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                                                                  EXHIBIT 10.34

                AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT
                         Dated as of December 30, 1998
                                    between
               Nitinol Medical Technologies, Inc. (the "Lender")
                                      and
                Image Technologies Corporation (the "Borrower")

     This Amendment No. 1 (the "Amendment") to that certain Loan and Security 
Agreement dated as of May 29, 1998 (the "Loan Agreement") by and among Nitinol 
Medical Technologies, Inc. (the "Lender") and Image Technologies Corporation 
(the "Borrower"). All capitalized terms used therein and not otherwise defined 
shall have the meanings ascribed to such terms in the Agreement.

     WHEREAS, the Company has entered into a Revolving Credit Note No. 2 with 
the Lender of even date herewith under which the Purchaser will lend to the 
Company the sum of $50,000.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     1.   Amendment of Article I. The definition of "Revolving Credit
          ----------------------
Commitment" is deleted and replaced with the following language: "Revolving
Credit Commitment" means the obligation of Lender to make Revolving Loans to
Borrower in an aggregate amount not to exceed $2,050,000, less the principal
amount of any Loan that has been converted into shares of Series A Preferred
pursuant to Article IX of this Agreement."

     2.   Miscellaneous.
          ------------- 

     2.1  Governing Law. This Amendment shall be governed by and construed and
          -------------
enforced in accordance with the laws of the Commonwealth of Massachusetts
without giving effect to the principles of conflicts of laws thereof.

     2.2  Remaining Agreement.  Except as amended hereby, the Loan Agreement 
          -------------------
shall remain in full force and effect in all respects.

     2.3  Counterparts; Effectiveness. This Amendment may be signed in any 
          ---------------------------
number of counterparts, all of which taken together shall constitute one 
agreement, and any of the parties hereto may execute this Agreement by signing 
any such counterpart. This Amendment shall become effective when executed by the
Borrower and the Lender.








    

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     IN WITNESS WHEREOF, this Amendment No. 1 to the Loan Agreement is hereby 
executed as of the date first above written pursuant to Section 8.2 of the Loan 
Agreement by (i) the Borrower and (ii) the Lender.

                                     BORROWER:                            
                                                                          
                                     IMAGE TECHNOLOGIES CORPORATION       
                                                                          
                                                                          
                                                                          
                                     By: /s/ James C. Torraco             
                                         ------------------------------   
                                         Name:  James C. Torraco          
                                         Title: President                 
                                                                          
                                     LENDER:                              

                                     NITINOL MEDICAL TECHNOLOGIES, INC.   
                                                                          
                                                                          
                                                                          
                                     By: /s/ Thomas M. Tully              
                                         ------------------------------   
                                         Name:  Thomas M. Tully           
                                         Title: President                 




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