Document:

LINE OF CREDIT AGREEMENT

Date:  May ___, 2005

         THIS AGREEMENT is entered into between  BIOPHAN  TECHNOLOGIES,  INC., a
Nevada  corporation  having an office address at 150 Lucius Gordon Drive,  Suite
215, West Henrietta, New York 14586 (the "Borrower") and BIOMED SOLUTIONS,  LLC,
a New York  limited  liability  company  having an office  address at 150 Lucius
Gordon Drive, Suite 215, West Henrietta, New York 14586 (the "Lender").

         The  Lender  has agreed to lend  Borrower  an amount up to two  million
dollars ($2,000,000.00) in accordance with the terms of this Agreement.

      1.    COMMITMENT.  The Lender  agrees to make loans to the Borrower at any
            time during this Agreement and prior to the Termination  Date, in an
            aggregate  principal  amount  up to but  not  exceeding  the  sum of
            $2,000,000 at any one time outstanding (the "Commitment").  Advances
            (the "Advances")  shall be requested and made in accordance with the
            terms of Section 10(a) hereof.  During this period, the Borrower may
            use the Commitment by borrowing,  paying,  renewing or prepaying the
            outstanding  balance as reflected by this Agreement,  in whole or in
            part,  and  reborrowing,  all  in  accordance  with  the  terms  and
            conditions  hereof. The Commitment shall extend through November 30,
            2005, which date shall be the Termination  Date.  During the term of
            the Commitment,  Borrower's  obligations shall be represented by the
            Lender's Convertible  Promissory Note in the form attached hereto as
            Exhibit A (the "Note").

      2.    NOTICE OF  BORROWING.  The  Borrower  shall give the Lender  written
            notice  of the  date  and  the  amount  of each  proposed  borrowing
            pursuant  to the  Commitment,  which  notice  shall  comply with the
            requirements of Section 10(a) hereof.  Notwithstanding any provision
            herein to the  contrary,  the  Borrower  must  provide the Lender at
            least ten (10) days' prior written notice before each Advance. On or
            before the date  specified in such notice,  the Lender will make the
            amount then to be loaned by it available to the Borrower.

      3.    INTEREST.  The Borrower  shall pay  interest  upon the amount at any
            time  outstanding  upon the Note,  at the rate of eight percent (8%)
            per annum. Interest on the outstanding balance of principal advanced
            shall accrue and be payable upon  payment or  prepayment  in full of
            the unpaid principal balance.

      4.    PAYMENT. Payment shall be made on the Termination Date in accordance
            with the terms of the Note. All payments (including  prepayments) by
            the  Borrower on account of  principal  and  interest on either Note
            shall  be made to the  Lender  by  corporate  check  at the  address
            specified in the Note or by wire transfer.

      5.    WARRANTS.  In  consideration  of the  Commitment,  the Lender  shall
            receive warrants to purchase five hundred thousand  (500,000) shares
            of common stock of the Borrower,  at an exercise  price equal to one
            hundred ten percent  (110%) of the average of the closing prices for
            the  twenty  (20)  trading  days  prior  to the  execution  of  this
            Agreement.  The warrants shall have a life of one (1) year and shall
            be  subject to vesting  at a rate of one  warrant  share  vested for
            every $4.00 lent in Advances by the Lender.  Any unvested portion of
            the  warrant  shall  expire  on the  Termination  Date.  The form of
            warrant is attached hereto as Exhibit B.

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      6.    USE OF PROCEEDS.  The proceeds of the loans made hereunder  shall be
            used for the corporate working capital purposes of the Borrower.

      7.    EVENTS OF DEFAULT.  Upon the occurrence and continuance of any Event
            of Default as defined in the Note,  the Lender may, by notice to the
            Borrower,  declare the Commitment  immediately terminated and/or any
            amounts  outstanding  hereunder  to be  forthwith  due and  payable,
            whereupon the Commitment shall be immediately  terminated and/or the
            outstanding  principal  amount of the Note,  together  with  accrued
            interest thereon,  shall become  immediately due and payable without
            presentment,  demand,  protest,  or other notice of any kind, all of
            which  are  hereby  expressly   waived,   notwithstanding   anything
            contained herein to the contrary.

      8.    REGISTRATION RIGHTS.

            a.    The  Lender   acknowledges   that  the  certificates  for  the
                  securities  comprising  the shares that  underlie the warrants
                  granted  hereunder  and by the  conversion of the Note (as set
                  forth therein)(the  "Shares" or "Securities") which the Lender
                  will receive will contain a legend substantially as follows:

                           THE   SECURITIES   WHICH  ARE   REPRESENTED  BY  THIS
                           CERTIFICATE   HAVE  NOT  BEEN  REGISTERED  UNDER  THE
                           SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
                           LAWS OF ANY STATE, AND MAY NOT BE SOLD,  TRANSFERRED,
                           HYPOTHECATED   OR  OTHERWISE   DISPOSED  OF  UNTIL  A
                           REGISTRATION   STATEMENT  WITH  RESPECT   THERETO  IS
                           DECLARED  EFFECTIVE  UNDER SUCH ACT,  OR THE  COMPANY
                           RECEIVES  AN OPINION OF COUNSEL  SATISFACTORY  TO THE
                           COMPANY  THAT  AN  EXEMPTION  FROM  THE  REGISTRATION
                           REQUIREMENTS OF SUCH LAWS IS AVAILABLE.

                  The Lender further acknowledges that stop transfer orders will
                  be placed upon the certificates for the Securities  comprising
                  the Shares in accordance with the 1933 Act.

            b.    The Lender  acknowledges  that the  Borrower has agreed to use
                  its best  efforts to include  the Shares or  Securities  (also
                  referred   to  as  the   "Registrable   Securities")   in  any
                  registration  statement  to be filed with the  Securities  and
                  Exchange  Commission (the "Commission") for its own account or
                  the  accounts of others  under the  Securities  Act any of its
                  equity securities, other than on Form S-4 or Form S-8 or their
                  equivalents  relating  to  shares  of its  common  stock to be
                  issued solely in connection with any acquisition of any entity
                  or business or shares of common stock  issuable in  connection
                  with stock option or other employee  benefit plans.  The piggy
                  back  registration  rights  shall be subject to  underwriter's
                  approval  and  other  such  restrictions  (the   "Registration
                  Statement").  The Borrower shall use its good faith efforts to
                  keep such  Registration  Statement  continuously  effective as
                  long as the  delivery of a prospectus  thereunder  is required
                  under the Act and its  regulations  (including but not limited
                  to Rule 144  thereunder  or its successor  regulations  ("Rule
                  144")) in connection  with the  disposition of the Securities;
                  provided,  that  it  is  agreed  and  acknowledged  that  such
                  obligation  of the Borrower to maintain the  effectiveness  of
                  the Registration Statement shall cease upon the ability of the
                  Lender to sell or otherwise  dispose of all of the Registrable
                  Securities  covered by the  Registration  Statement under Rule
                  144; provided  further,  that  notwithstanding  the Borrower's
                  obligation to maintain the  effectiveness  of the Registration
                  Statement pursuant to the immediately  preceding proviso,  and
                  notwithstanding  the  duration of any  Blackout  Period,  such
                  obligation to maintain the  effectiveness  of the Registration
                  Statement  shall cease under all  circumstances  no later than
                  the second anniversary of the date of the Termination Date.

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<PAGE>

            c.    The  Borrower  agrees  to pay  all  Registration  Expenses  in
                  connection  with  the  Registration  Statement.   All  Selling
                  Expenses  relating to  Registrable  Securities  registered  on
                  behalf of the Lender  pursuant to the  Registration  Statement
                  shall be borne by the Lender.  For purposes of this Agreement,
                  "Registration  Expenses"  shall  mean  (1)  all  registration,
                  listing,  qualification and filing fees (including NASD filing
                  fees),   (ii)  fees  and  disbursements  of  counsel  for  the
                  Borrower,   (iii)   accounting   fees  incident  to  any  such
                  registration,  (iv)  blue  sky fees  and  expenses  (including
                  counsel fees in connection  with the preparation of a Blue Sky
                  Memorandum and legal investment survey and NASD filings),  and
                  (v) all  expenses of any persons in  preparing or assisting in
                  preparing, printing, distributing,  mailing and delivering the
                  Registration  Statement,  any  prospectus,   any  underwriting
                  agreements,  transmittal letters, securities sales agreements,
                  securities  certificates  and other documents  relating to the
                  performance of and compliance with this Agreement and (vi) all
                  internal expenses of the Borrower  (including all salaries and
                  expenses  of  officers  and  employees   performing  legal  or
                  accounting duties); provided,  however,  Registration Expenses
                  shall not include any Selling  Expenses.  For purposes of this
                  Agreement,   "Selling   Expenses"   shall  mean   underwriting
                  discounts,   selling  commissions  and  stock  transfer  taxes
                  applicable to the Registrable  Securities registered on behalf
                  of the Lender for Shares hereunder.

            d.    The  Registration  Statement will not be deemed to have become
                  effective (and the related  registration will not be deemed to
                  have been effected)  unless it has been declared  effective by
                  the  Commission  prior to a request  by the  Lender  that such
                  Registration Statement be withdrawn;  provided,  however, that
                  if, after it has been declared effective,  the offering of any
                  Registrable Securities pursuant to such Registration Statement
                  is  interfered  with by any stop  order,  injunction  or other
                  order  or   requirement   of  the   Commission  or  any  other
                  governmental  agency or court then the  Borrower  will use its
                  reasonable best efforts to obtain withdrawal of such order.

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<PAGE>

            e.    At any time or from time to time, the Lender may elect to have
                  its Registrable  Securities  sold in an underwritten  offering
                  and may select the investment banker or investment bankers and
                  manager or  managers  that will serve as lead and  co-managing
                  underwriters  with respect to the offering of its  Registrable
                  Securities, subject to the consent of the Borrower which shall
                  not be unreasonably withheld.

            f.    The  Lender  agrees,   as  a  condition  to  the  registration
                  obligations  with respect to the Lender  provided  herein,  to
                  furnish to the Borrower such information  regarding the Lender
                  required  to be included in the  Registration  Statement,  the
                  ownership  of  Registrable  Securities  by the  Lender and the
                  proposed  distribution  by  the  Lender  of  such  Registrable
                  Securities  as the Borrower  may from time to time  reasonably
                  request in writing.

            g.    The Lender  agrees  that,  upon receipt of any notice from the
                  Borrower of the  happening  of any event of the kind which the
                  Borrower reasonably regards as requiring Lender to discontinue
                  sale   of  the   Registrable   Securities   pursuant   to  the
                  Registration Statement,  the Lender will forthwith discontinue
                  disposition  of the  Registrable  Securities  pursuant  to the
                  affected Registration  Statement until the Lender's receipt of
                  the copies of any supplemented or amended  prospectus as shall
                  be required in the reasonable opinion of the Borrower, and, if
                  so directed by the  Borrower,  the Lender will  deliver to the
                  Borrower (at the expense of the  Borrower),  all copies in its
                  possession,  other  than  permanent  file  copies  then in the
                  Lender's   possession,   of  any   prospectus   covering  such
                  Registrable  Securities  which  was  current  at the  time  of
                  receipt of such notice.

      9.    INDEMNIFICATION; CONTRIBUTION.

            a.    Indemnification  by  the  Borrower.  The  Borrower  agrees  to
                  indemnify and hold harmless each person who participates as an
                  underwriter  of the  Securities  pursuant to the  Registration
                  Statement,   the   Lender  and  their   respective   partners,
                  directors, officers and employees and each person, if any, who
                  controls  any  Lender or  underwriter  within  the  meaning of
                  Section 15 of the Act or Section 20 of the Securities Exchange
                  Act of 1934, as amended (the "Exchange Act") as follows:

                  i.    against  any  and  all  losses,   liabilities,   claims,
                        damages,  judgments and reasonable expenses  whatsoever,
                        as  incurred,  arising  out of any untrue  statement  or
                        alleged untrue statement of a material fact contained in
                        the Registration  Statement pursuant to which Securities
                        were registered  under the Act,  including all documents
                        incorporated  therein by  reference,  or the omission or
                        alleged  omission  therefrom of a material fact required
                        to be stated therein or necessary to make the statements
                        therein  not  misleading  or  arising  out of any untrue
                        statement or alleged untrue statement of a material fact
                        contained in any  prospectus,  including  all  documents
                        incorporated  therein by  reference,  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;

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<PAGE>

                  ii.   against  any  and  all  losses,   liabilities,   claims,
                        damages,  judgments and reasonable expenses  whatsoever,
                        as incurred,  to the extent of the aggregate amount paid
                        in  settlement  of  any  litigation,   investigation  or
                        proceeding by any governmental agency or body, commenced
                        or threatened,  or of any other claim  whatsoever  based
                        upon any such untrue statement or omission,  or any such
                        alleged untrue statement or omission, if such settlement
                        is effected  with the written  consent of the  Borrower;
                        and

                  iii.  against any and all reasonable  expense  whatsoever,  as
                        incurred  (including fees and disbursements of counsel),
                        incurred  in   investigating,   preparing  or  defending
                        against any litigation,  investigation  or proceeding by
                        any   governmental   agency   or  body,   commenced   or
                        threatened, in each case whether or not such person is a
                        party,  or any  claim  whatsoever  based  upon  any such
                        untrue statement or omission, or any such alleged untrue
                        statement  or  omission;  provided,  however,  that this
                        indemnity  agreement  does not  apply to the  Lender  or
                        underwriter with respect to any loss, liability,  claim,
                        damage, judgment or expense to the extent arising out of
                        any untrue  statement or alleged  untrue  statement of a
                        material  fact  contained  in  any  prospectus,  or  the
                        omission  or alleged  omission  therefrom  of a material
                        fact  necessary to make the statements  therein,  in the
                        light of the  circumstances  under which they were made,
                        not  misleading,  in any such case made in reliance upon
                        and in conformity with written information  furnished to
                        the Borrower by the Lender or underwriter  expressly for
                        use  in  a  Registration  Statement  (or  any  amendment
                        thereto)  or  any   prospectus   (or  any  amendment  or
                        supplement  thereto);  and provided further, in the case
                        of an offering that is not an underwritten offering, the
                        Borrower  will not be  liable  to the  Lender  under the
                        indemnity  agreement  in this  Section 9(a) for any such
                        loss, claim, damage,  liability (or action or proceeding
                        in respect  thereof)  or expense  that arises out of the
                        Lender's  failure  to send  or give a copy of the  final
                        prospectus (as its may then be amended or  supplemented)
                        to the person  asserting an untrue  statement or alleged
                        untrue  statement or omission or alleged  omission at or
                        prior  to the  written  confirmation  of the sale of the
                        Securities to such person if such  statement or omission
                        was corrected in such final  prospectus  (as it may then
                        be  amended  or  supplemented)   and  the  Borrower  has
                        previously  furnished  copies thereof in accordance with
                        this Agreement.

            b.    Indemnification  by the Lender. The Lender agrees to indemnify
                  and hold harmless the Borrower,  and each underwriter and each
                  of  their  respective   partners,   directors,   officers  and
                  employees  (including  each officer of the Borrower who signed
                  the  Registration  Statement),  and each  person,  if any, who
                  controls the Borrower or any underwriter within the meaning of
                  Section  15  of  the  Act,   against   any  and  all   losses,
                  liabilities, claims, damages, judgments and expenses described
                  in the  indemnity  contained in paragraph  (a) of this Section
                  (provided that any settlement of the type described therein is
                  effected with the written consent of the Lender), as incurred,
                  but only with respect to untrue  statements or alleged  untrue
                  statements of a material fact  contained in any  prospectus or
                  the  omissions  or alleged  omissions  therefrom of a material
                  fact necessary to make the statements therein, in light of the
                  circumstances  under which they were made, not misleading,  in
                  any such case made in  reliance  upon and in  conformity  with
                  written  information  furnished  to the Borrower by the Lender
                  expressly  for  use in  such  Registration  Statement  (or any
                  amendment  thereto) or such  prospectus  (or any  amendment or
                  supplement thereto).

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<PAGE>

            c.    Conduct of Indemnification Proceedings. Each indemnified party
                  or  parties  shall  give  reasonably  prompt  notice  to  each
                  indemnifying  party or  parties  of any  action or  proceeding
                  commenced  against  it in respect  of which  indemnity  may be
                  sought  hereunder,  but which it or they may have  under  this
                  indemnity   agreement,   except   to  the   extent   that  the
                  indemnifying party is materially prejudiced by such failure to
                  give notice.  If the  indemnifying  party or parties so elects
                  within a reasonable  time after  receipt of such  notice,  the
                  indemnifying  party or parties  may assume the defense of such
                  action or proceeding at such indemnifying  party's or parties'
                  expense  with  counsel  chosen  by the  indemnifying  party or
                  parties and  approved by the  indemnified  party  defendant in
                  such  action  or  proceeding,  which  approval  shall  not  be
                  unreasonably  withheld;   provided,  however,  that,  if  such
                  indemnified  party or parties  determines in good faith that a
                  conflict of interest exists and that therefore it is advisable
                  for such  indemnified  party or parties to be  represented  by
                  separate counsel or that, upon advice of counsel, there may be
                  legal  defenses  available  to it or them which are  different
                  from or in addition  to those  available  to the  indemnifying
                  party,  then the  indemnifying  party or parties  shall not be
                  entitled to assume such defense and the  indemnified  party or
                  parties shall be entitled to separate counsel (limited in each
                  jurisdiction to one counsel for all  underwriters  and another
                  counsel  for  all  other   indemnified   parties   under  this
                  Agreement) at the indemnifying party's or parties' expense. If
                  an indemnifying party or parties is not entitled to assume the
                  defense of such action or does not assume such defense,  after
                  having  received the notice  referred to in the first sentence
                  of this paragraph,  the indemnifying party or parties will pay
                  the   reasonable   fees  and   expenses  of  counsel  for  the
                  indemnified  party or parties (limited in each jurisdiction to
                  one counsel for all  underwriters  and another counsel for all
                  other   indemnified   parties   under  this   Agreement).   No
                  indemnifying   party  or  parties   will  be  liable  for  any
                  settlement  effected  without  the  written  consent  of  such
                  indemnifying  party or  parties,  which  consent  shall not be
                  unreasonably withheld. If an indemnifying party is entitled to
                  assume, and assumes,  the defense of such action or proceeding
                  in accordance with this paragraph,  such indemnifying party or
                  parties  shall  not,  except  as  otherwise  provided  in this
                  subsection (c), be liable for any fees and expenses of counsel
                  for the indemnified  parties incurred thereafter in connection
                  with such action or proceeding.

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            d.    Contribution.

                  i.    In order to provide for just and equitable  contribution
                        in  circumstances  in  which  the  indemnity   agreement
                        provided  for in this  Section is for any reason held to
                        be  unenforceable  by the indemnified  parties  although
                        applicable  in  accordance  with its terms in respect of
                        any losses, liabilities,  claims, damages, judgments and
                        expenses  suffered by an  indemnified  party referred to
                        therein, each applicable  indemnifying party, in lieu of
                        indemnifying such indemnified party, shall contribute to
                        the amount paid or payable by such indemnified  party as
                        a result of such losses,  liabilities,  claims, damages,
                        judgments   and  expenses  in  such   proportion  as  is
                        appropriate   to  reflect  the  relative  fault  of  the
                        Borrower  on the one hand and of the Lender  (including,
                        in  each  case,  that  of  their  respective   officers,
                        directors,  employees  and  agents)  on  the  other,  in
                        connection   with  the  statements  or  omissions  which
                        resulted in such losses,  liabilities,  claims, damages,
                        judgments  or  expenses,  as well as any other  relevant
                        equitable  considerations.  The  relative  fault  of the
                        Borrower  on the one hand and of the Lender  (including,
                        in  each  case,  that  of  their  respective   officers,
                        directors,  employees and agents) on the other, shall be
                        determined by reference to, among other things,  whether
                        the untrue or  alleged  untrue  statement  of a material
                        fact or the  omission  or  alleged  omission  to state a
                        material  fact  relates to  information  supplied by the
                        Borrower,  on the one  hand,  or by or on  behalf of the
                        Lender,  on the other, and the parties' relative intent,
                        knowledge,  access to  information  and  opportunity  to
                        correct or  prevent  such  statement  or  omission.  The
                        amount  paid or  payable  by a party as a result  of the
                        losses,  liabilities,  claims,  damages,  judgments  and
                        expenses  referred  to above shall be deemed to include,
                        subject to the limitations set forth in paragraph (c) of
                        this  Section,  any  legal  or  other  fees or  expenses
                        reasonably  incurred  by such party in  connection  with
                        investigating or defending any action or claim.

                  ii.   The  Borrower  and the Lender agree that it would not be
                        just and  equitable  if  contribution  pursuant  to this
                        paragraph (d) were  determined by pro rata allocation or
                        by any other  method of  allocation  which does not take
                        account of the equitable  considerations  referred to in
                        sub-paragraph (i) above.  Notwithstanding the provisions
                        of this paragraph (d), in the case of  distributions  to
                        the  public,   the  Lender  shall  not  be  required  to
                        contribute  any  amount in excess of the amount by which
                        (A) the total price at which the Securities  sold by the
                        Lender and distributed to the public were offered to the
                        public  exceeds (B) the amount of any damages  which the
                        Lender has  otherwise  been required to pay by reason of
                        such untrue or alleged untrue statement or omission.  No
                        person  guilty of fraudulent  misrepresentation  (within
                        the meaning of Section 11(f) of the Act) with respect to
                        the Securities  shall be entitled to  contribution  from
                        any  person  who  was  not  guilty  of  such  fraudulent
                        misrepresentation.

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<PAGE>

                  iii.  For purposes of this Section,  each person,  if any, who
                        controls the Lender or an underwriter within the meaning
                        of Section 15 of the Act (and their respective partners,
                        directors,  officers and employees)  shall have the same
                        rights to contribution as the Lender or underwriter; and
                        each  director  of the  Borrower,  each  officer  of the
                        Borrower who signed the Registration  Statement and each
                        person,  if any, who  controls  the Borrower  within the
                        meaning of  Section  15 of the Act,  shall have the same
                        rights to contribution as the Borrower.

      10.   MISCELLANEOUS.

            a.    Notices.  All  notices,  requests,  and demands to or upon the
                  respective  parties  hereto shall be deemed to have been given
                  or made when deposited in the mail, postage prepaid, addressed
                  as  set  forth  above  or to  such  other  address  as  may be
                  hereafter  designated  in  writing by the  respective  parties
                  hereto.

            b.    No  Waiver,  Cumulative  Remedies,  Amendment.  No  failure to
                  exercise and no delay in exercising on the part of the Lender,
                  any right,  power, or privilege hereunder or under either Note
                  shall  operate  as a waiver  thereof;  nor shall any single or
                  partial exercise of any right,  power, or privilege  hereunder
                  preclude any other or further exercise thereof or the exercise
                  of any other  right,  power,  or  privilege.  The  rights  and
                  remedies  herein  provided are cumulative and not exclusive of
                  any rights or remedies  provided by law.  No  modification  or
                  waiver of any  provision of this  Agreement nor consent to any
                  departure by the Borrower from the provisions  hereof shall be
                  effective unless the same shall be in writing from the Lender,
                  and then such waiver or consent shall be effective only in the
                  specific  instance  and for the purpose for which it is given.
                  No notice to the  Borrower  shall  entitle the Borrower to any
                  other or further notice in other similar  circumstances unless
                  expressly  provided for herein.  No course of dealing  between
                  the Borrower  and the Lender shall  operate as a waiver of any
                  of the rights of the Lender under this Agreement.

            c.    Payment of Fees.  The  Borrower  agrees to pay all  reasonable
                  costs  and  expenses  of the  Lender  in  connection  with the
                  enforcement  of, or the  preservation of rights arising under,
                  the Note,  including  reasonable legal fees and  disbursements
                  arising in connection therewith.

            d.    Entire Agreement.  This Agreement and Exhibit A constitute the
                  entire  agreement  between Borrower and Lender with respect to
                  the   subject   matter   hereof   and   supersede   all  prior
                  understandings and agreements,  written or oral, regarding the
                  subject  matter.   Unless  otherwise  provided  herein,   this
                  Agreement may be modified or amended only by a written consent
                  executed by both parties.

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<PAGE>

            e.    Successors and Assigns.  This Agreement  shall be binding upon
                  and inure to the  benefit of the  Borrower  and the Lender and
                  their  respective  successors  and  assigns,  except  that the
                  Borrower  may not  transfer  or  assign  any of its  rights or
                  interests  hereunder  without the prior written consent of the
                  Lender.

            f.    Construction. This Agreement and the rights and obligations of
                  the parties hereunder and thereunder shall be governed by, and
                  construed  in  accordance  with,  the laws of the State of New
                  York.  Both parties  consent to the  jurisdiction of the state
                  and federal courts located in Rochester, New York with respect
                  to any disputes arising between the parties.

                           (Signature page to follow)

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         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement on
the date set forth above.

                                    BORROWER:

                                    BIOPHAN TECHNOLOGIES, INC.

                                    By:
                                         ---------------------------------------
                                    Printed Name:  Guenter Jaensch
                                    Title:  Chairman

                                    LENDER:

                                    BIOMED SOLUTIONS, LLC

                                    By:
                                         ---------------------------------------
                                    Printed Name:
                                                  ------------------------------
                                    Title:
                                           -------------------------------------

                                       10CONFIDENTIAL

                           BIOPHAN TECHNOLOGIES, INC.

                          AMP-BIOPHAN LICENSE AGREEMENT

This License  Agreement  is dated and  effective  February 24, 2005  ("Effective
Date"), and is between aMRIs Patent GmbH ("Licensor"),  a German company with an
office at Erinstr. 28, D-44575 Castrop-Rauxel, Germany and Biophan Technologies,
Inc.  ("Biophan"),  a Nevada  company with an office at 150 Lucius Gordon Drive,
Suite 215, West Henrietta, NY 14586.

Background. Licensor entered into a license agreement with aMRIs GmbH ("AMR"), a
German company with an office at Erinstr. 28, D-44575  Castrop-Rauxel,  Germany,
relating  to  magnetic  resonance  imaging  and safety  and image  compatibility
technologies (the "AMP-AMR License").  The AMP-AMR License has been cancelled as
of the Effective  Date,  and AMR has no further  interest in the Patent  Rights,
Know-how,  and Clinical IP. Consequently,  AMP is willing,  subject to the terms
and conditions hereof, to license exclusively to Biophan and its Affiliates (and
permit Biophan to sublicense) the Patent Rights, Know-how and Clinical IP.

Therefore, in consideration of the premises and promises in this Agreement,  the
parties agree as follows:

1.    DEFINITIONS. AS USED IN THIS AGREEMENT:

      1.1   Affiliate  means an entity that  controls,  is controlled  by, or is
under common control with a Licensee. For this purpose,  "control" means (i) the
power to direct or cause the  direction  of the  management  and  affairs of the
entity,  whether by direct or indirect  ownership of voting stock,  positions on
the board of  directors,  contract,  or  otherwise;  or (ii)  ownership of fifty
percent (50%) or more of the equity or other ownership  interest of such entity,
even if such  ownership  does not  result  in the  power to  direct or cause the
direction  of the  management,  affairs,  or  policies of such  entity.  For the
avoidance of doubt, AMR is a Biophan Affiliate.

      1.2   Clinical IP means all pre-clinical and clinical protocols,  studies,
data  and  results  and  study-related  forms,   materials  and  reports  (e.g.,
investigator  brochures,  informed consent forms,  data safety  monitoring board
related  documents,  patient  recruitment  related  materials,  biocompatibility
studies,  animal studies,  safety studies,  and  manufacturing and control data)
used in or resulting  from any  pre-clinical  or clinical  study or trial of any
Licensed Product/Process, any audit thereof, and any regulatory applications and
approvals regarding the same.

      1.3   Confidential Information means all business, financial and technical
information, reports, data, documents and other materials, whether in electronic
or physical form or orally disclosed, provided by one party ("Discloser") to the
other  party  ("Receiver"),  but  shall  exclude  any  part of the  Confidential
Information  to the extent  that:  (a) Receiver is required to disclose it under
governmental law,  regulation,  court order, or for filings with the FDA; or (b)
Receiver can demonstrate  (i) was public  knowledge at the time of disclosure to
Receiver,  (ii) became  public  knowledge  without  fault by Receiver;  (ii) was
rightfully  known by or in the  possession of Receiver  prior its  disclosure by
Discloser;  (iii) was  disclosed  to  Receiver on an  unrestricted  basis from a
source not known to be under a duty of confidentiality to Discloser;  or (iv) is
appropriate to disclose under  reasonable  confidentiality  restrictions  to any
prospects and their  financial,  legal,  and other advisors in connection with a
merger, acquisition or other business transaction.

*** Indicates  where material is omitted  pursuant to a  confidential  treatment
request and filed separately with the Commission.

<PAGE>

      1.4   FDA means the United States Food and Drug Administration.

      1.5   Field means systems, devices, components, compositions and processes
for  magnetic   resonance   imaging  that  provide  or  enhance  cost,   safety,
effectiveness,  applicability, ease of use, useful life, image quality, or image
compatibility.

      1.6   Invention  means any invention or discovery,  whether or not reduced
to practice.

      1.7   Joint  Invention  means  any  invention  that (i) is  related  to or
covered by any Patent  Right,  and (ii)  includes  co-inventors  from  Licensor,
Biophan, and/or AMR.

      1.8   Know-how  means  all  technical  information,  processes,  formulae,
compounds,   devices,   specifications,   records,   manufacturing  information,
materials,  designs, drawings and data, whether or not patentable and whether in
electronic, written or verbal form, useful or related to the Patent Rights.

      1.9   Licensed  Product/Process  means (i) stents or other medical devices
with  resonant  circuits  to  enhance  imaging,  (ii) vena cava  filters,  (iii)
guidewires,  and (iv) all other  products or processes,  the  manufacture,  use,
importation or sale of which is covered by a Valid Claim.

      1.10  Licensee means Biophan, Affiliates, and Sublicensees.

      1.11  Net Sales means amounts received for Licensed  Products/Processes by
Biophan and its Affiliates (whether for use, sale, lease or otherwise) less: (i)
payments made or credits  allowed to customers for  promotional  purposes,  (ii)
customary allowances, rebates, and trade, quantity, or cash discounts, including
discounts,  rebates or other payments required under Medicaid, Medicare or other
governmental  medical  assistance  programs,  to the extent actually allowed and
taken;  (iii) amounts repaid or credited for rejections or returns;  (iv) to the
extent separately stated on invoices or other documents of sale, taxes and other
governmental charges levied on the production,  sale, transportation,  delivery,
or use of a Licensed Product/Process which is paid by or on behalf of Biophan or
the  applicable  Affiliate;  and (v) outbound  transportation  costs  prepaid or
allowed and costs of insurance in transit.

      1.12  Patent Rights means: (i) the patents and patent  applications listed
on Exhibit A; (ii) reissues,  reexaminations,  renewals, extensions,  divisions,
continuations,  and  continuations-in-part of (i); (iii) foreign counterparts of
(i) and (ii); and (iv) Joint Inventions.

      1.13  Revenues  means  Biophan's and its  Affiliates'  gross license fees,
milestone  payments,  minimum  royalties,  and running royalty revenues received
from  Sublicenses,  but excludes  revenues to support  research and  development
efforts and reimbursement of out-of-pocket expenses.

                                      -2-
<PAGE>

      1.14  Sublicense means any sublicense or other agreement permitting the
commercial  exploitation  of any Patent  Right(s),  Know-how or Clinical IP by a
third party.

      1.15  Valid Claim means:  (i) a claim of an issued and unexpired patent of
the Patent  Rights  which has not been  disclaimed,  revoked or held  invalid or
unenforceable  by  an  unappealed  or  unappealable   decision  of  a  court  or
governmental  body,  and (ii) one or more claims of a patent  application  being
prosecuted in good faith,  for two (2) years following the first commercial sale
or use of a Licensed  Product/Process which is a Licensed Product/Process solely
as a result of the claim(s).

All  Exhibits  are  incorporated  by  reference  into  this  Agreement,  and any
reference to "include" or "including"  means "including but not limited to," and
any  reference  to  "and"  means  "and/or"  unless  the  context  clearly  means
otherwise.

2.    LICENSE GRANT.

      2.1   Grant  to  Biophan.  Licensor  hereby  grants  to  Biophan  and  its
Affiliates the exclusive, world-wide,  royalty-bearing,  right and license under
the Patent Rights,  Know-how and Clinical IP to develop,  make,  have made, use,
sell,   offer  to  sell,   import,   export,   lease,   and   perform   Licensed
Products/Processes in the Field.

      2.2   Sublicenses.  Biophan may grant  Sublicenses only in compliance with
the provisions of this Section 2.2 and Section 4.2 below, and not otherwise.  No
Sublicense shall be granted  (including but not limited to any Affiliate) unless
the  Payment  and Shares,  each as defined in Section  3.8.1,  have been paid as
required  hereunder  to Licensor  without  condition or escrow.  All  Sublicense
agreements  require the written approval of either Dr. Friebe or Dr. Melzer,  on
behalf of AMP. Without  limitation to the foregoing,  Sublicenses  shall require
reasonable  due  diligence  in  development  and  commercialization  of Licensed
Products/Processes.  Biophan  and  AMP  will  cooperate  to  pursue  appropriate
remedies if any  Sublicensee  defaults.  Any  Sublicense  may continue in effect
notwithstanding  termination of this Agreement.  Biophan may grant  Sublicenses,
for research and  development  purposes  only,  to AMR and any other third party
without payment.

      2.3   No  Challenges.  Licensor  shall not bring or  authorize or assist a
third party to bring any action under any other intellectual  property now or in
the future owned or licensed by Licensor to prevent a Licensee  from  exercising
those  rights  granted by  Licensor  to Biophan  and its  Affiliates  hereunder.
Licensor shall impose this covenant on any assignee of any Patent Rights.

3.    COMPENSATION.

      3.1   Royalties. Biophan shall pay Licensor a royalty of:

                                      -3-
<PAGE>

            3.1.1 [***]; and

            3.1.2 [***]

      3.2   Minimum  Royalties.  Biophan shall pay minimum royalties to Licensor
at the  rate of (i)  [***]  for the  first  year of the  term of this  Agreement
("Term");  (ii) [***] for the second year of the Term (it being  understood that
the second year of the Term commences on the first  anniversary of the Effective
Date);  and (iii)  [***];  minimums  may be credited  against  amounts due under
Section 3.1, but only for [***] after each minimum payment is made. Minimums are
payable quarterly on the first day of each calendar quarter, commencing with the
calendar quarter ending [***].

      3.3   Pro-Ration.

            3.3.1 Royalties. If Biophan or any of its Affiliates
            licenses  intellectual  property  from  one or  more  third  parties
            ("Third Parties") which also covers any Licensed  Product/Process of
            Biophan or the  Affiliate,  the royalty rate applied  under  Section
            3.1.1 as to Net Sales  derived  from that  Licensed  Product/Process
            will be [***]**

            3.3.2 Revenues. If Biophan includes in any Sublicense one
            or more  sublicenses of  intellectual  property of one or more Third
            Parties which covers any Licensed Product/Process, the percentage of
            Revenues  payable by Biophan under Section 3.1.2 as to that Licensed
            Product/Process will be: [***].

      3.4   Non-Cash Consideration.  In the event that consideration in addition
to or in lieu of money is received by Biophan,  an Affiliate  or other  Licensee
for the sale, use or distribution of Licensed  Product/Process in an arms-length
transaction,  the fair market value of such  consideration (as of the date it is
received by Biophan,  the Affiliate or other  Licensee) shall be included in the
determination  of Net Sales and Revenue,  as  applicable,  for such sale, use or
distribution transaction.  To the extent that Licensed Product/Process are sold,
licensed,  used, or distributed in other than an  arms-length  transaction,  Net
Sales and Revenue,  as  applicable,  for such  transaction  shall be the average
sales price of Licensed  Product/Process  during the applicable calendar quarter
in the country in which the non-arms-length transaction occurred.

      3.5   Payment Terms.  Royalties are payable  quarterly  within  forty-five
(45) days after each calendar quarter. Payments hereunder shall be considered to
be made as of the day on which they are received at Licensor's  designated bank.
If any amount collected or owed is stated in a currency other than United States
Dollars,  then, for purposes of calculating  the amount due Licensor  hereunder,
such amount shall be converted  into United States  Dollars at the exchange rate
between those two  currencies  published in The Wall Street Journal for the last
business  day of the  applicable  calendar  quarter for which such  payments are
being paid. If no such exchange rate for a currency in a country has been quoted
in The Wall Street  Journal  during the twelve (12) month period  preceding  the
date on which such amount  becomes due to Licensor  under this  Agreement,  such
amount payable for the country per unit of Licensed Product/Process shall be the
average  amount most recently paid by the Licensee for each unit of the Licensed
Product/Process  in the country with the largest sales volume of the  applicable
Licensed  Product/Process  for which a  currency  conversion  to  United  States
Dollars is published in The Wall Street Journal.

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

                                      -4-
<PAGE>

      3.6   Royalty   Term.    Royalties   are   payable   for   each   Licensed
Product/Process, on a country by country basis, [***].

      3.7   Tax  Withholding.  If Biophan or any of its  Affiliates is required,
under the laws of any  country,  to withhold any tax with respect to any payment
to Licensor, the tax will be deducted and paid to the taxing authority.  Biophan
or the applicable  Affiliate will notify Licensor and promptly  furnish Licensor
with original  receipts of any tax certificate or other available  documentation
evidencing the tax withheld.  Biophan and its Affiliates  will use  commercially
reasonable efforts to minimize any withholding.

      3.8   Additional Compensation.

            3.8.1 As a one-time  fee,  Biophan will (i) pay Licensor One Hundred
            Eighty-Five   Thousand   United  States  Dollars   ($185,000)   (the
            "Payment");  and (ii) issue to Licensor 200,000 shares of restricted
            common stock of Biophan,  par value $.005 per share (the  "Shares").
            The Shares are to be issued  subject to the terms and conditions set
            forth in Exhibit B.

            3.8.2 A wire  transfer for [***] of the Payment shall be made to the
            bank account  designated by Licensor  within two business days after
            Biophan has  received  wire  transfer  instructions  from  Licensor.
            Biophan  shall  issue a  certificate  for [***] to Licensor no later
            than  April 30,  2005;  however,  Licensor  shall not  transfer  the
            Initial Shares until the remaining [***] of the Shares are received.
            [***]

            3.8.3 Licensor  shall  have until  December  31,  2005,  to meet the
            condition of Section  3.8.2.  If the  condition  has not been met by
            that date,  Biophan may, at its  election,  grant  additional  [***]
            extensions  of  time  to  meet  the  condition  or  terminate   this
            Agreement.  Notwithstanding  any other  provision  contained in this
            Agreement,  if the  Payment  and Shares  have not been  received  by
            Licensor  by December  31,  2005,  Licensor  shall have the right to
            terminate  this  Agreement  without  recourse or liability  and such
            right shall  continue  until the remaining  [***] of the Payment and
            [***]  of the  Shares  are  received;  provided,  however,  that  if
            Licensor  exercises its termination  right under this Section 3.8.3,
            it shall  simultaneously  reimburse to Biophan the initial  [***] of
            the Payment received and assign the Initial Shares to Biophan.

4.    DUE DILIGENCE.

      4.1   Diligence. Biophan will use commercially reasonable diligent efforts
      to   complete   the   development   and   commercialization   of  Licensed
      Products/Processes  through Sublicenses,  subject to Sections 2.2 and 4.2.
      Biophan may, but is not obligated  to,  develop,  manufacture,  and market
      Licensed   Products/Processes  itself.  Biophan  will  provide  an  annual
      research, development and commercialization plan to Licensor.

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

                                      -5-
<PAGE>

      4.2   Sublicense Terms and Conditions. Each Sublicense shall be subject to
the  requirements  of Section  2.2 and no  Sublicense  shall be entered  into by
Biophan  or any  Affiliate  other than in strict  compliance  with the terms and
conditions of Section 2.2. Without limitation to the foregoing,  each Sublicense
shall be for one or more exclusive or non-exclusive  fields of use, with upfront
license fees, minimum pre-commercialization  quarterly R&D payments, and minimum
post-commercialization quarterly royalty payments.

      4.3   Assistance of AMR. If, as a result of an introduction initiated with
the assistance of Dr. Friebe or Dr. Melzer, Biophan enters into any intellectual
property  license  agreement  which does not cover  Patent  Rights,  Know-how or
Clinical IP, Biophan will pay AMR a finder's fee of [***] from time to time from
the licensee  under each such  agreement,  excluding  from the  computation  any
reimbursement  of expenses and research and  development  payments for bona fide
research and development  services performed by or on behalf of Biophan,  except
that  Biophan  will  pay  AMR a  finder's  fee  of  [***]  of the  research  and
development  payments  received  and  used by  Biophan  for  such  research  and
development.

5.    REPORTS/RECORDS.

      5.1   Progress.  After the  second and fourth  calendar  quarters  of each
      year, at the time royalty  payments are due, Biophan shall report progress
      against marketing plans and milestones.

      5.2   Books and  Records.  Each  Licensee  shall  keep  accurate  books of
      account  adequate to show amounts  payable  under this  Agreement  and the
      performance of Licensee's other obligations  hereunder for three (3) years
      after each applicable year.

      5.3   Audit Request.  Each Licensee will permit an independent,  certified
      public  accountant  appointed and paid by Licensor (or as to  Sublicenses,
      paid for by Biophan and  initiated  at the  request of either  Licensor or
      Biophan) and reasonably acceptable to Licensee, upon ten (10) days' notice
      and no more often than once per calendar  year, to examine and make copies
      of  applicable  records and other  documents  for the purpose of verifying
      amounts  and  reports  due  from,  and  obligations  to be  performed  by,
      Licensee.  The  results  of each  examination  will be made  available  to
      Licensor,  Biophan, and any applicable  Licensee,  and shall be considered
      Confidential Information.  Should the audit discover an underpayment equal
      to the  greater  of five  percent  (5%) or Twenty  Five  Thousand  Dollars
      ($25,000), the applicable Licensee shall pay the cost of the audit.

      5.4   Late Charge.  All overdue payments will be paid promptly with a late
      charge of two percent  (2%) per annum above the prime rate of J.P.  Morgan
      Chase Manhattan Bank, N.A., as reported by The Wall Street Journal for the
      first  business  day of the  month(s)  for which the  payment is  overdue.
      Interest is payable from the date the payment was due.

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

                                      -6-
<PAGE>

6.    PATENT PROSECUTION; JOINT INVENTIONS.

      6.1   Prosecution. Licensor shall grant to Biophan a power-of-attorney to
      prosecute  and  maintain  Patent  Rights  through  attorneys  of Biophan's
      choice.  Biophan will diligently  apply for,  prosecute,  and maintain the
      Patent Rights as Biophan deems best.  Biophan will keep Licensor  informed
      of the status of all patent  matters by an oral  quarterly  summary and an
      annual  written  summary.  Licensor will  cooperate with Biophan in patent
      prosecution as requested.  All information learned by Licensor pursuant to
      this Section 6.1 will be Confidential Information.

      6.2   Patent  Costs.  Biophan  will pay all legal  fees and  out-of-pocket
      costs  relating  to the filing,  prosecution,  and  maintenance  of Patent
      Rights from the Effective Date until sixty (60) days after  termination of
      this   Agreement.   Thereafter,   the   obligations   will  be  Licensor's
      responsibility.  Biophan may elect not to pay any such cost, in which case
      the  applicable  patent  or  patent  application  shall not be part of the
      Patent Rights and Licensor may assume the prosecution or  maintenance,  at
      Licensor's  expense.  If Licensor learns of any fees payable in connection
      with the Patent Rights, Licensor will promptly notify Biophan.

      6.3   Joint  Inventions.  This  Agreement is  partially a "joint  research
      agreement"  among  Licensor,  Biophan,  and AMR, as such an  agreement  is
      defined  under the CREATE  Act,  35 U.S.C.  Section  103(c),  under  which
      Biophan  will  carry out some of its  obligations  pursuant  to Section 4.
      Intellectual  property  developed  in the  fields of (i)  stents and other
      medical devices with resonant  circuits to enhance  imaging,  (ii) devices
      and methods to determine  the  position of a stent and other  positionable
      objects,  (iii)  vena cava  filters,  (iv)  guidewires,  (iv)  positioning
      methods,  (vi) blood vessel filters, and (vii) any other technologies that
      are within the scope of the Patent  Rights will be deemed made as a result
      of activities  undertaken within the scope of the joint research agreement
      and subject to the CREATE Act.

7.    INFRINGEMENT.

      7.1   Notice.   Each  party  shall  inform  the  other   promptly  of  any
      infringement of Patent Rights or misappropriation of Know-how.

      7.2   Enforcement. If any Patent Rights are infringed, Biophan, after
      consultation with Licensor,  shall have the right, but not the obligation,
      to bring a patent infringement suit, at its expense,  and to join Licensor
      in the suit. If Biophan  declines to bring any suit,  Licensor may proceed
      with a suit at its expense with Biophan's consent.

      7.3   Declaratory  Judgment  Suits.  If a  declaratory  judgment  suit  is
      brought   against   Licensor  or  any   Licensee,   alleging   invalidity,
      unenforceability, or non-infringement of any Patent Right, Biophan, at its
      option,  shall have the right,  within thirty (30) days after commencement
      of the suit, to assume the defense of the suit at its expense.

      7.4   Third  Party  Infringement  Suits.  Licensor  shall  cooperate  with
      Licensee in connection with its defense of third-party  claims of or suits
      for infringement or  misappropriation  related to the manufacture,  use or
      sale of Licensed  Products/Processes.  Licensor  shall,  have the right to
      join and be  represented  in any such suit, at its expense,  by counsel of
      its choice. All out-of-pocket  costs and expenses incurred by Licensee and
      any and all  damages  and other  sums  payable  by it in the suit shall be
      deducted from sums otherwise payable to Licensor.  Licensee shall have the
      right to settle any such  claim or suit,  subject  to  Licensor's  written
      consent, which will not be unreasonably withheld or delayed.

                                      -7-
<PAGE>

      7.5   Recovery.  Any amount  received as an award in a suit or as a result
      of a license or settlement agreement entered into pursuant to any claim or
      suit  under  Section  7.2,  7.3 or 7.4  shall  be  distributed  first,  to
      reimburse the parties, pro rata, for their actual out-of-pocket legal fees
      and expenses  incurred in connection  with the suit.  The balance shall be
      paid (i)  seventy  five  percent  (75%) to Biophan,  and (ii)  twenty-five
      percent (25%) to Licensor.  Payments shall be made within thirty (30) days
      after funds are received and shall be  accompanied  by a report  detailing
      the computation of the payments.

8.    REPRESENTATIONS/WARRANTIES.

Licensor represents and warrants to Licensee as follows:

      8.1   Ownership. Licensor owns all right, title and interest in and to the
      Patent  Rights  and the  Clinical  IP and has the  right to  practice  the
      Know-how,  free and clear of liens, security interests,  charges and other
      encumbrances,  and no third party has any  license,  covenant  not to sue,
      claim of ownership  or other  interest  therein.  No Patent Right has been
      abandoned.  To  Licensor's  knowledge,  Licensee's  practice of the Patent
      Rights and  Know-how  will not  infringe  any patent or other right of any
      third party, and the Patent Rights are valid and  enforceable.  Except for
      amounts due under  Section 3, no  statutory  or other amount is or will be
      owed to any current or prior owner, shareholder, inventor, or other person
      in connection with any Patent Right(s), Clinical IP, or Know-how.

      8.2   No  Claims.  No  claim  has  been  asserted  or  threatened  by  any
      third-party  alleging  that (i) any of the  Patent  Rights is  invalid  or
      unenforceable,  or  (ii)  the  development,  manufacture,  use or  sale of
      Licensed Products/Processes infringes the rights of any third person.

      8.3   AMR Rights.  The AMP-AMR  License is cancelled  as of the  Effective
      Date. All rights of AMR, if any, in Patent  Rights,  Know-how and Clinical
      IP as of the Effective Date have been assigned to AMP in their entirety.

      8.4   No Other  License.  No rights  with  respect to the  Patent  Rights,
      Know-how,  and  Clinical  IP have been  granted  except  pursuant  to this
      Agreement.

9.    INDEMNIFICATION; INSURANCE.

      9.1   Licensees. Any Licensee that manufactures or performs any Licensed
      Product/Process, shall indemnify, defend, and hold harmless Licensor (and,
      in  the  case  of   Sublicensees,   Biophan  also)  and  their  respective
      Affiliates,  officers,  employees,  agents,  successors,  and assigns (the
      "Indemnitees"),  against any claim,  demand,  liability,  damage, loss, or
      expense  (including  reasonable  attorneys'  fees  and  expenses,  whether
      incurred as the result of a third  party claim or a claim to enforce  this
      provision)  incurred  by  or  imposed  upon  any  of  the  Indemnitees  in
      connection with any third party claims, suits, or judgments arising out of
      any theory of liability  (including  tort,  warranty,  or strict liability
      suits or claims and whether or not such suit or claim has a factual basis)
      concerning any Licensed Product/Process  (collectively,  "Claims"), except
      to the extent that the  damages  claimed  were caused by Licensor  (or, if
      applicable, Biophan) or anyone under its direction or control.

                                      -8-
<PAGE>

      9.2   Procedure.  The  Indemnitees  shall  provide  Licensee  with  prompt
      written notice of any Claim for which indemnification is sought. Licensee,
      at its  expense,  shall  defend  any such  Claim.  The  Indemnitees  shall
      cooperate fully in such defense and permit Licensee to conduct and control
      the defense and the  disposition  of the Claim  (including  all  decisions
      relative  to  appeal,  and  settlement);   provided,   however,  that  any
      Indemnitee  shall  have  the  right  to  retain  its  own  counsel  at the
      Indemnitee's  expense.  Licensee  shall keep Licensor (or, if  applicable,
      Biophan)  informed of the progress in the defense and  disposition  of any
      Claim and shall consult with Licensor  (or, if  applicable,  Biophan) with
      regard to any  proposed  settlement.  Licensee  shall  obtain the  written
      consent of Licensor (or, if applicable,  Biophan) to any settlement  which
      would adversely affect Licensor (or, if applicable, Biophan).

      9.3   Insurance.  If  any  Licensee  manufactures,  sells  or  performs  a
      Licensed  Product/Process,  it shall  maintain in full force and effect at
      all times with a reputable commercial insurance carrier commercial general
      liability  insurance  of a type  as  may be  necessary  to  protect  their
      interests  and fulfill  its  obligations  under this  Agreement  (and,  if
      applicable,   under  its   Sublicense),   including   without   limitation
      contractual   liability   insurance,   covering   the   marketing,   sale,
      distribution,  use and  performance  of  Licensed  Products/Process  in an
      amount of at least Five Million  Dollars  ($5,000,000)  per occurrence and
      Ten Million  Dollars  ($10,000,000)  in the aggregate.  Such insurance (i)
      shall be issued by an insurer licensed to practice in, as to Biophan,  the
      State  of New  York  and  otherwise  in the  State(s)  in  which  Licensee
      undertakes activities in connection with the exercise of its rights, or an
      insurer  pre-approved  by  Licensor  (or  Biophan,  if  applicable),  such
      approval  not to be  unreasonably  withheld,  (ii)  shall be  endorsed  to
      include product  liability  coverage,  and (iii) shall require thirty (30)
      days' written notice to Licensor (or Biophan,  if  applicable)  before any
      cancellation or material  change.  Licensee shall,  upon request,  provide
      Licensor (or Biophan,  if applicable)  with  Certificates of Insurance and
      the underlying  policy(ies)  evidencing  compliance with this Section 9.3.
      Biophan and each such  Licensee  shall  maintain such  insurance  five (5)
      years after  termination  of this Agreement or any  Sublicense,  whichever
      occurs last.

10.   CONFIDENTIALITY.

      10.1  Confidential  Information.  During and for three (3) years after the
      Term, Receiver will use commercially  reasonable efforts, but no less than
      the protection given to its own confidential  information,  to maintain in
      confidence all Confidential  Information.  Receiver will only disclose the
      Confidential  Information to individuals  who reasonably need to know such
      Information for Receiver to perform its  obligations or otherwise  conduct
      its  activities  hereunder,  including  Receiver's  legal,  financial  and
      business advisors.

                                      -9-
<PAGE>

      10.2  Use of  Name.  No party  may at any  time  use the  name or  variant
      thereof of another party without the prior written consent of other party,
      which   consent   will   not  be   unreasonably   delayed   or   withheld.
      Notwithstanding  the  foregoing,  Biophan may state that the Patent Rights
      are licensed from Licensor.

11.   TERMINATION.

      11.1  Termination  by Licensor.  Licensor may terminate this Agreement and
      the rights  granted to Biophan  hereunder upon the happening of any of the
      following events:

            (i)   Biophan breaches any material provision of this Agreement
      and has not cured such breach  within  thirty (30) days after  notice from
      Licensor  specifying  the nature of such  breach or default in  reasonable
      detail;

            (ii)  Biophan generally ceases to conduct its business as it
      has generally conducted such business; or

            (iii) a bankruptcy petition is filed by or against Biophan,
      Biophan enters into creditor's arrangement or comparable proceeding,  or a
      receiver is appointed for  substantially  all of the assets or business of
      Biophan, and such petition, proceeding, or appointment is not dismissed or
      vacated within ninety (90) days from the date of such filing,  proceeding,
      or appointment.

      11.2  Termination by Biophan. Biophan may terminate this Agreement:

            (i)   without cause on thirty (30) days' written notice to
      Licensor but only by payment  simultaneous  with such  termination  of the
      Termination  Payment (as defined below),  and following such  termination,
      Biophan  will remain  liable for,  without  limitation,  all  payments due
      Licensor before the end of the 30-day notice period; or

            (ii)  if Licensor breaches any material provision of this
      Agreement  and has not cured the  breach  within  thirty  (30) days  after
      notice specifying the nature of the breach in reasonable detail.

"Termination  Payment" means (a) at any time prior to the end of the second year
of the Term,  as a  lump-sum  payment,  the  balance of any  payments  due under
Section 3.2 for the second year of the Term  determined  as if the Agreement had
not been terminated; (b) at any time following the end of the second year of the
Term where Biophan has satisfied its obligations  under Section 3.2 with respect
to the  second  year of the  Term  and to the  extent  due as of the  notice  of
termination,  any payments  under  Section 3.2 with respect to the third year or
fourth  year of the Term,  as a lump-sum  payment,  fifty  percent  (50%) of the
balance of any payments due under  Section 3.2 for the third year or fourth year
of the  Term,  whichever  is  the  year  of  termination,  determined  as if the
Agreement  had not been  terminated;  and (c) after the fourth year of the Term,
zero.

      11.3  Bankruptcy.  All rights and  licenses  granted  under or pursuant to
      this  Agreement  by Licensor to Licensee  are, for all purposes of Section
      365(n)  of  Title  11 of the  United  States  Code  ("Title  11") or other
      relevant bankruptcy or insolvency law (collectively,  "Law"),  licenses of
      rights to  "intellectual  property"  as  defined in Title 11 or such other
      Law. During the Term Licensor shall, to the extent practicable, create and
      maintain current copies of all such intellectual property. If a bankruptcy
      proceeding  is  commenced by or against  Licensor  under Title 11 or other
      Law, Licensee shall be entitled to a copy of any and all such intellectual
      property and all embodiments of such intellectual  property, and the same,
      if not in the  possession of Licensee,  shall be promptly  delivered to it
      (a) upon  Licensee's  written request  following the  commencement of such
      bankruptcy  proceeding,  unless  Licensor  or its  respective  trustee  or
      receiver, elects within thirty (30) days to continue to perform all of its
      obligations  under this  Agreement,  or (b) if not  delivered  as provided
      under clause (a) above, upon Licensee's request following the rejection of
      this  Agreement  by or on  behalf  of  Licensor.  If  Licensee  has  taken
      possession of all applicable  embodiments of the intellectual  property of
      Licensor  pursuant to this Section 11.3 and the trustee in  bankruptcy  of
      Licensor  does not reject  this  Agreement,  Licensee  shall  return  such
      embodiments  upon request.  If Licensor seeks or  involuntarily  is placed
      under Title 11 or other  provision  under  comparable  Law and the trustee
      rejects this Agreement as contemplated under 11 U.S.C.  365(n)(1) or other
      comparable  Law,  Licensee  hereby  elects,  pursuant to Section 365(n) or
      other  comparable Law, to retain all rights granted to Licensee under this
      Agreement to the extent permitted by law.

                                      -10-
<PAGE>

      11.4  Effect of  Termination.  Upon  termination of this Agreement for any
      reason,  nothing  herein will be  construed  to release any party from any
      obligation  that matured prior to the effective  date of the  termination.
      Subject  to the  foregoing,  Sections 3 (but only as to  Sublicenses  then
      outstanding),  5 (but for no longer  than the period  provided  in Section
      5.2),  and 9 through 14 will survive any such  termination.  Licensee may,
      however,  after the effective date of such termination,  sell all Licensed
      Products then in existence,  and complete Licensed Products in the process
      of manufacture at the time of such termination and sell the same, provided
      Licensee  makes the  payments  and  delivers  the  reports to  Licensor as
      required by this  Agreement.  Upon  termination,  Biophan  will assign its
      rights  under all  Sublicenses  to  Licensor,  and  Licensor  shall assume
      Biophan's rights and obligations under the Sublicenses.

      11.5  Return of Information.  Upon termination of this Agreement, Receiver
      will return all information (including Confidential Information) and other
      material  supplied  to  Receiver  directly  or  indirectly  by  Discloser,
      including  all copies  thereof in whole or in part made by or on behalf of
      Receiver,  except  that  Receiver  may  keep  one  archival  copy  of such
      materials.

12.   NOTICES.

      Any notices  required or permitted by this Agreement  shall be in writing,
and personally  delivered or sent by prepaid express courier service  (signature
required). Notices shall be effective upon receipt. Notices shall be sent to the
addresses of the parties  specified on the first page of this  Agreement or such
other address as changed by notice.  In the event of notice to Licensor,  a copy
shall be provided in like manner to: Stephen Kutenplon,  Esq., Tarlow Breed Hart
& Rodgers, PC, 101 Huntington Avenue, Boston, Massachusetts 02199.

                                      -11-
<PAGE>

13.   GENERAL COMPLIANCE WITH LAWS.

      13.1  Compliance with Laws.  Licensee shall comply with all local,  state,
      federal,   and  international   laws  and  regulations   relating  to  its
      performance under this Agreement and, as applicable, its performance under
      any  Sublicense  to which it is at any  time a  party,  including  but not
      limited to the  development,  manufacture,  use,  and sale of any Licensed
      Product/Process,  including  export  control  laws.  Without  limiting the
      generality of this Section 13.1,  Licensee  shall be  responsible  for the
      preparation  and submission of all  applications  relating to any required
      regulatory approval of any Licensed Product/Process, whether by the FDA or
      other regulatory body.

      13.2  Marking  of  Products.  Licensee  shall  mark  all of  its  Licensed
      Products  that are  manufactured  or sold  under this  Agreement  with the
      number of each applicable  patent of the Patent Rights that applies to the
      Licensed Products. Licensee shall annually provide Licensor with notice of
      compliance with this Section 13.2.

14.   MISCELLANEOUS.

      14.1  Entire  Agreement.  This Agreement  contains the entire agreement of
      the  parties  with  respect to its  subject  matter,  and  supersedes  all
      previous  negotiations,  agreements and commitments  with respect thereto,
      written or oral.  It may be changed only by a writing  signed by the party
      or parties against whom enforcement of any waiver, modification, extension
      or discharge is sought. Neither party may assign its rights or obligations
      hereunder  without  the  prior  written  consent  of the  other,  and this
      Agreement  is  binding   upon  the  parties  and  their   representatives,
      successors, and permitted assigns.

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

      14.3  Headings. The headings contained in this Agreement are for reference
      purposes only and will not affect in any way the meaning or interpretation
      of this Agreement.

      14.4  Governing Law. This Agreement will be governed by and construed in
      accordance  with the laws of the State of New York,  without  reference to
      principles  of conflict of laws  thereof.  No provision of this  Agreement
      will be applied or  construed  in a manner  inconsistent  with  applicable
      federal  laws and  regulations.  Courts  located  in the County of Monroe,
      State of New York and Boston,  Massachusetts shall each have non-exclusive
      jurisdiction  over claims or disputes  involving this  Agreement,  and the
      parties consent to the irrevocable exclusive jurisdiction of the state and
      federal courts located in both locations.  Licensor agrees that service of
      process may be made upon it by delivering any pleadings or other documents
      to Licensor's counsel as specified in Section 12. If such service is made,
      Licensor shall not assert that it has not been adequately  served and will
      not raise any related defense or other objection with respect thereto.

                                      -12-
<PAGE>

IN WITNESS  WHEREOF,  the parties  hereto have executed this  Agreement  through
their duly authorized representatives.

aMRIs Patente GmbH                                  Biophan Technologies, Inc.

BY:      __________________________        BY:      ___________________________

             Dr. Michael Friebe                           Timm Diestel

Per  power-of-attorney  granted  by       Per  power-of-attorney  granted  by
Geschaftsfuhrer of aMRIs Patente GmbH     the  CEO of Biophan Technologies, Inc.

Dr. Michael Friebe  ("Friebe") and Dr. Andreas Melzer  ("Melzer"),  both of whom
control Licensor, hereby agree from and after the Effective Date to execute such
documents and perform such acts as are necessary or desirable to effect the full
intent and purposes of this Agreement,  including  Section 3.8, and agree not to
do  anything  inconsistent  with  effecting  such intent and  purposes.  Without
limiting  the  foregoing,  if any Patent  Right(s)  is(are)  not  licensable  by
Licensor  to Biophan  and its  Affiliates  because  the  transfer  of any Patent
Right(s) to  Licensor  was not legally  valid,  Friebe and Melzer,  on behalf of
themselves  and any  entity  either or both own or  control,  including  without
limitation "Dr.  Michael Friebe  Patenthalte  GbR",  herewith license the Patent
Right(s) to Biophan and its Affiliates on the applicable terms set forth in this
Agreement.

------------------------------------               -----------------------------
         Dr. Michael Friebe                            Dr. Andreas Melzer

AMR is a party to this  Agreement  for the purposes of Sections 6.3 and 8.3. AMR
agrees to (1) the  applicable  terms and conditions of Sections 6.3 and 8.3, and
(2)  execute  such  documents  and  perform  such acts as Biophan may request to
effect the intent and purposes of those Sections.

aMRIs GmbH

BY:      __________________________

ITS:              Geschaftsfuhrer

                                      -13-
<PAGE>

<TABLE>
<CAPTION>
                                    EXHIBIT A

                                  Patent Rights

[***]

--------------------------------------------------------------------------------------------------------------------------
                         Applicant               Inventors         Assignment      Assignment     Assignment    Registered
                                                                  Inventors to   to Friebe GBR    GBR to AMP      Owner
                                                                    --------
--------------------------------------------------------------------------------------------------------------------------
<S>                <C>                      <C>                   <C>                                            <C>
 [***]             [***]                    [***]                 [***]

 [***]             [***]

 [***]             [***]                                                                                         [***]

------------------------------------------                       ---------------------------------------------------------
 [***]             [***]                                                                                         [***]
------------------------------------------                       ---------------------------------------------------------
 [***]             [***]
------------------------------------------                       ---------------------------------------------------------
 [***]             [***]

 [***]
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>

[***]

--------------------------------------------------------------------------------------------------------------------------
                         Applicant               Inventor      Assignment      Assignment       Assignment      Registered
                                                              Inventors to   to Friebe GBR     GBR to AMP         Owner
                                                                --------
--------------------------------------------------------------------------------------------------------------------------
<S>                        <C>                    <C>
[***]                     [***]                   [***]

                          [***]
[***]
                          [***]
[***]

[***]
--------------------------------------------------------------------------------------------------------------------------
[***]                     [***]
--------------------------------------------------------------------------------------------------------------------------
[***]                     [***]
--------------------------------------------------------------------------------------------------------------------------
[***]                     [***]
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[***]

--------------------------------------------------------------------------------------------------------------------------
                   Applicant       Inventor        Assignment        Assignment     Assignment    Assignment   Registered
                                              Inventor to Siemens      Siemens    to Friebe GBR   GBR to AMP     Owner
--------------------------------------------------------------------------------------------------------------------------
<S>                  <C>          <C>                                 <C>
[***]               [***]         [***]                               [***]

---------------------------------                 ------------------------------------------------------------------------
[***]               [***]                                             [***]

--------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Per Dr. Muller.

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[***]

-------------------------------------------------------------------------------------------------------------------------
                   Applicant       Inventors       Assignment    Assignment  Assignment to  Assignment GBR    Registered
                                                  Inventors to    Siemens     Friebe GBR        to AMP           Owner
                                                    --------
-------------------------------------------------------------------------------------------------------------------------
<S>                <C>             <C>                            <C>                                          <C>
[***]              [***]          [***]                           [***]                                        [***]

---------------------------------                 -----------------------------------------------------------------------
[***]
-------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Per Dr. Muller.

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[***]

-------------------------------------------------------------------------------------------------------------------------
                       Applicant          Inventor    Assignment   Assignment to   Assignment GBR to AMP    Registered
                                                     Inventors to    Friebe GBR                               Owner
                                                       --------
-------------------------------------------------------------------------------------------------------------------------
<S>            <C>                       <C>           <C>
[***]          [***]                     [***]

-------------------------------------------------------------------------------------------------------------------------
[***]          [***]                     [***]         [***]

-------------------------------------------------------------------------------------------------------------------------

<CAPTION>

* Per Dr. Muller.

[***]

-------------------------------------------------------------------------------------------------------------------------
                         Applicant          Inventor     Assignment     Assignment    Assignment GBR to AMP   Registered
                                                        Inventors to  to Friebe GBR                              Owner
                                                          --------
-------------------------------------------------------------------------------------------------------------------------
<S>             <C>                       <C>
[***]           [***]                     [***]

-------------------------------------------------------------------------------------------------------------------------
</TABLE>

* Per Dr. Muller.

*** Material  omitted  pursuant to a  confidential  treatment  request and filed
separately with the Commission.

<PAGE>

<TABLE>
<CAPTION>
[***]

-------------------------------------------------------------------------------------------------------------------------
                            Applicant        Inventor        Assignment        Assignment    Assignment GBR    Registered
                                                            Inventors to     to Friebe GBR       to AMP          Owner
                                                              --------
-------------------------------------------------------------------------------------------------------------------------
<S>                     <C>                <C>
 [***]                  [***]             [***]

 [***]

------------------------------------------                ---------------------------------------------------------------
 [***]                  [***]

 [***]

-------------------------------------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                    EXHIBIT B

               Share Terms, Conditions, Restrictions, and Benefits

                                    EXHIBIT B

               Share Terms, Conditions, Restrictions and Benefits

      1.    Definitions. In addition to capitalized terms that are
defined in context, the following terms shall have the meanings set forth below.

      1.1   Biophan Shares. "Biophan Shares" shall mean the Shares
and any other  securities  of Biophan  issued in exchange  for the Shares,  as a
dividend  on  the  Shares  or  in  connection   with  a  stock  split  or  other
reorganization transaction affecting the Shares.

      1.2   Exchange  Act.  "Exchange  Act" means the United  States  Securities
Exchange Act of 1934, as amended.

      1.2   Holders. "Holders" shall mean Licensor and any person to
whom Biophan Shares are transferred in accordance with the terms of this Exhibit
B.

      1.3   Securities Act.  "Securities Act" means the United States Securities
Act of 1933, as amended.

      2.    Representations of Holders. Each Holder represents and
warrants to Biophan that:

      2.1   Such Holder has received all the information it considers
necessary or  appropriate  for deciding  whether to acquire the Biophan  Shares.
Such Holder has had an  opportunity  to ask  questions  and receive full answers
from Biophan concerning,  among other things,  Biophan, its financial condition,
its management, its prior activities and any other information which such Holder
considers relevant or appropriate in connection with making an investment in the
Biophan Shares.

      2.2   Such Holder acknowledges that Biophan Shares may be
characterized  as "restricted  securities"  under U.S.  federal  securities laws
inasmuch as they are being acquired from Biophan 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 Securities Act, only in
certain limited circumstances. Such Holder accepts and is able to bear the risks
of holding Biophan Shares indefinitely.  Such Holder, together with any advisors
of such Holder,  is capable of assessing  the risks of an  investment in Biophan
Shares and is fully aware of the economic risks thereof.

      2.3   Such Holder is acquiring Biophan Shares for investment
for such Holder's own account, not as a nominee or agent, and not with a view to
the resale or distribution  of any part thereof,  and such Holder has no present
intention of selling,  granting any participation in, or otherwise  distributing
the same.  Such Holder does not have any  contract,  undertaking,  agreement  or
arrangement  with any person to sell,  transfer or grant  participations  to any
person with respect to any of Biophan Shares. Such Holder has not been organized
for the purpose of acquiring the Biophan Shares.

<PAGE>

      2.4   Such Holder is not a United States resident and/or a
United  States  citizen  (and at the time such Holder made a decision to acquire
Biophan  Shares,  such Holder was outside of the United  States  (including  its
territories and possessions,  any of the several States of the United States and
the District of Columbia),  and such Holder has satisfied  itself as to the full
observance  of the  laws  of any  jurisdiction  applicable  to  such  Holder  in
connection with the purchase of Biophan Shares.  Such Holder's investment in and
such Holder's continued  beneficial  ownership of, Biophan Shares will not cause
such  Holder  to  violate  any  applicable  securities  or  other  laws  of  any
jurisdiction applicable to such Holder.

      2.5   Such Holder's residence is outside the United States
(including its  territories  and  possessions,  any of the several States of the
United  States and the  District  of  Columbia),  and such  Holder is not a U.S.
Person as defined in Rule 902(k) of Regulation S under the Securities  Act. Such
Holder has not taken any actions  that would cause the offer and sale of Biophan
Shares to such Holder not to be made in an offshore  transaction  (as defined in
Rule 902(h) of Regulation  S), no directed  selling  efforts (as defined in Rule
902(c) of Regulation S) were made by such Holder in the United States,  and such
Holder is not  acquiring  Biophan  Shares for the account or benefit of any U.S.
Person.  Such Holder  understands  and  acknowledges  that Biophan Shares may be
issued in a transaction not subject to registration  under the Securities Act by
virtue of Regulation S promulgated under the Securities Act.

      3.    Representations of Biophan. Biophan represents and
warrants to each Holder that:

      3.1.  Capitalization. Biophan's authorized capital stock
consists  of  125,000,000  shares  of  common  stock,  $.005 par value per share
("Buyer Common Stock"),  of which 74,017,832  shares were issued and outstanding
as of January 13, 2005. Biophan's stock option plan provides for the granting of
options to Biophan's employees, directors, consultants and advisors, to purchase
an aggregate of up to 13,000,000  shares of Buyer Common  Stock.  As of February
29, 2004, Biophan had outstanding  options and warrants to purchase an aggregate
of  7,800,529  shares of Buyer Common  Stock.  Except for shares of Buyer Common
Stock  described in this Section 3.1 or issued after  January 13, 2005,  options
and warrants  described in this Section 3.1 or granted after  February 29, 2004,
as of the date of this  Agreement  (i) there are no  outstanding  subscriptions,
options,  conversion rights, warrants, or other agreements or commitments of any
nature  whatsoever  (either firm or  conditional)  obligating  Biophan to issue,
deliver,  sell, or cause to be issued,  delivered,  or sold,  any Biophan Common
Stock  or any  additional  shares  or  other  equity  interests  in  Biophan  or
obligating  Biophan  to  grant,  extend,  or enter  into any such  agreement  or
commitment,  and (ii) there are no rights of first refusal,  pre-emptive rights,
or other similar  agreements  obligating  Biophan to offer Biophan Shares or any
other shares of Biophan's share capital to any person.

                                      -2-
<PAGE>

      3.2.  Duly Issued Shares. The Shares have been duly authorized
and when issued in accordance with this Agreement will be validly issued,  fully
paid and non-assessable.

      3.3   Securities Laws. Biophan has not in the past nor will it
hereafter  take any action to sell,  offer for sale or solicit offers to buy any
securities  of Biophan  which would  subject the offer,  issuance or sale of the
Shares,  as contemplated by this Agreement,  to the  registration  provisions of
Section 5 of the Securities  Act.  Neither Biophan nor any of its affiliates (as
defined in Rule 501(b) of Regulation D under the  Securities  Act) has directly,
or through any agent,  (i) sold,  offered for sale,  solicited  offers to buy or
otherwise negotiated in respect of, any "security" (as defined in the Securities
Act) which will be integrated with the sale of the Shares in a manner that would
require the registration of the Shares under the Securities Act, or (ii) engaged
in any form of general  solicitation or general  advertising (as those terms are
used in Regulation D under the Securities  Act) in connection  with the offering
of the Shares.  Subject to the accuracy of the  representations  and  warranties
contained in Section 2, the issuance of the Shares  hereunder is exempt from the
registration and prospectus delivery requirements of the Securities Act.

      3.4   SEC Filings. Since January 1, 2003, Buyer has filed all
reports  (collectively,  the "SEC Reports")  required to be filed by it with the
Securities and Exchange  Commission by the  Securities  Exchange Act of 1934, as
amended (the "Exchange Act").  The SEC Reports:  (i) were prepared in accordance
with the  requirements of the Exchange Act in all material respect s, and (i) as
of their  respective  dates,  did not contain any untrue statement of a material
fact  or omit to  state  any  material  fact  necessary  in  order  to make  the
statements  made therein,  in light of the  circumstances  under which they were
made, not misleading.

      4.    Covenants of Holders. Each Holder covenants and agrees as follows:

            4.1   Each Holder acknowledges and understands that Biophan
Shares are "restricted  securities" as defined in Rule 144 promulgated under the
Securities  Act.  Each Holder  hereby agrees not to offer or sell (as such terms
are  defined in the  Securities  Act and the rules and  regulations  promulgated
thereunder) any Biophan Shares unless such offer or sale is made (i) pursuant to
an effective  registration  of Biophan  Shares under the  Securities  Act and/or
applicable state  securities laws, (ii) pursuant to an available  exemption from
the  registration  requirements  of the Securities Act and/or  applicable  state
securities laws, or (iii) in accordance with Regulation S promulgated  under the
Securities  Act.  Each  Holder  agrees  that  it  will  not  engage  in  hedging
transactions  with regard to Biophan  Shares other than in  compliance  with the
Securities  Act  and  the  rules   promulgated   thereunder.   Each  certificate
representing Biophan Shares shall contain the following legend:

                                      -3-
<PAGE>

         THE SHARES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN  REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR
         UNDER ANY STATE  SECURITIES  LAWS.  THESE  SHARES MAY NOT BE OFFERED OR
         SOLD  UNLESS SUCH OFFER OR SALE IS MADE (i)  PURSUANT  TO AN  EFFECTIVE
         REGISTRATION OF THESE SHARES UNDER THE SECURITIES ACT AND/OR APPLICABLE
         STATE SECURITIES LAWS, (ii) PURSUANT TO AN AVAILABLE EXEMPTION FROM THE
         REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND/OR STATE SECURITIES
         LAWS, OR (iii) IN ACCORDANCE  WITH  REGULATION S PROMULGATED  UNDER THE
         SECURITIES ACT. HEDGING TRANSACTIONS  INVOLVING THESE SHARES MAY NOT BE
         CONDUCTED  EXCEPT IN COMPLIANCE  WITH THE  SECURITIES ACT AND THE RULES
         PROMULGATED THEREUNDER.

            4.2   If at any time or from time to time after the sale of any
Biophan Shares has been registered  under the Securities Act,  Biophan  notifies
the Holders in writing that the registration statement or the prospectus forming
a part thereof (taking into account any prior amendments or supplements thereto)
pursuant to which the sale of such Biophan  Shares was  registered  contains any
untrue  statement of a material fact or omits to state a material fact necessary
to make the statements  therein,  in light of the circumstances under which they
are made, not misleading, the Holders shall not offer or sell any Biophan Shares
or engage in any other transaction involving or relating to Biophan Shares, from
the time of the  giving of notice  with  respect  to such  untrue  statement  or
omission until the Holders  receive written notice from Biophan that such untrue
statement or omission no longer exists or has been  corrected or disclosed in an
effective  post-effective  amendment to such  registration  statement or a valid
prospectus supplement to the prospectus forming a part thereof.

            4.3   In connection with any sale of Biophan Shares registered
under the Securities Act, the Holders shall (i) deliver to the purchaser thereof
the prospectus forming a part of the applicable  registration  statement and all
relevant  supplements thereto which have been provided by Biophan to the Holders
on or  prior  to the  applicable  delivery  date,  all in  accordance  with  the
requirements  of the  Securities Act and the rules and  regulations  promulgated
thereunder  and any  applicable  blue sky laws,  and (ii) with the provisions of
Regulation M promulgated under the Exchange Act.

            4.4   Biophan may refuse to register (or permit its transfer
agent to  register)  any transfer of any Biophan  Shares not made in  accordance
with this Section 4 and for such purpose may place stop order  instructions with
its  transfer  agent with  respect to Biophan  Shares.  Any  transfer of Biophan
Shares  other  than in  connection  with an offer or sale  registered  under the
Securities  Act  will  require  the  Holder  to  deliver  an  opinion  in a form
reasonably  acceptable to Biophan from counsel reasonably  acceptable to Biophan
that the offer or sale of Biophan Shares is exempt from  registration  under the
Securities  Act or complies  with the  requirements  of Regulation S promulgated
under the Securities Act.

                                      -4-
<PAGE>

            4.5   The Holders will cooperate with Biophan in all respects
in connection with the  performance by Biophan of its obligations  under Section
5, including  timely supplying all information  reasonably  requested by Biophan
(which shall include all information  regarding the Holders,  and any person who
beneficially  owns Biophan Shares held by the Holders within the meaning of Rule
13d-3  promulgated  under the Exchange  Act, and the proposed  manner of sale of
Biophan Shares required to be disclosed in any  registration  statement in which
any Biophan  Shares are  included)  and  executing  and  returning all documents
reasonably  requested in connection  with the  registration  and sale of Biophan
Shares.  Each  Holder  hereby  consents  to be named as an  underwriter  in each
registration  statement in which such Holder's  Biophan Shares are included,  if
applicable,  in accordance with current Commission policy and, if necessary,  to
join in the request of Biophan for the acceleration of the effectiveness of such
Registration Statement.

            4.6   No Holder nor any entity controlling any Holder, under
such Holder's control or under common control with such Holder has, prior to the
execution of this Agreement,  and will not, for a period of eighteen (18) months
following the  execution of this  Agreement,  carry a net short  position in the
common  stock  of  Biophan,   participate  in  any  short  selling   activities,
recommendations, or collusion, directly or indirectly, as such activities relate
to the common stock of Biophan. A net short position will include any derivative
instruments  such as a put option,  collar,  swap or any other  instrument which
would result in a net short position.

            5.    Registration of Biophan Shares.

            5.1   Subject to Section 5.2, if Biophan for itself or any of
its security  holders shall at any time or times after the date hereof determine
to register  under the  Securities  Act any shares of its capital stock or other
securities  (other  than:  (i) the  registration  of an  offer,  sale  or  other
disposition  of securities  solely to employees  of, or other persons  providing
services  to,  Biophan,  or any  subsidiary  pursuant  to an employee or similar
benefit plan; or (ii) relating to a merger,  acquisition or other transaction of
the type  described  in Rule 145 under the  Securities  Act or a  comparable  or
successor rule,  registered on Form S-4 or similar or successor  forms), on each
such occasion Biophan will notify each Holder then owning Biophan Shares of such
determination at least thirty (30) days prior to the filing of such registration
statement,  and upon the request of any Holder  given in writing  within  twenty
(20) days after the receipt of such  notice,  Biophan  will cause any of Biophan
Shares  specified  by any  such  Holder  to be  included  in  such  registration
statement to the extent such  registration  is permissible  under the Securities
Act  and  subject  to the  conditions  of the  Securities  Act  (an  "Incidental
Registration").  The  Holders  shall  be  deemed  to have  so-called  piggy-back
registration rights by virtue of this Section 5.1 with respect to the Shares.

            5.2   If an Incidental Registration is an underwritten
registration, and the managing underwriters shall give written advice to Biophan
that, in their opinion,  market conditions dictate that no more than a specified
maximum  number of  securities  as to all holders  thereof  (the  "Underwriter's
Maximum Number") could successfully be included in such Registration,  then: (i)
Biophan  shall be  entitled  to  include  in such  registration  that  number of
securities  which Biophan proposes to offer and sell for its own account in such
registration  and which does not exceed the  Underwriter's  Maximum Number;  and
(ii) Biophan may include in such  registration  that number of securities  which
shall have been requested by the holders thereof  demanding such registration by
proper exercise of so-called demand registration  rights,  (iii) Biophan will be
obligated  and  required to include in such  registration  that number of Shares
which  shall have been  requested  by the  Holders  thereof  and that  number of
securities  which have been requested to be included by the holders  thereof who
are exercising so-called  piggy-back  registration rights (such Shares and other
securities  collectively,  "Pari  Passu  Securities")  to the full extent of the
remaining  portion of the  Underwriter's  Maximum  Number,  and (iv) Biophan may
thereafter  include in such  registration  any additional  securities which have
been  requested  to be  included by the holders  thereof  having no  contractual
registration  rights to the extent of the remaining portion of the Underwriter's
Maximum Number.  If less than all of the Pari Passu  Securities  requested to be
included  in any such  registration  can be so  included  due to these  priority
requirements, then the Pari Passu Securities so included will be allocated among
the holders of Pari Passu  Securities pro rata in accordance  with the number of
Pari  Passu  Securities  sought  to be  included  in such  registration  by such
holders.

                                      -5-
<PAGE>

            5.3   As used herein, the term "Registration Statement" means a
registration statement on such applicable form as determined by Biophan. Biophan
may  withdraw a  Registration  Statement  at any time whether or not it has been
declared  effective  and  may  de-register  any  Biophan  Shares  included  in a
Registration  Statement so long as all securities  included in the  Registration
Statement  in  which  such  Biophan   Shares  are  included  as   simultaneously
de-registered.  The  Holders'  rights  under this  Section 5 shall expire on the
first anniversary of the date on which the Shares are issued.

            5.4   Biophan shall furnish to the Holders with respect to
Biophan  Shares   registered  under  a  Registration   Statement  (and  to  each
underwriter,  if  any,  of  such  Biophan  Shares)  such  number  of  copies  of
prospectuses and such other documents as the Holders may reasonably  request, in
order  to  facilitate  the  public  sale or other  disposition  of all or any of
Biophan Shares by the Holders pursuant to such Registration Statement.

            5.5   Biophan shall file or cause to be filed such documents as
are  required  to be filed by Biophan for normal  blue sky  clearance  in states
specified in writing by the Holders;  provided,  however, that Biophan shall not
be  required  to qualify to do  business or consent to service of process in any
jurisdiction in which it is not now so qualified or has not so consented.

            5.6   With a view to making available to the Holders the
benefits  of Rule 144,  Biophan  agrees  that so long as a Holder  owns  Biophan
Shares purchased pursuant to this Agreement, to:

                  (i)   comply with the  provisions of paragraph  (c)(1) of Rule
                        144; and

                  (ii)  file with the  Commission in a timely manner all reports
                        and  other  documents  required  to be filed by  Biophan
                        pursuant to Section 13 or 15(d) under the Exchange  Act;
                        and,  if at any  time it is not  required  to file  such
                        reports but in the past had been required to or did file
                        such reports,  it will, upon the request of the Holders,
                        make available other  information as required by, and so
                        long as necessary to permit sales of its Biophan  Shares
                        pursuant to, Rule 144.

                                      -6-
<PAGE>

            5.7   Biophan shall bear all expenses incurred by it in
connection  with the  procedures in paragraphs 5.1 through 5.6 of this Section 5
and the registration of Biophan Shares pursuant to each Registration  Statement.
Biophan  shall not be  responsible  for any  expenses  incurred by any Holder in
connection  with  its  sale  of  Biophan  Shares  or  its  participation  in the
procedures  in paragraphs  5.1 through 5.6 of this Section 5 including,  without
limitation,  any fees and  expenses of counsel or other  advisers to the Holders
and any underwriting  discounts,  brokerage fees and commissions incurred by the
Holders.

            5.8   The rights of Holders under this Section 5 are not
transferable  except that  Licensor may transfer its rights under this Section 5
to its  shareholders  in  connection  with a  distribution  of  Shares  to  such
shareholders; provided, such shareholders shall in connection with such transfer
make the  representations and warranties of Holders and agree to comply with the
provisions of this Exhibit B applicable to Holders.

            5.9   Information Available. So long as a Registration
Statement is effective covering the resale of Biophan Shares then still owned by
the Holders, Biophan will furnish to the Holders:

            (a)   as soon as practicable after available, copies of (i) its
Annual Report to  Stockholders  (which  Annual  Report shall  contain  financial
statements audited in accordance with generally accepted  accounting  principles
by a firm of  certified  public  accountants),  (ii) upon written  request,  its
Annual Report on Form 10-K or 10-KSB,  (iii) upon written request, its Quarterly
Reports on Form 10-Q or 10-QSB,  (iv) upon written request,  its Current Reports
on Form 8-K, and (v) a full copy of each Registration  Statement (the foregoing,
in each case, excluding exhibits); and

            (b)   upon the written request of the Holders, all exhibits
excluded by the parenthetical to subparagraph (a)(v) of this Section 5.9.

            6.    Indemnification.

            6.1.  Indemnification of Biophan. Each Holder will indemnify,
defend,  and hold harmless  Biophan and its officers,  directors,  shareholders,
representatives,  agents,  and affiliates  (collectively,  "Biophan  Indemnified
Parties") from,  against,  and in respect of all claims,  liabilities,  actions,
suits, proceedings, assessments, judgments, losses, damages, costs, and expenses
(including  interest,  penalties,  and reasonable  accountants',  experts',  and
attorneys' fees and  disbursements,  whether incurred in a third party action or
an action to enforce this provision) (collectively,  "Damages"), arising out of,
relating  to,  or  resulting  from (i) any  inaccuracy  or  breach of any of the
written  representations or warranties of such Holder made in this Exhibit B; or
(ii) the breach of any covenant,  obligation,  or agreement of such Holder to be
performed, fulfilled, or complied with pursuant to this Exhibit B.

                                      -7-
<PAGE>

            6.2   Indemnification of Holders. Biophan will indemnify, defend,
and  hold  harmless  each  Holder  and its  officers,  directors,  shareholders,
representatives,  agents, and affiliates (collectively,  the "Holder Indemnified
Parties") from, against,  and in respect of all Damages arising out of, relating
to,  or  resulting  from (i) any  inaccuracy  or  breach  of any of the  written
representations  or  warranties  of Biophan  made in this Exhibit B; or (ii) the
breach of any  covenant,  obligation,  or agreement of Biophan to be  performed,
fulfilled, or complied with pursuant to this Exhibit B.

            6.3.  Legal Nature and Survival of Representations, Warranties,
Covenants   and   Indemnification.   As  used  in  this  Exhibit  B,  the  terms
"representation", "warranty" and the verbs "to represent" and "to warrant" refer
to separate promises of guarantee.  The representations and warranties set forth
in  the  this  Exhibit  B will  survive  the  issuance  of the  Shares  and  any
investigation  at any time made by or on behalf of  Biophan or the  Holders,  as
applicable, and will survive perpetually.  The representations and warranties of
the  Holders   shall  not  be  affected  or  deemed  waived  by  reason  of  any
investigation  made by or on behalf of Biophan  (including but not limited to by
any of their respective  advisors,  consultants or representatives) or by reason
of the fact that Biophan or any of such advisors, consultants or representatives
know or should have known that any such  representation  or warranty is or might
be inaccurate.

            6.4.  Limitation on Indemnification Obligations of Holders.
The provisions of Section 6.1 shall be subject to the following provisions:

                  (a) In no event shall either Holder have any indemnification
obligation under Section 6.1 or otherwise in excess of the sum of 50% of the sum
of (a) US  $200,000,  plus (b) the portion of the  Payment  received by Licensor
under Section 3.8.1 of the attached License Agreement;  provided,  however,  the
foregoing  limitation  shall  not  apply  in the  event  that  the  breach  of a
representation  under  clause  (i) of Section  6.1 is based on the  conduct of a
Holder which is finally  determined by a final  judgment of a court of competent
jurisdiction to have constituted fraud by either Holder committed with an actual
intent to deceive Biophan ("Fraud Finding");

                  (b) In no event shall either Holder have any
liability for  indemnification or otherwise under Section 6.1 until the total of
all Damages with respect to such  indemnification  matters exceeds US $25,000.00
(the  "Claim  Threshold"),  and then only for the total  amount of all Losses in
excess of the Claim Threshold;  provided that the Claim Threshold will not apply
in the event of a Fraud Finding;

                  (c) Biophan agrees, for itself and each of the other Biophan
Indemnified  Parties that the sole and  exclusive  remedy for any breach of this
Exhibit B by  Holders  for any  Damages  arising  herefrom  or  related  hereto,
including  without  limitation,  any  misrepresentation,  breach of  covenant or
warranty,  shall be the right of  indemnification as and to the extent set forth
in this Section 6, and in all events subject to all of the  limitations  herein,
Biophan waiving all and each other available remedy, at law or in equity, except
that any right to specific performance and such other rights and remedies as may
be  available  in the  event of a breach  based on a Fraud  Finding  are  hereby
reserved;

                                      -8-
<PAGE>

                  (d) Biophan on behalf of itself and each of the other Biophan
Indemnified  Parties,  agrees that with respect to any Damages for which it, she
or he is entitled to indemnification hereunder, it shall first seek indemnity or
reimbursement,  as applicable,  under any policy or policies of insurance  which
provides  coverage  against the loss that is the subject matter of such Damages,
if any,  before  being  entitled  to any  recovery  from the  Holders,  with the
Holders'  indemnity  obligations  being  limited to that  portion of the Damages
which  is not  covered  by  such  insurance  (i.e.  any  deductibles  or  excess
exposure);

                  (e) the Holders' indemnification undertakings in this Section
6 are personal to the Biophan and each of the other Biophan  Indemnified Parties
as they  exist as of the  Effective  Date and may not be  enforced  by any other
person; and

                  (f) In no instance will either of the Holders ever be liable
to any  of the  Biophan  Indemnified  Parties  for  consequential,  special,  or
indirect  damages  arising out of,  related to, or in any way  connected to this
Exhibit B.

            6.5. Limitation on Indemnification Obligation of Biophan. The
provisions of Section 6.2 shall be subject to the following provisions:

                  (a) In no event shall Biophan have any liability for
indemnification  or otherwise  under  Section 6.2 until the total of all Damages
with respect to such  indemnification  matters exceeds the Claim Threshold,  and
then only for the total  amount of all Losses in excess of the Claim  Threshold;
provided  that the Claim  Threshold  will not  apply in the  event  that (1) the
breach of a  representation  under  clause  (i) of  Section  6.2 is based on the
conduct of a Holder which is finally  determined by a final  judgment of a court
of competent  jurisdiction to have constituted  fraud by either Holder committed
with an actual intent to deceive Biophan  ("Biophan Fraud Finding"),  or (2) the
breach of a covenant  under  clause  (ii) of Section  6.2 is based on  Biophan's
failure  to  comply  with its  obligations  under  Section  5.1 or  Section  5.2
("Piggy-back Rights Covenants");

                  (b) Each  Holder  agrees,  for  itself  and each of the  other
Holder Indemnified  Parties that the sole and exclusive remedy for any breach of
this Exhibit B by Biophan,  for any Damages arising  herefrom or related hereto,
including  without  limitation,  any  misrepresentation,  breach of  covenant or
warranty,  shall be the right of  indemnification as and to the extent set forth
in this Section 6, and in all events subject to all of the  limitations  herein,
Holders waiving all and each other available remedy, at law or in equity, except
that any right to specific performance and such other rights and remedies as may
be available to it in the event of a breach based on a Biophan Fraud Finding are
hereby  reserved and any right to specific  performance  is also reserved in the
event of a breach of the Piggy-back Rights Covenants;

                                      -9-
<PAGE>

                  (c) Each Holder, on behalf of itself and each of the other
Holder  Indemnified  Parties,  agrees that with respect to any Damages for which
it, she or he is  entitled  to  indemnification  hereunder,  it shall first seek
indemnity  or  reimbursement,  as  applicable,  under any policy or  policies of
insurance which provides coverage against the loss that is the subject matter of
such Damages,  if any, before being entitled to any recovery from Biophan,  with
Biophan's  indemnity  obligations  being  limited to that portion of the Damages
which  is not  covered  by  such  insurance  (i.e.  any  deductibles  or  excess
exposure);

                  (d) Biophan's indemnification undertakings in this Section
6 are personal to the Holders and each of the other Holder  Indemnified  Parties
as they  exist as of the  Effective  Date and may not be  enforced  by any other
person; and

                  (e) In no instance will Biophan ever be liable to any of the
Holder  Indemnified  Parties for  consequential,  special,  or indirect  damages
arising out of, related to, or in any way connected to this Exhibit B.

            6.6.  Registered  Sale of Biophan  Shares.  For the  purpose of this
Section 6.6:

                  (i)   the term "Holders'  Affiliate" shall mean any person who
                        controls  either of the  Holders  within the  meaning of
                        Section  15 of the  Securities  Act or Section 20 of the
                        Exchange Act; and

                  (ii)  the term  "Registration  Statement"  shall  include  any
                        final  prospectus,   exhibit,  supplement  or  amendment
                        included  in or  relating  to a  Registration  Statement
                        referred to in Section 5.

            (a) Subject to the provisions of Section 6.5, Biophan agrees to
indemnify and hold harmless the Holders and each Holders' Affiliate,  against
any losses, claims, damages, liabilities or expenses, joint or several, to which
such Holders or such Holders' Affiliate may become subject, under the Securities
Act,  the  Exchange  Act,  or  any  other  federal  or  state  statutory  law or
regulation,  or at common  law or  otherwise  (including  in  settlement  of any
litigation, if such settlement is effected with the written consent of Biophan),
insofar as such losses, claims, damages,  liabilities or expenses (or actions in
respect  thereof as  contemplated  below) arise out of or are based upon (i) any
untrue statement or alleged untrue statement of any material fact contained in a
Registration  Statement,  as amended as of the date the applicable  Registration
Statement  is  declared   effective  (the  "Effective   Date"),   including  any
information deemed to be a part thereof as of the time of effectiveness pursuant
to paragraph  (b) of Rule 430A,  or pursuant to Rule 434  promulgated  under the
Securities Act, or the  prospectus,  in the form first filed with the Commission
pursuant  to  Rule  424(b)  of  the  Regulations,  or  filed  as  part  of  such
Registration  Statement at the time of effectiveness if no Rule 424(b) filing is
required (the "Prospectus"),  or any amendment or supplement  thereto,  and (ii)
the omission or alleged omission to state in such  Registration  Statement as of
the  applicable  Effective Date a material fact required to be stated therein or
necessary  to  make  the  statements  in  such  Registration  Statement  or  any
post-effective  amendment or  supplement  thereto,  or in the  Prospectus or any
amendment or supplement  thereto,  not misleading,  in each case in the light of
the  circumstances  under which the statements  contained therein were made, and
will  reimburse the Holders and each such  Holders'  Affiliate for any legal and
other expenses as such expenses which are reasonably  incurred by the Holders or
such Holders' Affiliate in connection with investigating,  defending,  settling,
compromising  or paying  any such loss,  claim,  damage,  liability,  expense or
action;  provided,  however, that Biophan will not be liable in any such case to
the extent that any such loss, claim, damage, liability or expense arises out of
or is based upon (w) an untrue statement or alleged untrue statement or omission
or alleged  omission made in a  Registration  Statement,  the  Prospectus or any
amendment or supplement  thereto in reliance upon and in conformity with written
information furnished to Biophan by any Holder expressly for use therein, or (x)
the failure of any Holder to comply with the covenants and agreements  contained
in Section 4 of this Exhibit B respecting the sale of Biophan Shares, or (y) the
inaccuracy of any representations made by any Holder herein or (z) any statement
or omission in any  Prospectus  that is corrected or disclosed in any subsequent
Prospectus  that was  delivered to the Holders  prior to the  pertinent  sale or
sales by the Holders.

                                      -10-
<PAGE>

            (b)  Subject to the  provisions  of Section  6.4,  each  Holder will
indemnify and hold harmless Biophan, each of its directors, each of its officers
who signed a  Registration  Statement  and each  person,  if any,  who  controls
Biophan within the meaning of the  Securities Act and the Exchange Act,  against
any losses, claims,  damages,  liabilities or expenses to which Biophan, each of
its directors,  each of its officers who signed such  Registration  Statement or
controlling  person may become  subject,  under the Securities Act, the Exchange
Act, or any other federal or state statutory law or regulation, or at common law
or otherwise  (including in settlement of any litigation,  if such settlement is
effected  with the  written  consent of such  Holder)  insofar  as such  losses,
claims,  damages,  liabilities  or expenses  (or  actions in respect  thereof as
contemplated  below)  arise out of or are based  upon (i) any  failure to comply
with the covenants and agreements  contained in Section 4 hereof  respecting the
sale of Biophan  Shares,  or (ii) any (x) untrue or alleged untrue  statement of
any material fact contained in such Registration Statement,  the Prospectus,  or
any  amendment or  supplement  thereto,  or (y) omission or alleged  omission to
state  in such  Registration  Statement,  the  Prospectus  or any  amendment  or
supplement thereto a material fact required to be stated therein or necessary to
make  the  statements  in  such  Registration  Statement  or  any  amendment  or
supplement thereto, or in the Prospectus or any amendment or supplement thereto,
not misleading,  in each case in the light of the circumstances under which they
were made; provided,  that such Holder's  indemnification  obligation under this
clause (ii) shall apply to the extent, and only to the extent,  that such untrue
statement or alleged untrue  statement or omission or alleged  omission was made
in such Registration Statement,  the Prospectus,  or any amendment or supplement
thereto, in reliance upon and in conformity with written  information  furnished
to Biophan by such Holder expressly for use therein, and will reimburse Biophan,
each of its  directors,  each  of its  officers  who  signed  such  Registration
Statement  or  controlling  person  for any legal and other  expense  reasonably
incurred by Biophan, each of its directors, each of its officers who signed such
Registration  Statement or controlling person in connection with  investigating,
defending,  settling,  compromising  or paying  any such  loss,  claim,  damage,
liability, expense or action.

                                      -11-
<PAGE>

            (c)  Promptly  after  receipt  by an  indemnified  party  under this
Section 6.6 of notice of the threat or commencement of any action, such
indemnified  party will, if a claim in respect  thereof is to be made against an
indemnifying  party under this Section  6.6,  promptly  notify the  indemnifying
party in writing thereof;  provided,  the omission so to notify the indemnifying
party  will  not  relieve  it  from  any  liability  which  it may  have  to any
indemnified  party for  contribution  (except as provided in Section  6.6(d)) or
otherwise than under the indemnity agreement contained in this Section 6.6 or to
the extent it is not  prejudiced as a result of such  failure.  In case any such
action is brought against any indemnified party and such indemnified party seeks
or intends to seek indemnity from an indemnifying  party, the indemnifying party
will be entitled to participate in, and, to the extent that it may wish, jointly
with all other indemnifying  parties similarly  notified,  to assume the defense
thereof with counsel  reasonably  satisfactory to such indemnified  party.  Upon
receipt of notice from the indemnifying  party to such indemnified  party of its
election so to assume the defense of such action and approval by the indemnified
party of counsel,  the indemnifying party will not be liable to such indemnified
party  under  this  Section  6.6 for any  legal or other  expenses  subsequently
incurred by such indemnified party in connection with the defense thereof unless
the indemnified party shall not have employed counsel reasonably satisfactory to
the  indemnified  party to represent the  indemnified  party within a reasonable
time after notice of commencement  of action,  in which case the reasonable fees
and expenses of counsel shall be at the expense of the indemnifying party.

            (d) If the  indemnification  provided  for in  this  Section  6.6 is
required by its terms but is for any reason held to be unavailable to or
otherwise  insufficient to hold harmless an indemnified  party under  paragraphs
(a) or (b) of this  Section  6.6 in  respect  to any  losses,  claims,  damages,
liabilities or expenses referred to herein (subject to the limitation of Section
6.6(c)), then each applicable  indemnifying party shall contribute to the amount
paid or payable by such  indemnified  party as a result of any  losses,  claims,
damages, liabilities or expenses referred to herein (i) in such proportion as is
appropriate to reflect the relative benefits received by Biophan and the Holders
from the sale of Biophan Shares as contemplated by this Exhibit B or (ii) if the
allocation  provided by clause (i) above is not permitted by applicable  law, in
such  proportion  as is  appropriate  to reflect not only the relative  benefits
referred  to in clause  (i)  above but the  relative  fault of  Biophan  and the
Holders in connection  with the statements or omissions or  inaccuracies  in the
representations  and  warranties in this Exhibit B that resulted in such losses,
claims,  damages,  liabilities  or  expenses,  as  well  as any  other  relevant
equitable considerations.  The relative fault of Biophan on the one hand and the
Holders on the other shall be  determined  by reference  to, among other things,
whether the untrue or alleged  statement  of a material  fact or the omission or
alleged  omission  to state a material  fact or the  inaccurate  or the  alleged
inaccurate  representation  and/or warranty  relates to information  supplied by
Biophan or by the Holders and the parties' relative intent, knowledge, access to
information and  opportunity to correct or prevent such  statement,  omission or
inaccuracy.  The amount  paid or  payable by a party as a result of the  losses,
claims,  damages,  liabilities and expenses referred to above shall be deemed to
include,  subject to the limitations  set forth in Section 6.6(c),  any legal or
other fees or  expenses  reasonably  incurred by such party in  connection  with
investigating  or defending  any action or claim.  The  provisions  set forth in
Section 6.6(c) with respect to the notice of the threat or  commencement  of any
threat or action  shall  apply if a claim for  contribution  is to be made under
this Section  6.6(d);  provided,  however,  that no  additional  notice shall be
required  with  respect to any threat or action for which  notice has been given
under Section  6.6(c) for purposes of  indemnification.  Biophan and each Holder
agree that it would not be just and equitable if  contribution  pursuant to this
Section 6.6 were determined solely by pro rata allocation or by any other method
of  allocation  which  does not take  account  of the  equitable  considerations
referred to in this  paragraph.  Notwithstanding  the provisions of this Section
6.6, the Holders shall not be required to contribute any amount in excess of the
amount by which the sale price of Biophan  Shares sold exceeds the amount of any
damages that the Holders have  otherwise  been required to pay by reason of such
untrue or alleged untrue  statement or omission or alleged  omission.  No person
guilty of fraudulent  misrepresentation  (within the meaning of Section 11(f) of
the Securities  Act) shall be entitled to  contribution  from any person who was
not guilty of such fraudulent misrepresentation.

                                      -12-
<PAGE>

         6.7 Remedies.  Each Holder,  in addition to being  entitled to exercise
all rights  provided to it herein,  be entitled to specific  performance  of its
rights under Section 5 but only to the extent such Holder is in compliance  with
such Holder's obligations under Section 4.

                                      -13-

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