Document:

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                                                                    EXHIBIT-10.4

CONFIDENTIAL

THIS AGREEMENT is made the Eleventh day of February 2004

BETWEEN :

(1)      LONGPORT INCORPORATED, a corporation incorporated under the laws of
         Delaware and having its principal place of business at 740 South
         Chester Road, Swarthmore, PA 19081, ("LONGPORT"); and

(2)      US MEDICAL SYSTEMS INC, a corporation incorporated under the laws of
         Nevada and having its principal place of business at 1401 Seventeenth
         Street, Suite 1150, Denver, Colorado, CO 80202 ("USMS").

WHEREAS :

(A)      Longport develops, supplies and supports B-scan ultrasound scanning
         equipment (the "EQUIPMENT") and software (the "SOFTWARE") detailed in
         Schedule 1 (together, the "SCANNER" which expression extends to any
         versions, derivatives, parts, aspects and ingredients thereof from time
         to time as specifically outlined in Schedule 1) which has been designed
         for the purpose of imaging the human skin and underlying few
         centimeters soft tissue, detecting the onset of certain conditions that
         impact this region and allowing the monitoring of the rate and extent
         of change to skin tissue induced by treatments or through natural
         processes.

(B)      Longport wishes to appoint USMS as a distributor of the Scanner and
         USMS agrees to accept such appointment on the terms set out in this
         Agreement, which, for the avoidance of doubt, shall include the Terms
         and Conditions attached hereto.

IT IS HEREBY AGREED as follows :

1.       DEFINITIONS

1.1      In this Agreement the following expressions shall have the following
         meanings:

         "APPLICATION TRAINING" means clinical training on the use of the
         scanner, such training will only be provided to individuals who have
         previously successfully completed "System

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         Training". Fees over and above Longport's agreed selling price will
         under normal circumstances be charged for this "Application Training"
         (see Schedule 3);

         "BUSINESS DAY" means any day (not being a Saturday or Sunday) on which
         banks are open for business in the United States of America;

         "THE EFFECTIVE DATE" means five business days after signature of this
         Agreement;

         "EXCLUSIVE DISTRIBUTOR" means sole distributor in the "Wound Care
         Market" excepting that both parties acknowledge and agree that Longport
         has certain relationships and obligations to distributors and agents in
         the "Wound Care Market" and that the rights and interests of these
         distributors and agents shall not be impacted or restricted by the
         appointment of USMS. A list of these providers in the "Wound Care
         Market" is included as Schedule 4;

         "LONGPORT GROUP" means together Longport and every holding company or
         subsidiary of Longport;

         "ORDER" means any order for the Scanner placed with Longport by USMS
         from time to time in accordance with this Agreement;

         "PARTIES" means the parties to this Agreement namely, Longport and
         USMS;

         "PMC NETWORK" - A healthcare network that provides healthcare services
         primarily through union based healthcare programs that is administered
         by Practice Management Corporation.

         "RESTRICTED INFORMATION" has the meaning attributed to it in Condition
         21 of the Terms and Conditions;

         "SUB-AGENT" shall mean a subsidiary sales or distribution agent
         appointed by USMS;

         "SYSTEM TRAINING" shall mean instruction on the general use of the
         scanner hardware and software.

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         "TERMS AND CONDITIONS" has the meaning attributed to them in
         Schedule 2;

         "THE TERRITORY" means the United States of America;

         "USMS GROUP" means together USMS and every holding company or
         subsidiary of USMS; and

         "WOUND CARE MARKET" means nursing homes, assisted care living
         facilities, rehabilitation centers and operating wound care centers.

1.2      Any reference in this Agreement to any statute or statutory provision
         shall be construed as including a reference to that statute or
         statutory provision as from time to time amended modified extended or
         re-enacted whether before or after the date of this Agreement and to
         all statutory instruments orders and regulations for the time being
         made pursuant to it or deriving validity from it and so far as may be
         applicable any past statutory provisions as from time to time amended
         modified extended or re-enacted which such provision has directly or
         indirectly replaced.

1.3      Except so far as the context otherwise requires words denoting the
         singular shall include the plural and vice versa and words denoting any
         one gender shall include all genders and words denoting persons shall
         include bodies corporate, unincorporated, associations, partnerships
         and individuals.

1.4      Unless otherwise stated definitions of the parties included in the
         statement of parties in Clause 1 of this Agreement and any definitions
         included in any particular Clauses, or Schedules also apply in the
         remainder of this Agreement.

1.5      Headings to Clauses are included for ease of reference only and shall
         have no effect on the interpretation or construction of this Agreement.

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2.       APPOINTMENT

2.1      Subject to the terms of this Agreement, Longport hereby appoints USMS
         as a non-exclusive distributor into all applicable medical markets for
         the "Scanner" across the Territory and USMS hereby accepts such
         appointment. Further, Longport shall appoint USMS as the "Exclusive
         Distributor" of the scanner in the "Wound Care Market", upon terms
         defined within this Agreement, within 90 days of the effective date,
         subject to the conditions defined in Clauses 2.2 and assuming USMS is
         not in breach of any obligation of this Agreement at the time this
         appointment is to be made.

2.2      To be granted the status of "Exclusive Distributor" in the "wound care
         market" Longport shall first receive from USMS a payment of $525,000
         solely for this right. The date this payment is made and the "Exclusive
         Distributor" status obtained shall be mutually agreed between Longport
         and USMS, but both shall occur within 90 days of the Effective date.

2.3      To maintain its status as "Exclusive Distributor" in the wound care
         market USMS shall:

(a)      Purchase not less than 25 units per month during the first year of the
         Agreement until a total of not less than 300 (this shall include the 9
         units recently purchased by USMS) are purchased.

(b)      Purchase not less than 50 units per month during the second year of the
         Agreement until a total of not less than 600 are purchased. If the
         total number of units purchased in year 1 exceeds 300 then this
         "surplus" shall be carried forward as a "credit" against the purchasing
         requirement in Year 2.

(c)      Purchase not less than 1,000 units during the third year of the
         Agreement and not less than 80 units in any one-month during the third
         year until 1,000 units are purchased. If the total number of units
         purchased in year 1 and 2 combined exceeds 900 then this "surplus"
         shall be carried forward as a "credit" against the purchasing
         requirement in Year 3.

2.4      USMS shall also be appointed sole distributor to the "PMC Network" upon
         payment of the fee described in Clause 2.2 and USMS shall maintain that
         status for the duration of this Agreement while it meets the purchasing
         schedule described in 2.3 and is not in material breach of any other
         obligation defined in this Agreement.

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2.5      For the avoidance of doubt, Longport shall be entitled at any time or
         from time to time to sell the Scanner direct to customers in the
         Territory, excepting that Longport shall not directly sell scanners
         knowingly into the "wound care market" once USMS becomes the "Exclusive
         Distributor" and USMS continues to abide by its obligations to retain
         this status, for a period of three years excepting under circumstances
         where Longport has outstanding commitments, as listed in Schedule 4.
         While the "Exclusive Distribution" rights are retained Longport shall
         forward to USMS all new Wound Care Market leads received directly from
         the market place.

         If USMS is unable or unwilling to supply any prospective end user in
         the "Wound Care Market" within the Territory in a timely manner USMS
         will so inform Longport. Similarly, if any prospective customer advises
         Longport that USMS is unwilling to supply them Longport shall advise
         USMS of this. Under any of these circumstances USMS and Longport shall
         negotiate on how the potential customer should be serviced, such
         negotiations shall be concluded within a 15 business day period.

2.6      Longport shall be entitled to appoint new non-exclusive distributors
         within the territory excepting that Longport shall not appoint new
         distributors into the "Wound Care Market" once USMS becomes the
         "Exclusive Distributor" and USMS continues to abide by all its
         obligations.

2.7      Longport shall make available to USMS the first units manufactured
         every month to the schedule shown in Clause 2 or to higher volumes when
         so ordered according to Clause 4. This duty of Longport shall however
         cease if USMS is in material breach of any of its obligations,
         including but not limited to Clause 2.3.

2.8      For the duration of this Agreement the USMS Group shall obtain the
         Scanner only from Longport, excepting for in the situation where
         Longport is unable to meet the production needs of USMS as described in
         Clause 6.4.

2.9      USMS shall not, during this Agreement, except upon the default of
         Longport as defined in Clause 6.4, without the prior written consent of
         Longport, be involved directly or indirectly whether on its own account
         or for or through any other person, including its sub-agents, in

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         the manufacture, sale, distribution, promotion or marketing in the
         Territory of any ultrasound based product which (a) competes or (b) is
         capable of competing with the Scanner.

2.10     For the duration of this Agreement, USMS shall not seek customers for
         the Scanner outside the Territory and will not establish or maintain
         any branch or distribution depot for the Scanner outside the Territory.

2.11     In addition, the appointment of USMS is subject to the Terms and
         Conditions.

3.       UNDERTAKINGS AND OBLIGATIONS

3.1      The USMS Group undertakes to Longport :

(a)      not to register or assert any rights to :

                  (i)      any trade mark, patent, registered design, internet
                           domain name or other intellectual property rights
                           owned from time to time by any member of the Longport
                           Group;

                  (ii)     the design of the Scanner or any invention contained
                           therein;

         (b)      not to be involved in any activity for the duration of this
                  Agreement which may bring the intellectual property rights or
                  other rights of Longport or Longport the entity into question
                  or disrepute;

         (c)      bring to the attention of Longport any improper or wrongful
                  use of the Scanner or any possible infringement of Longport's
                  intellectual property rights, or any faults or defects in the
                  Scanner which have become known to USMS;

         (d)      shall comply fully with the requirements of all relevant
                  regulatory bodies and shall ensure that it does not take any
                  action or make any representation which may impede Longport in
                  obtaining or continuing subsistence of any such approval; and

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         (e)      to attend the initial training courses on the use of the
                  Scanner, and any further training courses required in the
                  event that Longport produces an update, enhancement or
                  modification to the Scanner.

3.2      USMS and its Sub-Agent shall not:

         (a)      use the terms "exclusive", "sole" or any similar meaning term
                  in marketing and sales activities or materials to undermine
                  the activities of other distributors and agents Longport has
                  in the "Wound Care Market";

         (b)      through any means state or imply that the "Exclusive
                  Distribution" rights described in this Agreement extend beyond
                  the "Wound Care Market";

         (c)      through any means state or imply that USMS has the "Exclusive
                  Distribution" rights in the "Wound Care Market" prior to the
                  obligations under Clause 2.2 having been met or in
                  circumstances where it has failed to continue to meet its
                  obligations, including but not limited to those described in
                  Clause 2.3.

                  The restrictions listed above shall not prevent USMS from
                  announcing its status as the "Exclusive Distributor" in the
                  "Wound Care Market" after such status has been established.

3.3      The USMS Group and Longport Group undertake to each other during the
         continuance of this Agreement as well as after its termination to
         maintain the confidentiality obligations contained in Condition 21 of
         Schedule 2.

3.4      For the duration of this Agreement USMS and Longport agree not to issue
         press releases or other announcements that mentions the other party or
         its interests without first seeking the written authorization, and
         whenever possible the agreement of the other party. Neither party
         should unnecessarily delay announcements by the other party and should
         give good reason why they have requested editorial changes, including
         when appropriate reference to this Agreement. Whenever a significant
         event occurs involving Longport and USMS, both parties shall
         co-ordinate the issuance of appropriate press releases in a timely
         manner.

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4.       RESTRICTIVE COVENANTS

4.1      The USMS Group hereby warrants and undertakes in favor of Longport :

         (a)      not for a period of 36 months after the date of termination of
                  this Agreement howsoever arising to be directly or indirectly
                  (whether as a shareholder, partner, consultant, employee,
                  agent or principal or in any other capacity) engaged concerned
                  or interested in any business or company carrying on within
                  the Territory the business of the manufacture, distribution or
                  sale of any ultrasound device which is capable of competing
                  with the Scanner, except that USMS may be beneficially
                  interested in the securities in any company carrying on within
                  the Territory such a business if such securities are listed on
                  a recognized Stock Exchange and the USMS Group together with
                  any associate neither holds nor is beneficially interested in
                  more than a total of five per cent of all the securities in
                  that company;

         (b)      not at any time after the termination of this Agreement to use
                  or hold itself out as using any of the corporate or trading
                  names of Longport or any colorable imitation or derivative
                  thereof;

         (c)      not for a period of 12 months after the termination of this
                  Agreement to directly or through any other person to employ or
                  seek to entice away from the employment of Longport any person
                  who was at any time during the twelve months prior to the
                  termination of this Agreement employed by Longport; and

         (d)      not at any time after the Termination of this Agreement to
                  represent it or permit it to be held out as being in any way
                  connected with or interested in the business of Longport.

4.2      The parties to this Agreement agree that the restrictions set out in
         Clause 4.1 are separate and severable undertakings and are reasonable
         in the circumstances and necessary for the protection of the legitimate
         interests of Longport and the goodwill of USMS. If, however, any part
         of Clause 4.1 is found to be invalid or unenforceable for any reason
         then the remainder of Clause 4.1 shall continue in full force and
         effect.

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5.       DURATION

5.1      Subject to Clause 12 below, this Agreement shall commence on the
         Effective Date and shall continue for an initial period expiring on the
         third anniversary after the Effective Date ("the Initial Term").

5.2      Six months before the conclusion of the "the Initial Term" subject to
         Clause 12 below both parties agree to formally review this Agreement
         and its implementation in light of the two and a half years of
         experience gained and to prepare a revised Agreement for a second three
         year period ("the Second Term"). Although the terms of this revised
         Agreement are to be decided at the time it is prepared it shall include
         the provision for a continuation of USMS "Exclusive Distribution"
         rights in the "Wound Care Market" and non-exclusive marketing rights in
         all other applicable medical fields for the Scanner in the Territory.
         If the parties have not signed an Agreement covering the "Second Term"
         by the end of "the Initial Term" then both parties agree to immediately
         refer the matter to the binding arbitration of the AAA as described in
         Clause 9.3, excepting that all arbitration costs shall be divided
         equally between Longport and USMS under these circumstances. During the
         arbitration process the terms of this Agreement shall continue.

6.       SUPPLY

6.1      Subject to Clause 7.6 below and Condition 14 (Force Majeure) of the
         Terms and Conditions, Longport shall use all reasonable endeavors to
         supply the Scanner to USMS in accordance with each Order placed by
         USMS.

6.2      Longport shall be entitled at any time or from time to time to make
         such modifications to the specification of the Scanner as it may in its
         sole discretion think fit. Whenever possible Longport will review any
         change in specification with USMS before they are implemented.

6.3      USMS shall in respect of each Order for the Scanner to be supplied
         hereunder be responsible for :

         (a)      ensuring the accuracy of the Order;

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         (b)      providing Longport with any information which is reasonably
                  necessary in order to enable Longport to fulfill the Order;

6.4      Upon receipt and confirmation of each Order Longport shall, as soon as
         is reasonably practicable, inform USMS of Longport's estimated delivery
         date for the order. Longport shall use all reasonable endeavors to meet
         the delivery date, normally four months after receipt of order, but
         time of delivery shall not be of the essence and accordingly Longport
         shall have no liability to USMS if, notwithstanding such endeavors,
         there is any delay in delivery. Longport shall however advise USMS of
         any expected delivery delays at the earliest practical opportunity.

         However, if Longport has been unable to deliver products ordered in
         accordance with this Agreement 120 days after the due date for that
         order has passed then USMS shall have the right to have the Scanner
         manufactured by their own sources and Longport shall provide all
         necessary licenses required for this production. This manufacturing
         right shall only cover Scanners that USMS requires for their
         distribution needs as described in this Agreement.

         In circumstances where Longport is found to have defaulted as described
         in the above paragraph arbitration should be sought as described in
         Clause 10.3 to determine how the deposit outstanding, initially
         $500,000, is repaid and if this repayment should be made in cash or in
         components already in the production pipeline or some combination of
         the two.

6.5      Longport shall be exclusively responsible for the first 12 months of
         this Agreement for the training and support of end user customers
         contracted to USMS or any of USMS's sub-agents and USMS shall not seek
         such customer support from any other party. If after the first 12
         months of this Agreement has concluded USMS or one of its sub-agents
         wishes to train and support their customers directly they shall be
         entitled so to do, provided they give 6 months notice to Longport.

         If USMS or any of your sub-agents wish to undertake the training and
         support responsibility they shall submit to Longport for approval all
         training and support documentation and procedures. All such programs
         and documentation shall be subject to approval by Longport and Longport
         will on an on-going basis be exclusively responsibly

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         for accrediting all Scanner related training and support programs and
         the personnel involved.

         Longport will have the right not to accredit any program or person, and
         neither USMS nor its sub-agents shall use any non-accredited program or
         person in any training or support capacity with regard to the Scanner.
         Fees will be charged for these accreditation services by Longport.

         If during the first 18 months of this Agreement any end-user customer
         of USMS requiring multiple Scanners, greater than 20, wishes to develop
         and use an in-house training program Longport and USMS shall work with
         that customer to develop an appropriate training program. Longport
         shall charge for its input into this program development.

         Details of Longport's standard end user support provision are presented
         in a Schedule 3 of this Agreement

6.6      The terms of this Agreement, which includes the Schedules attached
         hereto, shall apply to the exclusion of any other terms and conditions
         including any implied by trade, custom, practice or course of dealing.
         Purported provisions to the contrary are excluded.

7.       PAYMENTS

7.1      On signature of this Agreement USMS shall provide Longport with an
         initial order for 100 scanners and within 5 business days of signature
         of this Agreement Longport shall receive from USMS a deposit of
         $500,000 by wire transfer on these first 100 scanners. Longport shall
         immediately notify USMS of the receipt of this transfer.

7.2      This Agreement shall not be considered consummated until the payment
         described in 7.1 is received by Longport. If Longport does not receive
         the payment described in Clause 7.1 within 5 business days of signature
         of this Agreement, this Agreement will automatically be null and void.

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7.3      Between the time of signature of this Agreement and the day that the
         deposit of the $500,000 is received by Longport, no press release or
         announcement shall be made by either part in regard to this Agreement.
         Further, if any party believes that the other party, any company,
         sub-agent or any individual associated with that party has directly or
         indirectly gained or tried to gain any benefit from the existence of
         this Agreement before it has been announced to the public at large this
         Agreement can be made null and void, subject to Clause 9.3. During this
         five-day period both parties shall develop a joint press release to be
         issued the day the payment is received by Longport.

7.4      USMS shall place firm orders for units four months in advance of the
         required delivery. At the time each order is placed a 20% deposit shall
         be placed. USMS shall take physical delivery of all products ordered
         within the month delivery is due and pay the outstanding purchase price
         within fifteen business days of delivery. For the avoidance of doubt a
         second order shall be placed by USMS with Longport not less than 30
         days after the first shipment is made.

7.5      The initial purchase price for the scanner shall be $22,000 per unit.
         This price shall include "System Training" and "Customer Support" as
         defined, but exclude any applicable taxes and duties. Additional costs
         associated with specific "Application Training" and support as well as
         component costs are defined in Schedule 3 of this Agreement. Provided
         USMS abides with all terms of this Agreement Longport shall not offer
         the same package provision (Scanner plus training plus user support as
         described in this document) at a lesser cost as to that being charged
         to USMS (at that time) to any other customer in the Territory for the
         duration of this Agreement.

7.6      Longport has the right to change the purchase price for the scanner
         given 60 days notice, but will provide a written explanation as to why
         any price change has been made. Such price changes will be applied
         across the board to all customers of that device or service provision,
         including pro rata to any direct customers Longport may have. If USMS
         believe that any price change made is not justified then they will have
         the right to seek an arbitration ruling as outlined in Clause 9.3.

7.7      For the duration of this Agreement, Longport shall pay to USMS 1% of
         its Scanner sale receipts from the US "Wound Care Market" that arise
         from either direct sales made by

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         Longport or those undertaken to other third party agents or
         distributors. (Other third party agents or distributors exclude USMS
         and all of its sub-agents.) This obligation shall start from the date
         USMS gains its "exclusivity" into in the US "Wound Care Market". These
         payments are subject to USMS continuing to meet all its obligations
         under this Agreement, including but not limited to the purchasing
         schedule presented in Clause 5.4 the payment obligations presented in
         Clause 7.3 and progressing the CPT work program, as described in Clause
         8.6, in a timely manner using all reasonable efforts.

         Longport shall pay to USMS all fees due under this clause 7.7 on a
         quarterly basis within 15 days of publication of its quarterly
         accounts, for the fourth quarter of each year the payment shall be made
         within 15 days of publication of Longport's annual accounts. However,
         for the first 12 months that this clause comes into force Longport
         shall report to USMS the money owed on a quarterly basis as described
         above, but shall not pay any fees due until the end of the fourth full
         quarter that the above clause has come into effect when all the
         accumulated fees shall be paid, subject to USMS continuing to meet all
         its obligations.

         For the avoidance of doubt, once USMS gains and while it retains
         "Exclusivity" in the "Wound Care Market":

         -        Longport shall forward solely to USMS all new enquiries it
                  receives from end user potential customers from the "Wound
                  Care Market" and shall not knowingly directly supply customers
                  in the "Wound Care Market" in the Territory, other than those
                  listed in Schedule 4;

         -        Longport shall not appoint any new distributors over and above
                  those listed in Schedule 4 to service the "Wound Care Market"
                  within the Territory;

         -        The customer groupings listed in Schedule 4 represent groups
                  that Longport in conjunction with one of the listed "Wound
                  Care Market" agents or distributors are already progressing
                  and

         -        The "Wound Care Market" agents and distributors listed in
                  Schedule 4 are not prevented from finding or supplying
                  Scanners to new customers beyond those listed in

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                  Schedule 4 in the US "Wound Care Market" and Longport is free
                  to supply these agents or distributors.

7.8      At the end of each 12 month period of this Agreement, subject to USMS
         meeting all its obligations including, but not limited to the
         purchasing schedule presented in Clause 5.4 and the payment obligations
         presented in Clause 7.3. Longport shall issue to USMS shares of its
         common (restricted) stock as laid out below:

             -    If USMS purchases total 90% or greater of Longport's Scanner
                  sale revenue, 5% of its issued stock

             -    If USMS purchases total 75 to 89 % of Longport's Scanner sale
                  revenue, 4% of its issued stock

             -    If USMS purchases total 60 to 74 % of Longport's Scanner sale
                  revenue, 2.5% of its issued stock

             -    If USMS purchases total 50 to 59% % of Longport's Scanner sale
                  revenue, 1% of its issued stock

             -    If USMS purchases total less than 50% of Longport's Scanner
                  sale revenue, 0% of its issued stock

8.       MARKETING

8.1      USMS shall use its best endeavors to promote the sale of the Scanner
         throughout the Territory.

8.2      USMS shall be entitled to resell the Scanner to its customers at such
         prices as it may determine.

8.3      USMS shall respond promptly to all enquiries from prospective
         customers.

8.4      In connection with the promotion and marketing of the Scanner USMS :

         (a)      shall not misrepresent Longport and shall make clear in all
                  dealings with customers and prospective customers that it is
                  acting as distributor of the Scanner and not as Longport's
                  agent, and shall use all reasonable endeavors to protect the
                  good name and reputation of Longport throughout the Territory;

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         (b)      shall comply with all legal requirements from time to time in
                  force relating to the storage and sale of the Scanner;

         (c)      inform Longport in writing of its selling price current from
                  time to time;

         (d)      provide Longport on a quarterly basis (or on such other basis
                  as agreed from time to time) with a report, in such form as
                  Longport may reasonably require, of sales of the Scanner which
                  it has made in the preceding 3 months and containing such
                  other information as Longport may reasonably require;

         (e)      from time to time consult with Longport's representatives for
                  the purpose of assessing the market in the Territory and
                  permit them to

                  (i)      inspect any premises or documents used by USMS in
                           connection with the sale of the Scanner; or

                  (ii)     accompany USMS on visits to customers or potential
                           customers, subject to the agreement of the customer;

         (f)      at the request of Longport provide to it copies of such sales
                  catalogues, sales brochures and sales manuals as relate to the
                  Scanner;

         (g)      use in relation to the Scanner only such advertising
                  promotional and selling materials as are approved in advance
                  in writing by Longport;

         (h)      maintain an active and suitably trained sales force;

8.5      In connection with the promotion and marketing of the Scanner, Longport
         shall :

         (a)      provide USMS with literature in English in relation to the
                  Scanner. The cost of this literature shall be borne by
                  Longport if requested in reasonable quantities and in
                  Longport's standard format, but at USMS's expense if
                  literature is requested in

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                  quantities greater than thought reasonable by Longport or if
                  requested in a USMS specified format;

         (b)      support USMS by means of comprehensive website coverage, which
                  shall include the contact details of USMS and links to any
                  appropriate USMS website(s);

         (c)      provide USMS with access to a global network of research
                  activities, including opportunities for USMS to participate in
                  local activities; and

         (d)      provide USMS with general marketing, clinical and technical
                  support and insights into development activities and new
                  products.

8.6      USMS commits to fund a study during the course of the Agreement,
         starting in the first year, with the aim of establishing CPT codes for
         the use of the LDS in early stage pressure ulcer prevention and other
         applications currently not covered by codes. USMS shall use all
         reasonable efforts to progress this work and shall report to and
         consulate with Longport on a frequent basis, not less than every two
         months, on the progress made and issues outstanding. Longport shall be
         free to circulate the reports provided to other companies listed in
         Schedule 4 who are also progressing work in this area, subject to those
         companies agreeing to prepare and share similar reports with USMS.

9.       WARRANTIES

9.1      Longport warrants and undertakes in favor of USMS that :

         (a)      Longport is the owner with full title guarantee of each
                  Scanner sold or offered for sale to USMS pursuant to this
                  Agreement;

         (b)      all Scanners delivered hereunder shall be of satisfactory
                  quality and fit for the purpose for which they are stated by
                  Longport to be designed;

         (c)      Longport's Scanner technology has FDA marketing clearance (FDA
                  Ref K990238);

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         (d)      Scanners supplied will be UL kite marked and UL listed under
                  the appropriate medical device category; and

         (e)      the Scanner manufacture will be undertaken by an FDA
                  registered company.

9.2      USMS warrants in favor of Longport that it has all necessary power and
         authority to enter into this Agreement and to perform the obligations
         set out herein and that this Agreement has been properly authorized and
         constitutes binding obligations on it.

9.3      In the event of any breach of Longport's warranty in Clause 11.1
         (whether by reason of defective materials, production faults or
         otherwise) Longport's liability shall be limited to replacement of the
         Scanner in question.

9.4      Notwithstanding anything to the contrary in this Agreement, Longport
         shall not, except in respect of death or personal injury caused by
         Longport's negligence, be liable to USMS by reason of any
         representation or implied warranty, condition or other term or any duty
         at common law, or under the express terms of this Agreement for any
         consequential loss or damage (whether for loss of profit or otherwise
         and whether occasioned by the negligence of Longport or its employees
         or agents or otherwise) arising out of or in connection with any act or
         omission of Longport to the manufacture or supply of the Scanner, its
         resale by USMS or its use by any customer.

9.5      Longport shall provide product liability insurance with reputable
         insurance companies in the amount of at least $5 million per claim or
         series of connected claims.

10.      TERMINATION

10.1     Longport shall be entitled without prejudice to its other rights, to
         terminate this Agreement by notice in writing to USMS in the event
         that :

         (a)      USMS commits any breach of its obligations hereunder and fails
                  to remedy such breach within fifteen (15) Business Days of
                  receipt of notice from Longport requiring the remedy thereof.
                  However, under circumstances where USMS is unable to order or
                  purchase units to the schedule laid out in Clause 2.3, for
                  reasons other than Longport being unable to fulfill its
                  obligations, USMS's status as the

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                  "Exclusive Distributor" in "Wound Care Market" shall cease.
                  USMS shall however have a 60-day period to cure this
                  deficiency or default. If USMS is unable to cure the
                  deficiency or default it can at its request retain the right
                  to continue as a non-exclusive distributor subject to it
                  abiding with all other obligations of the Distribution
                  Agreement and being able to on an on-going basis to the
                  satisfaction of Longport demonstrate that it is implementing a
                  competent written business plan and has established viable
                  distribution channels.

         (b)      USMS makes any arrangement with its creditors or an order is
                  made or a resolution is passed for the winding-up of USMS
                  (other than solely for the purpose of amalgamation or
                  reconstruction) or a receiver, administrator or administrative
                  receiver or other officially appointed officer or manager is
                  appointed to the whole or any part of its assets or
                  undertaking or circumstances arise which entitle the Court or
                  a creditor to appoint a receiver or manager or administrator
                  or administrative receiver or other official officer or
                  manager or which entitle the Court to make a winding-up order
                  or if USMS takes or suffers any similar or analogous action in
                  consequence of debt; or

         (c)      USMS is found to have made any material misrepresentation
                  concerning the Scanner or Longport.

         (d)      USMS shall be responsible for the actions of all its
                  sub-agents, and all sub-agents shall be obliged to sign
                  Agreements with USMS that protect the interests of Longport.
                  If any sub-agent is found or believed to be damaging the
                  interests of Longport or Longport the entity then Longport can
                  insist that USMS or that sub-agent correct the damaging action
                  or potential damaging action within fifteen business days of
                  receiving written notice from Longport. If such corrective
                  action does not occur to Longport's satisfaction then USMS
                  shall terminate its agreement with that sub-agent immediately,
                  failure to do so will be considered a breach of this
                  Agreement.

10.2     Where Longport has terminated this Agreement in accordance with Clause
         10.1 USMS shall have no claim or action against Longport in respect of
         an Order or part of an Order so

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         cancelled and, with regard to any uncancelled part of an Order, a right
         only to receive that proportion of the price which the completed part
         of an Order bears to the uncompleted part.

10.3     If a dispute arises out of or in connection with this Agreement either
         party may by written notice require the other party to resolve the
         dispute by negotiation in good faith. Where such a notice is given,
         each party shall use their best endeavors to resolve the dispute. In
         the event that such a dispute is not resolved within 15 business days
         after the said notice was given, the aggrieved party shall immediately
         refer the matter to the American Arbitration Association ("AAA") to
         resolve the dispute through a binding arbitration. Such arbitration
         shall be conduced in the State of New Jersey. The aggrieved party shall
         pay all direct AAA costs incurred prior to the arbitration hearing, but
         the AAA shall have the right to rule on how these and all other costs
         directly incurred in the arbitration process are finally proportioned.

         This Agreement shall be governed by and construed in accordance with
         Delaware law.

11.      CONSEQUENCES OF TERMINATION

11.1     Upon termination of this Agreement :

         (a)      Longport shall be entitled, but not obliged, to repurchase
                  from USMS all or part of any order of the Scanner then held by
                  USMS for a price equal to the lower of cost or net realizable
                  value provided that :

                  (i)      Longport shall be responsible for arranging and for
                           the cost of, transport and insurance; and

                  (ii)     USMS may sell the Scanner for which it has accepted
                           orders from customers prior to the date of
                           termination or in respect of which Longport does not,
                           by written notice given to USMS within 10 Business
                           Days after the date of termination exercise its right
                           of repurchase and for those purposes and to that
                           extent the provisions of this Agreement shall
                           continue in full force and effect;

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         (b)      USMS shall, at its own expense, within 30 Business Days send
                  to Longport any advertising, promotional or sales material
                  relating to the Scanner (and all copies thereof) then in the
                  possession of USMS;

         (c)      outstanding unpaid invoices rendered by Longport in respect to
                  the Scanner shall become immediately payable by USMS and
                  invoices in respect to the Scanner ordered prior to
                  termination but for which an invoice has not been submitted
                  shall be payable immediately upon submission of an invoice;

         (d)      USMS shall cease to promote, market or advertise the Scanner
                  or to make any use of the Restricted Information (as defined
                  in Condition 21 of the Terms and Conditions) other than for
                  the purpose of selling all or part of any consignment of the
                  Scanner in respect of which Longport does not exercise its
                  right of repurchase;

         (e)      USMS shall have no claim against Longport for compensation for
                  loss of distribution rights, loss of goodwill or any similar
                  loss; and

         (f)      subject as otherwise provided herein and to any rights or
                  obligations which have accrued prior to termination neither
                  party shall have any further obligation to the other under
                  this Agreement.

11.2     Termination of this Agreement shall be without prejudice to any right
         or remedy which either Longport or USMS may have against the other in
         respect of the breach concerned or any other breach.

11.3     Termination of this Agreement shall be without prejudice to any
         obligations expressed to continue to apply notwithstanding any such
         termination.

12.      INDEMNITY

         Both parties shall forthwith on demand indemnify and keep each other
         indemnified from and against any and all actions, claims, demands,
         costs, liabilities, losses, damages or expenses (including loss of
         profit, legal expenses and consequential loss and damage) :

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         (a)      sustained by either party or for which each member may be
                  liable as a result of the failure of the other party to
                  perform its obligations hereunder;

         (b)      sustained by Longport or for which Longport may be liable as a
                  result of any action taken by USMS in relation to the Scanner
                  prior to resale of the Scanner including any modification or
                  alteration to the Scanner;

         (c)      in respect of any breach of either parties obligations of
                  confidentiality pursuant to Clause 3.3 or Condition 21 of
                  Schedule 2; and

         (d)      in respect of any default, act, omission or other breach of
                  this Agreement or negligence of Longport or USMS or their
                  respective employees or agents (including sub-agents).

13.      SEVERANCE

         If at any time any one or more of the provisions of this Agreement or
         any part thereof is held by any Court or other competent authority to
         be void or otherwise unenforceable for any reason under applicable law,
         such provision shall be deemed omitted herefrom and the validity and/or
         enforceability of the remaining provisions of this Agreement shall not
         in any way be affected or impaired thereby.

14.      ENTIRE AGREEMENT

         This Agreement together contains the entire agreement between the
         parties with respect to the supply of the Scanner by Longport to USMS
         and supersedes all previous agreements and understandings between the
         parties with respect thereto. This Agreement shall prevail over any
         terms or conditions of sale of USMS and may not be modified except by
         an instrument in writing signed by the duly authorized representatives
         of the parties.

15.      PARTNERSHIP

         Nothing in this Agreement shall be deemed to constitute an agency or
         partnership relationship between the parties.

16.      ASSIGNMENT

         This Agreement is personal to the parties to the Agreement and save as
         set out below neither of the Parties may assign its rights and
         obligations under this Agreement whether in

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         whole or in part without the prior written consent of the other save
         that Longport may (without the need for such prior written consent)
         assign its rights and obligations to any other company within the
         Longport Group, and USMS may assign within the USMS Group.

17.      NOTICES

         Any notice or consent required or permitted to be given hereunder shall
         be validly given if delivered personally or sent by recorded delivered
         US Mail to the registered office of the party concerned appearing in
         the definitions on the first page of this letter or by facsimile
         transmission to the facsimile number given below (or such other address
         as may be notified by one party to the other in accordance with this
         paragraph) :

         LONGPORT INCORPORATED                       Fax Number: 610-328-7017
         marked for the attention of Michael Boyd and Paul Wilson

         US MEDICAL SYSTEMS INC                      Fax Number: 303-295-1563
         marked for the attention of Peter Futro

         Any such notice shall be deemed to have been given when it was
         personally delivered or served or, if sent by US Mail, seventy-two
         hours after it was posted (and proof of due posting shall be sufficient
         evidence of delivery) or if sent by facsimile transmission, at the time
         when the transmission was sent provided that it is sent during normal
         office hours on a business day.

IN WITNESS whereof the parties have executed this Agreement the day and year
first before written

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                                   SCHEDULE 1

                                   THE SCANNER

                           (as at the Effective Date)

shall consist of the following (a):

A.       The Equipment

         I.       EPISCAN-I-100 High Resolution Ultrasound Scanner
                   Consisting of: Proprietary Ultrasound / 200 MHz ADC PCI Board
                                  15.1 XVG TFT Screen
                                  Read / Write CD Drive
                                  Floppy Disk Drive
                                  Hard Disk Drive
                                  Integrated 10 / 100 network card
                                  IR Communications
                                  Wipeable Keyboard

         II.      20 MHz-Center Frequency Probe
                                  15mm scan length
                                  Integrated scan control
                                  Scan Rate ~1 frame per second

B.       The Software

         I.       Operating System Windows XP or similar

         II.      Longport's Proprietary Software V3.00 Dec 2002 or subsequent
                  updates

-----------------
(a) Specification may change without notice

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                                   SCHEDULE 2

                              TERMS AND CONDITIONS

1.       DEFINITIONS

         "CONDITIONS" means these terms and conditions and "Condition" shall be
         construed accordingly;

         "AGREEMENT" means the agreement between Longport and USMS for the sale
         and purchase of the Scanner and these Conditions;

         "PRICE" means the price set by Longport for the Scanner from time to
         time, exclusive of sales tax, and any charges for special packaging of
         the Scanner but inclusive of any charges made under the terms of
         freight set out in Condition 5 of these Terms and Conditions.

2.       MAKING THE AGREEMENT

         These Conditions shall apply to and form part of the Agreement between
         Longport and USMS for the distribution of the Scanner. No terms and/or
         conditions, which Longport or USMS may seek to impose shall apply or
         have effect, unless agreed in writing by both parties.

3.       QUOTATIONS AND ACCEPTANCE OF ORDERS

         Any price quotation made by Longport and notified to USMS shall remain
         open for a period of 120 Business Days and an agreement will only be
         established when Longport has accepted USMS's order in writing.

4.       SALES LITERATURE

         The specification of the Scanner shall be as set out in Longport's
         sales literature, which Longport reserves the right to update from time
         to time in accordance with any update, enhancement or modification made
         to the Scanner. While Longport takes every precaution in the
         preparation of its literature these documents are for USMS's general
         guidance and information only and shall not give rise to any warranty,
         representation or liability on the part of Longport.

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5.       PRICE

5.1      CALCULATION OF PRICE

         The Price is calculated on a free carrier basis (as set out in ICC
         Incoterms 2000) and includes the cost of packaging, carriage and
         insurance to the time at which any Scanner is delivered to the carrier
         for carriage to USMS but excludes all costs thereafter.

5.2      CHANGE IN RATES OF INSURANCE AND TRANSIT CHARGES

         The Price is based on current rates of insurance and other transit
         charges and for the normal route for carriage. Any increase in these
         charges or variation in such route shall entitle Longport to increase
         the Price for the Scanner by a corresponding sum.

5.3      DELAY OR FAILURE IN MAKING PAYMENT

         If USMS fails to pay the price for any Scanner within 15 Business Days
         after the date of the relevant invoice, Longport shall be entitled
         (without prejudice to any other right or remedy it may have) to :

         (a)      cancel or suspend any further delivery to USMS under any
                  Order; and

         (b)      charge USMS interest on the price at the rate of 4 per cent.
                  per annum above US base rate in force from time to time from
                  the date the payment became due until actual payment in full
                  is made. Any interest so accrued shall be separately invoiced
                  by Longport and paid by USMS with 15 business days after the
                  date of the relevant invoice, non-payment of any such invoice
                  shall be treated in the same manner as a Scanner related
                  invoice.

5.4      All payments shall be made by USMS in US Dollars to such bank account
         as Longport may from time to time notify in writing to USMS.

6.       DELIVERY

6.1      PLACE OF DELIVERY

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         Longport agrees to deliver or arrange delivery of the Scanner to the
         carrier or other third party nominated by USMS at the place of delivery
         set out in this Agreement or, if not so nominated or set out, such
         person or place notified to Longport by USMS and in such manner as
         Longport decides is appropriate in the circumstances. USMS agrees to
         pay all costs and comply with all requirements relating to the Scanner
         after such time. Longport shall not be responsible or liable in any way
         for the costs of any carriage after such delivery or for non-delivery
         or delay in such carriage, any loss of or damage to the Scanner during
         such carriage or the act or omission (negligent or otherwise) of the
         carrier or other third party in connection with any such carriage.

6.2      TIME OF DELIVERY

         Delivery shall take place when the Scanner is delivered to the carrier
         or other third party nominated by USMS as set out in Condition 6.1.
         Longport shall use its reasonable endeavors to meet any estimated or
         requested dates for delivery but shall not be liable in any way for any
         failure to meet any such date. The time of delivery shall not be of the
         essence of this Agreement, subject to Clause 6.4 of the Agreement.

6.3      DELIVERY OF SCANNER NOT ACCEPTED

         In the event of the carrier or other third party nominated by USMS as
         set out in Condition 6.1 not accepting delivery of the Scanner,
         Longport shall be free to store the Scanner at the risk and expense of
         USMS and/or to re-sell without prejudice to Longport's rights and
         remedies against USMS.

7.       TITLE AND RISK

7.1      TITLE IN SCANNER

         Legal and beneficial title in the Scanner shall remain in Longport
         until the Scanner is received and accepted by USMS, one of its
         subagents or end user customers, whoever shipment or delivery is made
         to. If payment for that Scanner is not received in 15 days of the
         delivery date Longport shall automatically recover the sum involved
         from the outstanding deposit and shall cease all future deliveries
         until the sum due is paid in full.

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7.2      RISK IN SCANNER Risk in the Scanner shall pass to USMS at the time of
         delivery of the goods to the carrier of other third party nominated by
         USMS.

8.       PRODUCT WARRANTY

         The Scanner, excepting the probe, will be supplied with a one-year
         limited warranty provided by Longport. If during that period the
         Scanner develops a fault the unit so affected will be repaired or
         replaced, at Longport's discretion, free of charge. This provision does
         not include Scanners that have been incorrectly used or otherwise
         damaged by the user or other party. The probe will be provided with a
         three month limited warranty under the same terms.

         Units requiring repair under warranty shall be returned to a Longport's
         facility. End users shall advise Longport of any fault by phone,
         e-mail, fax or through Longport's WEB site and if the reported problem
         cannot be corrected by simple remedial actions (e.g. confirming
         connecting power cords have not come loose, power is being provided
         from the wall socket, system software is being used and interpreted
         correctly etc), which will be undertaken in conjunction with phone and
         or e-mail communications, the unit or component will be collected by
         Longport or an agent of Longport for repair or replacement. If the unit
         cannot be repaired or replaced within four business days Longport will
         provide a loan system, unit the original unit is either repaired or
         permanently replaced.

         No unit shall be returned to Longport without the end-user first
         obtaining a return reference from Longport. If a unit is returned
         without the end user first obtaining a return reference Longport shall
         automatically level an administration charge as defined in Schedule 3.

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         If a unit is returned to Longport and is found to have no fault or one
         that simple remedial action as illustrated above would have solved,
         then Longport will have a right to charge a set fee administration as
         defined in Schedule 3 plus obtain reimbursement for shipping fees
         incurred.

9.       PRODUCT UPDATES

         Longport shall offer to USMS and or its subagents all appropriate
         product updates. Where these updates are in the form of software
         updates to the scanner program these shall be offered free of charge
         for the twelve months following product purchase.

10.      SELLER'S RESERVATION

         If the Scanner arrives in such state, through damage in transit or
         otherwise as would entitle USMS to reject the Scanner, Longport
         reserves the right to repair or replace the Scanner.

11.      EXCLUSIONS AND LIMITATIONS OF LIABILITY

11.1     NO LIABILITY FOR INDIRECT LOSS

         Longport shall not in any circumstances be liable for any claim,
         whether arising in agreement, tort or otherwise, for consequential,
         economic, special or other indirect loss including without limitation
         losses calculated by reference to profits, agreements, business,
         goodwill, income, production or accruals and whether or not arising out
         of any liability of USMS to any other party.

11.2     LIABILITY FOR DEATH AND PERSONAL INJURY

         Notwithstanding anything to the contrary in this Agreement, nothing in
         this Agreement shall exclude, restrict or limit Longport's liability
         for death or personal injury resulting from Longport's negligence.
         Longport shall provide product liability insurance with reputable
         insurance companies in the amount of at least $5 million per claim or
         series of connected claims.

11.3     ACCEPTANCE BY BUYER

         USMS accepts that the limitations and exclusions set out in these
         Conditions are reasonable having regard to all the circumstances
         including, without limitation, the Price.

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11.4     CONDITION TO SURVIVE TERMINATION OF THIS AGREEMENT

         This Condition 11 (Exclusions and Limitations of Liability) shall
         survive the termination of this Agreement for whatever cause.

12.      EXAMINATION AND CLAIMS

12.1     EXAMINATION OF SCANNER BY BUYER

         USMS, its sub-agents or end user customers shall upon delivery as set
         out in Condition 6.1 (Place of Delivery) examine the Scanner and shall
         promptly notify Longport, and the carrier where relevant, of any damage
         or defect reasonably apparent on reasonable examination of the Scanner.
         Claims in respect of any loss of or damage to the Scanner in transit
         shall be made within the period set out in Condition 17 (Loss or Damage
         in Transit). Claims in respect of any other damage, defect or shortage
         must be made within 10 Business Days following the time at which the
         Scanner is delivered as set out in Condition 6.1 (Place of Delivery).
         Notwithstanding the above, claims for defects pursuant to Condition 8
         (Seller's Reservation) must be made within 10 Business Days after any
         such defect is discovered.

12.2     BUYER TO NOTIFY SELLER IF SCANNER NOT DELIVERED

         USMS or its sub-agents shall notify Longport if the Scanner is not
         delivered within 72 hours of the expected date of delivery as notified
         by Longport.

12.3     CLAIMS AND NOTIFICATIONS TO BE IN WRITING

         All claims and notifications pursuant to this Condition 12 must be made
         to Longport by USMS in writing within the relevant period set out
         above, giving full details of any alleged loss, damage, defect,
         shortage or delay. Longport shall not be obliged to consider any claim
         not made in accordance with this Condition.

12.4     LONGPORT TO BE GIVEN OPPORTUNITY TO INSPECT SCANNER

         In all cases where complaints of damage, defects or shortages are made,
         USMS must afford Longport a reasonable opportunity to inspect the
         Scanner before any use is made of it by USMS.

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12.5     NO RETURN OF SCANNER WITHOUT LONGPORT'S CONSENT

         In no circumstances may the Scanner be returned to Longport by USMS
         without the prior written consent of Longport. The administration
         charge specified in Schedule 3 by Longport may be deducted from any
         credit allowed by Longport, or paid to Longport by USMS upon demand,
         where the Scanner is returned and no damage, defect, shortage on the
         part of Longport is found.

13.      DUTY OF CARE OF USMS

13.1     DISTRIBUTOR TO COMPLY WITH STATUTORY AND COMMON LAW DUTIES USMS and/or
         its sub-agents shall be responsible for all health, safety and other
         requirements in connection with the delivery, use or storage of the
         Scanner and shall comply with all relevant statutory provisions or
         other regulations relating to the Scanner for the period after risk in
         the Scanner has passed to USMS pursuant to Condition 7.3 (Risk in
         Scanner).

14.      INSURANCE

         USMS shall effect and maintain insurance of the Scanner at its own
         expense at all times after risk in the Scanner shall have passed to
         USMS until title in the Scanner shall have passed under Condition 7
         (Title and Risk) to its full replacement value against all risks.

15.      TRADE MARKS

         USMS shall ensure that any trade marks of Longport or other words or
         marks affixed to or used in relation to the Scanner are not
         obliterated, obscured or omitted without Longport's prior written
         consent. USMS shall not add, affix or use any additional words or marks
         to or in relation to the Scanner without Longport's prior written
         consent. USMS shall not process or alter the Scanner without Longport's
         prior written consent to the continued use on or in relation to the
         Scanner of any trade marks of Longport or any other words or marks
         affixed to or used in relation to the Scanner.

16.      FORCE MAJEURE

         Longport and USMS shall not be liable for any loss, damage or otherwise
         as a direct or indirect result of the failure to perform or delay in
         performing any of its obligations nor shall there be a breach of the
         Agreement as a result of the occurrence of any cause whatsoever beyond
         its control, including without limitation acts of God, war,
         hostilities, riot, terrorism, explosion, accident, flood, sabotage,
         lack of adequate fuel, power, raw materials, containers, transportation
         or labor, strike, lock-out or injunction (provided that

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         Longport or USMS or USMS's sub-agents shall not be required to settle a
         labor dispute against their own best judgment) compliance with Federal
         and State laws, regulations or orders, breakage or failure of machinery
         or apparatus, or any other cause, whether or not of the class or kind
         enumerated, which affects performance of the Agreement arising from or
         attributable to acts, events, non-happenings, omissions or accidents
         beyond the reasonable control of the party affected.

17.      SUB-CONTRACTORS

         Longport shall be entitled to sub-contract the performance of the whole
         or part of this Agreement without prior notice to or the consent of
         USMS. In any contract of which these Conditions form the basis Longport
         contracts for and on behalf of itself and its sub-contractors.

18.      SPECIAL PACKING

         An additional charge will be made to USMS for any special packaging
         required or requested by USMS. USMS or its sub-agents shall retain all
         scanner packaging for the purposes of returning the Scanner to
         Longport, in accordance with the provisions of this Agreement.

19.      LOSS OR DAMAGE IN TRANSIT

         Longport shall repair or replace free of charge any Scanner lost or
         damaged in transit or not delivered in accordance with this Agreement
         provided that USMS shall give Longport written notice of any loss,
         damage or non-delivery (together with full details of the loss, damage
         or non-delivery) at least 2 Business Days prior to the latest date on
         which notification of any such loss, damage or non-delivery must be
         made to any carrier in accordance with that carrier's conditions of
         carriage and, in any event, no later than 10 Business Days after the
         time at which the Scanner is delivered as set out in Condition 6.1
         (Place of Delivery) or is due to have been so delivered under this
         Agreement.

20.      SAFETY

         USMS and its sub-agents shall comply fully with all user instructions
         and safety recommendations issued by Longport in relation to the
         Scanner and shall employ an adequate number of suitably qualified
         personnel to operate the Scanner and Longport shall

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         not be liable to USMS as a result of USMS failing fully to observe the
         provisions of this Condition, save where death or personal injury
         results from Longport's negligence.

21.      CONFIDENTIAL INFORMATION

21.1     Except as provided by Conditions 21.2 and 21.3, USMS and Longport shall
         at all times during the continuance of this Agreement and after its
         termination :

         (a)      use their best endeavors to keep all Restricted Information
                  confidential and accordingly not to disclose any Restricted
                  Information to any other person; and

         (b)      not use any Restricted Information for any purpose other than
                  the performance of the obligations under this Agreement.

21.2     Any Restricted Information may be disclosed by USMS or Longport to :

         (a)      any customer or prospective customer of USMS;

         (b)      any governmental or other authority or regulatory body; or

         (c)      any employees of USMS or Longport or of any of the
                  aforementioned persons,

         to such an extent only as is necessary for the purposes contemplated by
         this Agreement or as is required by law and subject in each case to
         USMS or Longport using their best endeavors to ensure that the person
         in question keeps the same confidential and does not use the same
         except for the purposes for which the disclosure is made.

21.3     Any Restricted Information may be used by the receiving party for any
         purpose or disclosed by the receiving party to any other person, to the
         extent only that it is at the date hereof, or hereafter becomes public
         knowledge through no fault of the receiving party (provided that in
         doing so the receiving party shall not disclose any Restricted
         Information which is not in the public domain).

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21.4     For the purpose of this Condition 21, "Restricted Information" means
         all information (whether written, oral or in electronic form) relating
         to Longport or USMS and their businesses :

         (a)      delivered to the other party under this Agreement;

         (b)      otherwise in the possession or under the control of the
                  receiving party, and including without limitation any
                  drawings, designs, specifications relating to the Scanner
                  and/or any modification of the Scanner; and

         (c)      for the benefit of doubt the terms of this Agreement shall
                  also be considered restricted information.

                                                                    CONFIDENTIAL

                                       33
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CONFIDENTIAL

                                   SCHEDULE 3

                       SUPPORT SERVICES AND PRICE SCHEDULE

Longport agrees to support USMS, its sub-agents and their end-user customers
with the following services.

1        INCLUSIVE SERVICES

The following support services shall be included in the purchase price as
defined in Clauses 7.5 and 7.6 of the Distribution Agreement.

"System training" to be undertaken as close as practical to the delivery date of
the Scanner. The "system training" shall either be undertaken at Longport
offices or those of the end user. Whereas the end users offices are within 175
miles radius of Longport's offices no additional charge for on-site training
shall be made.

System training will take one full working day (~5 hours). The training course
will provide tuition to a maximum of five individuals. (If end users wish more
than five people to attend this course an additional fee may be charged.)

Customer support for twelve months from the date of purchase. This "customer
support" shall take the form of direct telephone (1-800 number) and e-mail
support as well as WEB based capabilities. Additional visits to customer's
facilities shall be undertaken at Longport's discretion, it would however be
expected that a follow-up visit to every end user facility will normally be made
within two months of system training.

Customer Support shall only be provided via individuals who have attended and
passed the "system training" course.

Product warranty shall be as described in Clause 8 of the Terms and Conditions.

The scanner purchase price includes two additional software licenses allowing
the system user to view images on facility PCs or laptops. End users shall
however not distribute Longport's software to any third party.

                                                                    CONFIDENTIAL

                                       34
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CONFIDENTIAL

2        OPTIONAL ENHANCEMENTS TO SCANNER SERVICES AND ANCILLARY COMPONENTS

Longport will also provide enhanced product support packages and application
training courses for which additional fees may be charged.

THREE-YEAR WARRANTY AND CUSTOMER SUPPORT PACKAGE. This will extend the product
warranty to three years (excepting the probe) and include software up-dates and
customer support package for three years. COST $3,000 PER SYSTEM

EXTENDED THREE-YEAR WARRANTY ONLY. This will extend the product warranty to
three years (excepting the probe) COST $2,200 PER SYSTEM.

SOFTWARE UPDATES. $500 PER YEAR after the first year or $800 FOR TWO YEARS if
paid in advance.

PROBE EXCHANGE. The probe(s) will be supported beyond the warranty period
through an exchange system, where faulty probes will be returned to Longport and
exchanged for replacement units. (Longport shall ship the replacement probe
within two business days of receipt of the faulty unit and payment.) Each
replacement unit will be provided with a three-month warranty. COST $500 PER
EXCHANGE. (Price assumes probe has not been damaged by improper use or
handling.)

ADDITIONAL PROBES. Additional probe will be supplied at a cost of $4,000 PER
UNIT.

ANCILLARY EQUIPMENT.

Longport can supply the following ancillary equipment.

         -        Cart with medical grade UPS(b) $1,000 PER UNIT.

         -        Printers / digital cameras price on application

         -        Probe Membranes $25.00 per box of 100 (exclude shipping)

         -        Ultrasound coupling jell $36.00 per case of 12 bottles
                  (excluding shipping)

---------------------
(b) If USMS, one of its sub-agents or any end user wishes to supply their own
UPS to operate with the Scanner they must advise Longport of the unit they
intend to use and obtain written approval from Longport on the suitability of
that unit. Failure to do this could invalidate the Scanner warranty and negate
Longport's product liability responsibility.

                                                                    CONFIDENTIAL

                                       35
<PAGE>

CONFIDENTIAL

ADMINISTRATION FEE. The administration fee to be charged to users that return
goods without obtaining a return reference or return goods that are found not to
be at fault will be $50, this fee excludes any shipping costs incurred by
Longport.

CLINICAL APPLICATION TRAINING Longport is developing a series of clinical
training courses.

Initially a wound assessment and prevention package will be offered. This course
will undertaken at the user's premises or at Longport over two full days (time
includes system training). This training package will include consultation on
Scanner protocols for wound assessment / prevention outside of the training
course. The cost of the course will be $2,500 PER FACILITY (five people
attending course). If travel beyond a 175 mile radius of Longport's office(s) is
required additional charges to cover travel expenses incurred may be made. If
the course is undertaken within 50 miles of Longport's office the fee will be
reduced to $2,000.

(It is also possible to provide this course to a group of facilities, price on
application.)

Other clinical training courses will be added. Also, additional courses will be
run for staff members that joined subsequent to the system training or could not
attend for other reasons. These courses will be run at single venues every few
months.

DATA ARCHIVING AND THIRD PARTY IMAGE ASSESSMENT

Packages can be developed to address the needs of individual centers or groups
who require remote data archiving and or third party image assessment.

TRAINING AND SUPPORT ACCREDITATION PROGRAMS

Cost on application.

                                                                    CONFIDENTIAL

                                       36
<PAGE>

CONFIDENTIAL

                                   SCHEDULE 4
      EXISTING WOUND CARE AGENTS AND DISTRIBUTORS IN THE USA THAT LONGPORT
                      HAS RELATIONSHIPS AND OBLIGATIONS TO

-        Smith & Nephew

-        EHOB

-        Advanced Vital Services

-        JVD Inc

-        Austin Medical

-        Goodman Group & affiliated companies

-        Universal Business Solutions

-        Eden Barn Foundation & affiliated companies

-        Roomberg Consultancy Group (RCG)

-        James McGonigle

-        Eric Salzberg

-        John Halas

-        Bundy / Shoemaker Families (Wisconsin only)

-        Dave Pribonic

-        Jason Ford

NURSING HOMES THAT LONGPORT AND/OR THE ABOVE ORGANIZATIONS ARE CURRENTLY WORKING
WITH

         -        Virtua Health Systems

         -        Genesis

         -        Allied Health Services

         -        Nursing Homes operated by Carmalite Sisters

         -        National Health Care (NHC)

         -        Fountain View / Skilled Healthcare

         -        Kindred Healthcare

                                                                    CONFIDENTIAL

                                       37

<PAGE>

CONFIDENTIAL

SIGNED by

for and on behalf of
LONGPORT INCORPORATED /s/ Michael Boyd
                      -------------------------
Position: C.E.O.

in the presence of :

Witness :
Signature       /s/ Ruth Boyd
                -------------------------------
Name            Ruth Boyd

Dated           Feb. 11, 2004

SIGNED by
for and on behalf of
US MEDICAL SYSTEMS INCORPORATED  /s/ Peter G. Futro
                                 -------------------------

Position: President

in the presence of :

Witness :

Signature       /s/ George Anagnost
                -------------------------------
Name            George Anagnost

Dated Feb. 11, 2004

                                                                    CONFIDENTIAL

                                       38
<PAGE>

CONFIDENTIAL

                            DATED February 11th 2004

         (1)      LONGPORT INCORPORATED

         (2)      US MEDICAL SYSTEMS INCORPORATED

                             DISTRIBUTION AGREEMENT

                                                                    CONFIDENTIALNumber *0*                                                                                                     Shares*0*

                                                                                        SEE REVERSE FOR IMPORTANT
                                                                                        NOTICE ON TRANSFER RESTRICTIONS
                                                                                        AND OTHER INFORMATION

                                                                                                                     CUSIP ________

                                          NORTHSTAR REALTY FINANCE CORP.
                           a Corporation Formed Under the Laws of the State of Maryland

         THIS CERTIFIES THAT **Specimen**

is the owner of **Zero (0)**

fully paid and nonassessable shares of Common Stock, .01 par value per share, of

                                          NorthStar Realty Finance Corp.

(the "Corporation") transferable on the books of the Corporation by the holder hereof in person or by its duly
authorized attorney, upon surrender of this Certificate properly endorsed.  This Certificate and the shares
represented hereby are issued and shall be held subject to all of the provisions of the charter of the
Corporation (the "Charter") and the Bylaws of the Corporation and any amendments thereto.  This Certificate is
not valid unless countersigned and registered by the Transfer Agent and Registrar.

         IN WITNESS WHEREOF, the Corporation has caused this Certificate to be executed on its behalf by its duly
authorized officers.

DATED __________________

Countersigned and Registered:
 Transfer Agent and Registrar
                                                                                                 _______________________(SEAL)
                                                                                                 President

By: ___________________________                                                                  _____________________________
   Authorized Signature                                                                          Secretary

                                IMPORTANT NOTICE
                                ----------------
                  The Corporation will furnish to any stockholder, on request
and without charge, a full statement of the information required by Section
2-211(b) of the Corporations and Associations Article of the Annotated Code of
Maryland with respect to the designations and any preferences, conversion and
other rights, voting powers, restrictions, limitations as to dividends and other
distributions, qualifications, and terms and conditions of redemption of the
stock of each class which the Corporation has authority to issue and, if the
Corporation is authorized to issue any preferred or special class in series, (i)
the differences in the relative rights and preferences between the shares of
each series to the extent set, and (ii) the authority of the Board of Directors
to set such rights and preferences of subsequent series. The foregoing summary
does not purport to be complete and is subject to and qualified in its entirety
by reference to the charter of the Corporation (the "Charter"), a copy of which
will be sent without charge to each stockholder who so requests. Such request
must be made to the Secretary of the Corporation at its principal office or to
the Transfer Agent.

                  The shares represented by this certificate are subject to
restrictions on Beneficial and Constructive Ownership and Transfer for the
purpose, among others, of the Corporation's maintenance of its status as a Real
Estate Investment Trust under the Internal Revenue Code of 1986, as amended (the
"Code") and for certain other purposes under the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"). Subject to certain further
restrictions and except as expressly provided in the Corporation's Charter, (i)
no Person may Beneficially or Constructively Own shares of the Corporation's
Common Stock in excess of 9.8 percent (in value or number of shares) of the
outstanding shares of Common Stock of the Corporation unless such Person is an
Excepted Holder (in which case the Excepted Holder Limit shall be applicable);
(ii) no Person may Beneficially or Constructively Own shares of Capital Stock of
the Corporation in excess of 9.8 percent of the value of the total outstanding
shares of Capital Stock of the Corporation, unless such Person is an Excepted
Holder (in which case the Excepted Holder Limit shall be applicable); (iii) no
Person may Beneficially or Constructively Own Capital Stock that would result in
the Corporation being "closely held" under Section 856(h) of the Code or
otherwise cause the Corporation to fail to qualify as a REIT; (iv) no Person may
Transfer shares of Capital Stock if such Transfer would result in the Capital
Stock of the Corporation being owned by fewer than 100 Persons; and (v) no
Person may Beneficially Own shares of Capital Stock that would result in 25% or
more of any class of the Equity Stock being Beneficially Owned by one or more
ERISA Investors until such class qualifies as "publicly offered securities"
within the meaning of Section 2510.3-101 of the regulations of the Department of
Labor or until another exception to such regulation applies. Any Person who
Beneficially or Constructively Owns or attempts to Beneficially or
Constructively Own shares of Capital Stock which causes or will cause a Person
to Beneficially or Constructively Own shares of Capital Stock in excess or in
violation of the above limitations must immediately notify the Corporation. If
any of the restrictions on transfer or ownership are violated, the shares of
Capital Stock represented hereby will be automatically transferred to a Trustee
of a Trust for the benefit of one or more Charitable Beneficiaries, except if
the Beneficial or Constructive Owner of such Capital Stock is an ERISA Investor.
A Transfer to an ERISA Investor who attempts to Beneficially or Constructively
Own shares of Capital Stock which causes or will cause such ERISA Investor to
Beneficially or Constructively Own shares of Capital Stock in excess or in
violation of the above limitations shall be void ab initio to the extent that
such limitation is exceeded. In addition, the Corporation may redeem shares upon
the terms and conditions specified by the Board of Directors in its sole
discretion if the Board of Directors determines that ownership or a Transfer or
other event may violate the restrictions described above. Furthermore, upon the
occurrence of certain events, attempted Transfers in violation of the
restrictions described above may be void ab initio. All capitalized terms in
this legend have the meanings defined in the charter of the Corporation, as the
same may be amended from time to time, a copy of which, including the
restrictions on transfer and ownership, will be furnished to each holder of
Capital Stock of the Corporation on request and without charge. Requests for
such a copy may be directed to the Secretary of the Corporation at its Principal
Office.
          KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN
       OR DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A
             CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE.
                  The following abbreviations, when used in the inscription on
the face of this Certificate, shall be construed as though they were written out
in full according to applicable laws or regulations:

         TEN COM    -  as tenants in common                    UNIF GIFT MIN ACT ____________  Custodian
         TEN ENT    -  as tenants by the entireties                           (Custodian)         (Minor)
         JT TEN     -  as joint tenants with right of                         under Uniform Gifts to Minors Act of
                       survivorship and not as tenants                        ________________________________
                       in common                                             (State)
                                                      Additional abbreviations may also be used though not in the above list.

         FOR VALUE RECEIVED, ________________________ HEREBY SELLS, ASSIGNS AND TRANSFERS UNTO
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE ___________________

-----------------------------------------------------------------------------------------
(Please Print or Typewrite Name and Address, Including Zip Code, of Assignee)
____________________________  (______________) shares of Common Stock of the Corporation represented by this
Certificate and do hereby irrevocably constitute and appoint ________________________________ attorney to
transfer the said shares of Common Stock on the books of the Corporation, with full power of substitution in the
premises.

Dated _______________________

                                                      ------------------------------------------------------------------------
                                                      NOTICE:  The Signature To This Assignment Must Correspond
                                                      With The Name As Written Upon The Face Of The Certificate
                                                      In Every Particular, Without Alteration Or Enlargement Or
                                                      Any Change Whatever.

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