Document:

CONSULTING AGREEMENT

This Consulting  Agreement (the "Agreement"),  effective as of March 29, 1999 is
entered into by and between Swissray International, Inc., a New York corporation
with principal offices located in Hochdorf,  Switzerland  (herein referred to as
the  "Company")  and  LIVIAKIS  FINANCIAL  COMMUNICATIONS,  INC.,  a  California
corporation (herein referred to as the "Consultant").

                                    RECITALS

        WHEREAS,  Company is a publicly held  corporation  with its common stock
traded on the OTC Bulletin Board; and

        WHEREAS,  Consultant  has  experience In the area of corporate  finance,
investor communications and financial and investor public relations; and

        WHEREAS,  Company desires to engage the services of Consultant to assist
and consult  with the  Company in matters  concerning  corporate  finance and to
represent the Company in investor's  communications  and public  relations  with
existing shareholders, brokers, dealers and other investment professionals as to
the Company's current and proposed activities.

        NOW THEREFORE, in consideration of the promises and the mutual covenants
and agreements  hereinafter set forth,  the parties hereto covenant and agree as
follows:

1.       Term of Consultancy. Company hereby agrees to retain the Consultant to
act in a consulting capacity to the Company, and the Consultant hereby agrees to
provide services to the Company commencing March 29, 1999  and  ending on March
28, 2000.

2.       Duties of Consultant.  The  Consultant  agrees that it  will  generally
provide  the following specified  consulting services through  its officers  and
employees during the term specified in Section 1.:

                  (a)     Advise and assist the Company in developing  and
                  implementing appropriate plans and materials for presenting
                  the Company and its business  plans,  strategy and  personnel
                  to the financial community,  establishing  an  image  for  the
                  Company in the financial community, and  creating  the
                 foundation   for subsequent financial public relations efforts:

                  (b)      Introduce the Company to the financial community;

                  (c) With the cooperation of the Company, maintain an awareness
                  during  the term of this  Agreement  of the  Company's  plans,
                  strategy and personnel, as they may evolve during such period,
                  and advise and assist the Company in communicating appropriate
                  information  regarding  such plans,  strategy and personnel to
                  the financial community;

                  (d)         Assist and advise the Company  with respect to its
                              (i)  stockholder  and  investor  relations,   (ii)
                              relations  with  brokers,  dealers,  analysts  and
                              other   investment   professionals,    and   (iii)
                              financial public relations generally;

                    (e)       Perform  the  functions  generally  assigned  to
                              investor / stockholder   relations   and   public
                              relations  departments   in  major  corporations,
                              including  responding  to  telephone  and  written
                              inquiries (which may be referred to the Consultant
                              by the Company); preparing press releases for the
                              Company  with  the  Company's  involvement  and
                              approval or reviewing press releases, reports and

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                              other communications  with or to shareholders,
                              the investment community and the general public;
                              advising, with respect to the timing, form,
                              distribution and other matters related to  such
                              releases, reports and  communications;  and the
                              consulting  with  respect to corporate symbols,
                              logos, names, the presentation of such symbols,
                              logos and names, and other matters relating to
                              corporate image.

             (f) Upon the Company's approval,  disseminate information regarding
             the Company to  shareholders,  brokers,  dealers,  other Investment
             community professionals and the general Investing public;

             (g) Upon the Company's approval,  conduct meetings, in person or by
             telephone,  with brokers,  dealers,  analysts and other  investment
             professionals  to advisd  them of the  Company's  plans,  goals and
             activities,   and  assist  the  Company  in  preparing   for  press
             conferences  and  other  forums  Involving  the  media,  investment
             professionals and the general investment public;

             (h) At the Company's  request,  review business plans,  strategies,
             mission statements budgets,  proposed  transactions and other plans
             for the purpose of advising the Company of the investment community
             implications thereof; and

             (i)  Otherwise perform as the Company's financial relations and
                  public relations consultant.

      3.  Allocation of Time  and-Energies.  The Consultant  hereby  promises to
      perform and discharge well and faithfully the  responsibilities  which may
      be assigned to the  Consultant  from time to time by the officers and duly
      authorized  representatives  of the Company in connection with the conduct
      of  its  financial  and  investor  public  relations  and   communications
      activities,  so long as such  activities are in compliance with applicable
      securities laws and regulations. Consultant and staff shall diligently and
      thoroughly provide the consulting services required hereunder. Although no
      specific  hours-per-day  requirement will be required,  Consultant and the
      Company  agree that  Consultant  will  perform the duties set forth herein
      above in a diligent and professional  manner. The parties  acknowledge and
      agree that a disproportionately  large amount of the effort to be expended
      and the costs to be  incurred  by the  Consultant  and the  benefits to be
      received by the Company are expected to occur upon and shortly after,  and
      in any event, within two months of the effectiveness of this Agreement. It
      is  explicitly  understood  that  Consultant's  performance  of its duties
      hereunder will in no way be measured by the price of the Company's  common
      stock,  nor the trading volume of the Company's  common stock.  It is also
      understood  that the Company in entering into this Agreement with Liviakis
      Financial  Communications,   Inc.  ("LFC"),  a  corporation  and  not  any
      Individual member of LFC, and with such,  Consultant will not be deemed to
      have  breached  this  Agreement if any member,  officer or director of LFC
      leaves  the firm or dies or  becomes  physically  unable  to  perform  any
      meaningful  activities  during  the term of the  Agreement,  provided  the
      Consultant otherwise performs its obligations under this Agreement.

               4. Remuneration.  As full and complete compensation for services
               described in this Agreement, the Company shall compensate LFC
               (herein referred to as "Consultants") as follows:

                4.1 For  undertaking  this  engagement  and for  other  good and
                valuable consideration,  the Company agrees to issue and deliver
                to the Consultants a "Commencement Bonus" payable in the form of
                3,000,000 shares of the Company's common stoqk ('Common Stock").
                This  Commencement  Bonus  shall be  issued  to the  Consultants
                immediately  following  execution of this  Agreement  and shall,
                when  issued and  delivered  to  Consultants,  be fully paid and
                non-assessable.   The  Company   understands   and  agrees  that
                Consultants  have foregone  significant  opportunities to accept
                this engagement and that the Company derives substantial benefit
                from the execution of this Agreement and the ability to announce
                its relationship with Consultant. The 3,000,000 shares of Common
                Stock issued as a  Commencement  Bonus,  therefore,  constitutes
                payment for Consultant's agreement to consult to the Company and
                are a nonrefundable, nonapportionable, and non-ratable retainer;
                such  shares of Common  stock are not a  prepayment  for  future
                services.  If the Company  decides to terminate  this  Agreement
                prior to March 28, 2000 for any reason whatsoever,  it is agreed
                and  understood  that  Consultants  will  not  be  requested  or
                demanded by the Company to

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                return any of the shares of Common  Stock paid to it  hereunder,
                The shares of Common  Stock  issued  pursuant to this  Agreement
                shall   be   issued   in  the   name   of   Liviakis   Financial
                Communications, Inc.

               4.2 Consultants acknowledge that the shares of Common Stock to be
               issued  pursuant to this Agreement  (collectively,  the "Shares')
               have not been  registered  under the  Securities Act of 1933, and
               accordingly  are  "restricted  securities"  within the meaning of
               Rule 144 of the Act.  As such,  the  Shares  may not be resold or
               transferred unless the Company has received an opinion of counsel
               reasonably  satisfactory  to the  Company  that  such  resale  or
               transfer is exempt  from the  registration  requirements  of that
               Act.

               4.3   In connection with the acquisition of Shares hereunder, the
               Consultants, represent and warrant to the Company as follows:

               (a)Consultants   acknowledge   that  the  Consultants  have  been
               afforded the  opportunity to ask questions of and receive answers
               from duly authorized  officers and other  representatives  of the
               Company   concerning  an  investment  in  the  Shares,   and  any
               additional information which the Consultants have requested.

               (b)   Consultants'   investment  in   restricted   securities  is
               reasonable in relation to the Consultants' net worth, which is in
               excess  often  (10)  times  the  Consultants'  cost  basis in the
               Shares.   Consultants  have  had  experience  in  investments  In
               restricted and publicly traded  securities,  and Consultants have
               had experience in investments in speculative securities and other
               investments  which  involve  the  risk  of  loss  of  investment.
               Consultants  acknowledge  that an  investment  in the  Shares  is
               speculative and involves the risk of loss.  Consultants  have the
               requisite  knowledge  to assess the  relative  meets and risks of
               this  investment  without  the  necessity  of relying  upon other
               advisors,  and  Consultants  can  afford  the risk of loss of his
               entire  investment in the Shares.  Consultants are (i) accredited
               investors,  as that term is defined in  Regulation D  promulgated
               under the Securities Act of 1933, and (ii) a purchaser  described
               In Section 25102(f)(2) of the California Corporate Securities Law
               of 1968, as amended.

             (c) Consultants are acquiring the Shares for the  Consultants'  own
             account for long-term  investment and not with a view toward resale
             or  distribution  thereof  except  in  accordance  with  applicable
             securities laws.

             (d)  Consultant  agrees that  throughout the period of time that it
             retains beneficial ownership of all or any portion of the 3,000,000
             shares of Common Stock referred to above that Consultant  shall (a)
             vote  such  shares  in  favor of Ruedi  G.  Laupper  continuing  to
             maintain  his  current  position(s)  with the  Company and (b) give
             Ruedi G. Laupper and/or his designee the right to vote Consultant's
             shares at all  Company  shareholder  meetings.  Consultant  further
             agrees to sign a Voting  Trust  Agreement so as to  effectuate  the
             terms and intent of this paragraph.

      5. Financing "Finder's Fee". It is understood that in the event Consultant
      introduces Company, or its nominees, to a lender or equity purchaser,  not
      already  having a  preexisting  relationship  with the Company,  with whom
      Company, or its nominees,  ultimately finances or causes the completion of
      such financing,  Company agrees to compensate Consultant for such services
      with a finder's fee in the amount of 2.5% of total gross funding  provided
      by such lender or equity  purchaser,  such fee to be payable in cash. This
      will  be in  addition  to  any  fees  payable  by  Company  to  any  other
      intermediary,  if any, which shall be per separate  agreements  negotiated
      between Company and such other intermediary. It is also understood that in
      the  event  Consultant   introduces  Company,  or  its  nominees,   to  an
      acquisition  candidate,  either  directly or  indirectly  through  another
      intermediary,

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      not already having a preexisting  relationship with the Company, with whom
      Company, or its nominees,  ultimately acquires or causes the completion of
      such  acquisition,  Company  agrees  to  compensate  Consultant  for  such
      services  with  a  "finder's  fee"  in the  amount  of 2% of  total  gross
      consideration  provided  by such  acquisition,  such fee to be  payable in
      cash. This will be in addition to any fees payable by Company to any other
      intermediary,  if any, which shall be per separate  agreements  negotiated
      between Company and such other intermediary. It is specifically understood
      that Consultant is not or does it hold itself out be a Broker/Dealer,  but
      is  rather  merely  a  "Finder"  in  reference  to the  Company  procuring
      financing sources and acquisition candidates.  (Total fee for Liviakis and
      other commission not to exceed ten (10) percent).

               5.1 It is further understood that Company, and not Consultant, is
               responsible  to perform any and all due diligence on such lender,
               equity  purchaser or  acquisition  candidate  introduced to it by
               Consultant under this Agreement, prior to Company receiving funds
               or  closing  on any  acquisition.  However,  Consultant  will not
               introduce any parties to Company about which  Consultant  has any
               prior knowledge of questionable, unethical or illicit activities.

               5.2 Company agrees that said  compensation to Consultant shall be
               paid in full at the time said financing or acquisition is closed.
               Moreover, said compensation, will be a condition precedent to the
               closing  of such  financing  or  acquisition  and  Company  shall
               execute  any  and  all   documents   necessary   to  effect  said
               compensation.

               5.3 As  further  consideration  to  Consultant,  Company,  or its
               nominees,  agrees  to  pay  with  respect  to  any  financing  or
               acquisition  candidate  provided  directly or  indirectly  to the
               Company by any lender or equity purchaser covered by this Section
               5. during the period of one year from the date of this Agreement,
               a fee to Consultant equal to that outlined in Section "5" herein.

             5.4 Consultant  will notify Company of  introductions  it makes for
             potential  sources of financing or  acquisitions in a timely manner
             (within  approximately 3 days of introduction)  via facsimile memo.
             If Company has a  preexisting  relationship  with such  nominee and
             believes  such party should be excluded from this  Agreement,  then
             Company will notify  Consultant within 5 days or sooner if possible
             of such circumstances via facsimile memo.

    6.   Expenses.  Consultant agrees to pay for all its expenses (phone,
    mailing, labor, etc.), other than extraordinary items (travel required by/or
    specifically requested by the Company, luncheons or dinners to large groups
    of investment professionals mass faxing to a sizable percentage of the
    Company's constituents, investor conference calls, print advertisements in
    publications, etc.) approved by the Company prior to its incurring an
    obligation for reimbursement.

    7.  Indemnification  The  Company  warrants  and  represents  that  all oral
    communications,  written  documents or materials  furnished to Consultant by
    the Company with respect to financial affairs, operations, profitability and
    strategic  planning of the Company are accurate and Consultant may rely upon
    the accuracy  thereof without  independent  investigation.  The Company will
    protect,  indemnify  and hold  harmless  Consultant  against  any  claims or
    litigation including any damages,  liability, cost and reasonable attorney's
    fees  as  incurred  with  respect   thereto   resulting  from   Consultant's
    communication  or  dissemination  of  any  said  information,  documents  or
    material not designated by the Company to the  Consultant as  "confidential"
    or "Company private", excluding any such claims or litigation resulting from
    Consultant's  communication  or dissemination of information not provided or
    authorized by the Company.

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    8.  Consultant  represents  that it Is not required to maintain any licenses
    and  registrations  under  federal  or any state  regulations  necessary  to
    perform the services set forth herein.  Consultant acknowledges that, to the
    best of its knowledge,  the performance of the services set forth under this
    Agreement  will not violate any rule or provision of any  regulatory  agency
    having  jurisdiction over Consultant.  Consultant  acknowledges that, to the
    best of its knowledge, Consultant and its officers and directors are not the
    subject  of any  investigation,  claim,  decree or  judgment  involving  any
    violation of the SEC or securities  laws.  Consultant  further  acknowledges
    that  it is  not a  securities  Broker  Dealer  or a  registered  investment
    advisor.  Company  acknowledges that, to the best of its knowledge,  that it
    has not  violated  any rule or provision  of any  regulatory  agency  having
    jurisdiction over the Company. Company acknowledges that, to the best of its
    knowledge, Company is not the subject of any investigation, claim, decree or
    judgment involving any violation of the SEC or securities laws.

             9. Legal Representation.  The Company acknowledges that it has been
             represented  by  independent  legal  counsel  with  respect to this
             Agreement.  Consultant  represents  that they have  consulted  with
             independent  legal  counsel  and/or  tax,  financial  and  business
             advisors, to the extent the Consultant deemed necessary.

                10Status  of  Independent  Contractor.  Consultant's  engagement
    pursuant to this Agreement shall be as independent contractor, and not as an
    employee,  officer  or other  agent of the  Company.  Neither  party to this
    Agreement  shall represent or hold itself out to be the employer or employee
    of the other.  Consultant  further  acknowledges the consideration  provided
    herein  above is a gross amount of  consideration  and that the Company will
    not withhold from such consideration any amounts as to income taxes,  social
    security payments or any payroll taxes. All such income taxes and other such
    payments  shall be made or provided for by Consultant  and the Company shall
    have no responsibility or duties regarding such matters. Neither the Company
    or the Consultant possess the authority to bind each other in any agreements
    without the express written consent of the entity to be bound.

               11.Attorney's  Fee.  If any legal  action or any  arbitration  or
      other proceeding is brought for the enforcement or  interpretation of this
      Agreement,   or  because  of  an  alleged  dispute,   breach,  default  or
      misrepresentation  in connection  with or related to this  Agreement,  the
      successful  or  prevailing  party shall be entitled to recover  reasonable
      attorney's  fees and  other  costs  in  connection  with  that  action  or
      proceeding,  in  addition  to any other  relief to which it or they may be
      entitled.

      12. Waiver The waiver by either party of a breach of any provision of this
      Agreement by the other party shall not operate or be construed as a waiver
      of any subsequent breach by such other party.

      13. Notices, All notices,  requests,  and other  communications  hereunder
      shall be deemed to be duly given if sent by U.S.  mail,  postage  prepaid,
      addressed to the other party at the address as set forth herein below-.

                                 To the Company:   Swissray International, Inc.
                                            Ruedi G. Laupper, CEO
                                            200 East 32@ Street, Suite 34-B
                                            New York, NY 10016

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                  To the Consultant;     Liviakis Financial Communications, Inc.
                                            John M. Liviakis, President
                                            2420 ""K" Street, Suite 220
                                            Sacramento, CA 95816

              It is understood that either party may change the address to which
      notices for it shall be addressed  by  providing  notice of such change to
      the other party in the manner set forth in this paragraph.

      14.         Choice of Law, Jurisdiction of Venue.. This Agreement shall be
      governed by, construed and enforced in accordance with the laws of the
      State of California. The parties agree that Sacramento County, CA, will be
      the venue of any dispute and will have jurisdiction over all parties.

      15.  Arbitration  Any  controversy  or claim arising out of or relating to
      this Agreement,  or the alleged breach thereof or relating to Consultant's
      activities  or  remuneration  under  this  Agreement,  shall be settled by
      binding arbitration in New York in accordance with the applicable rules of
      the American Arbitration  Association,  and judgment on the award rendered
      by the arbitrator(s) shall be binding on the parties and may be entered in
      any court having jurisdiction thereof. The provisions of Title 9 of Part 3
      of the California Code of Civil Procedure,  including section 1283.05, and
      successor  statutes,  permitting  expanded discovery  proceedings shall be
      applicable to all disputes that are arbitrated under this paragraph.

      16.  Definition of Company,  Wherever the term Company  appears insofar as
      same relates to Company approvals and/or Company requests, such term shall
      refer to the approval  and/or  request of Ruedi G. Laupper,  President and
      CEO of the  Company or his  designee  (as must be  evidenced  by  document
      executed by Ruedi G. Laupper).

      17. Option to Extend Term of Consultancy  Consultant grants to Company the
      option (in Company's sole discretion) to extend this Consulting  Agreement
      for an  additional  period  of one  year  commencing  March  29,  2000 and
      terminating   March   28,   2001   under  the  same   terms,   conditions,
      responsibilities,  warranties and agreements as are contained  herein with
      the sole  exception  being  that  paragraph  4.1 to the  section  entitled
      "Remuneration"  shall be  revised so as to reflect  the  agreement  of the
      parties hereto that the  remuneration  to be provided for such second year
      shall be $630,000.  Such remuneration  shall be paid in restrictive shares
      of Common Stock with the number of shares to be determined  based upon the
      ten (10) day average closing bid price for the 10 consecutive trading days
      preceding  March  29,  2000.  In order  for the  Company  to  extend  this
      Agreement in accordance  with the terms and conditions of this  paragraph,
      notification must be sent by the Company to Consultant within no less than
      two (2) weeks prior to the termination of this Agreement.

      18. Complete Agreement This Agreement contains the entire agreement of the
      parties relating to the subject matter hereof.  This Agreement and its
      terms may not be changed orally but only by an agreement in writing signed
      by the party against whom enforcement of

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      any waiver, change, modification, extension or discharge is sought.

                AGREED TO:

                "Company"                   SWISSRAY INTERNATIONAL, INC.

                Date: ___________            By: ___________________________
                                   Ruedi G. Laupper, Chief Executive Officer

                "Consultant"           LIVIAKIS FINANCIAL COMMUNICATIONS, INC.

     Date: ______________             By: ____________________________________
                                          John M. Liviakis, President

<PAGE>

                             VOTING TRUST AGREEMENT

        This  Agreement  is made as of  March  29,  1999 by and  among  SWISSRAY
International,  Inc., a New York corporation  ("Company"'),  Liviakis  Financial
Communications,   Inc.,  a   California   corporation   (""Stockholder"),   said
Stockholder being the holder of an aggregate of 3,000,000  outstanding shares of
Common Stock of the Company,  and Ruedi G. Laupper (the "Voting  Trustee") - all
in accordance  with the terms,  conditions  and intent  expressed in a March 29,
1999 Consulting Agreement between the Company and Stockholder.

        In consideration of the covenants hereinafter contained, it is agreed as
                    follows:
                    1. Applicable to Holder of Common Stock. Stockholder shall
                    immediately  assign,  transfer  and  deliver  to the  Voting
Trustee at the Company's  office in New York,  New York all of its right,  title
and interest in and to the 3,1000,000 shares of Company's Common Stock (the "LFC
Common Stock") issued to it in accordance with terms and conditions of March 29,
1999 Consulting Agreement referred to above.  Stockholder shall accept in return
therefor a trust certificate issued under Section 2 hereof.

               Neither  the  Stockholder  nor any other  person who  becomes the
holder of Trust Certificates hereunder shall withdraw shares of LFC Common Stock
from the Voting Trust pursuant to Section 8 hereof other than in connection with
sales and other transfers of beneficial  ownership of shares of LFC Common Stock
that,  pursuant to the provisions of Rule 144  promulgated  under the Securities
Act of 1933, as amended (or any successor rule or  regulation),  would be deemed
not to be part of a distribution of such securities by an underwriter.

               2. Trust Certificates to be Issued. The Voting Trustee shall hold
pursuant  to the terms of this  Agreement  all LFC Common  Stock  which shall be
delivered to him  hereunder.  In exchange for the LFC Common Stock  delivered to
him  hereunder,  the Voting Trustee will cause to be issued and delivered to the
Stockholder   Common  Stock  trust   certificates   ("Trust   Certificates")  in
substantially the form set forth in Annex I hereto.

                3.         Stock in Name of Voting Trustee. The Voting Trustee
shall cause the LFC Common Stock deposited with him hereunder to be recorded on
the books of the Company in the name of the Voting Trustee as Voting Trustee
under this Agreement.

<PAGE>

               4.  Power to Vote and to  Consent.  Until the  earlier of (a) the
actual  delivery of stock  certificates  or other  securities  to the holders of
Trust  Certificates  in exchange for Trust  Certificates or (b) such time as the
stock  certificates  or other  securities  deposited  hereunder  shall have been
transferred  out of the name of the  Voting  Trustee  as holder of  record,  the
Voting Trustee shall have the full and  unqualified  right and power to vote and
to execute  consents  with  respect to all shares of stock and other  securities
having  voting  power held by him at all  meetings of  stockholders  or security
holders for any purpose.

               5.  Cash  Dividends.  (a)  Until  the  actual  delivery  of stock
certificates  or  other  securities  to the  holders  of Trust  Certificates  in
exchange for Trust  Certificates,  the holder of each Trust Certificate shall be
entitled to receive from time to time payment of any dividends or  distributions
of cash or  property  (other  than  securities  subject  to  Section  11 hereof)
collected  by the Voting  Trustee  upon the number of shares at the time held in
trust  hereunder.  The Voting Trustee may in his discretion,  from time to time,
instead of receiving  and  distributing  any such  dividends  or  distributions,
authorize  the  Company to make  payment or  delivery  thereof  directly  to the
holders of Trust Certificates and (b)  notwithstanding  anything to the contrary
as may be contained herein, Stockholder shall not bear any costs associated with
this Agreement.  Further, in addition to dividend rights, Stockholder shall also
retain all other rights and benefits of share ownership with the sole exception,
as  heretofore  indicated,  of voting rights which shall pass through the Voting
Trustee to the Voting Trust Certificate holder.

               6. Transfer.  The Trust Certificates issued by the Voting Trustee
hereunder  may be  transferred  on the  books  of the  Voting  Trustee  upon the
surrender of such  certificates  properly  endorsed by, the  registered  holders
thereof,  in person  or by  attorney  duly  authorized,  according  to the rules
established for such purpose by the Voting Trustee.

                Every transferee of a Trust  Certificate or Certificates  issued
hereunder  shall by the  acceptance of such Trust  Certificate  or  Certificates
become a party hereto with like effect as though an original party fiereto,  and
shall be included  within the meaning of the term  "Stockholder"  wherever  used
herein.

                In connection  with, and as a condition of, making or permitting
any  transfer or delivery of stock  certificates  or other  securities  or Trust
Certificates  under any  provision  of this  Agreement,  the Voting  Trustee may
require the payment of a sum  sufficient  to pay or reimburse  him for any stamp
tax or other  governmental  charge in connection  therewith.  Such sums shall be
paid by the Company.  The transfer books for Trust Certificates may be closed by
the Voting  Trustee at any time  prior to the  setting of a record  date for the
payment or distribution of dividends, or

<PAGE>

for any other purpose;  or the Voting  Trustee,  in his  discretion,  in lieu of
closing the transfer books, may fix a date as the day as of which the holders of
Trust  Certificates  entitled to such payment or  distribution or for such other
purpose shall be determined.

                7. Authority and Liability of Voting Trustee. The Voting Trustee
shall be fully  authorized  and  empowered to construe this  Agreement,  and his
construction  of the same  made in good  faith  shall be final,  conclusive  and
binding  upon  all  holders  of  Trust  Certificates  and on all  other  parties
interested.

               The  Voting  Trustee  shall  not  incur  any   responsibility  as
Stockholder,  trustee or otherwise by reason of any error of judgment or mistake
of law or other mistake, or for any act or omission of any agent or attorney, or
for any  misconstruction of this Agreement,  or for any action of any sort taken
or omitted  hereunder  which is  believed  by him to be in  accordance  with the
provisions  and intent  hereof  and is  otherwise  made or taken in good  faith,
except for wilful misconduct or gross negligence.

               The Voting Trustee may employ counsel (who may be counsel for the
Company) and agents, whose reasonable expenses and compensation shall be paid by
the Company.

               The Voting  Trustee  may act as, and receive  compensation  as, a
director,  officer,  agent or member of any committee of the Company,  or of any
affiliated  entity;  and he,  or any firm of which  he may be a  member,  or any
corporation  or  association  of  which  he may be a  stockholder,  director  or
officer,  or any  such  firm,  corporation  or  association  in  which he may be
otherwise directly or indirectly interested, may to the extent permitted by law,
and without  liability in any way or under any  circumstances by reason thereof,
contract with the Company, or be or become pecuniarily  interested in any matter
or  transactions to which the Company may be a party or in which the Company may
be a party or in which  the  Company  may in any way be  concerned,  as fully as
though he were not the Voting Trustee.

               The  Voting  Trustee  shall not be  required  to give any bond or
security for the discharge of his duties.

                The Voting Trustee may at any time resign by delivering to the

                                       -3-

Company his resignation in writing to take effect immediately.

               The  Voting  Trustee  may  be a  party  to  this  Agreement  as a
Stockholder,  and to  the  extent  of the  stock  deposited  by him or of  Trust
Certificates held by him, he shall

<PAGE>

be entitled in all respects to the same rights and benefits as Stockholder.

               The Voting  Trustee  may  execute  any or all Trust  Certificates
personally or by an agent  constituted  the agent of the Voting Trustee for such
purpose.  The Voting Trustee,  under such  regulations with respect to indemnity
and otherwise as he may, in his absolute discretion,  prescribe, may provide for
the  issue  and  delivery  of  Trust  Certificates  in lieu of lost,  stolen  or
destroyed Trust Certificates or in exchange for mutilated Trust Certificates.

                8.  Transfers.  The  Stockholder  and any  transferees  of Trust
Certificates   relating  to  the  LFC  Common  Stock  (in  such  connection,   a
""Transferor")  may at any time in  connection  with the bona fide  transfer  of
beneficial  ownership of shares of LFC Common Stock exchange Trust  Certificates
for the  corresponding  shares of LFC Common  Stock.  In  theevent a  Transferor
proposes to transfer  beneficial  ownership of shares of LFC Common Stock to one
or more third parties,  the  Transferor  shall provide the Voting Trustee with a
written notice certifying such intention,  stating the number of shares proposed
to be  transferred,  and  indicating  the names of the  proposed  transferee  or
transferees or the name or the name of the brokerage firm through which the sale
of such shares of LFC Common Stock is to be effected.  The Voting  Trustee shall
by the end of the third  business day following the date on which such notice is
received by the Voting  Trustee  deliver to the  Transferor or the  Transferor's
designee  a  certificate  representing  the  LFC  Common  Stock  proposed  to be
transferred  (i)  registered  in the name of the Voting  Trustee and endorsed in
blank for transfer  with the  signature of the Voting  Trustee  guaranteed by an
'eligible  guarantor  institution"  as that  term  is  defined  in Rule  17Ad-15
promulgated  under  the  Securities  Exchange  Act of  1934,  as  amended,  (ii)
registered in the name of the Transferor,  (iii) registered in the name or names
of the transferee or transferees  specified by the Transferor in its notice,  or
(iv) registered in the name of the brokerage firm specified by Transferor in its
notice.  In the event the proposed  transfer is not effected  within thirty (30)
days of the date the  certificate  representing  the shares of LFC Common  Stock
proposed to be  transferred is delivered by the Voting  Trustee,  the Transferor
shall cause the  certificates  representing  the shares of LFC Common Stock that
were to have been the  subject of the  transfer  to be  delivered  to the Voting
Trustee for  re-registration  in the name of the Voting  Trustee in exchange for
Trust Certificates pursuant to this Voting Trust

Agreement.

             9.         Compensation, Indemnity and Expenses. The Voting Trustee
shall not be entitled to compensation for services but shall be entitled to
indemnity

<PAGE>

against any and all expenses and liabilities  incurred by him in connection with
or  growing  out of this  Agreement  or the bona fide  discharge  of his  duties
hereunder;  and he shall be entitled to receive such  indemnity from the Company
against all such claims,  expenses and liabilities.  The Company shall be deemed
to be fully  entitled,  by action of the board of directors  of the Company,  to
assume or provide  otherwise for payment of any and all expenses and liabilities
incurred  by the  Voting  Trustee  in  connection  with or  arising  out of this
Agreement.

                10. Taxes.  If at any time the Voting  Trustee is of the opinion
that any tax or governmental charge is payable in respect of any shares of stock
or other  securities  held by him  hereunder,  or in respect  of any  dividends,
distributions  or other rights arising from or appurtenant to the subject matter
of this  Agreement,  the Voting  Trustee  may, but shall not be required to, pay
such tax or  governmental  charge,  and the Voting  Trustee shall be entitled to
reimbursement for such payments solely from the Company.

                11.  Applicability  to  Other  Securities.  The  terms  of  this
Agreement shall apply to shares of any class of voting  securities issued by the
Company,  including  shares  issued as a stock  dividend or stock  split,  or in
exchange  for shares  subject  to the terms and  conditions  of this  Agreement,
whether  by  way  of  reorganization,  reclassification  or  other  means.  Such
securities  shall be deposited  with the Voting  Trustee and Trust  Certificates
therefor shall be issued to the Stockholder. 1

                12. Duration and  Termination.  This Agreement shall continue in
force  throughout the period of time that  Stockholder  remains  thel'beneficial
owner of any  portion of the  3,000,000  shares of Common  Stock of the  Company
issued to it pursuant to the  aforesaid  Consulting  Agreement but the Agreement
shall  only  apply  to  such  portion  of  the  3,000,000   shares  retained  by
Stockholder.  In addition,  this Agreement shall terminate in the event that the
Voting Trustee at any time resigns under Section 7 hereof or otherwise ceases to
serve as Voting Trustee hereunder.

               On the termination of this Agreement,  the Voting Trustee (or his
executor,  conservator  or other  personal  representative  if he is  unable  to
perform  personally his  responsibilities  hereunder),  in exchange for and upon
surrender of Trust Certificates then outstanding, will deliver or czfuse to be

                                       -5-

delivered  to the holders  thereof the shares of stock and any other  securities
then  held  by  the  Voting   Trustee  which  are   represented  by  guch  Trust
Certificates.

<PAGE>

                13.  Acceptance.  The Voting  Trustee  hereby  accepts the trust
hereunder subject to all the terms, conditions and reservations herein contained
and agrees  that he will  exercise  the powers and  perform the duties of Voting
Trustee as herein set forth;  provided,  however,  that nothing herein contained
shall be construed to prevent the Voting  Trustee from at any time resigning and
discharging  himself  from the trust  aforesaid  in  accordance  with  Section 7
hereof.

                14.  Continuation  of Rights as Record  Holder.  Nothing in this
agreement  contained  shall be  construed  to deprive the Voting  Trustee of the
right as record holder of any of the shares of stock or other  securities at any
time  held  hereunder  to vote the same and to  execute  consents  with  respect
thereto,  notwithstanding the termination of this Agreement, so long as he shall
be or shall  continue  to be  record  holder  of such  shares  of stock or other
securities.

                15. Definition of "Company". The term "Company" for the purposes
of this Agreement and of all rights hereunder,  including the issue and delivery
of stock,  shall be taken to mean  SWISSRAY  International,  Inc., a corporation
organized  and  existing  under  the  laws  of the  State  of New  York,  or any
corporation  or  corporations  successor  to  it,  and  in  the  event  of  such
succession,  the  shares of the  successor  corporation  received  by the Voting
Trustee  shall  be held  by him in  lieu of the  shares  of  stock  of  SWISSRAY
International, Inc. deposited hereunder and in all respects subject to the terms
and  conditions  of this  Agreement.  If the  Company  is  acquired  by  another
corporation or other entity,  this Agreement  shall  terminate.  For purposes of
this  Agreement,  the Company will be considered to have been acquired when as a
result of a business  combination  the  shareholders  of the  Company,  in their
capacity as such, own less than fifty percent of the outstanding equity interest
in the surviving or successor entity.

 16.        Notices. All notices to the Company, the Voting Trustee and the
holders of Trust Certificates shall be deemed given (i) when personally
delivered, (ii) one business day after delivered to an overnight delivery
service of national  reputation for delivery  pursuant to its "next day"
service,'(iii) three  business  days after  deposit in the United  States mail
 (registered  or certified,   prepaid,  return  receipt  requested),  or  (iv)
 upon  receipt  of answer-back confirmation of delivery of a facsimile
transmission.  Any notice so " iven shall 9

                                       -6-

<PAGE>

be taken and considered as though  personally  served on the parties to which it
was directed, including the Company, the Voting Trustee, the Stockholder and any
other holder of a Trust  Certificate,  and notice given utilizing one or more of
the methods specified above shall be the only notice required tc5 be given under
any provision of this Agreement. Notice to the Company and to the Voting Trustee
shall be directed to them,  respectively,  at the principal executive offices of
the Company  (and to any  facsimile  number  maintained  at such  offices),  and
notices to the registered  holders of Trust  Certificates.  shall be directed to
them at the  addresses  furnished  by such holders  respectively,  to the Voting
Trustee  (and  to any  facsimile  number  maintained  by  such  holders  at such
locations);.  Any party may change  the  address  or  facsimile  number to which
notices to such party shall be  directed by giving  notice of such change to the
other parties hereto in the manner aforesaid.

                17. Copies and  Inspection.  Copies of this  Agreement  shall be
filed in the principal office of the Company and in the registered office of the
Company  in the State of New York,  and shall be open to the  inspection  of any
Stockholder of the Company or of any Trust  Certificate  holder  hereunder daily
during business hours.

                18.  Severability.  Whenever  possible,  each  provision of this
Agreement  will be interpreted in such manner as to be effective and valid under
applicable  law, but if any provision of this Agreement is held to be prohibited
by or invalid under  applicable law, such provision will be ineffective  only to
the extent of such prohibition or invalidity, without invalidating the remainder
of such provision or this Agreement.

                19.        Counterparts. This Agreement may be executed in
counterparts, each of which so executed shall be deemed to be an original, and
such counterparts shall together constitute one and the same instrument.

                20.        Amendment. This Agreement may be amender by the
written consent of the Voting Trustee and the holders of record of Trust
Certificates representing all of the shares then deposited with the Voting
Trustee pursuant to said agreement.

                21.        Governing Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York.

                22.        Controlling Terms. If and to the extent that there
are any discrepancies or differences between this Voting Trust Agreement and the
Consulting Agreement entered into between SWISSRAY International, Inc. and

                                       -7-

<PAGE>

  shares of Company Common Stock being issued,  then in that event,  and in that
  event only, the terms and conditions  contained in such  Consulting  Agreement
  and the intent expressed  therein shall take precedence over those conflicting
  (if any) terms and conditions as are contained in this Voting Trust Agreement.

                 IN WITNESS  WHEREOF,,  the Voting  Trustee and the Company have
  executed this  Agreement as of the date first written above,  and  Stockholder
  has signed a counterpart of this Agreement and  transferred  and delivered its
  shares of stock to the Voting Trustee.

                                                 VOTING TRUSTEE

                Dated:     March 29, 1999
                                            -----------------
                       Ruedi G. Laupper
                                            SWISSRAY International, Inc.
                      By:____________________
                         Its: Josef Laupper, Secretary

                                             By: ___________________
                                                   Its-Michael Laupper, Interim
                                                     Chief Financial Officer

<PAGE>

  STOCKHOLDER:
                  Each party hereto signing as a Stockholder  hereby assigns and
  transfers  unto the  Voting  Trustee  the  shares of the  Common  Stock of the
  Company  owned  by it  and  identified  as to  the  number  of  shares  in the
  appropriate place opposite its signature.
                                                           Number of Shares
             Name                   Signature           Deposited Hereunder

-LIVIAKIS FINANCIAL
COMMUNICATIONS,INC.       By:        _______________                   3,000,000
                                                     John L. Liviakis, President

<PAGE>

ANNEX I
                        FORM OF VOTING TRUST'CERTIFICATE

                            Voting Trust Certificate
                          SWISSRAY International, Inc.

No. I of I      Livia.kis Financial Communications, Inc.     3,000,000 Shares
                                       Stockholder

               This is to certify that there have been deposited with the Voting
Trustee under the Voting Trust Agreement hereinafter mentioned, certificates for
the number of shares,  $.0l par value per share, of the Common Stock of SWISSRAY
International,  Inc., a New York corporation (hereinafter Failed the "Company"),
set out above,  and that the person  named above is entitled to all benefits and
interest  specified in said Voting Trust  Agreement  arising from the deposit of
such shares thereunder.

               Subject  to  Agreement.  This  certificate  is  issued  under and
pursuant to, and the rights of the holder  hereof are subject to and are limited
by, the terms and  conditions of a certain Voting Trust  Agreement,  dated as of
March 29,  1999,  copies of which  are on file at the  registered  office of the
Company in the State of New York and at the  Company's  office in New York,  New
York.

               Term.  The  Voting  Trust   Agreement  shall  continue  in  force
throughout the period of time that  Stockholder  remains the beneficial owner of
any portion of the 3,000,000  shares of Common Stock of the Company issued to it
pursuant to the aforesaid  Consulting  Agreement  but the  Agreement  shall only
apply to such portion of the 3,000,000 shares retained by Stockholder.

               Amendment.  The  Voting  Trust  Agreement  may be  amended by the
written  consent  of the  Voting  Trustee  and the  holders  of  record of Trust
Certificates  representing  all of the  shares  then  deposited  with the Voting
Trustee pursuant to said agreement.

               SEE REVERSE SIDE FOR RESTRICTIONS ON TRANSFER AND
CIRCUMSTANCES UNDER WHICH THIS CERTIFICATE MAY BE CANCELLED.

               IN  WITNESS  WHEREOF.,  the  Voting  Trustee  has  executed  this
certificate as of the 29th day of March, 1999.

                                            By:______________________
                                                              Ruedi G. Laupper

<PAGE>

                                (The        following legend is to appear on the
                                            reverse side of the certificate.)

               THE SECURITIES  REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 (THE "ACT") OR UNDER ANY STATE SECURITIES LAW AND MAY
NOT BE SOLD,  TRANSFERRED  OR DISPOSED OF EXCEPT IN COMPLIANCE  WITH THE ACT AND
ANY APPLICABLE  STATE  SECURITIES LAW. THE TRUSTEE  RESERVES THE RIGHT TO REFUSE
THE TRANSFER, OF SUCH SECURITIES UNLESS SUCH SECURITIES ARE REGISTERED UNDER THE
ACT AND UNDER ANY  APPLICABLE  STATE  SECURITIES  LAWS OR UNLESS THE TRUSTEE HAS
RECEIVED A SATISFACTORY  LEGAL OPINION TO THE EFFECT THAT SUCH  REGISTRATION  IS
NOT REQUIRED.Swissray [LOGO]

   ----------------
   Swissray Medical Systems, Inc.
   a company of Swissray International, Inc.

 AUTHORIZED DISTRIBUTOR AGREEMENT

     THIS AGREEMENT (the  "Agreement")  is made effective the day of, 19, by and
between  Swissray  America,  Inc.  an  ______________  corporation,  having  its
principal  place of  business  at 5801  Soundview  Drive,  Suite 50, Gig Harbor,
Washington  98335 (which with its successors  and assigns is hereinafter  called
"Swissray") and

MEDIKA EQUIPOS MEDICOS, INC.
-------------------------------------------------------------------
(Distributor's Full Legal Name)

Corporation
-------------------------------------------------------------------
(state whether an individual, partnership or corporation)

Puerto Rico
-------------------------------------------------------------------
(if a corporation, show name of state in which incorporated)

__________________, having its principal place of business at
(DBA, if different from legal name)

PO Box 360888
-------------------------------------------------------------------
                                (Street Address)

San Juan PR  00936-0888
-------------------------------------------------------------------
(City/Town)                     (State)                              (Zip)

(which,  with its  successors  and  permitted  assigns,  is  hereinafter  called
"Distributor").

                                   BACKGROUND

     A.  Swissray is engaged in, among other  things,  the design,  development,
manufacture,  sale and distribution of high quality diagnostic imaging equipment
to the medical profession,  hospitals, clinics, national accounts and government
purchasers and has  established a quality image and goodwill among  consumers in
the diagnostic imaging marketplace.

     B. Swissray  desires to appoint a limited  number of  Distributors  to sell
certain Swissray products and accessories thereto (hereinafter  individually and
collectively called "Swissray  Products" or "Products").  Distributor desires to
be appointed as an  authorized  Swissray  Distributor,  and hereby  warrants and
represents to Swissray that it shall at all times meet each of its  requirements
and obligations set forth in this Agreement.

     C.  Based  upon  the  foregoing,  and in  reliance  thereon,  Swissray  and
Distributor agree as follows:

     Swissray Medical Systems, Inc.
     5801 Soundview Drive. Suite 50
     Gig Harbor, WA 98335, USA
     Phone  353 858 3330
     Fax 253 858 2777

<PAGE>

     2.6 Consumer Relations and Trade Practices.

          2.6.1 Distributor shall conduct its business operations in such manner
     so as to promote good customer relations.

          2.6.2  Distributor shall at no time engage in "bait and switch" or any
     other unfair or deceptive trade practice with respect to Swissray Products,
     and  shall  make  no  false,  misleading  or  disparaging   representations
     concerning Swissray or the Products in advertisements or otherwise.

          2.6.3 Distributor shall make no representations to customers or to the
     trade with respect to the  specifications or features of Swissray Products,
     except such as may be approved in writing or published by Swissray.

          2.6.4  Distributor  shall  advise  Swissray  promptly  concerning  any
     information  that may come to its  attention as to charges,  complaints  or
     claims about Swissray Products by Distributor's customers or other persons.

          2.6.5  Distributor will not imitate  Swissray  products or infringe in
     any way upon  Swissray's  trademarks,  trade  dress  or other  intellectual
     property,  and will not involve itself in any way in the sale of imitations
     of Products or the sale of any  Swissray-brand  products  not  intended for
     sale in the United States (i.e., gray market goods).

     2.7 Distributor Reports.

     From time to time  Swissray may ask  Distributor  to prepare and forward to
Swissray reports relevant to Distributor's business regarding Swissray Products.
All reports  submitted  by  Distributor  will become the  property of  Swissray.
Swissray will use reports submitted by Distributor only for Swissray's  internal
purposes in connection  with this Agreement and for no other  purpose.  Swissray
shall not  disclose  such  reports  to third  parties  except  its  professional
advisors and then only in connection with this Agreement.

     2.8 Compliance with Laws.

     Distributor  and Swissray shall comply with all applicable  federal,  state
and local laws and regulations in performing its duties  hereunder and in any of
its dealings with Swissray Products.

3    SUPPORT BY SWISSRAY

     Swissray shall provide Distributor with support, as follows:

     3.1 Swissray shall maintain such promotional programs as it believes in its
sole, absolute judgment will enhance the sale of the Products.

     3.2 Swissray  shall,  from time to time,  make sales  literature  and other
promotional materials available to Distributor.

                                      -4-
<PAGE>

     3.3 Swissray shall maintain a network of authorized service centers,  which
shall provide both in-warranty and out-of-warranty services to consumers.

     3.4 Swissray shall,  as may be necessary or appropriate  from time to time,
provide technical assistance to Distributor concerning Swissray Products.

     3.5 From time to time  Swissray may suggest the level of resale  pricing of
Products. However, Distributor's resale prices, and its sales policies, shall be
established solely by Distributor, and Swissray, its employees and agents retain
no control of such resale prices or sales policies.

4    GOVERNING TERMS AND CONDITIONS; PRICES, ORDERING AND FINANCIAL REQUIREMENTS

     4.1 For  purposes of this  Agreement,  "Terms of Sale" shall mean the terms
set forth in Exhibit C,  annexed  hereto,  and found on the reverse side of each
Swissray  invoice,  as such  Terms  of Sale  may be  replaced,  supplemented  or
modified,  and "Price  Schedules"  shall mean the  Swissray  Confidential  Price
Schedules as are issued and replaced, supplemented or modified from time to time
by Swissray.  The Terms of Sale, Price Schedules are collectively referred to as
the  "Terms  and  Prices."  The  terms and  conditions  solely  and  exclusively
governing  the  relationship  of the parties to this  Agreement  and the sale of
Products to  Distributor  will be as set forth in this Agreement and in both the
Swissray Terms of Sale, and Price  Schedules,  as applicable.  The provisions of
this Agreement and the Terms and Prices are cumulative.  Nevertheless, except as
specifically  stated in this Agreement to the contrary,  and except with respect
to  this  paragraph  4.1  which  shall  be  paramount,   in  the  event  of  any
irreconcilable  conflict  between this  Agreement and the Terms and Prices,  the
latter will prevail.

     4.2 From time to time,  Swissray may issue policies relating to the sale of
Products  including,  without  limitation,  policies  covering  credit  matters,
product repair or replacement or product returns; it may also issue from time to
time special programs  containing terms and conditions of sale which temporarily
add to or deviate in part or in whole from the Terms and Prices. Such additional
or different  terms and  conditions,  while in effect,  supersede  the Terms and
Prices to the extent of any  conflict  with them.  Upon their  issuance,  and as
replaced,  supplemented  or  modified,  such  policies  and such  additional  or
different terms and conditions will be deemed a part of the Terms and Prices and
will be binding upon Swissray and  Distributor  with respect to orders  accepted
after their issuance.

     4.3 Distributor will,  purchase  Products at Swissray's  standard prices as
set forth in the Price Schedules in effect at the time the order is placed, less
all  applicable  discounts and  allowances as set forth in the Terms and Prices.
Prices,  less such  discounts and  allowances,  shall be set forth on Swissray's
invoice to Distributor.  Notwithstanding  anything to the contrary,  all prices,
discounts and  allowances  are subject to change by Swissray upon their issuance
and without advance notice.

     4.4  Distributor  will order  Products  from  Swissray in  accordance  with
ordering  procedures  established  by Swissray  from time to time.  All purchase
orders must be submitted by Distributor in writing to Swissray's sales

                                       -5-
<PAGE>

representative  or,  if a sales  representative  is not  involved,  directly  to
Swissray. Telephone purchase orders must be confirmed in writing. All orders are
subject to acceptance in writing at Swissray's principal place of business.  Any
shipment of Products to  Distributor  in whole or in partial  fulfillment of any
purchase order of Distributor  will not be deemed to constitute an acceptance by
Swissray of any of the terms and conditions of such purchase order, except as to
identification  of  Products  and  the  quantities  involved,  unless  otherwise
expressly  agreed to in  writing by  Swissray.  Swissray  reserves  the right to
accept or reject  orders in whole or in part in its sole,  absolute  discretion.
Swissray  shall also have the right in its sole,  absolute  discretion to cancel
any   backorders   even  if  such  orders  have  been  accepted   previously  by
acknowledgment, partial shipment or otherwise.

     4.5 Distributor  represents and warrants to Swissray that it is in good and
substantial  financial  condition  and is able to pay all  bills  when  due.  At
Swissray's request, Distributor shall furnish financial statements or additional
information as may be necessary or  appropriate to enable  Swissray to determine
Distributor's creditworthiness.

     4.6 Sales  will be made on the  credit  terms in effect at the time that an
order is accepted.  Swissray shall have the right to establish credit limits for
Distributor.  If Distributor  becomes delinquent in payment obligations or other
credit or financial requirements  established by Swissray, or, if in the opinion
of Swissray,  Distributor's  credit becomes impaired,  Swissray may from time to
time at its sole,  absolute  discretion,  in  addition to any rights or remedies
provided by  applicable  law or the Terms of Sale,  alter  Distributor's  credit
limits (or other financial  requirements  established by Swissray) and take such
actions as it may deem necessary to protect its financial position.

     4.7  Swissray's   standard   terms  and  conditions   shall  apply  to  all
transactions. (See attached Swissray Terms and Conditions)

5    CHANGES IN PRODUCTS, PARTS OR POLICIES

     Unless otherwise provided by applicable laws, Swissray may at any time add,
change or cease making  available any of the Products or parts  without  advance
notice to  Distributor,  and  Swissray  shall not be liable to  Distributor  for
failure to furnish the Products or parts of the model, design or type previously
sold.

6    DURATION OF AGREEMENT AND TERMINATION

     6.1 Unless  earlier  terminated as provided  below,  this  Agreement  shall
remain  in effect  from one (1) year next  following  the date upon  which  this
Agreement  becomes  effective as set forth on the first page of this  Agreement.
This  Agreement  may be renewed for one or more  one-year  periods if each party
hereto  gives  written  notice of such  intent to the other  party not less than
sixty (60) days prior to the  expiration of the initial or any renewal term. If,
after the  expiration of the initial or any renewal term,  the Agreement has not
been renewed as above provided, and if the parties nonetheless continue to

                                       -6-
<PAGE>

do business,  then the Agreement  will continue in effect  subject to all of its
terms and conditions  except that either party shall have the right to terminate
the  Agreement  with or without  cause,  for any  reason or for no reason,  upon
thirty (30) days written notice to the other party.

     6.2 This Agreement may be terminated prospectively as follows:

          6.2.1  Distributor  may terminate this Agreement at any time,  with or
     without  cause,  for any reason of for no reason,  on 30 days prior written
     notice to  Swissray  or upon 15 days prior  written  notice as  provided in
     paragraphs 1.01, 2.04(c), above, or 11.07, below.

          6.2.2 Swissray may terminate this Agreement as follows:

          6.2.2.1 Swissray may terminate this Agreement by giving Distributor 30
     days prior  written  notice in the event  Distributor  will have  failed to
     fulfill  or  perform  any  one  or  more  of  the  duties,  obligations  or
     responsibilities  undertaken by it pursuant to paragraphs 2, 5.06 and 11.01
     of this  Agreement and  paragraphs 2, 5 (except with respect to non-payment
     provided for in paragraph  7.02(b)(ii)(4),  below] and 6(c) of the Terms of
     Sale,  or in the event of any change of which  Distributor  is  required to
     notify Swissray pursuant to paragraph 11.09 of this Agreement,  except that
     Swissray may terminate  this Agreement upon 15 days prior written notice as
     provided in paragraph 2.04(c), above.

          6.2.2.2  Swissray may terminate this Agreement by giving  Distributor
     written notice, effective immediately, in any of the following events:

          6.2.2.2.1  If  Distributor  has  continued  in  default  of any  duty,
     obligation  or  responsibility  (other  than as provided  for in  paragraph
     7.02(b)(i),  above, or other than as provided for in this paragraph 7.02(b)
     (ii)] imposed on it by this  Agreement,  for 30 days after  Swissray  gives
     written notice to Distributor of such default;

          6.2.2.2.2 Any assignment or attempted assignment by Distributor of any
     interest in this  Agreement,  or any  violation  of  paragraph  8, below in
     connection with a bulk sale or transfer;

          6.2.2.2,3 If Distributor becomes insolvent, files or has filed against
     it a petition in bankruptcy,  makes a general assignment for the benefit of
     its creditors or has a receiver or trustee  appointed for its business or a
     substantial portion of its properties;

          6.2.2.2.4 If Distributor  defaults in the payment of any  indebtedness
     to Swissray  when and as the same becomes due and payable,  if such default
     has continued for a period of 10 days after written  notice of such default
     is given to Distributor; or

          6.2.2.2.5 If Distributor makes a material false representation, report
     or claim in connection with the business  relationship  of the parties,  or
     engages in fraud or criminal misconduct.

                                       -7-

<PAGE>

     6.3  Termination  of this Agreement by Swissray for cause or termination by
Distributor with or without cause shall automatically accelerate the due date of
all invoices for Swissray Products so that they shall become immediately due and
payable as set forth in paragraph 5 of the Terms of Sale on the  effective  date
of termination, even if longer terms had been previously agreed to.

     6.4  Termination  of this  Agreement  by either  party shall  automatically
cancel all open orders  without  liability.  In the event of termination of this
Agreement by either  party with  advance  notice,  Swissray  shall,  at its sole
option,  be  entitled  to  reject  all or  part  of  any  orders  received  from
Distributor  after  notice  but  prior  to the  effective  date of  termination.
Notwithstanding  any credit terms made  available to  Distributor  prior to that
time, any Swissray  Products  shipped during said final period shall be paid for
by certified or cashier's check prior to shipment.

     6.5 Within ten (10) days  following the effective  date of  termination  of
this  Agreement,  Distributor  shall  submit  to  Swissray  a list  of all  new,
undamaged and current Swissray Products owned by Distributor as of the effective
date of  termination.  Swissray  shall  have the  option in its  sole,  absolute
discretion to repurchase  (but shall not be obligated to repurchase)  any or all
of the Products upon  providing  written  notice of its intention to Distributor
within  thirty  (30)  days  after  receipt  of the  list  of the  Products  from
Distributor.  Upon  receipt of notice  that  Swissray  intends to  exercise  its
repurchase option,  Distributor will cause the Products selected by Swissray for
repurchase to be delivered to such place(s) in the United States as Swissray may
designate,  freight  pre-paid.  Swissray  shall  have the right to  inspect  all
returned  merchandise before  establishing  final disposition.  Upon inspection,
Swissray shall be entitled to reject and return to Distributor, freight collect,
any of the  Products  which,  in  Swissray's  sole,  absolute  judgment,  are in
unacceptable condition.  Distributor shall be credited for any accepted Swissray
Products at the lower of: (i) the net invoice  prices at which the Products were
originally purchased by Distributor, less any allowances which Swissray may have
given  Distributor  on  account  of the  Products;  or (ii) the  price  for such
Products prevailing at the effective date of termination of this Agreement, and,
in both cases, less the costs of repair,  refurbishing or repackaging, as may be
necessary,  and a minimum  fee for  restocking  equal to 15% of the net  invoice
price credited to Distributor for returned Products.

     6.6 Neither  Swissray nor Distributor  shall be liable to the other because
of the termination of this Agreement  (regardless of the circumstances  thereof)
for  compensation,  reimbursement  or  damages of any kind,  including,  without
limitation,  damages  because  of loss of  prospective  profits  or  because  of
expenditures,  investments,  leases or any other  types of  commitments  made in
connection  with the  business of either of them.  In the event of  termination,
Distributor shall remain liable for all outstanding invoices and unpaid accounts
and Swissray shall remain liable for all credits due to Distributor with respect
to requests for credit  submitted by Distributor  prior to termination or within
ninety (90) days thereafter.

     6.7 Upon termination of this Agreement, each party shall immediately:

                                       -8-
<PAGE>

          6.7.1 Discontinue any and all use of the trademark of the other party,
     including such use in advertising or business  materials of the other party
     (except as necessary to sell Products remaining in Distributor's  inventory
     after termination,  but in no event more than one hundred twenty (120) days
     after termination; and

          6.7.2  Remove  or  obliterate  any  and  all  signs  which   designate
     Distributor  as an  authorized  Swissray  Distributor  or which include any
     trademark of Swissray,  and cease holding  itself out, in any other manner,
     as an authorized Swissray Distributor; and

          6.7.3  Notify and instruct  publications  and others which may list or
     publish Distributor's name as an authorized Swissray Distributor (including
     telephone  directories,  yellow pages and other  business  directories)  to
     discontinue such listings.

7    ASSIGNMENT

     7.1 Distributor is appointed as an authorized Swissray  Distributor because
of Swissray's confidence in Distributor, which confidence is personal in nature.
Distributor may not assign, transfer or sell its rights under this Agreement (or
delegate  its  obligations  hereunder)  without  the prior  written  consent  of
Swissray, and any attempted assignment, transfer or sale (whether by transfer of
stock,  assets or  otherwise),  absent such written  consent,  shall be null and
void. Subject to these  restrictions,  the provisions of this Agreement shall be
binding  upon and shall inure to the benefit of the parties and their  permitted
assigns.

     7.2  Distributor  shall not sell or otherwise  transfer a major part of its
materials, supplies, merchandise or other inventory or a substantial part of its
equipment  in  connection  with a sale or transfer of  inventory  without  first
giving Swissray prior written notice as required by the Uniform  Commercial Code
and other applicable law.

     7.3  Distributor  shall not consummate any sale or transfer as set forth in
paragraph 7.2, above, unless  contemporaneously  therewith  Distributor pays all
sums due and payable to Swissray as determined in accordance with paragraph 5 of
the Terms of Sale, even if longer payment terms had been previously agreed to.

     7.4 If Distributor shall fail to pay to Swissray all monies due to Swissray
as provided in  paragraph  7.3,  above,  then  proceeds or other  consideration,
tangible or intangible, received by Distributors in connection with the transfer
described in paragraph 7.2,  above,  shall be deemed to be held by the recipient
of such  proceeds  in trust for the  benefit  of  Swissray  to the extent of the
amount due and payable to Swissray as provided in paragraph 7.3,  above.  If the
aforesaid  proceeds or other  consideration  from such sale or transfer  are not
received  directly by Distributor,  then  Distributor  shall cause the person or
other  legal  entity  receiving  such  proceeds  or  consideration  to hold such
proceeds or  consideration in trust for the benefit of Swissray to the extent of
the amount due and payable to Swissray as provided in paragraph 7.3,

                                       -9-
<PAGE>

above.  Such trust shall be subordinate  to a prior security  interest held by a
person financing all or substantially  all of  Distributor's  inventory.  In the
event that a trust arises  hereunder,  Distributor  shall give written notice of
such trust to the buyer or transferee of the materials, supplies, merchandise or
other inventory or equipment described in paragraph 7.2, above, and to Swissray.

     7.5 If Distributor  breaches any of its obligations  under this paragraph 7
and  Swissray is not paid the monies due as provided in  paragraph  7.3,  above,
then, in the event that Swissray chooses to pursue any rights it may have in any
forum in any  jurisdiction  to collect such monies from the  aforesaid  buyer or
transferee of Distributor, Distributor will indemnify and hold Swissray harmless
from and against any and all costs and expenses,  including, without limitation,
reasonable attorneys' fees in connection with such pursuit.

     7.6  Swissray  retains the right to assign  this  contract in the event the
Swissray is sold or merged.

8    MUTUAL RELEASE AND LIMITATIONS ON FUTURE CLAIMS

     8.1 Except as reserved in this paragraph 9.01, upon the mutual execution of
this Agreement, and any renewal thereof,  Swissray and Distributor hereby do and
shall release each other of and from all manner of action and actions, cause and
causes of action, suits, contracts,  controversies,  damages, claims and demands
whatsoever,  known or  unknown,  in law or in  equity,  whether  under  laws and
regulations of federal, state or municipal governments,  under the common law or
otherwise,  which such parties or their  respective  successors  or assigns ever
had, now have,  or which they or any of them  hereafter  can,  shall or may have
against the other party by reason of any matter,  cause or thing whatsoever from
the  beginning  or time  until the date  hereof.  Swissray  reserves  its rights
against  Distributor  for payment with respect to any  outstanding  invoices and
open  accounts  and with  respect to the  protection  of its  trademarks,  other
intellectual  property rights and goodwill,  and Distributor  reserves its right
against  Swissray for any unissued  credits,  for prior accruals for cooperative
advertising,   if   applicable,   for  matters   regarding  the   protection  of
Distributor's trademarks and other intellectual property and for matters arising
out of Swissray's Product liability.  All cooperative advertising claims must be
submitted in accordance with Swissray's cooperative advertising policy.

     8.2 Except as provided  below in this  paragraph  8.2,  both  Swissray  and
Distributor agree that any cause of action or claim hereafter arising out of the
relationship between Swissray and Distributor,  including any cause of action or
claim for alleged breach of this Agreement,  shall be barred unless  arbitration
(as  provided in  paragraph  10,  below) or other  action (if  permitted by this
Agreement)  is  commenced by the  aggrieved  party within one (1) year after the
cause of action or claim first accrues. The aforesaid one (1) year limitation is
in lieu of all other  applicable  statutes of limitation  which may be longer in
duration; however, such one (1) year period shall not apply to any

                                      -10-
<PAGE>

causes of action or claim asserted against  Distributor by Swissray arising from
any  delinquencies  in payment for Swissray  Products or asserted by Distributor
with respect to third-party claims arising out of Swissray's Product liability.

9    ARBITRATION AND GOVERNING LAW

     Except with respect to each party's  indemnity and the other rights of each
party set forth in paragraph  10.5,  below,  the  Arbitration  and Governing Law
provisions of paragraph 10 of the Terms of Sale attached as Exhibit C shall also
govern any  controversy or claim .arising out of or relating to this  Agreement,
to the breach thereof, to the relationship created thereby or to the termination
thereof,  with the additional  provision  that if  Distributor  shall breach the
provisions of paragraph 7 of this  Agreement,  it shall pay all of the costs and
expense of Swissray, including, without limitation,  reasonable attorneys' fees,
in connection with such  arbitration.  The arbitrators  award shall include such
costs  and  expenses.  The  provisions  of  paragraph  9(d) of the Terms of Sale
attached as Exhibit C shall govern any controversy or claim covered by paragraph
10.5, below.

     9.1  The  internal  law  of  the  State  of  New  York,  exclusive  of  its
conflict-of-laws  principles shall govern claims or  controversies  that are not
the subject of arbitration under these Terms, for this purpose, both DISTRIBUTOR
and SWISSRAY hereby.

10   MISCELLANEOUS PROVISIONS

     10.1  Swissray and  Distributor  agree that their  relationship  is that of
buyer and seller  only,  and  Distributor  shall be  considered  an  independent
contractor at all times with respect to its relationship with Swissray.  Nothing
in this Agreement  shall be construed as creating the  relationship  of employer
and employee, master and servant, franchisor and franchisee, principal and agent
or joint venturers between the parties hereto. The relationship  created by this
Agreement  does not create the grant by Swissray of a franchise to  Distributor,
and no federal  or state  franchise  statute,  law,  regulation  or rule will be
deemed  or  construed  to apply  to the  formation,  operation,  administration,
expiration or  termination  of this  Agreement.  Except as authorized in writing
neither  party shall have any express or implied right or authority to assume or
create any obligation on behalf of the other party,  and shall not attempt to do
so.  This  Agreement  does not grant to either  party a license to use any trade
name,  trademark,  service  mark or trade  dress of the  other  party.  Under no
circumstance  shall either  party,  its agents or employees,  be considered  the
agent of the other  party,  its agents and  employees,  and neither  party shall
represent themselves directly or by implication as such.

     10.2 The  failure or refusal by  Swissray  either to insist upon the strict
performance  of any provision of this  Agreement or to exercise any right in any
one or more  instances  or  circumstances  shall not be construed as a waiver or
relinquishment  of such provision or right, nor shall such failure or refusal be
deemed a custom or practice contrary to such provision or right. A waiver of any
provision of this Agreement  must be in writing,  signed by the waiving party to
be effective.

                                      -11-
<PAGE>

     10.3 In the  event  that any of the  provisions  of this  Agreement  or the
application  of any such  provisions to the parties hereto with respect to their
obligations  hereunder  shall be held by a court or other  tribunal of competent
jurisdiction to be unlawful,  invalid,  or void or unenforceable,  the remaining
provisions of this Agreement  shall remain in full force and effect and shall in
no way be affected,  impaired or invalidated.  In the event,  however,  that any
law, order, regulation,  direction, restriction or limitation, or interpretation
thereof,  shall  in  the  judgment  of  either  party  substantially  alter  the
relationship between the parties under this Agreement, or the advantages derived
from such relationship,  such party may request the other party hereto to modify
this  Agreement,  and, if, within  thirty (30) days  subsequent to the making of
such  request,   the  parties  hereto  are  unable  to  agree  upon  a  mutually
satisfactory modification hereof, then either party may terminate this Agreement
without  further  cause on fifteen (15) days prior  written  notice to the other
party.

     10.4 The paragraph  headings  contained  herein are for reference  only and
shall not be considered as substantive  parts of this Agreement.  The use of the
singular or plural form shall include the other form,  and the use of masculine,
feminine or neuter gender shall include the other genders.

     10.5 Each party agrees to and does hereby  indemnify  and hold harmless the
other party and will, at the other party's request,  defend the other party, its
employees and agents, with respect to any claim, demand or liability asserted by
a third party  against  such other party which is based upon any act or omission
by the indemnifying  party  including,  without  limitation,  any breach of this
Agreement,  and from any and all expenses and  liabilities  resulting  therefrom
(including,   without  limitation,   reasonable  attorneys'  fees).  Each  party
acknowledges  that,  should it  breach  any of its  covenants  with  respect  to
trademarks  or other  intellectual  property  rights of the other  party in this
Agreement or in the Terms of Sale attached as Exhibit C, the otter party will be
irreparably  harmed and will be entitled to an injunction  preventing  the other
party from further  breaching  the  Agreement  or the Terms of Sale  attached as
Exhibit C without  any  further or more  particularized  showing of  irreparable
injury.  Such  an  injunction  may  be  applied  for  before  any  Court  having
jurisdiction  thereof.  In any such  proceeding,  the  aggrieved  party  will be
entitled to recover  any  damages it suffers as a result of the other's  breach,
including,  without  limitation,  the  recovery  of  any  costs  and  reasonable
attorneys'  fees  incurred in enforcing  its rights under this  Agreement or the
Terms of Sale attached to Exhibit C.

     10.6 Neither party shall be liable under the  provisions of this  Agreement
for direct or indirect damages (except with respect to Distributor's obligations
to pay for Products) on account of its failure to perform its obligations  under
this  Agreement  on account  of  reasons  beyond  its  absolute,  exclusive  and
unconditional  control,  and in no event  shall  either  party be liable for any
indirect,  special,  incidental,  punitive or consequential  damages, or loss of
profits or financial investments, under any legal theory, sustained by the other
party (or any person  transacting  business with such other party) in connection
with its  obligations  under this Agreement or the  relationship  of the parties
hereunder.

                                      -12-

<PAGE>

     10.7 Nothing contained herein shall be deemed to limit or affect Swissray's
rights  to  modify,  amend or  change,  in any way it deems to be  necessary  or
appropriate,  any  of its  Terms  and  Prices  or its  policies  or  procedures,
regardless of whether or not such modifications, amendments or changes relate to
matters contained in this Agreement; provided that, such modification, amendment
or change is prospective in nature and  Distributor  has received notice of such
modification, amendment or change prior to submitting its purchase order. In the
event that Distributor objects to any such modification, amendment or change, it
may so notify  Swissray  in  writing,  and if within  ten (10) days  after  such
notice,  Swissray and  Distributor  do not reach  agreement  with regard to such
modification, amendment or change, Distributor may terminate this Agreement upon
fifteen (15) days' prior written notice to Swissray

     10.8 Unless otherwise specified in this Agreement,  all notices and demands
of any kind,  which either Swissray or the Distributor may be required or desire
to serve upon the other under the terms of this  Agreement,  shall be in writing
and  shall  be  served  by  personal  delivery  or by mail at  their  respective
addresses  set forth in this  Agreement  or at such  other  addresses  as may be
designated by the parties in writing. If by personal delivery,  service shall be
deemed complete upon such delivery. If by mail, service shall be deemed complete
upon the expiration of the third day after the date of mailing, postage prepaid.

     10.9 This  Agreement has been entered into by Swissray with  Distributor in
reliance upon:

          10.9.l  Distributor's  representation  that  the  following  person(s)
     substantially participate(s) in the ownership of Distributor:

Name                                Address                   % Interest
----                                -------                   ----------

Whiyie Sang                     Guaynabo, P.R.
-----------                     --------------                ----------

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

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

          l0.9.2 Distributor's  representation that the following person(s) will
     have  full  managerial  authority  and  responsibility  for  the  operating
     management of Distributor in the performance of this Agreement:

Name                               Position
----                               --------

Whiyie Sang                     President
-----------                     --------------

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

-----------                     -------------- and

<PAGE>

          10.9.3  In  the  event  of  any  contemplated  change  of  controlling
     ownership,  Distributor  will give Swissray  prior written  notice  thereof
     (except in the

                                      -13-
<PAGE>

     event of a change caused by the death of any such person(s),  in which case
     Distributor will give Swissray  immediate  written notice thereof),  but no
     such change or notice thereof will act as a waiver of any right of Swissray
     under this  Agreement or at law unless and until embodied in an appropriate
     written waiver duly executed by the Vice President-Sales of Swissray.

     10.10  This  Agreement  shall be  effective  only  after its  execution  by
Distributor  and its  subsequent  execution  by an  officer of  Swissray  at the
principal office of Swissray.  No other employee or  representative  of Swissray
shall have any right or authority to execute this Agreement or any  modification
or waiver of this Agreement or to bind Swissray to any other agreement.

     11.11 This  Agreement,  together with its Exhibits and any other  documents
incorporated  herein by reference,  constitutes the entire Agreement between the
parties hereto  pertaining to the subject matter hereof.  Any and all written or
oral agreements  heretofore or  contemporaneously  existing  between the parties
pertaining  to the subject  matter of this  Agreement  are  expressly  canceled.
Except as  otherwise  provided  by this  Agreement,  this  Agreement  may not be
altered,  modified, amended or otherwise changed, except by a written instrument
executed by both parties.

     11.12 The rights and remedies of the parties  under this  Agreement and the
Terms, attached as Exhibit C, and Prices are cumulative with rights and remedies
provided at law or in equity.  Even if not expressly  provided in the provisions
of this  Agreement,  the obligations of a party which, if they are to have their
stated effect must survive the termination of this  Agreement,  shall so survive
for the period necessary to give full effect to their stated purpose.

11.13 This Agreement has been executed in multiple  counterparts,  each of which
shall be deemed enforceable without production of the others.

     IN WITNESS WHEREOF,  the parties have executed this Agreement  effective as
of the date and year first hereinabove written.

DISTRIBUTOR                                   Swissray America, Inc.

Medika Equipos Medicos, Inc.                  By:  /s/ ILLEGIBLE
--------------------------------                   -----------------------------
Distributor's Full Legal Name

/s/ Whiyie Sang                               Title: /s/ ILLEGIBLE
--------------------------------                     ---------------------------
Signature

President, Whiyie Sang
--------------------------------
Name--print or type

                                      -14-
<PAGE>

Title:  President
        ------------------------
        Corporate Officer
        (indicate office)

Partner, Proprietor

Dated: October 16, 1998                       Dated:
       -------------------------                     ---------------------------

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