Document:

EXHIBIT 10.35

                 OFFICER AND DIRECTOR WARRANT PURCHASE AGREEMENT
                 -----------------------------------------------

         THIS OFFICER AND DIRECTOR WARRANT PURCHASE  AGREEMENT  ("Agreement") is
made  as of  the  17th  day  of  August,  2007  by  and  among  INTRAOP  MEDICAL
CORPORATION,  a Nevada  corporation (the  "Company"),  and the persons listed on
Exhibit  A  attached   hereto  (each  a   "Purchaser"   and   collectively   the
"Purchasers").

                                    Recitals

         A. The Company and the  Purchasers  have agreed that the Company  shall
issue and sell to the Purchasers at the First Closing (as defined below), for an
aggregate  purchase  price of  $92,000.00,  warrants to purchase an aggregate of
1,150,000 shares of the Company's Common Stock.

         B.  The  Company  and the  Purchasers  have  further  agreed  that  the
Purchasers  shall  exercise  such  warrants  in full at the Second  Closing  (as
defined below).

         C. This Agreement  shall be binding upon the Company and the Purchasers
only  upon  delivery  of the  signatures  pages  hereto by the  Company  and the
Purchasers.

                                    Agreement

         In  consideration of the mutual promises made herein and for other good
and  valuable  consideration,  the receipt and  sufficiency  of which are hereby
acknowledged, the parties hereto agree as follows:

         1. Definitions.  In addition to those terms defined above and elsewhere
in this Agreement, for the purposes of this Agreement, the following terms shall
have the meanings set forth below:

                  "First  Closing"  shall  have  the  meaning  set  forth in the
Purchase Agreement.

                  "Officer   and   Director    Warrants"   means   warrants   in
substantially the form attached hereto as Exhibit B.

                  "Officer and Director Warrant Shares " means the shares of the
Company's  Common  Stock  issuable  upon  exercise of the  Officer and  Director
Warrants.

                  "Purchase  Agreement"  means  the  Common  Stock  and  Warrant
Purchase  Agreement dated as of August 17, 2007 by and among the Company and the
other persons set forth on the schedule of purchasers attached thereto.

                  "Second  Closing"  shall  have the  meaning  set  forth in the
Purchase Agreement.

<PAGE>

                  "Securities"  means the Officer and  Director Warrants and the
Officer and Director Warrant Shares.

                  "Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.

         2. Purchase and Sale of the Officer and Director Warrants.

                  2.1 Officer and Director Warrants.  Upon the terms and subject
to the conditions set forth in this Agreement, at the First Closing, each of the
Purchasers  shall,  severally and not jointly,  purchase,  and the Company shall
sell and issue to the  Purchasers,  an  Officer  and  Director  Warrant  for the
purchase of that number of Officer and Director Warrant Shares set forth next to
such  Purchaser's  name on Exhibit A attached  hereto in  consideration  for the
purchase  price,  payable in cash,  set forth next to such  Purchaser's  name on
Exhibit A.

                  2.2  Exercise  of the  Officer and  Director  Warrants.  At or
within ten (10) days after the Second Closing,  each Purchaser shall exercise in
full the Officer and Director Warrant issued to such Purchaser.

         3.  Representations  and Warranties of the Company.  The Company hereby
represents and warrants to the Purchasers that:

                  3.1  Organization   and  Good  Standing.   The  Company  is  a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada and has all  requisite  corporate  power and authority to
carry on its business as now conducted and to own its properties.

                  3.2  Authorization.  The Company has full corporate  power and
authority  and has taken all  requisite  action on the part of the Company,  its
officers,  directors  and  stockholders  necessary  for (i)  the  authorization,
execution  and  delivery  of  this  Agreement,  (ii)  the  authorization  of the
performance  of  all  obligations  of  the  Company   hereunder  and  (iii)  the
authorization,  issuance,  sale and delivery of the  Securities,  subject in the
case of the Officer and  Director  Warrant  Shares to  stockholder  approval and
filing of an  amendment  to the  Company's  Amended  and  Restated  Articles  of
Incorporation  authorizing  an increase in the number of shares of Common  Stock
issuable  by  the  Company  to  500,000,000   (as  adjusted  for  stock  splits,
combinations  or other similar  transactions).  This Agreement  constitutes  the
legal,  valid and binding  obligation  of the Company,  enforceable  against the
Company  in  accordance  with its  terms,  subject  to  bankruptcy,  insolvency,
fraudulent  transfer,  reorganization,  moratorium  and similar  laws of general
applicability relating to or affecting creditors' rights generally.

                  3.3 Valid Issuance.  The Securities have been duly and validly
authorized.  The Officer and  Director  Warrant  Shares have been  reserved  for
issuance,  subject to  stockholder  approval  and filing of an  amendment to the
Company's Amended and Restated Articles of Incorporation authorizing an increase
in the number of shares of Common Stock  issuable by the Company to  500,000,000
(as adjusted for stock splits, combinations or other similar transactions), and,
upon issuance  pursuant to the Officer and Director  Warrants,  will be duly and
validly issued and fully paid and nonassessable.

                                       2
<PAGE>

                  3.4 Consents.  The execution,  delivery and performance by the
Company of this  Agreement  to which it is a party and the offer,  issuance  and
sale of the  Securities  requires no consent of,  action by or in respect of, or
filing with,  any person,  governmental  body,  agency,  or official  other than
filings that have been made pursuant to  applicable  state  securities  laws and
post-sale filings pursuant to applicable state and federal securities laws which
the Company undertakes to file within the applicable time periods.

                  3.5  Private  Placement.  Subject  to  the  accuracy  of  each
Purchaser's  representations  in  Section  4  hereof,  the offer and sale of the
Securities  to  the  Purchasers  as  contemplated  hereby  is  exempt  from  the
registration requirements of the Securities Act.

         4.  Representations  and  Warranties  of the  Purchasers.  Each  of the
Purchasers  hereby,  severally and not jointly,  represents  and warrants to the
Company that:

                  4.1 Enforceability.  This Agreement  constitutes the valid and
legally binding obligation of such Purchaser, enforceable against such Purchaser
in accordance  with its terms,  subject to  bankruptcy,  insolvency,  fraudulent
transfer, reorganization,  moratorium and similar laws of general applicability,
relating to or affecting creditors' rights generally.

                  4.2 Purchase  Entirely for Own Account.  The  Securities to be
received by such Purchaser  hereunder will be acquired for such  Purchaser's own
account,  not as  nominee  or  agent,  and  not  with a view  to the  resale  or
distribution  of any part thereof in violation of the  Securities  Act, and such
Purchaser has no present intention of selling, granting any participation in, or
otherwise distributing the same in violation of the Securities Act.

                  4.3 Investment Experience. Such Purchaser acknowledges that it
can bear the economic risk and complete loss of its investment in the Securities
and has such knowledge and  experience in financial or business  matters that it
is  capable  of  evaluating  the  merits  and  risks  of the  investment  in the
Securities contemplated hereby.

                  4.4  Disclosure  of  Information.  Such  Purchaser  has had an
opportunity to receive all  information  related to the Company  requested by it
and to ask  questions  of and receive  answers  from the Company  regarding  the
Company,  its  business  and the terms and  conditions  of the  offering  of the
Securities.

                  4.5 Restricted Securities. Such Purchaser understands that the
Securities are  characterized as "restricted  securities" under the U.S. federal
securities  laws  inasmuch  as they are being  acquired  from the  Company  in a
transaction  not  involving  a public  offering  and that  under  such  laws and
applicable  regulations such securities may be resold without registration under
the Securities Act only in certain limited circumstances.

                  4.6 Legends.  It is understood that, except as provided below,
certificates  evidencing  the  Securities  may bear the following or any similar
legend:

                           (a)  "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES  ACT"),
OR ANY STATE  SECURITIES  LAWS.  THE  SECURITIES  REPRESENTED  HEREBY MAY NOT BE
TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO
THE SECURITIES ACT, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K), OR
(III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY  SATISFACTORY TO
IT THAT SUCH  TRANSFER  MAY  LAWFULLY  BE MADE  WITHOUT  REGISTRATION  UNDER THE
SECURITIES ACT OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS."

                                       3
<PAGE>

                           (b)  If  required by the authorities of any state  in
connection with the issuance of sale of the  Securities,  the legend required by
such state authority.

                  4.7  Accredited  Investor.  Such  Purchaser is an  "accredited
investor" as defined in Rule 501(a) of Regulation D under the Securities Act.

                  4.8 No General  Solicitation.  Such Purchaser did not learn of
the  investment  in the  Securities  as a result of any  public  advertising  or
general solicitation.

         5. Miscellaneous.

                  5.1 Successors and Assigns. This Agreement may not be assigned
by a party  hereto  without  the prior  written  consent  of the  Company or the
Purchasers holding a majority of the Securities,  as applicable.  The provisions
of this  Agreement  shall  inure  to the  benefit  of and be  binding  upon  the
respective  permitted  successors  and assigns of the  parties.  Nothing in this
Agreement,  express or implied,  is intended to confer upon any party other than
the  parties  hereto or their  respective  successors  and  assigns  any rights,
remedies,  obligations,  or  liabilities  under or by reason of this  Agreement,
except as expressly provided in this Agreement.

                  5.2 Counterparts; Faxes. This Agreement may be executed in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.  This Agreement may
also be executed via facsimile or PDF, which shall be deemed an original.

                  5.3 Titles and  Subtitles.  The titles and  subtitles  used in
this  Agreement  are used for  convenience  only and are not to be considered in
construing or interpreting this Agreement.

                  5.4 Notices. Unless otherwise provided, any notice required or
permitted  under this  Agreement  shall be given in writing  and shall be deemed
effectively  given as hereinafter  described (i) if given by personal  delivery,
then such  notice  shall be deemed  given upon such  delivery,  (ii) if given by
facsimile  or  electronic  mail,  then such  notice  shall be deemed  given upon
receipt of  confirmation of complete  transmittal,  (iii) if given by mail, then
such notice shall be deemed given upon the earlier of (A) receipt of such notice
by the  recipient  or (B) three (3) days after such notice is deposited in first
class mail, postage prepaid, and (iv) if given by an internationally  recognized
overnight  air courier,  then such notice shall be deemed given one (1) Business
Day after delivery to such carrier.  All notices shall be addressed to the party
to be notified at the address as follows, or at such other address as such party
may designate by ten (10) days' advance written notice to the other party:

                                       4
<PAGE>

                           If to the Company:

                                   Intraop Medical Corporation
                                   570 Del Rey Avenue
                                   Sunnyvale, CA 94085
                                   Attention:  Chief Financial Officer
                                   Facsimile:  (734) 503-6529

                           With a copy to:

                                   Hanson, Bridgett, Marcus, Vlahos & Rudy, LLC
                                   425 Market Street, 26th Floor
                                   San Francisco, CA  94105
                                   Attention:  David M. Pike
                                   Facsimile: (415) 541-9366

                           If to the  Purchasers,  to the addresses on file with
the Company.

                  5.5 Expenses. The parties hereto shall pay their own costs and
expenses in connection herewith.

                  5.6 Amendments and Waivers.  Any term of this Agreement may be
amended and the  observance of any term of this  Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only with the  written  consent  of the  Company  and the  Purchasers  holding a
majority of the Securities.  Any amendment or waiver effected in accordance with
this  paragraph  shall be binding upon each holder of any  Securities  purchased
under this  Agreement at the time  outstanding,  each future  holder of all such
Securities and the Company.

                  5.7  Severability.  Any  provision of this  Agreement  that is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating the remaining  provisions  hereof but shall be interpreted as if it
were  written  so as to be  enforceable  to  the  maximum  extent  permitted  by
applicable law, and any such prohibition or unenforceability in any jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.  To the extent  permitted by  applicable  law, the parties  hereby
waive any  provision of law which  renders any  provision  hereof  prohibited or
unenforceable in any respect.

                  5.8 Entire Agreement. This Agreement,  including the exhibits,
constitute  the entire  agreement  among the parties  hereof with respect to the
subject  matter  hereof and  thereof  and  supersede  all prior  agreements  and
understandings,  both oral and written,  between the parties with respect to the
subject matter hereof and thereof.

                  5.9 Further Assurances.  The parties shall execute and deliver
all such further  instruments  and  documents and take all such other actions as
may reasonably be required to carry out the transactions contemplated hereby and
to evidence the fulfillment of the agreements herein contained.

                                       5
<PAGE>

                  5.10 Governing Law;  Consent to  Jurisdiction;  Waiver of Jury
Trial.  This Agreement  shall be governed by, and construed in accordance  with,
the internal laws of the State of Delaware  without  regard to the choice of law
principles  thereof.  Each of the  parties  hereto  irrevocably  submits  to the
exclusive jurisdiction of the courts of the State of California located in Santa
Clara County and the United States  District Court for the Northern  District of
California for the purpose of any suit, action,  proceeding or judgment relating
to or arising out of this Agreement and the  transactions  contemplated  hereby.
Service of process in connection with any such suit, action or proceeding may be
served on each party  hereto  anywhere  in the world by the same  methods as are
specified  for the giving of notices under this  Agreement.  Each of the parties
hereto  irrevocably  consents to the  jurisdiction of any such court in any such
suit,  action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or  proceeding  brought in such courts and  irrevocably  waives any claim
that any such  suit,  action or  proceeding  brought  in any such court has been
brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY  LITIGATION  WITH RESPECT TO THIS  AGREEMENT  AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

                            (Signature page follows)

                                       6
<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Officer and
Director Warrant Purchase Agreement as of the date first above written.

The Company:                           Intraop Medical Corporation

                                       By: /s/  Donald A. Goer
                                           -------------------------------------
                                           Name: Donald A. Goer
                                           Title: President and CEO

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Officer and Director
Warrant Purchase Agreement as of the date first above written.

The Purchasers:                        /s/ Keith Jacobsen
                                       -----------------------------------------
                                       (Signature)

                                       Keith Jacobsen
                                       -----------------------------------------
                                       (Print Name)

                                       /s/ M. Dean Whitney
                                       -----------------------------------------
                                       (Signature)

                                       M. Dean Whitney
                                       -----------------------------------------
                                       (Print Name)

                                       /s/ Stephen L. Kessler
                                       -----------------------------------------
                                       (Signature)

                                       Stephen L. Kessler
                                       -----------------------------------------
                                       (Print Name)

                                       /s/ John P. Matheu
                                       -----------------------------------------
                                       (Signature)

                                       John P. Matheu
                                       -----------------------------------------
                                       (Print Name)

                                       /s/ Thomas Cook
                                       -----------------------------------------
                                       (Signature)

                                       Thomas Cook
                                       -----------------------------------------
                                       (Print Name)

<PAGE>

                                    EXHIBIT A
                                    ---------

                             Officers and Directors
                             ----------------------

Name                     Number of Warrant Shares            Purchase Price
----                     ------------------------            --------------

Keith Jacobsen                    625,000                     $50,000.00

M. Dean Whitney                   125,000                     $10,000.00

Stephen L. Kessler                125,000                     $10,000.00

John P. Matheu                    125,000                     $10,000.00

Thomas Cook                       150,000                     $12,000.00

                             ----------------             ------------------
TOTAL:                          1,150,000                     $92,000.00

<PAGE>

                                    EXHIBIT B
                                    ---------

                      Form of Officer and Director Warrant
                      ------------------------------------EXHIBIT 10.36

      DEBENTURE CONVERSION AND PURCHASE AND WARRANT CANCELLATION AGREEMENT
      --------------------------------------------------------------------

         THIS  DEBENTURE   CONVERSION  AND  PURCHASE  AND  WARRANT  CANCELLATION
AGREEMENT  ("Agreement") is made as of the 17th day of August, 2007 by and among
INTRAOP MEDICAL CORPORATION,  a Nevada corporation (the "Company"),  the persons
listed on  Exhibit A  attached  hereto  (each a "Holder"  and  collectively  the
"Holders")  and the  persons  listed  on  Exhibit  B  attached  hereto  (each an
"Investor" and collectively the "Investors").

                                    Recitals

         A. The Holders hold 7% convertible debentures in an aggregate principal
amount of $6,400,000.

         B. The Holders desire to convert such  debentures  into an aggregate of
20,178,571 shares of the Company's Common Stock.

         C. The  Investors  wish to purchase  from the Holders,  and the Holders
wish to  sell  to the  Investors,  an  aggregate  of  10,178,571  shares  of the
Company's  Common Stock issued upon  conversion of such  debentures  immediately
following the First Closing (as defined  below) for an aggregate  purchase price
of $1,280,000.

         D. In  addition,  the Company  shall  issue to the Holders  warrants to
purchase an  aggregate of  21,656,663  shares of the  Company's  Common Stock in
consideration  for the cancellation of warrants to purchase the Company's Common
Stock currently held by them.

         E. This  Agreement  shall be binding upon the Company,  the Holders and
the Investors only upon delivery of the signatures  pages hereto by the Company,
the Holders and the Investors.

                                    Agreement

                  In  consideration  of the mutual  promises made herein and for
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

         1. Definitions.  In addition to those terms defined above and elsewhere
in this Agreement, for the purposes of this Agreement, the following terms shall
have the meanings set forth below:

                  "Company Warrants" mean the warrants to purchase the Company's
Common Stock listed on Exhibit C attached hereto.

<PAGE>

                  "First  Closing"  shall  have  the  meaning  set  forth in the
Purchase Agreement.

                  "Debentures" means the 7% convertible  debentures dated August
31,  2005,  October 25,  2005,  October 31, 2005 and  November 4, 2005 listed on
Exhibit A  attached  hereto in the  aggregate  outstanding  principal  amount of
$6,400,000.

                  "Debenture  Warrants"  means warrants to purchase an aggregate
of 21,130,689  shares of the Company's  Common Stock in  substantially  the form
attached hereto as Exhibit D.

                  "Debenture  Shares" means an aggregate of 20,178,571 shares of
the Company's Common Stock issuable upon conversion of the Debentures.

                  "Debenture  Warrant  Shares" means the shares of the Company's
Common Stock issuable upon exercise of the Debenture Warrants.

                  "Purchase  Agreement"  means  the  Common  Stock  and  Warrant
Purchase  Agreement dated as of August 17, 2007 by and among the Company and the
other persons set forth on the schedule of purchasers attached thereto.

                  "Second  Closing"  shall  have the  meaning  set  forth in the
Purchase Agreement.

                  "Securities"  means  the  Debenture   Shares,  the   Debenture
Warrants and the Debenture Warrant Shares.

                  "Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.

                  "Securities  Purchase Agreement" means the Securities Purchase
Agreement  dated as of August 31,  2005 by and among the Company and the Holders
named therein and the Securities Purchase Agreement dated as of October 25, 2005
by and among the Company and the Holders named therein, as applicable.

         2. Conversion of Debentures; Purchase of Debenture Shares; Cancellation
of Company Warrants and Issuance of Debenture Warrants.

                  2.1  Conversion of  Debentures.  Upon the terms and subject to
the  conditions  set forth in this  Agreement,  immediately  following the First
Closing,  each Holder hereby agrees to convert the Debenture held by such Holder
in accordance  with the terms thereof and the Company  agrees to deliver to such
Holder the number of  Debenture  Shares  required to be delivered to such Holder
pursuant  to the terms of such  Debenture  and as  specified  in the  Conversion
Notice(s) delivered to the Company,  which number, for convenience  purposes, is
also set forth across from such Holder's name on Exhibit A attached hereto. Upon
such  conversion,  the portion of the  Debentures  so  converted  shall cease to
represent  indebtedness of the Company as stated therein,  the sole right of the
Holder thereof with respect thereto shall be to receive the Debenture  Shares to
which such  Holder has become  entitled  pursuant  to the terms  thereof and the
Holder shall have no other rights  thereunder with respect  thereto  (including,
without limitation,  the right to receive accrued and unpaid interest thereunder
with respect  thereto).  To the extent that a Holder is unable to convert all of
its  Debenture by virtue of  application  of the  "blocker"  provision set forth
therein, such Holder shall convert the remaining portion of its Debenture on the
first  business  day on  which  such  conversion  may be  effected  in  full  in
compliance with the terms of such "blocker" provision. Upon such conversion, the
portion of such Debenture so converted shall cease to represent  indebtedness of
the  Company as stated  therein,  the sole  right of such  Holder  thereof  with
respect  thereto shall be to receive the  Debenture  Shares to which such Holder
has become entitled  pursuant to the terms thereof and such Holder shall have no
other rights thereunder with respect thereto (including, without limitation, the
right to receive accrued and unpaid interest  thereunder with respect  thereto).
The Company agrees that the initial conversion of the Debenture held by Magnetar
Capital Master Fund Ltd shall not occur until 83,737,299  shares of Common Stock
of the Company are issued and outstanding.

                                       2
<PAGE>

                  2.2  Purchase of  Debenture  Shares.  Simultaneously  with the
conversion  contemplated  by Section 2.1 above,  the Investors  shall  purchase,
severally and not jointly,  for an aggregate purchase price of $1,280,000 in the
respective  amounts set forth on Exhibit B attached  hereto from the Holders ten
million one hundred seventy eight thousand five hundred seventy one (10,178,571)
Debenture  Shares in the  respective  number of shares and  amounts set forth on
Exhibit  A  attached  hereto.  The  closing  for the  sale and  purchase  of the
Debenture Shares shall occur simultaneously with the conversion  contemplated by
Section 2.1 above. At the closing,  the Holders shall deliver  certificates  for
the Debenture Shares,  duly endorsed for transfer,  in consideration for payment
in immediately available funds by the Investors, and the Investors shall deliver
such funds to the Holders against such delivery of the Debenture Shares.

                  2.3 Cancellation of Company Warrants and Issuance of Debenture
Warrants.  At the closing,  each of the Holders shall deliver to the Company the
Company  Warrants  held by such  Holder in exchange  for a Debenture  Warrant to
purchase that number of Debenture  Warrant  Shares equal to the number of shares
of Common Stock  issuable  upon exercise of such Company  Warrant  multiplied by
2.261431.  At the closing,  the Company shall deliver such Debenture Warrants to
such Holder against such Holder's delivery of the Company Warrants.

                  2.4  Exercise of Debenture  Warrants.  Subject to the terms of
the Debenture  Warrants,  no later than ten (10) days after the Second  Closing,
each Holder of a Debenture Warrant shall exercise such warrant in full.

                  2.5  Release  of  Liabilities.  Except  with  respect  to  the
obligations set forth in this Agreement, upon the closing each Holder shall, for
itself and its legal  successors and assigns  release and forever  discharge the
Company and its stockholders,  partners, directors, officers, employees, agents,
attorneys, legal successors and assigns of and from any and all claims, demands,
damages, debts, liabilities, accounts, reckonings, obligations, costs, expenses,
liens,  actions and causes of action of every kind and nature  whether now known
or unknown,  suspected or unsuspected  which it either now has, owns or holds or
at any time before ever owned or held or could, shall or may in the future have,
own or hold  against  the  Company or such  stockholders,  partners,  directors,
officers,  employees, agents, attorneys, legal successors and assigns based upon
or arising out of any matter,  cause,  fact,  thing, act, or omission related to
the  Debentures  occurring  or  existing  at any  time up to and  including  the
effective date of this Agreement (collectively the "Released Matters"), provided
that Released Matters expressly exclude all matters arising out of or related to
gross negligence, willful misconduct, fraud or material violations of securities
laws.  It is the  intention of each Holder in executing  this  Agreement  and in
receiving a Debenture  Warrant that this Agreement  shall be effective as a full
and final accord and  satisfaction  and general release of and from all Released
Matters.  In furtherance of the  intentions  set forth in this  Agreement,  each
Holder  acknowledges that it is familiar with California Civil Code Section 1542
which provides as follows:

                                       3
<PAGE>

                  GENERAL  RELEASE  DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR
                  DOES NOT KNOW OR  SUSPECT  TO EXIST IN HIS OR HER FAVOR AT THE
                  TIME OF EXECUTING  THE  RELEASE,  WHICH IF KNOWN BY HIM OR HER
                  MUST HAVE  MATERIALLY  AFFECTED HIS OR HER SETTLEMENT WITH THE
                  DEBTOR.

         Each Holder waives and relinquishes any rights or benefits which it has
or may have under Section 1542 or any similar  provision of the law of any other
jurisdiction  to the full  extent  that it may  lawfully  waive its  rights  and
benefits  pertaining to the Released Matters.  Nothing contained in this Section
2.5 shall  release  the  Company  from any  obligations  under any  portion of a
Debenture  that has not been  converted  in full by a Holder at the  closing  by
virtue of  application  of the  blocker  provision  contained  therein,  and the
release  contained here shall be effective  with respect  thereto on the date on
which such  Debenture  is so converted  in full as  contemplated  by Section 2.1
above.

         3. Waiver of Default  under the  Debentures.  Each Holder hereby waives
any Event of Default arising under Section 8(a)(viii) of such Holder's Debenture
to the extent the transactions contemplated by the Purchase Agreement are deemed
to be a "Change of Control Transaction" as defined in the applicable  Securities
Purchase Agreement. This waiver shall not be deemed to be a continuing waiver in
the future or a waiver of any other  provision,  condition or requirement of the
Debentures

         4. Waiver of Participation  Right. Each of the Holders hereby waive the
provisions of Section 4.13 (Participation in Future Financing) of the Securities
Purchase  Agreement dated as of August 31, 2005 and Section 4.14  (Participation
in Future  Financing) of the Securities  Purchase  Agreement dated as of October
25, 2005 (as applicable)  with respect to the  transactions  contemplated by the
Purchase Agreement. This waiver shall not be deemed to be a continuing waiver in
the future or a waiver of any other  provision,  condition or requirement of the
applicable Securities Purchase Agreement.

         5.  Representations  and Warranties of the Company.  The Company hereby
represents and warrants to the Holders and the Investors that:

                  5.1  Organization   and  Good  Standing.   The  Company  is  a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada and has all  requisite  corporate  power and authority to
carry on its business as now conducted and to own its properties.

                  5.2  Authorization.  The Company has full corporate  power and
authority  and has taken all  requisite  action on the part of the Company,  its
officers,  directors  and  stockholders  necessary  for (i)  the  authorization,
execution  and  delivery  of  this  Agreement,  (ii)  the  authorization  of the
performance  of  all  obligations  of  the  Company   hereunder  and  (iii)  the
authorization,  issuance, and delivery of the Securities, subject in the case of
the Debenture Warrant Shares to stockholder  approval and filing of an amendment
to the Company's Amended and Restated  Articles of Incorporation  authorizing an
increase  in the number of shares of Common  Stock  issuable  by the  Company to
500,000,000  (as  adjusted  for  stock  splits,  combinations  or other  similar
transactions).   This  Agreement   constitutes  the  legal,  valid  and  binding
obligation of the Company,  enforceable  against the Company in accordance  with
its   terms,   subject   to   bankruptcy,   insolvency,   fraudulent   transfer,
reorganization, moratorium and similar laws of general applicability relating to
or affecting creditors' rights generally.

                                       4
<PAGE>

                  5.3 Valid Issuance.  The Securities have been duly and validly
authorized.  The  Debenture  Shares,  when  issued  pursuant to the terms of the
Debentures,  will be validly issued,  fully paid and nonassessable,  and will be
free of encumbrances and restrictions (other than those created by the Holders),
except for restrictions on transfer  imposed by applicable  securities laws. The
Debenture Warrant Shares have been reserved for issuance, subject to stockholder
approval  and filing of an  amendment  to the  Company's  Amended  and  Restated
Articles  of  Incorporation  authorizing  an increase in the number of shares of
Common  Stock  issuable by the Company to  500,000,000  (as  adjusted  for stock
splits, combinations or other similar transactions), and, upon issuance pursuant
to the Debenture  Warrants,  will be duly and validly  issued and fully paid and
nonassessable.

                  5.4 Consents.  The execution,  delivery and performance by the
Company of this  Agreement  and the offer,  issuance and sale of the  Securities
requires no consent of, action by or in respect of, or filing with,  any person,
governmental  body,  agency,  or official other than filings that have been made
pursuant to applicable state  securities laws and post-sale  filings pursuant to
applicable  state and federal  securities  laws which the Company  undertakes to
file within the applicable time periods.

                  5.5  Private  Placement.  Subject  to  the  accuracy  of  each
Holder's  representations in Section 6 hereof, the offer,  exchange and issuance
of the  Securities  to the  Holders as  contemplated  hereby is exempt  from the
registration requirements of the Securities Act.

                  5.6 Resale Registration. The resale of the Debenture Shares by
the Holders is as of the date hereof, and shall be as of the closing, covered by
an effective  Registration  Statement on Form SB-2 filed with the Securities and
Exchange Commission.

         6.  Representations  and  Warranties of the Holders and the  Investors.
Each of the  Holders  and  the  Investors  hereby,  severally  and not  jointly,
represents and warrants to the Company (as applicable) that:

                  6.1  Organization  and  Existence.  Such  Holder  is a validly
existing  corporation,  limited partnership or limited liability company and has
all requisite  corporate,  partnership  or limited  liability  company power and
authority  to perform  its  obligations  hereunder.  Such  Investor is a validly
existing  corporation,  limited partnership or limited liability company and has
all requisite  corporate,  partnership  or limited  liability  company power and
authority to perform its  obligations  hereunder  and to invest in the Debenture
Shares pursuant to this Agreement.

                                       5
<PAGE>

                  6.2 Authorization.  The execution, delivery and performance by
such Holder or Investor  (as the case may be) of this  Agreement  have been duly
authorized,  and this  Agreement  constitutes  the  valid  and  legally  binding
obligations of such Holder or Investor (as the case may be), enforceable against
such  Holder or  Investor  (as the case may be) in  accordance  with its  terms,
subject  to  bankruptcy,   insolvency,   fraudulent  transfer,   reorganization,
moratorium and similar laws of general  applicability,  relating to or affecting
creditors' rights generally.

                  6.3 Purchase Entirely for Own Account.  The Debenture Warrants
and the Debenture Warrant Shares to be received by such Holder hereunder will be
acquired for such Holder's own account,  not as nominee or agent, and not with a
view to the  resale or  distribution  of any part  thereof in  violation  of the
Securities  Act, and such Holder has no present  intention of selling,  granting
any  participation  in, or otherwise  distributing  the same in violation of the
Securities Act.

                  6.4  Investment  Experience.  Such Holder or Investor  (as the
case may be)  acknowledges  that it can bear the economic risk and complete loss
of its  acquisition  of the  Securities and has such knowledge and experience in
financial or business  matters that it is capable of  evaluating  the merits and
risks of the acquisition of the Securities  contemplated  hereby.  Such Investor
has conducted its own due diligence with respect to the Company and its purchase
of the Debentures Shares, each to such Investor's satisfaction.

                  6.5 Disclosure of Information. Such Holder or Investor (as the
case may be) has had an  opportunity to receive all  information  related to the
Company  requested by it and to ask  questions  of and receive  answers from the
Company regarding the Company,  its business and the terms and conditions of the
Securities.

                  6.6 Restricted  Securities.  Such Holder  understands that the
Debenture  Warrants and the Debenture Warrant Shares (if at the time of issuance
are not covered by an effective  registration statement or are not then eligible
for sale pursuant to Rule 144(k) under the Securities Act) are  characterized as
"restricted  securities" under the U.S. federal securities laws inasmuch as they
are being  acquired  from the Company in a  transaction  not  involving a public
offering and that under such laws and applicable regulations such securities may
be resold without  registration under the Securities Act only in certain limited
circumstances.

                  6.7 Legends.  Such Holder understands that, except as provided
below,  certificates evidencing the Debenture Warrants and the Debenture Warrant
Shares may bear the following or any similar legend:

                           6.7.1   "THE SECURITIES REPRESENTED HEREBY  HAVE  NOT
BEEN  REGISTERED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE  "SECURITIES
ACT"), OR ANY STATE SECURITIES LAWS. THE SECURITIES  REPRESENTED  HEREBY MAY NOT
BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT
TO THE SECURITIES ACT, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K),
OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY  SATISFACTORY
TO IT THAT SUCH  TRANSFER MAY LAWFULLY BE MADE  WITHOUT  REGISTRATION  UNDER THE
SECURITIES ACT OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS."

                                       6
<PAGE>

                           6.7.2  If  required by  the  authorities of any state
in  connection  with  the  issuance  or sale of the  Debenture  Warrants  or the
Debenture Warrant Shares, the legend required by such state authority.

                  6.8  Accredited  Investor.  Such  Holder  or  Investor  is  an
"accredited  investor"  as  defined  in Rule  501(a) of  Regulation  D under the
Securities Act.

                  6.9 No General  Solicitation.  Such Holder or Investor did not
learn  of  the  transaction  contemplated  hereby  as a  result  of  any  public
advertising or general solicitation by the Company.

         7.   Representations  and  Warranties  of  the  Holders.   Each  Holder
represents and warrants to the Investors  that, as of the closing,  it will have
good and valid title to the Debenture Shares to be purchased by the Investors at
the  closing,  free and clear of all  liens,  encumbrances,  equities  or claims
(other than  restrictions  on transfer  imposed  hereunder  or under  applicable
securities laws).

         8. Miscellaneous.

                  8.1 Successors and Assigns. This Agreement may not be assigned
by a party hereto without the prior written consent of (i) the Company, (ii) the
Holders  holding a majority of the Securities  held by all Holders and (iii) the
Investors  holding  a  majority  of the  Securities  held by all  Investors,  as
applicable.  The provisions of this Agreement  shall inure to the benefit of and
be binding upon the respective  permitted successors and assigns of the parties.
Nothing in this  Agreement,  express or implied,  is intended to confer upon any
party other than the parties hereto or their  respective  successors and assigns
any rights,  remedies,  obligations,  or liabilities  under or by reason of this
Agreement, except as expressly provided in this Agreement.

                  8.2 Counterparts; Faxes. This Agreement may be executed in two
or more  counterparts,  each of which  shall be deemed an  original,  but all of
which together shall constitute one and the same instrument.  This Agreement may
also be executed via facsimile or PDF, which shall be deemed an original.

                  8.3 Titles and  Subtitles.  The titles and  subtitles  used in
this  Agreement  are used for  convenience  only and are not to be considered in
construing or interpreting this Agreement.

                  8.4 Notices. Unless otherwise provided, any notice required or
permitted  under this  Agreement  shall be given in writing  and shall be deemed
effectively  given as hereinafter  described (i) if given by personal  delivery,
then such  notice  shall be deemed  given upon such  delivery,  (ii) if given by
facsimile  or  electronic  mail,  then such  notice  shall be deemed  given upon
receipt of  confirmation of complete  transmittal,  (iii) if given by mail, then
such notice shall be deemed given upon the earlier of (A) receipt of such notice
by the  recipient  or (B) three (3) days after such notice is deposited in first
class mail, postage prepaid, and (iv) if given by an internationally  recognized
overnight  air courier,  then such notice shall be deemed given one (1) Business
Day after delivery to such carrier.  All notices shall be addressed to the party
to be notified at the address as follows, or at such other address as such party
may designate by ten (10) days' advance written notice to the other party:

                                       7
<PAGE>

                           If to the Company:

                                   Intraop Medical Corporation
                                   570 Del Rey Avenue
                                   Sunnyvale, CA  94085
                                   Attention: Chief Financial Officer
                                   Facsimile: (734) 503-6529

                           With a copy to:

                                   Hanson, Bridgett, Marcus, Vlahos & Rudy, LLC
                                   425 Market Street, 26th Floor
                                   San Francisco, CA  94105
                                   Attention:  David M. Pike
                                   Facsimile: (415) 541-9366

                           If  to  the  Holders  or to  the  Investors,  to  the
addresses on file with the Company.

                  8.5 Expenses. The parties hereto shall pay their own costs and
expenses in connection herewith.

                  8.6 Amendments and Waivers.  Any term of this Agreement may be
amended and the  observance of any term of this  Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively)
only with the written  consent of (i) the  Company,  (ii) the Holders  holding a
majority of the Securities held by all Holders and (iii) the Investors holding a
majority  of the  Securities  held by all  Investors.  Any  amendment  or waiver
effected in accordance  with this paragraph shall be binding upon each holder of
any  Securities  purchased  under this Agreement at the time  outstanding,  each
future holder of all such Securities and the Company.

                  8.7  Severability.  Any  provision of this  Agreement  that is
prohibited or unenforceable in any jurisdiction  shall, as to such jurisdiction,
be ineffective to the extent of such  prohibition  or  unenforceability  without
invalidating the remaining  provisions  hereof but shall be interpreted as if it
were  written  so as to be  enforceable  to  the  maximum  extent  permitted  by
applicable law, and any such prohibition or unenforceability in any jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.  To the extent  permitted by  applicable  law, the parties  hereby
waive any  provision of law which  renders any  provision  hereof  prohibited or
unenforceable in any respect.

                  8.8 Entire Agreement. This Agreement,  including the exhibits,
constitute  the entire  agreement  among the parties  hereof with respect to the
subject  matter  hereof and  thereof  and  supersede  all prior  agreements  and
understandings,  both oral and written,  between the parties with respect to the
subject matter hereof and thereof.

                                       8
<PAGE>

                  8.9 Further Assurances.  The parties shall execute and deliver
all such further  instruments  and  documents and take all such other actions as
may reasonably be required to carry out the transactions contemplated hereby and
to evidence the fulfillment of the agreements herein contained.

                  8.10 Governing Law;  Consent to  Jurisdiction;  Waiver of Jury
Trial.  This Agreement  shall be governed by, and construed in accordance  with,
the internal laws of the State of Delaware  without  regard to the choice of law
principles  thereof.  Each of the  parties  hereto  irrevocably  submits  to the
exclusive jurisdiction of the courts of the State of California located in Santa
Clara County and the United States  District Court for the Northern  District of
California for the purpose of any suit, action,  proceeding or judgment relating
to or arising out of this Agreement and the  transactions  contemplated  hereby.
Service of process in connection with any such suit, action or proceeding may be
served on each party  hereto  anywhere  in the world by the same  methods as are
specified  for the giving of notices under this  Agreement.  Each of the parties
hereto  irrevocably  consents to the  jurisdiction of any such court in any such
suit,  action or proceeding and to the laying of venue in such court. Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action or  proceeding  brought in such courts and  irrevocably  waives any claim
that any such  suit,  action or  proceeding  brought  in any such court has been
brought in an inconvenient forum. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO
REQUEST A TRIAL BY JURY IN ANY  LITIGATION  WITH RESPECT TO THIS  AGREEMENT  AND
REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

                  8.11  Independent  Nature of Each  Holder's  Obligations.  The
obligations  of each Holder under this  Agreement are several and not joint with
the  obligations  of any other Holder or any other party  hereto,  and no Holder
shall be  responsible in any way for the  performance of the  obligations of any
other Holder or any other party hereto under this Agreement.  Nothing  contained
herein,  and no action taken by any Holder pursuant  hereto,  shall be deemed to
constitute the Holders as a partnership,  an association, a joint venture or any
other kind of group or entity,  or create a presumption  that the Holders are in
any way  acting  in  concert  or as a  group  or  entity  with  respect  to such
obligations or any matters,  and the Company  acknowledges  that the Holders are
not  acting in concert or as a group  with  respect to such  obligations  or the
transactions  contemplated by this  Agreement.  Each Holder shall be entitled to
independently protect and enforce its rights, including, without limitation, the
rights  arising out of this  Agreement,  and it shall not be  necessary  for any
other  Holder to be joined as an  additional  party in any  proceeding  for such
purpose. The use of a single agreement with respect to the obligations contained
herein was solely in the control of the  Company,  not the action or decision of
any  Holder or any  Investor,  and was done  solely for the  convenience  of the
Company and not because it was  required or  requested to do so by any Holder or
any  Investor.  It is  expressly  understood  and  agreed  that  each  provision
contained in this  Agreement (i) between the Company and a Holder is between the
Company  and a Holder,  solely,  and not  between  the  Company  and the Holders
collectively  and not between and among Holders and (ii) between an Investor and
a Holder is between  such  Investor  and a Holder,  solely,  and not between the
Investors and the Holders collectively and not between and among Holders.

                                       9
<PAGE>

                            (Signature page follows)

                                       10
<PAGE>

                  IN WITNESS  WHEREOF,  the parties have executed this Debenture
Conversion and Purchase and Warrant Cancellation  Agreement as of the date first
above written.

The Company:                           INTRAOP MEDICAL CORPORATION

                                       By: /s/  Donald A. Goer
                                           -------------------------------------
                                           Name: Donald A. Goer
                                           Title: President and CEO

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Debenture Conversion
and Purchase and Warrant Cancellation Agreement.

Holders:   Name of Holder:                     Bushido Capital Master Fund L.P.

           Signature of Authorized Signer:     /s/ Ronald S. Dagar
                                               ---------------------------------

           Print Name of Authorized Signer:    Ronald S. Dagar
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    Director
                                               ---------------------------------

           Name of Holder:                     Gamma Opportunity Capital
                                               Partners LP Class A

           Signature of Authorized Signer:     /s/ Jonathan P. Knight
                                               ---------------------------------

           Print Name of Authorized Signer:    Jonathan P. Knight
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    As Agent
                                               ---------------------------------

           Name of Holder:                     Gamma Opportunity Capital
                                               Partners LP Class C

           Signature of Authorized Signer:     /s/ Jonathan P. Knight
                                               ---------------------------------

           Print Name of Authorized Signer:    Jonathan P. Knight
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    As Agent
                                               ---------------------------------

           Name of Holder:                     Crestview Capital Master, LLC

           Signature of Authorized Signer:     /s/ Robert Hoyt
                                               ---------------------------------

           Print Name of Authorized Signer:    Robert Hoyt
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    Manager
                                               ---------------------------------

<PAGE>

           Name of Holder:                     Dolphin Offshore Partners, L.P.

           Signature of Authorized Signer:     /s/ Peter E. Salas
                                               ---------------------------------

           Print Name of Authorized Signer:    Peter Salas
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    General Partner
                                               ---------------------------------

           Name of Holder:                     Alpha Capital Anstaht

           Signature of Authorized Signer:     /s/ Konrad Ackerman
                                               ---------------------------------

           Print Name of Authorized Signer:    Konrad Ackerman
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    Director
                                               ---------------------------------

           Name of Holder:                     Samir Financial, L.L.C..

           Signature of Authorized Signer:     /s/ Mohammed H. Mirza
                                               ---------------------------------

           Print Name of Authorized Signer:    Mohammed H. Mirza
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    Manager
                                               ---------------------------------

           Name of Holder:                     Magnetar Capital Master Fund,
                                               Ltd.

           Signature of Authorized Signer:     /s/ Doug Litowitz
                                               ---------------------------------

           Print Name of Authorized Signer:    Doug Litowitz
                                               ---------------------------------

           Print Title of Authorized Signer
           (if applicable):                    Counsel
                                               ---------------------------------

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Debenture Conversion
and Purchase and Warrant Cancellation Agreement.

Investors:                             LACUNA VENTURE FUND LLLP

                                       By:   Lacuna Ventures GP LLLP
                                             Its General Partner

                                       By:   Lacuna, LLC
                                             Its General Partner

                                       By: /s/ JK Hullett
                                           -------------------------------------
                                              JK Hullett, Managing Director

                                       LACUNA HEDGE FUND LLLP

                                       By:   Lacuna Hedge GP LLLP
                                             Its General Partner

                                       By:   Lacuna, LLC
                                             Its General Partner

                                       By: /s/ JK Hullett
                                           -------------------------------------
                                              JK Hullett, Managing Director

                        [OTHER SIGNATURE PAGES TO FOLLOW]

<PAGE>

                                       /s/ Robert W. Higgins
                                       -----------------------------------------
                                       Robert W. Higgins

                                       /s/ Oliver Janssen
                                       -----------------------------------------
                                       Oliver Janssen

                                       /s/ Victor Patrick Smith
                                       -----------------------------------------
                                       Victor Patrick Smith

                                       /s/ Andrew Jaffe
                                       -----------------------------------------
                                       Andrew Jaffe

                                       Dr. Clay and Mrs. Brenda  Cockerell,
                                       JTWROS

                                       By: /s/ Clay Cockerell
                                           -------------------------------------
                                              Clay Cockerell

                                       By: /s/ Brenda Cockerell
                                           -------------------------------------
                                              Brenda Cockerell

                                       /s/  Albert DeNittis
                                       -----------------------------------------
                                       Albert DeNittis

                                       PRECEPT CAPITAL MASTER FUND, G.P.

                                       By: /s/ D. Blair Baker
                                           -------------------------------------
                                       Name: D. Blair Baker
                                             -----------------------------------
                                       Its: Managing Member
                                            ------------------------------------

                                       ELLERPHUND VENTURES II, LP

                                       By: /s/ Ryan Ever
                                           -------------------------------------
                                       Name: Ryan Ever
                                             -----------------------------------
                                       Its: Managing Member
                                            ------------------------------------

                                       SANDOR CAPITAL MASTER FUND, L.P.

                                       By: /s/ John S. Lemak
                                           -------------------------------------
                                       Name: John S. Lemak
                                             -----------------------------------
                                       Its: Manager
                                            ------------------------------------

<PAGE>

                                       VMG HOLDINGS II, LLC

                                       By: /s/ Gregory S. Koonsman
                                           -------------------------------------
                                       Name: Gregory S. Koonsman
                                             -----------------------------------
                                       Its: Principal
                                            ------------------------------------

                                       THE JOE AND BONNIE ANN BROWN
                                       2000 LIVING TRUST

                                       By: /s/ Jose Gervais
                                           -------------------------------------
                                           Jose Gervais, Trustee

                                       E.U. CAPITAL VENTURE, INC.

                                       By: /s/ Hans Morkner
                                           -------------------------------------
                                       Name: Hans Morkner
                                             -----------------------------------
                                       Its: Managing Director
                                            ------------------------------------

<PAGE>

                                    EXHIBIT A
                                    ---------

                     Principal         Debenture                   Cash Received
                     ---------         ---------                   -------------
                     Amount of     Shares Received                  Upon Sale of
                     ---------     ---------------                  ------------
                    Outstanding          Upon          Debenture      Debenture
                    -----------          ----          ---------      ---------
Holder               Debenture        Conversion      Shares Sold      Shares
------               ---------        ----------      -----------      ------

Bushido Capital       850,000         3,035,714        1,707,589      $170,000
Master Fund L.P.

Gamma                 425,000         1,517,857          853,795        85,000
Opportunity
Capital
Partners LP
Class A

Gamma                 425,000         1,517,857          853,795        85,000
Opportunity
Capital
Partners LP
Class C

Samir                 500,000         1,250,000          468,750       100,000
Financial,
L.L.C.

Crestview           1,000,000         3,571,429        2,008,928       200,000
Capital Master,
LLC

Dolphin               750,000         2,678,571        1,506,696       150,000
Offshore
Partners, L.P.

Alpha Capital         450,000         1,607,143          904,018        90,000
Anstaht

Magnetar            2,000,000         4,376,722(1)     1,875,000       400,000
Capital Master
Fund, Ltd.
--------------------------------------------------------------------------------
Total:              6,400,000        19,555,293       10,178,571    $1,280,000

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

(1) In order to give proper effect to the  "blocker"  provision of the Debenture
and permit the greatest  conversion  possible in accordance  with such "blocker"
provision, the conversions contemplated shall occur as follows: $961,298.40 will
be  converted  at  closing in  accordance  with the terms of such  Debenture  as
contemplated  by  Section  2.1  for  2,403,246  Debenture  Shares.   Immediately
following  the  sale of the  1,875,000  Debenture  Shares  contemplated  by this
Agreement,  $789,390.40  will be converted in accordance  with the terms of such
Debenture as contemplated by for 1,973,476 Debenture Shares. $249,311.20 of such
Debenture will remain  outstanding  after the  conversions  contemplated by this
footnote until such Debenture is converted in accordance  with the terms thereof
as contemplated by the last sentence of Section 2.1.

<PAGE>

                                    EXHIBIT B
                                    ---------

                      Investors Purchasing Debenture Shares
                      -------------------------------------

                                             Number of Debenture
                                             -------------------
Name                                               Shares         Purchase Price
----                                               ------         --------------

Lacuna Venture Fund LLLP
c/o Lacuna LLC
1100 Spruce Street, Suite 202
Boulder, CO  80302                                3,047,477         $383,233.53

Lacuna Hedge Fund LLLP
c/o Lacuna LLC
1100 Spruce Street, Suite 202
Boulder, CO  80302                                2,407,506         $302,754.49

Ellerphund Ventures II, LP
c/o Ellerphund Capital LP
2616 Hibernia
Dallas, TX  75204                                 1,066,617          134,131.74

Sandor Capital Master Fund, L.P.
c/o Sandor Advisors LLC
2828 Routh Street, Suite 500
Dallas, TX  75201                                   761,869           95,808.38

Precept Capital Master Fund, G.P.
c/o Precept Capital Management
200 Crescent Center, Suite 1450
Dallas, TX  75201                                   761,869           95,808.38

VMG Holdings II, LLC
c/o VMG Health
Three Galleria Tower
13155 Noel Road, Suite 2400
Dallas, TX  75240                                   853,293          107,305.39

Oliver Janssen                                      304,748           38,323.35

The Joe and Bonnie Ann Brown 2000 Living Trust
c/o Jose Gervais
1616 Paseo Del Mar
Palos Verdes Estates, CA  90274                     228,561           28,742.51

Robert W Higgins                                    190,467           23,952.10

<PAGE>

Victor Patrick Smith
40725 Encyclopedia Circle
Fremont, CA  94538                                  152,374           19,161.68

Andrew Jaffe
c/o Naples Center for Dermatology
1015 Crosspointe Drive
Naples, FL  34110-0930                              152,374           19,161.68

Dr. Clay and Mrs. Brenda Cockerell, JTWROS
4312 Arcady Avenue
Dallas, TX  75205                                    38,093            4,790.42

E.U. Capital Venture, Inc.
[ADDRESS]                                           198,086           24,910.18

Albert DeNittis
c/o Radiation Oncology Dept.
The Lankenau Hospital
100 Lancaster Avenue
Wynnewood, PA  19096                                 15,237            1,916.17

TOTAL:                                           10,178,571       $1,280,000.00

<PAGE>

                                    EXHIBIT C
                                    ---------

                                Company Warrants
                                ----------------

                                                     8% January   7% Convertible
                                                     ----------   --------------
                                                      Debenture        Debenture
                                                      ---------        ---------
Investor                                               Warrants         Warrants
--------                                               --------         --------
Magnetar Capital Master Fund, Ltd.                            0        2,500,000
Crestview Capital Master LLC                            229,593        1,562,500
Bushido Capital Master Fund L.P.                        186,673        1,250,000
Dolphin Offshore Partners, L.P.                         137,754          937,500
Alpha Capital AG                                         91,836          625,000
Gamma Opportunity Capital Partners, Class A              91,836          625,000
Gamma Opportunity Capital Partners, Class C              91,836          625,000
Samir Financial, LLC                                          0          625,000
Totals                                                  829,528        8,750,000

<PAGE>

                                    EXHIBIT D
                                    ---------

                            Form of Debenture Warrant
                            -------------------------

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