Document:

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                                                                  Exhibit 10.35

                               LICENSE AGREEMENT

This License Agreement ("Agreement") is made as of the 28 day of July, 1999
(the "Effective Date") by and between Radiance Medical Systems, Inc., a
Delaware corporation ("RMS") with its principal place of business located at
13700 Alton Parkway, Irvine, California, United States, 92618 and BEBIG GmbH,
("BEBIG") with its principal place of business located at Robert-Rossle-Str.
10, 13125 Berlin, Germany.

     WHEREAS, BEBIG has developed and owns certain proprietary processes and
materials from the manufacture of medical devices for the delivery of radiation
therapy to the human body;

     WHEREAS, BEBIG is the exclusive licensee of the Hehrlein Patents (as
defined below);

     WHEREAS, RMS desires to acquire a license to such technology and a
sublicense to such patents for the development, manufacture and
commercialization of medical devices for the delivery of radiation therapy to
the human body; and

     WHEREAS, BEBIG is willing to grant such license and sublicense upon the
terms and subject to the conditions set forth herein.

     NOW THEREFORE, in consideration of the mutual promises, covenants,
representations and warranties contained in this License Agreement, the parties
agree as follows:

     1.   DEFINITIONS.

          The following capitalized terms shall have the meanings given below:

          1.1  "Affiliate" shall mean, with respect to any Person, any other
Person which controls, is controlled by, or is under common control with the
first Person. For purposes of this definition, "control" means: (a) in the case
of corporate entities, direct or indirect ownership of more than fifty percent
(50%) of the stock or shares entitled to vote for the election of directors;
and (b) in the case of non-corporate entities, direct or indirect ownership of
more than fifty percent (50%) of the equity interest with the power to direct
the management and policies of such non-corporate entities.

          1.2  "Effective Date" shall have the meaning set forth in the
Preamble to this License Agreement.

          1.3  "Field" shall mean the design, development and commercialization
of medical devices suitable for the radioactive treatment of occlusive
cardiovascular and peripheral vascular diseases.

          1.4  "Hehrlein license" shall mean that certain Patent License
Agreement between Dr. Christoph Hehrlein and BEBIG dated October 26, 1998.

          1.5  "Hehrlein Patents" shall mean all patents, pending patent
applications and improvements related to be "C. Hehrlein Balloon-Based Radiation
Delivery Devices" as more fully described on Exhibit A.
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     1.6  "Licensed Know-How" means information regarding methods and devices
for the radioactive treatment of occlusive cardiovascular and peripheral
vascular disease related to the Licensed Patents now existing or hereafter
developed which is either confidential or not known or used by others who do
not have licenses for such use, including, but not limited to, devices,
specifications, methods of use, inventions and technical, business, design,
manufacturing, bench, animal, clinical and the like information.

     1.7  "Licensed Patents" means (1) the patent rights owned or controlled or
licensed by BEBIG or its Affiliates in the patents and patent applications
identified on Exhibit A attached hereto, and the inventions covered by those
applications and patents, and foreign counterparts thereof, and (ii) any
additional patent rights BEBIG or its Affiliates now owns, controls or has
access to, or may own, control or have access to in the future which are
continuations, continuations-in-part, divisionals or refilings of the original
applications upon which the aforementioned patent rights are based, and the
inventions covered thereby, or foreign counterparts thereof, and upon any
reexaminations, reissues, renewals or extensions thereof.

     1.8  "Licensed Product" shall mean a product, that incorporates, embodies,
uses or is designed or produced using the Licensed Technology or Licensed
Know-How.

     1.9  "Licensed Technology" shall mean the Licensed Patents and the
Licensed Know-How.

     1.10 "Manufacturing Agreement" shall mean that certain facility set-up and
contract manufacturing Agreement by and between BEBIG and RMS of even date
herewith.

     1.11 "Net Sales" shall mean the amount invoiced for sales, leases or other
dispositions of Licensed Products (other than sales, leases or other
dispositions to Affiliates unless such Affiliate is the end user) less the
following deductions (to the extent they are not already reflected in the
amount billed):

          (a)  Discounts taken in amounts customary in the trade;

          (b)  Import, export, excise, sales or use taxes, tariffs and duties
directly imposed with reference to particular sales;

          (c)  Outbound transportation prepaid or allowed; and

          (d)  Amounts allowed or credited on returns, rebates or retroactive
price deductions.

          Licensed Products shall be considered "sold" when billed out or
invoiced to a third party. If a Licensed Product is incorporated into another
product or is sold in combination with other products or services and not
invoiced separately, such Licensed Product shall be included in Net Sales at
the then current list price for such quantities of such Licensed Product with
any discount from list price being applied proportionately to the discount from
list price of the product into which the Licensed Product was incorporated or
the list price of the other products sold, as the case may be. If there is no
then current list price for such Licensed Product, Net Sales will be based on
the separate value of such Licensed Product and such other products or
services, but in no event shall the

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value of such Licensed Product for such calculation be less than RMS's cost of
goods for such Licensed Product, determined in accordance with generally
accepted accounting principles.

          1.12 "Person" shall mean any person, corporation, organization, body
or other legal entity.

          1.13 "Valid Claim" means a claim of an issued patent that has not been
held or declared invalid, unpatentable or unenforceable by the relevant national
patent office or a court of competent jurisdiction, unappealable or unappealed
within the time allowed for appeal, and which has not been admitted to be
invalid or unenforceable.

     2.   LICENSE TERMS.

          2.1  License Grant to RMS. Subject to the terms and conditions of this
License Agreement, BEBIG hereby grants to RMS a worldwide, non-exclusive license
under the Licensed Technology, including a sublicense under the Hehrlein
license, to practice methods and to design, develop, manufacture, have
manufactured, import, export, use, offer to sell, sell and otherwise dispose of
License Products in the Field.

          2.2  Sublicensees. RMS shall give BEBIG notice of any sublicense
granted by RMS. RMS shall be responsible for all obligations of such
sublicensees hereunder, including without limitation their obligation to
maintain confidentiality of information and to report Net Sales and to pay
royalties on sales of Licensed Products.

          2.3  Hehrlein License Maintenance. BEBIG shall perform all of its
obligations under the Hehrlein License and use its best efforts to maintain the
Hehrlein license in full force and effect for the entire term of this Agreement,
as it may be extended. In the event that despite such best efforts, BEBIG knows
or has reason to believe that the Hehrlein License will be terminated, it shall
provide prompt notice to RMS and shall cooperate with RMS in maintaining the
Hehrlein License in effect, which cooperation may include assignment of the
Hehrlein License to RMS or the loan or other advancing of funds to BEBIG to meet
its financial or other obligations under the License.

     3.   TERM.

          3.1  Term. The initial term of this License Agreement (the "Initial
Term") shall commence as of the Effective Date, and shall continue until July 1,
2002.

          3.2  Option to Renew. Upon the expiration of the Initial Term of this
License Agreement, RMS has the option to extend this License Agreement until
the expiration of all Licensed Patents hereunder, unless earlier terminated
pursuant to Section 8 (the "Option Period"). RMS shall notify BEBIG of its
option to extend this License Agreement, pursuant to Section 10.9, no later
than July 1, 2002.

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     4.   LICENSE FEES

          4.1  Closing Fee. Within fifteen (15) days of the Effective Date of
this License Agreement, RMS shall pay to BEBIG a one time license and option
fee of [     *     ] (the "Closing Fee").

          4.2  Annual Fee. Subject to the provisions set forth in Section 4.3,
during the Initial Term of this License Agreement, RMS shall pay to BEBIG an
aggregate amount of [     *     ] payable in three annual installments (the
"Annual License Fee"). Each Annual License Fee shall be [     *     ], less any
License Fee Offset as set forth in Section 4.4. The first Annual License Fee is
payable July 1, 2000, and each subsequent Annual License Fee is payable at one
year intervals thereafter.

          4.3  Royalties. Subject to the provisions set forth in Section 4.3(b)
and 4.4, if RMS exercises its option to extend this License Agreement pursuant
to Section 3.2, the consideration payable to BEBIG during the Option Period
(the "Royalties") shall be as follows:

               (a)  Royalty Rate. RMS shall pay to BEBIG (i) a royalty of [*]
percent[*] of Net Sales of Licensed Products if the sales would infringe a Valid
Claim of the German Licensed Patent [     *     ], no matter what country the
Licensed Product is sold in (i.e., BEBIG shall be entitled to royalties on
worldwide Net Sales so long as the Licensed Product is covered by a Valid Claim
of the German Licensed Patent [     *     ]), and (ii) no royalties if such
sales would not infringe a Valid Claim of the German Licensed Patent [     *
] Such Royalties shall be subject to adjustments as set forth in Sections 4.3(b)
and 4.4 below.

               (b)  Adjustment of Royalty Rate. In the event that BEBIG
licenses or sublicenses the Licensed Technology to a third party, the Royalties
otherwise payable under Section 4.3(a) above shall be reduced by [ * ] percent
[ * ] to a royalty rate of [ * ] percent [ * ] of Net Sales of Licensed
Products.

               (c)  Payment Dates and Statements. Within ninety (90) days of
the end of each calendar quarter in which Net Sales occur, RMS shall calculate
the Royalties owed to BEBIG under this Section 4 and shall remit to BEBIG the
amount owed to BEBIG. Such payment shall be accompanied by a statement showing
the calculation of the amount owed for Licensed Products, including the Net
Sales of Licensed Products for that quarter (including the gross invoiced sales
and permissible deductions therefrom), and the exchange rate (as determined
pursuant to Section 4.6) used to directly convert any royalty amounts into U.S.
Dollars.
               (d)  Records and Accounting. RMS shall keep complete and
accurate records of the latest three (3) years of Net Sales. BEBIG shall have
the right annually at its own expense to have an independent, certified public
accountant review such records upon at least twenty (20) days' notice and
during reasonable business hours for the purpose of verifying Royalties payable
to BEBIG. Such review shall be conducted so as not to unreasonably interfere
with RMS's operations. Such accountant shall agree to appropriate
confidentiality provisions and transmit to BEBIG only the results of its review
and items necessary to show any discrepancy between RMS's reports. Results of
such review shall be made available to both parties. If the review results in a
determination of an underpayment of royalties to BEBIG, such underpayment shall
be promptly

[*] Confidential Portions Omitted and Filed Separately with the Commission.

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remitted to BEBIG with interest as provided in Section 4.5. If such review
determines that RMS' Net Sales were more than 110% of the Net Sales reported by
RMS for the period under review, RMS shall pay all of the reasonable costs of
such review.

          4.4  License Fee Offset. The Annual License Fee and the Royalties are
subject to the following offsets (each, a "License Fee Offset"):

               (a)  the Closing Fee of [*];

               (b)  all payments by RMS to BEBIG and its Affiliates, or paid by
RMS for the account of BEBIG, including, but not limited to those related to or
incurred in the performance of the Manufacturing Agreement such as {*} in
service expenses; and revenues paid to BEBIG for the production of the Licensed
Products, minus the amount expended for equipment purchases by BEBIG from RMS;

               (c)  amounts expended by RMS in the enforcement of intellectual
property rights pursuant to Section 6.3; and

               (d)  amounts expended by RMS in obtaining or maintaining its
rights to the Licensed Patents and/or Licensed Technology pursuant to Section
6.2.

     Such License Fee Offsets will be applied to either the Annual License Fee
or Royalties, whichever is then applicable, on the date the same is paid or
incurred by RMS. Each License Fee Offset is accrued and cumulative over the
period this License Agreement is in effect, and any excess License Fee Offset
not used shall be retained and used as an offset to a subsequent payment due
hereunder.

          4.5  Late Payments. Any payment owed by BEBIG under this License
Agreement that is not paid on or before the date such payment is due shall bear
interest, to the extent permitted by applicable law, at [*] percent [*] per
annum, calculated on the number of days such payment is delinquent.

          4.6  Currency of Payments. All payments under this License Agreement
shall be made U.S. Dollars by wire transfer to such bank account as BEBIG may
designate from time to time. Any payments due hereunder on Net Sales outside of
the United States shall be payable U.S. Dollars at the average rate of exchange
of the currency of the country in which the Net Sales are made as reported in
the New York edition of The Wall Street Journal for the last month of the
quarter for which the royalties are payable.

          4.7  Blocked Currency. If the law or regulation of any country shall
at any time operate to prohibit the transfer of funds therefrom to BEBIG, RMS
shall notify BEBIG to such effect and (provided that RMS shall first attempt in
good faith to follow BEBIG's instructions pursuant to the first sentence of
Section 4.6) shall have the right to pay or cause to be paid royalties
hereunder on account of its sales and the sales of its Affiliates and
sublicensees in such country by depositing local currency (if RMS is paid in
such currency) to the account of BEBIG in an interest-bearing account if
permissible at the prevailing commercial interest rate in a bank in such
country (which account and bank are reasonably acceptable to BEBIG). RMS shall
thereafter cooperate with BEBIG in

[*] Confidential Portions Omitted and Filed Separately with the Commission.

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BEBIG's efforts to obtain the lawful release of said funds to BEBIG, but shall
have no further responsibility therefor.

          4.8  Tax Withholding. If laws or regulations require the withholding
of income taxes owed by BEBIG on account of royalties accruing under this
License Agreement, such taxes shall be deducted on a country-by-country basis
by RMS from such remittable royalty and will be paid by it to the proper taxing
authority. Proof of payment shall be secured and sent to BEBIG as evidence of
such payment.

          4.9  Other Taxes. RMS shall pay all sales, use, transfer or similar
taxes, whether foreign, federal (United States), state or local, however
designated, that are levied or imposed by reason of the sale or transfer of
Licensed Products contemplated hereby, and any penalties, interest and
collection or withholding costs associated with any of the foregoing items,
excluding, however, taxes accruing to BEBIG under applicable law.

     5.   TRANSFER OF TECHNOLOGY.

          5.1  Transfer of Technology. Within forty-five (45) days of the
Effective Date, BEBIG will supply RMS with such information and materials in
its possession relating to the Licensed Materials which is reasonably necessary
or useful to enable RMS to develop, design, [manufacture, have manufactured],
use and sell Licensed Products in the Field. Thereafter, BEBIG shall supply
such assistance as is reasonably requested by RMS, subject to the parties
agreement regarding payment therefor.

          5.2  Periodic Review; Consultation. During the development and
manufacture of Licensed Products, the parties shall consult regularly with one
another and keep each other generally informed of progress. Each party shall
designate an authorized representative (and "Authorized Representative") who
shall oversee the day-to-day operation of the rights and obligations of each
such party under this Agreement. Either party may change its Authorized
Representative by giving the other party written notice of its new
representative in the manner provided herein. The Authorized Representatives
shall meet at least once per calendar year to review progress on the
development of Licensed Products. Such meetings will take place at a mutually
agreeable time and place and may be attended by other employees or consultants
of the parties.

     6.   INTELLECTUAL PROPERTY.

          6.1  Ownership of Intellectual Property. Except to the extent
licenses or rights are granted herein, BEBIG retains the entire right, title
and interest in and to the Licensed Technology, RMS and BEBIG shall each own,
and have the right to apply for patents with respect to any inventions made
solely by its respective employees. RMS and BEBIG shall jointly own any
inventions made jointly by employees of both parties. In such event, the parties
shall cooperate to obtain patent protection on such joint inventions as they may
reasonably determine and shall share equally the costs thereof (provided
however, that if BEBIG's interest in such joint invention is included in the
Licensed Technology and licensed to RMS hereunder, BEBIG shall pay all the
costs of obtaining patent protection). In the event one party does not wish to
obtain such patent protection of a joint invention, the other party may seek
such patent protection in its own name only, with all rights in such joint
invention being assigned to such party.

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          6.2  Patent Prosecution. BEBIG shall file, prosecute and maintain the
Licensed Patents. BEBIG shall periodically confer with RMS regarding its
planned patent activities, and shall reasonably consider RMS' requests with
respect thereto. In the event BEBIG determines not to file, prosecute or
maintain any Licensed Patent in any jurisdiction or jurisdictions, BEBIG shall
notify RMS of such determination at least ninety (90) days prior to any
applicable deadline. If BEBIG makes such determination, RMS may elect to file,
prosecute or maintain any such Licensed Patent in such jurisdiction at its own
expense, and BEBIG shall provide reasonable assistance. In such event, RMS may
deduct from amounts payable to BEBIG hereunder, as a License Fee Offset, its
expenses in filing, prosecuting and maintaining such Licensed Patents.

          6.3  Enforcement of Intellectual Property Rights. In the case of any
infringement of any Licensed Patents or other violation of any intellectual
property rights contained in the Licensed Technology by any third party during
the term of this License Agreement, BEBIG shall have the right, at BEBIG's
expense, to cause such party to cease such infringement and to otherwise
enforce such Licensed Patent or such other intellectual property rights. RMS
shall assist BEBIG as reasonably requested in taking any such actions against
any such infringer. Should BEBIG fail to take action within sixty (60) days
after having been notified of any alleged infringement or violation, and
provided that such infringement has occurred in the Field, RMS may, upon notice
to BEBIG, take any steps RMS may deem appropriate against such infringer at
RMS' own expense. BEBIG shall assist RMS as reasonably requested in taking any
such action against any such infringer. Any amount recovered as a result of any
action taken by BEBIG or RMS hereunder shall be first applied to reimbursing the
party taking such action for its out-of-pocket expenses, and then to
reimbursing the other party for its out-of-pocket expenses, if any. In the event
that RMS does not recover its expenses, any amount not recovered shall be
considered as a License Fee Offset as against amounts payable to BEBIG under
this License Agreement pursuant to Section 4.4.

          6.4  Invalidity or Non-Infringement Action. In the event that a
declaratory judgment action alleging invalidity or non-infringement of any of
the Licensed Patents shall be brought against either party, and in such event
BEBIG does not elect to defend against such action, BEBIG shall notify RMS and
RMS, at its option, shall have the right, within thirty (30) days after such
notice from BEBIG, to intervene and take over the defense of the action at its
own expense; provided that RMS shall consult with BEBIG on material aspects of
such litigation and provided further that RMS shall select counsel to which
BEBIG has no reasonable objection. No settlement, consent judgment or other
voluntary final disposition of the suit may be entered into without the consent
of BEBIG, which consent shall not be unreasonably withheld or delayed.

          6.5  Abandonment of Suit. Should BEBIG or RMS commence or defend a
suit under the foregoing provisions and thereafter elect to abandon the same,
the abandoning party shall give timely written notice to the other party and
such other party may continue prosecution of such suit, with the expenses and
recovery being allocated as set forth in Section 6.3.

          6.6  Alleged Infringement. If, during the term of this License
Agreement, any third party (other than an Affiliate of a party) claims that
RMS' making, using or selling of Licensed Products hereunder infringes on a
third-party patent, or other proprietary rights of a third party as a result of
the use of the Licensed Patents and/or the Licensed Technology, within one
hundred and twenty (120) days after notice by RMS, BEBIG shall either (i)
procure for RMS the right to exercise all rights licensed under this License
Agreement without any additional payment therefor by RMS.

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or (ii) advise RMS that it elects not to procure such rights itself. If BEBIG
does not procure such right within such 120-day period after notice of such
claim by RMS, RMS shall have the right, but not the obligation, to procure such
rights itself. RMS shall be entitled to offset any expenses or costs it incurs
in obtaining or maintaining such rights as an License Fee Offset as against
amounts payable to BEBIG under this License Agreement pursuant to Section 4.4.

          6.7  Cooperation. In the event of any action against or by a third
party, the party not bringing or defending such suit shall cooperate in all
respects, execute any documents reasonably necessary to permit the other party
to prosecute or defend such suit, and to the extent reasonable shall make
available its employees and relevant records to provide evidence for such suit.

          6.8  Intellectual Property Representations and Warranties. BEBIG
represents, warrants and covenants to RMS, as of the Effective Date, as follows:

               (a)  It is the sole and exclusive owner of the entire right,
title and interest in the Licensed Patents and Licensed Technology (subject to
the [ * ]), with the right to license the same to RMS, free and clear of all
encumbrances, liens, claims, licenses and security interests of any kind and has
not exclusively licensed the same to any third party.

               (b)  It is the sole and exclusive license of the [ * ] Patents
under the [ * ], such license is in full force and effect and neither BEBIG or
[ * ] is in breach thereof, and a true copy of such license has been delivered
to RMS.

               (c)  There are no actions, suits or proceedings pending or, to
BEBIG's knowledge, threatened against BEBIG or any of its Affiliates, at law or
in equity before any court or administrative office or agency which affect the
use of the Licensed Patents or the Licensed Technology by RMS hereunder.

               (d)  Each of the patents in the Licensed Patents is valid and in
good standing and each of the patent applications included in the Licensed
Patents is currently pending and in good standing, and has not been abandoned.

               (e)  To BEBIG's knowledge, the practice by RMS of the Licensed
Technology, and the activities of BEBIG under the Development and Manufacturing
Agreement, will not violate the patent or other proprietary rights of any third
party.

     7.   CONFIDENTIAL INFORMATION

          7.1  Confidentiality. RMS and BEBIG realize that some information
received by one party from the other pursuant to this License Agreement will be
confidential. It is therefore agreed that any information received by one party
from the other which is in writing or promptly reduced to writing shall not be
disclosed by the receiving party to any third party and shall not be used by
the receiving party for purposes other than those contemplated by this License
Agreement for a period of three (3) years from and after the date such
information is disclosed. The receiving party shall use the same degree of care
with respect to such information that it uses with respect to its own
information which it intends to maintain proprietary and confidential. Except
as expressly granted herein, nothing in this License Agreement shall be
construed to grant either party any license or other right to the confidential
information or proprietary information (including but not limited to

[*] Confidential Portions Omitted and Filed Separately with the Commission.

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patents, patent applications, know-how, trade secrets and copyrighted works of
the other party. However, nothing in this License Agreement shall prevent the
receiving party from exercising any legal rights to use, disclose, duplicate,
or publish any such information:

          (a)  which was in the public domain at the time of the disclosure to
the receiving party, or which thereafter fell into the public domain without
any fault of the receiving party;

          (b)  which the receiving party rightfully had in its possession prior
to the disclosure as evidenced in writing;

          (c)  which the receiving party lawfully obtained without restriction
from a third party who is not under any confidentiality obligations to the
disclosing party;

          (d)  which, in the case of an oral disclosure, shall not have been
subsequently disclosed in writing to the receiving party within thirty (30)
days after such oral disclosure;

          (e)  which is developed by the receiving party independently of such
disclosure; or

          (f)  which is inherently or necessarily disclosed to the public by
the display or commercial sale of any product or system, by the issuance of a
related patent or in compliance with the lawful requirements of the Department
of Health and Human Services of the United States.

     7.2  Confidentiality Agreements. Each party shall maintain agreements with
their respective employees and representatives providing for confidentiality
and non-use commitments consistent with its obligations hereunder and will
require all of their employees, consultants, clinical collaborators, agents or
others who have access to any such confidential information of the other party
to execute confidentiality and non-use agreements covering such confidential
information subject to Section 6 and will exercise its reasonable best efforts
to obtain compliance therewith.

     7.3  No Disclosure Without Consent Or Legal Requirement. Neither party
shall release any information to any third party with respect to the terms or
existence of this License Agreement without the prior written consent of the
other party (which consent shall not be unreasonably withheld). This prohibition
includes, but is not limited to, press releases, educational and scientific
conferences, promotional materials, and disclosures to (or disclosures with)
the media. It is understood, however that the parties shall have the right to
provide required information concerning this License Agreement to investors and
potential investors, and to Affiliates in order to enable them to carry out the
activities contemplated hereunder. In addition, each party may, in its
reasonable judgment, disclose such information as may be required by law. Each
party agrees to notify the other party of its intention to disclose such
information to a third party (but not the identity of the third party). Neither
party shall use the name of the other party in any publication or promotional
material or in any form for public distribution without the prior written
consent of the other party.

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     8.   TERMINATION.

          8.1  Default and Effects Thereof. Upon any failure of either party to
comply with its obligations under the License Agreement in any material respect
which shall continue for more than sixty (60) days after notice thereof from
the non-defaulting party to the defaulting party, the non-defaulting party
shall be entitled, without prejudice to any of its other rights under this
License Agreement, and in addition to any other remedies available to it by law
or in equity, to terminate this License Agreement by giving notice to that
effect to the defaulting party. The right of either party to effect such
termination of such license shall not be affected in any way by its waiver or
failure to take action with respect to any previous default with respect to this
License Agreement.

          8.2  Insolvency or Bankruptcy. Either party may, in addition to any
other remedies available to it by law or in equity, terminate this License
Agreement by written notice to the other party in the event (i) the other party
shall have become insolvent or bankrupt, or shall have made an assignment for
the benefit of its creditors, or (ii) there shall have been appointed a trustee
or receiver of the other party or for all or a substantial part of its
property, or (iii) any case or proceeding shall have been commenced or some
other action taken by or against the other party in bankruptcy or seeking
reorganization, liquidation, dissolution, winding-up, arrangement, composition
or readjustment of its debts or any other relief under any bankruptcy,
insolvency, reorganization or other similar act of law of any jurisdiction now
or hereafter in effect or there shall have been issued a warrant of attachment,
execution, distraint or similar process against any substantial part of the
property of the other party, and any such event or action shall have continued
for ninety (90) days undismissed, unbounded and undischarged; provided,
however, that no such right to terminate shall pertain solely by virtue of a
voluntary reorganization for the purpose of solvent amalgamenation or
reconstruction.

          8.3  Effect of Termination. Upon termination of this License Agreement
for any reason:

               (a)  Neither party shall be released from any obligation that
matured prior to the effective date of such termination.

               (b)  Each party will return and deliver to the other party all
materials and documents containing Confidential Information of the other party.

               (c)  The provisions of Sections 7 and 9 shall survive any
termination of this License Agreement or any license hereunder for a period of
three (3) years.

               (d)  In the case of expiration of this License Agreement
resulting from expiration of all Licensed Patents, RMS shall retain a
non-exclusive, fully-paid, worldwide, perpetual license to exploit the Licensed
Technology in the Field.

     9.   INDEMNIFICATION.

          9.1  Indemnification of BEBIG. RMS will indemnify and hold BEBIG
harmless against all actions, suits, claims, demands, or prosecutions
("claims") that may be brought or instituted against BEBIG arising from RMS'
exploitation of the license granted to hereunder except to

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the extent such claims from the negligence or the breach by BEBIG of its
obligations hereunder or the License, Development and Manufacturing Agreement.

               BEBIG will promptly notify RMS within a reasonable time after it
become aware of any claim, action or proceeding that may be subject to
indemnification pursuant to this Section 9.1 and will cooperate with and
authorize RMS to carry out the sole management and defense of such claim,
action or proceeding with counsel reasonably acceptable to BEBIG. BEBIG will
not compromise or settle any claim, action or proceeding subject to
indemnification without the prior written approval of RMS.

          9.2  Idemnification by RMS. BEBIG shall defend, indemnify and hold
RMS harmless from and BEBIG shall defend or settle, any claim, demand, action,
proceeding or suit against RMS, its Affiliates or sublicensees arising out of
any breach of BEBIG's covenants, representations and warranties herein.

     10.  MISCELLANEOUS PROVISIONS

          10.1  No Partnership. Nothing in this License Agreement is intended
or shall be deemed to constitute a partnership, agency, employer, employee or
joint venture relationship between the parties. Neither party shall incur any
debts or make any commitments for the other.

          10.2  Assignments. Except as otherwise provided herein, neither this
License Agreement nor any interest hereunder shall be assignable by either
party by operation of law or otherwise without the prior written consent of the
other (which shall not be unreasonably withheld), provided, however, that no
consent shall be required for any assignment of this License Agreement by
either party in connection with the transfer of substantially all of its
business to which this License Agreement relates.

          10.3  Force Majeure. Neither party shall be liable to the other for
loss or damages or shall have any right to terminate this License Agreement for
any default or delay attributable to any act of God, earthquake, flood, fire,
explosion, strike, lockout, labor dispute, casualty or accident, war,
revolution, civil commotion, act of public enemies, blockage or embargo,
injunction, law, order, proclamation, regulation, ordinance, demand or
requirement of any government or subdivision, authority (including, without
limitation, medical device regulatory authorities) or representative of any
such government if the party affected shall give prompt notice of any such
cause to the other party. The party given such notice shall thereupon be
excused from such of its obligations hereunder as it is so disabled from
performing. Notwithstanding the foregoing, nothing in this Section shall excuse
or suspend the obligation to make any payment due hereunder in the manner and
at the time provided.

          10.4  No Trademark Rights. Except as set forth above, no right,
express or implied, is granted by this License Agreement to use in any manner
any trade name or trademark of BEBIG or RMS in connection with the performance
of this License Agreement or the exploitation of any license granted hereunder.

          10.5  Public Announcements. Copies of press releases or similar
written communications containing a party's name shall be provided to that
party for approval prior to release.

                                       11
<PAGE>   12
     10.6 Entire Agreement of the Parties; Amendment. This License Agreement
constitutes and contains the entire understanding and agreement of the parties
and cancels and supersedes any and all prior negotiations, correspondence and
understandings and agreements, whether verbal or written, between the parties
respecting the subject matter hereof. No waiver, modification or amendment of
any provision of this License Agreement shall be valid or effective unless made
in writing and signed by a duly authorized officer of each of the parties.

     10.7 Severability. In the event any one or more of the provisions of this
License Agreement should for any reason be held by any court or authority having
jurisdiction over this License Agreement or either of the parties to be invalid,
illegal or unenforceable, such provision or provisions shall be validly reformed
by addition or deletion of working as appropriate to avoid such result and as
nearly as possible approximate the intent of the parties and, if unreformable,
shall be divisible and deleted in such jurisdiction; elsewhere, this License
Agreement shall not be affected.

     10.8 Captions. The captions to this License Agreement are for convenience
only, and are to be of no force or effect in construing or interpreting any of
the provisions of this License Agreement.

     10.9 Notice and Delivery. Any notice, requests, delivery, approval or
consent required or permitted to be given under this License Agreement shall be
in writing and shall be deemed to have been sufficiently given if delivered in
person, transmitted by internationally recognized courier or telecopier (with
confirmed answer-back) to the party to whom it is directed at its address shown
below or such other address as such party shall have last given by notice to the
other party.

          If to RMS, addressed to:

               Radiance Medical Systems, Inc.
               13700 Alton Parkway, Suite 160
               Irvine, California 92618
               Telephone:  001-949-457-9546
               Telecopier: 001-949-457-9561
               Attention: Chief Executive Officer

          If to BEBIG, addressed to:

               BEBIG GmbH
               Robert-Rossle-Str. 10,
               13125 Berlin, Germany
               Telephone:  011-49-30-94-10-8430
               Telecopier: 011-49-30-9410-8412
               Attention: General Manager

     10.10 LIMITATION OF LIABILITY. NEITHER PARTY SHALL BE LIABLE TO THE OTHER
FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES ARISING
OUT OF ANY OF THE TERMS OR CONDITIONS OF

                                       12
<PAGE>   13
THIS LICENSE AGREEMENT OR WITH RESPECT TO THEIR PERFORMANCE OR LACK THEREOF.

          10.11 Informal Dispute Resolution. In an effort to resolve informally
and amicably any claim, controversy, or dispute arising out of or related to the
interpretation, performance, or breach of this License Agreement (a "Dispute")
without resorting to litigation, each party shall notify the other party to the
Dispute in writing of any Dispute hereunder that requires resolution. Such
notice shall set forth the nature of the Dispute, the amount involved, if any,
and the remedy sought. Each party shall promptly designate an executive-level
employee to investigate, discuss and seek to settle the matter between them. If
the two designated representatives are unable to settle the matter within thirty
(30) days after such notification, the matter shall be submitted to BEBIG's and
RMS' Chief Executive Officer for consideration. If settlement cannot be reached
through their efforts within an additional thirty (30) days (or such longer time
period as they shall agree upon in writing) then either party may thereafter
take such actions as they deem appropriate. The parties agree that any
applicable statute of limitations shall be tolled during the pendency of such
informal dispute resolution process and that neither party shall raise or
assert any claim of laches or other legal or equitable principle of limitation
or repose of action based upon such process.

          10.12 Attorneys' Fees. Except as otherwise provided herein, each party
shall bear its own legal fees incurred in connection with the transactions
contemplated hereby, provided, however, that if any party to this License
Agreement seeks to enforce its rights under this License Agreement by legal
proceedings or otherwise, the non-prevailing party shall pay all costs and
expenses incurred by the prevailing party, including, without limitation, all
reasonable attorneys' fees.

          10.13 Governing Law, Venue. This License Agreement shall be governed
by and construed in accordance with the laws of the State of California, United
States, without regard to the conflict of laws provisions thereof, and, subject
to the informal dispute resolution in Section 10.11, all disputes with respect
to this Agreement shall be exclusively heard in the federal or state court, in
Orange County, California.

     IN WITNESS WHEREOF, the parties have caused this License Agreement to be
executed by their respective duly authorized officers as of the day and year
first set forth above, each copy of which shall for all purposes be deemed to be
an original.

                                   RADIANCE MEDICAL SYSTEMS, INC.

                                   By: /s/ MICHAEL R. HENSEN
                                       -------------------------------------
                                   Name: Michael R. Hensen
                                       -------------------------------------
                                   Title: CEO and President
                                       -------------------------------------

                                   BEBIG GmbH

                                   By: /s/ A. ECKERT
                                       -------------------------------------
                                   Name: A. Eckert
                                       -------------------------------------
                                   Title: General Manager
                                       -------------------------------------

                                       13

<PAGE>   14
                                   EXHIBIT A

BEBIG LICENSED PATENTS
----------------------

              1. German Patent # DE 19600669 C2

              2. PCT Application # WO 96/22121 41

              3. All other issued patents and patent applications
                 licensed to BEBIG dealing with "C. Hehrlein Balloon-Based
                 Radiation Delivery Devices"EXHIBIT 10(i)

                             GIVIGEST FIDUCIARIA SA

                                ONE TIME PROGRAM

                          INVESTMENT BANKING AGREEMENT

     THIS INVESTMENT BANKING AGREEMENT made this 13th day of August, 1999 by and
between:

     GIVIGEST  FIDUCIARIA  SA
     Corso  Elvezia  4,
     CH-6901  Lugano,  Switzerland
     a  Swiss  Corporation  (hereinafter  referred  to  as  "GIVIGEST"),  and;

     AIR  PACKAGING  TECHNOLOGIES,  INC.
     25260  Rye  Canyon  Road,
     Valencia,  California,  USA
     (hereinafter  referred  to  as  "COMPANY");

 collectively  GIVIGEST  and  COMPANY  hereinafter referred to as "the parties".

                                   WITNESSETH:

     WHEREAS,  GIVIGEST   is   an   investment  banking,  financial,  management
consulting  and  strategic planning firm, with expertise in the dissemination of
information  about  publicly  traded  companies,  and

     WHEREAS,  COMPANY  is  publicly held with its common stock trading Over the
Counter  (OTC)  under  the  ticker  symbol  "AIRP",

     WHEREAS,  COMPANY  desires  to  place a private placement of 7% Convertible
Debentures  to  institutional  and  accredited  investors  as  more particularly
described  in  Addendum  "B",  attached  hereto,  and

     WHEREAS,  GIVIGEST  is  willing  to  accept COMPANY as a client; and assist
COMPANY  to  place  the  above  mentioned  private  placement,

     WHEREAS,  GIVIGEST  is  a  company  under  the laws of the State of Ticino,
Country  of  Switzerland  and,  through  its  financial  and  investment banking
functions,  makes  venture  capital investments on behalf of itself and clients;
and

     THEREFORE, in consideration of the mutual covenants contained herein, it is
agreed  as  follow:

DEFINITIONS  AND  INTERPRETATIONS

1.     CAPTIONS  AND  SECTION  NUMBERS

The headings and section references in this Investment Banking Agreement are for
convenience  or  reference only and do not form a part of this agreement and are
not  intended  to interpret, define or limit the scope, extent or intent of this
Investment  Banking  Agreement  or  any  provisions  thereof.

<PAGE>

2.     EXTENDED  MEANINGS

The  words  "hereof",  "herein", "hereunder" and similar expressions used in any
clause,  paragraph or section of this agreement will relate to the whole of this
Investment  Banking Agreement and not to that clause, paragraph or section only,
unless  otherwise  expressly  provided.

3.     NUMBER  AND  GENDER

In  this  Investment  Banking  Agreement,  words  importing the masculine gender
include  the  feminine  or  neuter  gender and words in the singular include the
plural,  and  vice-versa.

4.     SECTION  REFERENCES  AND  SCHEDULES

Any  reference  to  a  particular  "article", "section", "paragraph"   or  other
subdivision  of  this  Investment  Banking  Agreement  and  any  reference  to a
schedule,  exhibit  or  addendum  by  name,  number  and/or letter will mean the
appropriate  schedule,  exhibit  or addendum attached to this Investment Banking
Agreement.

AGREEMENT

5.     APPOINTMENT

COMPANY  hereby  appoints and engages GIVIGEST, on a non-exclusive basis, as its
investment banking and financial planning counsel for Switzerland and Italy, and
hereby retains and employs GIVIGEST upon terms and conditions of this Investment
Banking  Agreement.

GIVIGEST  accepts  such  appointment and agrees to perform the services upon the
terms  and  conditions  of  said  Investment  Banking  Agreement.

6.     FIRST  ENGAGEMENT

COMPANY  engages  GIVIGEST  to  place  the  private  placement,  as described on
Addendum "B", to prospective investors as further described below and subject to
the  further  provisions  of  this  Investment  Banking  Agreement.

 GIVIGEST  hereby  accepts said engagement and COMPANY as a client and agrees to
provide  the  services  as  further  described  below and subject to the further
provisions  of  this  Investment  Banking  Agreement.

7.     AUTHORITY  AND  DESCRIPTION  OF  SERVICES

During  the  term of this Agreement, GIVIGEST shall furnish various professional
services.  Said professional services and advice shall relate to those services,
items  and/or  subjects  described in Addendum "A", which is attached hereto and
made  a  part  hereof  by  this  reference,  and/or  as  follows:

8.     TERM  OF  AGREEMENT

This  agreement  shall become effective upon execution hereof and shall continue
thereafter  through  and  including  October  15,  1999 or in case of paragraphs
10,11,12(d),12(e),17,18,23,24,26,  and  30 so long as any of the debentures that
are  to  be  offered  to  the  private  placement  are  outstanding.

<PAGE>
9.     WHERE  SERVICES  SHALL  BE  PERFORMED

GIVIGEST  services shall be performed at the main office location of GIVIGEST in
Lugano  (Switzerland),  or  other  such  designated  location(s) as GIVIGEST and
COMPANY  agree  are  the  most  advantageous  for  the  work  to  be  performed.

10.     LIMITATIONS  ON  RELEASE  OF  INFORMATION

The  parties  hereto recognize that certain responsibilities and obligations are
imposed  by  federal  and  state securities laws and by the applicable rules and
regulations  of stock exchanges, the National Association of Securities Dealers,
in  house  "due  diligence" or "compliance departments of brokerage houses, etc.
Accordingly,  GIVIGEST  agrees  as  follows:

(a)     GIVIGEST  will  NOT  release  any financial or other information or data
about  COMPANY  that  has not previously been publicly disseminated, without the
consent  and  approval  of  COMPANY.

(b)     GIVIGEST  will  NOT conduct any meetings with financial analysts without
informing  COMPANY  in  advance of any proposed meeting, the format or agenda of
such  meeting  and allowing COMPANY to elect to have a representative of COMPANY
attend  such  meeting.

11.     DUTIES  OF  COMPANY

(a)     COMPANY  shall  supply GIVIGEST, on a regular and timely basis, with all
approved data and information about COMPANY, its management, its product and its
operations;  and COMPANY shall promptly advise GIVIGEST of any facts which would
affect  the  accuracy  of  any prior data and information previously supplied to
GIVIGEST  so  that  GIVIGEST  may  take  corrective  action.

(b)     COMPANY  shall promptly supply GIVIGEST with full and complete copies of
all  filings  with  all  federal  and  state  securities agencies; with full and
complete copies of all shareholder reports and communications; with all data and
information  supplied  to  any  analyst,  broker-dealer,  market maker, or other
member  of  the  financial  community;  and with all product/services brochures,
sales  material,  etc

(3)       COMPANY  will  immediately  notify  GIVIGEST if it intends to make any
additional  private  or public offering of securities, including an S-8 or other
registered  offering,  a  Regulation S placement, or any other public or private
placement  or  distribution  of its securities and, if reasonably possible, give
GIVIGEST  a  first  right of refusal to make such offering or placement upon the
same  terms  and  conditions.

(4)       COMPANY will immediately notify GIVIGEST at least 30 days prior to any
insider  selling  of  COMPANY'S  stock, an insider being defined as any officer,
director,  or  holder  of  five  (5)  per  cent or more of COMPANY'S outstanding
securities.

(e)     In  that  GIVIGEST  shareholders, officers, employees, and/or members of
their families may hold a position in and engage in transactions with respect to
COMPANY  securities and, in light of the fact that GIVIGEST imposes restrictions
on  such  transactions  to  guard  against  trading on the basis of material non
public  information,  COMPANY  shall  contemporaneously  notify  GIVIGEST if any
information  or  data being supplied to GIVIGEST has not been generally released
or  promulgated.

(f)     COMPANY  will cause the outstanding common shares to be reverse split on
a  1  new  share  for  10 old share basis no sooner than October 15, 1999 and no
later  than  December  31,  1999.

(g)     COMPANY  will  cause  DTC  sheets to be provided to GIVIGEST on a weekly
basis  and  will  pay  all  costs  thereof.

(h)     COMPANY  will provide GIVIGEST, at no cost, a quarterly shareholder list
and,  in  addition  will  provide  a  list  anytime  the  shareholdings  of  any
shareholder  holding  5%  or  more  of  COMPANY'S  shares  is  transferred.

<PAGE>
(i)     COMPANY  will  notify GIVIGEST, in advance, of its intention to issue to
COMPANY  officers,  directors,  employees,  or  consultants  any  new options or
warrants  on  its  common  stock.

12.     REPRESENTATIONS  AND  INDEMNIFICATION

(A)       In  that  GIVIGEST  relies  on  information  provided by COMPANY for a
substantial  part  of  its  efforts,  COMPANY  represents  that said information
provided  by  COMPANY will be neither false nor misleading nor will COMPANY fail
to  disclose  information  necessary  to make the other information provided not
misleading.

(b)       COMPANY  shall  be  deemed  to make a continuing representation of the
accuracy  of  any and all material facts, materials, information, and data which
it  supplies  to  GIVIGEST  and COMPANY acknowledges its awareness that GIVIGEST
will  rely  on  such continuing representation in disseminating such information
and  otherwise  performing  its  investment  banking  functions.

(c)        GIVIGEST, in the absence of notice in writing from COMPANY, will rely
on  the continuing accuracy of         materials, information, and data supplied
by  COMPANY.

(d)     COMPANY  hereby  agrees  to hold harmless and indemnify GIVIGEST against
any  claims, demands, suits, loss, damages, liabilities and expenses arising out
of GIVIGEST's reliance upon the instant accuracy and continuing accuracy of such
facts,  materials,  information, and data, unless GIVIGEST has been negligent in
performing  its  duties  and  obligations  hereunder.

(e)     GIVIGEST  hereby  agrees  to hold harmless and indemnify COMPANY and its
officers  and  directors  against  any  claims,  demands,  suits,  loss, damage,
liabilities and expenses incurred which arise out of the services to be provided
by GIVIGEST to COMPANY, but only to the extent that such claims, demands, suits,
loss,  damage,  liabilities and expenses shall arise out of or be based upon any
untrue statement or alleged untrue statement of a material fact made by GIVIGEST
in  the  offer  and  sale  of  COMPANY'S  debentures.

(f)     COMPANY  shall  cooperate  fully  and  timely  with  GIVIGEST  to enable
GIVIGEST  to  perform  its  duties  and  obligations  under  this  agreement.

(g)     The  execution  and  performance of this Investment Banking Agreement by
COMPANY  has  been  duly  authorized  by  the  Board  of Directors of COMPANY in
accordance  with  applicable  law, and, to the extent required, by the requisite
number  of  shareholders  of  COMPANY.

(h)     The  performance  by  COMPANY  of  this  Agreement  will not violate any
applicable  court  decree  or  order, law or regulation, nor will it violate any
provision  of  the  organizational  documents  and/or  bylaws  of COMPANY or any
contractual  obligation  to  which  COMPANY  may  be  bound.

13.     COMPENSATION

(a)       For  its  Investment  Banking  services, COMPANY shall make payment to
GIVIGEST  according  to  the  terms  and  conditions  set forth in Addendum "A".

(2)      All  moneys  payable hereunder shall be in U.S. funds and drawn on U.S.
banks.

(c)     For  all  services not within the scope of this agreement, COMPANY shall
pay  to  GIVIGEST  such fee(s) as, and when, the parties determine in advance of
performance  of  said  special  services,  provided  COMPANY  has agreed to said
special  services  in  advance.

<PAGE>
14.     BILLING  AND  PAYMENT

Finder's  Fees will by paid by wire within three days after COMPANY has received
the  funds  from  any  sale of its securities under this agreement.  Billing and
payments  for  any  special  services  shall  be agreed on a case by case basis.

15.     GIVIGEST  AS  AN  INDEPENDENT  CONTRACTOR

GIVIGEST  shall provide said services as an independent contractor and not as an
employee  of COMPANY nor of any company affiliated with COMPANY. GIVIGEST has no
authority  to  bind  COMPANY  or  any  affiliate of COMPANY to any legal action,
contract, agreement, or purchase and such action can not be construed to be made
in  good  faith  or  with  the  acceptance of COMPANY, thereby becoming the sole
responsibility  of  GIVIGEST.  GIVIGEST is not entitled to any medical coverage,
life  insurance,  savings plans, health insurance, or any and all other benefits
of  afforded  COMPANY  employees.  GIVIGEST  shall be solely responsible for any
Federal  State  or Local Taxes; and should COMPANY for any reason be required to
pay  taxes  at  a  later  date,  GIVIGEST  shall  insure such payment is made by
GIVIGEST  and  not  COMPANY.  GIVIGEST  shall  be  responsible  for  all workers
compensation  payments  and  herein  holds COMPANY harmless for any and all such
payments  and  responsibilities  related  hereto.

16.     GIVIGEST  NOT  TO  ENGAGE  IN  CONFLICTING  ACTIVITIES

During  the  term of this agreement, GIVIGEST shall not engage in any activities
that  directly  conflicts  with  the  interests  of  COMPANY.  COMPANY  hereby
acknowledges  notification  by  GIVIGEST  and understands that GIVIGEST does and
shall  represent  and  service  other  multiple clients in the same manner as it
does  COMPANY,  and  that  COMPANY  is  not  an  exclusive  client  of GIVIGEST.

17.     PROPRIETARY  INFORMATION

GIVIGEST  shall  treat  as  proprietary  any and all information, not previously
publicly  disclosed,  belonging to COMPANY, its affiliates, or any third parties
and disclosed to GIVIGEST in the course of the performance of GIVIGEST Services.

18.     INSIDE  INFORMATION  -  SECURITIES  VIOLATIONS

In  the course of the performance of this agreement it is expected that specific
sensitive  information  concerning  the  operations  of  COMPANY business and/or
affiliate  companies  shall be divulged to GIVIGEST. In such event GIVIGEST will
not divulge, discuss, or otherwise reveal such information to any third parties.

19.     DISCLOSURE

GIVIGEST shall disclose any outside activities or interests, including ownership
or  participation  in  the development of prior inventions, that conflict or may
conflict  with  the  best  interests  of COMPANY. It is mutually understood that
prompt  disclosure  is required under this paragraph if the activity or interest
is related directly or indirectly, to any activity that GIVIGEST may be involved
with  on  behalf  of  COMPANY.

20.     WARRANTY  AGAINST  CONTEMPLATION  OF  AGREEMENT  FOR  RELATED  CORRUPT
PRACTICES

GIVIGEST  represents  and  warrants  that  all  payments  and  other  valuable
consideration  paid  or to be paid under this agreement constitutes compensation
for  services  rendered  that  this  agreement;  all payments and other valuable
considerations  and  the  use  of those payments and valuable considerations are
non-political in nature; and that said payments and valuable considerations will
not  be  used  to  influence,  sway  or bribe any government or municipal party,
either  domestic  or  foreign,  in  any  way.

<PAGE>
21.     SEVERABILITY

If  any provision of this agreement shall be held to be contrary to law, invalid
or  unenforceable  for any reason, the remaining provisions shall continue to be
valid  and enforceable. If a court finds that any provision of this agreement is
contrary to law, invalid or unenforceable and that by limiting such provision it
would  become  valid  and enforceable, then such provision shall be deemed to be
written,  construed,  and  enforceable  as  so  limited.

22.     TERMINATION  OF  AGREEMENT

This Investment Banking Agreement may not be terminated by either party prior to
the  expiration  of  the  term provided in Paragraph  8 above except as follows:

(a)     Upon the bankruptcy or liquidation of the other party, whether voluntary
or  involuntary,

(b)     Upon  the  other  party taking the benefit of any insolvency law, and/or

(c)     Upon  the  other party having or applying for a receiver appointment for
either  party.

(d     Upon the discovery of false, misleading, or fraudulent misrepresentations
by  either  party  or  the  breach  of  any warranty, representation of covenant
contained  herein  by  either  party.

(e)           In  the  event COMPANY fails or refuses to cooperate with GIVIGEST
or  fails  or refuses to make timely payment of the compensation set forth above
and/or  in  Addendum  "A".  In  such  a  case,  GIVIGEST shall have the right to
terminate  any  further  performance under this agreement and upon, notification
thereof,  all  earned  compensation  shall  become  immediately due and payable.

23.     ATTORNEY  FEES

In  the  event  either  party  is in default of the terms and conditions of this
Investment Banking Agreement and legal action is initiated or suit be entered as
a  result  of  such a default, the prevailing party shall be entitled to recover
all  costs  incurred as a result of such default including all costs, reasonable
attorney  fees,  expenses,  court  costs  through  trial,  appeal  and  to final
disposition  (if  applicable), and all costs of arbitration provided for herein.

24.     RETURN  OF  RECORDS

Upon  termination  of  this  agreement,  GIVIGEST shall deliver all of Company's
records,  notes,  data, memorandum, models and equipment of any  nature that are
in  the  control  of  GIVIGEST.

25.     Miscellaneous

(1)          Effective  date  of representations shall be no later than the date
of  the  signing  of  this  agreement  by  both  parties.

(2)     Currency:  in all instances, references to dollars shall be deemed to be
United  States  Dollars

26.     NOTICES

<PAGE>
All  notices  hereunder  shall  be  in writing and addressed to the party at the
address herein set forth, or at such other address which notice pursuant to this
section  may  be given and shall be given by either personal delivery, certified
mail,  express  mail or other national overnight courier services. Notices shall
be  deemed  given  upon the earlier or actual receipt or three (3) business days
after being mailed or delivered to such courier service. Any notices to be given
hereunder  shall  be  effective if executed by and sent by the attorneys for the
parties  giving  such notice; and in connection therewith, the parties and their
respective  counsel  agree  that  in   giving  such  notice,  such  counsel  may
communicate  directly  in  writing  with such parties to the extent necessary to
give such notice. Any notice required or permitted by this agreement to be given
shall  be  given  to  the  respective  parties  at  the  following  addresses:

     GIVIGEST:
     GIVIGEST  FIDUCIARIA  SA
     Corso  Elvezia  4,
     CH-6901  Lugano,  Switzerland
     Telephone:     +4191-921-1821
     Fax:           +4191-921-1823

     COMPANY:
     AIR  PACKAGING  TECHNOLOGIES,  INC.
     25260  Rye  Canyon  Road,
     Valencia,  California,  USA
     Telephone     1-661-294-2222
     Fax:          1-661-294-0947

27.     TIME  IS  OF  THE  ESSENCE

Time  is  hereby  expressly  made  of  the  essence  of  this Investment Banking
Agreement  with  respect  to  the performance by the parties of their respective
obligations  hereunder.

28.     INUREMENT

This  Investment  Banking Agreement shall enure to the benefit of and be binding
upon  the  parties hereto and their respective heirs, executors, administrators,
personal  representatives,  successors, assigns and any addenda attached hereto.

29.     ENTIRE  AGREEMENT

This  Investment Banking Agreement contains the entire agreement  of the parties
and  may  be  modified  or  amended only by agreement, in writing, signed by the
party  against  whom enforcement of any waiver, change, amendment, modification,
extension  or discharge is sought. It is declared by both parties that there are
no  oral  or  other  agreements  or  understanding  between  them affecting this
Investment  Banking  Agreement  or  relating  to  the business of GIVIGEST. This
agreement  supersedes  all  previous  agreements  between  GIVIGEST and COMPANY.

30.     APPLICABLE  LAW

This Agreement is executed pursuant to and shall be interpreted and governed for
all  purposes  by  the  laws  of  the  State of Ticino. If any provision of this
Investment  Banking  Agreement is declared void, such provisions shall be deemed
severed  from  this  agreement,  which  shall otherwise remain in full force and
effect.  Any controversy or claim arising out of, relating to this agreement, or
the  breach  thereof,  shall  be  settled by arbitration in the Lugano District,
Ticino  in  accordance with the rules then promulgated by said Courts, the Court
shall  appoint an arbitrator, and judgment upon award rendered may be entered in
the  courts  of  the  Lugano  District,  Ticino  or   any  other   court  having
jurisdiction,  which  award  and/or judgment shall include reasonable attorney's
fees.

31.     ACCEPTANCE  BY  GIVIGEST

This  Investment  Banking Agreement is not valid or binding upon GIVIGEST unless
and  until  executed by the President or other duly authorized executive officer
of  GIVIGEST  at  its  home  office  in  Lugano,  Switzerland.

<PAGE>
32.     NON-WAIVER

The  failure  of either party at any time to require any such performance by any
other  part  shall  not  be  construed as a waiver of such right to require such
performance  and  shall  in  no  way  affect  such party's right to require such
performance  and  shall  in  no  way  affect  such party's right subsequently to
require  full  performance  hereunder.

33.     EXECUTION  IN  COUNTERPARTS

This  agreement  may  be  executed in counterparts, not withstanding the date or
dates upon which this agreement is executed and delivered by any of the parties,
and  each shall be deemed to be an original and all of which will constitute one
and  the  same  agreement.

34.           Costs

All  costs  and  expenses incurred in the preparation of this agreement shall be
borne  solely  by  COMPANY.

IN WITNESS WHEREOF, the parties hereto have set their hands in execution of this
agreement.

For  and  in  behalf  of:                         For  and  in  behalf  of:

COMPANY                                      GIVIGEST

AIR  PACKAGING  TECHNOLOGIES,  INC.          GIVIGEST  FIDUCIARIA  SA

a  US  Company                               a  Swiss  Company

By     /s/  Donald  M. Ochacher               By    /s/  Claudio Gianascio
       ------------------------                     ----------------------
       Donald  M.  Ochacher                         Claudio  Gianascio
       President                                    President

<PAGE>

                             GIVIGEST FIDUCIARIA  SA
                                ONE TIME PROGRAM
                          INVESTMENT BANKING AGREEMENT

                                  ADDENDUM "A"

SPECIFIC  SERVICES

1.          GIVIGEST  agrees to use its efforts to place COMPANY's $2,000,000 7%
Convertible Debentures (hereinafter "Debentures"), as described on Addendum "B".

2.          GIVIGEST  commits  to  place $1,500,000 of COMPANY's Debentures on a
firm  basis,  as  that  term  is  commonly  used.

3.          GIVIGEST  will  use its best efforts to place the remaining $500,000
of  COMPANY's  Debentures.

4.          GIVIGEST commits to place the first $500,000 of COMPANY's Debentures
no  later  than  August  13,  1999.

5.          GIVIGEST   commits   to  place  the  next  $1,000,000  of  COMPANY's
Debentures  no  later  than  September  15,  1999.

6.          GIVIGEST  will  use its best efforts to place the remaining $500,000
of  COMPANY's  debentures  no  later  than  October  15,  1999.

COMPENSATION

10%  commission  on  all  funds  received  by  COMPANY  through  the sale of the
Debentures  subject  to this agreement, including but not limited to the sale of
the  aforementioned debentures by GIVIGEST directly,  received from investors or
subscribers  presented  by  GIVIGEST,  or  received  from  persons related to or
referred  by  any  such  investor  or  subscriber.

For  and  in  behalf  of:                         For  and  in  behalf  of:

COMPANY                                      GIVIGEST

AIR  PACKAGING  TECHNOLOGIES,  INC.          GIVIGEST  FIDUCIARIA  SA

a  US  Company                               a  Swiss  Company

By     /s/  Donald  M. Ochacher               By     /s/  Claudio Gianascio
       ------------------------                      ----------------------
      Donald  M.  Ochacher                          Claudio  Gianascio
      President                                     President

<PAGE>

                             GIVIGEST FIDUCIARIA  SA
                                ONE TIME PROGRAM
                          INVESTMENT BANKING AGREEMENT

                                  ADDENDUM "B"

DESCRIPTION  OF  DEBENTURES

1.          4 year 7% Convertible Debentures of Air Packaging Technologies, Inc.

2.          Conversion  Price
a.  Convertible  into  common  stock  of  COMPANY at anytime within two years of
issue  date  at  $0.15  per  share.
b.  Convertible into common stock of COMPANY at anytime between the first day of
the  third  year  and  the last day of the fourth year after issue date at $0.25
c.  Conversion feature expires at 12:00 midnight Los Angeles, California time on
the  last  day  of  the  fourth  year  after  the  issue  date.

3.          Payable  in  full,  if not converted, upon surrender of debenture to
COMPANY  no  sooner  than  the  first  day  of  the fifth year after issue date.

4.          Interest
a.   Payable  annually  in  arrears.
b.  Payable, at the option of holder, in unregistered common stock of COMPANY at
a  20% discount to the average bid price of COMPANY's common stock during the 30
business  days  immediately prior to payment date, if COMPANY is notified of the
election  a  minimum  of  15 days prior to the payment date.  For the purpose of
this  paragraph  the  "payment date" is defined as the 365th day from the issue
date or  the  last  payment  date,  as  applicable.
c.  At  COMPANY's  option,  COMPANY may choose to register said dividend shares.
In  such  event,  the  dividend  shall  be  payable  at the average bid price of
COMPANY's  common  stock  for  the 30 business days immediately prior to payment
date.  If  COMPANY chooses this option, it will use its best efforts to register
the  dividend  shares  as  soon  as  practicable  after  payment  date.
D.  Notwithstanding  anything  to  the contrary, the minimum price to be used to
compute  the  number  of  shares  to  be  issued  as  a dividend shall be $0.15.

5.          Issuance  of  Debentures

a.  The  Debentures will be issued in the names and denominations as directed by
GIVIGEST,  provided,  that COMPANY shall be entitled to request information from
GIVIGEST  concerning  any purchaser and approve any purchaser of the Debentures,
which  approval  shall  not  be  unreasonably  withheld  or  delayed.

REGISTRATION  RIGHTS  AND  OTHER  FEATURES

1.          Registration  Rights

a.  Company  will  use  its  best  efforts  to  file  a registration with the US
Securities  and Exchange Commission within 30 days of this agreement to register
the  debentures  and  the  underlying  common  shares  upon  conversion.

<PAGE>
b.  Company  will  use  its best efforts to cause said registration statement to
become  effective by December 31, 1999 and will use its best efforts to maintain
said  registration  until 6 months after the conversion of all of the debentures
or  the  expiration  of  the  conversion  rights,  whichever  comes  first.

2.  Other  Features

a.  The  minimum  amount  of debentures that can be converted at any time by any
debenture  holder  shall  be  $100,000.

b.  Debentures  shall  be  senior  in preference to all other debentures whether
presently  outstanding  or  issued in the future unless unanimously agreed to by
the  debenture  holders  in  the  particular  case.

SUBSCRIBERS  &  EXEMPT  PLACEMENT

a. The aforementioned debentures shall be offered by GIVIGEST only to accredited
institutions and individuals as that term is defined under the Securities Act of
1933  and  the  rules  promulgated thereunder (hereinafter "The Act")and only to
institutions  and  individuals  which  acknowledge  that  they are acquiring the
Debentures  with  an  investment  intent  and  not  with a view to resale unless
registered.

b.  The  Debentures  will  be  offered  and  sold  pursuant to an exemption from
registration  under  The  Act  and,  as such, both the Debentures and the common
shares  issued  upon conversion will be issued with a restrictive legend and may
not  be resold, hypothecated, or transferred within the US or to a US person, as
that  term  is  defined under The Act, unless and until a registration statement
covering  the debentures and underlying shares is in effect or an exemption from
registration  for  said  sale,  hypothecation, or transfer is applicable to said
action.

For  and  in  behalf  of:                         For  and  in  behalf  of:

COMPANY                                      GIVIGEST

AIR  PACKAGING  TECHNOLOGIES,  INC.          GIVIGEST  FIDUCIARIA  SA

a  US  Company                               a  Swiss  Company

By      /s/  Donald  M. Ochacher               By    /s/  Claudio Gianascio
        ------------------------                     ----------------------
        Donald  M.  Ochacher                        Claudio  Gianascio
        President                                   President

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