Document:

EXHIBIT 10.8.6

                         EXCLUSIVE DISTRIBUTOR AGREEMENT

This AGREEMENT is made this 20th day of November, 1996, by and between:

XXX
XXXX
XXXXXXX

CHRONIMED INC.
13911 Ridgedale Drive
Minnetonka, MN 55305, USA
(hereinafter called "DISTRIBUTOR" )

                                   WITNESSETH

WHEREAS XXX is the manufacturer of the product (hereinafter called "THE
PRODUCT"), and desires competent assistance in distribution of THE PRODUCT in
"THE TERRITORY" as described below

WHEREAS DISTRIBUTOR represents its capabilities of rendering such assistance;

NOW THEREFORE, in consideration of the cooperation of both parties, agree as
follows:

ARTICLE 1: DEFINITIONS

1-1      "THE PRODUCT" shall mean the product to be manufactured under "XXX"
         label, or under the distributor designated private label and
         exclusively supplied by XXX to DISTRIBUTOR with specifications as
         described in Exhibit A attached hereto, and made a part hereof this
         Agreement. The product would include current chemistry tests for
         glucose, and future chemistry tests including cholesterol and lactate.

         "THE TERRITORY" shall mean, and be limited to the United States of
         America, Canada, and Mexico. South America and Latin America will be
         reviewed for approval on a separate proposal.

ARTICLE 2: APPOINTMENT AND OBLIGATIONS

2-1      XXX hereby appoints DISTRIBUTOR as a sole, and exclusive distributor
         for sales of THE PRODUCT in THE TERRITORY under the terms and
         conditions of this Agreement.

<PAGE>

2-2      XXX shall not during the term of this Agreement appoint any other party
         regarding the distribution of THE PRODUCT in THE TERRITORY unless with
         the written consent of the DISTRIBUTOR.

2-3      XXX shall hereinafter during the terms of this Agreement refer all
         inquiries and business proposals relating to THE PRODUCTS from THE
         TERRITORY to DISTRIBUTOR. As soon as advised, DISTRIBUTOR shall pay
         immediate attention to the inquiries as to look for business
         establishment.

2-4      DISTRIBUTOR shall not during the term of this Agreement sell THE
         PRODUCT to areas other than THE TERRITORY, unless with the written
         consents of XXX.

2-5      DISTRIBUTOR shall do its best to promote, maintain, and increase the
         sales of THE PRODUCT in THE TERRITORY, and shall provide XXX with
         quarterly reports of update information regarding the sales of THE
         PRODUCT, user's reaction, competitor's activities, as well as other
         relevant information.

2-6      DISTRIBUTOR shall help XXX to apply for Food and Drug Administration of
         the United States (FDA) 510K registration and with obligations to
         facilitate FDA requirements during the application processes. The 510K
         application shall appear under the XXX and DISTRIBUTOR's respective
         names. XXX agrees to reimburse DISTRIBUTOR for its equal share of
         related costs associated with the FDA, 510K registration.

2-7      In the event that XXX does not wish to have the DISTRIBUTOR's name
         appear on the 510K registration, DISTRIBUTOR agrees to manage up front
         costs, and pay for expenses related to 510K submission. XXX agrees to
         reimburse DISTRIBUTOR 100% for related costs in 510K submission.

ARTICLE 3: PRICE AND PAYMENT

3-1      DISTRIBUTOR shall pay for THE PRODUCT purchased hereunder at XXX'S
         distributor prices in effect at the time of ordering.

3-2      XXX'S prices in effect at the time of this Agreement are as set forth
         in Exhibit B attached hereto and made a part hereof.

3-3      In the event of a price change, XXX shall provide DISTRIBUTOR with
         written notice of the revised prices to be effective in sixty (60) days
         from the date of which the notice was forwarded by express airmail and,
         or facsimile transmission to DISTRIBUTOR. XXX agrees that there will
         not exist a price change for at least twelve (12) months following the
         receipt of the first shipment of product from XXX which has been
         purchased for the sole purposes of resale by DISTRIBUTOR.

         Furthermore, XXX agrees that price increases will not exceed a
         percentage rate of five (5) percent during any twelve month period of
         time, and justification for this annual increase must be tied to local
         inflation rate and, or, changes in production componentry.

<PAGE>

3-4      Alternatively, XXX agrees that DISTRIBUTOR will receive a price
         decrease in the event that purchased quantities by the DISTRIBUTOR
         afford XXX with production efficiencies which provide a decrease in
         production costs. XXX and DISTRIBUTOR agree to negotiate various levels
         of volume price discount in the period of (12) months after the first
         shipment.

3-5      Unless otherwise agreed, DISTRIBUTOR shall establish an irrevocable /
         confirmed letter of credit at sight in favor of XXX payable in U.S.
         dollars in terms acceptable to XXX after first order shipment. After
         the performance of 1st order shipment, DISTRIBUTOR shall establish
         letter of credit at 30 days for subsequent orders.

3-6      In the event that DISTRIBUTOR fails to fulfill the terms of payment,
         XXX may treat such a default as a breach of this entire Agreement and
         terminate this Agreement unless DISTRIBUTOR shall in good faith proceed
         to cure such default. The DISTRIBUTOR shall not be deemed to have
         breached this agreement if non-payment is related to a failure by XXX
         to fulfill any part of "Section 4.4."

ARTICLE 4: PURCHASE AND DELIVERY

4-1      After filing the application for FDA, 510K registration the DISTRIBUTOR
         shall issue an initial purchase order for no less than XX meters and XX
         packs (50's) of electrodes. Delivery will be subject to the successful
         completion of the 510K registration. A "proforma forecast" with
         subsequent quarterly revisions, and delivery schedule for initial
         purchase, and the remainder of 1996 shall be provided when initial
         order is shipped.

4-2      DISTRIBUTOR shall submit its firm purchase order in writing sixty (60)
         days prior to desired delivery time for XXX'S confirmation and
         preparation of the shipment accordingly.

4-3      XXXshall ship the goods in accordance with the terms as specified and
         agreed in the purchase order as acknowledged by DISTRIBUTOR, and shall
         advise in writing details of shipment as soon as shipment effected.

4-4      After receipt of the PRODUCT, DISTRIBUTOR may reject or return any of
         the aforementioned PRODUCT which fails to be in salable condition, or
         which customers return due to the PRODUCT not meeting DISTRIBUTOR and,
         or, XXX'S performance standards. It is expected that the PRODUCT shall
         meet or exceed those performance standards which have been specified in
         the 510K registration with the FDA. DISTRIBUTOR will notify XXX of
         problems within 30 days of receipt that product does not meet
         standards.

         DISTRIBUTOR will send XXX notice of the lot, or serial numbers of
         rejected, or returned PRODUCT, together with an indication of the
         specified basis for rejection. Promptly after receiving any such notice
         of rejection, XXX shall cause the rejected PRODUCT to be inspected, and
         issue a return authorization number. DISTRIBUTOR shall return to XXX,
         at XXX'S expense, any properly rejected PRODUCT. XXX will respond
         within ten (10) days with a return authorization number, or with a
         written statement that details their contested position regarding the
         rejection. DISTRIBUTOR shall not be required to pay XXX for such
         rejected PRODUCT, however, agrees to accept either a replacement
         shipment or refund of the same dollar amount of rejected PRODUCT with,
         or from subsequent shipments or payments to XXX.

<PAGE>

ARTICLE 5: QUALITY AND WARRANTY

5-1      XXX shall manufacture THE PRODUCT in compliance with specifications as
         set forth in Exhibit A, or with that as may be required by DISTRIBUTOR
         and agreed upon by XXX itself, and shall warrant THE PRODUCTS are free
         from defects in workmanship and materials at the time of shipment. XXX
         warrants that operation manuals, log books and printings on kit cases
         shall be in proper English and accurately describe the correct
         operation of THE PRODUCT, subject to review by DISTRIBUTOR.

5-2      XXX shall subsequently provide four (4) years warranty unless otherwise
         specified for quality in normal operation of THE PRODUCT from that the
         date shipment is made, for which XXX shall be responsible for providing
         replacement, or repair for the defective parts and materials as
         informed by DISTRIBUTOR in writing

5-3      XXX agrees to indemnify, defend and hold harmless DISTRIBUTOR, its
         successors, subcontractors, agents, employees, officers and directors,
         from and against any and all claims, costs, demands, liabilities,
         losses, damages (including consequential damages) and expenses of
         whatever nature, including reasonable attorney's fees (collectively
         "Losses") arising out of or due to a failure of PRODUCTS manufactured
         by XXX to conform to the Specifications; provided, however, that such
         indemnification shall not apply to the extent the Losses are due to
         DISTRIBUTOR's negligence or intentional misconduct.

5-4      XXX warrants that it has all rights, title and interest in all Patents
         and trademarks relating to THE PRODUCT, and agrees to indemnify,
         defend, and hold harmless the DISTRIBUTOR, its successors, agents,
         employees, officers, and directors from, and against any and all
         claims, costs, demands, liabilities, losses, damages, (including
         consequential damages) and expenses of whatever nature, including
         reasonable attorney's fees, arising out of or in any way related to a
         claim that the technical design of the XXX Product infringes upon or
         violates the patent, trade secret or other rights of any third party.

ARTICLE 6: TRADEMARKS AND CONFIDENTIALITY

6-1      Trademarks and trade names of THE PRODUCT used by XXX shall remain the
         property of XXX.

6-2      Display of the XXX trade mark and name shall remain on all packaging
         and promotional materials used by the DISTRIBUTOR for the marketing of
         THE PRODUCT; however, DISTRIBUTOR will have the right to promote THE
         PRODUCT under a brand name which is suitable to the DISTRIBUTOR, but
         also denotes that the product is manufactured for DISTRIBUTOR by XXX.

6-3      DISTRIBUTOR and XXX'S shall treat all technical and business
         information as confidential, and shall not disclose such information to
         any third parties, or utilize as for any purpose, unless with the
         consent of XXX or DISTRIBUTOR either before or after the termination of
         this Agreement. "Confidential Information" shall mean any confidential
         information or trade secrets disclosed to the other party and
         designated confidential in writing. Items of information that are not
         written or physical, such as, but not limited to disclosed orally, by
         demonstration,

<PAGE>

         or by observation, shall be designated as confidential at the time of
         disclosure. All topics considered Confidential shall be so stamped.

6-4      The obligations imposed by Section 6-3 shall not apply with respect to
         any CONFIDENTIAL INFORMATION or part thereof which is in the public
         domain at the time of disclosure, which is known to the recipient at
         the time of disclosure, which becomes known to the recipient from a
         source other than the party disclosing the CONFIDENTIAL INFORMATION
         without breach of this Agreement by the recipient and provided that
         such source is not known by the recipient to be bound by a
         confidentiality agreement with the party disclosing the Confidential
         Information, or which is developed by the recipient independently of
         the disclosing party's CONFIDENTIAL INFORMATION.

6-5      In case of action against such confidentiality breach, DISTRIBUTOR or
         XXX shall indemnify the afflicted party from potential damage or loss
         (including reasonable attorney's fees which may arise).

ARTICLE 7: DURATION

7-1      This Agreement shall be valid for two (2) years effective from the
         execution dated herein stated before.

7-2      After the first twelve month period of distribution, the targeted
         quantities for the second twelve month period of time will be proposed
         by the DISTRIBUTOR for mutual agreement ninety (90) days before the end
         of the calendar year and acknowledged in writing by XXX.

7-3      The minimum targeted quantities of each year should be no less than the
         previous calendar year for the first three years of distribution, or in
         the event of XXX manufacturing issues which cause a PRODUCT short fall.
         After the first three years of distribution, it is understood that
         product / market maturation may prohibit additional market growth, and
         therefore, annual sales targets beginning in year four (4) do not
         necessarily need to reflect PRODUCT growth forecasts.

7-4      In the event that the DISTRIBUTOR has successfully achieved the sales
         and marketing expectations of THE PRODUCT in THE TERRITORY in
         compliance with terms and conditions of this Agreement, both parties
         agree to automatically renew this Agreement for an additional two (2)
         year period, with ninety (90) days prior written notice, and agreement
         either in the same terms or revised terms of this Agreement as both
         shall agree.

ARTICLE 8: SUPPORT

8-1      XXX will provide DISTRIBUTOR with one (1) procedure and correction at
         no charge. These testing stations will consist of the necessary
         equipment (excluding personal computers) to facilitate a quality check
         of THE PRODUCT, and monitor the performance of blood glucose sensors
         provided to DISTRIBUTOR by XXX.

<PAGE>

ARTICLE 9: TERMINATION

9-1      Both parties shall hereto have the right to terminate this Agreement by
         written notice to the other, if the other party commits or suffers any
         act of bankruptcy or insolvency; or fails in performance of this
         Agreement and does not cure any breach within ninety (90) days after
         receipt of written notice of such action by the other party.

9-2      Upon termination of this Agreement, DISTRIBUTOR shall be liable to
         settle any outstanding payment due on the date of termination, and as
         may be requested, shall immediately return at its own cost, all
         information received from XXX. However, XXX will at the request of
         DISTRIBUTOR agrees to still supply DISTRIBUTOR with the quantities of
         sensor electrodes requested by DISTRIBUTOR for one year providing that
         the DISTRIBUTOR makes a formal announcement of its discontinuation of
         this product line when termination is effected. XXX agrees to provide
         the DISTRIBUTOR with the same prices which it will supply to the new
         distributor, and the DISTRIBUTOR agrees not to lower the selling prices
         as executed during the prior year.

ARTICLE 10: ASSIGNMENT

10-1     Any right or obligation under this Agreement shall be not assignable or
         transferable by any party unless with prior written consents of the
         other party.

ARTICLE 11: FORCE MAJEURE

11-1     Neither party shall be responsible for the failure or delay in
         performance of any of its obligations hereunder due to force majeure
         such as war, insurrection, strikes, acts of God, governmental action,
         or any other contingency beyond control.

ARTICLE 12: APPLICABLE LAW

12-1     This Agreement shall be governed by and pursuant to the laws of XXX.

ARTICLE 13: OTHER CONDITIONS

13-1     This Agreement shall be effected, and interpreted with the plain
         meaning of English language.

13-2     All expressions of intention and notices of both parties shall be made
         in English in written form.

13-3     The addresses first above referred to shall be the registered addresses
         of respective offices of both parties; any change of such address shall
         be notified to the other in writing.

13-4     Any matters not sufficiently provided herein shall be subject to a
         revision by both parties in writing to be attached hereto and made a
         part hereof this Agreement.

<PAGE>

ARTICLE 14: ENTIRE AGREEMENT

This Agreement represents the entire understanding, as of the effective date
hereof, between the parties with respect to the subject matter hereof and shall
supersede all previous agreements, negotiations, understandings,
representations, statements, and writings between the parties relating thereto,
and shall be controlling over terms and conditions contained in any purchase
order, acknowledgment form or any attachment thereto or any other document
issued by the parties which are in conflict with this Agreement.

No modification, alteration, waiver, or change in any of the terms of this
Agreement shall be valid or binding upon the parties hereto unless made in
writing and duly agreed and signed by both parties hereto.

IN WITNESS WHEREOF, the parties have made this Agreement in duplicate, of which
each party shall hold one copy to be deemed as an original as of the day and
year first above written.

CHRONIMED INC.                                                         XXX

<PAGE>

                         EXCLUSIVE DISTRIBUTOR AGREEMENT
                                    ADDENDUM

This AGREEMENT ADDENDUM is made this 13"' day of June, 1997, by and between:

XXX
XXXXX
XXXXXXX

CHRONIMED INC.
13911 Ridgedale Drive
Minnetonka, MN 55305, USA
(hereinafter called "DISTRIBUTOR ")

ARTICLE 1: DEFINITIONS

"THE TERRITORY" shall mean, and be limited to the United States of America,
Canada, Mexico, South America and Latin America.

All other aspects of the EXCLUSIVE DISTRIBUTOR AGREEMENT made on the 20" day of
November, 1996, remain unchanged.

IN WITNESS WHEREOF, the parties have made this Agreement Addendum in duplicate,
of which each party shall hold one copy to be deemed as an original as of the
day and year first above written.

CHRONIMED INC.                                                         XXXEXHIBIT 10.8.7

                             MANUFACTURING AGREEMENT

         AGREEMENT, made as of this 26th day of September, 1996, between
XXXXXXXXXXXX CORPORATION, a corporation organized and existing under the laws of
the State of Delaware, United States of America ("XXX"), and CHRONIMED, INC., a
corporation with a principal place of business at 13911 Ridgedale Drive, Suite
250, Minnetonka, Minnesota 55305 ("CHRONIMED").

         WHEREAS, CHRONIMED desires XXX to manufacture these certain blood
glucose meters known as the CHRONIMED Supreme II System (including subsequent
revisions of the Supreme II System) subject to the terms and conditions set
forth herein; and

         WHEREAS, XXX is in the business of manufacturing certain blood glucose
meters; and

         NOW THEREFORE, in consideration of the foregoing premises and the
mutual covenants set forth below, the parties hereto agree as follows:

SECTIONS 1: DEFINITIONS

When used in this Agreement, the following terms will have the respective
meanings stated below:

1.1 "Product(s)" means the CHRONIMED Supreme II System (including subsequent
revisions of the Supreme II System) designed to read certain strips and
determine blood glucose levels, to be manufactured by XXX or its subcontractors
in accordance with the design developed by XXX and CHRONIMED.

1.2      "Dollar or $" means U.S. dollars, unless specifically indicated
         otherwise.

1.3      "Specifications" are attached as Amendment II

         SECTION II: MANUFACTURE SALE AND DESIGN

2.1      CHRONIMED hereby retains XXX as its exclusive manufacturer of the
         Product during the Term of this agreement. During the term of this
         Agreement and subject to the terms and conditions hereof, XXX agrees to
         manufacture and sell to CHRONIMED and CHRONIMED agrees to purchase from
         XXX, such Products as CHRONIMED may order pursuant to this Agreement.

2.2      XXX shall manufacture all Products in a good and workmanlike manner in
         accordance with the Specifications, and consistent with all applicable
         guidelines, laws, ordinances, rules, and regulations including, without
         limitation, those relating to Good Manufacturing Practices by the
         United States Food and Drug Administration (FDA). CHRONIMED shall have
         the full right to review XXX compliance with such applicable
         guidelines, laws, ordinances, rules, and regulations.

<PAGE>

2.3      XXX shall maintain records in accordance with the applicable
         guidelines, laws, rules, and regulations of the FDA relative to the
         manufacture, storage, and shipping of the Product, and any batch
         processing of the Products or Product components for a period of not
         less than two (2) years after the date of manufacture of the applicable
         Product or component

2.4      XXX shall not implement any change in the Products, components
         therefor, processes for producing Products or components, or design
         thereof without the prior written consent of CHRONIMED. In the case of
         immaterial changes or the substitution of components with equivalent or
         better performance, CHRONIMED's consent shall not be unreasonably
         withheld or delayed. In all other cases, CHRONIMED can withhold its
         consent in its sole discretion. To implement this Section, XXX shall
         inform CHRONIMED in writing of any change it desires to make involving
         the Product. CHRONIMED accept or reject such change and shall notify
         XXX of its decision within thirty (30) days of receipt of such
         notification. Failure to so inform XXX within forty-five (45) days of
         request shall constitute a default approval on behalf of CHRONIMED.

2.5      XXX shall be responsible for procuring, purchasing, and inventorying
         all such raw material, components, and spare parts and for inventorying
         Products produced therefrom, provided however that XXX shall not be
         held responsible for shortages of components from XXX vendors
         occasioned by circumstances beyond XXX control.

2.6      The design of the Product is a derivative of a design by XXX of several
         commercially available blood glucose meters not exclusive to CHRONIMED
         but proprietary to XXX. The algorithms as they relate to the look up of
         CHRONIMED standard curves are exclusive to CHRONIMED and owned by
         CHRONIMED. The case design as embodied in the Supreme II System
         (including subsequent revisions of the Supreme II System) and as
         detailed in the case drawings is owned by CHRONIMED. The tools owned by
         CHRONIMED are on the attached Appendix I. CHRONIMED shall be entitled
         to obtain the tools that it owns upon CHRONIMED's written request. In
         the event that the tools are not delivered to CHRONIMED within thirty
         (30) days of such request, CHRONIMED shall have the right to withhold
         royalties as described in Section 11.2, unless both parties agree that
         best efforts have been made to secure the tools and have been
         unsuccessful, or if both parties mutually agree that the related wear
         of the tools make the retrieval of such, financially unnecessary. The
         algorithms, the case design and any other aspects of the Supreme II
         System which are proprietary to CHRONIMED, as well as CHRONIMED's
         tooling, shall not be provided to or disclosed to any third party or
         used on behalf of any third party without the consent of CHRONIMED.

         SECTION III: PURCHASE PRICE

3.1      The purchase price for the first XXXXXX (XXX) Products will be built
         with OTP versions of the microprocessor and the purchase price will be
         XXX and XX/100 Dollars ($XXX) each. The next XXXXXX (XXX) Units
         purchased will have the purchase price of XXX and XX/100 ($XXX)
         provided that for these XXXXXX (XXX) units CHRONIMED orders at least
         XXXXXX (XXX) units per month.

<PAGE>

3.2      Provided that CHRONIMED gives orders sufficient to maintain an average
         monthly volume of at least XXXXX (XXX) Units per month, any units after
         the initial purchase of the aforementioned (Section 3.1) XXXXXX (XXX)
         units will be purchased at XXX and XX/100 Dollars ($XXX). If the Unit
         Volume is less than the XXXXXX (XXX) Units per month, then XXX and
         CHRONIMED will negotiate a price for applicable units above XXXXXXX
         (XXX) units based upon the estimated unit volume of the product to be
         manufactured. If the annual volume (using the calendar year) exceeds
         XXXXXX (XXX) Units per year, XXX and CHRONIMED will negotiate a new
         price reflecting a larger discount based upon the higher volume for
         future production forecasts and schedules.

3.3      In the event XXX and CHRONIMED are unable to reach an agreement in
         connection with any revised pricing, then the parties agree to be bound
         by arbitration as set forth in Section Twenty Two (XXII) of this
         agreement.

3.4      Notwithstanding the above, however, prices may be increased or
         decreased on a semi annual basis, based upon XXX or its subcontractors
         substantiated documentation of actual increase or decrease in
         materials, labor and overhead costs at the end of any given six months
         (6) period over the prices of the previous six months (6) period,
         provided, however, that in no event shall prices increase more than ten
         percent (10%) during any 12-month period. The parties will commence
         discussions for any such pricing increase or decrease within the thirty
         (30) day period preceding the end of the appropriate period.

SECTION IV: DELIVERY

4.1      XXX will deliver Products to a carrier on CHRONIMED's behalf, F.O.B.
         XXXXX, within thirty (30) days after the end of the month forecasted in
         CHRONIMED's relevant forecast set forth in Section VII. XXX will give
         CHRONIMED not less than twenty-four (24) hours prior notice of the date
         of each delivery of Products hereunder. XXX will also use its best
         commercially reasonable efforts to make weekly, or biweekly or monthly
         shipments of Products as requested by CHRONIMED.

4.2      XXX will, if requested by CHRONIMED, procure insurance on all shipments
         of Product to CHRONIMED and may, at its option, bill CHRONIMED
         separately or add the insurance to CHRONIMED's invoice. CHRONIMED shall
         pay all charges for shipping, freight, tariff, import duties, and
         delivery in the manner set forth in Section 6.1 a.

SECTION V: OUALITY ASSURANCE

5.1      XXX shall deliver to CHRONIMED, with each shipment of the Product,
         written certification that it has tested such shipment for Product
         compliance with Specifications and that each unit included in such
         shipment complies with such Specifications. CHRONIMED shall have thirty
         (30) calendar days from the date of receipt of each shipment of the
         Product to confirm conformity with the design and operating
         specifications. Any notice of rejection of any shipment of the Product
         or portion thereof must by given in writing and received by XXX within
         said thirty (30) day period or such shipment will be deemed to have
         been accepted.

5.3      In the event that any Product supplied is determined by or on behalf of
         CHRONIMED to fail to conform to the design per specifications in
         Amendment II, or to be in breach of the

<PAGE>

         warranty of Section 8.1, XXX agrees to provide CHRONIMED, at its
         discretion, with the following options to resolve the breach of
         warranty: non-payment for portion of shipment determined to be
         non-conforming, a credit on the next invoice for such defective
         Product, or to replace an equal amount of Product in the next shipment.

5.4      CHRONIMED agrees to comply with the disposition of Product as described
         in Section 5.3 at the advise and expense of XXX.

SECTION VI: PAYMENT

6.1      The purchase price referred to herein shall be due and payable in U.S.
         dollars to XXX within thirty (30) days after receipt of the Product
         shipment at CHRONIMED's Eden Prairie, MN distribution center. All
         amounts due past the due date shall carry interest at the rate of one
         percent (1%) per month. Failure to pay amounts due within ninety (90)
         days after the first due date shall constitute a material breach of
         this Agreement. In the event CHRONIMED fails to make any payment in
         accordance with this agreement, then CHRONIMED shall be responsible for
         all collections costs, including reasonable attorney fees.

SECTION VII: FORECASTS AND PRODUCTION TERMINATION

7.1      CHRONIMED shall provide XXX monthly with a rolling six (6) month pro
         forma forecast of its expected orders of Product for purposes of XXX
         inventory control. It is understood, and agreed to by CHRONIMED that
         subsequent monthly forecasts may change previously stated six (6) month
         forecasts. The aforementioned six month pro forma forecasts shall
         constitute a firm purchase order. All pro forma forecasts will be
         formalized sixty (60) days prior to execution date of the purchase
         order.

7.2      CHRONIMED reserves the right to cancel or stop production for any
         reason during the term of this Agreement provided CHRONIMED shall be
         responsible for the actual cost of all inventory, including components
         and sub-assemblies, fully assembled units, and for parts on order that
         cannot be terminated, unless the reason for termination of the
         Agreement is a result of the incoming quality control (IQC) production
         quality level (not field returns) being received by CHRONIMED. The IQC
         production quality control is a measure of the quality of received new
         product from XXX.

SECTION VIII: WARRANTY

8.1      XXX warrants that all Products will strictly conform to the design
         specifications, be free of defects, be in compliance with all
         applicable legal requirements and approvals, and be in good operating
         condition for a period of fifteen (15) months from the date of product
         receipt at CHRONIMED's distribution facility, and that CHRONIMED will
         receive good title thereto, free of all liens and encumbrances of any
         kind. This warranty will survive any delivery, acceptance, inspection
         or payment by CHRONIMED.

         XXX will replace defective Products or credit CHRONIMED for units which
         are defective and returned within the warranty period. In addition, XXX
         warrants that the facility and processes and other aspects of the
         manufacture of the Products now meet FDA's Good Manufacturing Practices
         (GMP) and will continue to fulfill FDA's GMP throughout the

<PAGE>

         term of this Agreement.

         SUPPLIER HEREBY DISCLAIMS ANY OTHER WARRANTIES. EXPRESS OR IMPLIED,
         WITH RESPECT TO THE QUALITY OF PRODUCT, INCLUDING WARRANTIES AS TO ITS
         MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE. XXX SHALL NOT BE
         RESPONSIBLE FOR ANY CONSEQUENTIAL DAMAGES IN CONNECTION WITH THE USE OF
         THE PRODUCTS.

SECTION IX: RISK OF LOSS

9.1      CHRONIMED will bear the risk of damage or deterioration loss of
         Products from the time Products are properly delivered by XXX into the
         possession of a carrier on CHRONIMED's behalf, F.O.B. XXX.

SECTION X: TERM AND EFFECTIVE DATE

10.1     This agreement is effective as of the date first above written and
         shall apply only to Products manufactured and shipped to CHRONIMED
         after its effective date. Unless earlier terminated in accordance with
         Section VII or XI, this Agreement will continue in effect for a term of
         three (3) years from the date hereof, and will automatically renew
         annually, unless notification of termination is provided by either side
         not less than forty-five (45) days before this Agreement would
         otherwise expire. In the event CHRONIMED terminates production in
         accordance with Section VII hereof, XXX's rights as exclusive
         manufacturer shall continue for the balance of the three (3) year term
         should CHRONIMED desire to purchase or have manufactured additional
         products.

SECTION XI: BREACH

11.1     Either party may terminate this agreement upon written notice to the
         other party if such other party fails to cure a material breach hereof
         within thirty (30) days after written notice thereof. or if said breach
         cannot be reasonably cured within thirty (30) days in which event the
         defaulting party shall have commenced to cure within such thirty (30)
         day period and shall diligently pursue such cure thereafter, the
         defaulting party shall have such additional time as me be reasonably
         required to cure such default. If CHRONIMED terminates this Agreement
         pursuant to this Section, CHRONIMED will be entitled to cancel all
         other orders for Products outstanding as of the date of termination
         upon notice to XXX provided, however, CHRONIMED shall be responsible
         for the actual cost for all inventory, components and sub-assemblies,
         fully assembled units, components and for parts on order that cannot be
         terminated unless XXX has materially breached thisAgreement by
         providing CHRONIMED with Product that does not meet IQC production
         quality level, and fails to correct or resolve production performance
         issues in an appropriate period of time as agreed upon by both parties.

11.2     In the event of a termination of this Agreement, CHRONIMED may at its
         option, manufacture or have manufactured by a third party, the Supreme
         II product or a derivative thereof. In such event, CHRONIMED agrees to
         pay XXX a royalty of XXX Dollars ($XXX) per unit for the first XXX
         years after termination, and then XXX dollars ($XXX) in the XXX year,
         XXX dollars ($XXX) in the XXX year, XXX dollars ($XXX) in the XXX year,
         XXX dollars ($XXX) in the XXX year and XXX dollars ($XXX) per unit
         royalty thereafter.

<PAGE>

         Under the conditions expressed in Section 2.6, XXX will transfer all
         tool and assembly techniques to CHRONIMED.

SECTION XII: SUPPORT

12.1     XXX will provide CHRONIMED with XX (XX) Calibrations Stations free of
         charge. These Calibrations Stations will consist of a test platform and
         conditioning electronics. CHRONIMED must supply the personal computers
         to operate the calibrators. XXX will also supply calibration equipment
         as described above to large customers of CHRONIMED when agreed upon
         between XXX and CHRONIMED.

SECTION XIII: SURVIVAL OF OBLIGATIONS

13.1     The expiration or earlier termination of this agreement will not
         operate to release either party hereto from any liability which has
         already accrued to the other party as of the date of expiration or
         termination or which may thereafter accrue in respect of an act or
         omission occurring prior to expiration or termination.

SECTION XIV: INDEMNIFICATION

14.1     CHRONIMED agrees to indemnify, defend and hold harmless XXX, its
         successors, assigns, subcontractors, agents, employees, stockholders,
         officers, directors, affiliates and subsidiary corporations
         (collectively the "Indemnified Parties") from and against any and all
         claims, costs, demands, liabilities, judgments, losses, damages
         (including consequential damages) and expenses of whatever nature,
         whether brought against XXX, CHRONIMED or both, including reasonable
         attorney's fees arising out of CHRONIMED's sale, use manufacture,
         assembly, use or application of the Product, except in the event of
         litigation against CHRONIMED concerning the Product, then XXX will
         provide to CHRONIMED expert witness testimony, documentation and such
         support, as may be reasonably within XXX's control.

         Without limiting the foregoing, CHRONIMED's indemnity shall include any
         types of actions brought, whether against XXX or CHRONIMED, including
         any product liability claims, patent or similar type infringement
         claims or for violation of any Federal, State or local law, statute or
         regulation, including those yet to be enacted, relative to the Supreme
         II product or a derivative thereof.

14.2     XXX agrees to indemnify, defend and hold harmless CHRONIMED, its
         successors, subcontractors, agents, employees, officers and directors,
         from and against any and all claims, costs, demands, liabilities,
         losses, damages (including consequential damages) and expenses of
         whatever nature, including reasonable attorney's fees {collectively
         "Losses") arising out of or due to latent defects of the Product which
         XXX knowingly manufactured for financial gain, or other reasons.

SECTION XV: FORCE MAJEURE

15.1     No party hereto will be liable to any other party for any failure or
         delay of performance or other consequence which is due to any act of
         God, act of government, war, civil disturbance or other cause beyond
         such party's reasonable control and power to remedy, or any strike or
         labor dispute or disruption of transportation, whether or not such
         party is capable of resolving the problem by the payment of money.

<PAGE>

SECTION XVI: NON-WAIVER

16.1     The waiver, express or implied, by either party of any right hereunder,
         will not constitute a waiver of any other right.

SECTION XVII: AMENDMENT

17.1     No amendment of this agreement will be effective unless reduced to a
         writing executed by the duly authorized representatives of both parties
         hereto.

SECTION XVIIL ASSIGNMENT

18.1     The rights and liabilities of the parties shall bind and inure to the
         benefit of their respective successors and assigns provided, however,
         XXX may not assign its rights or delegate its obligations hereunder
         without the prior consent of CHRONIMED (which consent shall not be
         unreasonably withheld) and any such purported assignment or delegation,
         in the absence of such consent, will be void and without effect.
         CHRONIMED agrees, however, that the assembly or manufacture of the
         Product may be performed by subcontractors of XXX provided that any
         such subcontractors must meet all GMP standards, and design
         specifications as set forth in Amendment II.

SECTION IXX: SEVERABILITY

19.1     Any provision of this agreement which is finally determined by a
         competent court or governmental agency to be prohibited or
         unenforceable in any jurisdiction will, as to such provision and
         jurisdiction only, be deemed severed to the extent of such prohibition
         and unenforceability and, subject to such severance, this agreement
         will continue in effect in accordance with its other terms and
         conditions.

SECTION XX: NOTICES

20.1     Any notice or other communications required or permitted hereunder
         shall be sufficiently given if delivered in person or sent by facsimile
         transmission or telex (promptly confirmed by registered or certified
         mail as provided herein) or by registered or certified mail, postage
         prepaid, addressed as follows:

                  If to CHRONIMED:
                  ---------------
                  13911 Ridgedale Drive
                  Suite 250
                  Minnetonka, Minnesota 55305

                  Attention: Medical Products Division - Sr. Vice President
                  Fax No.: (612) 541-4969

                  If to XXX:
                  ---------
                  XXX
                  XXXXXXXXXX
                  XXXXXXXXXXXX

<PAGE>

                  Attention: President Fax No.: XXXXXXXX

                  or such address as shall be furnished in writing by any such
                  party, and such notice or communication shall be deemed to
                  have been given as of the date so delivered, sent by facsimile
                  transmission or telex and shall be deemed to have been given
                  on the date so mailed.

SECTION XXI: GOVERNING LAW

21.1     The validity, construction and performance of this agreement will be
         governed by and interpreted in accordance with the laws of the State of
         XXXXXXXXX, United States of America (excluding its law of conflict of
         laws).

SECTION XXII: ARBITRATION

22.1     Any controversy or claim arising out of or relating to this agreement
         or any claimed breach thereof shall be settled by arbitration in
         accordance with the rules of the American Arbitration Association, and
         judgment upon the award rendered by the arbitrators may be entered by
         any court having jurisdiction thereof. The arbitration proceedings
         shall take place in the State of XXXXXXXXXXX, United States of America.

SECTION XXIII: RELATIONSHIP OF PARTIES

23.1     XXX is an independent contractor and has and shall have no power to
         bind CHRONIMED or to assume or create any obligation or responsibility,
         express or implied, on behalf of CHRONIMED or in its name. Nothing
         herein contained shall be construed as constituting, either party the
         agent, partner or co-venturer of the other party.

SECTION XXIV: ENTIRE AGREEMENT

24.1     This agreement and its Exhibits incorporates all prior oral and written
         communications between the parties with respect to the subject matter
         hereof and, as such, supersedes all such prior oral and written
         communications concerning, and constitutes the sole and exclusive
         understanding between the parties with respect to, the subject matter
         hereof, except to the extent that the First Manufacturing Agreement
         applies to Products shipped before the effective date hereof.

         IN WITNESS WHEREOF, CHRONIMED and XXX have caused this agreement to be
         executed by their duly authorized representatives as of the date first
         above written.

         XXXXXXXXXXX                            CHRONIMED INC.

                  By                             By

                  Its                            Its

                  Date                           Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00008-of-00352.parquet"}]]