Document:

Exhibit  10.2

     PRIVATE  &  CONFIDENTIAL
     July  30,  1999
     Mr.  Ken  Legere,  President
     Island  Critical  Care  Corporation
     29  Hollahan  Street  Nepean,  Ontario
     K2J3W9
     Dear  Mr.  Legere:

     On  the  basis  of  the  application  for  a  working  capital loan and non
repayable  contribution,  we  are  pleased  to extend the following offer.  THIS
OFFER  SUPERSEDES  OUR  OFFER  DATED  APRIL  21,1998.

     AMOUNT  &  PTTRPOSE  OF  CREDIT

     $1,500,000.00  (One  Million  Five Hundred Thousand Dollars) in total ("The
Credit  Project").

     $200,000.00  (Two  Hundred  Thousand  Dollars)  in  total  "Equity Investor
Incentive".

     The  Credit  is  made  available  to  Island Critical Care Corporation, the
Borrower,  for  the  following  purpose  ("The  Credit Project"):     To finance
inventory,  work  in  progress  and  receivables.

     The  Credit  is  to  be  used  solely  for  the  purpose  outlined  above.

     SECURITY
     --------

     The  following  security  (hereinafter  referred  to  collectively  as  the
"Security")  evidenced  by  documents,  registrations,  filings  and opinions of
Counsel  satisfactory  to  P.E.I.  Lending Agency is to be provided prior to any
funds  being  disbursed:

     A  Demand  Note  in  the  amount  of $1,500,000.00 to be executed by Island
Critical  Care  Corporation.

<PAGE>
     Hypothecation  of  a  secured  Demand Debenture, in the minimum amount of $
1,500,000.00  representing  a  first  Fixed  Charge on land, buildings, accounts
receivable  and  inventory  and  a  Floating  Charge  on all other assets of the
Company.

     A  Registered  General  Assignment  of  Book  Debts.

     Fire  Insurance  on  inventory.

     The  Personal  Guarantee and postponement of claim of Kenneth R.  Legere in
the  amount  of  $1,500,000.00

     Assignment  of  the  Island Critical Care Corporation common shares held by
Kenneth  R.  Legere.

     Key  man  Life  Insurance  in  the  amount  of  $300,000.00

     CONTINGENT  CONDITIONS
     ----------------------

     Prior  to the closing of the Credit transaction and the disbursement of any
part  of  the  funds,  we  will  require:

     An  application  fee  of $5,000.00

     PRIOR  TO  ACCESSING THIS LINE OF CREDIT, THE COMPANY MUST DEMONSTRATE THEY
HAVE  A  FULLY  OPERATIONAL PULSE OXIMETER, TOGETHER WITH THE NECESSARY LICENSES
AND  CERTIFICATION  REQUIRED  TO  COMMERCIALLY  PRODUCE AND MARKET THIS PRODUCT.

     Written  confirmation  of a repayable contribution from ACOA in the minimum
amount  of  $300,000.00.

     Written  confirmation  of  a  non  repayable  contribution from HRDC in the
minimum  amount  of  $300,000.00.

     Confirmation  of  a  cash  equity investment in the amount of $800,000.00 .
Confirmation  of  fire  insurance  required  under  this  offer.

     All  required security documentation is at your own expense and is to be in
a  form  satisfactory  to P.E.I.  Lending Agency and its legal counsel and to be
executed,  delivered  and  registered  in all necessary or appropriate places as
P.E.I.  Lending  Agency  deems  necessary.

<PAGE>
     Certified  copies of all documents evidencing all corporate action taken by
the Borrower and/or Guarantor(s) authorizing the acceptance of this Credit Offer
and  the  execution  and  delivery  of  all  security  documentation.

     In the event the Atlantic Canada Opportunities Agency and/or Human Resource
Development  Corporation  do  not contribute the specified amounts stipulated in
this  offer,  the  shareholders, may increase their equity component equal to or
greater  than,  that  in  which  was  to  be  provided  by  ACOA  and/or  HRDC.

GENERAL  CONDITIONS  TO  DISBURSEMENT

     Notwithstanding anything herein to the contrary, P.E.L Lending Agency shall
have  the  right,  as its option, to terminate this commitment, and shall not be
required  to  disburse  all  or any further part of the loan and, at any time or
times,  the  balance  owing on the credit may, at its option, become immediately
due  and  payable:

     If  an  Event  of Default has occurred or an event which, with the lapse of
time  or with notice and lapse of time specified herein would become an Event of
Default,  shall  have  occurred  and  be  continuing;  or;

     If  in  the  opinion  of P.E.I, Lending Agency, there has been any material
adverse  change  in the business, assets or financial condition of the Borrower;
or

     If  there  is any action, proceeding or investigation pending or threatened
against  the  Borrower,  which  would in the opinion of P.E.L Lending Agency, if
successful  have  a  material  adverse  effect  on  the  Borrower;  or

     If  there  is  or  has  been  any material discrepancy or inaccuracy in any
written  or oral representations, statements or information made or furnished to
P.E.I.  Lending  Agency  at  any  time.

     If,  in  the  opinion  of  P.E.I.  Lending Agency, any money loaned has not
been,  or  is not being applied for the purpose for which it was advanced, or if
the  security  materially  depreciates  in  value.

     IF  BY  MARCH  30,  2000,  ISLAND  CRITICAL  CARE  CORPORATION IS UNABLE TO
DEMONSTRATE  THEY  HAVE  A  FULLY  OPERATIONAL PULSE OXIMETER, TOGETHER WITH THE
NECESSARY LICENSES AND CERTIFICATION REQUIRED TO COMMERCIALLY PRODUCE AND MARKET
THIS  PRODUCT,  THIS  OFFER OF CREDIT WILL BE WITHDRAWN, AND THE COMPANY WILL BE
REQUIRED  TO  REAPPLY  TO  THE  AGENCY  FOR  FUNDING.

<PAGE>
     NEGATIVE  COVENANTS
     -------------------

     During  the  term  of the Loan and as long as you are indebted or otherwise
liable  to  P.E.I.  Lending  Agency,  the  company  will  not, without the prior
written  consent  of  P.E.I.  Lending  Agency:

     Make any  loans  or  advances  to  shareholders  or  affiliated  companies.

           Create  contingent  liabilities  via  corporate guarantees. It is our
understanding  there  are no such contingent liabilities currently in existence.

     Outflows  of  funds  from  Island  Critical  Care Corporation to affiliated
companies;  their shareholders/directors or otherwise as bonuses, dividends, etc
may not exceed 100% of surplus cash flow after the Agency's debt retirements and
capital  spending  funded  from  operations.

     Will  not undertake any capital expenditures in excess of $25,000.00 in the
aggregate,  in  any  fiscal  year  and  for  the purpose of this clause "capital
expenditures"  shall  mean  any expenditures which, in accordance with generally
accepted  accounting  principles,  are  chargeable  to  a capital or fixed asset
account.  This  covenant  excludes,  capital  spending  contemplated  with  this
financing  package.

     The  company  will  not  make  any  material change in the Loan without the
consent  of  the  P.E.I.  Lending  Agency.

     FINANCIAL  STATEMENTSAND  REPORTS
     ---------------------------------

     The  borrower  shall,  at  its  expense,  deliver to P.E.I.  Lending Agency
financial  statements  in  form and content as P.E.I.  Lending Agency may in its
discretion  require,  on  the  following  basis:

     Monthly, within 20 days of the end of the period, the borrower will provide
financial  statements including income statement and balance sheet; an aged list
of  accounts  receivable, payables, a summary of inventory and work in progress.
Within  120 days after the end of each fiscal year, a copy of the annual Audited
financial  statements of the Borrower, which shall include a balance sheet and a
statement  of  revenue  and expense, prepared by a firm of independent chartered
accountants  in  accordance  with generally accepted accounting principles; Upon
request  by P.E.I.  Lending Agency, such other financial statements, reports and
information  in  respect  of  the  financial  conditions  and  operations of the
Borrower  as  may  be  deemed  necessary.

<PAGE>
     DISBURSEMENT  OF  FUNDS
     -----------------------

     The  Loan will be disbursed through our office and funded monthly, based on
the  cash  flow  forecast,  previous month's Income Statement, Balance Sheet and
Inventory  Declaration  certified by an Officer of the company or its designate.
Proceeds  will  be disbursed in multiples of $25,000.00, once a month, on a date
mutually agreed upon between the P.E.I.  Lending Agency and Island Critical Care
Corporation.

     LIFE  INSURANCE
     ---------------

     The  Loan  must  carry  Keyman  Life  Insurance  in  the  minimum amount of
$300,000.00.  Enterprise  PEI, as an agent for Crown Life of Canada, can provide
this  coverage.  The  current  rate,  which  is subject to an annual review, is:

     $  .36  per $1,000.00 per month for  the  first  $100,000.00  of  coverage;
     For  loans  over  $100,000.00  (per  $1,000.00  of  coverage)

    Age
    ---
   35-44                                $.18  per  $1,000.00  per  month
   45-49                                $.36  per  $1,000.00  per  month
   50-54                                $.62  per  $1,000.00  per  month
   55-59                               $1.04  per  $1,000.000 per  month
   60-64                               $1.49  per  $1,000.00  per  month

     Should you choose to insure your loan through this Agency, the premium will
be  charged  to  your account automatically for this protection.  Final coverage
and  rates will be determined at the time of receiving the Borrower's acceptance
of  this  offer.

<PAGE>
     TERMS  OF  REPAYMENTThe  terms  of  repayment
     --------------------

     of  the  Credit  are  as  follows:

     The  principal  amount  of  the  credit will be payable on demand, but more
specifically  from  cash  flow.

     In  any  event, it is understood that the full amount owing will be paid no
later  than  July  31,  2000.
             ----------------

     Interest  will  be  charged  monthly  on  outstanding advances at the prime
lending  rate  as  charged to us by the Toronto Dominion Bank, from time to time
plus  2.75%  percent  per  annum,  and  is  to  be  paid  monthly.

     All payments of interest will be charged directly to the company*s business
     account via the electronic  debit  system  on  the  first  of  each  month.

     EVENTS OF  DEFAULT
     ------------------

     Any  one  or  more  of  the  following  events shall constitute an Event of
Default  (whether any such Event of Default shall be voluntary or involuntary or
be  effected  by  operation  of  law  or  pursuant  to or in compliance with any
judgment,  decree  or order of any court of any order, rule or regulation of any
administrative  government  body):

     If  the  Borrower  makes default in the payment of any sum which is due and
owing  to  P.E.I. Lending Agency hereunder and such default shall have continued
for  a  period  of  fifteen  (15)  days;

     (b)  If the Borrower shall neglect to observe or perform any other covenant
or  condition  herein  contained on its part to be observed or performed and, if
the  same  is  capable of being cured, after notice in writing has been given by
P.E.L  Lending Agency specifying such default and requiring the Borrower to cure
the  same,  the  Borrower  shall have failed to cure the same within a period of
fifteen  (15)  days;

     (c)  If an order shall be made or an effective resolution be passed for the
winding-up  or  the  liquidation  of  the  Borrower;

     (d)  If  the  Borrower  shall  make  an  assignment  for the benefit of its
creditors  or shall be declared bankrupt or make a proposal under the Bankruptcy
                                                                      ----------
Act  or  if  a  custodian  or sequestrator or receiver or a receiver and manager
---
or  any  other officer with similar powers shall be appointed of the Borrower or
its  property;

<PAGE>
     (e)  If  an  encumbrancer  shall  take  possession  of  the property of the
Borrower  or  any  substantial part thereof or of a distress or execution or any
similar  process  be  levied  or  enforced  against  such  property  and  remain
unsatisfied  for  such period as would permit such property or such part thereof
to  be  sold  thereunder;

     (f)  If  the  Borrower  shall make an application to any court for an order
under  the  Companies  Creditors  Arrangement  Act;
            ---------------------------------------

     (g)  If  P.E.I.  Lending  Agency in good faith believes that the ability to
pay  any monies hereby secured or to perform any covenant or condition hereof is
impaired  or  that the mortgaged property is in danger of being lost, damaged or
confiscated;

     (h)  If  the  Borrower  ceases  to  carry  on  its  business;

     (i)  The  making  of  any representation or warranty by the Borrower or the
application  in  any document or certificate furnished to P.E.I.  Lending Agency
in  connection  herewith or pursuant hereto which 'shall prove at any time to be
materially  incorrect,  as of the date made.  P.E.I.  Lending Agency may, at any
time  it  deems it necessary to protect its loans or security, obtain the advice
and  assistance of such lawyers, accountants, engineers or other professional or
expert  personnel  as  it may deem necessary, and the expense in this connection
shall,  on  a  solicitor  and  client  basis,  be  borne  by  the  Borrower.

<PAGE>
     ACKNOWLEDGMENT
     --------------

     The  Borrower  acknowledges  that  it  has  independently  satisfied itself
respecting  the feasibility of the Credit Project and have not relied in any way
upon  any  oral or written representations by P.E.I.  Lending Agency or the fact
the  Loan  is  being  made.

     The Borrower acknowledges that it recognizes that, although P.E.I.  Lending
Agency  is  a Crown Corporation, it operates on the basis of an independent body
for  the  purpose  of dealing with applications for financial assistance made to
it.  Applications are considered strictly on their own merits and independent of
other  government  corporations  or  agencies and without regard to any possible
understanding  with  any  government  department  and  representatives.

     ACCEPTANTANCE
     -------------

     This offer of credit must be accepted in writing, within 30 days, by way of
a  Resolution  of  the  Directors  of  Island  Critical Care Corporation, and we
enclose  a  form  that  may  be  used in this regard; also, by the signatures of
Guarantors, namely - Kenneth R.  Leger and Schiller Canada Inc., as indicated on
the  enclosed  duplicate  copy  of  this  letter.

     Upon  receipt  of  the  written  acceptance  and  fulfillment of contingent
conditions,  we will have the required loan documents prepared by our Solicitor.
All  fees  will  be  on  the  account  of  the  Borrower.

     Enterprise  P.E.I.  is  pleased  to  extend  this  offer  to  you.

     Yours  truly.

     ENTERPRISE  P.E.I.

     /s/  Per:  D.C.  Aitken
         -------------------
         D.C.  Aitken
         Account  Manager

     ACCEPTED  ON  BEHALF  OF  THE  BORROWER

     ISLAND  CRITICAL  CARE  CORPORATION

     Per:  /s/  Kenneth  Legere
         ----------------------

Kenneth  Legere

ACCEPTED  ON  BEHALF  OF  THE  GUARANTORS

     /s/  Kenneth  Legere
     --------------------
     Kenneth  Legere

     SCHILLER  CANADA  INC.

     Per:  Kenneth  Legere
     ---------------------
     Kenneth  Legere

<PAGE>Exhibit  10.3

PROVINCIAL  TREASURY
     PRI  Lending  Agency
     PO  Box  1420
     Charlottetown
     Prince  Edward  Island
     Canada  C1A  7N1
     Tel  902  368-6200
     Fax  902  369-6201

     May  23,  2000

     Mr.  Sean  P.  Flanigan
     Vice  President  &  COO
     Island  Critical  Care  Corporation
     29  Houlahan  Street
     Nepean  Ontario  K2J  3W9

     Dear  Mr.  Flanigan:

     Re:  Funding  Pulse  Oximeter

     With  regards to the above, this letter will serve as acknowledgement, that
the  funding  conditions  for  the  Pulse  Oximeter being manufactured by Island
Critical  Care  Corporation  have  been  met.

     The  Lending  Agency  will  be  in  a position to disburse on its loan upon
receipt  of  the interim financial statements and signing of the loan documents.

     I  trust  the  above  is  satisfactory.

     Yours  truly,

     /s/  D.C.  Aitken
     D.C.  Aitken
     Account  Manager

<PAGE>

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