprietary
rights therein, to use the same exclusively for the purposes of this Agreement
and to disclose the same only to those of its employees and sub-licensees
pursuant to this Agreement (if any) to whom and to the extent that such
disclosure is necessary for the purpose of this Agreement.

4.2 The foregoing obligations of clause
4.1 above shall not apply to Technical Information or other information which:
4.2.1 prior to receipt thereof from one party was in the possession of the other
and at its free disposal;
4.2.2 is subsequently disclosed to the recipient party without any obligations
of confidence by a third party who has not derived it directly or indirectly
from the other,
4.2.3 is or becomes generally available to the public through no act or default
of the recipient party or its agents or employees.

4.3 Notwithstanding the foregoing provisions the parties and any sub-licensees
pursuant to this Agreement shall be entitled to disclose Technical Information
of the other to actual or potential customers for Products insofar as such
disclosure is reasonably necessary to promote the sale or use of Products.

4.4 Each party shall procure that all its employees and sub-licensees pursuant
to this Agreement (if any) who have access to any information of the other to
which the obligations of clause 4.1 apply shall be made aware of and subject to
these obligations and shall further procure that so far as is reasonably
practicable all of such employees and sub-licensees shall enter into written
undertakings in favor of the other party to this end in a form previously
approved by the Licensor.

5.       Grant of rights
5.1      The Licensor hereby grants to the Licensee:

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5.1.1    an exclusive license to use the Technical Information and under the
         Licensor's copyright to use the Process in Territory A to manufacture
         Products;
5.1.2    an exclusive license to use sell or otherwise deal in Products
         manufactured under the license of clause 5.1.1. in Territory A; and
5.1.3    subject always to the provisions of clause 5.3, an exclusive license to
         use sell or otherwise deal in Products manufactured under the license
         of clause 5.1.1 in Territory B.

5.2      The Licensor hereby agrees to grant to the Licensee:
5.2.1    an exclusive license under the Patent Rights to use the Process in
         Territory A to manufacture Products; and
5.2.2.1  an exclusive license to use sell or otherwise deal in Products
         manufactured under the license of clause 5.2.1 in Territory A;
5.2.22   subject always to the provisions of clause 5.3, an exclusive license to
         use sell or otherwise deal in Products manufactured under the license
         of clause 52.1 in Territory B.

5.3 During the period of 12 months following the Effective Date the Licensor and
the Licensee will use all reasonable endeavors to establish reasonable objective
performance standards for Territory B and if, after a period of 18 months from
the Effective Date, such standards have not been established or the Licensor is
of the opinion that the Licensee has failed to attain the said standards then
the exclusive rights granted to the Licensee under clauses 5.12 and 522 shall
cease and thereafter the Licensee shall have only non-exclusive rights to use
sell or otherwise deal in the Products manufactured under the licenses of
clauses 5.1.1 and 5.2.1 in Territory B. In the event of the exclusive right
ceasing in respect of Territory B, the Licensor shall provide the Licensee with
notice in writing thereof within 6 months of the expiry of the said 18 month
period and the Licensor shall not use the Licensee's distributors thereafter. In
the absence of any such notice the exclusive rights shall continue until
terminated in accordance with clause 10.1.

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5.4 The parties hereto agree to execute a formal license agreement substantially
as set out in Schedule C hereto for the purposes of registering any patent
license (in the relevant territories) granted pursuant to clause 3.3 and 5.1
above. The parties agree to co-operate in the preparation of any additional
documentation necessary for the registration.

5.5      The Licensee shall be entitled to sub-license:-
5.5.1 any subsidiary of the Licensee (this being a company in which Licensee
controls a majority of the voting power of the issued shares) for so long as it
is such a subsidiary; and
5.5.2 any third party whom the Licensor has accepted by prior notice in writing,
such acceptance not be unreasonably withheld, provided always that the said
third party has entered into a confidentiality agreement in a form acceptable to
the Licensor, under the rights granted or to be granted under clauses 5.1 and
5.2 hereof provided that the Licensee shall remain responsible for all acts and
omissions of such sublicenses as though they were by the Licensee. The Licensee
shall forthwith notify the Licensor of any sub-license granted pursuant to this
clause.

5.6 If the Licensor develops new products connected with the treatment of
diabetes which are based upon the Technical Information, the Licensor shall
offer the Licensee an exclusive license to manufacture, sell and deal in the
said products on terms no less favorable than those offered to other third
parties.

6.       PAYMENT
6.1      Forthwith after the execution of this Agreement the Licensee shall pay
to the Licensor an initial sum of XXX.

6.2 The Licensee shall during the continuance of this Agreement pay to the
Licensor the following royalties on the Net Sales Value of the Reagent Strips
sold or otherwise disposed of for money or money's worth by the Licensee or any
sublicensee it may appoint hereunder, save that where the total sums payable by
way of royalty in any Year of this Agreement are less than the Minimum Royalty
applicable to such Year the Licensee shall pay to the Licensor, in addition to
such

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royalties, a sum equal to the difference between the Minimum Royalty and the
actual royalty payments made during the relevant Year of the Agreement or part
thereof:
XXX% until such time as the total number of Reagent Strips sold in any Year
         of the Agreement have an aggregate Net Sales Value in excess of
         XXXXX;
XXX%on   all Reagent Strips sold after the aggregate Net Sales Value of the
         Reagent Strips sold in any Year of the Agreement has exceeded XXXXX but
         is less than XXXXX;
XXX%on   all Reagent Strips sold after the aggregate Net Sales Value of the
         Reagent Strips sold in any Year of the Agreement is XXXXX or greater.

Notwithstanding the foregoing, if as of 31st December 1995 at least two of the
three United States Patent applications have not been approved or if before such
date two of such applications have been denied or withdrawn, Minimum Royalty
Payments due hereunder after December 31st 1995 (or if earlier, the date the
second application is denied or withdrawn) will be XXXXX and the maximum
percentage royalty will be XXX%.

6.3 When calculating the total sums payable by way of royalty in any Year of the
Agreement for the purposes of determining whether the Minimum Royalty has been
exceeded there shall be deemed to be included in the total of the royalties so
payable the sum of XXX for every XXX Reagent Strips sold to the Licensee by the
Licensor during such Year of Agreement (or part thereof if the Minimum Royalty
commencement date is other than January lst Product will be supplied by Licensor
to Licensee in accordance with the pricing schedule attached.

6.4 Payments due under clause 6.2 shall be made within thirty days of the end of
each calendar quarter in respect of royalties accruing on Products invoiced in
that calendar quarter and within 30 days of the end of the relevant Year of the
Agreement in respect of any sum payable due to royalty payments being less than
the Minimum Royalty and the Licensor reserves the right (without prejudice to
any

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other rights it may have) to charge interest at the rate of 12% per amum on any
sums more than 30 days past overdue.

6.5      All sums due under this Agreement:
6.5.1 shall be made in sterling to the credit of a bank account to be designated
in writing by the Licensor.
6.5.2 shall be paid in full save for any deduction of taxes charges end other
duties payable by the Licensor that the Licensee is required to withhold under
applicable law. The parties agree to co-operate in all respects necessary to
take advantage of such double taxation agreements as may be available.

7.       RECORDS AND REPORTS
7.1 The Licensee agrees to keep true and accurate records end books of account
containing all data necessary for the determination of royalties payable under
clause 6.2 which records and books of account shall upon reasonable notice of
the Licensor be open at all reasonable times during business hours for
inspection by the Licensor or a certified public accountant retained by Licensor
for the purpose of verifying the accuracy of the Licensee's reports hereunder.

7.2 The Licensee shall submit to the Licensor within thirty days of the end of
each calendar quarter a statement setting forth with respect to the operations
of the Licensee hereunder during that period the quantity of Products made used
or sold and the Net Sales Value of Products.

7.3 The Licensor agrees to maintain confidential all financial information
received with respect to the Licensee's operations pursuant to the foregoing
clauses 7.1 and 7.2 and to make no use of such information other than for
purposes of verifying the accuracy of royalty payments.

8.       PERFORMANCE

8.1      During the continuance of this Agreement the Licensee shall:
8.1.1 use all reasonable endeavors to promote the distribution and sale of
Products throughout the Territory as widely as its resources reasonably permit
and will make available all necessary selling and manufacturing facilities to
meet all reasonable demands for Products throughout the

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Territory. The Licensee shall seek to maximize such demand, consistent only with
the Licensee obtaining a reasonable rate of return on its assets employed in
making and selling Products;
8.1.2 ensure that all Products manufactured pursuant to this Agreement meet all
such reasonable specifications as the Licensor may from time to time apply
thereto and satisfy in performance quality construction and use the reasonable
requirements of the Licensor end shall upon reasonable notice from the Licensor
give the Licensor or its authorized representative free access at any reasonable
time to the premises of the Licensee for the purpose of ensuring that the
Licensee is observing these obligations;
8.1.3 sell Products to any suitable buyer independently of any other product of
the Licensee if so required;
8.1.4 ensure that all literature prepared by the Licensee and relating to
Products bears an acknowledgement to the effect that they are subject to a
license from the Licensor, and attach to all products a label quoting relevant
patent numbers and stating that such Products are made under license from the
Licensor,
8.1.5 include in the terms and conditions of sale or other supply of the
Products manufactured pursuant to this Agreement (exclusive of Reagent Strips) a
guarantee to the effect that the Licensee will during at least the period of
twelve months from the date of such sale or supply replace at its own expense
and free of charge any Products supplied by it that are defective by reason of
faulty manufacture or through inadequate workmanship or materials;
8.1.6 provide adequate servicing facilities for any Products manufactured and/or
supplied by the Licensee;
8.1.7 not act as agent of the Licensor and specifically not give any indication
that it is acting otherwise than as principal and in advertising or selling
Products not make any representation or give any warranty on behalf of the
Licensor,
8.1.8 have a non-exclusive license to use the name Supreme in the Territory or
in relation to the Products;

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8.1.9 hold in trust for the Licensor any governmental approvals for the Products
obtained by the Licensee.

8.2 The Licensee shall forthwith inform the Licensor if for any reason it is
unable to meet any reasonable market demand giving sufficient information to
enable the Licensor to supply the customers itself if appropriate or to pass the
requirements to another licensee.

8.3 The Licensee shall at its own expense register or procure the registration
of any license agreement executed under clause 5.5 hereof.

9.       PATENTS
9.1 The Licensor shall at the Licensee's cost make such other applications in
respect of the Products as the Licensee shall reasonably require and do all
things ancillary thereto.

9.2 The Licensor undertakes to take all steps (including any proceedings) as may
be necessary to halt any infringement by a third party of any of the Patent
Rights in the Territory on such a scale as to affect prejudicially the
Licensee's business in the Products to a substantial extent wherever there is a
reasonable chance of such steps being successful. The Licensee shall give the
Licensor all such assistance as the Licensor may reasonably request, and the
Licensor will bear the cost of any such proceedings reasonably incurred by the
Licensee by reason of such infringement and account to the Licensee for any
damages awarded, after the deduction of the Licensor's costs of the proceedings.
If the Licensor fails to halt any infringement by a third party and such failure
results in the Licensee's business being adversely effected to a material extent
then there will be a corresponding reduction in the royalty payments due with
respect to Products sold in the country where the said infringement occurs.

9.3 To the best of the Licensor's knowledge and belief the exercise of the
rights granted or to be granted to the Licensee hereunder will not result in the
infringement of valid patents of third parties. If any claim, demand, suit,
action or proceeding is brought against Licensor and/or Licensee, by any person,
firm or corporation, alleging or claiming that the Products or Technical
Information

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Infringes on any patent or other proprietary right of such claimant, the
Licensor will at its own expense, settle or defend, on behalf of itself and the
Licensee, its agents, employees and authorized assigns such suit or action, and
in the event any judgement is rendered against the Licensor and/or the Licensee,
its agents, employees and authorized assigns for damages in any such suit,
action or proceeding in which final judgement has been rendered from which no
appeal is or can be taken, the Licensor shall indemnify and hold harmless the
Licensee, its agents, employees and authorized assigns from all such costs and
damages.

9.4 If at any time during this Agreement the Licensee directly or indirectly
opposes or assists any third party to oppose the grant of letters patent on any
patent application with the Patent Rights or disputes or directly or indirectly
assists any third party to dispute the validity of any patent within the Patent
Rights or any of the claims thereof the Licensor shall be entitled at any time
thereafter to terminate all or any of the licenses granted hereunder forthwith
by notice thereof to the Licensee.

9.5 Where one party hereto has developed or acquired an Improvement to which
clause 3.1 above applies it shall not publish the same or do anything that might
prejudice the validity of any patent that might subsequently be granted on it
until the other party has had at least thirty working days from disclosure in
writing of all information relating to it to consider whether patent or other
protection should be applied for. The first party will on request notify the
other whether it intends to seek any relevant protection. If it does not wish to
do so and if the other party within the thirty working day period notifies the
first party that it would like to seek patent or other protection, and if it is
agreed between the parties that the other party may do so, then this obligation
shall continue for such time as may be reasonably required to prepare and file
an application for patent or other protection.

9.6 The Licensor shall at the Licensee's request pursue further an application
for patent protection in respect of an Improvement and maintain any such patent
protection

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9.7 Subject to the foregoing EACH party shall BE free to apply for patent
protection for any invention not made in whole or in part by an employee of the
other provided however that the specification in support thereof does not
disclose any confidential information of the other.

9.8 The Licensor and the Licensee shall share equally the costs of filing and
prosecuting any future joint patent applications to grant and of maintaining
such granted patents in all countries.

10. WARRANTIES
10.1 The Licensor warrants that:
10.1.1   it owns all Technical Information used by it in the manufacture and
         sale of the Products. The use by the Licensor of any such Technical ;
         Information, and the manufacture by the Licensor of the Products, does
         not to the best of its knowledge and belief, infringe the rights of any
         third party, and no claim has been asserted to such effect or otherwise
         affecting any Technical Information of the Licensor. The Technical
         Information and the Patent Rights to be licensed to the Licensee
         hereunder constitutes all the intellectual property used by the
         Licensor in the manufacture and sale of the Products;
10.1.2   it is the owner of the Patent Rights in the Products end that to the
         best of its knowledge and belief the manufacture and sale of the
         Products will not infringe the right of any third party;
10.13    the granting of all or any of the licenses hereunder will not result in
         a breach of any of the terms and conditions of, or constitute a default
         under any charge, license, or other agreement to which the Licensor is
         a party or infringes the terms of any order of any Court,
         administrative agency or governmental body;
10.1.4   the Licensor is not engaged in any litigation or arbitration
         proceedings relating to the Products and to the best of its knowledge
         no litigation or arbitration proceedings are pending or threatened
         against the Licensor in respect thereof.

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10.1.5   All Products sold to Licensee by Licensor will conform to Licensor's
         specifications and standard warranty.

10.2 In the event of the Licensee having a valid claim against the Licensor
arising from a breach of this Agreement, including a breach of the warranties
set out in this Agreement, the Licensee shall be entitled in addition to any
other remedies to off-set the amount of such valid claim against amounts owed by
the Licensee to the Licensor under separate agreements between them.

11. TERM AND TERMINATION
11.1 Subject as provided herein, this Agreement shall continue in force in each
country in the Territory until expiry of the last to expire of the Patent Rights
in such country unless earlier terminated in accordance with the following
provisions of this clause.

11.2 If either party is in breach of any obligation on it hereunder and, in the
case of a breach capable of remedy, it shall not have been remedied by the
defaulting party within fourteen days of written notice specifying the breach
and requiring its remedy, or if the Licensee becomes insolvent, has an
administrative receiver appointed over the whole or any part of its assets,
enters into any compound with creditors, or has an order made or resolution
passed for it to be wound up (otherwise than in furtherance of a scheme for
amalgamation or reconstruction) or if any similar occurrence takes place under
some foreign jurisdiction, then the Licensor or in the case of breach the party
not in breach of the obligation or condition may forthwith terminate this
Agreement by notice without prejudice to any other rights of either party
arising from the breach.

11.3 The Licensee may terminate this Agreement by serving not less than six
months nonce m writing on the Licensor which notice shall expire at the end of a
Year of the Agreement.

11.4 Termination of this Agreement for any reason shall not bring to an end:
11.4.1   the secrecy obligations on the parties hereto;

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11.4.2 the Licensee's obligations to pay royalties or other sums which have
accrued due or which will become due in respect of sales under clause 11.5:
11.43 the obligations (if any) on the Licensee under clause 11.5;
11.4.4 the licenses (if any) under clauses 3.3, 3.5 and 9.6.

11.5 On termination of this Agreement for any reason the Licensee shall continue
to have the right for a period of twenty four months from the date of
termination to complete deliveries on contracts in force at that date and to
dispose of Products already manufactured subject to payment to the Licensor of
royalties thereon in accordance with clause 6 above.

12.      FORCE MAJEURE
12.1 If either party to this Agreement is prevented or delayed in the
performance of any of its obligations under this Agreement by force majeure, and
if such party gives written notice thereof to the other party specifying the
matters constituting force majeure, together with such evidence as it reasonably
can give and specifying the period for which it is estimated that such
prevention or delay will continue then the party in question shall be excused
the performance or the punctual performance as the case may be as from the date
of such notice for so long as such cause of prevention or delay shall continue.

12.2 For the purpose of this Agreement "force majeure" shall be deemed to be any
cause affecting the performance of this Agreement arising from or attributable
to acts, events, omissions or accidents beyond the reasonable control of the
party to perform and without limiting the generality thereof shall include the
following:
12.2.1   strikes, lock-outs or other industrial action;
12.2.2 civil commotion, riot, invasion, war threat or preparation for war,
12.2.3 fire, explosion, storm, flood, earthquake, subsidence, epidemic or other
natural physical disaster,
12.2.4 political interference with the normal operations of any party.

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13.      GENERAL
13.1 This Agreement shall be binding upon and enure to the benefit of the
parties hereto and their respective legal successors but shall not otherwise be
assignable by the Licensee without the written consent of the Licensor which
consent shall not be unreasonably withheld.

13.2 This Agreement shall be made in duplicate with both copies being executed
by both parties.

13.3 No variation or amendment of this Agreement shall bind either party unless
made in writing and agreed to in writing by duly authorized officers of both
parties.

13.4 If any provision of this Agreement is agreed by the parties to be illegal
void or unenforceable under any law that is applicable hereto or if any court of
competent jurisdiction in a final decision so determines this Agreement shall
continue in force save that such provision shall be deemed to be exercised
herefrom with effect from the date of such agreement or decision or such earlier
date as the parties may agree.

13.5 The headings in this Agreement are for convenience only and are not
intended to have any legal effect.

13.6 A failure by either party hereto to exercise or enforce any rights
conferred upon it by this Agreement shall not be deemed to be a waiver of any
such rights or operate so as to bar the exercise or enforcement thereof at any
subsequent time or times.

14. Notices
14.1 Any notice required to be given hereunder by either party to the other
shall be in writing and shall be served by sending the same by registered or
recorded delivery post to the address of the other party as given herein or to
such other address as that party may have previously notified to the party
giving notice as its address for such service.

14.2 All notices documents communications and any other data to be provided
under this Agreement shall be in the English language unless otherwise agreed.

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15.      GOVERNING LAW AND DISPUTES
15.1 The construction validity and performance of this Agreement shall be
governed in all respects by XXXXXXX Law and the parties hereto submit to the non
exclusive jurisdiction of the XXXXXXXXXX Courts.

IN WITNESS WHEREOF the duly authorized representatives of the parties have
executed this Agreement the day and year first before written.

SIGNED BY
for and on behalf of
XXXXXXXXXXXXXXXXXX
in the presence of:

SIGNED BY
for and on behalf of
CHRONIMED INC
in the presence of:EXHIBIT 10.8.5

                                    AGREEMENT

         AGREEMENT entered by and between Chronimed Inc., a Minnesota
corporation ("CHMD") and XXX Corporation, a _____________ corporation ("XXX")
executed and deemed effective_____________, ________ (the "Effective Date").

         WHEREAS, XXX is the owner of certain proprietary know-how, technology
and patent rights ("Proprietary Technology," as defined in more detail below)
relating to blood glucose test strips and meters, and

         WHEREAS, CHMD desires to obtain a worldwide, non-exclusive, license to
manufacture, distribute, market and sell a blood glucose test embodying the
Proprietary Technology developed by XXX, all on the terms and conditions set
forth herein below;

         NOW, THEREFORE, in consideration of the mutual covenants, agreements,
representations and warranties herein contained, the parties hereby agree as
follows:

1.       DEFINITIONS

         1.1 "PROPRIETARY TECHNOLOGY" shall mean the technology embodied in that
certain blood glucose test strip and glucose test algorithm of the XXX meter as
the same exists in the current XXX Glucose Control System commercially provided
by XXX as of the Effective Date.

         1.2 "LICENSED PRODUCT (s)" shall mean any glucose Test System or
glucose Test Strip marketed by CHMD which embodies, is made using, or otherwise
incorporates the Proprietary Technology (a "Proprietary Test System" or
"Proprietary Test Strip," respectively). For purposes of this Agreement, "Test
System" shall mean any device capable of measuring analyte in a sample (I.E.,
blood or other bodily material), but not including a Test Strip; and "Test
Strip" shall mean any device containing chemical reagents to which a sample is
applied which allows analysis of an analyte by a Test System.

         1.3 "NET REVENUES" shall mean CHMD's gross revenues for sales of
Proprietary Test Strips by CHMD or its Affiliates to non-affiliated third
parties, less any separately itemized shipping charges, sales or exercise taxes
paid directly by CHMD, normal and customary trade discounts, returns, rebates
and allowances.

         1.4 "ROYALTY YEAR" shall mean annual periods commencing Ninety (90)
days from the date of the Food and Drug Administration (FDA) registration (I.E.,
clearance by the FDA of a 510(k) application for a Proprietary Test Strip) or
April 1, 2000 whichever occurs first and continuing each year thereafter during
the term of this Agreement.

         1.5 "DOLLAR(S) shall mean United States Dollars. All royalty due for
sales in countries foreign to the United States shall be converted (for the
purpose of calculation only)

<PAGE>

into equivalent United States funds at the rate set forth in The Wall Street
Journal (U.S., Eastern Edition) for the last business day of the calendar
quarter for which such royalties are owed.

         1.6 "AFFILIATE(S)" shall mean any corporation or other business entity
controlled or under common control with CHMD for so long as such control exists.
For this purpose "control" shall mean direct and indirect beneficial ownership
of at least fifty one percent (51 % ) of the voting stock of, or at least a
fifty one percent (51 %) interest in the income of such corporation or other
business entity.

2.       GRANT OF LICENSE

         2.1 Subject to the terms and conditions stated herein, XXX grants to
CHMD and CHMD accepts a non-exclusive, worldwide non-transferable (except as set
forth in Section 9.1 below) right and license under the Proprietary Technology
to make, have made, use, distribute, market and sell Licensed Product(s)
including the right to have any or all of the foregoing performed by an
Affiliate.

         2.2 During the first four years of this Agreement, XXX shall not grant
to a third party rights with respect to the Licensed Product(s) royalty
structures more favorable to such third party than as provided to CHMD under
this Agreement without first offering such more favorable royalty structure to
CHMD.

         2.3 Subject to CHMD's performance of its obligations under this
Agreement and upon XXX's prior written approval, not to be unreasonably
withheld, CHMD may assign any CHMD rights licensed or granted in Section 2.1;
provided, however, that such assignment shall be solely for the purpose of
permitting CHMD to engage the services of Licensed Product(s) manufacturers,
sales representatives, dealers and other persons to assist CHMD in its
performance under this Agreement and the same shall not alleviate CHMD of its
obligations hereunder.

         2.4 XXX and CHMD agree that CHMD receives no licenses or rights
whatsoever, by implication or otherwise, with respect to any other XXX patents,
patent applications, trademarks, technology or other intellectual property
except for the rights to the Proprietary Technology as specifically granted
herein; and upon termination of this Agreement, other than as to inventory in
CHMD's possession at the time of termination, CHMD shall have no further right
to use XXX Proprietary Technology, distribute, market or sell the Licensed
Product(s). Upon termination of this Agreement, CHMD shall retain the sole
ownership of and rights to any manufacturing technologies, know-how, processes,
or devices related to the Licensed Product(s) production or design independently
developed by MM during the term of this Agreement. XXX may not, during the term
of this Agreement nor after its expiration, duplicate any Licensed Product(s)
design feature, technology, or formula enhancement developed by CHMD in each
case to the extent such duplication would infringe the valid claim of an issued
patent without the express written consent of CHMD.

         2.5 In consideration for the license and other rights conveyed herein,
and in addition to the royalties identified below, CHMD shall pay XXX Dollars
($XXX) to XXX on or before December 15, 1998.

<PAGE>

         2.6 CHMD shall notify XXX on or before June 1, 1999, whether CHMD, in
its sole discretion, elects to manufacture, have made, market or sell a blood
glucose Proprietary Test System. In the event CHMD elects to manufacture, have
made, market or sell such a Proprietary Test System, CHMD shall pay to XXX, at
the time of CHMD's notice, an additional lump sum payment of XXX Dollars ($XXX).
In the event CHMD elects not to manufacture, have made, market or sell such
Proprietary Test Systems, the license granted under Section 2.1 above shall be
limited to Proprietary Test Strips and CHMD shall have no license with respect
to Proprietary Test Systems or Proprietary Technology related thereto (i.e., the
subject matter claimed in that certain U.S. Patent Application number #####) and
the remaining terms of this Agreement shall remain intact and fully in force.

         2.7 In consideration of the rights granted and other obligations of the
parties herein, the parties agree that during the term of this Agreement that
neither party shall directly or indirectly make, have made, market, sell, have
sold or otherwise distribute any Test Strip (including without limitation a
Proprietary Test Strip) which at the time of the first commercial sale of such
Test Strip is compatible and could be used with a Test System then being
distributed commercially by or on behalf of the other party hereto.

3.       LICENSED PRODUCTS) ROYALTIES

         3.1 CHMD shall pay to XXX royalties on all CHMD sales of Proprietary
Test Strips during the first five Royalty Years as follows payable in Dollars:

                  (a) XX percent (XX%) of Net Revenues on all Proprietary Test
         Strip sales up to $XX million during a Royalty Year;

                  (b) XX percent (XX%) of Net Revenues on all Proprietary Test
         Strip sales between $XX million and $XX million during a Royalty Year;
         and

                  (c) XX percent (XX%) of Net Revenues on all Proprietary Test
         Strip sales exceeding $XX million during a Royalty Year.

         3.2 CHMD shall pay to XXX royalties on all CHMD sales of Proprietary
Test Strips occurring after the first five Royalty Years as follows:

                  (a) XX percent (XX%) of Net Revenues on all Proprietary Test
         Strip sales up to $XX million during a Royalty Year;

                  (b) XX percent (XX%) of Net Revenues on all Proprietary Test
         Strip sales between $XX million and $XX million during a Royalty Year;
         and

                  (c) XX percent (XX%) of Net Revenues on all Proprietary Test
         Strip sales exceeding $XX million during a Royalty Year.

         3.3 CHMD shall pay to XXX, upon the commencement of the first Royalty
Year (as defined herein), a lump sum payment of XX Dollars ($XX). The advance of
XX Dollars ($XX) shall off-set dollar-for-dollar the first XX ($XX) in royalties
to become due and payable to XXX based on Net Revenues generated during the
first Royalty Year.

         3.4 In addition to the guaranteed royalty to be paid upon commencement
of the first Royalty Year, CHMD guarantees payment to XXX of XX Dollars ($XX) in
minimum royalties each of the

<PAGE>

second, third and fourth Royalty Years. If the total royalties paid to XXX
during one of the foregoing Royalty Years are less than the minimum guaranteed
royalty, then, together with the last royalty payment for such Royalty Year
pursuant to Section 3.5 below, CHMD shall pay to XXX an amount equal to the
difference of the minimum guaranteed royalty and the royalties paid or payable
to XXX pursuant to Section 3.1 above.

         3.5 CHMD shall pay all royalties on Net Revenues due XXX, on a calendar
quarterly basis in Dollars within 45 days following the quarter for which
royalties are paid. CHMD shall furnish XXX, with each royalty payment, a
statement specifying total Licensed Product(s) sales for which royalties have
been earned during the royalty quarter and the corresponding royalties paid.
CHMD will at all times during the term of this Agreement and two (2) years
thereafter keep and maintain complete and accurate books of accounting
containing records of Licensed Product(s) sales, billing, and accounts
receivable data in sufficient detail to enable royalties payable to be computed
and verified. CHMD will permit XXX or its representatives to audit such records
at XXX's expense upon reasonable notice to CHMD; provided, however, if a
variation or error producing an underpayment in amounts payable hereunder
exceeding five percent (5%) of the amount paid for any period covered by the
audit is established in the course of any such audit, whereupon all costs
relating to the audit and any unpaid amounts that are discovered shall be paid
by CHMD, together with interest on such unpaid amounts at the rate set forth in
Section 3.7(a) below.

         3.6 In the event CHMD shall fail to pay a minimum royalty as required
under Sections 3.3 or 3.4, XXX's exclusive remedy with respect to such
non-payment of a minimum royalty shall be to terminate the license granted under
this Agreement, and XXX shall have no other remedy or claim of damages of any
nature with respect to such non-payment of minimum royalty. The restriction of
remedy provided in this Section 3.6 shall not preclude any other remedy XXX may
have with respect to any other possible non-performance or breach by CHMD.

         3.7 In the event CHMD's non-performance or breach, XXX shall be
entitled to the following remedies:

                  (a) Subject to Section 3.6, if CHMD is in default on any
         payment due under this Agreement, the amount in arrears will bear the
         interest from the date of the default until the amount is paid in full,
         at a rate equal to the maximum rate allowed by the State of XXX. This
         interest will be compounded annually from the date of default and shall
         be payable on demand.

                  (b) XXX may terminate this Agreement, and such termination
         will be without prejudice to any other rights or claims XXX may have
         against CHMD.

                  (c) Because CHMD's breach of this Agreement may cause XXX
                  irreparable harm for which money is inadequate compensation,
                  XXX will be entitled to injunctive relief to enforce this
                  Agreement, in addition to damages and other available
                  remedies.

4. XXX COVENANTS, REPRESENTATIONS, AND WARRANTIES

         4.1 XXX hereby represents and warrants that to the best of its
knowledge it owns all the Proprietary Technology and has all rights necessary to
grant the license described in Section 2.1 under the terms contained herein.

         4.2 Nothing in this Agreement shall be construed as:

<PAGE>

                  (a) A warranty or representation by XXX as to the scope or
         validity or enforceability of any Proprietary Technology; or

                  (b) A warranty or representation that anything made, use, sold
         under the license granted will be free from infringements of patents or
         other rights of any third parties; or

                  (c) An obligation or requirement that XXX file or prosecute
         any patents applications or secure or maintain any intellectual
         property rights in the Proprietary Technology; or

                  (d) Conferring any right on CHMD or its Affiliates, to use in
         advertising, publicity, or any other manner any trademark or trade name
         of XXX without prior written consent; or

                  (e) A warranty or representation that any product sold or
         services performed by CHMD, or its Affiliates, whether embodying, made
         using or otherwise incorporating by Proprietary Technology or not, is
         safe, efficacious, or in compliance with any law or regulations.

         4.3 XXX represents that it will make appropriate technical personnel
available for two (2) day meetings in Minnesota, to review the technology
involved in the Proprietary Technology and discuss ways of facilitating its use
by CHMD.

         4.4 The execution and delivery by XXX of this Agreement and any other
documents contemplated hereby, and the performance by XXX of any of its
obligations herein will not conflict with, result in a breach or violation of
the terms or conditions of, or constitute a default under any contract or
agreement of XXX, its Articles of Incorporation or By-laws, or any order,
judgment, statute, rule or regulation to which XXX is subject.

         4.5 The execution, delivery, and performance of this Agreement have
been duly authorized and approved by the board of directors of XXX and this
Agreement constitutes a valid and binding agreement of XXX in accordance with
its terms.

5.       CHMD COVENANTS, REPRESENTATIONS, AND WARRANTIES

         5.1 CHMD has or will have the ability to manufacture, distribute,
market and sell the Licensed Product(s) worldwide and will diligently pursue it.

         5.2 The Licensed Product(s) shall be (i) manufactured in accordance
with high quality control standards and procedures appropriate for medical
devices of this nature, (ii) free from all defects in workmanship, of
merchantable quality, fit for the particular purpose intended, and (Ili)
manufactured in accordance with all applicable federal, state, laws, rules, or
regulations including, but not limited to, FDA requirements.

         5.3 The execution and delivery by CHMD of this Agreement and any other
documents contemplated hereby, and the performance by CHMD of any of its
obligations herein will not conflict with, result in a breach or violation of
the terms or conditions of, or constitute a default under any contract or
agreement of CHMD, its Articles of Incorporation or By-laws, or any order,
judgment, statute, rule or regulation to which CHMD is subject.

<PAGE>

         5.4 The execution, delivery, and performance of this Agreement have
been duly authorized and approved by the board of directors of CHMD and this
Agreement constitutes a valid and binding Agreement of CHMD in accordance with
its terms.

6.       INDEMNIFICATION

         6.1 Subject to Section 6.4, below XXX shall indemnify and hold CHMD
harmless from and against any and all liabilities, losses, damages, claims,
deficiencies, costs and expenses (including, without limitation, reasonable
attorney fees and other costs and expenses) incident to any suit, action or
proceeding brought by a third party arising out of or resulting from:

                  (a) The breach or inaccuracy of any warranty or representation
         by XXX herein;

                  (b) Any breach or failure to perform by XXX of any material
         term, covenant, or condition herein;

                  (c) Any act or omission of XXX, its officers, employees, or
         agents in the performance of its obligations or conduct of its business
         under this Agreement.

         6.2 In the event CHMD incurs any damage, judgment or expense, including
but not limited to attorneys fees or additional license or royalties fees,
arising out of any third party claim alleging that CHMD's exploitation of the
Proprietary Technology or exercise of the license granted herein constitutes
infringement of third party proprietary or intellectual property rights, CHMD
shall have the night to off-set any sums due or coming due XXX under this
Agreement by the amount of such CHMD damages, judgment or expense, without loss
of the license granted by XXX to CHMD herein. Notwithstanding the foregoing,
CHMD shall have no right of off-set under this Section 6.2 or otherwise with
respect to any infringement or alleged infringement arising out of or resulting
from: (i) use of intellectual property or technologies other than the
Proprietary Technology, including in completed products or equipment or any
assembly, combination, method or process in which the Proprietary Technology is
used when the infringement would not result when the Proprietary Technology is
used alone, or (ii) use of the Proprietary Technology in applications or for
purposes not licensed or contemplated under this Agreement.

         6.3 Subject to Section 6.4 below, CHMD shall indemnify and hold XXX
harmless from and against any and all liabilities, losses, damages, claims,
deficiencies, costs and expenses (including" without limitation, reasonable
attorney fees and other costs and expenses) incident to any suit, action or
proceeding brought by a third party arising out of or resulting from:

                  (a) The breach or inaccuracy of any warranty or representation
         by CHMD herein;

                  (b) Any breach or failure to perform by CHMD of any material
         term, covenant, or condition herein;

                  (c) Any act or omission of CHMD, its officers, employees, or
         agents in the performance of its obligations or conduct of its business
         under this Agreement; or

                  (d) The manufacture, sale or use of the Licensed Product(s) by
         or on behalf of CHMD, including products liability.

<PAGE>

         6.4 A party (the "Indemnitee") that intends to claim indemnification
under Section 6.1 or 6.3 above, as applicable, shall: (i) promptly notify the
indemnifying party (the "Indemnitor") in writing of any suit, action, or other
proceeding brought by third parties in respect of which the Indemnitee intends
to claim such indemnification hereunder, (ii) provide the Indemnitor sole
control over the defense and settlement of such suit, action, or other
proceeding, and (iii) provide Indemnitor, at Indemnitor's expense and request,
with reasonable assistance and full information with respect to such suit,
action or other proceeding. The failure to deliver written notice to the
Indemnitor within a reasonable time after the commencement of any such action,
if prejudicial to its ability to defend such action, shall relieve such
Indemnitor of any liability to the Indemnitee under this Article 6 but the
omission so to deliver written notice to the Indemnitor shall not relieve the
Indemnitor of any liability that it may have to any Indemnitee otherwise than
under this Article 6. Notwithstanding the foregoing, the Indeninitor shall have
no obligations for any suit, action or other proceeding if the Indemnitee
seeking indemnification makes any admission, settlement or other communication
regarding the same without the prior written consent of Indemnitor, which
consent shall not be unreasonably withheld. Without limiting the foregoing, the
Indemnitee shall have the right to participate in any such suit, action or other
proceeding with counsel of its own choice at its expense; and in all cases,
Indemnitor shall keep the Indemnitee fully infori-ned of the progress of any
suit, action, or other proceeding it controls under this Section 6.4. For
purposes of the indemnification obligations to a party pursuant to this Article
6, such party shall be deemed to include its directors, officers and employees.

7.       TERM & TERMINATION

         7.1 This Agreement shall have an initial term of ten (10) years
following the Effective Date, unless otherwise earlier terrninated as set forth
herein. This Agreement shall renew for successive one year terms only by a
written agreement executed by the Parties.

         7.2 Either party shall have the right to terminate this Agreement in
the event of any of the following:

                  (a) A party breaches the Agreement and does not cure such
         breach within (30) days after notice from the non-breaching party
         specifying, the nature of such breach, including failure by CHMD to
         make timely royalty payments to XXX as specified herein.

                  (b) The dissolution, insolvency, bankruptcy or appointment of
         a trustee or receiver for a party, whether voluntary or involuntary.

         7.3 Termination of this Agreement for any reason shall not relieve a
party of any obligation owing at the time of termination. In the event this
Agreement is terminated for any reason, CHMD shall provide XXX with a written
inventory of all Licensed Products that CHMD and its Affiliates have in
inventory and CHMD and its Affiliates shall have the right to sell or otherwise
dispose of such Licensed Products, all subject to the payment to XXX royalties
pursuant to Article 3 hereof Articles 1, 8 and 9 and Sections 3.5, 6.1, 6.3 and
6.4 shall survive the expiration and any termination of this Agreement. In
addition, in the event of termination of this Agreement for breach pursuant to
Section 7.2(a) above, the obligations of the breaching party (but not the
terminating party) under Section 2.7 shall continue for a period of one (I)year
after the effective date of such termination. Except as otherwise provided in
this Article 7, all rights and obligations of the parties under this Agreement
shall terminate upon the expiration or termination of this Agreement.

<PAGE>

8.       CONFIDENTIALITY

         8.1 The parties acknowledge that the transactions herein will require
the exchange of information which is or may be confidential or proprietary. As
used herein, the term "Confidential Information" shall mean (i) proprietary
information of any of the parties; (11) information marked or designated by any
of the parties as confidential; (iii) information, whether or not in written
form and whether or not designated as confidential, which is known to a party as
being treated as confidential by the other party; and (iv) information provided
to any party by third parties which any party is obligated to keep as
confidential. Confidential Information includes, but is not limited to,
discoveries, ideas, designs, specifications, drawings, techniques, models, data,
programs, documentation, processes, know-how, customer lists, marketing plans,
and financial and technical information. Confidential Information shall not
include any information of a party now or hereafter (i) voluntarily disseminated
by that party to the public, or (ii) which otherwise becomes part of the public
domain through lawful means.

         8.2 Each party hereby acknowledges that each party's Confidential
Information is and shall continue to be the exclusive property of such party,
whether or not disclosed or entrusted to the under this Agreement. Each party
agrees to exercise the highest degree of care in safeguarding the Confidential
Information of the other party against loss, theft, or other inadvertent
disclosure, and agrees generally to take all steps necessary to ensure the
maintenance of confidentiality.

         8.3 Upon termination of this Agreement, or as otherwise reasonably
requested, each party agrees to deliver promptly to the owning party all
Confidential Information of the owning party, in all forms and copies, that may
be in the non-owning party's possession or under its control.

         8.4 Each party acknowledges that any disclosure of Confidential
Information in violation of this Agreement will cause irreparable harm to the
owning party. If a party fails to abide by the requirements of this Section 8,
the other party will be entitled to specific performance immediate issuance of a
temporary restraining order or preliminary injunction, and to judgment for any
damages caused by such breach, as well as expenses and reasonable attorneys fees
incurred in enforcement of these rights, in addition to and not to the exclusion
of any other remedies provided in equity or at law.

         8.5 The terms of this Section 8, and the rights and obligations created
herein, shall survive the termination of this Agreement for any reason.

         8.6 Any written communication, including press releases, regarding the
fact of this Agreement or any terms hereunder shall be mutually approved in
writing prior to its publication.

9.       MISCELLANEOUS

         9.1 This Agreement shall be binding upon and inure to the benefit of
the parties and their legal representatives, successors, and assigns. This
Agreement and the various rights and obligations herein may not be assigned
without the mutual written consent of the parties. Notwithstanding the
foregoing, either party shall have the right to assign this Agreement to a party
that succeeds to all or substantially all of the assigning party's business or
assets relating to this Agreement whether by sale, merger, operation of law or
otherwise; provided that such assignee or transferee promptly agrees in writing
to be bound by the terms and conditions of this Agreement.

<PAGE>

         9.2 Any notices permitted or required under this Agreement shall be
deemed given upon the date of personal delivery, 24 hours after deposit with an
overnight express delivery service, or 72 hours after deposit in the United
States mail, postage fully prepaid, addressed to the respective party:

IF TO CHMD:

Chronimed Inc.
10900 Red Circle Drive
Minnetonka, NIN 55343-9126
Attn: President

With copy to:
Chronimed Inc.
10900 Red Circle Drive
Minnetonka, MN 55343-9126
Attn: General Counsel

If to XXX:

XXX

With copy to:

or at any other address as any party may, from time to time, designate by notice
given in compliance with this Section.

         9.3 This Agreement shall be governed by and construed in accordance
with the laws of the State of Minnesota without regard to its choice of law
provisions.

         9.4 This Agreement contains the entire understanding between the
parties with respect to the subject matter herein and supercedes any prior
understandings and agreements among them regarding the same.

         9.5 In the event of any action by a party under this Agreement to
enforce any of its terms, it is agreed that the prevailing party shall be
entitled to recovery of its costs and reasonable attorneys fees in bringing or
defending such action.

         9.6 This Agreement or any section hereof shall not be construed against
a party due to the fact that the Agreement or any section was drafted by that
party.

         9.7 If any provision of this Agreement or application of a provision is
held to be invalid or unenforceable, the remainder of this Agreement and the
enforceability thereof shall not be affected by such determination.

         9.8 Any failure or delay by a party to enforce this Agreement or any
right herein shall not constitute in any instance a waiver of such right or
ability to obtain a permitted remedy.

<PAGE>

         9.9 This Agreement may not be amended or supplemented except by a
written instrument signed by the parties. Any action by a party contrary to or
in modification of the terms of this Agreement shall not create a new agreement
among the parties unless specifically consented to in writing by the non-acting
parting.

         9.10 Any dispute that arises between the parties with respect to the
performance of this Agreement shall be submitted to binding arbitration by the
American Arbitration Association (or such other arbitration agreed to in writing
by the Parties) to be determined and resolved by said association under its
rules and procedures in effect at the time of the submission. The final
arbitration decision shall be enforceable throughout the courts of the State of
Minnesota and the State of XXX.

         9.11 CHMD agrees to mark, and require its Affiliates to mark, all
Licensed Products sold with all applicable patent numbers or otherwise conform
to patent laws and practices of the country in which such Licensed Products are
sold.

         9.12 The relationship of CHMD and XXX established by this Agreement is
that of independent contractors. Nothing in this Agreement shall be construed to
create any other relationship between CHMD and XXX. Neither party shall have any
right, power or authority to assume, create or incur any expense, liability or
obligation, express or implied, on behalf of the other.

         9.13 Except as expressly provided herein, each party agrees not to
disclose any terms of this Agreement to any third party without the consent of
the other party, except as required by securities or other applicable laws, to
prospective and other investors and such party's accountants, attorneys and
other professional advisors.

THIS AGREEMENT CONTAINS A BINDING ARBITRATION PROVISION, WHICH MAY BE ENFORCED
BY THE PARTIES.

CHRONIMED INC.                              XXX

By                                          By

Its                                         Its

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