Document:

FY 2000                           IMATRON INC.                         FORM 10-K
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                                  Exhibit 10.33

                            DISTRIBUTORSHIP AGREEMENT
                                      among
           IMATRON INC., MEDITEC CORPORATION AND MARUBENI CORPORATION
                               10. November , 2000

         THIS  AGREEMENT  is entered into as of November 10, 2000 by and between
IMATRON INC., a corporation  organized under the laws of the State of New Jersey
with its  principal  office at 389  Oyster  Point  Blvd.,  South San  Francisco,
California 94080, United States of America ("Imatron"),  MEDITEC CORPORATION,  a
corporation  organized  under the laws of Japan,  with its  principal  office at
3-14, Kudan-Minami,  2-chome, Chiyoda-ku, Tokyo, Japan ("Importer") and MARUBENI
CORPORATION, a corporation organized under the laws of Japan, with its principal
office at 4-2, Ohtemachi 1-chome, Chiyoda-ku, Tokyo, Japan ("Distributor"),

WITNESSETH:

         WHEREAS,  Imatron  desires  to  appoint  Distributor  as the  exclusive
distributor  of the Products  (hereafter  defined)  and appoint  Importer as the
exclusive  importer  and  service  provider  of the  Products  in the  Territory
(hereafter defined);

         WHEREAS,  Distributor desires to accept such appointment and to perform
the duties and obligations as hereinafter set forth; and

         WHEREAS, Importer desires to accept such appointment and to import into
the Territory and sell the Products to Distributor;

         NOW,  THEREFORE,  in consideration of the mutual covenants  hereinafter
set forth, the parties hereto hereby agree as follows:

         1. Appointment of Importer and Distributor.

                  (a)  Appointment.  Imatron hereby appoints (i) Importer as its
exclusive  importer  to  import  the  Products  into  the  Territory  and as its
exclusive  service  provider  in  the  Territory  and  (ii)  Distributor  as its
exclusive  distributor  in the  Territory  for the Imatron  EBT Scanner  systems
including  spare parts and all options and  accessories  as shall be offered for
sale by Imatron.  A complete Imatron EBT Scanner system is hereinafter  referred
to as a "System" and Systems together with spare parts,  options and accessories
are  collectively  referred to as "Products"  which  expressions  include all of
their  modifications,  developments  and improvements and new CT scanner systems
invented or developed  and for sale by Imatron.  The  specifications  of a basic
complete System are set forth in APPENDIX A hereto.

                  (b) Territory.  The geographical  area to which this Agreement
pertains is the country of Japan  ("Territory").  Imatron agrees that during the
term of this  Agreement it will not authorize  any other  importer to import the
Products into the Territory  nor any other  distributor  to sell the Products in
the  Territory  nor export the Products  into the Territory nor will it sell the
Products  (either  directly of  indirectly)  to any  purchaser or importer  that
intends  to export  the  Products  into the  Territory.  During the term of this
Agreement,  Distributor  agrees it will  neither  sell nor service the  Products
outside the Territory,  nor will  Distributor sell the Products (either directly
or indirectly) to any purchaser that intends to distribute the Products  outside
the Territory, unless specifically authorized in writing by Imatron. Distributor
agrees not to distribute  or sell products  acquired from any other person which
are  similar to the  Products if  distribution  or sale by  Distributor  of such
similar products are competitive with distribution or sale of Products.  Imatron
agrees to refer to Distributor all inquiries or orders for the Products received
from any  person,  firm,  or company  residing  or  carrying  on business in the
Territory.

                  (c) Term.  The term of this  Agreement  shall  commence on the
date set forth above and shall continue until December 31, 2003.  This Agreement
shall  immediately  terminate upon written notice to such effect by either party
hereto to the other parties, without the necessity of prior advance notices, (i)
in the event of such  other  party's  voluntary  or  involuntary  bankruptcy  or
insolvency,  (ii) in the  event  that  such  other  party  shall  make a general
assignment  of its  property for the benefit of a creditor or (iii) in the event
that a  petition  shall  have  been  filed  against  such  other  party  under a
bankruptcy  law,  any other law for relief of  debtors,  or other law similar in

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purpose or effect,  the effect of which is to cause such other party to have its
business effectively  discontinued.  This Agreement shall immediately  terminate
upon written notice to such effect by Imatron to the other parties,  without the
necessity of prior advance notice, in the event Distributor or Importer shall be
in default in the payment of any amounts due Imatron  hereunder  for the sale of
Products, or any parts thereof, or for the providing of services.

                  (d)  Payment.  In  consideration  for (i) the  appointment  by
Imatron of Importer and  Distributor as its exclusive  importer and  distributor
respectively pursuant to this Paragraph,  (ii) the arrangement to be rendered by
Imatron  pursuant to  Paragraph  2, and (iii) the  transfer of the  Homologation
rights for the System  pursuant  to  Paragraph  22 and other  rights,  title and
interest set forth in the Transition  Agreement (hereafter defined) from Imatron
to  Distributor  by  Imatron,  Distributor  agrees  to  pay  to  Imatron  sum of
Yen500,000,000.-.  Yen250,000,000.- out of Yen500,000,000.- shall be paid within
ten(10)  days  following  the  execution  of  this   Agreement.   The  remaining
Yen250,000,000 shall be paid within ten(10)days  following the effective date of
transfer of Homologation rights to Distributor.

         2. Transition from Previous Distributor.

                  (a) Assignment. In consideration for the payments set forth in
Section  1(d),  above,  Imatron  assigns and  transfers to  Distributor  without
payment to Imatron, all of its rights, title and interest in and to that certain
Transition  Agreement dated Oct 5th, 2000 (the "Transition  Agreement")  between
Imatron and Imatron Japan INC., a corporation organized under the laws of Japan,
with its principal office at 3-5-7 Hatchobori Chuo-ku,  104-00032,  Tokyo, Japan
("IJ" ) pursuant to the terms and  conditions  of an Assignment  and  Assumption
Agreement  to be entered  into  simultaneous  herewith in the form of APPENDIX B
hereto ("Assignment and Assumption  Agreement").

                  (b)  Assumption  of  Obligations.  In  consideration  for  the
transfer  as  provided  in  Paragraph  2(a)  above and  strictly  subject to and
pursuant to the terms and conditions of the Assignment and Assumption Agreement,
Distributor agrees to assume and perform all of Imatron's  obligations under the
Transition  Agreement  save  for (i) the  obligations  which  can  logically  be
performed  solely by Imatron  such as (without  limitation)  the  obligation  to
continue to provide replacement parts under Clause 4 of the Transition Agreement
(which shall therefore be performed by Imatron) and (ii) the  obligations  which
cannot be performed by  Distributor  without  assistance of Imatron (which shall
therefore be performed by  Distributor  with  necessary  assistance of Imatron);
provided,  however,  that  Distributor is not liable to perform any  obligations
arising from the Service  Contracts  for any reasons  having its origin prior to
the Closing Date (as defined in the Transition  Agreement)  and further  Imatron
shall hold harmless Distributor and Importer from any claims,  losses or damages
incurred on account of or based on the Service  Contracts  as they relate to the
period prior to the Closing Date.

                  (c) Transition of Employees.  In connection  with the transfer
of service  responsibilities  for the installed based of Imatron EBT scanners in
Japan from Imatron to the Distributor, Imatron agrees to use its best efforts to
transfer to the Distributor the one (1) service manager and the four (4) service
employees  currently  employed  by  Imatron.  Distributor  agrees to employ such
employees on terms and  conditions  not less  favorable  than currently in place
with such  employees.  Imatron does not guaranty that any or all the transferred
employees will accept employment by Distributor.

3.1

         3. Duties of Distributor and Importer.  In addition to all other duties
herein set forth, Distributor shall have the following obligations:

                  (a)  Solicitation  of Orders.  Distributor  shall use its best
efforts in  soliciting  orders for and  selling  the  Products  for  delivery to
customers  within the  Territory.

                  (b)  Annual  Target.  As a target,  Distributor  shall use its
reasonable  efforts to purchase  from  Imatron  through  Importer  fifteen  (15)
Systems,  the  breakdown of which are four (4) Systems  during  Y2001,  five (5)
Systems  during  the  second  year,  and six (6)  Systems  during the third year
(respectively,  "the  Target  Quantity").

                  (c) Prompt  Payment.  Importer shall promptly  comply with all
terms and conditions of sale described hereunder,  including without limitation,
prompt payment of the price of the Products sold to Importer by Imatron. Payment
shall be made according to the following schedule:  Sixty days prior to delivery
of each System, Importer shall provide a letter of credit for the full amount of
each System.  Such letter of credit  shall  provide for partial  shipments.  The
service and spare parts terms shall be net 30 days.

                  (d)  Advertising  and Mailing Lists.  Importer shall advertise
the Products to such an extent, and in such media, as is reasonably necessary to
encourage  the sale of the Products in the  Territory.  Importer  agrees that it
will not  advertise the sale of the Products,  without first  submitting  (fully
translated into English) such

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advertising  to,  and  obtaining  Imatron's  written  approval  thereof  , which
approval  in all  instances  shall be  contingent  upon the entire  cost of said
advertising  being paid by Importer,  unless  otherwise  agreed to in writing by
Imatron. Importer shall accept all liability, and hold Imatron harmless, for the
content of any  advertising  it shall  publish or  distribute  in Japan  without
Imatron's written  approval.  Importer shall develop and maintain a mailing list
of  existing  and  prospective   customers  within  the  Territory,   and  shall
periodically mail advertising literature to said customers.

                  (e) Sales Force and Service  Personnel.  Distributor  shall at
all times maintain an adequate staff of sales personnel  reasonably necessary to
carry out the  obligations of  Distributor  under this  Agreement,  and Importer
shall fully train such sales personnel with respect to all pertinent  aspects of
the  Products.   Importer  shall  also  train  and  maintain  such  service  and
installation personnel as are necessary to service the installed base of Systems
in Japan and as otherwise  necessary for the  performance of Importer's  service
obligations under this Agreement.

                  (f) Sales Reports.  Distributor  shall make quarterly  written
reports on the sale and distribution of the Products and Distributor's  business
activities in promotion and distribution  thereof,  together with information on
the market situation of the Territory, including:

                          (i)  Names of active sales prospects.

                          (ii) Government regulations affecting the Products.

                          (iii)Competitive products and competitor's activities.

                          (iv) Commonly   experienced  component   failures  and
                               service problems.

                  (g) Other  Duties  of  Distributor.  Distributor  shall at all
times maintain sales data on the Products,  including price lists,  catalogs and
technical  bulletin  files.  Distributor  shall  accept  and  service  all sales
inquiries  with  respect to the Products  relating to possible  sales within the
Territory.   Distributor  and  Importer  shall  not  in  any  way,  directly  or
indirectly,  disparage Imatron or any of Imatron's  products.

                  (h) Installation.  Importer shall be responsible for all costs
of  installation,  customer  warranties  and  applications  training  of Systems
purchased  pursuant to this Agreement.  Imatron shall provide a limited warranty
with regard to parts during the warranty period.

                  (i)  Alteration  of  Products.  Distributor  shall  not  alter
Products in any way without written consent by Imatron.

                  (j)  Prohibition  on  Manufacture  or  Sale  of the  Products.
Distributor  shall not engage in the  manufacture  or sale of any products which
are now or in the future may be competitive,  with the Products  covered in this
Agreement in the Territory.

                  (k) Prohibition on Purchase and Sale of Used Products.  During
the term of this Agreement,  Distributor shall not engage in the purchase and/or
sales of used Systems  within or without the Territory with the exception of any
System sold by Distributor during the term of this Agreement.

3.2
         4.  Individual  Contract and Other  Conditions.  The detailed terms and
conditions  of each  individual  purchase of the Products  hereunder by Importer
from Imatron, except the following conditions,  shall be mutually agreed upon at
the time of each such purchase and confirmed by such parties in a  "Confirmation
of Purchase  Contract"  (the form of which is attached  hereto as APPENDIX C and
made  an  integral  part  hereof)  to be  issued  by  Importer  to  Imatron  and
countersigned and returned by Imatron.

Each such  individual  purchase  contract  between Imatron and Importer shall be
deemed to incorporate all of the terms and conditions  hereof to the extent that
they may be applicable; provided, however, that the terms and conditions of this
Agreement  shall, in the event of a conflict,  have precedence over those on the
reverse side of the "Confirmation of Purchase Contract".  The failure by Imatron
to return any  countersigned  "Confirmation of Purchase  Contract" within thirty
(30) days after  dispatch by Importer  shall be deemed an acceptance  thereof by
Imatron.

                  (a)  Prices.  Except as may  otherwise  be agreed  between the
parties,  the price of each  System  FOB  Imatron  dock,  South  San  Francisco,
California,  U.S.A.  shall be United  States  Dollars One Million  Seven Hundred
Thousand  (US$1,700,000).  Prices for add-ons and optional products shall be the
prices  established  from time to time by Imatron.  The current  prices for such
add-ons and optional  products are set forth in APPENDIX A. In case the quantity
of the Systems which  Distributor  has purchased from Imatron  through  Importer
exceeds the Target  Quantity in each year set forth Paragraph 3(b), the price of
the excess  Systems for such year shall be reduced to United States  Dollars One
Million Five Hundred  Thousand  (US$1,500,000).  Should the exchange rate of the
Japanese Yen devaluate against the U.S.Dollar at the date of placing an order to
Yen120 or less, Imatron shall compensate the Distributor's exchange loss between
the actual rate at the date of placing an order and Yen120.

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Should the exchange rate of the Japanese Yen evaluate  against the U.S Dollar at
the date of  placing  an order to Yen100 or more,  Imatron  shall  increase  the
System price by the  percentage of evaluation  between Yen100 and actual rate at
the date of placing an order.

                  (b) No  Liability  for Late  Deliveries.  Imatron  will not be
liable for any penalty  clause from  customers  accepted by  Distributor  unless
Imatron has agreed in writing to this  clause at the time of order

                  (c)  Customs.   Importer  shall  be  responsible  for  customs
clearance on the Products and components being imported into the Territory.

                  (d)  Taxes.   The  prices  specified  in  this  Agreement  are
exclusive of any sales, use, excise; or similar taxes (other than any federal or
state  taxes on net income of  Imatron),  and of any  export and import  duties,
which may be levied  upon or  collectable  by  Imatron  as a result of the sale,
lease or shipment of the Products to Importer,  or its  customers,  any services
performed by Imatron in connection herewith,  and use, resale or sublease of the
Products by Importer or its customers.  Importer  agrees to pay and otherwise be
fully responsible for any such taxes and duties, unless in lieu thereof Importer
provides  Imatron  with an  exemption  certificate  acceptable  to the  relevant
governmental  authorities.  Imatron  shall  have the  right,  but  shall  not be
obligated to pay any such taxes or duties directly, in which case Importer shall
immediately reimburse Imatron in the amount thereof upon presentation by Imatron
of evidence of payment.

         5. Changes in Products.

                  (a) Right to Make  Changes.  Imatron may, at any time,  either
add  to,  delete,  or  change  any of the  Products  pursuant  to any  updating,
obsolescence,  or other  change in the  Products  occurring  within the ordinary
course of business.  Imatron will notify  Importer of any such change as soon as
practicable.  However, if such change results in impossibility or difficulty for
Importer to import the Products under Japanese law or the necessity of obtaining
of a new  license  or  amendment  to the  existing  license  for  import  to the
Territory, Distributor may accordingly amend the Target Quantity.

                  (b) Training.  Imatron agrees to provide  additional  training
for designated  Distributor or Importer  personnel at mutually agreed upon rates
where this becomes necessary because of changes made to the Products.

         6. Warranty and Warranty Service.

                  (a) Limited Warranty. Imatron warrants to Distributor that the
Products provided in accordance with the terms hereof shall be free from defects
in  material  and  workmanship  and in any event  comply  with the  requirements
specified by the Ministry of Health of Japan. The foregoing  warranty (i) in the
case of new Systems shall be for a period of twelve (12) months from the date on
which the Products are put into  operation  with the exception of any options or
parts so noted in  APPENDIX A and (ii) in the case of  refurbished  Systems  and
renewal and/or replacement parts shall be for ninety (90) days from installation
or until  termination of the System warranty period,  whichever is longer.  This
warranty  pertains to all parts  failing in the course of normal  operation.  It
does not cover  parts  modified  without the prior  authorization  of Imatron or
parts  damaged due to  mishandling  or misuse or failure to operate and maintain
the  Products  in  accordance  with the  operating  manuals  and  specifications
supplied to Importer or  Distributor.  Notwithstanding  the  foregoing,  Imatron
makes no warranty  with regard to options or  accessories  purchased  from other
vendors but agrees to assign to Distributor  any warranties  received by Imatron
from its suppliers for such options and accessories.  The AccuImage  Workstation
is warranted as a part of the System.

EXCEPT AS SET FORTH  ABOVE,  IMATRON  MAKES NO  REPRESENTATIONS  OR  WARRANTIES,
WHETHER  EXPRESS OR IMPLIED,  WITH RESPECT TO THE  PRODUCTS,  INCLUDING  WITHOUT
LIMITATION ANY IMPLIED WARRANTY OF  MERCHANTABILITY  OR FITNESS FOR A PARTICULAR
PURPOSE.  DISTRIBUTOR  ACCEPTS THE PRODUCTS  SOLELY ON THE BASIS OF THE WARRANTY
EXPRESSED ABOVE.

                  (b) Sole  Remedy.  In the event any  Product  or part  thereof
fails to meet the  foregoing  warranty  during the specified  warranty  periods,
Imatron's sole responsibility and Distributor's and Importer's sole remedy shall
be for  Imatron,  at its sole  cost and  expense,  to  supply  Distributor  with
replacement  parts  for any  Product  or part  thereof  which  fails to meet the
warranty. Importer shall be responsible for the installation labor and return of
the  defective  components to Imatron.  All other costs of  fulfilling  warranty
obligations to customers,  including (without  limitation)  labor,  installation
costs  and  customer  training,  shall be borne by  Importer.  Imatron  shall be
responsible for return freight charges for the defective parts. Distributor will
inform Imatron when and where Products are installed.

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                  (c) Product  Liability.  Imatron shall  defend,  indemnify and
hold harmless Importer, Distributor and/or any of its customers for the Products
from and against any and all costs,  expenses,  losses,  damages or  liabilities
arising out of or in relation to any claim made or  threatened to be made by any
third  party based on any death,  bodily  injury or  property  damage  occurring
directly or indirectly out of the Products  ("Liabilities"),  including  without
limitation,  a claim based on the  "Product  Liability  Act" of Japan Law No. 85
promulgated on July 1, 1994, as it may be amended, but excluding any Liabilities
resulting from actions or negligence of Distributor or Importer.  Imatron shall,
prior to the shipment of the Products  hereunder,  procure and maintain a policy
of insurance, at its sole cost, from a reputable insurance company acceptable to
Distributor  covering the Liabilities.  A copy of such policy of insurance shall
be sent to Distributor immediately.)

                  (d) Regulation  Changes.  If applicable  regulation changes in
the future and any conforming change becomes necessary,  Imatron shall carry out
such change upon such terms as may be agreed between the parties.

         7.  Limitation of Liability IN NO EVENT,  WHETHER AS A RESULT OF BREACH
OF CONTRACT,  WARRANTY, TORT, (INCLUDING NEGLIGENCE,  WHETHER ACTIVE, PASSIVE OR
ANY OTHER KIND, AND STRICT LIABILITY) OR OTHERWISE,  SHALL IMATRON BE LIABLE FOR
ANY  SPECIAL,   CONSEQUENTIAL,   INCIDENTAL  OR  BUSINESS  INTERRUPTION  DAMAGES
INCLUDING,  BUT NOT LIMITED TO, LOSS OF PROFITS OR REVENUES,  LOSS OF USE OF THE
PRODUCTS OR ANY ASSOCIATED EQUIPMENT,  DAMAGE TO ASSOCIATED  EQUIPMENT,  COST OF
CAPITAL, DOWN TIME COSTS, OR CLAIMS OFDISTRIBUTOR'S CUSTOMERS.

         8. In Country  Training.  Imatron  will hire and train an "in  country"
Imatron  Sales Manager to assist with all sales in the Territory and also assist
to train Importer or Distributor Sales staff on an ongoing basis during the term
of this Agreement.

         9. Spare and Replacement Parts.

                  (a) Obligation to Maintain  Inventory.  Distributor  agrees to
maintain  a  sufficient  quantity  of  spare  parts  to  fulfill   Distributor's
obligations to its customers, such quantity of spare parts to be mutually agreed
upon by the parties and reflected in a separate  agreement  containing all terms
and  conditions  relating  thereto  including,  but not  limited  to,  quantity,
purchase  price,  payment of purchase price,  return of spare parts,  and use of
substitute spare parts.

                  (b) Substitute Spare Parts.  Distributor  shall have the right
to purchase and use spare parts manufactured by third parties ("Substitute Spare
Parts")   provided  that  the   Substitute   Spare  Parts  must  meet  Imatron's
specifications and are not used unless and until Imatron has tested and approved
each of such parts.

         10. Software Updates and Options.

                  (a)  Updates  and  Options.  System  software  updates  may be
provided as optional  products for sale,  or without  charge as standard  system
software  features,  at Imatron's option.  For software provided without charge,
Imatron shall supply electronic media and supporting  documentation equal to the
number of systems  installed by Importer or  Distributor.  For software  options
offered for sale by Imatron,  electronic media and supporting documentation will
be provided only for the institution  ordering the software option. All software
updates and options are offered subject to execution and delivery of appropriate
Imatron User License Agreements attached as APPENDIX D and made an integral part
hereof.

                  (b)  Limitations.  Imatron  shall not be  obligated to provide
software updates or options:

                           (i) For any  Product  which has not been  upgraded or
modified in accordance with safety  recommendations or hardware  requirements to
implement required safety recommendations;

                           (ii) If, beyond five (5) years from the date at which
the software product was last shipped as a standard production product; and

                           (iii) For any  Product  for which  obsolete  computer
hardware is no longer manufactured. 11. Training and Support.

                  (a) Training and Service  Support.  Imatron  agrees to provide
the following additional services:

                  (b)   Applications   Training.    Distributor   will   provide
applications training for its customers at completion of the installation and as
required thereafter.  Alternatively,  if requested by Distributor,  Imatron will
provide  applications  training  at the  customer's  site at the weekly rate for
applications  training  (which is currently  $5,000.00)  plus travel and lodging
expenses.

                           (i) Service Training.  In addition to its obligations
pursuant to  Paragraph  3 of this  Agreement,  Distributor  agrees to maintain a
staff of service  personnel  trained  in the  theory,  installation,  repair and

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maintenance of the Products. The number of service personnel will be adequate to
provide service coverage to all customers within the Territory.

                           (ii) Service  Support.  If requested by  Distributor,
Imatron  service  engineers will be available to provide  on-site support at the
customer's  site.  The  cost  of such  service  will be  billed  at the  current
published rate plus travel and lodging expenses.

                           (iii)  Sales  Support.   Imatron  agrees  to  provide
Distributor through Importer with adequate  quantities of advertising  materials
and other sales and promotion  aids.  Distributor  may use their own  collateral
materials on approval by Imatron. Distributor shall be responsible for the costs
of translation,  duplication and  distribution of all advertising  materials and
other sales and promotion aids.

         12.  Relationship  of  Parties.  The  relationship  of the  parties  is
respectively that of vendee and vendor. Nothing herein contained shall be deemed
to create an agency,  joint venture or partnership  relation between the parties
hereto.  It is  understood  and agreed that each party is not, by reason of this
Agreement or anything  herein  contained,  constituted or appointed the agent or
representative of any other party for any purpose whatsoever, nor shall anything
herein  contained  be deemed or construed as granting to such party any right or
authority to assume or to create any obligation or responsibility,  expressed or
implied, for, on behalf of or in the name of other parties, or to bind any other
party in any way or manner whatsoever.

         13. Assignment of Agreement.

                  (a) Prohibition on Assignment.  Neither this Agreement nor any
interest  herein is  assignable  by any  party,  whether  by way of  assignment,
operation of law or otherwise,  without the prior  written  consent of the other
party  hereto.  Any  attempted  assignment  or transfer by any party without the
prior written  consent of the other party hereto shall  forthwith  terminate and
cancel this  Agreement and all rights of any party  thereunder.  Notwithstanding
the  foregoing,  Distributor  may assign  this  Agreement  or any part hereof to
Importer.

                  (b) Transfer of Control. Transfer of a controlling interest in
Distributor to a party not in control at the time of execution of this Agreement
shall be deemed an assignment of this Agreement for purposes of the restrictions
set forth in this Paragraph.

         14. Patents and Trademarks.

                  (a) No Rights to Patents.  No rights are granted  hereunder to
Importer nor Distributor under any of Imatron's  patents,  patent  applications,
trademarks or other intellectual property.

                  (b) Rights to Use Trademarks.  Importer and Distributor  shall
have the  right to use,  in  connection  with  and only in  connection  with the
marketing of the Products under this Agreement, the name of the Products and any
trademarks,  trade names and  service  marks  derived  from any of said names or
related thereto in the form and manner as approved by Imatron (collectively, the
"Licensed  Names").  Imatron  represents  that  the  Licensed  Names  set out in
APPENDIX E have been duly  registered in the Territory and none of them has been
challenged by any third party.  Imatron reserves all rights for itself in and to
the Licensed Names, and all goodwill associated therewith whether or not arising
out of this  Agreement.  Importer  and  Distributor  will cause to appear on all
materials,  on or in connection with which any of the Licensed Names are used by
them,  such legends,  markings and notices or their  equivalent,  as Imatron may
request in order to give  appropriate  notice of any  trademark  or other rights
therein or pertaining thereto.

                  (c) Software  Licenses.  Imatron hereby grants to Importer and
Distributor a limited, exclusive within the Territory,  non-transferable license
to use any software delivered pursuant to this Agreement (the "Software"),  only
with and on the Products. Simultaneously with its execution and delivery of this
Agreement,  Importer and Distributor  will execute and deliver to Imatron a User
License  Agreement.  Importer and  Distributor  shall have the right to grant to
customers  to whom  Distributor  sells the Products a license for the use of the
Software on the Products.  Distributor shall cause any customer to whom it sells
Products to sign a User License  Agreement prior to any sale.  Distributor shall
promptly forward to Imatron a copy of each such signed User License Agreement.

                  (d) Infringement.  Imatron hereby represents and warrants with
Distributor that none of the Products sold or to be sold to Distributor  through
Importer nor any of Licensed  Marks nor Software shall infringe any right of any
third party,  and Imatron hereby  indemnifies  and keeps  harmless  Importer and
Distributor  or  customers  against  any loss or damage  suffered  by  Importer,
Distributor  or such  customers  or any claims made by any third  party  against
Importer,  Distributor or such customers  arising due to any infringement by the
Products or Licensed Names or Software of any right of any third party.

         15. Confidentiality.

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                  (a)  Confidentiality.  All  Proprietary  Data, as  hereinafter
defined,  disclosed  by any party to the other  party(ies)  in pursuance of this
Agreement,  during the continuance of this Agreement and for two (2) years after
its expiration or its termination, shall be kept confidential and the party(ies)
to which the same have been  disclosed  shall take all necessary  precautions to
prevent their  disclosure to third parties.  The parties to this Agreement shall
have the right to disclose such information to any of their affiliates, provided
that any such affiliate  receiving such  information  shall agree to be bound by
the provisions of this Paragraph 15 and provided  further,  the disclosing party
shall agree to be responsible for the actions of its affiliates. In the event of
any  breach  of this  covenant  by any  party,  such  breaching  party  shall be
responsible for all damages resulting therefrom.

                  (b)  Exceptions.  The provisions set forth in Paragraph  15(a)
shall not apply to:
                           (i) Any such information  which at any time after its
disclosure by one party to the other  party(ies)  falls into the public  domain,
except as a result of the fault of the party(ies) to which it was disclosed;  or

                           (ii)  Any such  information  which at the time of its
disclosure was known to the  party(ies) to which it was disclosed,  as evidenced
by written records; or
                           (iii) Any information that customers of each party or
regulatory  bodies can  reasonably  request be disclosed to them,  provided that
such party shall exert its best efforts to cause said  customers  or  regulatory
bodies to agree to hold such information confidential.

                  (c) "Proprietary Data". The term "Proprietary Data" is used in
this  Agreement  to mean  information,  as well as data in  written,  graphic or
machine-readable or  machine-executable  form or in oral form, which is received
by one  party  from  other  parties  and is  identified  as  being  proprietary,
confidential or a trade secret, and shall include,  the Products,  all technical
manuals  relating to the Products,  and all know-how and technology  required to
utilize  the  Products  and  such  manuals,  as well as  other  information  not
generally  known  in  the  trade,  including,  without  limitation,  inventions,
developments,  specifications,  pricing information, new product plans, methods,
supply  sources,   customers  lists,  costs,   marketing  plans,  technical  and
engineering  data,  and  methods and  reports  relating  to the  business of the
disclosing  party.  Each party agrees that it will use the Proprietary Data only
to  perform  its  required  obligations  hereunder  and agrees to take all steps
necessary  to keep  confidential,  and prevent the  disclosure  to and/or use by
third  parties of any and all  Proprietary  Data which it may  acquire.  Without
limiting the generality of the foregoing, each party agrees to take such actions
(including,  without  limitation,  instituting  legal  proceedings)  as  may  be
necessary to prevent  disclosure of  Proprietary  Data by its present and former
employees, agents and independent contractors. Each party shall provide to other
parties such  information and data, and permit the receiving party to review and
copy all such agreements,  as such receiving party shall  reasonably  request in
connection with any  investigation of compliance with the foregoing  obligations
of confidentiality.

         16.  United  States  Law and  Regulations.  Nothing  contained  in this
Agreement  shall be  construed to require  either  party to do, and  Distributor
shall  not  directly  or  indirectly  do,  any act or thing  that  will or could
constitute a violation of the Export Control laws or other laws and  regulations
of the United States of America. It shall be Imatron's  responsibility to obtain
all  necessary  export   licenses.   Distributor  is  obligated  to  supply  the
appropriate import certificates.

         17.  Exclusive  Dealing.  During  the  term of this  Agreement  neither
Importer,  Distributor nor its officers, agents, servants or employees shall, at
any time,  directly  or  indirectly,  perform  any  service or be employed by or
become associated in any capacity with any person, firm or corporation competing
with or setting up to compete with Imatron in the  Territory in the  manufacture
or sale of goods similar to the  Products.  Nor,  during the term hereof,  shall
Imatron, directly or indirectly,  compete similarly with Distributor in the sale
of the Products,  and  accordingly,  Imatron shall not,  directly or indirectly,
license any person to make,  use, or sell the Products  other than  Importer and
Distributor  in the  Territory.  The  obligations of this Paragraph 17 shall not
apply to the officers,  agents, servants and employees of Importer,  Distributor
or Imatron after said persons are no longer employed by Importer, Distributor or
Imatron.

         18. Termination.

                  (a) Notice of Termination.  Unless  otherwise stated herein if
any  party to this  Agreement  should  breach  any  obligation  herein or in any
individual contract to be entered hereunder,  the non-defaulting  party may give
written  notice to the  defaulting  party  specifying  the  respect in which the
defaulting has breached this Agreement or any individual contract.  In the event
that such breach is not remedied within thirty (30) days after such notice,  the
non-defaulting  party may, by written notice to the defaulting party,  terminate
this Agreement or any individual contract effective immediately.  The failure of
the  non-defaulting  party to so  terminate  this  Agreement  or

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FY 2000                           IMATRON INC.                         FORM 10-K
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any  individual  contract  due to a breach on the part of the  defaulting  party
shall not  constitute  a waiver of its  right to  terminate  on the basis of any
subsequent breach.

                  (b) Duties of Parties Upon Termination.

                           (i)  Upon   termination  of  this  Agreement  or  any
individual  contract  each  party  shall  perform  all  obligations,   including
warranty, service and spare part supply, incurred prior to the effective date of
such  termination  and all  indebtedness of each party to the other shall become
immediately payable.

                           (ii)  The  parties  acknowledge  and  agree  that the
Homologation  rights for the Systems which rights are being  transferred from IJ
to Imatron and then from Imatron to the Distributor belong solely to Imatron and
are  assigned  by  Imatron  to the  Distributor  solely  for the  purpose of its
distribution  of the Products  pursuant to this Agreement.  Upon  termination of
this  Agreement  for any reason  such  rights  shall  revert to Imatron  and the
Distributor shall take all actions which may be deemed  reasonably  necessary in
order to transfer such rights back to Imatron.

                           (iii) No party  hereto  shall be  liable to any other
for  damages  of any  kind  resulting  from,  or  caused  by,  said  termination
including,  but not limited to, damages related to losses through commitments on
obligations  or leases,  loss of  investment,  loss of  present  or  prospective
profits,  inability  to  meet  obligations,  or  any  other  causes  or  reasons
whatsoever.

                           (iv) Imatron  shall in any case continue for a period
of seven (7) years following  termination of this Agreement to make available to
Distributor's  customers all necessary spare parts and after-service in relation
to Products purchased by Distributor and resold to its customers.

         19. Notices. All notices,  certificates,  requests,  demands, and other
communications  hereunder  shall be in writing and may be  personally  served or
sent by or facsimile or by certified or  registered  airmail.  All such notices,
certificates,  requests, demands, and other communications shall be delivered to
the party to receive the same at the address  indicated  below (or at such other
address as a party may specify in a written notice):

         If to Distributor:

                  Marubeni  Corporation
                  4-2, Ohtemachi 1-chome
                  Chiyoda-ku, Tokyo, Japan
                  Attention: Mr. Makoto Kimura, General Manager, Medical
                  Business Sec.
                  Fax: (03) 3281-3728

         If to Importer:

                  Meditec Corporation
                  3-14, Kudan-Minami, 2-chome, Chiyoda-ku, Tokyo, Japan
                  Attention:   Mr. Masahiko Tomita
                  Fax   (03) 3237-4822

         If to Imatron:

                  Imatron Inc.
                  389 Oyster Point Blvd.
                  South San Francisco, California 94080
                  Attention:  Mr. S. Lewis Meyer, Chief Executive Officer
                  Fax: (415) 871-0418

         If personally delivered,  a notice shall be effective upon delivery. If
delivered in accordance with this  Paragraph,  a notice shall be effective as of
the date of receipt.  If given by  facsimile,  a notice shall be effective  when
sent, answer back received or, in the case of facsimile,  confirmation received.
A party may change its address  indicated above by giving written notice of such
change to the other in the manner specified in this Paragraph.

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         20. Arbitration. Any controversy or claim arising out of or relating to
this  Agreement,  or the breach  thereof,  shall be settled  by  arbitration  in
accordance  with the commercial  Arbitration  Rules of the American  Arbitration
Association ("AAA") and judgments upon the award rendered by the arbitrators may
be entered in any court having jurisdiction  thereof. The arbitration shall take
place in San Francisco, California, United States and be governed by the laws of
the  State of  California.  The  arbitration  shall be  conducted  by three  (3)
arbitrators.  Each of Imatron and Distributor shall select one arbitrator within
thirty (30) days after the filing of a request for arbitration. Should either of
them fail to select an arbitrator within such thirty-day period, the other party
shall also select that arbitrator.  The two selected  arbitrators shall select a
third arbitrator.  The official language of the arbitration shall be English and
all  proceedings  and rulings  shall be in  English.  The  arbitration  shall be
conducted as expeditiously as possible, and all parties shall exert best efforts
to finalize the  arbitration  hearings  within one year. The  arbitrators  shall
render any decision  within thirty (30) days after the close of the  arbitration
hearings.  The award rendered by the arbitrators shall be final and binding upon
the  parties.  Before,  during or after  arbitration,  each party shall have the
right to seek from any  appropriate  court all  provisional  remedies  permitted
under California law. If any party hereto must institute  arbitration to collect
any payments due hereunder, the party liable therefore shall reimburse the other
party for reasonable attorneys' fees and other costs incurred in connection with
such arbitration.

         21. Miscellaneous.

                  (a) Governing Law. This Agreement shall be deemed to have been
entered into and shall be construed and enforced in accordance  with the laws of
the State of California without regard to that body of law known as the conflict
of laws.

                  (b) Governing  Language.  The official text of this  Agreement
shall be in the English language, and any interpretation or construction of this
Agreement shall be based solely on the  English-language  text.

                  (c)  Waivers.  No  failure  or delay by any  party  hereto  in
exercising  any right,  power or privilege  hereunder  shall operate as a waiver
thereof,  nor shall any single or partial  waiver  thereof  include any other or
further  exercise  thereof  or  the  exercise  of any  other  right,  power,  or
privilege.

                  (d)  Amendments.   Unless  otherwise  provided  herein,   this
Agreement may not be changed, waived, discharged, or terminated orally, but only
by a written document signed by duly authorized  officers of the parties hereto.

                  (e) Entire  Agreement.  This Agreement is the entire agreement
between the parties and supersedes  and shall be substituted  for each and every
prior agreement with respect to distribution of Products,  whether written, oral
or otherwise in effect between Distributor and Imatron.  Imatron and Distributor
each represents and warrants that there are no other outstanding  obligations or
agreements, either written, oral or implied inconsistent with this Agreement.

                  (f) Force Majeure. In the event that any party hereto shall be
rendered  wholly  or  partly  unable to carry  out its  obligations  under  this
Agreement by reason of causes beyond its control,  including but not limited to,
fire, flood, explosion,  strikes,  lockouts, or other labor trouble or shortage,
inability  to obtain or  shortage  of  material,  equipment  or  transportation,
insurrections,  riots or other civil commotion, war, enemy action, acts, demands
or requirements of the governments (including the Ministry of Health and Welfare
of Japan)  in any state or by other  causes  which it could  not  reasonably  be
expected to avoid,  then the  performance of the  obligations of either party or
both as they are affected by such causes shall be excused during the continuance
of any  inability  so caused  but such  inability  shall as far as  possible  be
remedied with all reasonable dispatch.

                  (g) Counterparts. This Agreement may be executed in any number
of counterparts,  each of which shall be an original,  but all of which together
shall constitute one instrument.

                  (h) Other Cooperation.  In case Japanese concerned regulations
may impose additional  requirements or limitations to Distributor or Importer in
providing importation,  sales, or after services of the System, Imatron shall be
willing to cooperate  with  Distributor  and Importer in solving their  problems
according to their requirements.

         22. Assignment of Homologation rights.

         Imatron agrees that Distributor may assign the Homologation  rights for
the Systems to Importer at any time upon notice to Imatron.

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

IMATRON INC.

------------------------------
Name: S. Lewis Meyer
Title: President

MEDITEC CORPORATION

------------------------------
Name: Hiroyuki Tatewaki
Title: President & C.E.O.

MARUBENI CORPORATION

------------------------------
Name: Yoichi Kawahara
Title: General Manager, Electronics & Medical Business Dept.

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APPENDICES

         Appendix A   -       Specifications and Price List

         Appendix B   -       Assignment and Assumption Agreement

         Appendix C   -       Confirmation of Purchase Contract

         Appendix D   -       Imatron User License Agreement

         Appendix E   -       Licensed Names

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                                   APPENDIX A

Description of Imatron Model EBT Electron Beam Tomography Scanner

Imatron EBT scanner including:

         o     Gantry with dual solid state detectors and tungsten target rings
         o     High Resolution Detector System (HRDS)
         o     Electron Source and Beam Deflection Control
         o     Patient Couch with tilt, angulation, and swivel motion
         o     Distributed Processing System CPU
         o     Operator's Console
         o     GE Headholder
         o     System Software License
         o     Modem Telecommunications Link
         o     Patient Positioning Accessories
         o     Power Conditioner Distribution Unit
         o     Water Chiller
         o     Archive Storage System
         o     Operator's Manuals
         o     Warranty on parts for 1 year
         o     AccuImage  Workstation - The AccuImage  workstation displays 2-D,
               3-D,  and  4D  images  through  advanced  image  post  processing
               capability  when used in combination  with Imatron's EBT or other
               compatible imaging  modalities.  The AccuImage  workstation is NT
               based,  and  features an  intuitive  interface,  help menus,  and
               universal  icons  for  ease  of  use  and  maximum  productivity.
               Functions  include  surface  rendering,  interactive  MIP, volume
               rendering, curved reformatting,  fly-through and calcium scoring.
               Calcium  scores  are  presented  in  a  user-customizable  report
               template  that  includes a sampling  of patient  images,  calcium
               scores by artery and in total,  and population  data.  Images and
               reports are printed using the included color printer.  Images are
               transferred to the workstation  via Megalink or Ethernet.  A wide
               variety of image review and management functions are included, as
               well as DICOM 3 compliant image archiving and transfer.

                              Purchase Price For Basic System:   $1,700,000 USD
                              (FOB: Imatron Shipping Dock So. San Francisco, CA)

Shipping and Installation

     The system will be shipped within 60 days after receipt of Letter of Credit
by Imatron.

Terms

     Terms of Payment are as follows:

         o     Letter of Credit issued 60 days prior to shipment.
               o     The shipping terms are as noted:  "F.O.B.  Imatron Shipping
                     Dock, South San Francisco,  CA" and therefore upon shipment
                     from Imatron the risk of loss passes to Importer.

Prices do not include:

         o     Site preparation/construction to Imatron's specifications
         o     Any other display workstation as determined by the buyer
         o     Shipping, insurance, and rigging from the factory to the site
         o     Foreign or local taxes

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         o     Any  costs of  storage,  should  the site not be ready to  accept
               installation of the scanner,  requiring shipment to a third-party
               warehouse.
         o     Radiation  permits,  licenses,  and  certificates  as required by
               local or national  government  authorities
         o     Other equipment such as laser cameras,  injectors,  teleradiology
               and PACS systems

Description of Imatron Model EBT Electron Beam Tomography Options

IMATRON EBT SYSTEM OPTIONS

New Systems

2nd AccuImage  Workstation                               $70,000  USD

         Requires  connection to another AccuImage  workstation that is included
with the Imatron scanner.

CODONICS MODEL NP-1600 M COLOR MEDICAL IMAGER   $16,310 USD

Includes utilizing Dye-Diffusion Print technology, Post Script level # software,
CDNX-1SG  key,  Paper &  color  Ribbon,  100 A size  sheets,  and  Paper & black
Laminate Ribbon 300 A size sheets

Installed, Used and Remanufactured EBT Scanners

AccuImage Workstation                                    $90,000 USD

     The AccuImage workstation displays 2-D, 3-D, and 4D images through advanced
     image post processing  capability  when used in combination  with Imatron's
     EBT or other compatible imaging modalities. The AccuImage workstation is NT
     based, and features an intuitive interface, help menus, and universal icons
     for  ease  of use  and  maximum  productivity.  Functions  include  surface
     rendering,   interactive  MIP,  volume  rendering,   curved   reformatting,
     fly-through  and  calcium  scoring.  Calcium  scores  are  presented  in  a
     user-customizable  report  template  that  includes a  sampling  of patient
     images,  calcium scores by artery and in total, and population data. Images
     and  reports are  printed  using the  included  color  printer.  Images are
     transferred to the workstation via Megalink or Ethernet.  A wide variety of
     image review and  management  functions  are  included,  as well as DICOM 3
     compliant image archiving and transfer.

CODONICS MODEL NP-1600 M COLOR MEDICAL IMAGER   $16,310 USD

                  Includes utilizing Dye-Diffusion Print technology, Post Script
                  level # software,  CDNX-1SG key,  Paper & color Ribbon,  100 A
                  size  sheets,  and Paper & black  Laminate  Ribbon  300 A size
                  sheets

High Resolution Detector System Upgrade (HRDS)           $ 250,000 USD

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                                   APPENDIX B
                       ASSIGNMENT AND ASSUMPTION AGREEMENT

         THIS AGREEMENT ("Agreement") is entered into as of November 10, 2000 by
and between IMATRON INC., a corporation organized under the laws of the State of
New Jersey,  United  States of America with its  principal  office at 389 Oyster
Point  Blvd.,   South  San  Francisco,   California  94080,   United  States  of
America("Imatron")  and MARUBENI CORPORATION,  a corporation organized under the
laws of Japan with its principal office at 4-2, Ohtemachi  1-chome,  Chiyoda-ku,
Tokyo, Japan("Distributor").

WITNESSETH:

         WHEREAS,  Imatron has  heretofore  entered into a Transition  Agreement
dated October 5, 2000 (the "Transition Agreement"),  a copy of which is attached
hereto,  with Imatron  Japan INC.  ("IJ")  relating to the  transition  to a new
distributor and service provider of Imatron's products in Japan;

         WHEREAS,   Imatron  has  appointed  Importer  and  Distributor  as  the
exclusive  service  provider  and  distributor  respectively  of the Imatron EBT
Scanner system and spare parts,  options and  accessories in Japan pursuant to a
Distributorship   Agreement  of  even  date   herewith   (the   "Distributorship
Agreement"); and

         WHEREAS, Imatron desires to assign to Distributor certain of its rights
pursuant to the  Transition  Agreement in  consideration  of the  assumption  by
Distributor  of certain of  Imatron's  obligations  pursuant  to the  Transition
Agreement and  Distributor  desires to accept such  assignment  and perform such
obligations.

         NOW,  THEREFORE,  in consideration of the mutual covenants  hereinafter
set forth, the parties hereto hereby agree as follows:

4     Assignment. Effective as of the date set forth above Imatron hereby sells,
      assigns and transfers  all of its right,  title and interest in and to the
      following:

4.1     all Imatron EBT  Scanner  system  replacement  and  component  parts and
        service tools set forth on Exhibit A-1 to the Transition Agreement;

4.2     subject  to  Paragraph  2, all  service  contracts  for the  repair  and
        maintenance of Imatron EBT Scanner systems in Japan set forth on Exhibit
        A-2 to the Transition Agreement (the "Service Contracts");

4.3     the  rights,  licensing  and  registration,  if any, of IJ to enter into
        service  contracts for the repair and maintenance of Imatron EBT Scanner
        systems in Japan;

4.4     all  documents,  including  quotations  and other  marketing  materials,
        service  files  relating to past,  present,  and  potential  Imatron EBT
        Scanner system purchase and service customers; and

4.5     the  regulatory  approvals  for the  importation  or sale of Imatron EBT
        Scanner  systems,  and the  replacement and component parts thereof into
        Japan, commonly referred to as the "homologation".

5     Service Agreements. With respect to the Service Contracts:

5.1     Imatron shall use its best efforts to obtain  consents from the customer
        of  each  Service  Contract  agreeing  to the  transfer  of the  Service
        Contract to Distributor and further agreeing to any changes to the terms
        and conditions of the Service Contract as may be required by Distributor
        and agreed to by the customer; and

5.2     Imatron  represents and warrants that each Service  Contract  represents
        entire  agreement  between  the  parties  thereto and there are no other
        outstanding  obligations or agreements,  either written oral or implied,
        formal or  informal  in  respect of the  subject  matter  thereof.  This
        representation  and warranty expires 90days from the date of the signing
        of this Agreement.

6     Rights Not Assigned.  Notwithstanding the foregoing,  the following rights
      are not assigned:

6.1     The two existing Imatron EBT Scanner Systems owned by IJ (Serial Nos. 26
        and 160).

7     Assumption of  Obligations.  In  consideration  for the above  assignment,
      Distributor agrees to assume

7.1     All  obligations  to provide  service,  training,  software and hardware
        updating,  service  support  and  warranty  obligations  as  provided in
        Paragraph 1 and Paragraph 3 a of the Transition Agreement.

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         Except as set forth in this paragraph,  Distributor is not assuming and
shall not be liable for any other of the  obligations  or liabilities of Imatron
of any kind or nature whatsoever under the Transition Agreement.

         Imatron  shall  ensure  that  the  Transition  Agreement  will  not  be
terminated  or  cancelled  by Imatron  Japan INC.  for  Imatron's  breach of its
obligations  under the Transition  Agreement and hold harmless  Distributor from
any  losses or  damages  which  Distributor  may incur as a result of  Imatron's
breach of the Transition Agreement.

8     Indemnification.  Each of the parties  hereby  agrees to hold harmless and
      indemnify the other,  and its successors  and assigns,  against any claim,
      action, loss,  liability,  damage, or cost and expense,  including without
      limitation reasonable attorneys' and experts' fees and expenses (hereafter
      collectively "Losses" and separately as "Loss"), resulting from or arising
      out  of any  breach  or  inaccuracy  of any  representation  or  warranty,
      nonperformance of any agreement,  covenant,  promise, or obligation on the
      part of the indemnifying party contained in this Agreement.

9     Notices.   All  notices,   certificates,   requests,   demands,  ad  other
      communications  hereunder  shall be in writing and shall be  delivered  as
      provided in the Distributorship Agreement.

10    Miscellaneous.

10.1      Governing Law;  Arbitration.  This  Agreement  shall be deemed to have
          been entered into and shall be  construed  and enforced in  accordance
          with the laws of the State of California  without  regard to that body
          of law known as the conflict of laws. Any controversy or claim arising
          out of or relating to this Agreement,  or the breach thereof, shall be
          settled by  arbitration  as provided in Paragraph 13 of the Transition
          Agreement.  This  Agreement  shall be deemed to have been entered into
          and shall be construed and enforced in accordance with the laws of the
          State of  California  without  regard to that body of law known as the
          conflict of laws.

10.2      Governing  Language.  The official text of this Agreement  shall be in
          the English language,  and any  interpretation or construction of this
          Agreement shall be based solely on the English-language text.

10.3      Waivers.  No failure or delay by any party  hereto in  exercising  any
          right, power or privilege hereunder shall operate as a waiver thereof,
          nor shall any single or partial  waiver  thereof  include any other or
          further exercise thereof or the exercise of any other right, power, or
          privilege.

10.4      Amendments.  Unless otherwise provided herein,  this Agreement may not
          be changed,  waived,  discharged,  or terminated orally, but only by a
          written  document  signed by duly  authorized  officers of the parties
          hereto.

10.5      Counterparts.  This  Agreement  may  be  executed  in  any  number  of
          counterparts,  each of which  shall be an  original,  but all of which
          together shall constitute one instrument.

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

IMATRON INC.                               MARUBENI CORPORATION

By: S. Lewis Meyer                         By: Y.Kawahara

Its: Chief Executive Officer               Its:  General Manager ,
                                                  Electronics & Medical Business
                                           Department

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                                   APPENDIX D

USER LICENSE AGREEMENT

         This  Agreement  is made and entered  into on between  Imatron  Inc., a
corporation,  hereinafter called "Imatron", and Marubeni Corporation hereinafter
called the "Licensee".

         In  consideration  of the mutual  covenants  and  conditions  contained
herein, the parties agree as follows:

         1. License. Imatron hereby grants to the Licensee a nontransferable and
nonexclusive  single site license to use the computer software package described
at the end of this form,  hereinafter called the "Software",  upon the terms and
conditions contained herein.

         2. License Fee. The Licensee  agrees to pay Imatron a one-time  license
fee (included in the basic system price) for this license.

         3. Conditions. This license is granted upon the following conditions:

               (a) The Software and any copies  thereof shall at all time remain
the  sole   property  of   Imatron.   Imatron   reserves   the  right  to  grant
nontransferable  and nonexclusive rights to use the Software to other persons or
entities upon such terms and conditions as Imatron shall prescribe. The Licensee
covenants and agrees not to permit access to, transfer,  or assign the Software,
or any part or copy thereof,  in any form, to any other person or entity without
the prior written consent of Imatron.

               (b) The Software shall be used only at the following  location of
the Licensee:

                   In Japan.

               (c)  The  Software  shall  be used  by the  Licensee  only on the
following equipment:

               (d) The Licensee acknowledges that the Software is proprietary to
Imatron and agrees not to disclose it in any form,  in whole or in part,  to any
other person or entity.  The  Licensee  also agrees not to copy,  duplicate,  or
otherwise reproduce any Software, or any version,  routine,  subroutine, or part
thereof,  or create or attempt to create, or permit others to attempt to create,
by reverse  engineering or otherwise,  the source programs,  or any part thereof
from the object  program or from other  information  or data made  available  by
Imatron, or otherwise acquired by Licensee,  without prior written authorization
from  Imatron.  If such  authorization  is obtained,  the  Licensee  shall apply
Imatron's  copyright  notice  and  other  legend(s),  if any,  contained  on the
Software to such reproductions or copies, and all restrictions herein on use and
disclosure  of the  Software  shall  apply to any such  reproductions  or copies
thereof.

               (e) The Licensee  shall not cause or permit the Software,  or any
part thereof to be used by any person other than the  officers,  employees,  and
agents of the  Licensee'  engaged in the business  activities of the Licensee at
the location  referred to herein.  The Licensee  agrees that it shall cause each
authorized  person who uses the Software to agree to refrain from  disclosing or
delivering  the Software,  or any part thereof,  to any  unauthorized  person or
entity.

               (f) In the  event  that  the  Software  is for use by the  United
States Government,  or any branch or agency thereof (hereinafter  referred to as
the"  Government"),  the provisions of this subparagraph (f) shall apply to such
transaction in lieu of  subparagraphs  (a) through (e) above. The Software shall
be treated by

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================================================================================

the  Government  as  "Limited  Rights  Data"  pursuant  to DAR 7 104.9(A) or the
equivalent clause in other agency procurement regulations.

         4. Reservation of Rights.  The rights granted to the Licensee hereunder
shall  not  affect  the  exclusive  ownership  by  Imatron  of  any  trademarks,
copyrights,  patents, or common law property rights of Imatron pertaining to the
Software.  The  License  granted  hereby  shall at all times be  subject  to all
trademarks,  copyrights,  letters,  patents,  and common law property  rights of
Imatron relating to the Software.

         5.  Modifications  and  Improvements.  If  the  Licensee  modifies  the
Software in any manner or utilizes any other software with the Software, or uses
or  permits  the use of the  Software  on any  Hardware/System  other  than  the
Hardware/System  with which the  Software  was provided  without  prior  written
authorization from Imatron, all warranties  associated with the Software and the
Hardware/System  shall  become null and void.  If the  Licensee,  or any of it's
officers,  agents,  or  employees  devise or  acquire  any  improvements  in the
Software and the Licensee  voluntarily  discloses such  improvements  to Imatron
Imatron shall have a nonexclusive,  royalty-free license to use such improvement
and the right to grant sublicenses thereto.

         6.  Term.  This  license  shall  continue  for as long as the  Licensee
continues  to utilize  the above  specified  Hardware/System  (s),  except  that
Imatron may terminate  this license upon thirty (30) days written  notice to the
Licensee in the event of any default by the Licensee of any term,  covenant,  or
condition  contained  herein  or  in  the  contract  of  sale  relating  to  the
Hardware/System.  Such termination  shall not relieve the Licensee of any of any
of its obligations incurred prior to such termination,  and shall not impair any
of Imatron's  rights which have accrued prior to such date. The Licensee  agrees
to return the  Software  and any copies  thereof to Imatron,  at the  Licensee's
expense,  immediately upon the termination of this license. The covenants of the
Licensee  contained in Paragraph 3 hereof shall survive the  termination of this
License.  The warranty  contained in Paragraph 8 hereof shall terminate upon the
expiration or sooner termination of this License.

         7. Patent and Copyright Indemnification. Imatron will defend any action
brought  against  Licensee  to the  extent  that it is based on a claim that any
Software  used  within the scope of the  License  hereunder  infringes  a United
States patent or  copyright,  provided  Licensee  notifies  Imatron  promptly in
writing of the action (and all prior claims relating to such action) and Imatron
has sole  control of the  defense and all  negotiations  for its  settlement  or
compromise.  In the event any Software becomes,  or in the opinion of Imatron is
likely  to  become,  the  subject  of a claim of  infringement  of a  patent  or
copyright,  Imatron may at its option either, (a) secure the Licensee's right to
continue using the Software, (b) replace or modify it, to make it noninfringing,
so long as such  replacement  or  modification  dose not materially or adversely
affect  its  performance,  or,  if  neither  of the  foregoing  alternatives  is
reasonably  available to Imatron,  accept  return of such Software and refund to
Licensee all fees paid by Licensee for the Software so returned.  Imatron  shall
have no liability for any claim of copyright or patent infringement based on (1)
use of other than a current  unaltered  release of the Software  available  from
Imatron if such infringement  would have been avoided by the use of such current
unaltered  release or (2) use or  combination  of the Software  with programs or
data not  supplied by Imatron.  THE  FOREGOING  STATES THE ENTIRE  LIABILITY  OF
IMATRON  WITH  RESPECT  TO  INFRINGEMENT  OF ANY  COPYRIGHTS  OR  PATENTS BY THE
SOFTWARE OR ANY PARTS THEREOF.

         8.  Warranty.  THE SOFTWARE WHEN DELIVERED IS WARRANTED TO BE FREE FROM
DEFECTS IN MATERIALS AND  WORKMANSHIP.  EXCEPT FOR THE EXPRESS  WARRANTY HEREIN,
IMATRON  GRANTS  NO  WARRANTIES,   EITHER  EXPRESS  OR  IMPLIED   WARRANTIES  OF
MERCHANTABILITY  AND FITNESS FOR A PARTICULAR  PURPOSE,  AND THE STATED  EXPRESS
WARRANTY IS IN LIEU OF ALL  LIABILITIES  OR  OBLIGATIONS OF IMATRON FOR DAMAGES,
INCLUDING BUT NOT LIMITED TO SPECIAL OR CONSEQUENTIAL DAMAGES,  OCCURRING OUT OF
OR IN CONNECTION WITH THE USE OR PERFORMANCE OF THE SOFTWARE.

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================================================================================

         9. Waiver of Liability. Subject to the provisions of paragraphs 7 and 8
above, the Licensee  expressly  waives all claims against  Imatron.  The parties
agree that neither shall be  responsible  for the acts or omissions of the other
in regard to the development or use of the licensed Software.

         10. Taxes.  The Licensee agrees to pay any state or local tax, use tax,
excise tax, or similar  tax,  however  designated,  levied or  computed,  on the
amount paid by the licensee to Imatron for this license to use the Software.

         11. General.

                  (a) This Agreement  constitutes the entire  Agreement  between
Imatron and the Licensee with respect to the subject  matter of this  Agreement.

                  (b) No modification of this Agreement shall be valid unless in
writing and signed by duly authorized representatives of both of the parties.

                  (c) The Licensee  shall not assign this Agreement or any right
hereunder to any other  person or entity  without the prior  written  consent of
Imatron.  Such  consent  will  not  be  unreasonably  withheld.  Subject  to the
foregoing  prohibition against assignment,  this Agreement shall be binding upon
and shall  inure to the  benefit of the  successors  and  assigns of the parties
hereto.

                  (d) This Agreement  shall be considered as having been entered
into in the  State of  California  and shall be  subject  to  interpretation  in
accordance with the laws thereof

         In witness whereof,  the parties have executed this Agreement as of the
date set forth above.

IMATRON INC.                          MARUBENI CORPORATION

By:     S. Lewis Meyer                By:   Y. Kawahara
        --------------                      -----------

Title:  Chief Executive Officer       Title:  General Manager ,
        -----------------------       Electronics &  Medical Business Department
                                      ------------------------------------------

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================================================================================

                                   Appendix E

                                  [Trade Mark]

                                     IMATRON

                            (Registration No.3176291)

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FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

                                  Exhibit 10.34

                                  IMATRON INC.

                              CONSULTING AGREEMENT

         This Consulting Agreement  ("Agreement") is made and entered into as of
the 1st day of January,  2001 by and between Imatron Inc. (the  "Company"),  and
Terry Ross,  ("Consultant").  The  Company  desires to retain  Consultant  as an
independent  contractor  to perform  consulting  services  for the  Company  and
Consultant  is willing to perform such  services,  on terms set forth more fully
below. In consideration  of the mutual promises  contained  herein,  the parties
agree as follows:

         1.       SERVICES AND COMPENSATION

                  (a) Consultant  agrees to perform for the Company the services
("Services") described in Exhibit A, attached hereto.

                  (b) The Company agrees to pay Consultant the  compensation set
forth in Exhibit A for the performance of the Services.

         2.       CONFIDENTIALITY

                  (a) Definition.  "Confidential  Information" means any Company
proprietary information,  technical data, trade secrets or know-how,  including,
but not limited to,  research,  product plans,  products,  services,  customers,
customer  lists,  markets,  software,   developments,   inventions,   processes,
formulas,  technology,  designs, drawings,  engineering,  hardware configuration
information,  marketing, finances or other business information disclosed by the
Company  either  directly or  indirectly  in  writing,  orally or by drawings or
inspection of parts or equipment.

                  (b) Non-Use and Non-Disclosure. Consultant will not, during or
subsequent  to the  term  of this  Agreement,  use  the  Company's  Confidential
Information for any purpose  whatsoever,  other than performing Services for the
Company, or disclose the Company's Confidential  Information to any third party.
It is  understood  that said  Confidential  Information  shall  remain  the sole
property  of the  Company.  Consultant  further  agrees  to take all  reasonable
precautions  to  prevent  any  unauthorized   disclosure  of  such  Confidential
Information  including,  but not limited to,  having each  employee,  agent,  or
contractor of Consultant,  if any, with access to any Confidential  Information,
execute a nondisclosure  agreement containing  provisions in the Company's favor
identical  to Sections 2, 3 and 4 of this  Agreement.  Confidential  Information
does not include  information  which (i) is known to  Consultant  at the time of
disclosure  to  Consultant  by the Company as  evidenced  by written  records of
Consultant,  (ii) has become publicly known and made generally available through
no  wrongful  act of  Consultant,  or (iii)  has  been  rightfully  received  by
Consultant from a third party who is authorized to make such disclosure.

                  (c) Former  Employer's  Confidential  Information.  Consultant
agrees that Consultant  will not, during the term of this Agreement,  improperly
use or disclose any  proprietary  information  or trade secrets of any former or
current  employer  or other  person  or  entity  with  which  Consultant  has an
agreement or duty to keep in confidence  information acquired by Consultant,  if
any,  and that  Consultant  will not bring onto the  premises of the Company any
unpublished  document or  proprietary  information  belonging to such  employer,
person or entity  unless  consented  to in writing by such  employer,  person or
entity.  Consultant  will  indemnify  the Company and hold it harmless  from and
against all claims,  liabilities,  damages and  expenses,  including  reasonable
attorneys  fees and  costs of suit,  arising  out of or in  connection  with any
violation or claimed  violation of a third party's rights  resulting in whole or
in part from the  Company's  use of the work  product of  Consultant  under this
Agreement.

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FY 2000                           IMATRON INC.                         FORM 10-K
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                  (d)   Third   Party   Confidential   Information.   Consultant
recognizes  that the Company has  received  and in the future will  receive from
third parties their confidential or proprietary information subject to a duty on
the Company's part to maintain the  confidentiality  of such  information and to
use it only for certain limited purposes. Consultant agrees that Consultant owes
the  Company  and such  third  parties,  during the term of this  Agreement  and
thereafter,  a duty to hold all such confidential or proprietary  information in
the  strictest  confidence  and  not to  disclose  it to  any  person,  firm  or
corporation  or to use it except as  necessary  in carrying out the Services for
the Company consistent with the Company's agreement with such third party.

                  (e)  Return  of  Materials.   Upon  the  termination  of  this
Agreement,  or upon Company's  earlier  request,  Consultant will deliver to the
Company  all  of  the  Company's  property  or  Confidential   Information  that
Consultant may have in Consultant's possession or control.

         3.       OWNERSHIP

                  (a) Assignment.  Consultant  agrees that all material,  notes,
records, drawings, designs, inventions, improvements,  developments, discoveries
and trade secrets (collectively,  "Work Product") conceived,  made or discovered
by Consultant, solely or in collaboration with others, during the period of this
Agreement  which  relate  in any  manner to the  business  of the  Company  that
Consultant  may be directed to undertake,  investigate  or  experiment  with, or
which  Consultant  may  become   associated  with  in  work,   investigation  or
experimentation  in the line of business of Company in  performing  the Services
hereunder,  are the sole property of the Company.  Consultant  further agrees to
assign (or cause to be assigned) and does hereby assign fully to the Company all
Work Product and any copyrights, patents, mask work rights or other intellectual
property rights relating thereto.

                  (b) Further  Assurances.  Consultant agrees to assist Company,
or its  designee,  at the Company's  expense,  in every proper way to secure the
Company's  rights in the Work  Product and any  copyrights,  patents,  mask work
rights or other  intellectual  property rights  relating  thereto in any and all
countries,  including the disclosure to the Company of all pertinent information
and  data  with   respect   thereto,   the   execution   of  all   applications,
specifications,  oaths,  assignments and all other instruments which the Company
shall deem  necessary  in order to apply for and obtain such rights and in order
to assign and convey to the Company,  its  successors,  assigns and nominees the
sole and exclusive  right,  title and interest in and to such Work Product,  and
any copyrights,  patents, mask work rights or other intellectual property rights
relating  thereto.  Consultant  further agrees that  Consultant's  obligation to
execute or cause to be executed,  when it is in Consultant's power to do so, any
such  instrument  or  papers  shall  continue  after  the  termination  of  this
Agreement.

                  (c) Pre-Existing  Materials.  Consultant agrees that if in the
course of performing the Services, Consultant incorporates into any Work Product
developed hereunder any invention, improvement,  development, concept, discovery
or other proprietary  information owned by Consultant or in which Consultant has
an  interest,  the  Company is hereby  granted  and shall  have a  nonexclusive,
royalty-free,  perpetual,  irrevocable,  worldwide  license  to use,  reproduce,
distribute, perform, display, prepare derivative works of, make, have made, sell
and  export  such  item as part of or in  connection  with  such  Work  Product.
Consultant  shall  not  incorporate  any  invention,  improvement,  development,
concept,  discovery or other  proprietary  information  owned by any third party
into any Work Product without Company's prior written permission.

                  (d) Attorney in Fact. Consultant agrees that if the Company is
unable because of Consultant's unavailability,  dissolution,  mental or physical
incapacity,  or for any other reason, to secure Consultant's  signature to apply
for or to pursue any  application  for any United  States or foreign  patents or
mask work or copyright  registrations  covering the Work Product assigned to the
Company above,  then Consultant hereby  irrevocably  designates and appoints the
Company and its duly authorized  officers and agents as  Consultant's  agent and
attorney in fact, to act for and in Consultant's behalf and stead to execute and
file  any such  applications  and to do all  other  lawfully  permitted  acts to
further  the  prosecution  and  issuance  of  patents,  copyright  and mask work
registrations  thereon  with the same legal  force and effect as if  executed by
Consultant.

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FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

         4.       CONFLICTING OBLIGATIONS

                  Contractor  is free to  perform  services  for other  entities
while  performing  services  for the  Company,  except if such other entity is a
competitor of the Company, thereby creating a risk of disclosure of confidential
information,  as defined in Section 2. Consultant  certifies that Consultant has
no  outstanding  agreement  or  obligation  that is in conflict  with any of the
provisions of this Agreement,  or that would preclude  Consultant from complying
with the provisions hereof, and further certifies that Consultant will not enter
into any such conflicting Agreement during the term of this Agreement.

         5.       NON-SOLICITATION

                  During the term of this  Agreement  and for a period of twelve
months following  termination of this Agreement,  Consultant shall not, directly
or indirectly,  hire, solicit,  or encourage to leave the Company's  employment,
any  employee  or  contractor  of the  Company  or hire  any  such  employee  or
contractor who has left the Company's employment or contractual engagement.

         6.       TERM AND TERMINATION

                  (a) Term.  This  Agreement  will  commence  on the date  first
written  above and will  continue  for the  Duration of Services as set forth on
Exhibit A, subject to early termination described below.

                  (b)  Termination.  The Company may  terminate  this  Agreement
immediately  and without prior notice if  Consultant  refuses to or is unable to
perform  the  Services  or is in  breach  of  any  material  provision  of  this
Agreement.

                  (c) Survival. Upon such termination,  all rights and duties of
the parties toward each other shall cease except:

                           (i) That the Company shall be obliged to pay,  within
thirty (30) days of the  effective  date of  termination,  all amounts  owing to
Consultant  for  Services  completed  and  accepted by the Company  prior to the
termination date and related expenses, if any, in accordance with the provisions
of Section 1 (Services and Compensation) hereof; and

                           (ii) Sections 2 (Confidentiality),  3 (Ownership),  5
(Non-Solicitation) and 8 (Independent  Contractors) shall survive termination of
this Agreement.

         7.       ASSIGNMENT

                  Neither  this  Agreement  nor any right  hereunder or interest
herein may be assigned or transferred by Consultant  without the express written
consent of the Company.

         8.       INDEPENDENT CONTRACTOR

                  It is the express  intention of the parties that Consultant is
an  independent  contractor.  Nothing  in  this  Agreement  shall  in any way be
construed to constitute  Consultant as an agent,  employee or  representative of
the  Company,  and  Consultant  shall  perform  the  Services  hereunder  as  an
independent  contractor.  Consultant  is free to  control  his  methods of work,
provided  that  Consultant  continues to render his best efforts for the Company
under this  Agreement.  Consultant  agrees to furnish (or  reimburse the Company
for) all tools and materials  necessary to accomplish  this contract,  and shall
incur all expenses associated with performance,  except as expressly provided on
Exhibit A of this Agreement.  Consultant acknowledges and agrees that Consultant
is  obligated  to report as  income  all  compensation  received  by  Consultant
pursuant  to this  Agreement,  and  Consultant  agrees to and  acknowledges  the
obligation  to pay all  self-employment  and  other  taxes  thereon.  Consultant
further

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FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

agrees to indemnify and hold harmless the Company and its  directors,  officers,
and employees from and against all taxes, losses,  damages,  liabilities,  costs
and  expenses,  including  attorney's  fees and other  legal  expenses,  arising
directly  or  indirectly  from  (i) any  negligent,  reckless  or  intentionally
wrongful act of Consultant or Consultant's assistants, employees or agents, (ii)
a  determination  by a court or agency that the Consultant is not an independent
contractor,  or (iii) any breach by the Consultant or  Consultant's  assistants,
employee or agents of any of the covenants contained in this Agreement.

         9.       BENEFITS

                  Consultant acknowledges and agrees and it is the intent of the
parties hereto that Consultant  receive no  Company-sponsored  benefits from the
Company either as a Consultant or employee.  Such benefits include,  but are not
limited to, paid vacation,  sick leave,  medical insurance,  401K participation,
and incentive or bonus  programs.  If Consultant is  reclassified  by a state or
federal  agency or court as an employee,  Consultant  will become a reclassified
employee and will receive no benefits  except those mandated by state or federal
law, even if by the terms of the  Company's  benefit plans in effect at the time
of such  reclassification  Consultant  would  otherwise  be  eligible  for  such
benefits.

         10.      ARBITRATION AND EQUITABLE RELIEF

                  (a) Disputes.  Except as provided in Section 10(d) below,  the
Company and  Consultant  agree that any dispute or  controversy  arising out of,
relating to or in connection with the  interpretation,  validity,  construction,
performance, breach or termination of this Agreement shall be settled by binding
arbitration to be held in San Mateo County,  California, in accordance with, but
not  necessarily  the  administration  of,  the  Commercial  Arbitration  Rules,
supplemented by the Supplemental  Procedures for Large Complex Disputes,  of the
American Arbitration Association as then in effect (the "Rules"). The arbitrator
may grant  injunctions  or other  relief in such  dispute  or  controversy.  The
decision of the arbitrator shall be final, conclusive and binding on the parties
to the arbitration.  Judgment may be entered on the arbitrator's decision in any
court of competent jurisdiction.

                  (b) Governing Law. The  arbitrator(s)  shall apply  California
law to the merits of any dispute or claim, without reference to conflicts of law
rules.  Consultant hereby consents to the personal jurisdiction of the state and
federal courts  located in California for any action or proceeding  arising from
or  relating to this  Agreement  or  relating  to any  arbitration  in which the
parties are participants.

                  (c) Costs.  The Company and Consultant shall each pay one-half
of the costs and expenses of such arbitration, and each shall separately pay its
counsel fees and expenses unless otherwise required by law.

                  (d)  Equitable  Relief.  The parties may apply to any court of
competent   jurisdiction  for  a  temporary   restraining   order,   preliminary
injunction,  or other interim or  conservatory  relief,  as  necessary,  without
breach of this arbitration agreement and without abridgment of the powers of the
arbitrator.

                  (e)  ACKNOWLEDGMENT.   CONSULTANT  HAS  READ  AND  UNDERSTANDS
SECTION 10, WHICH DISCUSSES ARBITRATION.  CONSULTANT UNDERSTANDS THAT BY SIGNING
THIS AGREEMENT,  CONSULTANT AGREES TO SUBMIT ANY CLAIMS ARISING OUT OF, RELATING
TO, OR IN  CONNECTION  WITH THIS  AGREEMENT,  OR THE  INTERPRETATION,  VALIDITY,
CONSTRUCTION,   PERFORMANCE,   BREACH  OR   TERMINATION   THEREOF,   TO  BINDING
ARBITRATION,  EXCEPT AS PROVIDED  IN SECTION  10(d),  AND THAT THIS  ARBITRATION
CLAUSE CONSTITUTES A WAIVER OF CONSULTANT'S RIGHT TO A JURY TRIAL AND RELATES TO
THE  RESOLUTION  OF ALL  DISPUTES  RELATING TO ALL  ASPECTS OF THE  RELATIONSHIP
BETWEEN THE PARTIES.

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         11.      GOVERNING LAW

                  This  Agreement  shall be governed by the laws of the State of
California.

         12.      ENTIRE AGREEMENT

                  This  Agreement  is the entire  agreement  of the  parties and
supersedes any prior  agreements  between them,  whether  written or oral,  with
respect to the subject matter hereof. No waiver,  alteration, or modification of
any of the provisions of this  Agreement  shall be binding unless in writing and
signed by duly authorized representatives of the parties hereto.

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the day and year first above written.

TERRY ROSS                          IMATRON INC.

______________________________                         _________________________

Address:                                               By:
        ____________________________                      ______________________

 ______________________________     Its:______________

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                                       93FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

                                  Exhibit 10.35

         This LOAN AND SECURITY  AGREEMENT  dated  February  21,  2001,  between
SILICON VALLEY BANK ("Bank"),  whose address is 3003 Tasman Drive,  Santa Clara,
California   95054  and   IMATRON   INCORPORATED,   a  New  Jersey   corporation
("Borrower"),  whose address is 389 Oyster Point Blvd., South San Francisco,  CA
94080  provides the terms on which Bank will lend to Borrower and Borrower  will
repay Bank. The parties agree as follows:

1. ACCOUNTING AND OTHER TERMS.

         Accounting  terms  not  defined  in this  Agreement  will be  construed
following GAAP. Calculations and determinations must be made following GAAP. The
term  "financial  statements"  includes  the  notes  and  schedules.  The  terms
"including"  and  "includes"   always  mean  "including  (or  includes)  without
limitation," in this or any Loan Document.

2.       LOAN AND TERMS OF PAYMENT

2.1      Credit Extensions.

         Borrower  will pay Bank  the  unpaid  principal  amount  of all  Credit
Extensions and interest on the unpaid principal amount of the Credit Extensions.

2.1.1    Revolving Advances.

         (a) Bank  will  make  Advances  not  exceeding  the  lesser  of (A) the
Committed  Revolving Line minus the Cash Management Services Sublimit or (B) the
Borrowing Base. Amounts borrowed under this Section may be repaid and reborrowed
during the term of this Agreement.

         (b) To obtain an Advance,  Borrower  must notify Bank by  facsimile  or
telephone  by 3:00 p.m.  Pacific  Time on the  Business Day the Advance is to be
made.  Borrower must promptly confirm the notification by delivering to Bank the
Payment/Advance  Form  attached  as  Exhibit  B. Bank will  credit  Advances  to
Borrower's deposit account. Bank may make Advances under this Agreement based on
instructions  from a  Responsible  Officer  or his or her  designee  or  without
instructions  if the Advances  are  necessary  to meet  Obligations,  which have
become due.  Bank may rely on any  telephone  notice given by a person whom Bank
believes is a Responsible Officer or designee.  Borrower will indemnify Bank for
any loss Bank suffers due to such reliance.

         (c) The Committed  Revolving Line terminates on the Revolving  Maturity
Date, when all Advances are immediately payable.

2.1.2    Cash Management Services Sublimit.

         (a)  Borrower  may  use  up to  $500,000  for  Bank's  Cash  Management
Services,  which may  include  merchant  services,  direct  deposit of  payroll,
business  credit card,  and check  cashing  services  identified in various cash
management  services  agreements  related to such services (the "Cash Management
Services").  Such  aggregate  credit  limit  shall  reduce the amount  otherwise
available to be borrowed  under the Committed  Revolving  Line. All amounts Bank
pays for any Cash  Management  Services  will be treated as  Advances  under the
Committed  Revolving Line. In addition,  direct deposit payroll shall be limited
to  $400,000,  business  credit card  services  to  $50,000,  and the other Cash
Management Services to $50,000.

2.2      Overadvances.

         If  Borrower's  Obligations  under  Section  2.1.1 and 2.1.2 exceed the
lesser of either (i) the  Committed  Revolving  Line  minus the Cash  Management
Services Sublimit or (ii) the Borrowing Base, Borrower must immediately pay Bank
the excess.

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2.3      Interest Rate, Payments.

         (a)  Interest  Rate.   Advances  accrue  interest  on  the  outstanding
principal  balance at a per annum rate of one (1.0)  percentage  point above the
Prime Rate. After an Event of Default, Obligations accrue interest at five (5.0)
percentage  points  above the rate  effective  immediately  before  the Event of
Default.  The interest rate  increases or decreases when the Prime Rate changes.
Interest is computed on a 360 day year for the actual number of days elapsed.

         (b) Payments.  Interest due on the Committed  Revolving Line is payable
on the  first  day of each  month.  Bank may  debit  any of  Borrower's  deposit
accounts including Account Number 0351702070 for principal and interest payments
owing or any amounts Borrower owes Bank. Bank will promptly notify Borrower when
it debits Borrower's accounts. These debits are not a set-off. Payments received
after 12:00 noon Pacific Time are considered received at the opening of business
on the next  Business Day. When a payment is due on a day that is not a Business
Day, the payment is due the next  Business Day and  additional  fees or interest
accrue.

2.4      Fees.

         Borrower will pay:

         (a) Bank Expenses.  All Bank Expenses (including  reasonable attorneys'
fees and  reasonable  expenses)  incurred  through  and  after  the date of this
Agreement, are payable when due.

         (b) Loan  Facility  Fee.  A loan  facility  fee of  $35,000  per annum,
payable in full on the date hereof.

3.       CONDITIONS OF LOANS

3.1      Conditions Precedent to Initial Credit Extension.

         Bank's  obligation to make the initial  Credit  Extension is subject to
the conditions  precedent that it receives payment of the Loan Facility Fee, the
results of the initial collateral audit (at Borrower's expense,  which shall not
exceed $2,000)  satisfactory  to Bank, and the  agreements,  documents and other
fees it requires.

3.2      Conditions Precedent to all Credit Extensions.

         Bank's obligations to make each Credit Extension, including the initial
Credit Extension, is subject to the following:

         (a) timely receipt of any Payment/Advance Form; and

         (b) the  representations and warranties in Section 5 must be materially
true on the date of the  Payment/Advance  Form and on the effective date of each
Credit Extension and no Event of Default may have occurred and be continuing, or
result  from  the  Credit   Extension.   Each  Credit  Extension  is  Borrower's
representation and warranty on that date that the representations and warranties
of Section 5 remain true.

4.       CREATION OF SECURITY INTEREST

4.1      Grant of Security Interest.

         (a)  Borrower  grants  Bank  a  continuing  security  interest  in  all
presently  existing and later acquired  Collateral to secure all Obligations and
performance of each of Borrower's  duties under the Loan  Documents.  Except for
Permitted  Liens,  any  security  interest  will  be a first  priority  security
interest  in the  Collateral.  Bank may

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place a "hold" on any deposit account  pledged as Collateral.  If this Agreement
is terminated, Bank's lien and security interest in the Collateral will continue
until Borrower fully satisfies its Obligations.

5.       REPRESENTATIONS AND WARRANTIES

         Borrower represents and warrants as follows:

5.1      Due Organization and Authorization.

         Borrower and each  Subsidiary  is duly existing and in good standing in
its state of formation and qualified and licensed to do business in, and in good
standing in, any state in which the conduct of its business or its  ownership of
property requires that it be qualified,  except where the failure to do so could
not reasonably be expected to cause a Material Adverse Change.

         The execution, delivery and performance of the Loan Documents have been
duly authorized,  and do not conflict with Borrower's formation  documents,  nor
constitute an event of default under any material agreement by which Borrower is
bound. Borrower is not in default under any agreement to which or by which it is
bound in which the  default  could  reasonably  be  expected to cause a Material
Adverse Change.

5.2      Collateral.

         Borrower  has  good  title  to the  Collateral,  free of  Liens  except
Permitted  Liens.  The Accounts  are bona fide,  existing  obligations,  and the
service or property has been performed or delivered to the account debtor or its
agent for  immediate  shipment to and  unconditional  acceptance  by the account
debtor.  Borrower has no notice of any actual or imminent Insolvency  Proceeding
of any account  debtor whose  accounts are an Eligible  Account in any Borrowing
Base  Certificate.  All  Inventory  is in all  material  respects  of  good  and
marketable  quality,  free from material defects.  Borrower is the sole owner of
its  intellectual  property,  except for  non-exclusive  licenses granted to its
customers in the ordinary  course of business and except for exclusive  licenses
granted  in the  ordinary  course  of  business  limited  to  specific  uses  or
geographic  regions.  Each of Borrower's patents is valid and enforceable and no
part  of the  Borrower's  intellectual  property  has  been  judged  invalid  or
unenforceable,  in whole or in part, and no claim has been made that any part of
the  Borrower's  intellectual  property  violates the rights of any third party,
except to the extent  such claim  could not  reasonably  be  expected to cause a
Material Adverse Change.

5.3      Litigation.

         Except as shown in the  Schedule,  there are no actions or  proceedings
pending  or, to the  knowledge  of  Borrower's  Responsible  Officers  and legal
counsel,  threatened by or against  Borrower or any Subsidiary in which a likely
adverse  decision  could  reasonably  be  expected  to cause a Material  Adverse
Change.

5.4      No Material Adverse Change in Financial Statements.

         All consolidated financial statements for Borrower, and any Subsidiary,
delivered  to  Bank  fairly   present  in  all  material   respects   Borrower's
consolidated   financial  condition  and  Borrower's   consolidated  results  of
operations.  There  has  not  been  any  material  deterioration  in  Borrower's
consolidated  financial  condition  since the date of the most recent  financial
statements submitted to Bank.

5.5      Solvency.

         The fair salable value of Borrower's assets  (including  goodwill minus
disposition  costs) exceeds the fair value of its  liabilities;  the Borrower is
not  left  with  unreasonably  small  capital  after  the  transactions  in this
Agreement; and Borrower is able to pay its debts (including trade debts) as they
mature.

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5.6      Regulatory Compliance.

         Borrower is not an "investment company" or a company "controlled" by an
"investment  company" under the Investment  Company Act. Borrower is not engaged
as one of its important  activities in extending  credit for margin stock (under
Regulations  T and U of the Federal  Reserve Board of  Governors).  Borrower has
complied in all material  respects  with the Federal Fair Labor  Standards  Act.
Borrower has not violated any laws,  ordinances or rules, the violation of which
could  reasonably  be  expected  to cause a  Material  Adverse  Change.  None of
Borrower's or any Subsidiary's properties or assets has been used by Borrower or
any Subsidiary or, to the best of Borrower's knowledge,  by previous Persons, in
disposing, producing, storing, treating, or transporting any hazardous substance
other than legally.  Borrower and each  Subsidiary has timely filed all required
tax returns and paid,  or made  adequate  provision to pay, all material  taxes,
except those being  contested in good faith with adequate  reserves  under GAAP.
Borrower  and  each   Subsidiary  has  obtained  all  consents,   approvals  and
authorizations  of, made all declarations or filings with, and given all notices
to, all  government  authorities  that are necessary to continue its business as
currently  conducted,  except where the failure to do so could not reasonably be
expected to cause a Material Adverse Change.

5.7      Subsidiaries.

         Borrower does not own any stock,  partnership  interest or other equity
securities except for Permitted Investments.

5.8      Full Disclosure.

         No written  representation,  warranty or other statement of Borrower in
any certificate or written statement given to Bank (taken together with all such
written  certificates  and  written  statements  to Bank)  contains  any  untrue
statement of a material fact or omits to state a material fact necessary to make
the statements  contained in the  certificates or statements not misleading.  It
being recognized by Bank that the projections and forecasts provided by Borrower
in good faith and based upon reasonable  assumptions are not viewed as facts and
that actual results during the period or periods covered by such projections and
forecasts may differ from the projected and forecasted results.

6.       AFFIRMATIVE COVENANTS

         Borrower will do all of the following:

6.1      Government Compliance.

         Borrower will maintain its and all  Subsidiaries'  legal  existence and
good standing in its  jurisdiction  of formation and maintain  qualification  in
each  jurisdiction  in which the  failure  to so  qualify  would  reasonably  be
expected  to  cause  a  material  adverse  effect  on  Borrower's   business  or
operations.  Borrower will comply,  and have each  Subsidiary  comply,  with all
laws,  ordinances  and  regulations to which it is subject,  noncompliance  with
which could have a material adverse effect on Borrower's  business or operations
or would reasonably be expected to cause a Material Adverse Change.

6.2      Financial Statements, Reports, Certificates.

         (a) Borrower  will deliver to Bank:  (i) as soon as  available,  but no
later than 5 days after filing with the SEC, Borrower's  quarterly  consolidated
balance sheet and income statement covering Borrower's  consolidated  operations
during the period, in a form and certified by a Responsible  Officer  acceptable
to Bank; (ii) as soon as available, but no later than 90 days after the last day
of Borrower's fiscal year, audited  consolidated  financial  statements prepared
under GAAP,  consistently  applied,  together with an unqualified opinion on the
financial  statements  from an  independent  certified  public  accounting  firm
reasonably acceptable to Bank; (iii) within 5 days

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of filing,  copies of all  statements,  reports and notices  made  available  to
Borrower's  security  holders  or to any  holders of  Subordinated  Debt and all
reports  on Form  10-K,  10-Q and 8-K filed  with the  Securities  and  Exchange
Commission;  (iv) a prompt  report of any legal  actions  pending or  threatened
against  Borrower  or any  Subsidiary  that could  result in damages or costs to
Borrower or any Subsidiary of $100,000 or more; (v) budgets,  sales projections,
operating  plans  or  other  financial  information  Bank  reasonably  requests,
including financial  projections approved by Borrower's board of directors to be
delivered within 30 of fiscal year end.

         (b)  Within 20 days  after the last day of each  month,  Borrower  will
deliver to Bank a Borrowing Base Certificate signed by a Responsible  Officer in
the form of Exhibit C, with aged  listings of accounts  receivable  (including a
schedule of Deferred  Maintenance  Revenue) and accounts payable each by invoice
date.

         (c) Within 5 days of filing with the SEC, Borrower will deliver to Bank
with the quarterly  financial  statements a Compliance  Certificate  signed by a
Responsible  Officer in the form of Exhibit D  (including a schedule of Deferred
Maintenance Revenue).

         (d) Bank has the right to audit  Borrower's  Collateral  at  Borrower's
expense,  but the audits will be  conducted  no more often than twice every year
unless an Event of Default has occurred and is continuing, and provided that the
fee for the initial audit hereunder to be performed on or about the Closing Date
shall not exceed $2,000.

6.3      Inventory; Returns.

         Borrower will keep all Inventory in good and marketable condition, free
from material defects.  Returns and allowances  between Borrower and its account
debtors will follow Borrower's customary practices as they exist at execution of
this Agreement.  Borrower must promptly notify Bank of all returns,  recoveries,
disputes and claims, that involve more than $50,000.

6.4      Taxes.

         Borrower will make, and cause each  Subsidiary to make,  timely payment
of all material federal,  state, and local taxes or assessments and will deliver
to Bank, on demand, appropriate certificates attesting to the payment.

6.5      Insurance.

         Borrower  will keep its business and the  Collateral  insured for risks
and in amounts, as Bank may reasonably request.  Insurance policies will be in a
form,  with  companies,  and in amounts that are  satisfactory to Bank in Bank's
reasonable  discretion.  All property policies will have a lender's loss payable
endorsement  showing Bank as an additional loss payee and all liability policies
will show the Bank as an  additional  insured and provide  that the insurer must
give  Bank at least 20 days  notice  before  canceling  its  policy.  At  Bank's
request,  Borrower will deliver certified copies of policies and evidence of all
premium  payments.  Proceeds payable under any policy will, at Bank's option, be
payable to Bank on account of the Obligations.

6.6      Primary Accounts; Minimum and Target Balances.

         Borrower will maintain its primary  depository  and operating  accounts
with Bank. In addition,  Borrower  agrees that at least 50% of its cash and cash
equivalents  (as  determined  pursuant to GAAP and as  reflected  in  Borrower's
quarterly  financial  statements)  shall be deposited  with or invested  through
Bank.  Furthermore,  the target balance on Borrower's sweep account  established
under the Cash Management Services shall be at least $600,000.

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6.7      Financial Covenants.

                  Borrower will maintain as of the last day of each quarter:

                  (i) Quick Ratio (Adjusted). A ratio of Quick Assets to Current
Liabilities minus Deferred Maintenance Revenue of at least 1.00 to 1.00.

                  (ii)  Debt/Tangible  Net Worth  Ratio  (Adjusted).  A ratio of
Total Liabilities less Subordinated  Debt less Deferred  Maintenance  Revenue to
Tangible Net Worth plus Subordinated Debt of not more than 1.00 to 1.00.

                  (iii)  Profitability.  Borrower will have a minimum net profit
of $1.00 for each fiscal quarter.

6.8      Further Assurances.

         Borrower will execute any further  instruments  and take further action
as Bank reasonably  requests to perfect or continue Bank's security  interest in
the Collateral or to effect the purposes of this Agreement.

7.       NEGATIVE COVENANTS

         Borrower will not do any of the following  without Bank's prior written
consent, which will not be unreasonably withheld:

7.1      Dispositions.

         Convey,  sell,  lease,  transfer or otherwise  dispose of (collectively
"Transfer"),  or permit any of its Subsidiaries to Transfer,  all or any part of
its business or property,  other than Transfers (i) of Inventory in the ordinary
course of business;  (ii) of non-exclusive licenses and similar arrangements for
the use of the property of Borrower or its  Subsidiaries  in the ordinary course
of business; or (iii) of worn-out or obsolete Equipment.

7.2      Changes in Business, Ownership, Management or Business Locations.

         Engage in or permit any of its  Subsidiaries  to engage in any business
other than the businesses currently engaged in by Borrower or reasonably related
thereto or have a material change in its ownership or management (other than the
sale of Borrower's  equity securities in a public offering or to venture capital
investors  approved by Bank) of greater than 25%.  Borrower will not, without at
least 30 days prior written notice,  relocate its chief executive  office or add
any new offices or business locations.

7.3      Mergers or Acquisitions.

         Merge or  consolidate,  or permit any of its  Subsidiaries  to merge or
consolidate,   with  any  other  Person,  or  acquire,  or  permit  any  of  its
Subsidiaries  to  acquire,  all or  substantially  all of the  capital  stock or
property of another  Person,  except  where (i) no Event of Default has occurred
and is  continuing  or would  result  from such  action  during the term of this
Agreement and (ii) such transaction  would not result in a decrease of more than
25% of Tangible Net Worth. A Subsidiary  may merge or  consolidate  into another
Subsidiary or into Borrower.

7.4      Indebtedness.

         Create, incur, assume, or be liable for any Indebtedness, or permit any
Subsidiary to do so, other than Permitted Indebtedness.

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7.5      Encumbrance.

         Create,  incur, or allow any Lien on any of its property,  or assign or
convey any right to  receive  income,  including  the sale of any  Accounts,  or
permit any of its  Subsidiaries to do so, except for Permitted  Liens, or permit
any Collateral not to be subject to the first priority security interest granted
here,  subject to Permitted Liens. As more fully provided in the Negative Pledge
Agreement executed in connection  herewith,  in no event shall Borrower grant or
suffer to exist any Lien  upon its  intellectual  property  other  than  license
rights  otherwise  permitted  hereunder,  and Borrower  shall not enter into any
agreement with any third party preventing  Borrower from granting to Bank a Lien
upon its intellectual property.

7.6      Distributions; Investments.

         Directly  or  indirectly  acquire  or  own  any  Person,  or  make  any
Investment in any Person, other than Permitted Investments, or permit any of its
Subsidiaries to do so. Pay any dividends or make any  distribution or payment or
redeem, retire or purchase any capital stock.

7.7      Transactions with Affiliates.

         Directly or  indirectly  enter into or permit any material  transaction
with any  Affiliate  except  transactions  that are in the  ordinary  course  of
Borrower's business,  on terms less favorable to Borrower than would be obtained
in an arm's length transaction with a non-affiliated Person.

7.8      Subordinated Debt.

         Make or permit any payment on any Subordinated  Debt,  except under the
terms of the Subordinated  Debt, or amend any provision in any document relating
to the Subordinated Debt without Bank's prior written consent.

7.9      Compliance.

         Become  an  "investment   company"  or  a  company   controlled  by  an
"investment  company," under the Investment  Company Act of 1940 or undertake as
one of its  important  activities  extending  credit to purchase or carry margin
stock,  or use the proceeds of any Credit  Extension for that  purpose;  fail to
meet the minimum  funding  requirements of ERISA,  permit a Reportable  Event or
Prohibited  Transaction,  as defined in ERISA, to occur; fail to comply with the
Federal Fair Labor Standards Act or violate any other law or regulation,  if the
violation  could  reasonably  be expected to have a material  adverse  effect on
Borrower's  business or  operations  or would  reasonably be expected to cause a
Material Adverse Change, or permit any of its Subsidiaries to do so.

8.       EVENTS OF DEFAULT

         Any one of the following is an Event of Default:

8.1      Payment Default.

         If  Borrower  fails to pay any of the  Obligations  within 3 days after
their due date.  During the additional period the failure to cure the default is
not an Event of Default  (but no Credit  Extension  will be made during the cure
period);

8.2      Covenant Default.

         If Borrower  does not perform any  obligation  in Section 6 or violates
any  covenant  in Section 7 or does not  perform or observe  any other  material
term,  condition or covenant in this Agreement,  any Loan  Documents,  or in any
agreement  between  Borrower  and  Bank  and as to any  default  under  a  term,
condition  or covenant  that can be

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cured,  has not cured the  default  within 10 days  after it  occurs,  or if the
default  cannot be cured  within 10 days or  cannot  be cured  after  Borrower's
attempts within 10 day period,  and the default may be cured within a reasonable
time,  then  Borrower  has an  additional  period  (of not more than 30 days) to
attempt to cure the default. During the additional time, the failure to cure the
default is not an Event of Default (but no Credit Extensions will be made during
the cure period);

8.3      Material Adverse Change.

         If  there  occurs  (i) a  material  adverse  change  in  the  business,
operations,  or condition  (financial  or  otherwise)  of the  Borrower,  (ii) a
material  impairment  in  the  prospect  of  repayment  of  any  portion  of the
Obligations,  or (iii) a material  impairment  of the value  (other  than normal
depreciation) or priority of Bank's security interest in the Collateral.

8.4      Attachment.

         If any  material  portion of  Borrower's  assets is  attached,  seized,
levied on, or comes into possession of a trustee or receiver and the attachment,
seizure  or  levy  is not  removed  in 10  days,  or if  Borrower  is  enjoined,
restrained,  or prevented by court order from  conducting a material part of its
business or if a judgment or other claim becomes a Lien on a material portion of
Borrower's  assets, or if a notice of lien, levy, or assessment is filed against
any of Borrower's  assets by any  government  agency and not paid within 10 days
after Borrower receives notice.  These are not Events of Default if stayed or if
a bond is posted pending  contest by Borrower (but no Credit  Extensions will be
made during the cure period);

8.5      Insolvency.

         If  Borrower  becomes  insolvent  or if Borrower  begins an  Insolvency
Proceeding  or an  Insolvency  Proceeding  is  begun  against  Borrower  and not
dismissed or stayed within 30 days (but no Credit Extensions will be made before
any Insolvency Proceeding is dismissed);

8.6      Other Agreements.

         If there is a default in any  agreement  between  Borrower  and a third
party  that  gives the third  party the  right to  accelerate  any  Indebtedness
exceeding $100,000 or that could cause a Material Adverse Change;

8.7      Judgments.

         If a money judgment(s) in the aggregate of at least $50,000 is rendered
against  Borrower  and is  unsatisfied  and  unstayed for 10 days (but no Credit
Extensions will be made before the judgment is stayed or satisfied);

8.8      Misrepresentations.

         If  Borrower  or any Person  acting  for  Borrower  makes any  material
misrepresentation  or  material  misstatement  now or later in any  warranty  or
representation  in this  Agreement  or in any  writing  delivered  to Bank or to
induce Bank to enter this Agreement or any Loan Document; or

8.9      Guaranty.

         Any  guaranty  of any  Obligations  ceases for any reason to be in full
force or any Guarantor does not perform any obligation under any guaranty of the
Obligations,  or any material  misrepresentation or material misstatement exists
now  or  later  in  any  warranty  or  representation  in  any  guaranty  of the
Obligations  or in any  certificate  delivered  to Bank in  connection  with the
guaranty,  or any  circumstance  described in Sections 8.4, 8.5 or 8.7 occurs to
any Guarantor.

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9.       BANK'S RIGHTS AND REMEDIES

9.1      Rights and Remedies.

         When an Event of Default occurs and continues Bank may,  without notice
or demand, do any or all of the following:

         (a)  Declare all  Obligations  immediately  due and payable  (but if an
Event of Default described in Section 8.5 occurs all Obligations are immediately
due and payable without any action by Bank);

         (b) Stop advancing  money or extending  credit for  Borrower's  benefit
under this Agreement or under any other agreement between Borrower and Bank;

         (c) Settle or adjust  disputes and claims directly with account debtors
for amounts, on terms and in any order that Bank considers advisable;

         (d)  Make  any  payments  and do any  acts it  considers  necessary  or
reasonable  to protect its security  interest in the  Collateral.  Borrower will
assemble  the  Collateral  if  Bank  requires  and  make  it  available  as Bank
designates.  Bank may enter premises  where the Collateral is located,  take and
maintain possession of any part of the Collateral,  and pay, purchase,  contest,
or  compromise  any Lien which  appears to be prior or superior to its  security
interest and pay all expenses incurred.  Borrower grants Bank a license to enter
and occupy any of its premises, without charge, to exercise any of Bank's rights
or remedies;

         (e) Apply to the  Obligations any (i) balances and deposits of Borrower
it holds,  or (ii) any  amount  held by Bank  owing to or for the  credit or the
account of Borrower;

         (f) Ship, reclaim,  recover, store, finish,  maintain,  repair, prepare
for  sale,  advertise  for  sale,  and sell the  Collateral.  Bank is  granted a
non-exclusive,  royalty-free  license  or other  right to use,  without  charge,
Borrower's labels, patents,  copyrights,  mask works, rights of use of any name,
trade secrets, trade names,  trademarks,  service marks, and advertising matter,
or any  similar  property  as it  pertains  to  the  Collateral,  in  completing
production  of,  advertising  for sale,  and  selling  any  Collateral  and,  in
connection  with Bank's  exercise of its rights under this  Section,  Borrower's
rights under all licenses and all franchise  agreements inure to Bank's benefit;
and

         (g) Dispose of the Collateral according to the Code.

9.2      Power of Attorney.

         Effective only when an Event of Default occurs and continues,  Borrower
irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower's name
on any checks or other forms of payment or security;  (ii) sign  Borrower's name
on any  invoice or bill of lading  for any  Account  or drafts  against  account
debtors,  (iii) make, settle,  and adjust all claims under Borrower's  insurance
policies; (iv) settle and adjust disputes and claims about the Accounts directly
with account debtors, for amounts and on terms Bank determines  reasonable;  and
(v) transfer the  Collateral  into the name of Bank or a third party as the Code
permits.  Bank may exercise the power of attorney to sign Borrower's name on any
documents  necessary  to perfect or  continue  the  perfection  of any  security
interest  regardless  of  whether  an  Event of  Default  has  occurred.  Bank's
appointment as Borrower's attorney in fact, and all of Bank's rights and powers,
coupled with an interest,  are irrevocable until all Obligations have been fully
repaid  and  performed  and  Bank's  obligation  to  provide  Credit  Extensions
terminates.

9.3      Accounts Collection.

         When an Event of  Default  occurs  and  continues,  Bank may notify any
Person owing Borrower money of Bank's security  interest in the funds and verify
the amount of the Account.  Borrower must collect all payments in

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trust for Bank and, if  requested by Bank,  immediately  deliver the payments to
Bank in the form received from the account debtor,  with proper endorsements for
deposit.

9.4      Bank Expenses.

         If Borrower  fails to pay any amount or furnish any  required  proof of
payment  to third  persons,  Bank may make all or part of the  payment or obtain
insurance  policies  required  in Section  6.5,  and take any  action  under the
policies  Bank deems  prudent.  Any amounts  paid by Bank are Bank  Expenses and
immediately  due and payable,  bearing  interest at the then applicable rate and
secured by the  Collateral.  No payments by Bank are deemed an agreement to make
similar payments in the future or Bank's waiver of any Event of Default.

9.5      Bank's Liability for Collateral.

         If Bank complies with reasonable banking practices and Section 9-207 of
the Code, it is not liable for: (a) the safekeeping of the  Collateral;  (b) any
loss or  damage  to the  Collateral;  (c) any  diminution  in the  value  of the
Collateral; or (d) any act or default of any carrier,  warehouseman,  bailee, or
other person.  Borrower  bears all risk of loss,  damage or  destruction  of the
Collateral.

9.6      Remedies Cumulative.

         Bank's rights and remedies under this  Agreement,  the Loan  Documents,
and all other  agreements  are  cumulative.  Bank has all  rights  and  remedies
provided under the Code, by law, or in equity.  Bank's  exercise of one right or
remedy is not an  election,  and Bank's  waiver of any Event of Default is not a
continuing waiver. Bank's delay is not a waiver,  election, or acquiescence.  No
waiver is effective  unless  signed by Bank and then is only  effective  for the
specific instance and purpose for which it was given.

9.7      Demand Waiver.

         Borrower  waives  demand,  notice of  default  or  dishonor,  notice of
payment and nonpayment,  notice of any default, nonpayment at maturity, release,
compromise,   settlement,   extension,   or  renewal  of  accounts,   documents,
instruments,  chattel paper,  and  guarantees  held by Bank on which Borrower is
liable.

10.      NOTICES

         All notices or demands by any party about this  Agreement  or any other
related  agreement must be in writing and be personally  delivered or sent by an
overnight delivery service,  by certified mail, postage prepaid,  return receipt
requested,  or by  telefacsimile  to the addresses set forth at the beginning of
this Agreement.  A party may change its notice address by giving the other party
written notice.

11.      CHOICE OF LAW , VENUE AND JURY TRIAL WAIVER

         California law governs the Loan Documents  without regard to principles
of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in Santa Clara County, California.

BORROWER  AND BANK EACH WAIVE  THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF  ACTION  ARISING  OUT  OF  ANY  OF THE  LOAN  DOCUMENTS  OR ANY  CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS
WAIVER IS A MATERIAL  INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS  AGREEMENT.
EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

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12.      GENERAL PROVISIONS

12.1     Successors and Assigns.

         This  Agreement  binds and is for the  benefit  of the  successors  and
permitted  assigns of each party.  Borrower may not assign this Agreement or any
rights under it without  Bank's prior  written  consent  which may be granted or
withheld  in Bank's  discretion.  Bank has the right,  without the consent of or
notice to Borrower, to sell, transfer,  negotiate, or grant participation in all
or any part of, or any  interest  in,  Bank's  obligations,  rights and benefits
under this Agreement.

12.2     Indemnification.

         Borrower  will  indemnify,  defend  and  hold  harmless  Bank  and  its
officers,  employees, and agents against: (a) all obligations,  demands, claims,
and liabilities  asserted by any other party in connection with the transactions
contemplated  by the  Loan  Documents;  and (b)  all  losses  or  Bank  Expenses
incurred,  or paid by Bank from,  following,  or  consequential  to transactions
between Bank and Borrower  (including  reasonable  attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

12.3     Time of Essence.

         Time is of the essence for the  performance of all  obligations in this
Agreement.

12.4     Severability of Provision.

         Each  provision  of  this  Agreement  is  severable  from  every  other
provision in determining the enforceability of any provision.

12.5     Amendments in Writing, Integration.

         All  amendments  to this  Agreement  must be in  writing  and signed by
Borrower and Bank.  This Agreement  represents the entire  agreement  about this
subject  matter,  and supersedes  prior  negotiations  or agreements.  All prior
agreements,  understandings,   representations,   warranties,  and  negotiations
between the parties about the subject matter of this  Agreement  merge into this
Agreement and the Loan Documents.

12.6     Counterparts.

         This  Agreement  may be executed in any number of  counterparts  and by
different  parties on separate  counterparts,  each of which,  when executed and
delivered, are an original, and all taken together, constitute one Agreement.

12.7     Survival.

         All covenants,  representations  and warranties  made in this Agreement
continue in full force while any Obligations remain outstanding. The obligations
of Borrower in Section 12.2 to indemnify Bank will survive until all statutes of
limitations for actions that may be brought against Bank have run.

12.8     Confidentiality.

         In handling any confidential  information,  Bank will exercise the same
degree  of care  that it  exercises  for its own  proprietary  information,  but
disclosure of information  may be made (i) to Bank's  subsidiaries or affiliates
in connection with their business with Borrower, (ii) to prospective transferees
or  purchasers  of  any  interest  in the  loans,  (iii)  as  required  by  law,
regulation, subpoena, or other order, (iv) as required in connection with Bank's

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examination or audit and (v) as Bank considers  appropriate  exercising remedies
under this Agreement. Confidential information does not include information that
either:  (a) is in the public domain or in Bank's  possession  when disclosed to
Bank, or becomes part of the public  domain after  disclosure to Bank; or (b) is
disclosed to Bank by a third  party,  if Bank does not know that the third party
is prohibited from disclosing the information.

12.9     Attorneys' Fees, Costs and Expenses.

         In any action or  proceeding  between  Borrower and Bank arising out of
the Loan  Documents,  the  prevailing  party will be  entitled  to  recover  its
reasonable  attorneys' fees and other reasonable costs and expenses incurred, in
addition to any other relief to which it may be entitled.

13.      DEFINITIONS

13.1     Definitions.

         In this Agreement:

         "Accounts"  are all  existing  and  later  arising  accounts,  contract
rights, and other obligations owed Borrower in connection with its sale or lease
of goods  (including  licensing  software and other  technology) or provision of
services, all credit insurance,  guaranties,  other security and all merchandise
returned or reclaimed by Borrower and  Borrower's  Books  relating to any of the
foregoing.

         "Advance"  or  "Advances"  is a loan  advance (or  advances)  under the
Committed Revolving Line.

         "Affiliate"  of a Person is a Person that owns or controls  directly or
indirectly the Person,  any Person that controls or is controlled by or is under
common  control  with the Person,  and each of that  Person's  senior  executive
officers,  directors,  partners and, for any Person that is a limited  liability
company, that Person's managers and members.

         "Bank  Expenses" are all audit fees and expenses and  reasonable  costs
and expenses (including  reasonable attorneys' fees and expenses) for preparing,
negotiating,   administering,   defending  and  enforcing  the  Loan   Documents
(including appeals or Insolvency Proceedings).

         "Borrower's  Books"  are all  Borrower's  books and  records  including
ledgers,  records regarding  Borrower's  assets or liabilities,  the Collateral,
business operations or financial condition and all computer programs or discs or
any equipment containing the information.

         "Borrowing  Base" is (i) 80% of  Eligible  Accounts  plus  (ii) 100% of
Eligible  Foreign  Accounts as  determined by Bank from  Borrower's  most recent
Borrowing  Base  Certificate;   provided,  however,  that  Bank  may  lower  the
percentage  of the  Borrowing  Base  after  performing  an audit  of  Borrower's
Collateral.

         "Business  Day" is any day that is not a  Saturday,  Sunday or a day on
which the Bank is closed.

         "Cash Management Services" are defined in Section 2.1.2.

         "Closing Date" is the date of this Agreement.

         "Code" is the California Uniform Commercial Code.

         "Collateral" is the property described on Exhibit A.

         "Committed Revolving Line" is an Advance of up to $7,000,000.

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         "Contingent  Obligation"  is, for any  Person,  any direct or  indirect
liability,  contingent or not, of that Person for (i) any  indebtedness,  lease,
dividend,  letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed,  endorsed,  co-made,  discounted or sold with
recourse by that  Person,  or for which that  Person is  directly or  indirectly
liable;  (ii) any  obligations  for undrawn letters of credit for the account of
that  Person;  and (iii) all  obligations  from any interest  rate,  currency or
commodity  swap  agreement,  interest  rate cap or  collar  agreement,  or other
agreement or arrangement  designated to protect a Person against  fluctuation in
interest rates,  currency  exchange rates or commodity  prices;  but "Contingent
Obligation"  does not include  endorsements  in the ordinary course of business.
The amount of a Contingent  Obligation is the stated or determined amount of the
primary  obligation  for  which  the  Contingent  Obligation  is made or, if not
determinable,  the maximum reasonably anticipated liability for it determined by
the Person in good  faith;  but the  amount  may not  exceed the  maximum of the
obligations under the guarantee or other support arrangement.

         "Credit  Extension" is each Advance or any other extension of credit by
Bank for Borrower's benefit.

         "Current  Liabilities"  are the aggregate  amount of  Borrower's  Total
Liabilities which mature within one (1) year.

         "Deferred  Maintenance  Revenue" is all amounts  received in advance of
performance under maintenance contract and not yet recognized as revenue.

         "Eligible  Accounts" are Accounts in the ordinary  course of Borrower's
business that meet all Borrower's  representations  and warranties in Section 5;
but Bank may change eligibility standards by giving Borrower notice. Unless Bank
agrees otherwise in writing, Eligible Accounts will not include:

         (a)  Accounts  that the  account  debtor has not paid within 90 days of
invoice  date except for  accounts  due for any leasing  companies  set forth on
Eligible  Accounts Schedule hereto, as approved by Bank, as to which such period
shall be 120 days;

         (b) Accounts for an account debtor,  50% or more of whose Accounts have
not been paid within 90 days of invoice date;

         (c) Credit balances over 90 days from invoice date;

         (d) Accounts for an account debtor,  including Affiliates,  whose total
obligations to Borrower exceed 25% of all Accounts,  for the amounts that exceed
that percentage, unless the Bank approves in writing;

         (e) Accounts for which the account  debtor does not have its  principal
place of business in the United States except for Eligible Foreign Accounts;

         (f) Accounts for which the account debtor is a federal,  state or local
government entity or any department, agency, or instrumentality;

         (g) Accounts for which Borrower owes the account debtor, but only up to
the amount owed (sometimes called "contra" accounts,  accounts payable, customer
deposits or credit accounts);

         (h) Accounts for  demonstration or promotional  equipment,  or in which
goods are consigned,  sales guaranteed,  sale or return, sale on approval,  bill
and hold, or other terms if account debtor's payment may be conditional;

         (i)  Accounts  for which the account  debtor is  Borrower's  Affiliate,
officer, employee, or agent;

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         (j) Accounts in which the account  debtor  disputes  liability or makes
any claim and Bank believes there may be a basis for dispute (but only up to the
disputed  or  claimed  amount),  or if  the  Account  Debtor  is  subject  to an
Insolvency Proceeding, or becomes insolvent, or goes out of business;

         (k)  Accounts for which Bank  reasonably  determines  collection  to be
doubtful.

         "Eligible  Foreign  Accounts" are Accounts for which the account debtor
does not have its principal  place of business in the United States but are: (1)
supported by letter(s) of credit  advised and  negotiated by Bank and not unpaid
180 days or more from invoice date or (2) that Bank approves in writing.

         "Equipment"  is all present  and future  machinery,  equipment,  tenant
improvements,  furniture,  fixtures,  vehicles,  tools, parts and attachments in
which Borrower has any interest.

         "ERISA" is the Employment  Retirement  Income Security Act of 1974, and
its regulations.

         "GAAP" is generally accepted accounting principles.

         "Guarantor" is any present or future guarantor of the Obligations.

         "Indebtedness"  is (a)  indebtedness for borrowed money or the deferred
price of property or services,  such as reimbursement  and other obligations for
surety bonds and letters of credit, (b) obligations  evidenced by notes,  bonds,
debentures  or  similar  instruments,  (c)  capital  lease  obligations  and (d)
Contingent Obligations.

         "Insolvency  Proceeding" are proceedings by or against any Person under
the United States  Bankruptcy  Code, or any other  bankruptcy or insolvency law,
including  assignments  for the benefit of creditors,  compositions,  extensions
generally  with  its   creditors,   or   proceedings   seeking   reorganization,
arrangement, or other relief.

         "Inventory"  is present and future  inventory in which Borrower has any
interest,  including merchandise,  raw materials,  parts, supplies,  packing and
shipping  materials,  work in process and finished products intended for sale or
lease  or to be  furnished  under a  contract  of  service,  of  every  kind and
description  now or later  owned by or in the custody or  possession,  actual or
constructive, of Borrower, including inventory temporarily out of its custody or
possession or in transit and including returns on any accounts or other proceeds
(including  insurance  proceeds)  from  the  sale or  disposition  of any of the
foregoing and any documents of title.

         "Investment"   is  any  beneficial   ownership  of  (including   stock,
partnership  interest or other securities) any Person,  or any loan,  advance or
capital contribution to any Person.

         "Lien" is a mortgage,  lien, deed of trust,  charge,  pledge,  security
interest or other encumbrance.

         "Loan Documents" are, collectively,  this Agreement, any note, or notes
or guaranties executed by Borrower or Guarantor, and any other present or future
agreement  between  Borrower  and/or for the benefit of Bank in connection  with
this Agreement, all as amended, extended or restated.

         "Material Adverse Change" is defined in Section 8.3.

         "Obligations" are debts,  principal,  interest, Bank Expenses and other
amounts Borrower owes Bank now or later,  including cash management services, if
any and including  interest  accruing  after  Insolvency  Proceedings  begin and
debts, liabilities, or obligations of Borrower assigned to Bank.

         "Permitted Indebtedness" is:

         (a) Borrower's  indebtedness  to Bank under this Agreement or any other
Loan Document;

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FY 2000                           IMATRON INC.                         FORM 10-K
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         (b)  Indebtedness  existing  on  the  Closing  Date  and  shown  on the
Schedule;

         (c) Subordinated Debt;

         (d) Indebtedness to trade creditors  incurred in the ordinary course of
business; and

         (e) Indebtedness secured by Permitted Liens.

         "Permitted Investments" are:

         (f) Investments shown on the Schedule and existing on the Closing Date;
and

         (g)  (i)  marketable  direct   obligations  issued  or  unconditionally
guaranteed  by the United  States or its agency or any State  maturing  within 1
year from its  acquisition,  (ii) commercial  paper maturing no more than 1 year
after its creation and having the highest  rating from either  Standard & Poor's
Corporation or Moody's Investors Service, Inc., and (iii) Bank's certificates of
deposit issued maturing no more than 1 year after issue.

         "Permitted Liens" are:

         (h) Liens  existing  on the Closing  Date and shown on the  Schedule or
arising under this Agreement or other Loan Documents;

         (i) Liens for taxes,  fees,  assessments or other government charges or
levies,  either not  delinquent  or being  contested in good faith and for which
Borrower maintains adequate reserves on its Books, if they have no priority over
any of Bank's security interests;

         (j) Purchase money Liens (i) on Equipment  acquired or held by Borrower
or its Subsidiaries incurred for financing the acquisition of the Equipment,  or
(ii)  existing  on  equipment  when  acquired,  if the Lien is  confined  to the
property and improvements and the proceeds of the equipment;

         (k)  Licenses  or  sublicenses   granted  in  the  ordinary  course  of
Borrower's business and any interest or title of a licensor or under any license
or sublicense;

         (l) Leases or subleases  granted in the ordinary  course of  Borrower's
business,  including in connection  with  Borrower's  leased  premises or leased
property;

         (m) Liens  incurred in the  extension,  renewal or  refinancing  of the
indebtedness  secured by Liens  described in (a) through (c), but any extension,
renewal or  replacement  Lien must be limited to the property  encumbered by the
existing Lien and the principal amount of the indebtedness may not increase.

         "Person" is any individual, sole proprietorship,  partnership,  limited
liability company,  joint venture,  company association,  trust,  unincorporated
organization, association, corporation, institution, public benefit corporation,
firm, joint stock company, estate, entity or government agency.

         "Prime Rate" is Bank's most recently announced "prime rate," even if it
is not Bank's lowest rate.

         "Quick  Assets"  is,  on  any  date,   the   Borrower's   consolidated,
unrestricted  cash,  cash  equivalents,   net  billed  accounts  receivable  and
investments  with  maturities  of fewer than 12 months  determined  according to
GAAP.

         "Responsible  Officer"  is each of the  Chief  Executive  Officer,  the
President, the Chief Financial Officer and the Controller of Borrower.

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         "Revolving Maturity Date" is February 21, 2002.

         "Schedule" is any attached schedule of exceptions.

         "Subordinated  Debt"  is debt  incurred  by  Borrower  subordinated  to
Borrower's  indebtedness  owed to Bank  and  which  is  reflected  in a  written
agreement  in a manner  and form  acceptable  to Bank  and  approved  by Bank in
writing.

         "Subsidiary"  is for any Person,  or any other business entity of which
more  than  50% of the  voting  stock  or  other  equity  interests  is owned or
controlled,  directly or indirectly,  by the Person or one or more Affiliates of
the Person.

         "Tangible Net Worth" is, on any date, the consolidated  total assets of
Borrower  and its  Subsidiaries  minus,  (i)  any  amounts  attributable  to (a)
goodwill,  (b) intangible  items such as unamortized  debt discount and expense,
patents,  trade and  service  marks  and  names,  copyrights  and  research  and
development  expenses  except  prepaid  expenses,  and (c)  reserves not already
deducted from assets, and (ii) Total Liabilities.

         "Total Liabilities" is on any day, obligations that should, under GAAP,
be classified as liabilities on Borrower's consolidated balance sheet, including
all Indebtedness,  and current portion Subordinated Debt allowed to be paid, but
excluding all other Subordinated Debt.

BORROWER:

IMATRON INCORPORATED

By:
    -------------------------------------------------

Title:
       ----------------------------------------------

BANK:

SILICON VALLEY BANK

By:
    -------------------------------------------------

Title:
       ----------------------------------------------

                                    EXHIBIT A

         The Collateral  consists of all of Borrower's right, title and interest
in and to the following:

         All goods and  equipment  now owned or hereafter  acquired,  including,
without limitation, all machinery,  fixtures, vehicles (including motor vehicles
and trailers),  and any interest in any of the foregoing,  and all  attachments,
accessories,   accessions,   replacements,    substitutions,    additions,   and
improvements to any of the foregoing, wherever located;

         All  inventory,  now owned or hereafter  acquired,  including,  without
limitation,  all  merchandise,  raw  materials,  parts,  supplies,  packing  and
shipping  materials,  work in  process  and  finished  products  including  such
inventory  as is  temporarily  out of  Borrower's  custody or  possession  or in
transit and including any returns upon any accounts or

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other  proceeds,  including  insurance  proceeds,  resulting  from  the  sale or
disposition of any of the foregoing and any documents of title  representing any
of the above;

         All  contract  rights and general  intangibles  now owned or  hereafter
acquired, including, without limitation,  goodwill,  trademarks,  service marks,
trade  styles,  trade  names,  patents,  patent  applications,  leases,  license
agreements,   franchise  agreements,   blueprints,  drawings,  purchase  orders,
customer lists, route lists, infringements,  claims, computer programs, computer
discs, computer tapes, literature,  reports, catalogs, design rights, income tax
refunds, payments of insurance and rights to payment of any kind;

         All now existing  and  hereafter  arising  accounts,  contract  rights,
royalties,  license rights and all other forms of obligations  owing to Borrower
arising out of the sale or lease of goods,  the  licensing of  technology or the
rendering of services by Borrower, whether or not earned by performance, and any
and all credit insurance,  guaranties,  and other security therefore, as well as
all merchandise returned to or reclaimed by Borrower;

         All  documents,   cash,   deposit  accounts,   securities,   securities
entitlements,   securities  accounts,  investment  property,  financial  assets,
letters of credit,  certificates  of deposit,  instruments and chattel paper now
owned or hereafter acquired and Borrower's Books relating to the foregoing;

         All copyright rights,  copyright applications,  copyright registrations
and like  protections in each work of authorship  and  derivative  work thereof,
whether  published or unpublished,  now owned or hereafter  acquired;  all trade
secret  rights,  including  all  rights  to  unpatented  inventions,   know-how,
operating manuals,  license rights and agreements and confidential  information,
now owned or hereafter  acquired;  all mask work or similar rights available for
the protection of  semiconductor  chips,  now owned or hereafter  acquired;  all
claims for damages by way of any past, present and future infringement of any of
the foregoing; and

         All Borrower's  Books relating to the foregoing and any and all claims,
rights and interests in any of the above and all  substitutions  for,  additions
and accessions to and proceeds thereof.

         Borrower  and  Bank  are  parties  to  that  certain   Negative  Pledge
Agreement,  dated on or about the date of this Agreement,  whereby Borrower,  in
connection  with  Bank's  loan or loans to  Borrower,  has  agreed,  among other
things, not to sell, transfer, assign, mortgage, pledge, lease, grant a security
interest  in, or  encumber  any of its  Intellectual  Property  (as  hereinafter
defined) without Bank's prior written consent.

         Notwithstanding  the foregoing,  the Collateral  shall not be deemed to
include any copyrights, copyright applications,  copyright registration and like
protection  in each work of authorship  and  derivative  work  thereof,  whether
published or unpublished,  now owned or hereafter acquired; any patents,  patent
applications and like protections,  including without limitation,  improvements,
divisions, continuation, renewals, reissues, extension and continuations-in-part
of the same; any trademarks,  service marks and applications therefore,  whether
registered  or not; any of the  goodwill of the  business of Borrower  connected
with and symbolized by such trademarks;  any trade secret rights,  including any
rights to unpatented inventions, know-how, operating manuals, license rights and
agreements and confidential information, now owner or hereafter acquired; or any
claims for damages by way of any past, present and future infringement of any of
the foregoing (collectively, the "Intellectual Property"), except the Collateral
shall  include the proceeds of all the  Intellectual  Property that are accounts
(i.e. accounts  receivable) of Borrower,  or general  intangibles  consisting of
rights to payment, and, in addition, if a judicial authority,  (including a U.S.
Bankruptcy Court) holds that a security interest in the underlying  Intellectual
Property is necessary to have a security  interest in such  accounts and general
intangibles of Borrower that are proceeds of the Intellectual Property, then the
Collateral shall  automatically,  and effective as of the Closing Date,  include
the Intellectual Property to the extent necessary to permit perfection of Bank's
security interest in such accounts and general  intangibles of Borrower that are
proceeds of the Intellectual Property.

================================================================================
                                      110
<PAGE>

FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

                                    EXHIBIT B

                   LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM

DEADLINE FOR SAME DAY PROCESSING IS 3:00 P.M., P.S.T.

TO: CENTRAL CLIENT SERVICE DIVISION        DATE:
                                                 ---------------------------

FAX#:  (408) 496-2426                      TIME:
                                                  ---------------------------

--------------------------------------------------------------------------------
FROM:    IMATRON INCORPORATED
     ---------------------------------------------------------------------------
                                    CLIENT NAME (BORROWER)

REQUESTED BY:
               -----------------------------------------------------------------
                                   AUTHORIZED SIGNER'S NAME

AUTHORIZED SIGNATURE:
                       ---------------------------------------------------------

PHONE NUMBER:
              ------------------------------------------------------------------

FROM ACCOUNT #                               TO ACCOUNT #
               -------------------------                  ----------------------

REQUESTED TRANSACTION TYPE                  REQUESTED DOLLAR AMOUNT

PRINCIPAL INCREASE (ADVANCE)                $
                                             -----------------------------------
PRINCIPAL PAYMENT (ONLY)                    $
                                             -----------------------------------
INTEREST PAYMENT (ONLY)                     $
                                             -----------------------------------
PRINCIPAL AND INTEREST (PAYMENT)            $
                                             -----------------------------------

OTHER INSTRUCTIONS:
                    ------------------------------------------------------------

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

All Borrower's representations and warranties in the Loan and Security Agreement
are true,  correct  and  complete  in all  material  respects on the date of the
telephone request for and Advance confirmed by this Borrowing  Certificate;  but
those  representations and warranties  expressly referring to another date shall
be true, correct and complete in all material respects as of that date.
BANK USE ONLY

TELEPHONE REQUEST:

The following  person is  authorized  to request the loan payment  transfer/loan
advance on the advance designated account and is known to me.

------------------------------                   -------------------------------
     Authorized Requester                                 Phone #

------------------------------                   -------------------------------
     Received By (Bank)                                   Phone #

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

================================================================================
                                      111
<PAGE>

FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

--------------------------------------------------------------------------------
                           Authorized Signature (Bank)
--------------------------------------------------------------------------------

================================================================================
                                      112
<PAGE>

<TABLE>
<CAPTION>
<S>                                                                             <C>                  <C>

FY 2000                                             IMATRON INC.                                          FORM 10-K
===================================================================================================================

                                                 EXHIBIT C

                                        BORROWING BASE CERTIFICATE

Borrower:       IMATRON INCORPORATED                  Bank:  Silicon Valley Bank
-------------------------------------------------------------------------------------------------------------------
                                                             3003 Tasman Drive
                                                             Santa Clara, CA 95054
Commitment Amount:         $7,000,000

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

ACCOUNTS RECEIVABLE
1.       Accounts Receivable Book Value as of  _____________                                         $
                                                                                                      -------------
2.       Additions (please explain on reverse)                                                       $
                                                                                                      -------------
3.       TOTAL ACCOUNTS RECEIVABLE                                                                   $
                                                                                                      -------------

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
4.       Amounts over 90 days (120 days*) due                                   $
                                                                                 ----------------
5.       Balance of 50% over 90 day accounts                                    $
                                                                                 ----------------
6.       Credit balances over 90 days                                           $
                                                                                 ----------------
7.       Concentration Limits                                                   $
                                                                                 ----------------
8.       Foreign Accounts                                                       $
                                                                                 ----------------
9.       Governmental Accounts                                                  $
                                                                                 ----------------
10.      Contra Accounts                                                        $
                                                                                 ----------------
11.      Promotion or Demo Accounts                                             $
                                                                                 ----------------
12.      Intercompany/Employee Accounts                                         $
                                                                                 ----------------
13.      Other (please explain on reverse)                                      $
                                                                                 ----------------
14.      TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                                                        $
                                                                                                      -------------
15.      Eligible Accounts (#3 minus #14)                                       $
                                                                                 ----------------
16.      LOAN VALUE OF ACCOUNTS (80% of #15)                                                         $
                                                                                                      -------------
*For scheduled leasing company accounts

FOREIGN ACCOUNTS RECEIVABLE
17.      Foreign Accounts Receivable
Supported by Letters of Credit Advised and Negotiated

by Bank Book Value as of ______________                                         $
                                                                                 ----------------

FOREIGN ACCOUNTS RECEIVABLE DEDUCTIONS
18.      Foreign Accounts Receivable
Supported by Letters of Credit Advised and Negotiated

by Bank Unpaid after 180 days                                                   $
                                                                                 ----------------
19.      Eligible Foreign Accounts (#17 minus #18)                              $
                                                                                 ----------------
20.      LOAN VALUE OF FOREIGN ACCOUNTS (100% of #19)                                                $
                                                                                                      -------------

BALANCES

21.      Maximum Loan Amount                                                    $
                                                                                 ----------------
22.      Total Funds Available [Lesser of #21 or (#16 plus #20)]                                     $
                                                                                                      -------------
23.      Present balance owing on Line of Credit                                $
                                                                                 ----------------
24.      Outstanding under Sublimits                                            $
                                                                                 ----------------
25.      RESERVE POSITION (#22 minus #23 and #24)                                                    $
                                                                                                      -------------

The undersigned  represents and warrants that this is true, complete and correct,  and that the information in this
Borrowing Base  Certificate  complies with the  representations  and warranties in the Loan and Security  Agreement
between the undersigned and Silicon Valley Bank.

===================================================================================================================
                                                        113
</TABLE>

<PAGE>

FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

COMMENTS:                                            ---------------------------
                                                     | BANK USE ONLY           |
                                                     | ---- --- ----           |
                                                     |                         |
                                                     | Rec'd By_______________ |
                                                     |          Auth. Signer   |
                                                     |                         |
                                                     | Date:__________________ |
                                                     | Verified:______________ |
                                                     |           Auth. Signer  |
                                                     |                         |
IMATRON INCORPORATED                                 | Date:__________________ |
                                                     |                         |
                                                     |                         |
By:                                                  |                         |
    -----------------------------                    |                         |
         Authorized Signer                           ---------------------------

================================================================================
                                       114
<PAGE>

FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

                                    EXHIBIT D

                             COMPLIANCE CERTIFICATE

TO:               SILICON VALLEY BANK
                  3003 Tasman Drive
                  Santa Clara, CA 95054

FROM:             IMATRON INCORPORATED

         The undersigned authorized officer of Imatron Incorporated ("Borrower")
certifies that under the terms and conditions of the Loan and Security Agreement
between  Borrower  and Bank  (the  "Agreement"),  (i)  Borrower  is in  complete
compliance  for the period ending  _______________  with all required  covenants
except  as noted  below  and  (ii) all  representations  and  warranties  in the
Agreement are true and correct in all material  respects on this date.  Attached
are the required documents  supporting the certification.  The Officer certifies
that  these are  prepared  in  accordance  with  Generally  Accepted  Accounting
Principles  (GAAP)  consistently  applied  from one period to the next except as
explained in an accompanying letter or footnotes.  The Officer acknowledges that
no  borrowings  may be  requested  at any  time or date  of  determination  that
Borrower is not in compliance  with any of the terms of the Agreement,  and that
compliance is determined not just at the date this certificate is delivered.
<TABLE>
         Please indicate  compliance  status by circling Yes/No under "Complies"
column.
<CAPTION>
------------------------------------------------------ ------------------------------------------- ----------------------------
Reporting Covenant                                     Required                                    Complies

------------------------------------------------------ ------------------------------------------- -------------- -------------
<S>                                                    <C>                                        <C>             <C>
------------------------------------------------------ ------------------------------------------- -------------- -------------
Annual (Audited)                                       FYE within 90 days                          Yes            No
------------------------------------------------------ ------------------------------------------- -------------- -------------
10-Q, 10-K,  8-K and Compliance Certificate            Within 5 days after filing with SEC         Yes            No
------------------------------------------------------ ------------------------------------------- -------------- -------------
A/R & A/P Agings                                       Monthly within 20 days                      Yes            No
------------------------------------------------------ ------------------------------------------- -------------- -------------
A/R Audit                                              Initial and Semi-Annual                     Yes            No
------------------------------------------------------ ------------------------------------------- -------------- -------------
Borrowing Base Certificate                             Monthly within 20 days                      Yes            No
---------------------------------------------------------- ------------------------------------- ---------------- -------------
Financial Covenant                                         Required                              Actual           Complies

---------------------------------------------------------- ------------------------------------- ---------------- ------ ------
Maintain minimum balances & investments                    50% of cash and cash equivalents      $                Yes    No
---------------------------------------------------------- ------------------------------------- ---------------- ------ ------
Maintain on a Quarterly Basis:
---------------------------------------------------------- ------------------------------------- ---------------- ------ ------
Minimum Quick Ratio (Adjusted)                             1.00:1.00                             _____:1.00       Yes    No
---------------------------------------------------------- ------------------------------------- ---------------- ------ ------
Maximum Debt/Tangible Net Worth   (Adjusted)               1.00:1.00                             _____:1.00       Yes    No
---------------------------------------------------------- ------------------------------------- ---------------- ------ ------
Profitability                                              $1.00                                 $                Yes    No
---------------------------------------------------------- ------------------------------------- ---------------- ------ ------
</TABLE>
                                           -------------------------------------
                                           |BANK USE ONLY                      |
Comments Regarding Exceptions:             |                                   |
See Attached.                              |Received by:______________________ |
                                           |            AUTHORIZED SIGHNER     |
                                           |                                   |
                                           |Date:_____________________________ |
                                           |                                   |
                                           |Verified:_________________________ |
                                           |           AUTHORIZED SIGHNER      |
                                           |                                   |
                                           |Date:_____________________________ |
                                           |                                   |
                                           |Compliance Status:        Yes  No  |
                                           -------------------------------------

================================================================================
                                      115
<PAGE>

FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

Sincerely,

IMATRON INCORPORATED

__________________________________
SIGNATURE

__________________________________
TITLE

__________________________________
DATE

================================================================================
                                      116
<PAGE>

FY 2000                           IMATRON INC.                         FORM 10-K
================================================================================

                         CORPORATE BORROWING RESOLUTION

Borrower: Imatron Incorporated                  Bank: Silicon Valley Bank
          389 Oyster Point Blvd.                      3003 Tasman Drive
          South San Francisco CA 94080                Santa Clara, CA 95054-1191

I, the Secretary or Assistant  Secretary of Imatron  Incorporated  ("Borrower"),
CERTIFY that Borrower is a corporation  existing  under the laws of the State of
New Jersey.  I certify that at a meeting of  Borrower's  Directors  (or by other
authorized corporate action) duly held the following resolutions were adopted.
<TABLE>
It is resolved that any one of the following  officers of Borrower,  whose name,
title and signature is below:
<CAPTION>
<S>                                      <C>                                      <C>
NAMES                                    POSITIONS                                ACTUAL SIGNATURES
-----                                    ---------                                -----------------

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

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

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

------------------------------------     ------------------------------------     ------------------------------------
</TABLE>

may act for Borrower and:

Borrow Money.  Borrow money from Silicon Valley Bank ("Bank").

Execute Loan Documents.  Execute any loan documents Bank requires.

Grant Security.  Grant Bank a security interest in any of Borrower's assets.

Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory
notes, or other  indebtedness in which Borrower has an interest and receive cash
or otherwise use the proceeds.

Letters of Credit.  Apply for letters of credit from Bank.

Foreign Exchange Contracts.  Execute spot or forward foreign exchange contracts.

Further Acts.  Designate  other  individuals to request  advances,  pay fees and
costs  and  execute  other  documents  or  agreements  (including  documents  or
agreement that waive  Borrowers  right to a jury trial) they think  necessary to
effectuate these Resolutions.

Further  resolved that all acts  authorized by these  Resolutions  and performed
before they were adopted are ratified.  These  Resolutions  remain in effect and
Bank may rely on them until Bank receives written notice of their revocation.

I certify that the persons listed above are Borrower's  officers with the titles
and signatures  shown following their names and that these  resolutions have not
been modified are currently effective. CERTIFIED TO AND ATTESTED BY:

X ______________________________________________
   *Secretary or Assistant Secretary

X ______________________________________________
*NOTE:  In case the Secretary or other  certifying  officer is designated by the
foregoing  resolutions as one of the signing  officers,  this resolution  should
also be signed by a second Officer or Director of Borrower

================================================================================
                                      117

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]