Document:

Exhibit 10.1

                         ASSIGNMENT/ASSUMPTION AGREEMENT

     This Agreement is entered into this 23rd day of April, 2001, by and between
Developed Technology Resource, Inc., a Minnesota corporation ("DTR") and DTR-Med
Pharma Corp., a Nevada corporation.

                                    Recitals

     A. DTR-Med Pharma Corp. is a wholly owned subsidiary of DTR.

     B. DTR is a party to an agreement entitled "Agreement for Transfer of
Patent and Proprietary Rights" dated September 5, 1995, and an amendment to that
agreement dated August 29, 1996, which are together referred to herein as the
"Transfer Agreement," a copy of which is attached as Exhibit A.

     C. The Transfer Agreement transfers certain medically related patents and
technology identified therein (the "Technology") from Medical Biophysics
International, a Minnesota partnership (referred to as "MBI"), to Artann
Corporation, a New Jersey corporation.

     D. DTR was a 50% partner in MBI, and Armen P. Sarvazyan ("Sarvazyan"), a
resident of New Jersey, was a 50% partner of MBI.

     E. Artann Corporation is owned and controlled by Sarvazyan.

     F. The Technology was subsequently assigned by Artann Corporation to ArMed,
L.L.C., an Alabama limited liability company which was succeeded by ArMed,
L.L.C., a Delaware limited liability company, which was, in turn, succeeded by
ArMed, Inc., a Delaware corporation.

     G. Under the Transfer Agreement, DTR is entitled to receive payments (the
"Percentage Based Payments") from Artann Corporation based upon the gross
revenues received by Artann Corporation from (i) the manufacture and sale of
home use breast cancer detection systems, utilizing the Technology, (ii) the
licensing or assignment to third parties of the rights to manufacture and sell
breast cancer detection systems, utilizing the Technology, and (iii)
distributions made by ArMed, Inc. The Transfer Agreement and a separate Security
Agreement dated June 15, 1997, a copy of which is attached as Exhibit B (the
"Security Agreement"), grants to DTR a security interest in units (or membership
interests) of ArMed, L.L.C., an Alabama limited liability company, owned by
Sarvazyan and Artann Corporation, as collateral for payment Percentage Based
Payments.

     H. DTR is desirous of transferring, and DTR-Med Pharma Corp. is desirous of
receiving, the interests of DTR in the Transfer Agreement and Security
Agreement, in consideration of the issuance by DTR-Med Pharma Corp. of 1,221,890
shares of its $0.001 par value common stock.

                                   Agreement

     Now, therefore, in consideration of the recitals and the mutual covenants
contained herein, the parties hereto agree as follows:

     1. Assignment by DTR. DTR assigns and transfers to DTR-Med Pharma Corp.,
all of its rights and interests under the Transfer Agreement and the Security
Agreement.

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     2. Assumption of Obligations. DTR-Med Pharma Corp. accepts the assignment
and transfer, and assumes and agrees to satisfy DTR's obligations under the
Transfer Agreement in accordance with the terms thereof.

     3. Acknowledgment of Receipt of Certificates. DTR-Med Pharma Corp.
acknowledges that it has not received certificates representing the interests of
Sarvazyan or Artann Corporation in ArMed, Inc., to be held as collateral under
the terms of a security interest granted to DTR under the Transfer Agreement and
the Security Agreement to secure the payment of the Percentage Based Payments as
provided thereunder.

     4. Representation of DTR. Except to the extent that the assets of ArMed LLC
(the Alabama limited liability company) were assigned to ArMed LLC (the Delaware
limited liability company) which were in turn assigned to ArMed, Inc., a
Delaware corporation, without proper documentation of the security interests of
DTR by Artann Corporation and Sarvazyan, to insure that DTR has a perfected
security interest in ArMed, Inc.'s capital stock held by Artann Corporation and
Sarvazyan, to the knowledge of DTR, neither Artann Corporation or Sarvazyan are
in default of the terms of the Transfer Agreement.

     5. Limitation of Warranties and Representations. DTR's assignment and
transfer hereunder is without warranty or representation, except as expressly
provided herein. Specifically, but not with the intention of limiting the
foregoing statement, DTR does not warrant the enforceability of the Transfer
Agreement or any provision thereof, the future performance of the parties to the
Transfer Agreement, or the perfection of the security interest in the ArMed,
Inc. interest held by Sarvazyan or Artann Corporation.

     6. Indemnification/Hold Harmless. DTR-Med Pharma Corp. will indemnify and
hold harmless DTR from all causes of action, proceedings, liabilities, cost and
expenses (including reasonable attorneys fees) suffered or incurred by DTR under
and as a result of the Transfer Agreement, and the assignment thereof under this
Agreement, except where such causes of action or proceedings were initiated, or
such liabilities, costs, and expenses were incurred, prior to the date of this
Agreement.

     In Witness Whereof, the parties hereto execute this Agreement as of the
date first above written.

Developed Technology Resource, Inc.         DTR-Med Pharma Corp.

By: /s/ John Hupp                          By: /s/ John Hupp
    ---------------------------                --------------------------------
    John Hupp, Vice President                  John Hupp, President

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                                    EXHIBIT A

             Agreement for Transfer of Patent and Proprietary Rights

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             AGREEMENT FOR TRANSFER OF PATENT AND PROPRIETARY RIGHTS

     This Agreement for Assignment of Patent and Proprietary Rights (the
"Agreement") is entered into effective as of the September 5, 1995, by and among
Medical Biophysics International, a Minnesota partnership ("MBI"), with
principal offices at 12800 Whitewater Drive, Minnetonka, Minnesota 55343;
Developed Technology Resource, Inc., a Minnesota corporation ("DTR"), with
principal offices at 12800 Whitewater Drive, Suite 170, Minnetonka, Minnesota
55343; Armen P. Sarvazyan, whose business address is 138 Hardenburg Lane, East
Brunswick, New Jersey 08816 ("Sarvazyan"); and Artann Corporation dba Artann
Laboratories, a New Jersey corporation ("Artann"), with principal offices at 138
Hardenburg Lane, East Brunswick, New Jersey 08816 ("Artann").

                                    RECITALS

A.   DTR and Sarvazyan are the only partners of MBI and each holds a 50%
     partnership interest in MBI;

B.   Sarvazyan and his spouse own more than 51% of the capital stock of Artann
     and maintain voting control over Artann;

C.   Sarvazyan and the other inventors of the MBI Technology have previously
     assigned all right, title and interest in the MBI Technology to MBI; and

D.   MBI desires to assign the MBI Technology to Artann, and DTR and Sarvazyan
     are willing to consent to such assignment pursuant to the terms of this
     Agreement.

                                    AGREEMENT

     In consideration of the foregoing Recitals, which are incorporated with and
are made a part of this Agreement, and in further consideration of the mutual
covenants and agreements contained in this Agreement, the parties hereto agree
as follows:

                             ARTICLE 1: DEFINITIONS

     Whenever they are used in this Agreement, the following capitalized terms
shall have the respective meanings defined in this ARTICLE 1.

     1.1 Affiliate. "Affiliate" shall mean any present or future domestic or
foreign corporation or entity which shall be owned or controlled directly or
indirectly by Artann or Sarvazyan or which owns or controls Artann (either
directly or indirectly) or which is under common ownership or control with
Artann (either directly or indirectly).

     1.2 MBI Technology. "MBI Technology" means any and all knowledge,
information, know-how, methods and devices, whether patentable or not, owned or
controlled by MBI and relating to the method or process of elasticity imaging as
disclosed or shown in the MBI Patents for any purpose and the following assets
of MBI: computers, electrical and electronic components, Teksean pressure sensor
arrays and software purchased by MBI for project development.

     1.3 MBI Patents. "MBI Patents" means all method, device and/or apparatus
patents and patent applications (in any country) that are owned or controlled by
MBI, alone or jointly with others, and which relate to the MBI Technology,
including, without limitation (i) U.S. Patent No. 5,265,612, dated November 30,
1993, entitled "Intracavity Ultrasonic Device for Elasticity Imaging," (the
"Existing Device Patent") and any non-U.S. counterparts, and any continuations,

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continuations-in-part, or divisional applications and any U.S. or non-US.
patents resulting from such applications and any reissues thereof and (ii)
International Publication Number WO 94/14375, dated July 7, 1994, entitled
"Method and Apparatus for Elasticity Imaging," (the "Pending Method/Device
Patent") and any continuations, continuations-in-part, or divisional
applications and any U.S. or non-US. patents resulting from such applications
and any reissues thereof.

     1.4 Patented Products. "Patented Products" means each and every product
that is covered by any valid claim of any of the MBI Patents (including issued
patents and pending patents). Each claim of the MBI Patents shall be presumed
valid in accordance with 35 U.S.C. 282.

     1.5 Licensing of Patented Products. "Licensing of Patented Products" means
the licensing by Artann or its Affiliates of the MBI Patents to enable a third
party to manufacture the Patented Products.

     1.6 Manufacture and Sale of Patented Products. "Manufacture and Sale of
Patented Products" means the manufacture and sale by Artann or its Affiliates of
Patented Products.

     1.7 Gross Revenue. "Gross Revenue" means the gross royalty, invoice or
billing price for Licensing of Patented Products or the Manufacture and Sale of
Patented Products (as the case may be) by Artann or its Affiliates, with no
deductions except for: (1) the actual cost of freight charges, if any, if stated
separately from the ordinary net invoice price; (2) trade, quantity and cash
discounts, if any, actually allowed; (3) any taxes or duties applicable to such
products, provided such taxes or duties are actually paid and are shown
separately from the net invoice price of such products (no deduction shall be
made for taxes based on net income); and (4) such credits or allowances, if any,
given or made because of the rejection or return of such products.

     1.8 Confidential Information. "Confidential Information" means the
technical information, know-how, technology, formulae, devices, designs,
configurations, prototypes, ideas, inventions, improvements, data, files,
supplier and customer identities and lists, accounting records, project
management plans, and other information and documentation to which a person or
entity has rights relating to this Agreement or the MBI Technology (embodied in
the MBI Technology) and all copies and tangible embodiments thereof (in whatever
form or medium) that are not known to the public.

         ARTICLE 2: TRANSFER AND COMMERCIALIZATION OF THE MBI TECHNOLOGY

     2.1 Assignment of MBI Technology to Artann. Subject to the provisions of
this Agreement, MBI hereby assigns and transfers to Artann all of MBI's right,
title and interest in the MBI Technology, including without limitation, the MBI
Patents, computers, electrical and electronic components, Teksean pressure
sensor arrays and software purchased by MBI for project development (the
"Assignment"). The parties agree that MBI will execute and deliver such
additional assignments of the MBI Technology and MBI Patents to Artann as may be
necessary to perfect the foregoing Assignment, including without limitation, any
assignments of the MBI Patents for filing with any governmental patent office.

     2.2 Warranty Disclaimer. The MBI Technology is transferred to Artann "as
is" and without warranty. DTR AND MBI EXCLUDE AND DISCLAIM ALL EXPRESS AND
IMPLIED WARRANTIES, INCLUDING SPECIFICALLY ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR OF FITNESS FOR PARTICULAR PURPOSE.

     2.3 Subsequent Transfers. Artann and its Affiliates may sell, assign,
license, sublicense, grant security interests in or otherwise transfer rights to
the MBI Technology and MBI Patents only pursuant to a written agreement that is
subject to and consistent with all of the terms

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and conditions of this Agreement (a "Subsequent Transfer"). Artann will not
enter into a Subsequent Transfer arrangement or agreement without DTR's prior
written consent.

     2.4 Continued Efforts of Artann. Artann shall use reasonable efforts
consistent with the exercise of its best judgment to exploit the rights
transferred under this Agreement, and shall develop a plan for developing and
commercializing the MBI Technology and the MBI Patents, directly and/or through
approved sublicensing or other ventures, on terms not inconsistent with the
terms of this Agreement.

             ARTICLE 3: PRESERVATION OF INTELLECTUAL PROPERTY RIGHTS

     3.1 Patent Prosecution. Except for reimbursement by MBI pursuant to Section
3.2 below, Artann shall hereafter have the right to file and prosecute, in its
name, United States and foreign patent applications and maintain such patents in
connection with the MBI Technology. The parties acknowledge that Artann shall
have final authority over all decisions concerning prosecution of patents
pertaining to the MBI Technology. Artann and Sarvazyan agree to keep DTR fully
informed of all patent filing and prosecution efforts for the MBI Technology,
and give DTR the opportunity to comment on such filing and prosecution efforts.

     3.2 Reimbursement By MBI of Costs for Prosecution of the Pending
Method/Device Patent in the United States. MBI will promptly reimburse or pay
all expenses incurred by Artann in the prosecution in the United States of the
Pending Method/Device Patent and a continuation-in-part (CIP) application on
"Apparatus for Ultrasonic Elasticity Imaging" (the "CIP Application"); provided,
however, the obligations of MBI under this Section 3.2 shall terminate after
reimbursement or payment by MBI of an aggregate of $5,000 for such patent
prosecution. MBI will pay all fees that will be required for having the pending
MBT Patent issued.

     3.3 Payment to Nick Westman. MBI will promptly pay Nick Westman his
outstanding invoices in the aggregate amount of $1,500 for previous services
rendered by Mr. Westman in the prosecution of the MBI Patents.

     3.4 Infringement of the MBI Patents. If any party hereto obtains evidence
of alleged infringement of the MBI Patents, such party shall promptly notify the
other parties in writing of such potential infringement. Artann shall have the
right, but not the obligation, to bring suit at its expense against such alleged
third party infringer and to settle any such suit. In the event Artann decides
to bring suit, Artann shall give prompt written notice to DTR of such decision
to commence litigation.

     3.5 Confidentiality. Each of the parties agrees to hereafter maintain the
confidentiality of all Confidential Information.

                           ARTICLE 4: PAYMENTS TO DTR

     4.1 Acknowledgment By MBI and Sarvazyan of Payments-to DTR: Payment of
$9,000 Obligation. MBI and Sarvazyan each acknowledge and agree that: (i) all of
the payments to DTR under this ARTICLE 4 are in consideration of the Assignment
by MBI and DTR's 50% ownership interest in MBI and (ii) Sarvazyan, waives
payment by Artann or MBI of any additional consideration for such Assignment.
The parties acknowledge that under a prior letter of understanding dated June
18, 1992, the authors of the inventions, including, without limitation, A.
Skovoroda, S. Emelianov and Sarvazyan (the "Authors"), must be rewarded for
assigning patent rights to MBI by payment by Artann to the Authors of an
aggregate amount of (a) $3,000, payable upon approval of the "Existing Device
Patent" with a total amount of payment up to an aggregate of $20,000 from
proceeds of commercialization of such patent and (b) $6,000 payable upon
approval of the "Pending Method/Device Patent" with a total amount of payment up
to an

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aggregate of $100,000 from proceeds of commercialization of such patent. If the
source of funding related to the MBI Technology that becomes available to Artann
is not a license fee, royalty or other payment from product sales but is a
direct investment, $240,000 from such investment will be paid to MBI and
distributed to the MBI partners on a pro rata basis as follows: (i) $120,000 to
DTR and (ii) $120,000 to Sarvazyan (Artann) for due payment to the Authors and
for the expenses of future patenting and development of MBI Technologies. Artann
assumes and will indemnify DTR for all responsibilities for payments to the
Authors. DTR shall have no responsibilities for payments to the Authors or any
other inventors of the MBI Technology.

     4.2 $120,000 Payment. Artann shall pay DTR, commencing on the date of this
Agreement: (i) thirty-three and one-third percent (33-1/3%) of the Gross
Revenues of Artann and its Affiliates from Licensing of Patented Products
anywhere in the world and (ii) three and one-third percent (3-1/3%) of the Gross
Revenues of Artann and its Affiliates from the Manufacture and Sale of Patented
Products anywhere in the world; up to a maximum payment of $120,000 to DTR under
this Section 4.2 (the "$120,000 Payment"). The parties acknowledge that DTR will
not receive 50% of the Gross Revenues because Artann has agreed to assume all
responsibilities for payments to the Authors.

     4.3 Additional Percentage Payments to DTR. In addition to the $120,000
Payment, Artann shall pay each of the following percentage payments to DTR until
latest expiration date of the MBI Patents and any extensions thereof (the
"Additional Percentage Payments"):

          (a) Commencing on the date of this Agreement: (i) twenty percent (20%)
     of the Gross Revenues of Artann and its Affiliates from Licensing of
     Patented Products anywhere in the world that are based on the Existing
     Device Patent and (ii) two percent (2%) of the Gross Revenues of Artann and
     its Affiliates from the Manufacture and Sale of Patented Products anywhere
     in the world that are based on the Existing Device Patent;

          (b) Commencing on the issuance of the Pending Method/Device Patent:
     (i) ten percent (10%) of the Gross Revenues of Artann and its Affiliates
     from Licensing of Patented Products anywhere in the world that are a breast
     or prostate clinical device or method and (ii) one percent (1%) of the
     Gross Revenues of Artann and its Affiliates from the Manufacture and Sale
     of Patented Products anywhere in the world that are a breast or prostate
     clinical device or method;

          (c) Commencing on the issuance of the Pending Method/Device Patent:
     (i) five percent (5%) of the Gross Revenues of Artann and its Affiliates
     from Licensing of Patented Products anywhere in the world that are a breast
     or prostate non-clinical (i.e. home or other non-clinical use) device or
     method and (ii) one-half percent (1/2%) of the Gross Revenues of Artann and
     its Affiliates from the Manufacture and Sale of Patented Products anywhere
     in the world that are a breast or prostate non-clinical (i.e. home or other
     non-clinical use) device or method.

          (d) Commencing on the issuance of the CIP Application: (i) five
     percent (5%) of the Gross Revenues of Artann and its Affiliates from
     Licensing of Patented Products anywhere in the world that are based on the
     CIP Application and (ii) one-half percent (1/2%) of the Gross Revenues of
     Artann and its Affiliates from the Manufacture and Sale of Patented
     Products anywhere in the world that are based on the CIP Application; and

          (e) The parties acknowledge and agree that no amounts shall be payable
     under Sections 4.3(b) or 4.3(c) above unless the Pending Method/Device
     Patent is issued.

     4.4 Payments In U.S. Dollars. All amounts payable under this Article 4
shall be paid in United States dollars to DTR by check mailed to the address
first set forth above, or to such other

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address as DTR may from time to time designate in writing to Artann. All
payments due under this Section 4 shall be calculated after Artann's Gross
Revenues are converted into United States dollars (in the event of payment in
non-United States dollars) by Artann. Any currency conversions that are
necessary to calculate payments shall be made at the exchange rate used by
Artann for financial accounting purposes in accordance with generally accepted
accounting principles.

     4.5 Quarterly Payments to DTR. Within sixty (60) days after the close of
each calendar quarter, Artann shall pay DTR all amounts due under this Section 4
for Licensing of Patented Products or the Manufacture and Sale of Patented
Products (as the case may be) during the three months included in such calendar
quarter.

     4.6 Quarterly Reports. With each payment under Section 4.5 above, Artann
shall provide DTR a quarterly written report of all sales, licenses or other
distributions of Patented Products by country and by Artann and its licensees in
such detail so as to enable DTR to calculate the proper amount of the accrued
payments due to DTR for that quarter.

     4.7 Interest. Artann shall pay interest, at three percent (3%) above the
then prevailing prime rate as announced from time to time by Norwest Bank
Minnesota or its successor, on any payments due under this ARTICLE 4 and not
paid within the time period described in Section 4.5 above, to accrue from the
date due until paid.

     4.8 Records. Artann agrees to keep accurate and detailed records required
for the computation and verification of payments to be paid hereunder, all in
accordance with generally accepted accounting principles. Artann shall permit
one or more representatives selected by DTR upon reasonable notice at mutually
agreeable reasonable times during normal business hours to inspect all such
records as may be necessary or desirable to determine the correctness of any
report or payment made under this Agreement or to obtain information concerning
payments to DTR for any period in the event of failure of Artann to report or
pay any payments due under the terms of this Agreement. The records required by
this Section 4.8 shall be maintained and available for inspection hereunder for
at least three (3) years following the calendar quarter to which they pertain.

                          ARTICLE 5: SECURITY INTEREST

     Artann hereby grants DTR a security interest (the "Security Interest") in
the MBI Technology, including without limitation, the MBI Patents, as security
for payment and performance of Artann's obligations under this Agreement,
including without limitation, payment of the $120,000 Payment and the Additional
Percentage Payments. The parties agree to execute, deliver and file UCC
financing statements and other documents necessary to perfect and maintain the
Security Interest as a first priority Security Interest.

                    ARTICLE 6: INDEMNIFICATION AND INSURANCE

     6.1 Indemnification by Artann. Artann shall indemnify and hold harmless DTR
and MBI, and their respective directors, officers, partners, employees and
representatives, jointly and severally, from and against all liabilities,
demands, damages, expenses, or losses, including, without limitation, costs and
attorneys' fees, arising from:

     (a)  the manufacture, use, lease, sale, or other disposition of any
          Patented Products by Artann or its licensees;

     (b)  a third party's use of a Patented Product purchased, leased or
          otherwise acquired from or through Artann or its licensees;

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     (c)  a third party's manufacture of a Patented Product at the request of
          Artann or its licensees;

     (d)  any claim that the MBI Technology or the MBI Patents infringe any
          patent, copyright, trade secret right, trademark right or other
          proprietary right of a third party;

     (e)  from any claim that a Patented Product manufactured or sold by Artann
          or its licensees infringes any trademark rights of a third party; and

     (f)  from any failure of Artann to comply with all applicable government
          regulations, directives and laws as they may apply to the Patented
          Products or Artann's activities hereunder.

     6.2 Insurance. Commencing with the first commercial sales of Patented
Products, Artann agrees to maintain at its expense liability insurance to insure
against any of the indemnified liabilities in Section 6.1 above in an amount as
determined by Artann at its reasonable discretion. Artann shall provide DTR with
certification of such insurance.

                    ARTICLE 7: REPRESENTATIONS AND WARRANTIES

     7.1 Authority of Artann. Artann represents and warrants that (i) the
transactions and activities contemplated by this Agreement have been duly
authorized and no other actions on its part or on the part of any other person
or entity are necessary to authorize the transactions and activities
contemplated by this Agreement and (ii) this Agreement is a legal, valid and
binding agreement enforceable against Artann in accordance with its terms,
except as the enforceability of this Agreement may be limited by equitable
principles, bankruptcy or other laws relating to or affecting creditors' rights
generally.

     7.2 Prior Assignments of Proprietary Rights. Sarvazyan represents and
warrants that prior to the execution of this Agreement, all inventors of the MBI
Technology had assigned to MBI all patent, copyright, trade secret and other
proprietary rights to the MBI Technology

                       ARTICLE 8: LIMITATION OF LIABILITY

     EXCEPT FOR THE INDEMNIFICATION OBLIGATIONS OF ARTANN UNDER SECTION 6.1
ABOVE, NO PARTY BE LIABLE TO THE OTHER UNDER THIS AGREEMENT FOR INDIRECT,
SPECIAL, OR CONSEQUENTIAL DAMAGES, INCLUDING WITHOUT LIMITATION, LOST PROFITS.

                       ARTICLE 9: DEFAULT AND TERMINATION

     9.1 Termination. This Agreement may be terminated only as follows (each of
the notices in Sections 9(a), (b) or (c) below are referred to as an "Event of
Default"):

          (a) Nonpayment or Other Breach by Artann. If Artann fails to make any
     payments to DTR within ten (10) days after the date due or fails to comply
     with any other term or condition under this Agreement, DTR may elect to
     give Artann written notice requiring Artann to cure such default. If Artann
     has not cured such default within thirty (30) days after receipt of notice
     from DTR, in addition to DTR's other remedies, this Agreement shall
     terminate at the end of such thirty (30) day period (unless a dispute
     resolution proceeding is then pending under Article 10 below).

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          (b) Failure to Pay $120,000 Payment After Five Years. If the entire
     amount of the $120,000 Payment has not been paid to DTR by the fifth
     anniversary of the date of this Agreement, DTR may so notify Artann. If
     Artann has not paid the entire $120,000 Payment within thirty (30) days
     after receipt of such notice from DTR, this Agreement shall terminate at
     the end of such thirty (30) day period (unless a dispute resolution
     proceeding is then pending under Article 10 below).

          (c) Mutual Agreement. This Agreement may be terminated at any time by
     mutual written agreement among the parties.

     9.2 Survival. The terms and provisions of Articles 1, and 3 through 11
(inclusive) of this Agreement shall survive the termination of this Agreement
and continued in full force and effect.

                         ARTICLE 10: DISPUTE RESOLUTION

     10.1 Conflicts. It is expected that any disputes or differences that may
arise under this Agreement will be resolved in the usual course of business. If,
however, any dispute does arise among the parties which relates to or arises
from this Agreement, whatever its nature, the parties agree to forego litigation
and proceed as follows: Any party may notify the other parties of the matter in
dispute and that it wishes to begin the dispute resolution procedure. Within
thirty (30) days after notification, a designated representative of each party
will meet and confer in an effort to resolve the problem. The parties may, if
they wish, agree to mediation or other voluntary form of dispute resolution. If
the matter is not resolved within thirty (30) days thereafter (or such further
time as they may agree), any party may elect to have the dispute arbitrated in
the manner provided in Section 10.2.

     10.2 Arbitration. Any dispute or claim not resolved in the manner provided
under Section 10.1 above shall be resolved by final and binding arbitration.
Unless the parties agree otherwise, the arbitration shall be conducted in
accordance with the rules of the American Arbitration Association then in
effect. There shall be a single arbitrator, whose award shall become final ten
(10) days after it is delivered in writing to the parties for their final
comment. The arbitration shall be governed by the United States Arbitration Act,
9 U.S.C. ss.1 et seq. Judgment upon the arbitrator's award may be entered by any
court having jurisdiction thereof. The arbitration shall be conducted in
Minneapolis, Minnesota, if initiated by Artann or Sarvazyan, or in New York, New
York if initiated by DTR or MBI, and any awards shall be subject to the
limitations of liability expressed in this Agreement.

     10.3 Remedies. In addition to the remedies under this Agreement and
applicable law, the prevailing party in any action under this Agreement shall be
entitled to injunctive relief and reimbursement of costs and reasonable
attorneys' fees.

                               ARTICLE 11: GENERAL

     11.1 Notices. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing and delivered personally or sent by
registered or certified mail, postage prepaid and return receipt requested (or
sent via fax and confirmed by mail), to the attention of the parties and the
respective addresses set forth in the first paragraph of this Agreement (or to
such other address as the parties shall designate by notice to the other in
accordance with this Section 11. 1) and shall be deemed to have been given as of
the date of personal delivery, as of the date on the receipt or as of the date
returned unclaimed by the Postal Service.

     11.2 Modifications. This Agreement can only be modified by written
agreement duly signed by the parties.

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     11.3 Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Minnesota.

     11.4 Severability. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under present or future law, such provision
shall be fully severable; this Agreement shall be construed and enforced as if
such illegal, invalid or unenforceable provision had never comprised a part
hereof; and the remaining provisions of this Agreement shall remain in full
force and effect and shall not be affected by the illegal, invalid or
unenforceable provision or by its severance from this Agreement. Furthermore, in
lieu of each such illegal, invalid or unenforceable provision, there shall be
added automatically as a part of this Agreement a provision as similar in terms
to such illegal, invalid or unenforceable provision as may be possible and be
legal, valid and enforceable.

     11.5 Complete Agreement. This Agreement contains the complete agreement
between the parties concerning the subject matter hereof and supersedes all
prior understandings, proposals or agreements, and all prior communications
between the parties relating to the subject matter of this Agreement. This
Agreement shall be binding upon the parties hereto and their respective heirs,
personal representatives, successors and assigns.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement
effective as of the day and year first above written.

MEDICAL BIOPHYSICS INTERNATIONAL           DEVELOPED TECHNOLOGY
                                           RESOURCE, INC.

By:                                        By:
    ------------------------------------     -----------------------------------
     Armen P. Sarvazyan,                      John P. Hupp
     Partner                                  President

By:  Developed Technology Resource, Inc,
     Partner

By:
     -----------------------------------
     John P. Hupp,
     President

ARTANN CORPORATION                         ------------------------------------
dba ARTANN LABORATORIES                    Armen P. Sarvazyan

By:
   -------------------------------------
   Armen P. Sarvazyan,
   President

                                       11
<PAGE>

                                 AMENDMENT NO. 1
                                       TO
             AGREEMENT FOR TRANSFER OF PATENT AND PROPRIETARY RIGHTS

     This Amendment No. 1 to Agreement for Assignment of Patent and Proprietary
Rights ("Amendment No. 1") is entered into effective as of the August 29, 1996,
by and among Medical Biophysics International, a Minnesota partnership ("MBI"),
with principal offices at 12800 Whitewater Drive, Minnetonka, Minnesota 55343;
Developed Technology Resource, Inc., a Minnesota corporation ("DTR"), with
principal offices at 12800 Whitewater Drive, Suite 170, Minnetonka, Minnesota
55343; Armen P. Sarvazyan, whose business address is 138 Hardenburg Lane, East
Brunswick, New Jersey 08816 ("Sarvazyan"); and Artann Corporation dba Artann
Laboratories, a New Jersey corporation ("Artann"), with principal offices at 138
Hardenburg Lane, East Brunswick, New Jersey 08816.

                                    RECITALS

A.   MBI, DTR, Sarvazyan and Artann entered into an Agreement for Assignment of
     Patent and Proprietary Rights as of September 5, 1995 (the "Agreement"),
     which has not been amended prior to the date hereof;

B.   Sarvazyan and Artann have informed DTR that Sarvazyan and Artann have
     continued to comply with all of the terms and provisions of the Agreement;

C.   Effective August 29, 1996, Artann has entered into an Operating Agreement
     ("Operating Agreement") of Armed, L.L.C., an Alabama limited liability
     company ("Armed"), among Vladimir Drits, K. Breslauer, M. Brady, Naum
     Tselesin, Graco Resources, Inc., Brad Dunn, Jim Davis, Miller Investments,
     Ltd. and Ed Lillenstein (collectively, the "Members"), a copy of which has
     been provided to DTR;

D.   Pursuant to the Operating Agreement, Artann, Sarvazyan, and Armed have
     entered into an Assignment dated August 29, 1996 (the "Artann/Armed
     Assignment"), under which Artann has assigned the MBI Technology to Armed,
     a copy of which has been provided to DTR;

E.   Pursuant to the Operating Agreement and in consideration of the
     Artann/Armed Assignment, Armed has issued to Artann 50.5 Class A Units of
     Armed, representing 50.5% of the outstanding Class A and Class B Units of
     Armed (those units and any other units or member interests of Armed now or
     hereafter beneficially owned by Artann, Sarvazyan or their Affiliates are
     referred to as the "Artann-Owned Units");

F.   Pursuant to the Operating Agreement, the Class B Members of Armed
     identified therein have agreed to make certain loans to Armed, secured by a
     security interest in all of Armen's assets, including the MBI Technology;

G.   Pursuant to the Operating Agreement, the Class B Members of Armed have
     received an option ("Option") to purchase additional Class B Units of
     Armed, which if exercised could result in the percentage of the outstanding
     Class A and B Units of Armed owned by Artann to be reduced;

H.   Pursuant to a License Agreement (the "Armed/Artann License"), Armed will
     grant to Artann a license to use and commercialize the non-mechanical
     imaging portions of the MBI Technology;

                                       12
<PAGE>

I.   The parties desire to amend and supplement the Agreement pursuant to
     Section 11.2 thereof, on the terms as described below.

                                   AGREEMENT

     In consideration of the foregoing Recitals, which are incorporated with and
are made a part of this Amendment No. 1, and in further consideration of the
mutual covenants and agreements contained in this Amendment No. 1, the parties
hereto agree and amend the Agreement as follows:

     1. Definitions. Capitalized terms not otherwise amended or defined herein
have the same respective meanings as set forth in the Agreement.

     2. Amendment of Section 1.1. Section 1.1 of the Agreement is hereby amended
to include the following additional provision:

     Armed shall not be considered an "Affiliate" of Artann for purposes of the
     Agreement or this Amendment No. 1.

     3. Amendment of Section 1.3. Section 1.3 of the Agreement is hereby
superseded and deleted in its entirety and replaced with the following new
Section 1.3:

          1.3 MBI Patents. "MBI Patents" means all method, device and/or
     apparatus patents and patent applications (in any country) that are now or
     hereafter owned or controlled by MBI or its assigns, alone or jointly with
     others, and which relate to the MBI Technology, including, without
     limitation: (i) U.S. Patent No. 5,265,612, dated November 30, 1993,
     entitled "Intercavity Ultrasonic Devices for Elasticity Imaging," and any
     non-U.S. counterparts, and any continuations, continuations-in-part
     ("CIP"), or divisional applications and any U.S. or non-U.S. patents
     resulting from such applications and any reissues thereof, (ii) U.S. Patent
     No. 5,524,636 dated June 11, 1996, entitled "Method and Apparatus for
     Elasticity Imaging," and any non-U.S. counterparts, and any continuations,
     continuations-in-part, or divisional applications and any U.S. or non-U.S.
     patents resulting from such applications and any reissues thereof" and
     (iii) U.S. Patent Application Number 08/607,645 filed February 27, 1996
     entitled "Method and Device for Mechanical Imaging of Prostate" (the
     "Pending Patent"), and any non-U.S. counterparts, and any continuations,
     continuations-in-part, or divisional applications and any U.S. or non-U.S.
     patents resulting from such applications and any reissues thereof.

     4. Amendment of Section 1.5. Section 1.5 of the Agreement is hereby
superseded and deleted in its entirety and replaced with the following new
Section 1.5;

          1.5 Licensing/Assignment of Patented Products. "Licensing/Assignment
     of Patented Products" means the licensing or assignment (or other transfer)
     by Artann, Sarvazyan or Armed and their respective Affiliates and
     sublicensees and assignees (together "Assignees") of any of the MBI Patents
     to enable a third party to manufacture the Patented Products.

     5. Amendment of Section 1.6. Section 1.6 of the Agreement is hereby
superseded and deleted in its entirety and replaced with the following new
Section 1.6:

          1.6 Manufacture and Sale of Patented Products. "Manufacture and Sale
     of Patented Products" means the manufacture and sale by Artann, Sarvazyan
     or Armed and their respective Affiliates and Assignees of Patented
     Products.

                                       13
<PAGE>

     6. Amendment of Section 1.7. Section 1.7 of the Agreement is hereby
superseded and deleted in its entirety and replaced with the following new
Section 1.7:

          1.7 Artann Gross Revenues. "Artann Gross Revenues" means any payment
     of cash or cash equivalents (for conversion into U.S. dollars pursuant to
     Section 4.4) to Artann, Sarvazyan or their respective Affiliates,
     pertaining to the use, license, assignment or commercialization of the MBI
     Technology and arising from:

          A.   the gross royalty, invoice or billing price for
               Licensing/Assignment of Patented Products or the Manufacture and
               Sale of Patented Products (as the case may be) by Artann,
               Sarvazyan and their respective Affiliates or Assignees (excluding
               Armed) anywhere in the world, with no deductions except for: (1)
               the actual cost of freight charges, if any, if stated separately
               from the ordinary net invoice price; (2) trade, quantity and cash
               discounts, if any actually allowed; (3) any taxes or duties
               applicable to such products, provided such taxes or duties are
               actually paid and are shown separately from the net invoice price
               of such products (no deduction shall be made for taxes based on
               net income); and (4) such credits or allowances, if any, given or
               made of the rejection or return of such products; or

          B.   any dividends, distributions or other payments of any kind from
               Armed to Artann, Sarvazyan or their Affiliates;

          provided, however, the term "Artann Gross Revenues" shall not include
          any payments by Armed to Artann, Sarvazyan or their Affiliates for
          consulting work or the development of prototypes so long as such
          payments are for actual services rendered and are not made with the
          intent of diminishing the amounts otherwise payable by Artann or
          Sarvazyan to DTR under the Agreement or Amendment No. 1.

     7. Amendment of Section 4.1. Section 4.1 of the Agreement is hereby amended
by adding the following additional provision at the end of Section 4.1:

     Artann represents that none of the Authors has any further right to payment
     with respect to the MBI Technology. Section 4.1 of the Agreement shall not
     require Armed, or Artann or Sarvazyan based on investments in Armed, to
     make any payments to DTR.

     8. Amendment of Section 4.2. Section 4.2 of the Agreement is hereby
superseded and deleted in its entirety and replaced with the following new
Section 4.2:

          4.2 $120,000 Payment. Artann shall pay DTR, commencing on the date of
     this Agreement: (i) thirty-three and one-third percent (33-1/3%) of the
     Artann Gross Revenues from Licensing/Assignment of Patented Products
     anywhere in the world by Artann, Sarvazyan, Armed or their respective
     Affiliates or Assignees and (ii) three and one-third percent (3-1/3%) of
     the Artann Gross Revenues from the Manufacture and Sale of Patented
     Products anywhere in the world by Artann, Sarvazyan, Armed or their
     respective Affiliates or Assignees, up to a maximum payment of $120,000 to
     DTR unde this Section 4.2 (the "$120,000 Payment"). The parties acknowledge
     that DTR will not receive 50% of the Artann Gross Revenues because Artann
     has agreed to assume all responsibilities for payments to the Authors.

     9. Amendment of Section 4.3. Section 4.3 of the Agreement is hereby
superseded and deleted in its entirety and replaced with the following new
Section 4.3:

                                       14
<PAGE>

          4.3 Additional Percentage Payments to DTR. In addition to the $120,000
     Payment, Artann shall pay each of the following percentage payments to DTR
     until latest expiration date of the MBI Patents and any extensions thereof
     (the "Additional Percentage Payments"):

          (a) Commencing on the date of this Agreement: (i) twenty percent (20%)
          of the Artann Gross Revenues from the Licensing of Patented Products
          anywhere in the world by Artann, Sarvazyan, Armed or their respective
          Affiliates or Assignees that are based on Patent No. 5,265,612 dated
          November 30, 1993, entitled "Intracavity Ultrasonic Device for
          Elasticity Imaging"; and (ii) two percent (2%) of the Artann Gross
          Revenues from the Manufacture and Sale of Patented Products anywhere
          in the world by Artann, Sarvazyan, Armed or their respective
          Affiliates or Assignees that are based on Patent No. 5,265,612 dated
          November 30, 1993, entitled "Intracavity Ultrasonic Device for
          Elasticity Imaging";

          (b) Commencing on the date of this Agreement with respect to the
          issued MBI Patents: (i) ten percent (10%) of the Artann Gross Revenues
          from the Licensing of Patented Products anywhere in the world by
          Artann, Sarvazyan, Armed or their respective Affiliates or Assignees
          that are a breast or prostate clinical device or method based on
          Patent No. 5,524,636 dated June 11, 1996, entitled "Method and
          Apparatus for Elasticity Imaging"; and (ii) one percent (1%) of the
          Artann Gross Revenues from the Manufacture and Sale of Patented
          Products anywhere in the world by Artann, Sarvazyan, Armed or their
          respective Affiliates or Assignees that are a breast or prostate
          clinical device or method based on Patent No. 5,524,636 dated June 11,
          1996, entitled "Method and Apparatus for Elasticity Imaging";

          (c) Commencing on the date of this Agreement with respect to the
          issued MBI Patents: (i) five percent (5%) of the Artann Gross Revenues
          from the Licensing of Patented Products anywhere in the world by
          Artann, Sarvazyan, Armed or their respective Affiliates or Assignees
          that are a breast and not clinical (i.e., home or other non-clinical
          use) device or method based on Patent No. 5,524,636 dated June 11,
          1996, entitled "Method and Apparatus for Elasticity Imaging"; and (ii)
          one-half percent (1/2%) of the Artann Gross Revenues from the
          Manufacture and Sale of Patented Products anywhere in the world by
          Artann, Sarvazyan, Armed or their respective Affiliates or Assignees
          that are a breast, and not clinical (i.e., home or other non-clinical
          use) device or method based on Patent No. 5,524,636 dated June 11,
          1996 entitled "Method and Apparatus for Elasticity Imaging";

          (d) Commencing on the issuance of any CIP application for the MBI
          Patents; (i) five percent (5%) of the Artann Gross Revenues from the
          Licensing of Patented Products anywhere in the world by Artann,
          Sarvazyan, Armed or their respective Affiliates or Assignees that are
          based on such CIP application; and (ii) one-half percent (1/2%) of the
          Artann Gross Revenues from the Manufacture and Sale of Patented
          Products anywhere in the world by Artann, Sarvazyan, Armed or their
          respective Affiliates or Assignees that are based on such CIP
          application.

     10. Amendment of Article 5. Article 5 of the Agreement is hereby superseded
and deleted in its entirety and replaced with the following new Article 5:

                          ARTICLE 5: SECURITY INTEREST

          5.1 Grant of Security Interest in Artann-Owned Units. Artann hereby
     grants DTR a security interest (the "Security Interest") in the
     Artann-Owned Units (collectively, the "Collateral"), as security for
     payment and performance of Artann's obligations under

                                       15
<PAGE>

     this Agreement and Amendment No. 1, including without limitation, payment
     of the $120,000 Payment and the Additional Percentage Payments
     (collectively, the "Obligations"). Artann and Sarvazyan will promptly
     deliver and continue to deliver to DTR all certificates representing all of
     the Artann-Owned Units, and will execute, deliver and file UCC financing
     statements and other documents, all as necessary to perfect and maintain
     the Security Interest as a first priority security interest in the
     Collateral. Artann and Sarvazyan represent and warrant that Artann holds
     all right, title and interest in the Artann-Owned Units and none of the
     Artann-Owned Units are or will be subject to any lien or security interest
     other than the Security Interest in favor of DTR. If Artann or Sarvazyan
     are in default of their obligations, DTR may elect to foreclose on its
     Security Interest and take ownership and possession of the Artann-Owned
     Units or, if such units are subject to a call or assessment obligation, in
     lieu of foreclosure DTR may elect to instruct Armed to pay all
     distributions with respect to the Artann-Owned Units to DTR and Armed will
     comply with that instruction (in lieu of distributions paid to Artann,
     Sarvazyan or their Affiliates).

          5.2 Notice. Artann and Sarvazyan will promptly notify DTR of any (i)
     dilution in the ownership of Armed by Artann, Sarvazyan or their Affiliates
     or (ii) any additional Artann-Owned Units beneficially owned by Artann,
     Sarvazyan or their Affiliates. DTR will promptly notify Artann and
     Sarvazyan of any assignment of DTR's rights hereunder to any third party.

          5.3 Consent to Transfer of Artann-Owned Units to DTR. Within 60 days
     after the execution of this Amendment No. 1, Artann and Sarvazyan will
     deliver to DTR a consent signed by Armed and each of its Members,
     consenting to the transfer of the Artann-Owned Units to DTR if DTR
     forecloses on its Security Interest and obtains beneficial ownership of the
     Artann-Owned Units.

          5.4 Release of Prior Security Interest. Concurrently with the creation
     of the Security Interest under this Amendment No. 1, and with the
     Collateral as substitute collateral, DTR hereby releases any security
     interest in the MBI Patents and MBI Technology and will deliver promptly to
     Armed UCC-3 Statements of Termination and other documents prepared by Armed
     in recordable form for terminating of record any other agreements or
     documents evidencing or perfecting the above security interest in the MBI
     Patents and MBI Technology (whether recorded in the Office of the Secretary
     of State of Minnesota or New Jersey, the U.S. Patent and Trademark Office
     or in any other governmental office).

     11. Amendment of Article 9. Article 9 of the Agreement is hereby superseded
and deleted in its entirety and replaced with the following new Article 9:

                       ARTICLE 9: DEFAULT AND TERMINATION

          9.1 Termination. This Agreement may be terminated only as follows
     (each of the notices in Sections 9(a), (b) or (c) below are referred to as
     an "Event of Default"):

               (a) Nonpayment or Other Breach by Artann. If Artann or Sarvazyan
          fails to make any payments to DTR within ten (10) days after the date
          due or fails to comply with any other term or condition under this
          Agreement, DTR may elect to give Artann and Sarvazyan written notice
          requiring Artann and Sarvazyan to cure such default. If Artann and
          Sarvazyan have not cured such default within thirty (30) days after
          receipt of notice from DTR, in addition to DTR's other remedies, this
          Agreement shall terminate at the end of such thirty (30) day period
          (unless a dispute resolution proceeding is then pending under Article
          10 below) and DTR shall have

                                       16
<PAGE>

          the rights and remedies described in Section 9.3 below, in addition to
          its other remedies at law or in equity.

               (b) Failure to Pay $120,000 Payment After Seven Years. If the
          entire amount of the $120,000 Payment has not been paid to DTR by the
          seventh anniversary of the date of this Amendment No. 1, DTR may so
          notify Artann and Sarvazyan. If Artann and Sarvazyan have not paid the
          entire $120,000 Payment within thirty (30) days after receipt of such
          notice from DTR, this Agreement shall terminate at the end of such
          thirty (30) day period (unless a dispute resolution proceeding is then
          pending under Article 10 below), and DTR shall have the rights and
          remedies described in Section 9.3 below, in addition to its other
          remedies at law or in equity.

               (c) Mutual Agreement. This Agreement may be terminated at any
          time by mutual written agreement amount the parties.

          9.2 Survival. The terms and provisions of Article 1, and 3 through 11
     (inclusive) of this Agreement shall survive the termination of this
     Agreement and continued in full force and effect. No termination of this
     Agreement shall terminate Articles 2 or 11 of this Agreement.

          9.3 Rights and Remedies of DTR. If Artann or Sarvazyan breaches any of
     the terms or provisions of this Agreement, without timely cure as provided
     herein, or if DTR terminates this Agreement under Section 9.1 above (an
     "Event of Default"), DTR shall have the right to foreclose its Security
     Interest and receive all right, title and interest in and to the Collateral
     as a secured party under the Minnesota Uniform Commercial Code or any other
     applicable law. If any notification of intended disposition of any of the
     Collateral is required by law, such notification shall be deemed reasonably
     and properly given at least ten (10) days before such disposition in the
     manner described in Section 10.1 of the Agreement. Artann agrees, if an
     Event of Default occurs, to make the Collateral available to DTR at a place
     or places acceptable to DTR, and to pay all costs of DTR, including
     reasonable attorneys' fees, incurred in the removal of and transfer of
     rights to the Collateral and the enforcement of any of DTR's rights.

     12. Consent and Representation of DTR. DTR hereby consents to the
Artann/Armed Assignment. DTR represents and warrants to Armed that DTR (a) has
not granted any security interest or lien in the MBA Technology to any third
party and (b) no officer of DTR has actual knowledge, without inquiry, of any
claim or right of any third party in or to the MBI Technology, except as
disclosed in the Agreement or this Amendment No. 1. Except as provided in the
preceding sentence, DTR makes no representation or warranty to Armed, its
Members or their Affiliates regarding the MBI Patents or other MBI Technology.

     13. Additional Agreements of Artann and Sarvazyan. So long as any amounts
are payable to DTR under this Agreement (whether or not accrued): (i) Artann and
Sarvazyan shall provide DTR on a quarterly basis financial information
concerning Artann and the basis for any payments under this Agreement and (ii)
DTR and its representatives shall have the right to audit and inspect the books
and records of Artann and Sarvazyan and ensure compliance with this Agreement.
Artann will provide DTR a copy of the License Agreement promptly after it is
signed.

     14. Effect of Amendment. All of the terms and provisions of the Agreement
shall remain unchanged and in full force and effect, pursuant to the terms
thereof, except to the extent expressly amended and supplemented by this
Amendment No.. This Amendment No. 1 may be executed by fax and in any number of
counterparts, each of which, when executed and delivered,

                                       17
<PAGE>

shall be deemed to be an original and all of which together shall be deemed to
be one and the same instrument, and shall be deemed effective upon the date
first written above.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. l .

MEDICAL BIOPHYSICS INTERNATIONAL        DEVELOPED TECHNOLOGY
                                        RESOURCE, INC.

By:                                     By:
   ----------------------------------      -------------------------------------
   Armen P. Sarvazyan,                     John P. Hupp,
   Partner                                 President

By: Developed Technology Resource, Inc.
    Partner

    By:
       ------------------------------
       John P. Hupp,
       President

ARTANN CORPORATION                          ------------------------------------
dba ARTANN LABORATORIES                     Armen P. Sarvazyan

By:
   ----------------------------------
   Armen P. Sarvazyan,
   President

                     AGREEMENT AND CONSENT OF ARMED AND DTR

     Armed has read and understands the Agreement, as modified by the above
Amendment No. 1, and in consideration of DTR's execution of Amendment No. 1,
Armed and DTR agree as follows:

     1. Definitions. Capitalized terms used below have the same respective
meanings as set forth in the Agreement, as modified by Amendment No. 1

     2. Notification to DTR. So long as DTR holds its Security Interest in the
Artann-Owned Units, Armed will provide DTR at least ten (10) days advance
written notice of any (i) proposed dividends, distributions, consulting fees or
other payments of any kind from Armed to Artann or Sarvazyan or their Affiliates
or (ii) proposed issuance, purchase or transfer of any existing or prospective
Artann-Owned Units.

     3. Additional Agreements of Armed. So long as DTR holds its Security
Interest in the Artann-Owned Units: (i) Armed will deliver to DTR any
certificates representing the Artann-Owned Units, (ii) Armed will not take any
actions which would prevent DTR from foreclosing upon its Security Interest and
receiving ownership of Artann-Owned Units, (iii) Armed will not structure any
distributions, fees or other payments to Artann, Sarvazyan or their Affiliates
in any manner intended to diminish the amount otherwise payable by Artann,
Sarvazyan to DTR under the Agreement or Amendment No. 1, (iv) Armed will
promptly notify DTR of any call or assessment applicable to the Artann-Owned
Units and (v) in the event of foreclosure of the Security Interest,

                                       18
<PAGE>

Armed consents to and will assist DTR with receipt of the ownership of the
Artann-Owned Units. If Artann or Sarvazyan are in default of their obligations,
DTR may elect to foreclose on its Security Interest and take ownership and
possession of the Artann-Owned Units or, if such units are subject to a call or
assessment obligation, in lieu of foreclosure DTR may elect to instruct Armed to
pay all distributions with respect to the Artann-Owned Units to DTR and Armed
will comply with that instruction (in lieu of distributions paid to Artann,
Sarvazyan or their Affiliates).

     4. Consent to Transfer of Artann-Owned Units to DTR. Within 30 days after
the execution of this Amendment No. 1, Armed will deliver to DTR a consent
signed by Armed and each of its Members, consenting to the transfer of the
Artann-Owned Units to DTR if DTR forecloses on its Security Interest and obtains
beneficial ownership of the Artann-Owned Units.

     5. Payments to DTR. Nothing in the Agreement of Amendment No. 1 shall
require Armed to make payments directly by Armed to DTR, unless DTR forecloses
upon its Security Interest and receives ownership of the Artann-Owned Units.

     6. Release and Assignment. Concurrently with the creation of the Security
Interest under Amendment No. 1, and with the Collateral as substitute
collateral, DTR hereby releases any security interest in the MBI Patents and MBI
Technology and will deliver promptly to Armed UCC-3 Statements of Termination
and other documents prepared by Armed in recordable form for terminating of
record any other agreements or documents evidencing or perfecting the above
security interest in the MBI Patents and MBI Technology (whether recorded in the
Office of the Secretary of State of Minnesota or New Jersey, the U.S. Patent and
Trademark Office or in any other governmental office). DTR hereby consents to
the Artann/Armed Assignment. DTR represents and warrants to Armed that DTR (a)
has not granted any security interest or lien in the MBI Technology to any third
party and (b) no officer of DTR has actual knowledge, without inquiry, of any
claim or right of any third party in or to the MBI Technology, except as
disclosed in the Agreement or Amendment No. 1. Except as provided in the
preceding sentence, DTR makes no representation of warranty to Armed, its
Members or their Affiliates regarding the MBI Patents or other MBI Technology.

     IN WITNESS WHEREOF, Armed and DTR have executed the foregoing Agreement and
Consent, which may be signed via fax and in counterpart.

ARMED, L.L.C.                             DEVELOPED TECHNOLOGY
                                          RESOURCE, INC.

By:                                       By:
   ----------------------------------        -----------------------------------
                                             John P. Hupp,
Title:                                       President
      -------------------------------

Date:                                     Date:
      -------------------------------          --------------------------------

                                       19
<PAGE>

                                    EXHIBIT B

                               Security Agreement

                                       20
<PAGE>

                               SECURITY AGREEMENT

SECURITY AGREEMENT made June 15, 1997, effective as of August 29, 1996 between
ARMEN P. SARVAZYAN, a resident of the State of New Jersey ("Sarvazyan"), ARTANN
CORPORATION, a New Jersey corporation ("Artann") and DEVELOPED TECHNOLOGY
RESOURCE, INC., a Minnesota corporation ("DTR").

IN CONSIDERATION OF the mutual covenants and agreements set forth below and in
the Agreement and Amendment No. 1 defined below, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Sarvazyan and Artann hereby grant DTR a security interest in any and all units
or membership interests of ArMed, LLC, an Alabama limited liability company, now
or hereafter owned by Sarvazyan or Artann, and the distributions and proceeds
thereof, as security for payment and performance of the obligations of Sarvazyan
and Artann under that certain Agreement for Transfer of Patent and Proprietary
Rights effective as of September 5, 1995 among Medical Biophysics International,
a Minnesota partnership, DTR, Sarvazyan and Artann (the "Agreement"), as amended
by Amendment No. 1 effective as of August 29, 1996 ("Amendment No. 1"),
including, without limitation, payment of the $120,000 Payment and Additional
Percentage Payments, as defined in the Agreement and Amendment No. 1.

IN WITNESS WHEREOF, the undersigned have executed this Security Agreement on the
date and year set forth above effective as of August 29, 1996.

                                     ARTANN CORPORATION

                                     By:
                                        ----------------------------------------
                                        Armen P. Sarvazyan, President

                                     -------------------------------------------
                                     ARMEN P. SARVAZYAN

                                     DEVELOPED TECHNOLOGY
                                     RESOURCE, INC.

                                     By:
                                        ----------------------------------------

                                     Its:
                                         ---------------------------------------

                                       21Exhibit 10.2

                            STOCK EXCHANGE AGREEMENT

                                     between

                              DTR-MED PHARMA CORP.,

                      DEVELOPED TECHNOLOGY RESOURCE, INC.,

                            PRO-PHARMACEUTICALS, INC.

                                       and

                  THE SHAREHOLDERS OF PRO-PHARMACEUTICALS, INC.

                                 April 25, 2001

<PAGE>
                                      INDEX

<TABLE>

<S>                                                                                                              <C>
I.       TRANSFER OF THE STOCK....................................................................................2

II.      CONSIDERATION............................................................................................2

III.     REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS.......................................................2
         3.1      Organization and Power..........................................................................2
         3.2      Qualification...................................................................................2
         3.3      Authorization...................................................................................3
         3.4      Validity of Stock...............................................................................3
         3.5      Ownership and Authority to Deliver..............................................................3
         3.6      Capital Stock...................................................................................3
         3.7      Enforceability..................................................................................3
         3.8      Conflict with Other Agreements, etc.............................................................3
         3.9      Financial Statements............................................................................3
         3.10     Interim Change..................................................................................4
         3.11     Material Contracts..............................................................................4
         3.12     Title to Assets.................................................................................5
         3.13     Intellectual Property...........................................................................5
         3.14     Real Property...................................................................................5
         3.15     Personal Property Leases........................................................................5
         3.16     Employees.......................................................................................6
         3.17     Related Party Interests.........................................................................6
         3.18     Litigation......................................................................................6
         3.19     Compliance with Law.............................................................................6
         3.20     ERISA...........................................................................................7
         3.21     Governmental Consent, etc.......................................................................7
         3.22     Brokers.........................................................................................7
         3.23     Shareholders' Investment Representations........................................................7

IV.      REPRESENTATIONS AND WARRANTIES OF RESOURCE...............................................................8
         4.1      Organization and Power..........................................................................8
         4.2      Authorization...................................................................................8
         4.3      Capital Stock...................................................................................8
         4.4      Validity of Shares..............................................................................8
         4.5      Enforceability..................................................................................8
         4.6      Conflict with Other Agreements etc..............................................................9
         4.7      Brokers.........................................................................................9
         4.8      The Company's Investment Representations........................................................9
         4.9      Contracts Breaches or Defaults..................................................................9
         4.10     Governmental Consent, etc.......................................................................9
         4.11     Assets and Liabilities..........................................................................9
         4.12     Taxes...........................................................................................9
         4.13     Intellectual Property...........................................................................9
</TABLE>

                                       i
<PAGE>

<TABLE>

<S>                                                                                                             <C>
         4.14     Real Property..................................................................................10
         4.15     Personal Property Leases.......................................................................10
         4.16     Bank Accounts..................................................................................10
         4.17     Employees......................................................................................10
         4.18     Litigation.....................................................................................10
         4.19     Compliance with Law............................................................................10

V.       OTHER AGREEMENTS OF PRO-PHARMA AND THE SHAREHOLDERS.....................................................10
         5.1      Interim Conduct of Business....................................................................10
         5.2      Election of Director...........................................................................11
         5.3      Merger of Pro-Pharma into Company..............................................................11
         5.4      Filing with the Securities and Exchange Commission.............................................11

VI.      OTHER AGREEMENTS OF THE COMPANY AND RESOURCE............................................................11
         6.1      Interim Conduct of Business....................................................................11
         6.2      Records and Documents..........................................................................12
         6.3      Transfer of Assets.............................................................................12
         6.4      Dividend.......................................................................................12
         6.5      Merger of Pro-Pharma into Company..............................................................12
         6.6      Filing with the Securities and Exchange Commission.............................................12
         6.7      Pro-Pharma Convertible Notes...................................................................13

VII.     OTHER AGREEMENTS OF ALL PARTIES.........................................................................13
         7.1      Confidentiality................................................................................13
         7.2      Publicity......................................................................................13
         7.3      Expenses.......................................................................................13

VIII.    CONDITIONS PRECEDENT TO OBLIGATIONS OF PRO-PHARMA AND THE SHAREHOLDERS..................................14
         8.1      Accuracy of Warranties; Performance of Covenants...............................................14
         8.2      No Pending Action..............................................................................14
         8.3      Condition of Business..........................................................................14
         8.4      Opinion of Counsel for Resource and the Company................................................14
         8.5      Election of Directors..........................................................................15
         8.6      Change of Name.................................................................................15

IX.      CONDITIONS PRECEDENT TO OBLIGATIONS OF RESOURCE AND THE COMPANY  .......................................15
         9.1      Accuracy of Warranties, Performance of Covenants...............................................15
         9.2      No Pending Action..............................................................................16
         9.3      Condition of Business..........................................................................16
         9.4      Opinion of Counsel for Pro-Pharma and the Shareholders.........................................16

</TABLE>

                                       ii

<PAGE>

<TABLE>

<S>                                                                                                             <C>
X.       CLOSING AND DELIVERY OF STOCK...........................................................................17
         10.1     Closing........................................................................................17
         10.2     Deliveries by the Resource or Company..........................................................17
         10.3     Deliveries by Pro-Pharma or the Shareholders...................................................18

XI.      SURVIVAL, INDEMNIFICATION, INJUNCTIVE RELIEF, etc.......................................................19
         11.1     Survival.......................................................................................19
         11.2     Indemnification by the Shareholders............................................................19
         11.3     Indemnification by Resource and the Company....................................................19
         11.4     Indemnification - General......................................................................19
         11.5     Injunctive Relief, etc.........................................................................20

XII.     VENUE AND JURISDICTION..................................................................................20

XIII.    GENERAL PROVISIONS......................................................................................20
         13.1     Amendment and Waiver...........................................................................20
         13.2     Return of Documents............................................................................21
         13.3     Notices........................................................................................21
         13.4     Parties in Interest............................................................................21
         13.5     Entire Transaction.............................................................................22
         13.6     Applicable Law.................................................................................22
         13.7     Severability...................................................................................22
         13.8     Cooperation....................................................................................22
         13.9     Headings.......................................................................................22
         13.10    Counterparts...................................................................................22

</TABLE>

                                      iii
<PAGE>

Exhibits

A.   Copies of the Articles of Organization and ByLaws and amendments thereto of
     Pro-Pharma.

B.   Copies of the Articles of Incorporation and ByLaws and amendments thereto
     of the Company.

Schedules

3.6         Rights to Acquire Capital Stock of the Company
3.10        Interim changes of Pro-Pharma from December 31, 2000
3.11        Material Contracts
3.13        Patents and Trademarks of Pro-Pharma
3.12        Title to Assets
3.14        Real Property Leases
3.15        Personal Property
3.17        Related Party Interests
3.18        Litigation
3.19        Compliance with Law
3.20        Benefit Plans
3.21        Governmental Consent, Etc.
3.22        Brokers
4.9         Contracts
4.10        Governmental Consent, Etc.
4.11        No Assets or Liabilities
4.12        Taxes
6.3         Contracts

                                       iv
<PAGE>

                            STOCK EXCHANGE AGREEMENT

     This Agreement is entered into this 25th day of April, 2001, by and among
Developed Technology Resource, Inc., a Minnesota corporation ("Resource"),
DTR-Med Pharma Corp., a Nevada corporation (the "Company"), Pro-Pharmaceuticals,
Inc., a Massachusetts corporation ("Pro-Pharma"), and shareholders of Pro-Pharma
(the "Shareholders") who are individually identified in Article III and on the
signature page of this Stock Exchange Agreement (the "Agreement").

                                    Premises

     A. The common stock of Resource is registered under Section 12(g) of the
Securities Exchange Act of 1934.

     B. The Company is a newly-organized wholly owned subsidiary of Resource.

     C. Following the execution of this Agreement, Resource (i) is willing to
transfer to the Company its interest in a contract or contracts which may
provide the Company with revenue from the sale, development or licensing of a
technology described in Schedule 6.3 of this Agreement, and (ii) plans to
distribute, as a dividend, the shares of the Company to the shareholders of
Resource on a share for share basis.

     D. The Shareholders are all of the shareholders of Pro-Pharma, and are
desirous of exchanging their shares of capital stock of Pro-Pharma for the
authorized but unissued shares of common stock of the Company, whereby
Pro-Pharma will become the wholly owned subsidiary of the Company, and the
Shareholders will own in excess of 90% of the outstanding capital stock of the
Company. As soon as practicable after such share exchange, Pro-Pharma will be
merged "upstream" into the Company and the Company will change its name to
"Pro-Pharmaceuticals, Inc."

     E. Pro-Pharma has issued convertible notes (the "Convertible Notes") in
anticipation of the business combination evidenced hereby and the parties
contemplate that the Company will, as a result of the merger, become the obligor
under the Convertible Notes and issue its securities upon exercise of the
conversion rights thereunder.

                                    Agreement

     Now, therefore, in consideration of the premises and mutual covenants
contained in this Agreement, the parties hereto agree as follows:

                                       1
<PAGE>

                                    ARTICLE I

                              TRANSFER OF THE STOCK

     At the Closing (as defined in Article X), the Shareholders shall transfer,
assign and deliver to the Company, free and clear of all liabilities, liens,
security interests and other encumbrances, and the Company shall accept and
receive from the Shareholders, all rights, title and interest, both legal and
equitable, in and to all of the outstanding common stock of Pro-Pharma (the
"Stock") as identified on the signature page of this Agreement.

                                   ARTICLE II

                                  CONSIDERATION

     The aggregate consideration (the "Consideration") to be paid to the
Shareholders at the Closing in exchange for the Stock will be certificates
registered in the name of Shareholders representing 12,354,670 shares of the
authorized but previously unissued common stock of the Company, having a par
value of $0.001 per share (authorized common stock of the Company is hereinafter
referred to as (the "Common Shares"). The Common Shares issued as the
Consideration represent as of the Closing (as defined in Section 10.1) at least
ninety-one percent (91%) of the issued and outstanding Common Shares.

                                   ARTICLE III

               REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

     David Platt, Offer Binder, James Czirr and Anatole Klyosov, the beneficial
or record shareholders of Pro-Pharma (the "Shareholders"), represent and warrant
to Resource, such representations and warranties to survive the Closing and
continue in accordance with the terms of Article XI hereof, as follows:

     3.1 Organization and Power. Pro-Pharma is a corporation duly organized,
validly existing and in good standing under the laws of the Commonwealth of
Massachusetts, and has the corporate power and authority, and all material
requisite licenses, permits and franchises to own, operate or lease its
properties and to carry its business as now being conducted. Attached hereto as
Exhibit A, are true copies of the Articles of Organization and ByLaws of
Pro-Pharma, including all amendments thereto, in effect as of the date hereof.

     3.2 Qualification. Pro-Pharma is duly qualified to do business as a foreign
corporation, and is in good standing in all jurisdictions where, by the nature
of its business or the character and location of its property or personnel,
failure to be so qualified would have a material adverse effect upon its
business as now being conducted.

                                       2
<PAGE>

     3.3 Authorization. The execution, delivery and performance of this
Agreement has been duly and validly authorized and approved by the Board of
Directors of Pro-Pharma and has been duly executed and delivered by an
authorized officer of Pro-Pharma. All corporate and other actions required to be
taken by Pro-Pharma to authorize the execution, delivery and performance by
Pro-Pharma of this Agreement and all transactions contemplated hereby have been,
or on the Closing Date will have been, duly and properly taken.

     3.4 Validity of Stock. The Stock was duly authorized and validly issued by
Pro- Pharma, and is, or will be at the Closing Date, fully paid and
non-assessable.

     3.5 Ownership and Authority to Deliver. Each Shareholder has full record
and beneficial ownership of the Stock owned by that Shareholder as reflected on
the signature page of this Agreement, with full power and authority to deliver
record and beneficial ownership of the Stock to the Company, free of all liens,
encumbrances and restrictions whatsoever, other than those imposed under
applicable state and federal securities laws.

     3.6 Capital Stock. The authorized capital stock of Pro-Pharma consists of
200,000 shares of common stock, without par value, 100,000 shares of which are
outstanding and constitute the Stock. There are no outstanding options, warrants
or other rights to acquire capital stock or any other securities of Pro-Pharma,
except as set forth on Schedule 3.6.

     3.7 Enforceability. This Agreement and the other documents to be delivered
at the Closing have been, or will be, duly executed and delivered by the
Shareholders and Pro-Pharma, and, or will be, the lawful, valid and legally
binding obligations of the Shareholders and Pro- Pharma, respectively,
enforceable in accordance with their respective terms, except as enforcement may
be limited by applicable bankruptcy, reorganization, insolvency, or similar
debtor relief legislation or decisions affecting the rights of creditors
generally and subject to the application of general principles of equity.

     3.8 Conflict with Other Agreements, etc. The execution and delivery of this
Agreement by the Shareholders and Pro-Pharma, and the consummation of the
transactions contemplated hereby are not prohibited by, do not violate or
conflict with any provisions of, and will not result in a material default under
or a material breach of (i) the Articles of Organization or ByLaws of
Pro-Pharma, (ii) any material contract, agreement or other instrument to which
Pro-Pharma is a party, (iii) to the Shareholders' knowledge, any material order,
writ, decree or judgment of any court or governmental agency, or (iv) to the
Shareholders' knowledge, any material law or regulation applicable to them or
Pro-Pharma.

     3.9 Financial Statements. The Shareholders have delivered to Resource the
following financial statements (the "Financial Statements"):

          (a) The audited balance sheet of Pro-Pharma as of December 31, 2000;
     and

          (b) The audited statement of operations of Pro-Pharma for the period
     since inception on July 10, 2000 and ended December 31, 2000.

                                       3
<PAGE>

The Financial Statements present fairly, in all material respects, the financial
position and results of operations of Pro-Pharma as of their respective dates,
and were prepared on an accrual basis using generally accepted accounting
principles applied in a consistent manner, except as noted therein or in the
notes thereto.

     3.10 Interim Change. Except as described in Schedule 3.10 hereto, since
December 31, 2000, there has not been any material adverse change in the
financial condition, assets, liabilities, personnel, properties, results of
operations or business of Pro-Pharma, and Pro-Pharma has, except as otherwise
disclosed in this Agreement, operated its business consistent with prior
practice.

     3.11 Material Contracts. All agreements and instruments (other than those
entered into after the date hereof with the written consent of Resource)
relating to or involving Pro-Pharma or its business, to which Pro-Pharma is a
party or bound, or by which any of its properties are subject or bound, meeting
any of the descriptions set forth below (the "Material Contracts"), are listed
on Schedule 3.11:

          (a) any lease of machinery, equipment or other personal property
     involving payment of aggregate rentals in excess of $5,000 per year in any
     lease year;

          (b) any contract for the purchase of any materials or supplies in
     excess of $5,000, except those incurred in the ordinary course of business;

          (c) any contract for the purchase of equipment or any construction or
     other similar agreement involving any expenditure in excess of $5,000;

          (d) any instrument evidencing or related to indebtedness, obligation
     or liability for borrowed money, or liability for the deferred purchase
     price of property in excess of $5,000 (excluding normal trade payables),
     any letter of credit in excess of $25,000 or any instrument guaranteeing or
     in effect guaranteeing any indebtedness, obligation or liability, or any
     obligation to incur any indebtedness, obligation or liability;

          (e) any oral or written employment or consulting contract;

          (f) any joint venture partnership or other cooperative arrangement;

          (g) any sales agency, brokerage, distribution or similar contract;

          (h) any license or franchising agreements;

          (i) any agreement between Pro-Pharma and any person who is an officer,
     director or shareholder of Pro-Pharma; and

                                       4
<PAGE>

          (j) any other documents meeting the descriptions (assuming no dollar
     limitations) set forth in subsections (a), (b), (c) or (d) of this Section
     3.11, if in the aggregate, in the case of each subsection, they involve a
     liability in excess of $25,000.

With respect to the Material Contracts: (i) each is in full force and effect,
and to the Shareholders' knowledge, is valid, binding and enforceable, except as
enforcement may be limited by applicable bankruptcy, reorganization, insolvency
or similar debtor relief legislation or decisions affecting the rights of
creditors generally and subject to the application of general principles of
equity; (ii) neither Pro-Pharma nor, to the Shareholders' knowledge, any party
thereto is in default in any material respect thereunder; (iii) the transactions
contemplated by this Agreement will not constitute a breach of, or default
under, any provision of any such Material Contract; and (iv) to the
Shareholders' knowledge, all material rights of Pro-Pharma under such Material
Contracts will be enforceable by Pro-Pharma in accordance with their terms and
conditions without the consent or agreement of any other party, except as
otherwise required thereunder and except as enforcement may be limited by
applicable bankruptcy, reorganization, insolvency or similar debtor relief
legislation or decisions affecting the rights of creditors generally and subject
to the application of general principles of equity.

     3.12 Title to Assets. Pro-Pharma was the sole and exclusive legal and
equitable owner of all right and title in, and has good and indefeasible title
to, all of the assets reflected in its Financial Statements as being owned by
Pro-Pharma, as of the date thereof, free and clear of any pledge, lien, claim,
assessment, easement, restriction or other encumbrance of any kind or nature,
direct or indirect, whether accrued, absolute, contingent or otherwise, except
only those encumbrances or restrictions (i) as specifically set forth in
Schedule 3.12, or (ii) which are minor and will not materially restrict the use
or marketability of Pro-Pharma's assets or the value thereof.

     3.13 Intellectual Property. Schedule 3.13 identifies all patents and
trademarks owned by Pro-Pharma, and all patent applications and invention
disclosures filed with the United States Patent and Trademark Office, and any
foreign agency. Except as set forth on Schedule 3.13, Pro-Pharma is the
exclusive owner of such patents, patent applications and invention disclosures,
with the sole right, to the Shareholders' knowledge, to use or practice the art
described therein. Except as set forth on Schedule 3.13, Pro-Pharma is not a
licensee or licensor of any intellectual property, and the business of
Pro-Pharma and the exploitation of its intellectual property rights does not
require that it become a licensee of the intellectual property rights of others.
To the Shareholders' knowledge, Pro-Pharma has not infringed upon the
intellectual property rights of any other person, and the Shareholders do not
have any knowledge of any trademark, trademark rights, trade name, trade name
rights, service mark, copyright or application thereof or similar property which
would infringe upon, or be infringed upon by, any intellectual property rights
of Pro-Pharma.

     3.14 Real Property. Pro-Pharma has no interests in real property, except as
identified in Schedule 3.14.

     3.15 Personal Property Leases. Pro-Pharma is not a party to any personal
property lease, except as identified in Schedule 3.15.

                                       5
<PAGE>

     3.16 Employees. To the Shareholders' knowledge, Pro-Pharma is in
substantial compliance with all federal, state and local employee safety, labor
and other laws and regulations that materially concern or affect its business.
During the past three years Pro-Pharma has not been, and is not now subject to,
any adverse rulings, findings or determinations of unlawful employment practices
(including, without limitation, determinations of the Equal Employment
Opportunity Commission, the National Labor Relations Board, or any other state
or federal court or agency), or violations of other related material statutes,
and Pro-Pharma has not received any notice of any pending or threatened
investigation, proceeding, labor dispute or litigation of any unlawful
employment practice claim or claims (including alleged violations of the
National Labor Relations Act or Title VII of the Equal Employment Opportunity
Act), or violations of other related material state or federal statutes,
executive orders, or administrative determinations or regulations before any
commission, agency, tribunal, or court of law (state or federal).

     3.17 Related Party Interests. Except as disclosed in Schedule 3.17, neither
the Shareholders, nor, any officer, director, agent or employee of Pro-Pharma,
nor any corporation, partnership, joint venture or other business organization
or facility in which any Shareholder has any direct or indirect interest or
investment:

          (a) has any material cause of action or other claim whatsoever
     against, owes any material amount to, or is owed any material amount by,
     Pro-Pharma, except for compensation owed to Pro-Pharma's existing employees
     as part of their regular salary in the ordinary course of business;

          (b) has any interest in or owns any material property or right used in
     the conduct of the business of Pro-Pharma;

          (c) is a party to any material contract, lease, agreement, arrangement
     or commitment with Pro-Pharma; or

          (d) received from or furnished to Pro-Pharma or its business any
     material amount of goods or services other than services performed as an
     employee (with or without consideration) since December 31, 2000.

     3.18 Litigation. Except as set forth in Schedule 3.18, Pro-Pharma is not
engaged in, a party to, or threatened in writing with, any material suit, claim,
action, proceeding, investigation or legal, administrative, arbitration or other
method of settling disputes or disagreements, or governmental investigation
before or by any federal, state, municipal or other governmental department,
commission, board, agency or instrumentality, domestic or foreign, including,
without limitation the Environmental Protection Agency and the Occupational
Safety and Health Commission. To the Shareholders' knowledge, neither Pro-Pharma
nor any of its assets are subject to any material order, writ, injunction, or
decree of any court, domestic or foreign, or any federal agency or
instrumentality.

     3.19 Compliance with Law. Except as disclosed in Schedule 3.19, Pro-Pharma
(i) has obtained and is in substantial compliance with all material licenses,
permits, approvals,

                                       6
<PAGE>

franchises and other authorizations necessary in order to enable it to own its
properties and to engage in its business, and all such licenses, permits,
approvals, franchises and authorizations, where appropriate with respect to
activities heretofore performed, are in full force and effect, and will continue
to be in full force and effect for the benefit of Pro-Pharma following the
Closing Date, (ii) is in substantial compliance in all material respects with
all applicable federal, state and local laws, regulations, codes, orders and
decrees which are material to Pro-Pharma or its business, including federal,
state and local environmental protection and occupational safety and health laws
and regulations; and (iii) has no material liability for damage caused by
Pro-Pharma to any site, location or body of water (surface or subsurface), or,
to the Shareholders' knowledge, for any illness of or personal injury to any
employee or other individual for any reason under any environmental, health or
safety law.

     3.20 ERISA. Except as set forth on Schedule 3.20, Pro-Pharma does not have
any liability (whether absolute or contingent, whether in the nature of
penalties, excise taxes, additional contributions or otherwise) with respect to
any pension, profit sharing or other plan which is subject to the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), to which
Pro-Pharma makes or has ever made a contribution and in which any employee of
Pro-Pharma is or has ever been a participant. With respect to such plans, to the
Shareholders' knowledge Pro-Pharma is in compliance in all material respects
with all applicable provisions of ERISA.

     3.21 Governmental Consent, etc. No permit, consent, approval or
authorization of, or declaration to or filing with, any governmental authority
is required in connection with the execution, delivery and performance by
Pro-Pharma of this Agreement or any other agreements contemplated hereby, or the
consummation by Pro-Pharma of any other transactions contemplated hereby or
thereby, except as may be described under Schedule 3.21.

     3.22 Brokers. Pro-Pharma has not retained any broker or finder, or incurred
any liability or obligation for any brokerage fees, commissions or finders fees
with respect to this Agreement or the transactions contemplated hereby, except
as set forth on Schedule 3.22.

     3.23 Shareholders' Investment Representations. Each Shareholder is
acquiring the Common Shares hereunder for his own account, and has no present
intention of dividing such Shareholder's interest in such securities or
reselling such securities, in violation of the federal securities laws or any
applicable state securities laws. Each Shareholder understands that any
certificate representing the Common Shares will bear a legend stating in effect
that neither the issuance nor the sale of the Common Shares has been registered
under applicable securities laws, and understands that the Common Shares may not
be sold, transferred, assigned, pledged or otherwise disposed of in the absence
of an effective registration statement under applicable securities laws or an
opinion from counsel acceptable to the Company stating that such registration is
not required.

                                       7
<PAGE>

                                   ARTICLE IV

                   REPRESENTATIONS AND WARRANTIES OF RESOURCE

     Resource represents and warrants to Pro-Pharma and the Shareholders, such
representations and warranties to survive the Closing and continue in accordance
with the terms of Article XI hereof, as follows:

     4.1 Organization and Power. Resource and the Company are corporations duly
organized, validly existing and in good standing under the laws of the state of
Minnesota and Nevada, respectively, and have the corporate power and authority
and all material requisite licenses, permits and franchises to own, operate, or
lease their respective properties and to carry on their respective businesses as
now being conducted. Attached hereto as Exhibit B are true copies of the
Articles of Incorporation and ByLaws of the Company, including all amendments
thereto, in effect as of the date hereof.

     4.2 Authorization. The execution, delivery and performance of this
Agreement has been duly and validly authorized and approved by the Board of
Directors of both Resource and the Company and has been duly executed and
delivered by authorized officers of Resource and the Company, respectively. All
corporate and other actions required to be taken by Resource and the Company to
authorize the execution, delivery and performance by Resource and the Company,
respectively, of this Agreement, and all transactions contemplated hereby have
been, or on the Closing Date will have been, duly and properly taken.

     4.3 Capital Stock. The authorized capital stock of the Company consists of
50,000,000 shares of common stock having a par value of $0.001 per share of
which 1,221,890 shares will be issued and outstanding on the Closing Date, and
all of which are or will be on the Closing Date, validly issued, fully paid and
non-assessable; and 5,000,000 shares of undesignated capital stock of which none
are designated or outstanding.

     4.4 Validity of Shares. The Common Shares to be issued in consideration of
the exchange of the Stock of the Shareholders pursuant to Article II will be,
when issued, duly authorized, validly issued, fully paid and non-assessable, and
will be subject to no liens, encumbrances or restrictions other than those
caused by the Shareholders, and other than restrictions imposed by applicable
state and federal securities laws, which restrictions may be noted on the
certificate or certificates representing such Common Shares. No holder of
capital stock or any other security of the Company is entitled to preemptive or
similar rights to purchase any capital stock or securities by the Company by
reason of the issuance of the Common Shares pursuant hereto.

     4.5 Enforceability. This Agreement and the other documents to be delivered
at the Closing have been, or will be, duly executed and delivered by Resource
and the Company, and are, or will be, the lawful, valid and legally binding
obligations of Resource and the Company, enforceable in accordance with their
respective terms, except as enforcement may be limited by applicable bankruptcy,
reorganization, insolvency, or similar debtor relief legislation or decisions

                                       8
<PAGE>

affecting the rights of creditors generally and subject to the application of
general principles of equity.

     4.6 Conflict with Other Agreements etc. The execution and delivery of this
Agreement by Resource or the Company, and the consummation of the transactions
contemplated hereby are not prohibited by, do not violate or conflict with any
provisions of, and will not result in any material default under or any material
breach of (i) the Articles of Incorporation or ByLaws of Resource or the
Company, (ii) any material contract, agreement or other instrument to which
either Resource or the Company is a party, (iii) any material order, writ,
decree or judgment of any court or governmental agency, or (iv) any material law
or regulation applicable to Resource or the Company.

     4.7 Brokers. Neither Resource nor the Company has retained any broker or
finder, or incurred any liability or obligation for any brokerage fees,
commissions or finders fees with respect to this Agreement or the transactions
contemplated hereby.

     4.8 The Company's Investment Representations. The Company is acquiring the
Stock hereunder for its own account with the present intention of holding such
securities for purposes of investment, and has no present intention of dividing
its interest in such securities or reselling such securities in a public
distribution in violation of the federal securities laws or any applicable state
securities laws.

     4.9 Contracts Breaches or Defaults. Except for this Agreement and as set
forth in Schedules 4.9 or 6.3, the Company is not a party to any executory
contract, and is not in default in any material respect under any material
contract or instrument to which it was a party, or any license, permit or other
regulatory authorization issued to it.

     4.10 Governmental Consent, etc. No permit, consent, approval or
authorization of, or declaration to, or filing with, any governmental authority
is required in connection with the execution, delivery and performance by
Resource or the Company of this Agreement or the other agreements contemplated
hereby, or the consummation by Resource or the Company of any other transactions
contemplated hereby or thereby, except as may be set forth in Schedule 4.10.

     4.11 Assets and Liabilities. As of the Closing Date, the Company will have
no assets or liabilities, either contingent or otherwise, other than as set
forth in Schedule 4.11.

     4.12 Taxes. All material tax returns and reports of every nature required
to be filed by or on behalf of the Company or its business, including but not
limited to payroll tax deposits, have been filed or will be filed in due course,
and such returns are true, correct and complete in all material respects. Except
as disclosed in Schedule 4.12 hereto, no extensions of time in which to file any
such returns or reports are in effect and all taxes shown on such returns and
deficiency assessments, penalties and interests have been paid. As of the
Closing Date, no tax liabilities will have accrued to the Company which will
become payable at a later date.

     4.13 Intellectual Property. To the knowledge of Resource, neither the
assets nor the business of the Company has infringed upon, nor does either
infringe upon, the intellectual

                                       9
<PAGE>

property rights of any other person, and Resource does not have any knowledge of
any trademark, trademark rights, trade name, trade name rights, service mark,
copyright or application thereof or similar property which would infringe upon,
or be infringed upon by, any intellectual property rights of the Company.

     4.14 Real Property. The Company has no interests in real property.

     4.15 Personal Property Leases. The Company is not a party to any real or
personal property lease.

     4.16 Bank Accounts. The Company has no account with any bank or other
financial institution.

     4.17 Employees. The Company has no employees, and has never had any
employees.

     4.18 Litigation. The Company is not engaged in, a party to, or threatened
in writing with, any material suit, claim, action, proceeding, investigation or
legal, administrative, arbitration or other method of settling disputes or
disagreements, or governmental investigation before or by any federal, state,
municipal or other governmental department, commission, board, agency or
instrumentality, domestic or foreign, including, without limitation, the
Environmental Protection Agency and the Occupational Safety and Health
Commission. Neither the Company nor its assets are subject to any material
order, writ, injunction, or decree of any court, domestic or foreign, or any
federal agency or instrumentality.

     4.19 Compliance with Law. The Company (i) is in substantial compliance in
all material respects with all applicable federal, state and local laws,
regulations, codes, orders and decrees which are material to the Company or its
business, including federal, state and local environmental protection and
occupational safety and health laws and regulations; and (ii) has no material
liability for damage caused by the Company to any site, location or body of
water (surface or subsurface), or, to Resource's knowledge, for any illness of
or personal injury to any employee or other individual for any reason under any
environmental, health or safety law.

                                    ARTICLE V

               OTHER AGREEMENTS OF PRO-PHARMA AND THE SHAREHOLDERS

     Pro-Pharma and the Shareholders hereby agree to the following:

     5.1 Interim Conduct of Business. From the date hereof until the Closing
Date, except as permitted by this Agreement, Pro-Pharma shall, and the
Shareholders will cause Pro-Pharma to, use its best efforts to preserve, protect
and maintain Pro-Pharma's business and assets, and Pro-Pharma shall operate its
business consistent with prior practice and not other than in the ordinary
course of business.

                                       10
<PAGE>

     5.2 Election of Director. The Shareholders will vote their Common Shares to
elect Peter Hauser, or his designee (the "Candidate") as a member of the Board
of Directors of the Company at any meeting of the shareholders of the Company at
which members of the Board of Directors are proposed for election. The
obligation of the Shareholders under this Section shall terminate with respect
to any meeting of the shareholders of the Company held after December 31, 2003.
The Shareholders shall not be obligated to vote their Common Shares for a
Candidate who does not consent in writing to act in such capacity, who refuses
to provide the Company with information concerning such Candidate as set forth
in Rule 401(a)(d)(e) and (f) of Regulation S-K of the 1934 Act, or whose
election to the Board of directors requires disclosure under Section 401(f) of
such Regulation S-K. Except for the sales of the Common Shares made in a
transaction described in Rule 144(f) under the Securities Act of 1933, the
Shareholders will take all steps reasonable and necessary to ensure that the
obligations of this Section 5.2 are assumed by any transferee of Common Shares
owned by a Shareholder, including causing a legend to be placed on certificates
representing Common Shares owned by the Shareholders, referencing this Section
5.2.

     5.3 Merger of Pro-Pharma into Company. Immediately following the Closing,
the Shareholders shall cause the Company, as the holder of all the issued and
outstanding stock of Pro-Pharma, to effect a short-form "upstream" merger of
Pro-Pharma into the Company in accordance with the Massachusetts Business
Corporation Law and Chapter 92A of the Nevada Revised Statutes. In connection
therewith, the Shareholders will cause the Company to prepare and file such
documents and take such actions as are necessary or advisable to complete such
merger with the Massachusetts and Nevada secretaries of state or other
appropriate authorities.

     5.4 Filing with the Securities and Exchange Commission. As soon as
practicable following the "upstream" merger contemplated in Section 5.3 hereof,
the Shareholders will cause the Company (under its new name,
"Pro-Pharmaceuticals, Inc.") to file, with the United States Securities and
Exchange Commission, a Form 10 or Form 10SB (as applicable) in compliance with
Section 12 of the Securities Exchange Act of 1934 (the "34 Act"), relating to
the registration under the 34 Act of the Common Shares of the Company. The
Shareholders warrant and represent that the Form 10 or Form 10-SB so filed will
contain all material information required to be included in said Form pursuant
to the rules and regulations established under the 34 Act, and that said Form as
filed and subsequently amended, shall not contain any untrue statement of
material fact, or omit to state a material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were
made, not misleading.

                                   ARTICLE VI

                  OTHER AGREEMENTS OF THE COMPANY AND RESOURCE

     Resource and the Company agree to the following:

     6.1 Interim Conduct of Business. From the date hereof until the Closing
Date, except as set forth in Schedule 4.11 or contemplated to consummate the
transactions provided for in this

                                       11
<PAGE>

Agreement, the Company will not conduct any business operations, incur any
liabilities or enter into any agreements.

     6.2 Records and Documents. Upon the request of Pro-Pharma on or after the
Closing Date, Resource will deliver to the officers of the Company, and assist
such officers in obtaining possession of, the books, records, ledgers, files,
documents, correspondence, lists, reports and other printed or written materials
concerning the Company or its properties in the possession of Resource. For one
year following the Closing Date, Resource shall grant to the Company and its
representatives, at the Company's request, access to and the right to make
copies of those records and documents related to the Company, possession of
which is retained by Resource, as may be necessary or useful in connection with
the Company's conduct of its businesses after the Closing Date. If during such
period Resource or the Company shall determine to dispose of such records, it
shall first give Resource or the Company, as the case may be, sixty days' prior
written notice thereof, during which period the other party shall have the right
to take possession of such records.

     6.3 Transfer of Assets. Prior to the Closing Date, Resource will take all
steps as it reasonably deems necessary to transfer to the Company all of
Resource's interest under contracts identified in Schedule 6.3 (the "Contract
Rights"), without warranty or representation as to the value or validity
thereof, or the effectiveness of each transfer; provided, however, that (i)
Resource reasonably believes that the Company is entitled to rely for purposes
of its books and records on a valuation performed by an independent valuation
company of the Contract Rights in contemplation of this Agreement, a complete
and true copy of which Resource shall have delivered to the Company on or before
the date hereof, and (ii) Resource has not received any notice (whether orally
or in writing), nor does it have any grounds to believe (other than as stated in
Schedule 6.3) that the Contract Rights are or could be invalid or that the
transfer of the Contract Rights as contemplated by this Section 6.3 invalidate
or substantially diminish or reduce the Contract Rights.

     6.4 Dividend. Prior to the Closing Date, Resource will declare and pay a
dividend to its shareholders in the form of the Common Shares owned by Resource,
on the basis of one Common Share for each share of the common stock of Resource
outstanding, and following the payment of such dividend, Resource shall no
longer own any Common Shares, either of record or beneficially.

     6.5 Merger of Pro-Pharma into Company. DTR and the Company acknowledge that
it is the intention of the Company as soon as practicable after the Closing,
then as the holder of all the issued and outstanding stock of Pro-Pharma, in
accordance with the Massachusetts Business Corporation Law and Chapter 92A of
the Nevada Revised Statutes, to effect a short-form "upstream" merger of
Pro-Pharma with and into the Company and to qualify the Company as a foreign
corporation to do business in Massachusetts.

     6.6 Filing with the Securities and Exchange Commission. Following the
Closing Date, the Company will file a Form 10 or Form 10SB with the United
States Securities and Exchange Commission as provided in Section 5.4.

                                       12
<PAGE>

     6.7 Pro-Pharma Convertible Notes. The Company acknowledges that the
Convertible Notes were issued and sold by Pro-Pharma in contemplation of the
business combination evidenced hereby and that the Convertible Notes contemplate
a private placement of equity securities by the Company. The Company
acknowledges and agrees that pursuant to the "upstream" merger contemplated by
Section 6.5 hereof, the Convertible Notes shall become obligations of the
Company and that the Company shall issue Common Shares upon conversion of the
Convertible Notes and in other events pursuant to the terms and conditions
thereof.

                                   ARTICLE VII

                         OTHER AGREEMENTS OF ALL PARTIES

     The Shareholders, the Company and Resource agree to the following:

     7.1 Confidentiality. All information received by any party to this
Agreement from any other party to this Agreement, in connection with the
transactions contemplated herein, will be treated as confidential to the extent
that the information was not known by the receiving party prior to the
commencement of the negotiations leading up to the transaction contemplated
hereby, or which could not have been obtained from any other source, which, in
the receiving party's reasonable belief, did not acquire such information by any
unlawful means. This provision shall not prevent any party hereto from
disclosing information (i) to certain selected employees and agents for the
purpose of consummating the transactions contemplated herein, or (ii) as may, in
the opinion of legal counsel for the disclosing party, be required under
applicable federal or state securities laws, or the rules or regulations
thereof.

     7.2 Publicity. Except for disclosures to those requiring information in
connection with the transactions contemplated hereby, and disclosures which
would be permitted under Section 7.1, all releases or disclosures of information
by Resource or the Company regarding the transactions contemplated hereby will
be subject to the review and approval of Pro-Pharma, and all releases or
disclosures of information by Pro-Pharma or the Shareholders regarding the
transactions contemplated hereby will be subject to the review and approval of
Resource; provided that if approval for a public release is not obtained within
a reasonable time after submission for review, nothing herein will preclude
disclosure of information which is deemed appropriate by counsel for any party
hereto in view of federal or state securities laws.

     7.3 Expenses. Each party to this Agreement shall pay all expenses incurred
by him or it in connection with the negotiation and preparation of this
Agreement and the transactions contemplated hereby.

                                       13
<PAGE>

                                  ARTICLE VIII

     CONDITIONS PRECEDENT TO OBLIGATIONS OF PRO-PHARMA AND THE SHAREHOLDERS

     Each of the obligations of Pro-Pharma and the Shareholders to consummate
the transactions contemplated by this Agreement are subject to fulfillment,
prior to or as of the Closing Date, of the following conditions precedent, each
of which may be waived in whole or in part by Pro-Pharma or the Shareholders:

     8.1 Accuracy of Warranties; Performance of Covenants. The representations
and warranties of Resource contained herein shall be accurate in all material
respects as if made on and as of the Closing Date, as well as on the date when
made. Resource and the Company shall have substantially performed each and all
of the obligations and substantially complied with each and all of the material
covenants, agreements and conditions specified herein to be performed or
complied with on or prior to the Closing Date.

     8.2 No Pending Action. As of the Closing Date, no action or proceeding (nor
any investigation preliminary thereto) shall be instituted or threatened at any
time prior to or as of the Closing Date before any court or other governmental
body by any person or public authority seeking to restrain or prohibit, or
seeking damages or other relief in connection with, the execution and delivery
of this Agreement or the consummation of the transactions contemplated hereby.

     8.3 Condition of Business. The business of the Company shall not have been
materially adversely affected in any way by any event or occurrence.

     8.4 Opinion of Counsel for Resource and the Company. Resource and the
Company shall cause to be delivered to Pro-Pharma an opinion of Felhaber,
Larson, Fenlon & Vogt, P.A., counsel for Resource and the Company, dated as of
the Closing Date, in form and substance satisfactory to legal counsel for
Pro-Pharma, to the effect that:

          (a) Resource and the Company are corporations duly organized and
     validly existing and in good standing under the laws of the State of
     Minnesota and Nevada, respectively, have all requisite corporate power and
     authority to own or lease their properties and assets and to carry on their
     business.

          (b) Resource and the Company have full corporate right, power,
     authority and capacity to make, execute, deliver and perform this Agreement
     without the approval or consent of any other person. The execution,
     delivery and performance of this Agreement and all documents to be
     delivered by Resource and the Company hereunder have been duly authorized
     and approved by all requisite corporate action.

          (c) This Agreement and each of the documents required to be executed
     and delivered by Resource and the Company hereunder have been duly executed
     and delivered and constitute valid and legally binding obligations of
     Resource or the

                                       14
<PAGE>

     Company, as the case may be, as applicable, enforceable in accordance with
     their respective terms, subject to bankruptcy, insolvency, reorganization
     and other laws of general applicability relating to or affecting creditors'
     rights, and subject to the application of general equity principles.

          (d) To the knowledge of such counsel, all material consents, approvals
     or authorizations of any governmental authority required in connection with
     the execution, delivery and performance by Resource and the Company of this
     Agreement and the other documentation referred to or provided for herein to
     be executed and delivered by Resource and the Company in connection with
     the transactions contemplated hereby have been duly obtained and are in
     full force and effect.

          (e) To the knowledge of such counsel, neither the execution nor
     delivery of this Agreement by Resource or the Company, nor the consummation
     of the transactions contemplated hereby, are prohibited by, violate or
     conflict with any provisions of, or result in a material default under or a
     material breach of (i) the Articles of Incorporation or ByLaws of Resource
     or the Company, (ii) any material contract, agreement or other instrument
     to which Resource or the Company is a party, (iii) any material order,
     writ, decree or judgment of any court or governmental agency, or (iv) any
     material law or regulation applicable to Resource or the Company.

     8.5 Election of Directors. John Hupp and Roger Schnobrich, shall have
resigned as members of the Board of Directors of the Company, and the remaining
member of the Company's Board of Directors, Peter Hauser, shall have caused
David Platt, Anatole Klyosov, James Czirr, Dale Conaway and Burton Firtel to be
elected as the members of the Board of Directors of the Company.

     8.6 Change of Name. The name of the Company will be Pro-Pharmaceuticals,
Inc.

                                   ARTICLE IX

         CONDITIONS PRECEDENT TO OBLIGATIONS OF RESOURCE AND THE COMPANY

     Each of the obligations of Resource and the Company to consummate the
transactions contemplated by this Agreement are subject to fulfillment, prior to
or as of the Closing Date, of the following conditions, each of which may be
waived in whole or in part by Resource or the Company:

     9.1 Accuracy of Warranties, Performance of Covenants. The representations
and warranties of the Shareholders contained herein shall be accurate in all
material respects as if made on and as of the Closing Date, as well as on the
date when made. Pro-Pharma and the Shareholders shall have substantially
erformed each and all of the obligations and substantially

                                       15
<PAGE>

complied with each and all of the material covenants specified in this Agreement
to be performed or complied with on or prior to the Closing Date.

     9.2 No Pending Action. As of the Closing Date, no action or proceeding (nor
investigation preliminary thereto) shall be instituted or threatened at any time
prior to or as of the Closing before any court or other governmental body or by
any person or public authority seeking to restrain or prohibit, or seeking
damages or other relief in connection with, the execution and delivery of this
Agreement or the consummation of the transactions contemplated hereby.

     9.3 Condition of Business. The business of Pro-Pharma shall not have been
materially adversely affected in any way by any event or occurrence.

     9.4 Opinion of Counsel for Pro-Pharma and the Shareholders. Pro-Pharma and
the Shareholders shall have delivered to Resource an opinion of Perkins, Smith &
Cohen, LLP, counsel for Pro-Pharma and the Shareholders, dated as of the Closing
Date, in form and substance satisfactory to legal counsel for Resource and the
Company, to the effect that:

          (a) Pro-Pharma is a corporation duly organized, validly existing and
     in good standing under the laws of the Commonwealth of Massachusetts, and
     has all requisite corporate power and authority to own or lease its
     properties and assets and to carry on its business.

          (b) Pro-Pharma and (to such counsel's knowledge based upon
     representations of the Shareholders) the Shareholders have full right,
     power, authority and capacity to make, execute, deliver and perform this
     Agreement without the approval or consent of any other person, and the
     execution, delivery and performance of this Agreement and all documents to
     be delivered by Pro-Pharma hereunder have been duly authorized and approved
     by all requisite corporate action.

          (c) This Agreement and each of the documents required to be executed
     and delivered by Pro-Pharma and the Shareholders hereunder have been duly
     executed and delivered and constitute valid and legally binding obligations
     of Pro-Pharma and the Shareholders, as the case may be, enforceable in
     accordance with their respective terms, subject to bankruptcy, insolvency,
     reorganization and other laws of general applicability relating to or
     affecting creditors' rights, and subject to the application of general
     equity principles.

          (d) All shares of the Stock issued by Pro-Pharma and delivered by the
     Shareholders to the Company under Article II have been validly issued and
     are fully paid and non-assessable, and upon such delivery are subject to no
     restrictions or encumbrances except those imposed under the applicable
     state and federal securities laws.

          (e) To the knowledge of such counsel, all material consents, approvals
     or authorizations of any governmental authority required in connection with
     the execution,

                                       16
<PAGE>

     delivery and performance by Pro-Pharma and the Shareholders of this
     Agreement, and the other documentation referred to or provided for herein
     to be executed and delivered by Pro-Pharma and the Shareholders in
     connection with the transactions contemplated hereby have been duly
     obtained and are in full force and effect.

          (f) To the knowledge of such counsel, neither the execution nor
     delivery of this Agreement by Pro-Pharma or the Shareholders, nor the
     consummation of the transactions contemplated hereby, are prohibited by,
     violate or conflict with any provisions of, or result in a material default
     under or a material breach of (i) the Articles of Organization or ByLaws of
     Pro-Pharma, (ii) any material contract, agreement or other instrument to
     which Pro-Pharma is a party, (iii) any material order, writ, decree or
     judgment of any court or governmental agency, or (iv) any material law or
     regulation applicable to Pro- Pharma or the Shareholders.

                                    ARTICLE X

                          CLOSING AND DELIVERY OF STOCK

     10.1 Closing. The delivery of the Stock and the delivery of the
Consideration specified in Article II contemplated by this Agreement (the
"Closing") shall take place at the offices of Perkins, Smith & Cohen, LLP, One
Beacon Street, Boston, MA 02108 at 10:00 a.m. on May 15, 2001 (the "Closing
Date"). At the Closing, all transactions shall be conducted substantially
concurrently and no transaction shall be deemed to be completed until all are
completed. In the event the Closing has not occurred as of the date that is 30
days after the date hereof, by reason of the failure of any of the parties
hereto to meet any condition to Closing described in Articles VIII or IX hereof,
either Resource (if the failure is that of Pro-Pharma or any Shareholder), at
its option, or Pro-Pharma (if the failure is that of Resource or the Company) at
its option, may terminate this Agreement, without any liability to any other
party hereto, so long as the terminating party and its shareholders or
subsidiary, as the case may be, are not in material breach of any of its
covenants set forth in this Agreement, and the terminating party has used its
best efforts to consummate the transaction contemplated hereunder; provided that
a party shall not be required to expend material amounts of money in order to be
considered to have used best efforts.

     10.2 Deliveries by Resource or Company. At the Closing, Resource or the
Company shall deliver to Pro-Pharma or the Shareholders the following:

          (a) A certificate of the President of Resource certifying as to the
     continued accuracy of the representations and warranties, the performance
     of the covenants and the compliance with the conditions precedent contained
     in Articles IV, VI, VII and VIII, respectively, of this Agreement;

          (b) An opinion of legal counsel to Resource and the Company to the
     effect described in Section 8.4 hereof;

                                       17
<PAGE>

          (c) Certificates representing and aggregate of 12,354,670 Common
     Shares, registered in the names of the Shareholders, for the amount of
     common stock in each case, as set forth on the signature page hereof;

          (d) A certificate from the Secretary of State of Nevada as to the good
     standing of the Company as a corporation organized in that state;

          (e) A certificate of the respective secretaries of Resource and the
     Company certifying as to the adoption of resolutions of the Board of
     Directors of each corporation authorizing execution and delivery of this
     Agreement and the consummation of the transactions contemplated hereby, and
     that such resolutions have not been amended or rescinded and remain in full
     force and effect; and

          (f) Such other instrument or documents as may be reasonably necessary
     to carry out the transactions contemplated hereby and to comply with the
     terms hereof.

     10.3 Deliveries by Pro-Pharma or the Shareholders. At the Closing,
Pro-Pharma or the Shareholders shall deliver or cause to be delivered to
Resource or the Company the following:

          (a) A certificate of the President of Pro-Pharma certifying as to the
     continued accuracy of the representations and warranties, the performance
     of the covenants and the compliance with the conditions precedent contained
     in Articles III, V, VII and IX, respectively, of this Agreement;

          (b) An opinion of legal counsel to Pro-Pharma and the Shareholders to
     the effect described in Section 9.4 hereof;

          (c) Certificates representing the Stock, accompanied by one or more
     assignments duly executed by the Shareholders effectively transferring the
     Stock to the Company in such form as is reasonably satisfactory to counsel
     for Resource;

          (d) A certificate of the President of Pro-Pharma certifying as to the
     resolutions of the Board of Directors of Pro-Pharma authorizing execution
     and delivery of this Agreement, and the consummation of the transactions
     contemplated hereby, and that such resolutions have not been amended or
     rescinded and remain in full force and effect;

          (e) Certificate from the Secretary of the Commonwealth of
     Massachusetts as to the good standing of Pro-Pharma as a corporation
     organized in that state; and

          (f) Such other instruments or documents as may be reasonably necessary
     to carry out the transactions contemplated hereby and to comply with the
     terms hereof.

                                       18
<PAGE>

                                   ARTICLE XI

               SURVIVAL, INDEMNIFICATION, INJUNCTIVE RELIEF, ETC.

     11.1 Survival. All representations, warranties, covenants and agreements
contained in this Agreement, and all representations and warranties contained in
any document delivered pursuant hereto shall be deemed to be material and to
have been relied upon by the parties hereto (unless otherwise stated in such
document), and, except with respect to agreements and covenants requiring
performance after the Closing Date, shall survive the Closing exclusively for
purposes of the indemnity afforded by this Article XI for a period (the
"Indemnity Period") extending for eighteen months after the Closing Date. Upon
the expiration of the Indemnity Period, all such representations, warranties,
covenants and agreements shall expire, terminate and be of no further force or
effect, except to the extent that any covenants contained in Articles V, VI,
VII, XI and XIII specifically require performance following the Closing Date,
and except that no representation, warranty, covenant or agreement shall expire
to the extent that a written notice has been provided to an indemnifying party
within the Indemnity Period pursuant to which a breach of any such
representation, warranty, covenant or agreement is alleged, and such notice
specifies the claim for which indemnification is sought.

     11.2 Indemnification by the Shareholders. Subject to the limitations of
Section 11.1 above, the Shareholders shall indemnify, defend and hold harmless
Resource and the Company from and against any and all loss, damage (except
incidental and consequential damages), expense (including court costs,
reasonable attorneys' fees, interest expenses and amounts paid in compromise or
settlement), suits, actions, claims, penalties, liabilities or obligations
(collectively, "Losses") related to, caused by, arising from or on account of
any misrepresentation, or breach of any representation, warranty, covenant or
agreement of the Shareholders, made or contained in this Agreement, or arising
from any action taken by the Company following the Closing Date.

     11.3 Indemnification by Resource and the Company. Subject to the
limitations of Section 11.1 above, Resource shall indemnify, defend and hold
harmless Pro-Pharma and the Shareholders from and against any and all Losses
related to, caused by, arising from or on account of any misrepresentation, or
breach of any representation warranty, covenant or agreement of Resource or the
Company, made or contained in this Agreement, or arising from any action taken
by the Company (up to the Closing) or Resource.

     11.4 Indemnification - General. Promptly after discovery by an indemnified
party under Section 11.2 or 11.3 of any facts or circumstances which form the
basis for a claim of indemnification, such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under Section 11.2
or 11.3, notify in writing the indemnifying party of such facts or
circumstances. The omission of the indemnified party to promptly notify the
indemnifying party will not relieve the indemnifying party from any liability or
obligation under Section 11.2 or 11.3 as to the particular item for which
indemnification is then being sought, unless such omission materially impairs
the indemnifying party's ability to adequately remedy such facts or
circumstances, or to defend any third party action based in whole or part
thereon. In case any third party action is brought against any indemnified party
and it seeks

                                       19
<PAGE>

indemnification hereunder, the indemnifying party will be entitled to
participate therein, and, to the extent that it may wish, to assume the defense
thereof, with counsel who shall be to the reasonable satisfaction of such
indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under Section
11.2 or 11.3 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation. Any such indemnifying party shall not be liable to any
such indemnified party on account of any settlement with a third party of any
claim or action effected without the consent of such indemnifying party. An
indemnified party shall have the right to employ its own counsel in any matter
with respect to which indemnity may be sought by the indemnified party against
an indemnifying party in which event the fees and expenses of separate counsel
shall be borne by the indemnified party.

     11.5 Injunctive Relief, etc. It is acknowledged by all parties that it
would likely not be able to determine damages as the result of a breach of the
filing requirements set down under Sections 5.4 and 6.7 of this Agreement by the
Shareholders. Accordingly, Resource may commence an action against the
Shareholders and the Company to seek injunctive or other equitable relief to
cause the Shareholders and the Company to comply with Sections 5.4 and 6.7,
respectively. Unless such action is deemed to have been brought frivolously or
without any basis in fact, Resource shall be entitled to recover all of its
costs and disbursements (including reasonable attorney's fees, incurred in
commencing and maintaining such action, regardless of the outcome. In addition,
if Resource is successful in obtaining an order of a court granting equitable
relief in such action, Resource will be entitled to liquidated damages from the
Shareholders equal to $100,000.

                                   ARTICLE XII

                             VENUE AND JURISDICTION

     With respect to any action brought against any party with respect to this
Agreement, or any controversy arising out of this Agreement, such action must be
brought and venued in the district court for the County of Hennepin, State of
Minnesota, and each party hereto submits and consents to the jurisdiction of
such court with respect to any such action.

                                  ARTICLE XIII

                               GENERAL PROVISIONS

     13.1 Amendment and Waiver. No amendment or waiver of any provision of this
Agreement shall in any event be effective, unless the same shall be in writing
and signed by the parties hereto, and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

                                       20
<PAGE>

     13.2 Return of Documents. In the event this Agreement is terminated, and
the transactions as contemplated hereunder are not consummated, Pro-Pharma and
the Shareholders shall return to Resource and the Company all information and
records relating to the business of Resource and the Company, and all copies
thereof, which it has received from Resource or the Company in connection with
negotiations leading to the execution of this Agreement, and Resource and the
Company will return to Pro-Pharma and the Shareholders, all information and
records relating to the business of Pro-Pharma, and all copies thereof, which it
has received from Pro-Pharma or the Shareholders in connection with negotiations
leading to the execution of this Agreement.

     13.3 Notices. To be effective, all notices or other communications required
or permitted hereunder shall be in writing. A written notice or other
communication shall be deemed to have been given hereunder (i) if delivered by
hand, when the notifying party delivers such notice or other communication to
all other parties to this Agreement, (ii) if delivered by telecopier or
overnight delivery service, on the first business day following the date such
notice or other communication is transmitted by telecopier or timely delivered
to the overnight courier, or (iii) if delivered by mail, on the fourth business
day following the date such notice or other communication is deposed in the U.S.
mail by certified or registered mail addressed to the other party, whichever
occurs earlier. Mailed or telecopied communications shall be directed as follows
unless written notice of a change of address or telecopier number has been given
in writing in accordance with this paragraph:

To Pro-Pharma and the Shareholders: Pro-Pharmaceuticals, Inc.
                                    12 Appleton Circle
                                    Newton, MA 02459
                                    Facsimile No.:  (617) 928-3450

Copy to:                            Jonathan C. Guest
                                    Perkins, Smith & Cohen, LLP
                                    One Beacon Street, 30th Floor
                                    Boston, MA  02108
                                    Facsimile No.:  (617) 854-4040

To: Resource and the Company:       John Hupp
                                    Developed Technology Resource, Inc.
                                    5223 Edina Industrial Blvd.
                                    Edina, MN  55439

Copy to:                            Roger H. Frommelt
                                    Felhaber, Larson, Fenlon & Vogt, P.A.
                                    601 Second Avenue South, Suite 4200
                                    Minneapolis, MN 55402-4302
                                    Facsimile No. (612) 338-0535

     13.4 Parties in Interest. This Agreement shall inure to the benefit of and
be binding upon the parties named herein and their respective successors and
assigns. Any assignment of

                                       21
<PAGE>

this Agreement or the rights hereunder by a party hereto without the prior
written consent of the other parties shall be void.

     13.5 Entire Transaction. This Agreement and the other documents referred to
herein shall contain the entire understanding among the parties with respect to
the transactions contemplated hereby and shall supersede all other agreements
and understandings among the parties.

     13.6 Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the state of Minnesota.

     13.7 Severability. Should any provision of this Agreement be declared
invalid, void or unenforceable for any reason, the remaining provisions hereof
shall remain in full force and effect.

     13.8 Cooperation. Subsequent to the Closing, the parties hereto will
execute such documents and take such actions as are reasonably requested by any
other party to carry out the intent of this Agreement.

     13.9 Headings. The Article, Section and other headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

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

                            [signature page follows]

                                       22
<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed or caused this
Agreement to be executed as of the day and year first above written, before the
undersigned witnesses.

DEVELOPED TECHNOLOGY RESOURCE, INC.

By: /s/ John Hupp
    --------------------------------------------
    John Hupp, President

DTR-Med Pharma Corp.

By: /s/ John Hupp
    ---------------------------
    John Hupp, President

Pro-Pharmaceuticals, Inc.

By: /s/ David Platt
    ---------------------------
    David Platt, President

                             Number of Shares of Pro-    Number of Shares of the
SHAREHOLDERS                       Pharma Owned          Company to be Received
--------------------------   ------------------------    -----------------------

/s/ David Platt                     40,000                       4,941,868
--------------------------
David Platt

/s/ Offer Binder                    10,000                       1,235,467
--------------------------
Offer Binder

/s/ James Czirr                     40,000                       4,941,868
--------------------------
James Czirr

/s/ Anatole Klyosov                 10,000                       1,235,467
--------------------------
Anatole Klyosov

                                       23
<PAGE>

                                  SCHEDULE 3.6

                  RIGHTS TO ACQUIRE CAPITAL STOCK OF PRO-PHARMA

     No exceptions as to Pro-Pharma; however, holders of the convertible notes
referred to in Schedule 3.11A have rights thereunder to receive Common Shares of
the Company.

                                       24
<PAGE>
                                  SCHEDULE 3.10

              INTERIM CHANGES OF PRO-PHARMA FROM DECEMBER 31, 2000

See disclosure in Schedule 3.18.

                                       25
<PAGE>

                                  SCHEDULE 3.11

                               MATERIAL CONTRACTS

     1. Convertible Notes issued to the following persons in the amounts shown
in Schedule 3.11A hereto.

     2. "Non-Exclusive Best Efforts Finder's Fee Agreement" dated March 20, 2001
with Tomlinson Programs Inc. entered into for purposes of sale of the
Convertible Notes.

     3. Oral Agreement with Toxikon Corporation, of Bedford, MA, with respect to
animal tests of compounds furnished by Pro-Pharma.

     4. Oral Agreement with Argus International, Inc., of Horsham, PA, with
respect to a project leading to development of an investigational new drug
application for Pro-Pharma.

                                       26
<PAGE>

                                 SCHEDULE 3.11A

                            CONVERTIBLE NOTE HOLDERS

NAME                                                              AMOUNT

Beakey, James and Loretta                                        $10,000
Berkman, Adrienne                                                $10,000
Biehl, James and Donna                                           $10,000
Carlson, Lesley R.                                               $25,000
Chess, Jason A.                                                  $10,000
Conaway, Dale                                                     $6,000
Conaway, Dale and Carla                                           $2,500
Crane, Michael and Cheryl                                        $50,000
Dubuc, Robing C. Living Trust dated 1/21/1987                   $100,000
Emerson, Michael D. Revocable Trust Dated 4-11-97                $15,000
Faske, Harold                                                    $10,000
Favazza, Dawn                                                    $10,000
Favazza, Ruth                                                    $40,000
Favazza, James D.                                                $10,000
Favazza, Joseph R.                                               $20,000
Favazza, Joseph J.                                               $10,000
Favazza, Thomas J.                                               $30,000
Firtel, Burton                                                  $100,000
Franklin, Bruce W.                                               $12,500
Greene, Gari-Sue and George Chappell Jr.                         $12,500
Garrison, Richard H.                                             $10,000
Gasior, Kathleen A.                                              $10,000
Genzer, Norman                                                   $10,000
Golan, Reuven                                                    $10,000
Goldstein, Alvin                                                 $25,000
Gresh, Wayne and Sandra Lee                                      $10,000
Grossman, Morton                                                 $20,000
Hanson, Raymond A.                                               $50,000
Hawkins, H. Preston and Carrie                                   $20,000
Jenkins, Thomas E.                                               $10,000
Kosek, Michael T.                                                $10,000
Leppo, Harold                                                    $30,000
Marko, Jeffrey                                                   $10,000
Marks, George                                                    $10,000
Martin, Katherine and Walter                                     $12,500
Messing, Carl                                                    $10,000
Minaudo, Sebastian                                               $10,000

                                       27
<PAGE>

                             SCHEDULE 3.11A (CONT.)

                            CONVERTIBLE NOTE HOLDERS

Moore, Charles                                                  $10,000
Newcomb, Philip                                                  $5,000
Nuriel, Gali                                                    $80,000
Ott, Carol L.                                                   $10,000
Pasquale, Anna                                                  $10,000
Platt, Naomi                                                    $10,000
Prince, Julian F.                                               $10,000
Richard, Carl                                                   $25,000
Ran, Talia Irrevocable Trust                                     $3,334
Ran, Tamar R. Irrevocable Trust UAD                              $3,334
Ran, Yonatan Y. Irrevocable Trust UAD                            $3,334
Ran, Yigal                                                       $5,000
Ran, Suzanna F.                                                 $50,000
Rome, Jerald K.                                                 $80,000
Sare, Michael J.                                                $10,000
Schmahl, Dennis and Nancy                                       $10,000
Schmidt, Martin L.                                              $10,000
Thalacker, Leland and Cessily J.                                $28,600
Van Leijenhorst, D.M.                                           $20,000
Weinberg, Leon                                                  $20,000
White Family Living Trust                                       $15,000
White, Glenn E. White Trust dated 6/8/95                        $20,000
Total                                                        $1,199,602.00

                                       28
<PAGE>

                                  SCHEDULE 3.12

                                 TITLE TO ASSETS

No exceptions.

                                       29
<PAGE>

                                 SCHEDULE 3.13

                      PATENTS AND TRADEMARKS OF PRO-PHARMA

     1. Provisional Patent Application entitled "Drug Formulations and
Modifications with Carbohydrates" (application no. 60/229,270) filed with the
U.S. Patent and Trademark Office on August 30, 2000 and assigned by David Platt,
Ph.D., the inventor thereunder, to Pro-Pharma under Assignment dated September
20, 2000 and recorded September 29, 2000 (reel 011161/frame 0008).

     2. Provisional Patent Application entitled "Synthesis of Galactomycin"
(application no. 60/235,141) filed with the U.S. Patent and Trademark Office on
September 25, 2000 and assigned by David Platt, Ph.D., the inventor thereunder,
to Pro-Pharma under Assignment dated October 5, 2000 and recorded November 1,
2000.

     Pro-Pharma may permit one or both of these provisional applications to
expire as a result of not filing an actual application.

     3. On March 27, 2001, David Platt and Anatole Klyosov, co-inventors,
delivered for filing with the U.S. Patent and Trademark Office a utility patent
application entitled "Delivery of a Therapeutic Agent in a Formulation for
Reduced Toxicity". Such co-inventors have assigned all their rights to such
invention and patent application to Pro-Pharma.

     Pro-Pharma has investigated the registrability of certain trademarks but
has not filed registration applications.

                                       30
<PAGE>

                                  SCHEDULE 3.14

                              REAL PROPERTY LEASES

No exceptions.

                                       31
<PAGE>

                                  SCHEDULE 3.15

                                PERSONAL PROPERTY

No exceptions.

                                       32
<PAGE>

                                  SCHEDULE 3.17

                             RELATED PARTY INTERESTS

See disclosure in Schedule 3.18

                                       33

<PAGE>

                                  SCHEDULE 3.18

                                   LITIGATION

     Pro-Pharma is not a party to any litigation, nor has it been directly
threatened with any litigation. However, SafeScience, Inc., a publicly traded
corporation ("SafeScience") founded by Dr. David Platt and of which he is a
stockholder, by letter dated February 15, 2001 (i) alleged that "the business of
Pro-Pharmaceuticals is directly competitive with that of SafeScience" and thus
in violation of Dr. Platt's employment agreement with SafeScience dated June 29,
1999, the non-competition covenant of which was continued in a severance letter
with Dr. Platt dated May 31, 2000, and (ii) demanded that Dr. Platt cease such
conduct. Dr. Platt responded in a letter from counsel dated February 19, 2001,
which argued that, as a developer of a drug delivery system for chemotherapies
already in use, Pro-Pharma is not competitive with SafeScience, which is
developing new chemotherapy drugs. Such letter more particularly stated that
SafeScience is engaged in development of drugs based on GBC 590, a galacturonic
acid polymer, for application to a new oncology drug structure seeking to
inhibit metastasis and shrink tumors, whereas Pro-Pharma aims to reduce the
toxicity and increase the efficacy of chemotherapy drugs now in widespread use,
by encapsulating them in polymannose, based on different carbohydrate chemistry,
so as to target delivery of such drugs to diseased tissue. Counsel to the
parties held a meeting and agreed on an informal "standstill" pending occurrence
of a meeting between scientist representatives of SafeScience and Pro-Pharma to
discuss whether their respective technologies would lead to competitive
businesses.

                                       34
<PAGE>

                                  SCHEDULE 3.19

                               COMPLIANCE WITH LAW

No exceptions.

                                       35
<PAGE>

                                  SCHEDULE 3.20

                                  BENEFIT PLANS

No exceptions.

                                       36
<PAGE>

                                  SCHEDULE 3.21

                           GOVERNMENTAL CONSENT, ETC.

     Pro-Pharma is engaged in a business subject to regulation by the Food and
Drug Administration.

                                       37
<PAGE>

                                 SCHEDULE 3.22

                                    BROKERS

No exceptions.

                                       38
<PAGE>

                                  SCHEDULE 4.9

                                    CONTRACTS

     1. The Company is a party to an Agreement for Transfer of Patent and
Proprietary Rights dated September 5, 1995, as amended on August 29, 1996 (the
"Agreement"), as a result of the assignment and acceptance of the rights and
obligations of Developed Technology Resource, Inc. under the Agreement. Other
parties to the Agreement are Armen P. Sarvazyan, Artann Corporation, a New
Jersey corporation, and ArMed, Inc., a Delaware corporation and successor to
ArMed, LLC, an Alabama limited liability company, and an original signatory to
the Agreement, a copy for which has been provided to the Shareholders.

     2. The Company will have likely entered into an agreement with a transfer
agent for its outstanding shares of the Company's common stock.

                                       39
<PAGE>

                                  SCHEDULE 4.10

                           GOVERNMENTAL CONSENT, ETC.

     The Company contemplates, or is obligated, under the Agreement, to take
certain action following the closing date which will require filings with
governmental agencies, including those required in connection with the filing of
a Form 10-KSB with the Securities and Exchange Commission, and the merger of
Pro-Pharmaceuticals, Inc. into the Company, and the qualification of the Company
to do business in Massachusetts.

                                       40
<PAGE>

                                  SCHEDULE 4.11

                            NO ASSETS OR LIABILITIES

     1. See Schedule 4.9 for contractual rights and obligations.

     2. The Company may have a liability to the stock transfer agent appointed
for its common stock.

     3. The Company will have liabilities relating to the transactions
contemplated in this Agreement, including liabilities to appraisers, lawyers,
accountants, printers and the stock transfer agent for Resource, not to exceed
$35,000 in the aggregate.

                                       41
<PAGE>

                                  SCHEDULE 4.12

                                      TAXES

None.

                                       42
<PAGE>

                                  SCHEDULE 6.3

                                    CONTRACTS

     See Schedule 4.9.

     The Company may not have a perfected security interest in the membership
units of ArMed, LLC (a Delaware limited liability company) or the capital stock
of its successor, ArMed, Inc., a Delaware corporation.

     Armen P. Sarvazyan and Artann Corporation could claim that the assignment
of the contractual rights in the "Agreement" (defined in Schedule 4.9) require
their consent.

                                       43

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