Document:

EXHIBIT B

NEITHER  THIS WARRANT NOR THE SHARES  ISSUABLE  UPON  EXERCISE  HEREOF HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES  ACT")
OR ANY OTHER  APPLICABLE  STATE  SECURITIES  LAWS.  NEITHER THIS WARRANT NOR THE
SHARES  ISSUABLE  UPON  EXERCISE  HEREOF  MAY  BE  SOLD,  PLEDGED,  TRANSFERRED,
ENCUMBERED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT  UNDER THE  SECURITIES  ACT OR IN A  TRANSACTION  WHICH IS EXEMPT FROM
REGISTRATION  UNDER THE PROVISIONS OF THE SECURITIES ACT OR ANY APPLICABLE STATE
LAWS.  THIS  WARRANT  MAY NOT BE  EXERCISED  BY OR ON BEHALF OF A UNITED  STATES
PERSON UNLESS  REGISTERED  UNDER THE  SECURITIES  ACT OR AN EXEMPTION  FROM SUCH
REGISTRATION IS AVAILABLE.

                             STOCK PURCHASE WARRANT

               To Purchase up to 500,000 Shares of Common Stock of

                           BIOPHAN TECHNOLOGIES, INC.

      THIS CERTIFIES that, for value  received,  Biomed  Solutions,  LLC and its
assigns  (the  "Holder")  is  entitled,  upon  the  terms  and  subject  to  the
limitations on exercise and the conditions  hereinafter  set forth,  at any time
during the Exercise Period (as hereinafter  defined),  at the Exercise Price (as
hereinafter  defined),  to subscribe for and purchase from Biophan Technologies,
Inc., a corporation  incorporated in the State of Nevada (the "Company"),  up to
500,000 shares (the "Warrant  Shares") of Common Stock,  $.005 par value, of the
Company (the "Common  Stock").  The Exercise  Price and the number of shares for
which the  Warrant is  exercisable  shall be subject to  adjustment  as provided
herein.  In the event of any conflict  between the terms of this Warrant and the
Line of Credit Agreement dated as of May __, 2005 (the "Agreement")  pursuant to
which this Warrant has been issued,  the Agreement  shall  control.  Capitalized
terms used and not otherwise  defined herein shall have the meanings ascribed to
such terms in the Agreement.

      1.  Exercise  Period.  Subject to vesting as described in Section 5 of the
Agreement,  this Warrant shall be exercisable  commencing on the date hereof and
terminating at 5:00 p.m. New York time on May ___, 2006 (the "Exercise Period").

      2.  Exercise  Price.  The per share  price at which  this  Warrant  may be
exercised  is  $______,  which is equal to 110% of the  average  of the  closing
prices for the twenty (20)  consecutive  trading days prior to the  execution of
the Agreement (the "Exercise Price").

      3. Title to Warrant.  During the Exercise Period and subject to compliance
with applicable laws, this Warrant and all rights hereunder are transferable, in
whole or in part, at the office or agency of the Company by the holder hereof in
person or by duly authorized  attorney,  upon surrender of this Warrant together
with the Assignment Form annexed hereto properly endorsed.

<PAGE>

      4.  Authorization  of Shares.  The  Company  covenants  that all shares of
Common  Stock  which may be issued  upon the  exercise  of the  purchase  rights
represented  by  this  Warrant  will,  upon  exercise  of  the  purchase  rights
represented by this Warrant, be duly authorized,  validly issued, fully paid and
nonassessable and free from all taxes, liens and charges in respect of the issue
thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue).

      5. Registration  Rights.  The Warrant Shares shall be registered under the
Securities  Act, to the extent  provided in the Agreement of even date herewith,
by and between the Company and the Holder of this Warrant.

      6. Exercise of Warrant.

            (a) Except as otherwise  provided herein,  and subject to vesting as
set  forth in  Section  5 of the  Agreement,  exercise  of the  purchase  rights
represented by this Warrant may be made at any time or times during the Exercise
Period, by the surrender of this Warrant and the Notice of Exercise Form annexed
hereto duly  executed,  at the office of the  Company  (or such other  office or
agency of the Company as it may designate by notice in writing to the registered
holder  hereof  at the  address  of such  holder  appearing  on the books of the
Company) and upon payment of the Exercise Price of the shares thereby  purchased
by wire transfer or cashier's check drawn on a United States bank, the holder of
this Warrant shall be entitled to receive a certificate for the number of shares
of Common Stock so purchased.  Certificates for shares purchased hereunder shall
be  delivered  to the holder  hereof  within five Trading Days after the date on
which this Warrant shall have been exercised as aforesaid. This Warrant shall be
deemed to have been  exercised and such  certificate  or  certificates  shall be
deemed to have been issued,  and Holder or any other person so  designated to be
named  therein  shall be deemed to have become a holder of record of such shares
for all  purposes,  as of the date the Warrant has been  exercised by payment to
the Company of the Exercise  Price and all taxes  required to be paid by Holder,
if any,  pursuant to Section 8 prior to the issuance of such  shares,  have been
paid.

            (b) If this Warrant shall have been  exercised in part,  the Company
shall, at the time of delivery of the  certificate or certificates  representing
Warrant Shares,  deliver to Holder a new Warrant evidencing the rights of Holder
to purchase the  unpurchased  shares of Common Stock called for by this Warrant,
which new Warrant shall in all other respects be identical with this Warrant.

      7.  No  Fractional   Shares  or  Scrip.  No  fractional  shares  or  scrip
representing  fractional  shares  shall  be  issued  upon the  exercise  of this
Warrant.  As to any fraction of a share that Holder would  otherwise be entitled
to purchase  upon such  exercise,  the Company  shall pay a cash  adjustment  in
respect of such final fraction in an amount equal to such fraction multiplied by
the Exercise Price.

      8. Charges,  Taxes and Expenses.  Issuance of  certificates  for shares of
Common Stock upon the exercise of this Warrant  shall be made without  charge to
the holder hereof for any issue or transfer tax or other  incidental  expense in
respect of the  issuance of such  certificate,  all of which taxes and  expenses
shall be paid by the Company,  and such certificates shall be issued in the name
of the holder of this Warrant or in such name or names as may be directed by the
holder of this Warrant;  provided,  however,  that in the event certificates for
shares of Common  Stock  are to be issued in a name  other  than the name of the
holder of this  Warrant,  this Warrant when  surrendered  for exercise  shall be
accompanied by the Assignment  Form attached  hereto duly executed by the holder
hereof; and the Company may require,  as a condition  thereto,  the payment of a
sum sufficient to reimburse it for any transfer tax incidental thereto.

                                       2
<PAGE>

      9. Closing of Books.  The Company will not close its stockholder  books or
records in any manner which prevents the timely exercise of this Warrant.

      10. Transfer, Division and Combination.

            (a)  Subject to  compliance  with any  applicable  securities  laws,
transfer of this Warrant and all rights hereunder, in whole or in part, shall be
registered on the books of the Company to be maintained  for such purpose,  upon
surrender of this Warrant at the principal office of the Company,  together with
a written  assignment of this Warrant  substantially in the form attached hereto
duly executed by Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such  transfer.  In the event that the
Holder wishes to transfer a portion of this Warrant,  the Holder shall  transfer
at least 50,000 shares underlying this Warrant to any such transferee. Upon such
surrender and, if required,  such payment, the Company shall execute and deliver
a new Warrant or Warrants in the name of the  assignee or  assignees  and in the
denomination or  denominations  specified in such instrument of assignment,  and
shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned,  and this Warrant shall  promptly be cancelled.  A Warrant,  if
properly  assigned,  may be exercised by a new holder for the purchase of shares
of Common Stock without having a new Warrant issued.

            (b) This Warrant may be divided or combined with other Warrants upon
presentation  hereof at the  aforesaid  office of the Company,  together  with a
written notice  specifying the names and denominations in which new Warrants are
to be issued,  signed by Holder or its agent or attorney.  Subject to compliance
with Section 10(a), as to any transfer which may be involved in such division or
combination,  the Company shall execute and deliver a new Warrant or Warrants in
exchange  for the Warrant or  Warrants  to be divided or combined in  accordance
with such notice.

            (c) The Company shall prepare,  issue and deliver at its own expense
(other than transfer taxes) the new Warrant or Warrants under this Section 10.

            (d) The Company agrees to maintain,  at its aforesaid office,  books
for the registration and the registration of transfer of the Warrants.

      11. No Rights as Shareholder until Exercise. This Warrant does not entitle
the holder hereof to any voting  rights or other rights as a shareholder  of the
Company prior to the exercise hereof. Upon the surrender of this Warrant and the
payment of the aggregate  Exercise Price,  the Warrant Shares so purchased shall
be and be deemed to be issued to such holder as the record  owner of such shares
as of the  close of  business  on the  later of the  date of such  surrender  or
payment.

                                       3
<PAGE>

      12.  Loss,  Theft,  Destruction  or  Mutilation  of  Warrant.  The Company
covenants that upon receipt by the Company of evidence  reasonably  satisfactory
to it of the loss, theft,  destruction or mutilation of this Warrant certificate
or any stock  certificate  relating to the Warrant Shares,  and in case of loss,
theft or  destruction,  of indemnity or security  reasonably  satisfactory to it
(which may include the posting of any bond), and upon surrender and cancellation
of such Warrant or stock  certificate,  if mutilated,  the Company will make and
deliver a new  Warrant or stock  certificate  of like tenor and dated as of such
cancellation, in lieu of such Warrant or stock certificate.

      13. Saturdays,  Sundays,  Holidays,  etc. If the last or appointed day for
the  taking of any action or the  expiration  of any right  required  or granted
herein shall be a Saturday,  Sunday or a legal holiday,  then such action may be
taken or such right may be exercised on the next  succeeding day not a Saturday,
Sunday or legal holiday.

      14. Adjustments of Exercise Price and Number of Warrant Shares. The number
and kind of  securities  purchasable  upon the  exercise of this Warrant and the
Exercise  Price  shall be  subject  to  adjustment  from  time to time  upon the
happening of any of the following.  In case the Company shall (a) pay a dividend
in shares of Common  Stock or make a  distribution  in shares of Common Stock to
holders of its outstanding Common Stock, (b) subdivide its outstanding shares of
Common Stock into a greater  number of shares of Common  Stock,  (c) combine its
outstanding  shares of Common  Stock  into a smaller  number of shares of Common
Stock, or (d) issue any shares of its capital stock in a reclassification of the
Common Stock,  then the number of Warrant  Shares  purchasable  upon exercise of
this Warrant  immediately  prior thereto shall be adjusted so that the holder of
this Warrant shall be entitled to receive the kind and number of Warrant  Shares
or other  securities  of the  Company  which he would  have  owned or have  been
entitled to receive had such Warrant been  exercised  in advance  thereof.  Upon
each  such  adjustment  of the  kind  and  number  of  Warrant  Shares  or other
securities of the Company which are  purchasable  hereunder,  the holder of this
Warrant shall thereafter be entitled to purchase the number of Warrant Shares or
other securities resulting from such adjustment at an Exercise Price per Warrant
Share or other  security  obtained by  multiplying  the Exercise Price in effect
immediately prior to such adjustment by the number of Warrant Shares purchasable
pursuant hereto  immediately prior to such adjustment and dividing by the number
of  Warrant  Shares  or other  securities  of the  Company  resulting  from such
adjustment. An adjustment made pursuant to this paragraph shall become effective
immediately  after the effective  date of such event  retroactive  to the record
date, if any, for such event.

      15. Reorganization, Reclassification, Merger, Consolidation or Disposition
of Assets.  In case the Company shall  reorganize  its capital,  reclassify  its
capital stock,  consolidate or merge with or into another corporation (where the
Company  is not the  surviving  corporation  or where  there  is a change  in or
distribution with respect to the Common Stock of the Company), or sell, transfer
or  otherwise  dispose  of all or  substantially  all its  property,  assets  or
business   to  another   corporation   and,   pursuant  to  the  terms  of  such
reorganization,   reclassification,  merger,  consolidation  or  disposition  of
assets, shares of common stock of the successor or acquiring corporation, or any
cash,  shares of stock or other securities or property of any nature  whatsoever
(including  warrants or other subscription or purchase rights) in addition to or
in lieu of  common  stock of the  successor  or  acquiring  corporation  ("Other
Property"),  are to be received by or distributed to the holders of Common Stock
of the Company,  then Holder shall have the right  thereafter  to receive,  upon
exercise of this Warrant,  the number of shares of common stock of the successor
or acquiring corporation or of the Company, if it is the surviving  corporation,
and  Other  Property  receivable  upon or as a  result  of such  reorganization,
reclassification,  merger, consolidation or disposition of assets by a holder of
the  number of shares of Common  Stock for which  this  Warrant  is  exercisable
immediately   prior  to  such  event.  In  case  of  any  such   reorganization,
reclassification,  merger, consolidation or disposition of assets, the successor
or acquiring  corporation (if other than the Company) shall expressly assume the
due and  punctual  observance  and  performance  of each and every  covenant and
condition of this  Warrant to be  performed  and observed by the Company and all
the obligations and liabilities hereunder,  subject to such modifications as may
be deemed appropriate (as determined in good faith by resolution of the Board of
Directors  of the  Company)  in order to provide  for  adjustments  of shares of
Common  Stock for which this  Warrant is  exercisable  which  shall be as nearly
equivalent as  practicable to the  adjustments  provided for in this Section 15.
For purposes of this  Section 15,  "common  stock of the  successor or acquiring
corporation"  shall include stock of such  corporation of any class which is not
preferred  as to  dividends  or  assets  over any  other  class of stock of such
corporation  and which is not subject to  redemption  and shall also include any
evidences  of  indebtedness,  shares  of  stock or other  securities  which  are
convertible into or exchangeable for any such stock,  either immediately or upon
the arrival of a specified  date or the  happening of a specified  event and any
warrants  or other  rights to  subscribe  for or purchase  any such  stock.  The
foregoing  provisions  of this Section 15 shall  similarly  apply to  successive
reorganizations,  reclassifications,  mergers,  consolidations or disposition of
assets.

                                       4
<PAGE>

      16. Notice of Adjustment.  Whenever the number of Warrant Shares or number
or kind of securities or other  property  purchasable  upon the exercise of this
Warrant or the Exercise Price is adjusted, as herein provided, the Company shall
promptly mail by registered or certified mail, return receipt requested,  to the
holder of this Warrant notice of such  adjustment or  adjustments  setting forth
the number of Warrant Shares (and other securities or property) purchasable upon
the exercise of this Warrant and the Exercise  Price of such Warrant Shares (and
other  securities  or property)  after such  adjustment,  setting  forth a brief
statement  of  the  facts  requiring  such  adjustment  and  setting  forth  the
computation by which such  adjustment was made.  Such notice,  in the absence of
manifest  error,  shall  be  conclusive  evidence  of the  correctness  of  such
adjustment.

      17. Notice of Corporate Action. If at any time:

            (a) the  Company  shall  take a record of the  holders of its Common
Stock  for the  purpose  of  entitling  them to  receive  a  dividend  or  other
distribution,  or any right to subscribe  for or purchase  any  evidences of its
indebtedness,  any  shares  of stock of any  class or any  other  securities  or
property, or to receive any other right, or

            (b) there shall be any capital  reorganization  of the Company,  any
reclassification  or recapitalization of the capital stock of the Company or any
consolidation  or merger of the  Company  with,  or any sale,  transfer or other
disposition of all or substantially all the property,  assets or business of the
Company to, another corporation or,

                                       5
<PAGE>

            (c)  there  shall  be  a  voluntary  or   involuntary   dissolution,
liquidation or winding up of the Company;

then, in any one or more of such cases,  the Company shall give to Holder (i) at
least 10 days' prior written  notice of the date on which a record date shall be
selected for such  dividend,  distribution  or right and (ii) in the case of any
such reorganization,  reclassification,  merger, consolidation,  sale, transfer,
disposition,  dissolution,  liquidation  or winding  up, at least 10 days' prior
written  notice of the date  when the same  shall  take  place.  Such  notice in
accordance  with the  foregoing  clause also shall specify (A) the date on which
any such record is to be taken for the purpose of such dividend, distribution or
right,  the date on which the  holders of Common  Stock shall be entitled to any
such dividend,  distribution or right, and the amount and character thereof, and
(B)  the  date on  which  any  such  reorganization,  reclassification,  merger,
consolidation, sale, transfer, disposition,  dissolution, liquidation or winding
up is to take place and the time,  if any such time is to be fixed,  as of which
the holders of Common Stock shall be entitled to exchange their shares of Common
Stock for  securities  or other  property  deliverable  upon  such  disposition,
dissolution,  liquidation  or winding  up.  Each such  written  notice  shall be
sufficiently  given if  addressed  to  Holder  at the  last  address  of  Holder
appearing on the books of the Company and delivered in  accordance  with Section
19(d).

      18. Authorized Shares.

            (a) The  Company  covenants  that  during the period the  Warrant is
outstanding,  it will reserve from its  authorized  and unissued  Common Stock a
sufficient  number of shares to provide for the  issuance of the Warrant  Shares
upon the exercise of any purchase rights under this Warrant. The Company further
covenants that its issuance of this Warrant shall  constitute  full authority to
its officers who are charged with the duty of executing  stock  certificates  to
execute and issue the  necessary  certificates  for the Warrant  Shares upon the
exercise of the purchase  rights under this  Warrant.  The Company will take all
such  reasonable  action as may be necessary to assure that such Warrant  Shares
may be issued as provided  herein  without  violation of any  applicable  law or
regulation, or of any requirements of the Principal Market upon which the Common
Stock may be listed.

            (b)  The  Company  shall  not  by  any  action,  including,  without
limitation,   amending   its   articles   of   incorporation   or  through   any
reorganization, transfer of assets, consolidation, merger, dissolution, issue or
sale of securities  or any other  voluntary  action,  avoid or seek to avoid the
observance or performance  of any of the terms of this Warrant,  but will at all
times in good  faith  assist in the  carrying  out of all such  terms and in the
taking of all such  actions as may be necessary  or  appropriate  to protect the
rights of Holder  against  impairment.  Without  limiting the  generality of the
foregoing,  the  Company  will (i) not  increase  the par value of any shares of
Common  Stock  receivable  upon the  exercise of this  Warrant  above the amount
payable  therefor upon such exercise  immediately  prior to such increase in par
value,  (ii) take all such action as may be  necessary or  appropriate  in order
that the Company may  validly  and  legally  issue fully paid and  nonassessable
shares  of  Common  Stock  upon the  exercise  of this  Warrant,  and  (iii) use
commercially reasonable efforts to obtain all such authorizations, exemptions or
consents from any public regulatory body having  jurisdiction  thereof as may be
necessary to enable the Company to perform its obligations under this Warrant.

                                       6
<PAGE>

            (c) Before  taking any action which would result in an adjustment in
the number of shares of Common Stock for which this Warrant is exercisable or in
the  Exercise  Price,  the  Company  shall  obtain  all such  authorizations  or
exemptions  thereof,  or consents  thereto,  as may be necessary from any public
regulatory body or bodies having jurisdiction thereof.

      19. Miscellaneous.

            (a) Jurisdiction.  This Warrant shall be binding upon any successors
or assigns of the Company.  This Warrant shall  constitute a contract  under the
laws of New York,  without  regard to its conflict of law,  principles or rules,
and be subject to arbitration pursuant to the terms set forth in the Agreement.

            (b)  Restrictions.  The holder hereof  acknowledges that the Warrant
Shares acquired upon the exercise of this Warrant, if not registered,  will have
restrictions upon resale imposed by state and federal securities laws.

            (c)  Nonwaiver.  No course of  dealing  or any delay or  failure  to
exercise any right  hereunder on the part of Holder shall operate as a waiver of
such  right  or  otherwise  prejudice  Holder's  rights,   powers  or  remedies,
notwithstanding all rights hereunder terminate on the Termination Date.

            (d)  Notices.  Any  notice,  request or other  document  required or
permitted to be given or delivered to the holder  hereof by the Company shall be
delivered in accordance with the notice provisions of the Agreement.

            (e) Limitation of Liability.  No provision hereof, in the absence of
affirmative  action by  Holder  to  purchase  shares  of  Common  Stock,  and no
enumeration herein of the rights or privileges of Holder hereof, shall give rise
to any  liability of Holder for the  purchase  price of any Common Stock or as a
stockholder of the Company, whether such liability is asserted by the Company or
by creditors of the Company.

            (f) Remedies.  Holder, in addition to being entitled to exercise all
rights  granted by law,  including  recovery  of  damages,  will be  entitled to
specific performance of its rights under this Warrant.

            (g) Successors and Assigns.  Subject to applicable  securities laws,
this Warrant and the rights and obligations  evidenced hereby shall inure to the
benefit of and be binding upon the  successors of the Company and the successors
and permitted assigns of Holder.  The provisions of this Warrant are intended to
be for the benefit of all Holders from time to time of this Warrant and shall be
enforceable by any such Holder or holder of Warrant Shares.

            (h)  Amendment.  This  Warrant  may be  modified  or  amended or the
provisions hereof waived with the written consent of the Company and the Holder.

            (i) Severability.  Wherever possible, each provision of this Warrant
shall  be  interpreted  in  such  manner  as to be  effective  and  valid  under
applicable  law, but if any  provision of this Warrant shall be prohibited by or
invalid under  applicable law, such provision shall be ineffective to the extent
of such  prohibition or invalidity,  without  invalidating the remainder of such
provisions or the remaining provisions of this Warrant.

                                       7
<PAGE>

            (j)  Headings.  The  headings  used  in  this  Warrant  are  for the
convenience of reference  only and shall not, for any purpose,  be deemed a part
of this Warrant.

      IN WITNESS WHEREOF,  the Company has caused this Warrant to be executed by
its officer thereunto duly authorized.

Dated: May __, 2005

                                   BIOPHAN TECHNOLOGIES, INC.

                                   By:
                                      ------------------------------------------
                                          Guenter Jaensch, Chairman

                                       8
<PAGE>

                               NOTICE OF EXERCISE

To:      Biophan Technologies, Inc.
         150 Lucius Gordon Drive, Suite 215
         West Henrietta, New York 14586

            (1) The  undersigned  hereby elects to purchase  ________  shares of
Common Stock (the "Common Stock") of Biophan Technologies,  Inc. pursuant to the
terms of the  attached  Warrant,  and tenders  herewith  payment of the exercise
price in full, together with all applicable transfer taxes, if any.

            (2) Please issue a certificate  or  certificates  representing  said
shares of Common Stock in the name of the  undersigned  or in such other name as
is specified below:

                  ----------------------------------
                  (Name)

                  ----------------------------------
                  (Address)

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

Dated:

                                                    ----------------------------
                                                    Signature

<PAGE>

                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

      FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby
are hereby assigned to

                                                  whose address is
------------------------------------------------

---------------------------------------------------------------.

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

                                              Dated:  ______________, _______

                        Holder's Signature:
                                            ------------------------------------

                        Holder's Address:
                                            ------------------------------------

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

Signature Guaranteed:
                       ---------------------------------------------------------

NOTE: The signature to this  Assignment Form must correspond with the name as it
appears on the face of the Warrant,  without  alteration or  enlargement  or any
change whatsoever,  and must be guaranteed by a bank or trust company.  Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.STOCK PURCHASE AGREEMENT

            THIS STOCK PURCHASE  AGREEMENT is made as of the _______ day of May,
2005 by and between Biophan  Technologies,  Inc. (the "Company"),  a corporation
organized under the laws of the State of Nevada,  with its principal  offices at
150 Lucius Gordon  Drive,  Suite 215, West  Henrietta,  New York 14586,  and SBI
Brightline XI, LLC, a California  limited  liability  company with its principal
offices at 610 Newport Center Drive, Suite 1205, Newport Beach, California 92660
(the "Purchaser").

            IN  CONSIDERATION   of  the  mutual  covenants   contained  in  this
Agreement, the Company and the Purchaser hereby agree as follows:

            SECTION 1. Authorization of Sale of the Shares. Subject to the terms
and  conditions  of this  Agreement,  the  Company  may  issue  and  sell to the
Purchaser  and the  Purchaser  shall  purchase from the Company up to 10,000,000
shares of the Company's  Common Stock (the "Shares"),  par value $.005 per share
(the "Common Stock").  The Company has authorized and has reserved and covenants
to continue to reserve,  free of preemptive rights and other similar contractual
rights of  stockholders,  a  sufficient  number of its  authorized  but unissued
shares of its Common Stock to cover the Shares  which may be issued  pursuant to
the terms of this Agreement.

            SECTION 2. Agreement to Purchase the Shares.

            2.1 Schedule 2.1 attached hereto defines ten (10) tranches of Shares
that the Purchaser has agreed to purchase from the Company  (each,  a "Tranche")
and, with respect to each Tranche,  sets forth the number of Shares constituting
such Tranche  (the  "Tranche  Shares") and the purchase  price per share for the
Tranche Shares in such Tranche (the "Tranche Purchase Price").

            2.2 The  Company  may,  in its  sole  discretion,  elect to sell the
Tranche  Shares of any  Tranche to the  Purchaser  at any time after the date on
which the  Registration  Statement  (as  defined in Section  7.1) of the Company
covering the Shares is declared  effective  (the  "Effective  Date");  provided,
however,  (i) the Company must elect to sell all of the Tranche Shares  included
in a Tranche if it elects to sell any of the Tranche Shares in such Tranche; and
(ii) the  Company  must elect to sell the  Tranche  Shares in the order that the
Tranches  are listed on Schedule  2.1.  The  Company  may elect to sell  Tranche
Shares  included  in more than one  Tranche  at the same  time.  To  effect  its
election  to sell  Shares,  the Company  must give  written  notice  thereof (an
"Election  Notice") to the  Purchaser.  The Election  Notice  shall  specify the
Tranche or  Tranches  with  respect to which the  election is being made and the
date on which the closing of the sale and  purchase of the Tranche  Shares shall
occur; provided, such date shall be a business day and shall not be earlier than
five days  after the date such  Election  Notice is given to the  Purchaser.  An
Election Notice shall be irrevocable except as provided in Section 3.5.

<PAGE>

            SECTION 3. Closing of the Purchase of the Shares.

            3.1  Subject  to  the  satisfaction  or  waiver  of  the  conditions
precedent  set forth in  Sections  3.2 and 3.3,  the  closing of a  purchase  of
Tranche Shares by the Purchaser  pursuant to this Agreement  (each, a "Closing")
shall occur at 10:00 a.m. on the date specified in the Election Notice delivered
by the Company with respect to such  Tranche  Shares  unless the Company and the
Purchaser have mutually  agreed on a different time or date with respect to such
Closing (the time and date of the Closing of a particular Tranche is referred to
herein as the "Tranche  Closing Date").  Unless  otherwise agreed by the Company
and the  Purchaser,  each  Closing  shall occur at the  offices of SBI,  Newport
Beach, California.

            3.2 The obligation of the Purchaser to purchase  Tranche Shares at a
Closing shall be subject to the satisfaction of the following conditions, or the
waiver  of such  conditions  by the  Purchaser,  at or prior  to the  applicable
Tranche Closing Date:

            (a) the  representations  and warranties of the Company set forth in
Section 4 of this  Agreement  shall be true and correct  with the same force and
effect as though  expressly made on and as of such Tranche Closing Date,  except
for   representations   or  warranties  made  as  of  a  particular  date  which
representations and warranties shall be true and correct as of such date;

            (b)  the  Company  shall  have  complied  with  all  the  agreements
hereunder  and  satisfied  all the  conditions  on its part to be  performed  or
satisfied hereunder at or prior to such Tranche Closing Date;

            (c) the Company shall have  delivered to the Purchaser a certificate
executed by the  Chairman of the Board or President  and the chief  financial or
accounting officer of the Company, dated the applicable Tranche Closing Date, to
the effect that the conditions in clauses (a) and (b) have been satisfied;

            (d) the  Registration  Statement shall have been declared  effective
and shall not have been withdrawn, no stop order suspending the effectiveness of
the  Registration  Statement  shall be in  effect,  and no  proceedings  for the
suspension of the  effectiveness of the  Registration  Statement shall have been
instituted  or  threatened  by  the  Securities  and  Exchange  Commission  (the
"Commission");

            (e) Counsel to the Company shall have delivered its legal opinion to
the Purchaser that the Tranche Shares being issued on such Tranche  Closing Date
will,  upon  issuance,  be duly  authorized,  validly  issued,  fully  paid  and
non-assessable.

            3.3 The  obligation  of the  Company  to sell  Tranche  Shares  at a
Closing shall be subject to the satisfaction of the following conditions, or the
waiver of such conditions by the Company,  at or prior to the applicable Tranche
Closing Date:

            (a) the representations and warranties of the Purchaser set forth in
Section 5 of this  Agreement  shall be true and correct  with the same force and
effect as though  expressly made on and as of such Tranche Closing Date,  except
for   representations   or  warranties  made  as  of  a  particular  date  which
representations and warranties shall be true and correct as of such date;

                                       2
<PAGE>

            (b) the  Purchaser  shall  have  complied  with  all the  agreements
hereunder  and  satisfied  all the  conditions  on its part to be  performed  or
satisfied hereunder at or prior to such Tranche Closing Date;

            (c) the Purchaser  shall have delivered to the Company a certificate
executed by a duly  authorized  officer of the  Purchaser,  dated the applicable
Tranche  Closing Date, to the effect that the  conditions in clauses (a) and (b)
have been satisfied; and

            (d) no stop order  suspending the  effectiveness of the Registration
Statement  shall be in effect,  and no  proceedings  for the  suspension  of the
effectiveness  of the  Registration  Statement  shall  have been  instituted  or
threatened by the Commission.

            3.4 At each Closing, (i) each of the Company and the Purchaser shall
deliver to the other, as applicable,  any documents  required to be delivered by
Sections 3.2 or 3.3 which have not been  delivered  prior to such Closing,  (ii)
the  Purchaser  shall  pay to the  Company,  by  wire  transfer  of  immediately
available  funds to an account  designated in writing by the Company at or prior
to the Closing,  the  applicable  Tranche  Purchase Price for the Tranche Shares
being  purchased  at the  Closing,  and (iii) the Company  shall  deliver to the
Purchaser a stock certificate representing the Tranche Shares being purchased or
shall cause the Tranche Shares being purchased to be electronically  transferred
to the Purchaser.

            3.5 If a Closing does not occur on a proposed  Tranche  Closing Date
because the  conditions  specified in Sections 3.3 and 3.4 were not satisfied at
the time of the applicable  proposed  Tranche  Closing Date, the Election Notice
with  respect to the  Tranche or Tranches  proposed to be sold on such  proposed
Tranche Closing Date shall  automatically be revoked;  provided,  however,  such
revocation  shall not impair the right of the Company to give  another  Election
Notice with respect to the Tranche or Tranches  covered by the revoked  Election
Notice or to compel the  Purchaser  to purchase any Tranche  Shares  included in
such  Tranche or  Tranches on a  subsequent  Tranche  Closing  Date on which the
conditions specified in Section 3.2 are satisfied.

            SECTION  4.  Representations  and  Warranties  of the  Company.  The
Company hereby represents and warrants to the Purchaser as follows:

            4.1  Organization  and  Qualification.  The Company is a corporation
duly  organized,  validly  existing and in good  standing  under the laws of its
jurisdiction of  incorporation  and the Company is qualified to do business as a
foreign  corporation in each  jurisdiction in which  qualification  is required,
except  where  the  failure  to so  qualify  would  not  individually  or in the
aggregate have a material adverse effect on the financial condition,  results of
operations, properties or business of the Company taken as a whole.

            4.2 Subsidiaries.  As of the date hereof,  the Company does not have
any  subsidiaries  other  than  LTR  Antisense  Technology,  Inc.,  a  New  York
corporation,  and MRIC Drug Delivery Systems,  LLC, a New York limited liability
company.  As used in this Section 4, the term "the  Company"  shall include such
subsidiaries.

                                       3
<PAGE>

            4.3  Authorized  and  Outstanding  Capital  Stock.  The  Company has
authorized  the  issuance  of  120,000,000  shares  of  Common  Stock,  of which
approximately  74,400,000  shares are issued and  outstanding  as of the date of
this  Agreement.  The  Company's  stock option plan provides for the granting of
options to the Company's  employees,  directors,  consultants  and advisors,  to
purchase an aggregate of up to 13,000,000 shares of Common Stock, of which as of
the date of this Agreement, options to purchase an aggregate of 8,137,355 shares
of Common Stock were outstanding.  In addition, the Company has granted warrants
to purchase an aggregate  of 1,565,182  shares of Common Stock as of the date of
this  Agreement.  Except  for  shares  of Common  Stock,  options  and  warrants
described in this  Section 4.3 and certain  rights of Biomed  Solutions,  LLC to
convert a debt owed to it by the Company, as of the date of this Agreement there
are no authorized or outstanding options, warrants, preemptive rights, rights of
first  refusal or other rights to purchase  any capital  stock of the Company or
any equity or debt  securities  convertible  into or exchangeable or exercisable
for capital stock of the Company.

            4.4 Issuance,  Sale and Delivery of the Shares. The Shares have been
duly authorized and, when issued, delivered and paid for in the manner set forth
in this  Agreement,  will be duly  authorized,  validly  issued,  fully paid and
nonassessable. No preemptive rights or other rights to subscribe for or purchase
exist  with  respect  to the  issuance  and sale of the  Shares  by the  Company
pursuant to this Agreement. No further approval or authority of the stockholders
or the Board of  Directors  of the Company will be required for the issuance and
sale of the Shares to be sold by the Company as contemplated herein

            4.5 Due Execution,  Delivery and Performance of the Agreements.  The
Company has full legal right,  corporate  power and authority to enter into this
Agreement and to perform the transactions  contemplated  hereby.  This Agreement
has been duly authorized,  executed and delivered by the Company. The execution,
delivery and  performance of this Agreement by the Company and the  consummation
of the transactions  herein  contemplated  will not violate any provision of the
organizational  documents  of the Company and will not result in the creation of
any lien,  charge,  security interest or encumbrance upon any assets or property
of the Company  pursuant  to the terms or  provisions  of, or will not  conflict
with,  result in the breach or violation of, or constitute,  either by itself or
upon  notice or the  passage  of time or both,  a default  under any  agreement,
mortgage, deed of trust, lease, franchise,  license,  indenture, permit or other
instrument to which the Company is a party or by which the Company or any of its
assets  or  properties   may  be  bound  or  affected  or  any  statute  or  any
authorization,  judgment,  decree, order, rule or regulation of any court or any
regulatory body,  administrative agency or other governmental body applicable to
the Company or any of its properties.  No consent,  approval,  authorization  or
other  order of any  court,  regulatory  body,  administrative  agency  or other
governmental  body is required for the  execution,  delivery and  performance of
this  Agreement  or  the   consummation  by  the  Company  of  the  transactions
contemplated  hereby,  except for compliance  with the Blue Sky laws and federal
securities  laws  applicable  to the offering of the Shares.  Assuming the valid
execution  hereof by the Purchaser,  this  Agreement will  constitute the legal,
valid and binding obligation of the Company,  enforceable in accordance with its
terms,  except  as  enforceability  may be  limited  by  applicable  bankruptcy,
insolvency,  reorganization,  moratorium  or similar laws  affecting  creditors'
rights  generally  and  except  as  enforceability  may be  subject  to  general
principles of equity (regardless of whether such enforceability is considered in
a proceeding in equity or at law) and except as the  indemnification  agreements
of the Company in Section 7.3 hereof may be legally unenforceable.

                                       4
<PAGE>

            4.6 No Actions. There are no legal or governmental actions, suits or
proceedings  pending or, to the  Company's  knowledge,  threatened  to which the
Company is or may be a party which seeks to prevent or restrain the transactions
contemplated  by  this  Agreement  or to  recover  damages  as a  result  of the
consummation of such transactions.

            4.7 Investment Company.  The Company is not an "investment  company"
or an "affiliated  person" of, or "promoter" or "principal  underwriter"  for an
investment company, within the meaning of the Investment Company Act of 1940, as
amended.

            4.8 Conflicting  Registration  Rights. No stockholder of the Company
has any right  (which has not been  waived or has not expired by reason of lapse
of time following  notification of the Company's intent to file the Registration
Statement)  to request or require the Company to register the sale of any shares
owned by such  stockholder  under the  Securities  Act of 1933,  as amended (the
"Securities Act"), on the Registration Statement.

            4.9  Brokers.  There is no  broker,  finder or other  party  that is
entitled to receive from the Company any  brokerage or finder's fee or other fee
or commission as a result of any transactions contemplated by this Agreement.

            4.10 Books and  Records.  The books,  records  and  accounts  of the
Company  accurately and fairly reflect,  in reasonable  detail, the transactions
in, and  dispositions  of, the assets of, and the results of operations  of, the
Company, all to the extent required by generally accepted accounting principles.
The Company  maintains a system of internal  accounting  controls  sufficient to
provide  reasonable  assurances that (i) transactions are executed in accordance
with  management's  general or specific  authorizations,  (ii)  transactions are
recorded  as  necessary  to  permit  preparation  of  financial   statements  in
accordance with generally accepted  accounting  principles and to maintain asset
accountability,  (iii) access to assets is  permitted  only in  accordance  with
management's   general  or  specific   authorization   and  (iv)  the   recorded
accountability  for assets is compared  with the existing  assets at  reasonable
intervals and appropriate action is taken with respect to any differences.

            4.11  Sole   Representations   and   Warranties.   Except   for  the
representations and warranties contained in this Section 4, the Company makes no
representation or warranty to the Purchaser,  express or implied,  in connection
with the transactions contemplated by this Agreement.

            SECTION  5.   Representations,   Warranties  and  Covenants  of  the
Purchaser. The Purchaser represents and warrants to the Company as follows:

            5.1 Organization and Qualification.  The Purchaser is a company duly
organized,  validly  existing  and  in  good  standing  under  the  laws  of its
jurisdiction of incorporation.

                                       5
<PAGE>

            5.2 Due Execution,  Delivery and Performance of the Agreements.  The
Purchaser has full legal right, power and authority to enter into this Agreement
and to perform the  transactions  contemplated  hereby.  This Agreement has been
duly  authorized,  executed  and  delivered  by the  Purchaser.  The  execution,
delivery and performance of this Agreement by the Purchaser and the consummation
of the transactions  herein  contemplated  will not violate any provision of the
organizational documents of the Purchaser and will not result in the creation of
any lien,  charge,  security interest or encumbrance upon any assets or property
of the Purchaser  pursuant to the terms or  provisions  of, or will not conflict
with,  result in the breach or violation of, or constitute,  either by itself or
upon  notice or the  passage  of time or both,  a default  under any  agreement,
mortgage, deed of trust, lease, franchise,  license,  indenture, permit or other
instrument to which the Purchaser is a party or by which the Purchaser or any of
its  assets  or  properties  may be  bound or  affected  or any  statute  or any
authorization,  judgment,  decree, order, rule or regulation of any court or any
regulatory body,  administrative agency or other governmental body applicable to
the Purchaser or any of its properties. No consent,  approval,  authorization or
other  order of any  court,  regulatory  body,  administrative  agency  or other
governmental  body is required for the  execution,  delivery and  performance of
this  Agreement  or the  consummation  by  the  Purchaser  of  the  transactions
contemplated  hereby.  Assuming the valid execution hereof by the Company,  this
Agreement  will  constitute  the  legal,  valid and  binding  obligation  of the
Purchaser,  enforceable in accordance with its terms,  except as  enforceability
may be limited by applicable bankruptcy, insolvency, reorganization,  moratorium
or  similar  laws   affecting   creditors'   rights   generally  and  except  as
enforceability  may be subject to general  principles of equity  (regardless  of
whether such  enforceability  is considered in a proceeding in equity or at law)
and except as the  indemnification  agreements  of the  Purchaser in Section 7.3
hereof may be legally unenforceable.

            5.3 No Actions. There are no legal or governmental actions, suits or
proceedings  pending or, to the Purchaser's  knowledge,  threatened to which the
Purchaser  is or  may  be a  party  which  seeks  to  prevent  or  restrain  the
transactions contemplated by this Agreement or to recover damages as a result of
the  consummation  of such  transactions.  The Purchaser has not been and is not
currently  the  subject of an  investigation  or inquiry by the  Securities  and
Exchange Commission, the NASD, or any state securities commission.

            5.4  Nature  of   Purchaser.   The   Purchaser   is   knowledgeable,
sophisticated  and  experienced in making,  and is qualified to make,  decisions
with respect to investments in shares  representing an investment  decision like
that involved in the purchase of the Shares, including investments in securities
issued by the Company.  The  Purchaser is an  "accredited  investor"  within the
meaning of Rule 501(a) of Regulation D promulgated  under the Securities Act and
would be considered a large, institutional accredited investor. The Purchaser is
not a  "dealer"  within  the  meaning of the  Securities  Act or a  "broker"  or
"dealer"  within the meaning of the Securities  Exchange Act of 1934, as amended
(the "Exchange Act"). The Purchaser is able to bear the economic risk of loss of
the Purchaser's entire investment in the Shares.

            5.5 Access to  Information.  The Purchaser has requested,  received,
reviewed and considered all  information it deems relevant in making an informed
decision to purchase the Shares.  The Purchaser  understands that the Company is
still in the development stage and does not have operating revenues.

                                       6
<PAGE>

            5.5 Investment  Intent. The Purchaser is acquiring the Shares in the
ordinary  course of its business and for its own account for investment only and
with no present  intention of  distributing  any of such Shares or entering into
any  arrangement  or   understanding   with  any  other  person   regarding  the
distribution  of such Shares (it being  understood  that the foregoing  does not
limit  the  Purchaser's  right  to  sell  Shares  pursuant  to the  Registration
Statement).

            5.6   Sole   Representations   and   Warranties.   Except   for  the
representations and warranties  contained in this Section 5, the Purchaser makes
no representation or warranty to the Company,  express or implied, in connection
with the transactions contemplated by this Agreement.

            SECTION 6. Survival of  Representations,  Warranties and Agreements.
Notwithstanding  any  investigation  made by any  party to this  Agreement,  all
covenants,  agreements,  representations  and warranties made by the Company and
the Purchaser  herein and in the  certificates  delivered  pursuant hereto shall
survive the  execution of this  Agreement,  the delivery to the Purchaser of the
Shares being purchased and the payment therefor.

            SECTION 7. Covenants.

            7.1 Registration Procedures and Expenses.

            (a) As soon as  practicable,  but in any  event  no  later  than one
hundred  twenty (120) days  following  the date of this  Agreement,  the Company
shall prepare and file with the Commission a registration statement on Form SB-2
or  other  applicable  form as  determined  by the  Company  (the  "Registration
Statement")  for the  purpose  of  registering  the  sale of the  Shares  by the
Purchaser  from time to time on the  facilities  of any  securities  exchange or
trading   system   on   which   the   Common   Stock  is  then   traded   or  in
privately-negotiated  transactions,  which Registration  Statement shall contain
all material non-public  information  disclosed to the Purchasers by the Company
in  connection  with the issuance  and sale of the Shares.  For purposes of this
Section 7.1, the term "Shares" shall include any other securities of the Company
issued in exchange for the Shares,  as a dividend on the Shares or in connection
with a stock split or other reorganization transaction affecting the Shares. The
Company shall use its commercially  reasonable efforts to cause the Registration
Statement to become effective as soon as practicable.

            (b) The  Company  shall  prepare and file with the  Commission  such
amendments  and  supplements  to the  Registration  Statement and the prospectus
forming a part thereof as may be necessary  to keep the  Registration  Statement
effective  until the  earliest  date,  after the date on which all of the Shares
have  been  purchased  pursuant  to  this  Agreement  or the  obligation  of the
Purchaser to purchase the Shares pursuant to this Agreement has been terminated,
on which (i) all the Shares have been  disposed of pursuant to the  Registration
Statement,  (ii) all of the Shares then held by the  Purchaser may be sold under
the provisions of Rule 144 without limitation as to volume,  whether pursuant to
Rule 144(k) or otherwise,  or (iii) the Company has  determined  that all Shares
then held by the Purchaser may be sold without  restriction under the Securities
Act and has removed any stop transfer  instructions  relating to such Shares and
offered to cause to be removed any restrictive  legends on the certificates,  if
any  representing  such Shares (the period  between the  Effective  Date and the
earliest of such dates is referred to herein as the "Registration  Period").  At
any time after the end of the Registration  Period, the Company may withdraw the
Registration  Statement and its obligations under this Section 7 (other than its
obligations under Section 7.3) shall automatically terminate.

                                       7
<PAGE>

            (c) The  Purchaser  agrees  to  comply  with all  federal  and state
securities  laws  and  the  rules  and  regulations  promulgated  thereunder  in
connection  with  any sale by it of the  Shares,  whether  or not  such  sale is
pursuant  to the  Registration  Statement.  In  connection  with the sale of any
Shares  pursuant  to  the  Registration  Statement,  but  without  limiting  the
generality of the foregoing  sentence,  the Purchaser  shall (i) comply with the
provisions of Regulation M promulgated  under the Exchange Act, and (ii) deliver
to the  purchaser of Shares the  prospectus  forming a part of the  Registration
Statement and all relevant  supplements  thereto which have been provided by the
Company to the Purchaser on or prior to the applicable delivery date.

            (d) The  Company  shall  not be  obligated  to  prepare  and  file a
post-effective  amendment or  supplement  to the  Registration  Statement or the
prospectus  constituting  a part thereof  during the  continuance  of a Blackout
Event. A "Blackout Event" means any of the following:  (a) the possession by the
Company  of  material   information  that  is  not  ripe  for  disclosure  in  a
registration  statement or prospectus,  as determined in good faith by the Chief
Executive Officer or the Board of Directors of the Company or that disclosure of
such information in the Registration Statement or the prospectus  constituting a
part thereof would be detrimental to the business and affairs of the Company; or
(b) any material  engagement or activity by the Company which would, in the good
faith  determination of the Chief Executive Officer or the Board of Directors of
the Company, be adversely affected by disclosure in a registration  statement or
prospectus at such time.

            (e) At least two (2) days prior to the filing with the Commission of
the Registration  Statement (or any amendment thereto) or the prospectus forming
a part thereof (or any  supplement  thereto),  the Company  shall  provide draft
copies  thereof to the  Purchaser  and shall  consider  incorporating  into such
documents  such  comments as the  Purchaser  (and its counsel) may propose to be
incorporated therein.  Notwithstanding the foregoing,  no prospectus supplement,
the form of  which  has  previously  been  provided  to the  Purchaser,  need be
delivered in draft form to the Purchaser.

            (f) The  Company  shall  promptly  notify  the  Purchaser  upon  the
occurrence  of  any of the  following  events  in  respect  of the  Registration
Statement or the prospectus  forming a part thereof:  (i) receipt of any request
for  additional  information  from the  Commission or any other federal or state
governmental  authority  during the Registration  Period,  the response to which
would require any  amendments or supplements  to the  Registration  Statement or
related prospectus;  (ii) the issuance by the Commission or any other federal or
state  governmental  authority of any stop order suspending the effectiveness of
the  Registration  Statement  or the  initiation  of any  proceedings  for  that
purpose;  or (iii) receipt of any notification with respect to the suspension of
the qualification or exemption from  qualification of any of the Shares for sale
in any  jurisdiction or the initiation or threatening of any proceeding for such
purpose.

                                       8
<PAGE>

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

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

            (i) With a view to making available to the Purchaser the benefits of
Rule 144, the Company agrees,  throughout the Registration Period and so long as
the Purchaser owns Shares purchased pursuant to this Agreement, to:

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

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

            (j) The Company shall bear all expenses incurred by it in connection
with the  procedures in  paragraphs  (a) through (i) of this Section 7.1 and the
registration of the Shares pursuant to the Registration  Statement.  The Company
shall  not  be  responsible  for  any  expenses  incurred  by the  Purchaser  in
connection with its sale of the Shares or its participation in the procedures in
paragraphs  (a) through (i) of this Section 7.1 including,  without  limitation,
any fees and  expenses  of counsel or other  advisers to the  Purchaser  and any
underwriting   discounts,   brokerage  fees  and  commissions  incurred  by  the
Purchaser.

            7.2 Covenants of the Purchaser.

            (a) The Purchaser  acknowledges  and understands that the Shares are
"restricted  securities" as defined in Rule 144. The Purchaser hereby agrees not
to offer or sell (as such terms are defined in the  Securities Act and the rules
and regulations  promulgated thereunder) any Shares unless such offer or sale is
made  (a)  pursuant  to an  effective  registration  of  the  Shares  under  the
Securities Act, or (b) pursuant to an available  exemption from the registration
requirements of the Securities Act. The Purchaser agrees that it will not engage
in hedging  transactions with regard to the Shares other than in compliance with
the  Securities  Act. A proposed  transfer  shall be deemed to comply  with this
Section 7.2(a) if the Purchaser  delivers to the Company a legal opinion in form
and substance  satisfactory  to the Purchaser from counsel  satisfactory  to the
Purchaser to the effect that such transfer complies with this Section 7.2(a).

                                       9
<PAGE>

            (b) If at any time or from time to time  after the  Effective  Date,
the Company notifies the Purchaser in writing that the Registration Statement or
the prospectus  forming a part thereof (taking into account any prior amendments
or  supplements  thereto)  contains any untrue  statement of a material  fact or
omits to state a material  fact  necessary to make the  statements  therein,  in
light of the  circumstances  under  which  they are made,  not  misleading,  the
Purchaser shall not offer or sell any Shares or engage in any other  transaction
involving or relating to the Shares (other than purchases of Shares  pursuant to
this  Agreement),  from the time of the  giving of notice  with  respect to such
untrue  statement or omission until the Purchaser  receives  written notice from
the Company that such untrue  statement or omission no longer exists or has been
corrected  or  disclosed  in  an  effective   post-effective  amendment  to  the
Registration  Statement  or a  valid  prospectus  supplement  to the  prospectus
forming a part thereof.

            (c) In  connection  with  the  sale of any  Shares  pursuant  to the
Registration Statement, the Purchaser shall deliver to the purchaser thereof the
prospectus  forming  a part  of the  Registration  Statement  and  all  relevant
supplements  thereto which have been provided by the Company to the Purchaser on
or  prior  to  the  applicable   delivery  date,  all  in  accordance  with  the
requirements  of the  Securities Act and the rules and  regulations  promulgated
thereunder and any applicable blue sky laws.

            (d) The Company may refuse to register (or permit its transfer agent
to register) any transfer of any Shares not made in accordance with this Section
7.2 and for such  purpose may place stop order  instructions  with its  transfer
agent with respect to the Shares.

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

            7.3 Indemnification. For the purpose of this Section 7.3:

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

            (ii)  the term  "Registration  Statement"  shall  include  any final
                  prospectus,  exhibit,  supplement or amendment  included in or
                  relating to the Registration  Statement referred to in Section
                  7.1.

                                       10
<PAGE>

            (a) The Company  agrees to indemnify and hold harmless the Purchaser
and each Purchaser Affiliate,  against any losses, claims, damages,  liabilities
or  expenses,  joint or  several,  to which  such  Purchaser  or such  Purchaser
Affiliate may become subject, under the Securities Act, the Exchange Act, or any
other  federal  or  state  statutory  law or  regulation,  or at  common  law or
otherwise  (including  in settlement of any  litigation,  if such  settlement is
effected  with the  written  consent of the  Company),  insofar as such  losses,
claims,  damages,  liabilities  or expenses  (or  actions in respect  thereof as
contemplated  below) arise out of or are based upon (i) any untrue  statement or
alleged  untrue  statement of any material  fact  contained in the  Registration
Statement, as amended as of the Effective Date, including any information deemed
to be a part thereof as of the time of  effectiveness  pursuant to paragraph (b)
of Rule 430A, or pursuant to Rule 434  promulgated  under the Securities Act, or
the  prospectus,  in the form first filed with the  Commission  pursuant to Rule
424(b) of the Regulations, or filed as part of the Registration Statement at the
time of effectiveness  if no Rule 424(b) filing is required (the  "Prospectus"),
or any amendment or supplement thereto, (ii) the omission or alleged omission to
state in the  Registration  Statement as of the  Effective  Date a material fact
required  to be  stated  therein  or  necessary  to make the  statements  in the
Registration Statement or any post-effective amendment or supplement thereto, or
in the Prospectus or any amendment or supplement  thereto,  not  misleading,  in
each case in the light of the circumstances under which the statements contained
therein were made, or (iii) any inaccuracy in the representations and warranties
of the Company  contained  in this  Agreement,  or any failure of the Company to
perform its  obligations  hereunder,  and will  reimburse the Purchaser and each
such Purchaser Affiliate for any legal and other expenses as such expenses which
are  reasonably  incurred  by the  Purchaser  or  such  Purchaser  Affiliate  in
connection with investigating,  defending, settling,  compromising or paying any
such loss, claim, damage, liability,  expense or action; provided, however, that
the  Company  will not be liable in any such  case to the  extent  that any such
loss, claim, damage,  liability or expense arises out of or is based upon (i) an
untrue  statement or alleged  untrue  statement or omission or alleged  omission
made  in  the  Registration  Statement,  the  Prospectus  or  any  amendment  or
supplement  thereto in reliance upon and in conformity with written  information
furnished to the Company by the Purchaser expressly for use therein, or (ii) the
failure of the Purchaser to comply with the covenants and  agreements  contained
in Section 7.2 hereof respecting the sale of the Shares, or (iii) the inaccuracy
of any  representations  made by the  Purchaser  herein or (iv) any statement or
omission in any  Prospectus  that is corrected  or  disclosed in any  subsequent
Prospectus  that was delivered to the Purchaser  prior to the pertinent  sale or
sales by the Purchaser.

            (b) The Purchaser will indemnify and hold harmless the Company, each
of its directors, each of its officers who signed the Registration Statement and
each  person,  if any,  who  controls  the  Company  within  the  meaning of the
Securities  Act and the  Exchange  Act,  against  any losses,  claims,  damages,
liabilities or expenses to which the Company, each of its directors, each of its
officers who signed the Registration  Statement or controlling person may become
subject,  under the  Securities  Act, the Exchange  Act, or any other federal or
state statutory law or regulation,  or at common law or otherwise  (including in
settlement of any  litigation,  if such  settlement is effected with the written
consent of such Purchaser) insofar as such losses, claims, damages,  liabilities
or expenses (or actions in respect thereof as  contemplated  below) arise out of
or are based upon (i) any failure to comply with the  covenants  and  agreements
contained  in Section 7.2 hereof  respecting  the sale of the  Shares,  (ii) the
inaccuracy of any representation  made by the Purchaser herein, or (iii) any (x)
untrue or  alleged  untrue  statement  of any  material  fact  contained  in the
Registration Statement, the Prospectus,  or any amendment or supplement thereto,
or (y) omission or alleged omission to state in the Registration Statement,  the
Prospectus or any amendment or supplement thereto a material fact required to be
stated therein or necessary to make the statements in the Registration Statement
or any amendment or supplement thereto, or in the Prospectus or any amendment or
supplement  thereto,  not  misleading,   in  each  case  in  the  light  of  the
circumstances  under  which  they  were  made;  provided,  that the  Purchaser's
indemnification  obligation  under this clause  (iii) shall apply to the extent,
and only to the extent,  that such untrue  statement or alleged untrue statement
or omission or alleged  omission  was made in the  Registration  Statement,  the
Prospectus,  or any  amendment or  supplement  thereto,  in reliance upon and in
conformity  with written  information  furnished to the Company by the Purchaser
expressly  for  use  therein,  and  will  reimburse  the  Company,  each  of its
directors,  each of its  officers  who  signed  the  Registration  Statement  or
controlling  person for any legal and other expense  reasonably  incurred by the
Company, each of its directors, each of its officers who signed the Registration
Statement or controlling  person in connection  with  investigating,  defending,
settling,  compromising  or paying  any such  loss,  claim,  damage,  liability,
expense or action.

                                       11
<PAGE>

            (c)  Promptly  after  receipt  by an  indemnified  party  under this
Section  7.3 of  notice  of the  threat  or  commencement  of any  action,  such
indemnified  party will, if a claim in respect  thereof is to be made against an
indemnifying  party under this Section  7.3,  promptly  notify the  indemnifying
party in writing thereof;  provided,  the omission so to notify the indemnifying
party  will  not  relieve  it  from  any  liability  which  it may  have  to any
indemnified  party for  contribution  (except as provided in  paragraph  (d)) or
otherwise than under the indemnity agreement contained in this Section 7.3 or to
the extent it is not  prejudiced as a result of such  failure.  In case any such
action is brought against any indemnified party and such indemnified party seeks
or intends to seek indemnity from an indemnifying  party, the indemnifying party
will be entitled to participate in, and, to the extent that it may wish, jointly
with all other indemnifying  parties similarly  notified,  to assume the defense
thereof with counsel  reasonably  satisfactory to such indemnified  party.  Upon
receipt of notice from the indemnifying  party to such indemnified  party of its
election so to assume the defense of such action and approval by the indemnified
party of counsel,  the indemnifying party will not be liable to such indemnified
party  under  this  Section  7.3 for any  legal or other  expenses  subsequently
incurred by such indemnified party in connection with the defense thereof unless
the indemnified party shall not have employed counsel reasonably satisfactory to
the  indemnified  party to represent the  indemnified  party within a reasonable
time after notice of commencement  of action,  in which case the reasonable fees
and expenses of counsel shall be at the expense of the indemnifying party.

            (d) If the  indemnification  provided  for in  this  Section  7.3 is
required  by its  terms  but is for  any  reason  held to be  unavailable  to or
otherwise  insufficient to hold harmless an indemnified  party under  paragraphs
(a) or (b) of this  Section  7.3 in  respect  to any  losses,  claims,  damages,
liabilities  or  expenses  referred  to herein  (subject  to the  limitation  of
paragraph  (c) of this Section 7.3),  then each  applicable  indemnifying  party
shall  contribute to the amount paid or payable by such  indemnified  party as a
result of any losses,  claims,  damages,  liabilities  or  expenses  referred to
herein (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company and the Purchaser from the placement of the Common Stock
contemplated by this Agreement or (ii) if the allocation  provided by clause (i)
above is not permitted by applicable  law, in such  proportion as is appropriate
to reflect not only the  relative  benefits  referred to in clause (i) above but
the  relative  fault of the Company and the  Purchaser  in  connection  with the
statements or omissions or inaccuracies in the representations and warranties in
this Agreement  that resulted in such losses,  claims,  damages,  liabilities or
expenses, as well as any other relevant equitable  considerations.  The relative
benefits  received by the Company on the one hand and the Purchaser on the other
shall be deemed to be in the same proportion as the amount paid by the Purchaser
to the  Company  pursuant  to this  Agreement  for the Shares  purchased  by the
Purchaser  that were sold pursuant to the  Registration  Statement  bears to the
difference  (the  "Difference")  between the amount such  Purchaser paid for the
Shares that were sold  pursuant  to the  Registration  Statement  and the amount
received by such  Purchaser from such sale. The relative fault of the Company on
the one hand and the Purchaser on the other shall be determined by reference to,
among other things,  whether the untrue or alleged  statement of a material fact
or the omission or alleged  omission to state a material fact or the  inaccurate
or the alleged inaccurate  representation and/or warranty relates to information
supplied by the Company or by the  Purchaser and the parties'  relative  intent,
knowledge,  access to  information  and  opportunity  to correct or prevent such
statement,  omission or  inaccuracy.  The amount paid or payable by a party as a
result of the losses,  claims,  damages,  liabilities  and expenses  referred to
above  shall be deemed  to  include,  subject  to the  limitations  set forth in
paragraph  (c) of this  Section  7.3,  any  legal  or  other  fees  or  expenses
reasonably  incurred by such party in connection with investigating or defending
any action or claim.  The  provisions set forth in paragraph (c) of this Section
7.3 with  respect to the notice of the threat or  commencement  of any threat or
action  shall  apply  if a  claim  for  contribution  is to be made  under  this
paragraph (d);  provided,  however,  that no additional notice shall be required
with  respect  to any threat or action  for which  notice  has been given  under
paragraph (c) for purposes of  indemnification.  The Company and each  Purchaser
agree that it would not be just and equitable if  contribution  pursuant to this
Section 7.3 were determined solely by pro rata allocation or by any other method
of  allocation  which  does not take  account  of the  equitable  considerations
referred to in this  paragraph.  Notwithstanding  the provisions of this Section
7.3, the Purchaser  shall not be required to contribute  any amount in excess of
the amount by which the  Difference  exceeds the amount of any damages that such
Purchaser has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation  (within the meaning of Section 11(f) of the  Securities  Act)
shall be  entitled  to  contribution  from any person who was not guilty of such
fraudulent misrepresentation.

                                       12
<PAGE>

            7.4 Information Available.  So long as the Registration Statement is
effective  covering the resale of Shares then still owned by the Purchaser,  the
Company will furnish to the Purchaser:

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

                                       13
<PAGE>

            (b) upon the written request of the Purchaser, all exhibits excluded
by the parenthetical to subparagraph (a)(v) of this Section 7.4.

            SECTION  8.  Notices.  All  notices,  requests,  consents  and other
communications  hereunder  shall be in writing,  shall be mailed by  first-class
registered or certified airmail,  confirmed  facsimile or nationally  recognized
overnight  express  courier postage  prepaid,  and shall be deemed given when so
mailed and shall be delivered as addressed as follows:

            (a) if to the Company, to:

                       Biophan Technologies, Inc.
                       150 Lucius Gordon Drive
                       Suite 215
                       West Henrietta, New York 14586
                       Phone:  585.214.2441
                       Facsimile:       585.427.9049
                       Attn:  Michael L. Weiner

                or to such  other  person at such other  place as the  Company
                shall designate to the Purchaser in writing; and

            (b) if to the  Purchaser,  at its  address as set forth  above or at
such other  address or  addresses  as may have been  furnished to the Company in
writing.

            SECTION 9.  Assignment.  Neither party hereto may assign or delegate
any of such  party's  rights or  obligations  under or in  connection  with this
Agreement,  and  any  attempted  assignment  or  delegation  of such  rights  or
obligations  shall be void.  Except as  expressly  provided  in Section 7.3 with
respect  to  Purchaser  Affiliates,  directors  and  controlling  persons of the
Company and officers of the Company who signed the  Registration  Statement,  no
person,  including  without  limitation  any person who  purchases  or otherwise
acquires or receives any Shares from the  Purchaser,  is an intended third party
beneficiary of this  Agreement,  and no party to this  Agreement  shall have any
obligation arising under this Agreement to any person other than the other party
hereto  and,  to  the  extent  expressly  provided  in  Section  7.3,  Purchaser
Affiliates, directors and controlling persons of the Company and officers of the
Company who signed the Registration Statement.

            SECTION 10.  Changes.  This Agreement may not be modified or amended
except  pursuant  to an  instrument  in writing  signed by the  Company  and the
Purchaser.

            SECTION 11.  Headings.  The headings of the various sections of this
Agreement have been inserted for  convenience of reference only and shall not be
deemed to be part of this Agreement.

                                       14
<PAGE>

            SECTION 12.  Severability.  In case any provision  contained in this
Agreement  should be  invalid,  illegal or  unenforceable  in any  respect,  the
validity,  legality and  enforceability  of the remaining  provisions  contained
herein shall not in any way be affected or impaired thereby.

            SECTION 13.  Governing Law. This Agreement  shall be governed by and
construed in accordance with the laws of the State of New York without regard to
its  conflicts  of law  principles  and the federal law of the United  States of
America.

            SECTION 14.  Counterparts.  This Agreement may be executed in two or
more counterparts, each of which shall constitute an original, but all of which,
when taken  together,  shall  constitute  but one  instrument,  and shall become
effective  when one or more  counterparts  have been signed by each party hereto
and delivered to the other parties.

                                       15
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be  executed  by their duly  authorized  representatives  as of the day and year
first above written.

            Biophan Technologies, Inc.

            By:
                --------------------------------
            Name:   Michael L. Weiner
            Title:  Chief Executive Officer

            SBI Brightline XI, LLC

            By:
                --------------------------------
            Name:   Shelly Singhal
            Title:  Managing Member

                                       16
<PAGE>

                                                                    SCHEDULE 2.1

                                TRANCHES

                      Number of Tranche Shares      Tranche Purchase Price per
     Tranche No.         Included in Tranche       Tranche Share (U.S. Dollars)
     -----------         -------------------       ----------------------------
          1                   1,000,000             $    2.00
          2                   1,000,000             $    2.00
          3                   1,000,000             $    2.00
          4                   1,000,000             $    2.50
          5                   1,000,000             $    3.00
          6                   1,000,000             $    3.25
          7                   1,000,000             $    3.25
          8                   1,000,000             $    4.00
          9                   1,000,000             $    4.00
         10                   1,000,000             $    4.00

        Total                10,000,000            Average: $3.00

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]