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| 1.1 | The      term "TECHNOLOGY" related to hyperthermia and ablation cancer therapy      products as used in this Agreement, shall mean any confidential or      proprietary technical information, know-how, trade secrets, written      documentation, machine readable documentation, detailed drawings, data,      methods, processes, specifications, quality and inspections standards,      sales literature, advertising and marketing materials, reports and      training materials. |
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| 1.2 | The      term "PRODUCTS" as used in this Agreement, shall mean all products, and      by-products produced by or resulting from the use of any portion of the      TECHNOLOGY. The term "PRODUCTS" shall specifically include all models of      the PRODUCTS. |
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| 2.1 | Subject      to the other terms and conditions set forth herein, MANUFACTURER hereby      grants to DISTRIBUTOR the right to sell, and otherwise to commercialize      the Hyperthermia PRODUCTS for sales in Russia as well as all European      Countries (with the exception of Poland) (all hereinafter referred to as      "TERRITORY"). DISTRIBUTOR agrees that it will not make sales of these      products except in the TERRITORY unless prior authorization is granted on      specific projects in writing fromMANUFACTURER. |
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| 2.2 | Subject      to the other terms and conditions set forth herein, MANUFACTURER hereby      grants to DISTRIBUTOR the right to sell, and otherwise to commercialize      its Tumor Ablation PRODUCTS for sales in Germany, Switzerland and Austria.      DISTRIBUTOR agrees that it will not make sales of this product except in      the TERRITORY unless prior authorization is granted on specific projects      in writing from MANUFACTURER. |
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| 3.1 | DISTRIBUTOR      covenants that it will in good faith commit itself to a thorough,      vigorous, and diligent program of exploiting the PRODUCTS hereof in      accordance with the best business customs of the industry, exerting its      best efforts, so that full utilization of the PRODUCTS will result. This      shall include exposure of PRODUCTS to hospitals, medical clinics,      individual medical practitioners, and appropriate medical equipment      subdealers, outlets and markets throughout the country(s) in section      2. |
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| 3.2 | DISTRIBUTOR      further agrees to commit to annual sales projections established in      writing by mutual agreement by the two parties. In the event that      DISTRIBUTOR does not, at any future date, fulfill its projected sales or      shows lack of progress to that end, MANUFACTURER shall have the right, at      its option to terminate this Agreement pursuant to section 6. Failure to      reach agreement on sales projections may also be cause for      termination. |
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| 3.3 | DISTRIBUTOR      further agrees to provide technical service and support for the PRODUCTS      sold in the TERRITORY. To this end, DISTRIBUTOR will comply with the      training requirements outlined in section 12 and further agrees to order      and keep in stock sufficient spare parts to be able to service equipment      in a timely manner. Failure to provide this support and/or comply with the      training requirements shall be cause for  termination. |
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| 3.4 | DISTRIBUTOR      further agrees to obtain, at its expense all necessary and relevant      government approvals and permission to market, sell and operate the      PRODUCT in the TERRITORY.  Failure to obtain these approvals      shall be cause for termination. |
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| 4.1 | Current      pricing as of this contract to the DISTRIBUTOR shall be per quotation from      MANUFACTURER or via published price lists from MANUFACTURER. DISTRIBUTOR      shall receive 25% discount off list prices at time of purchase order. See      attachment for current MANUFACTURER list  pricing. |
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| 4.3 | DISTRIBUTOR      shall purchase all spare and replacement parts directly from      MANUFACTURER |
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| 5.1 | DISTRIBUTOR      agrees that all purchase orders for PRODUCTS shall be purchased with a 50%      payment at time of placement of purchase order and 50% payment at time of      shipment of product, according to the terms set forth in MANUFACTURER's      quotation as agreed by both parties unless other terms or conditions are      agreed upon in writing by DISTRIBUTOR and MANUFACTURER prior to new orders      being placed. Spare parts orders shall be payable net 45 days after      shipment. |
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| 5.2 | All      moneys payable hereunder shall be paid in United States Dollars at such      locations in the United States of America as MANUFACTURER may from time to      time designate; unless, any payments due and payable in the United States      is not at that time permitted by law or by reason of the decision of any      competent authority in the country involved, then, in such event,      DISTRIBUTOR shall discharge its obligation for payment in such other      currency and at such place as may be permitted and agreed to by      MANUFACTURER. |
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| 6.1 | With      respect to the DISTRIBUTOR and rights granted hereby, this Agreement shall      commence upon the executing hereof and, unless terminated earlier, shall      continue year to year with automatic 12 (twelve) month extensions if all      conditions of this Agreement have been met, subject to new sales      projections which will serve as minimum purchase volume targeted amounts      (as mutually agreed) as described in Subparagraph 3.1 and    3.2. |
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| 6.2 | If      any payment to MANUFACTURER is in arrears for thirty (30) days after the      due date, or if DISTRIBUTOR fails to achieve minimum sales performance or      defaults in performing any of the other terms of this Agreement, and      continues in default for a period of fifteen (15) days after written      notification as provided herein, or if DISTRIBUTOR becomes insolvent or      files for bankruptcy or enters into an agreement with creditors, or if a      receiver is appointed for it, MANUFACTURER shall have the right to      terminate this Agreement upon giving a fifteen (15) day notice to      DISTRIBUTOR. |
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| 6.3 | As      a course of normal business, the MANUFACTURER has reasonable expectations      in regards to performance, communications, promotions, etc. If, at any      time during this agreement, the DISTRIBUTOR fails to meet these      expectations, the MANUFACTURER shall promptly notify the DISTRIBUTOR in      writing. Failure by the DISTRIBUTOR to remedy the situation within 30 days      to the satisfaction of the MANUFACTURER shall be sufficient grounds for      immediate termination of thisagreement. |
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| 6.4 | Subsequent      to the termination of this Agreement as provided for in Subsection 6.1 –      6.3, DISTRIBUTOR agrees that it will not engage in the use, sale or other      commercialization or in any other manner for its own benefit or any      person, firm, corporation, association, or other entity of the TECHNOLOGY      for a period of five (5) years and that it will not sell the PRODUCTS or      competitive products during that period. This excludes any PRODUCTS that      the DISTRIBUTOR currently manufactures, or subsequent developments of this      technology that is not derived from technology offered by the      MANUFACTURER. DISTRIBUTOR agrees that it will not use its knowledge of the      MANUFACTURER'S systems to build or develop competing products that use      phased-array technology to treat deep tumors or any other software or      hardware technology utilized by the MANUFACTURER of which the DISTRIBUTOR      becomes aware because of its activities associated with this agreement. At      the termination of this agreement, any items remaining in stock may be      returned to the MANUFACTURER at a mutually agreed upon    price. |
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| 6.4 | Upon      termination of this Agreement for any reason, nothing herein shall be      construed to release either party of any obligation that matured prior to      the effective date of such termination, and any unpaid payments under this      Agreement shall become immediately due and  payable. |
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| 6.5 | Notwithstanding      the above, DISTRIBUTOR shall have no obligation to purchase the minimum      purchase requirements herein for any period after the day of notification      of termination by DISTRIBUTOR or notification of default by MANUFACTURER,      unless such default is remedied as contained herein. DISTRIBUTOR shall not      be liable to purchase any units beyond those already ordered and paid for      in the event of termination ordefault. |
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| 7.1 | Should      MANUFACTURER or DISTRIBUTOR become aware of any infringement or alleged      infringement in the country in paragraph 2, that party shall immediately      notify the other party in writing of the name and address of the alleged      infringer, the alleged acts of infringement, and any available evidence of      infringement. MANUFACTURER and DISTRIBUTOR agree to work jointly (on a      best efforts basis) to prevent any infringement and defend the patent or      any additional patent MANUFACTURER may apply for in the future upon which      the TECHNOLOGY is based. The intent of this paragraph is that DISTRIBUTOR      shall defend the patent or patents applied for in the future in the      country in paragraph 2. |
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| 7.2 | DISTRIBUTOR      and MANUFACTURER hereby agree to cooperate with each other in the      prosecution of any legal infringement action or settlement discussions      undertaken pursuant to this section and that each will provide the other      with all pertinent data and evidence of which it may have the knowledge or      which may be in its possession and which may be helpful in the prosecution      of such action. |
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| 7.3 | If,      at any time during the term of this Agreement, MANUFACTURER or DISTRIBUTOR      shall be unable to uphold the validity of any patents against any alleged      infringer, DISTRIBUTOR shall not have a damage claim or a claim for refund      or reimbursement againstMANUFACTURER. |
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| 8.1 | DISTRIBUTOR      shall be solely responsible for the payment and discharge of      any taxes, duties, or withholdings relating to any transaction of      DISTRIBUTOR in connection with the sale, or lease of the PRODUCTS in its      TERRITORY. In the event that MANUFACTURER is assessed any tax, duty, or      other governmental withholding by the Chinese government with respect to      any payment under this DISTRIBUTOR Agreement, DISTRIBUTOR shall pay such      tax, duty, or other governmental withholding on behalf of MANUFACTURER or      reimburse MANUFACTURER for any such tax, duty, or withholding it shall      make. |
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| 8.2 | DISTRIBUTOR      shall, at its own expense, be responsible for applying for and obtaining      any approvals, authorizations, or validations relative to this Agreement      under the laws of the country in paragraph 2 or otherwise, including      authorization for the remittances hereunder from the appropriate      governmental authorities. |
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| 8.3 | DISTRIBUTOR      shall be responsible for all product liability, and product warranty for      any PRODUCTS sold by DISTRIBUTOR under this Agreement and shall carry      whatever insurance is necessary to provide such liability or warranty      protection. |
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| 9.1 | This      Agreement shall not constitute the designation of either party as the      representative or agent of the other, nor shall either party by this      Agreement have the right or authority to make any promise, guarantee,      warranty, or representation, or to assume, create, or incur any liability      or other obligation of any kind, express or implied, against or in the      name of, or on behalf of, theother. |
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| 10.1 | DISTRIBUTOR      shall not have the right to assign or otherwise transfer this Agreement      and the rights of distributorship granted hereby and the rights acquired      by DISTRIBUTOR hereunder, without the prior, written consent of      MANUFACTURER (such consent will not be unreasonably withheld). If such      written consent is given, such assignment or transfer shall not be deemed      effective unless such assignee or transferee has agreed in writing to be      bound by the terms and provisions of this Agreement. DISTRIBUTOR shall      have the right to utilize third parties to market and acquire sales,      including but not limited to appointing local sub distributors. These      third parties are also subject to the terms and limitations of the      agreement. |
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| 10.2 | Upon      termination of this agreement DISTRIBUTOR shall assign all rights to any      import licenses it holds for the MANUFACTURER'S PRODUCTS to the      MANUFACTURER. |
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| 10.3 | MANUFACTURER      shall have the right to assign its right herein, including rights to      receive payments to any third party without the prior written consent of      DISTRIBUTOR. Assignment of payments due must be in accordance with the      laws, rules and regulations ofGermany. |
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| 11.1 | All      notices, demands, and other communications under this Agreement shall be      deemed to have been duly given and delivered one (1) day after sending, if      sent by telegram, telex, or telefax, and thirty-five (35) days after      posting, if sent by registered airmail, postage prepaid to the parties at      the following locations: |
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| 11.2 | The      parties hereto may give written notice of change of address. and after      such notice has been received, any notice or request shall thereafter be      given to such party at the changedaddress. |
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| 12.1 | DISTRIBUTOR      shall send, at DISTRIBUTOR'S expense appropriate employee(s) to locations      designated by MANUFACTURER for the purpose of receiving adequate training,      specified by MANUFACTURER, to properly represent MANUFACTURER in the      TERRITORY. |
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| 13.1 | DISTRIBUTOR      agrees to purchase adequate BSD demonstration systems from MANUFACTURER,      to be mutually determined by both parties, as described by the attached      quotation and sales agreement. |
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| 14.1 | All      disputes in connection with this agreement shall be settled with good      faith negotiation. In case no settlement can be reached, the case may be      submitted to arbitration as agreed upon by both parties. This Agreement is      entered into pursuant to the laws of the State of Delaware, United States      of America, and the validity and interpretation of this Agreement shall be      governed by and in accordance with the laws of the state and country as      such law shall from time to time be in effect. If attempts at negotiation      and arbitration fail, both parties agree to the jurisdiction of the courts      of the States of Utah or Delaware and agree to be bound by their      rulings. |
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| 15.1 | In      the event there is a default under this Agreement and it becomes      reasonably necessary for any party to employ the services of an attorney,      either to enforce or terminate this Agreement, with or without      arbitration, the losing party or parties to the controversy arising out of      the default shall pay to the prevailing party or parties reasonable      attorneys fees and, in addition, such costs and expenses as are incurred      in enforcing or in terminating thisAgreement. |
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| 16.1 | DISTRIBUTOR      agrees to mark PRODUCTS, all brochures and documents describing the      PRODUCTS with all applicable United States and foreign patent numbers, in      conformity with the patent laws and practices of the respective      country. |
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| 17.1 | From      the date of shipment to the DISTRIBUTOR, MANUFACTURER warrants, for      eighteen months or twelve months from the date of installation, whichever      occurs first, all specifically covered parts of the system including labor      which is performed at BSD's facility in Salt Lake City,    Utah. |
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| 17.2 | Limitations      regarding quantity of probes and applicators as well as all other items      covered by this warranty shall be governed by MANUFACTURER'S signed      PRODUCTS quotation. |
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| 18.1 | The      parties acknowledge that from time to time they have or will be required      to disclose to each other TECHNOLOGY that is confidential, proprietary or      secret, in the furtherance of the objects and covenant of this Agreement.      The parties acknowledge that the provisions of this Agreement are      necessary to protect the confidentiality, value and secrecy      thereof. |
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| 18.2 | The      parties agree that they shall take reasonable precautions to preserve the      confidential, proprietary or secret status of any such TECHNOLOGY      disclosure. Each party shall require that its employees and agents      understand and agree in writing to treat and hold such TECHNOLOGY in      confidence consistent with the provisions herein. The parties further      agree that they shall utilize all such TECHNOLOGY solely for furthering      the objectives of this Agreement and they will not, either during or at      any time subsequent to this Agreement, otherwise use such TECHNOLOGY for      their own benefit or for the benefit of others; nor will either party      publish or otherwise disclose such TECHNOLOGY to any other individual,      firm or corporation without first obtaining written consent from the other      party to this Agreement. |
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| 18.3 | The      obligations of this section shall survive termination of this Agreement,      provided, however, that such obligations shall not apply    to: |
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| 18.4 | Within      thirty (30) days from the date of termination of this Agreement as      provided in section 6, DISTRIBUTOR shall furnish MANUFACTURER with written      notice specifying that through reasonable care and to the best of its      knowledge: |
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| 19.1 | The      DISTRIBUTOR further agrees that at no time during this Agreement or for      five (5) years immediately following the termination of this Agreement,      whether said termination is occasioned by the MANUFACTURER or the      DISTRIBUTOR or the mutual agreement of the parties, will the DISTRIBUTOR      for itself, or in behalf of any other person, persons, firm, partnership,      corporation, or company, engage in directly or indirectly, solicit or      attempt to solicit the business or patronage of any person, persons, firm,      partnership, corporation, or company for the purpose of carrying on      competitive business similar to that of the MANUFACTURER or perform such      other incidental product sales, manufacturing or business services as is      now engaged by the MANUFACTURER, nor will the said DISTRIBUTOR disclose to      any person whomsoever any of the confidential information as contained in      Section 18 used by the MANUFACTURER in or about its    business. |
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| 19.2 | The      DISTRIBUTOR shall purchase PRODUCT only from MANUFACTURER. DISTRIBUTOR      shall not purchase new or used PRODUCT or competitive products for resale      into TERRITORY from MANUFACTURER'S previous customers or distributors      outside of TERRITORY. DISTRIBUTOR shall not remanufacture used PRODUCT      taken in trade from its customers. |
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| 20.1 | The      parties hereto have read this Agreement and agree to be bound by all its      terms. The parties further agree that this Agreement shall constitute the      complete and exclusive statement of the Agreement between them and      supersedes all proposals, oral or written, and all other communications      between them relating to the TECHNOLOGY, including but not limited to; the      inventions, technology, and know-how which are the subject matter of this      Agreement. |
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| 20.2 | No      agreement changing, modifying, amending, extending, superseding,      discharging, or terminating this Agreement or any provisions hereof shall      be valid unless it is in writing and is dated and signed by duly      authorized representatives of the party or parties to be      charged. |
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| 20.3 | The      provisions of this Agreement are several, and in the event that any      provision of this Agreement shall be held to be invalid, illegal, or      unenforceable, the validity, legality, and the enforceability of the      remaining provisions shall not in any way be affected or impaired      thereby. |
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| 20.4 | Failure      of any of the parties hereto to enforce any of the provisions of this      Agreement or any rights with respect thereto or to exercise any election      provided for herein, shall in no way be considered a waiver of such      provisions, rights, or elections or in any way affect the validity of this      Agreement. No term provision hereof shall be deemed waived and no breach      excused, unless such waiver or consent shall be in writing and signed by      the party claimed to have waived or consented. The failure by any of the      parties hereto to enforce any of said provisions, rights, or elections      shall not preclude or prejudice such party from later enforcing or      exercising the same or in any other provisions, rights, or elections which      it may have under this Agreement Any consent by any party to, or waiver      of, a breach by the other, whether express or implied, shall not      constitute a consent or waiver of, or excuse for any other, different or      subsequent breach. All remedies herein conferred upon any party shall be      cumulative and no one shall be exclusive of any other remedy conferred      herein by law or equity. |
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| 20.5 | This      Agreement shall be binding not only upon the parties hereto, but also      upon, without limitation thereto, their successors, heirs, devisees,      divisions, subsidiaries, officers, directors, employees, and agents and      any and all persons or entities in private with them or having notice of      this Agreement. |
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| 20.6 | Time      is of the essence in the performance of each and every obligation and      covenant imposed by this Agreement. |
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| 20.7 | There      shall be no liability on either party on account of any loss, damage, or      delay occasioned or caused by strikes, riots, fires, insurrection, or the      elements, embargoes, failure of carriers, acts of God or of the public      enemy, compliance with any law, regulation, or other governmental order,      or any other causes beyond the control of either party, whether or not      similar to the foregoing. |
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| 20.8 | Except      as provided elsewhere in this Agreement, all of the legal, accounting, and      other miscellaneous expenses incurred in connection with this Agreement      and the performance of the various provisions of this Agreement shall be      paid by the party who incurred theexpense. |
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| 20.9   | All      covenants, agreements, representations, and warranties made herein in      writing in connection with this transaction shall survive after the      closing date.                                                                                                                    |
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|   |                                                                                                                                                                                                                                                                                          |
| 20.10  | Headings      used in this Agreement are for reference purposes only and shall not be      deemed a part of this Agreement.                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                          |
| 20.11  | This      Agreement may be executed in any number of counterparts, each of which      shall be deemed an original, all of which constitute one and the same      agreement.                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                          |
| 20.12  | This      Agreement is the entire agreement between the parties and supersedes and      shall be substituted for each and every agreement with respect to      distribution of MANUFACTURERS products, whether written, oral or otherwise      in effect between DISTRIBUTOR andMANUFACTURER. |

| BSD      Medical Corporation                                                                                  | Dr.      Sennewald/Medizintechnik GmbH                  |
|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|
| By Rick      White                                                                                       | By      Dr. Gerhard Sennewald CEO                       |
|                                                                                                          |                                                    |
| /s/      Rick White                                                                                           | /s/      Dr. Gerhard Sennewald                          |
|                                                                                                          |                                                    |
| Date     October 20,      2008          | Date     October      15, 2008 |

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