Document:

Exhibit 10.49

                              INTRAOP MEDICAL, INC.

October 29, 2008

Mr. Howard Solovei

Re:      Separation and General Release Agreement

Dear Howard:

This letter sets forth the terms of the separation and general release agreement
(the "Agreement") between you and Intraop Medical, Inc. (the "Company").

1.  Separation.  Your  last day of work  with the  Company  and your  employment
termination date will be October 31, 2008 (the "Separation  Date").  Between the
date  listed  above and the  Separation  Date,  you will  continue  to work on a
full-time basis, performing your regular and customary duties and all such other
duties that may be reasonably assigned to you. You will continue to abide by all
Company  policies and procedures for the remainder of your  employment  with the
Company.

2. Accrued Salary and Vacation. On the Separation Date, the Company will pay you
all accrued base salary and all accrued and unused  vacation  earned through the
Separation Date,  subject to standard payroll  deductions and withholdings.  You
are  entitled  to these  payments  regardless  of  whether  or not you sign this
Agreement.

3. Expense  Reimbursements.  Within five (5) business days after the  Separation
Date,  you agree to submit  to the  Company  your  final  expense  reimbursement
statement reflecting all remaining business expenses incurred by you through the
Separation Date for which you seek reimbursement. The Company will reimburse all
reasonable   documented  business  expenses  incurred  in  accordance  with  its
governing expense reimbursement policies and procedures.

4. Severance Benefits. This termination of your employment is a "separation from
service" (within the meaning of Treasury  Regulations Section  1.409A-1(h)).  In
exchange  for your  entering  into and  abiding by the terms of this  Agreement,
after the  Separation  Date,  the Company  will  provide you with the  severance
benefits described below.

     (a) Cash Severance.  The Company will pay you cash severance equal to up to
10 months of your last base  salary,  less  applicable  payroll  deductions  and
withholdings  (the  "Severance"),  subject  to offset as  described  below.  The
Severance will be paid in the form of continuing base salary  payments,  paid on
the  Company's  customary  payroll pay dates  starting on the first  practicable
payroll  pay date after the  Effective  Date (as defined in  paragraph  13 (ADEA
Waiver)  below).  On such first  payroll pay date,  the Company will pay you the
amount of the  Severance  that  would  have been paid to you on or prior to such
date in the ordinary course had the commencement of the payment of the Severance
not been delayed pending the  effectiveness of this Agreement,  with the balance
of the Severance  payable  thereafter on the Company's regular payroll schedule,
so that the  Severance is paid not later than the date that is the first regular
payroll pay date on or after August 31, 2009. The Severance  shall be reduced by
the  amount of any and all cash  compensation  paid or  payable  to you for work
performed (whether as a self-employed  person or as an employee or consultant of
any  person  or  entity)  during  the 10  month  period  immediately  after  the
Separation  Date (the  "Severance  Period").  You agree to notify the Company in
writing  (sent to the attention of the Company's  Chief  Executive  Officer (the
"CEO"))  no later  than five (5) days after you  commence  any work  engagements
during the Severance Period, including the amount of compensation payable to you
for such work.

     (b) Paid COBRA  Premiums.  To the extent  provided by the federal COBRA law
or, if applicable,  state  insurance  laws,  and by the Company's  current group
health  insurance  policies,  you will be eligible to continue your group health
insurance  benefits after the Separation Date at your own expense.  (Later,  you
may be able to convert to an  individual  policy  through  the  provider  of the
Company's health  insurance,  if you wish.) If you timely elect to continue your
group health insurance coverage pursuant to COBRA, as part of this Agreement and
as an  additional  severance  benefit,  the Company  will pay on your behalf the
COBRA  premiums  necessary to continue  your current  level of health  insurance
coverage (for yourself and any covered  dependents)  in effect until the earlier
of the last day of the Severance Period or until such earlier date as either (i)
you become eligible for health insurance benefits through a subsequent  employer
or (ii) you and your covered dependents cease to be eligible for COBRA coverage.
You agree to notify the Company in writing (sent to the attention of the CEO) no
later  than five (5) days  after you  become  eligible  for  benefits  through a
subsequent employer.

<PAGE>

     (c) Compliance  with Section 409A. It is intended that each  installment of
the  payments  and benefits  provided  for in this  paragraph 4 (the  "Severance
Benefits") is a separate  "payment" for purposes of Treasury  Regulation Section
1.409A-2(b)(2)(i).  For the avoidance of doubt,  it is intended that payments of
the  amounts  set forth in this  paragraph  4 satisfy,  to the  greatest  extent
possible,  the exemptions from the application of Section 409A (any state law of
similar  effect)  provided  under  Treasury   Regulations   1.409A-1(b)(4)   and
1.409A-1(b)(9).  However,  if the Company determines that the Severance Benefits
provided under this Agreement constitute  "deferred  compensation" under Section
409A and you are, on the termination of your service, a "specified  employee" of
the Company, as such term is defined in Section  409A(a)(2)(B)(i) of the Code (a
"Specified  Employee"),  then,  solely  to the  extent  necessary  to avoid  the
incurrence of the adverse  personal tax  consequences  under  Section 409A,  the
timing of the Severance Benefits that constitute deferred  compensation shall be
delayed as follows:  (i) on the earlier to occur of (A) the date that is six (6)
months and one day after your "separation from service" (as such term is defined
in Treasury Regulation Section  1.409A-1(h)) or (B) the date of your death (such
earlier date, the "Delayed Initial Payment Date"), the Company (or the successor
entity thereto,  as applicable) shall (1) pay you a lump sum amount equal to the
sum of the Severance Benefits that you would otherwise have received through the
Delayed  Initial  Payment Date if the payment of the Severance  Benefits had not
been so delayed  pursuant to this  paragraph  4(c) and (2)  commence  paying the
balance of the Severance  Benefits in  accordance  with the  applicable  payment
schedules set forth in this Agreement.

5. Stock Options.  You were granted a total of 1,881,698 options (the "Options")
to purchase  shares of the  Company's  common  stock  pursuant to the  Company's
governing equity incentive plan (the "Plan").  The Options will cease vesting on
the  Separation  Date, at which time a total of 1,318,608  shares subject to the
Options will be fully vested and  exercisable.  The  remaining  unvested  shares
shall automatically lapse and terminate. All rights, duties and obligations with
respect to the Options  (including  your right to exercise any vested shares and
the  applicable  post-employment  exercise  period) shall be as set forth in the
Plan and in the written stock option agreements applicable to the Options.

6. Other  Compensation or Benefits.  You acknowledge  that,  except as expressly
provided in this  Agreement,  you will not receive any additional  compensation,
severance or benefits from the Company after the Separation Date.

7. Return of Company  Property.  By the Separation  Date, you agree to return to
the Company all Company  documents  (and all copies  thereof) and other  Company
property that you have had in your  possession at any time,  including,  but not
limited to, all Company  files,  notes,  drawings,  records,  business plans and
forecasts, financial information, specifications, computer-recorded information,
tangible  property  (including,  but not limited to,  computers),  credit cards,
entry cards, identification badges and keys; and, any materials of any kind that
contain or embody any  proprietary  or  confidential  information of the Company
(and  all  reproductions  thereof).  Your  compliance  with  the  terms  of this
paragraph is a condition precedent to receiving any severance benefits.

8. Proprietary Information.

     (a) Confidential  information.  Until the Separation Date and for all times
thereafter,  you agree to hold in confidence and not to disclose, use or publish
any of the Company's  confidential  and proprietary  information  (collectively,
"Confidential Information"),  except as reasonably necessary for the performance
of your duties through the Separation Date or as expressly authorized in writing
by the CEO. For purposes of this Agreement,  "Confidential Information" includes
all  confidential  knowledge,  data  or  information  related  to the  Company's
business or its actual or  demonstrably  anticipated  research  or  development,
including without limitation (i) trade secrets,  inventions,  ideas,  processes,
computer  source and object  code,  data,  formulae,  programs,  other  works of
authorship,  know-how,  improvements,  discoveries,  developments,  designs, and
techniques;  (ii) information regarding products,  services,  plans for research
and development,  marketing and business plans,  budgets,  financial statements,
contracts,  prices,  suppliers,  and customers;  (iii) information regarding the
skills and  compensation  of  Company's  employees,  contractors,  and any other
service  providers of Company;  (iv) the existence of any business  discussions,
negotiations,  or agreements  between  Company and any third party;  and (v) any
confidential or proprietary information Company has received from third parties.
You hereby assign to Company any rights you may have in any and all Confidential
Information and recognize that all  Confidential  Information  shall be the sole
and exclusive property of Company and its assigns.

     (b) Client Data. You specifically  acknowledge and agree that the Company's
client  lists,  as  well  as  client  names,  contact  information,   and  other
client-related   data   (collectively,   "Client  Data")  is  highly  sensitive,
confidential  and proprietary  information of the Company which may be used only
as necessary  for the  performance  of your  authorized  duties on behalf of the
Company and for no other purpose.  Accordingly,  you  acknowledge and agree that
you will not  disclose  to or use on  behalf  of  yourself  or any  third  party
(including any future employer) any Client Data.

     (c)  Assignment of  Inventions.  Except for  Inventions  that you can prove
qualify fully under the  provisions of California  Labor Code section 2870,  you
hereby assign to Company all your right,  title,  and interest in and to any and
all Inventions (and all Intellectual Property Rights with respect thereto) made,
conceived,  reduced to practice, or learned by you, either alone or with others,
(i)  during  the  period of your  employment  by  Company  or (ii) prior to your
employment  by  Company  and  intended  by you to be  used  by  the  Company  or
specifically  made,  conceived,  reduced to practice,  or learned by you for the
benefit of the Company.  For purposes of this  Agreement  "Invention"  means any
ideas, concepts,  information,  materials,  processes, data, programs, know-how,
improvements,  discoveries,  developments,  designs,  artwork,  formulae,  other
copyrightable works, and techniques and all Intellectual  Property Rights in any
of the items listed above,  and  "Intellectual  Property Rights" means all trade
secrets,   copyrights,   trademarks,   mask  work  rights,   patents  and  other
intellectual  property  rights  recognized  by the laws of any  jurisdiction  or
country.  Inventions  assigned  to the  Company  hereunder  are  referred  to as
"Company Inventions".

<PAGE>

     (d)  Assistance.  You agree to assist Company in every proper way to obtain
and enforce United States and foreign  Intellectual  Property Rights relating to
Company  Inventions  in all  countries.  If the Company is unable to secure your
signature on any document  needed in connection  with such purposes,  you hereby
irrevocably  designate and appoint the Company and its duly authorized  officers
and agents as your agent and attorney in fact, which appointment is coupled with
an interest, to act on your behalf to execute and file any such documents and to
do all other  lawfully  permitted  acts to further such  purposes  with the same
legal force and effect as if executed by you.

     (e) Other Agreements.  The terms set forth in this paragraph 8 (Proprietary
Information) shall be in addition to any other non-disclosure,  confidentiality,
proprietary  information,  and inventions  assignment agreements entered into by
you for the  benefit  of the  Company,  including  that  certain  Non-Disclosure
Agreement between you and the Company dated July 29, 2002 (the  "Confidentiality
Agreement");  provided,  however,  that in the event of any conflict between the
terms of such other  agreements and the terms of this Agreement,  this Agreement
shall be controlling.

9. Non-Interference.

     (a)  Non-Solicitation.  For the remainder of your employment and continuing
for 12 months after the  Separation  Date, you agree that you shall not directly
or  indirectly,  solicit,  induce or encourage  any Company  employee,  agent or
consultant to terminate his, her or its relationship with the Company.

     (b)  Non-Disruption.  For the remainder of your  employment  and continuing
after the Separation Date, you must not: (a) take any action to disrupt,  damage
or interfere  with the  Company's  contractual  relationships  with its clients,
employees,  consultants,  agents or  vendors,  or induce any person or entity to
breach any  contractual  obligation  owed to the  Company;  or (b) engage in any
unlawful or improper  activity to disrupt,  damage or interfere  with  Company's
business, operations or activities.

10. Notification. You understand and agree that the Company may communicate your
obligations  under  paragraph  8  (Proprietary   Information)  and  paragraph  9
(Non-Interference)  of this (and may  provide a copy of this  Agreement)  to any
future  employer  or other  third  party,  as the  Company  deems  necessary  or
appropriate  to protect its  interests.  You further  agree that,  if, within 18
months of the Separation  Date, you accept  employment  with any entity that, at
the time, is directly  competitive with the Company, you will notify the Company
of that fact in writing (sent to the  attention of the CEO),  including the name
and location of such new employer.  Nothing in this Agreement  shall prevent you
from  competing  with the Company or accepting an position  with a competitor of
the Company, subject to your continuing obligations hereunder.

11. Non-disparagement.  You and the Company (through its officers and directors)
agree not to disparage each other or the other's officers, directors, employees,
shareholders,  parents,  subsidiaries,  affiliates,  and  agents,  in any manner
likely to be  harmful  to his,  it or their  business,  business  reputation  or
personal reputation; provided that both parties may respond accurately and fully
to any  question,  inquiry or request  for  information  when  required by legal
process.

12. Release of Claims.

     (a) General  Release.  In exchange  for the  severance  benefits  and other
consideration  to be  provided  to you  under  this  Agreement  that you are not
otherwise  entitled to receive,  you hereby generally and completely release the
Company,  the  Company's  co-employer,  TriNet  Corporation,  and the  Company's
predecessors,  successors,  subsidiaries and affiliated entities  (collectively,
the  "Company  Parties")  and each of the  Company  Parties'  current and former
directors,  officers, employees,  shareholders,  partners, agents, attorneys and
assigns from any and all claims,  liabilities  and  obligations,  both known and
unknown,  that arise out of or are in any way related to events,  acts, conduct,
or  omissions  occurring  prior to your  signing  this  Agreement.  This general
release includes, but is not limited to: (i) all claims arising out of or in any
way related to your employment with the Company,  your activities as an employee
and/or  officer  of  the  Company,   and  the  termination  of  your  employment
relationship  with the Company;  (ii) all claims related to your compensation or
benefits from the Company, including salary, bonuses, commissions, vacation pay,
expense reimbursements, severance pay, fringe benefits, stock, stock options, or
any other  ownership  interests in the  Company;  (iii) all claims for breach of
contract, wrongful termination, and breach of the implied covenant of good faith
and fair dealing; (iv) all tort claims,  including claims for fraud, defamation,
emotional  distress,  and discharge in violation of public  policy;  and (v) all
federal, state, and local statutory claims, including claims for discrimination,
harassment,  retaliation,  attorneys'  fees,  or other claims  arising under the
federal  Civil  Rights Act of 1964 (as  amended),  the  federal  Americans  with
Disabilities  Act of 1990, the federal Age  Discrimination  in Employment Act of
1967 (as amended)  ("ADEA"),  the California Fair Employment and Housing Act (as
amended), and the California Labor Code.

<PAGE>

     (b) Exceptions.  Notwithstanding the foregoing,  you are not releasing: (i)
any rights you have under this  Agreement;  (ii) any rights  that you have to be
indemnified  arising under  applicable law, the certificate of  incorporation or
by-laws (or similar constituent  documents of the Company),  any indemnification
agreement between you and the Company, or any directors' and officers' liability
insurance policy of the Company;  or (iii) any claim that cannot be waived under
applicable  state or federal law.  Nothing in this  Agreement  shall prevent you
from filing,  cooperating  with, or participating  in any proceeding  before the
Equal  Employment  Opportunity  Commission,  the  Department  of  Labor,  or the
California   Department  of  Fair  Employment  and  Housing,   except  that  you
acknowledge  and agree  that you shall not  recover  any  monetary  benefits  in
connection  with any such claim,  charge or proceeding  with regard to any claim
released herein.

13. ADEA Waiver. You acknowledge that you are knowingly and voluntarily  waiving
and releasing any rights you may have under the ADEA ("ADEA  Waiver").  You also
acknowledge that the consideration  given for this ADEA Waiver is in addition to
anything of value to which you were already  entitled.  You further  acknowledge
that you have been advised by this writing,  as required by the ADEA,  that: (a)
your ADEA  Waiver  does not apply to any rights or claims  that arise  after the
date you sign this  Agreement;  (b) you should consult with an attorney prior to
signing  this  Agreement;  (c)  you  have 21 days  to  consider  this  Agreement
(although you may choose to voluntarily sign it sooner);  (d) you have seven (7)
days  following  the date you sign  this  Agreement  to  revoke  it,  with  such
revocation to be effective  only if you deliver  written notice of revocation to
the Company within the seven (7) day period; and (e) the ADEA Waiver will not be
effective  until  the  date  upon  which  the  revocation   period  has  expired
unexercised,  which  will be the  eighth  day  after  you  sign  this  Agreement
("Effective Date").

14. Section 1542 Waiver.  YOU UNDERSTAND THAT THIS AGREEMENT  INCLUDES A RELEASE
OF ALL KNOWN AND UNKNOWN CLAIMS.  In giving the release  herein,  which includes
claims  which may be unknown to you at present,  you  acknowledge  that you have
read and understand  Section 1542 of the California  Civil Code,  which reads as
follows:

    "A 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."

You hereby  expressly  waive and  relinquish  all rights and benefits under that
section and any law of any other  jurisdiction of similar effect with respect to
your release of any unknown or unsuspected claims herein.

15. Representations.  You hereby represent that, except as expressly provided in
this  Agreement,  you have  been  paid all  compensation  owed and for all hours
worked for the  Company,  have  received  all the leave and leave  benefits  and
protections for which you are eligible, pursuant to the Family and Medical Leave
Act or otherwise, and have not suffered any on-the-job injury for which you have
not already filed a claim.

16. Arbitration. You and the Company agree that any and all disputes, claims, or
causes of action, in law or equity, arising from or relating to the enforcement,
breach,  performance,  execution or  interpretation  of this Agreement  shall be
resolved,  to the  fullest  extent  permitted  by law,  by  final,  binding  and
confidential arbitration in San Jose, California before a single arbitrator with
Judicial  Arbitration and Mediation  Services,  Inc.  ("JAMS") or its successor,
conducted pursuant to the JAMS Employment  Arbitration Rules and Procedures then
in effect. You and the Company  acknowledge that by agreeing to this arbitration
procedure,  both parties  waive the right to resolve any such dispute  through a
trial by jury or judge or administrative  proceeding.  The arbitrator shall: (a)
have the  authority  to compel  adequate  discovery  for the  resolution  of the
dispute and to award such relief as would otherwise be permitted by law; and (b)
issue a  written  arbitration  decision  including  the  arbitrator's  essential
findings and conclusions and a statement of the award.  The arbitrator  shall be
authorized  to award any or all remedies  that the parties  would be entitled to
seek in a court  of law.  The  Company  shall  pay all  JAMS'  arbitration  fees
(including arbitrator fees and administrative fees, but excluding attorneys fees
and costs incurred by you in connection  with the  arbitration).  Nothing herein
shall prevent either party from obtaining  injunctive relief in court to prevent
irreparable  harm pending the conclusion of any arbitration  brought pursuant to
this paragraph.

17.  General.  This  Agreement,  together  with the  Confidentiality  Agreement,
constitutes the complete, final and exclusive embodiment of the entire agreement
between you and the Company  with regard to this subject  matter.  It is entered
into without reliance on any promise or  representation,  written or oral, other
than  those  expressly  contained  herein,  and it  supersedes  any  other  such
promises,  warranties  or  representations,  including  those  set forth in your
Employment  Agreement with the Company dated  December 15, 2002.  This Agreement
may not be  modified or amended  except in a writing  signed by you and the CEO.
This Agreement  will bind the heirs,  personal  representatives,  successors and
assigns of both you and the  Company,  and inure to the  benefit of both you and
the Company,  their heirs,  successors  and  assigns.  If any  provision of this
Agreement is  determined  to be invalid or  unenforceable,  in whole or in part,
this determination will not affect any other provision of this Agreement and the
provision in question  will be modified by the  arbitrator  or court so as to be
rendered enforceable to the fullest extent permitted by law, consistent with the
intent of the parties.  This  Agreement will be deemed to have been entered into
and will be construed and enforced in  accordance  with the laws of the State of
California  as applied to  contracts  made and to be performed  entirely  within
California.

<PAGE>

To accept this  Agreement,  please sign below and return the original to me. You
have  21 days  from  the  date of this  Agreement  to  return  the  fully-signed
Agreement  to me. If we do not receive the  fully-signed  Agreement  from you by
that date, the offer of severance benefits contained herein shall  automatically
lapse and terminate.

We wish you good luck in your future endeavors.

Sincerely,

INTRAOP MEDICAL, INC.

By:  /s/ John Powers
  -------------------------------------
         John Powers, President and CEO

UNDERSTOOD AND AGREED:

/s/ Howard Solovei
--------------------------
Howard Solovei

10/29/2008
--------------------------
Date

1106792 v3/SFExhibit 10.50

                SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF CLAIMS

         This Settlement Agreement and Mutual Release of Claims ("Agreement"),
dated as of November 3, 2008 (the "Effective Date") is entered into between
C.D.S. Engineering, LLC, a limited liability company organized under the laws of
the State of California with a principal place of business at 40725 Encyclopedia
Circle, Fremont, CA 94538 ("CDS"), on behalf of itself, its representatives,
heirs, executors, administrators, trustees, predecessors (including, without
limitation, CDS Group Corporation, a Delaware corporation), successors,
affiliates (including, without limitation, C.D.S. Engineering, Inc., a
California corporation), subrogors, subrogees, lessees, lessors, grantees,
assignees, assignors, subsidiaries, agents, employees, servants, owners, alter
egos, attorneys, general partners, limited partners, and representatives on the
one hand, and Intraop Medical Corporation, a corporation organized under the
laws of the State of Delaware with a principal place of business at 570 Del Rey
Avenue, Sunnyvale, California, 94085 ("Intraop"), acting on behalf of itself,
its representatives, heirs, executors, administrators, trustees, predecessors,
successors, affiliates, subrogors, subrogees, lessees, lessors, grantees,
assignees, assignors, subsidiaries, parent corporations, agents, employees,
servants, officers, directors, members, shareholders, owners, alter egos,
attorneys, general partners, and limited partners, on the other hand. CDS and
Intraop are sometimes referred to hereinafter individually as a "Party," and
collectively, the "Parties".

WHEREAS:

     A. Intraop and CDS are parties to a Manufacturing  Services Agreement dated
September  5, 2002,  amended on  January 6, 2005,  further  amended on March 16,
2005, and further amended on April 28, 2005 (as amended, the "MSA"), under which
CDS agreed to manufacture for and sell to Intraop certain Products (as such term
is  defined  in the  MSA)  and  accessories  under  and  relating  to  Intraop's
proprietary  Mobetron trademark,  patents and associated  intellectual  property
rights, for which Intraop has granted CDS a limited manufacturing license.

     B.  Although  relating to the MSA, but to the extent they may be considered
separate  from the MSA,  Intraop  and CDS are also  parties to other  agreements
relating to  manufacturing  schedules  and sales prices for certain of Intraop's
Products, accessories and services, including without limitation a Memorandum of
Understanding  dated  January 5, 2005, as amended and restated on March 16, 2005
(as to any and all such  other  agreements  excluding  this  Agreement,  whether
written or oral, the "Other Agreements").

     C. In a letter to CDS dated  September  11,  2008,  Intraop  stated  claims
against  CDS based on a breach of one or more terms of the MSA and other  rights
under law and equity  (together  with any other  reserved  claims,  the "Intraop
Claims") including,  without limitation: i) incomplete Products and overpayments
amounting to $638,511.00 as of the date of such letter,  ii)  misrepresentations
of CDS relating to the foregoing,  iii) incorrect  charges and invoicing by CDS,
and iv) undelivered  Products for which Intraop has already submitted payment to
CDS (the "Intraop Property"). CDS disputes these claims.

                                   Page 1 of 9

<PAGE>

     D.  CDS  claims  that  it  holds  accounts  receivable  in  the  amount  of
$468,104.34  due and owing from Intraop under the MSA  (together  with any other
reserved  claims,  the "CDS Claims") which Intraop has disputed and continues to
dispute.

     E. The Parties wish to fully and finally  resolve their  respective  claims
and to terminate the MSA and the Other Agreements pursuant to this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained
herein, and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the Parties agree as follows:

     1.  Termination  of the  MSA.  The  MSA and  Other  Agreements  are  hereby
terminated by mutual agreement of the Parties,  without regard to section 8.4 of
the MSA. Other than as set forth in this Agreement, there shall be no continuing
obligations  under  the MSA or Other  Agreements  by  either  Party to the other
including any obligations arising from the provision of Products pursuant to the
MSA.

     2. No Remaining  Detention of Intraop Property.  CDS agrees that CDS has no
property interest in the Intraop Property described on Attachment A. CDS further
agrees that such Intraop Property has been fully paid by Intraop and is owned by
Intraop.  CDS  agrees  that as of the  Effective  Date,  it shall  provide  full
cooperation  and assistance to Intraop to allow Intraop to collect any remaining
Intraop Property in the possession of CDS. Intraop's tender of the First Payment
(as  defined  in  paragraph  4 hereof)  is made only upon  Intraop  taking  full
possession of all such Intraop Property.

     3. Delivery of Components/Database and History Documents. The Parties agree
that the items  described on  Attachment B represent  the total service stock in
CDS' possession, including excess and obsolete inventory, of Components (as such
term is defined in the MSA) under  Section 4.2 of the MSA. On and subject to the
terms and conditions of this  Agreement,  Intraop agrees to purchase and acquire
from CDS and CDS hereby sells, transfers, assigns and conveys such Components to
Intraop and CDS agrees that it shall provide full  cooperation and assistance to
Intraop to allow  Intraop to collect such  Components  from CDS' facility as and
when  reasonably  requested  by Intraop.  Set forth on  Attachment C are certain
electronic database materials and product and vendor history  documentation (the
"Documentation")  that were  utilized by CDS in the  production of the Products.
CDS agrees  that as of the  Effective  Date,  CDS shall:  (i) make its  facility
available to Intraop  personnel and provide its  reasonable  assistance to allow
Intraop the  opportunity  to package the  Components  for drayage and removal by
Intraop  through  transportation  arranged  by Intraop and (iv)  cooperate  with
Intraop personnel to transfer the Documentation (to the best of CDS' ability) to
Intraop personnel.

     4.  Payment.  Intraop has paid CDS the sum of twenty five  thousand  United
States Dollars ($25,000) (the "First  Payment"),  the receipt of which is hereby
acknowledged.  Intraop  shall pay to CDS a second  payment  of  Twenty  Thousand
United States  Dollars  ($20,000)  (the "Second  Payment") on or prior to thirty
(30) days following the Effective Date.  Thereafter,  Intraop shall pay to CDS a
third payment of Twenty  Thousand  United States  Dollars  ($20,000) (the "Third
Payment")  on or prior to thirty  (30)  days  following  the date of the  Second
Payment.  Thereafter,  Intraop  shall  pay to CDS a  fourth  payment  of  Twenty
Thousand United States Dollars  ($20,000) (the "Fourth  Payment") on or prior to
thirty (30) days  following the date of the Third Payment.  Thereafter,  Intraop
shall pay to CDS a fourth  payment of Fifteen  Thousand  United  States  Dollars
($15,000)  (the "Fifth  Payment") on or prior to thirty (30) days  following the
date of the Fourth Payment.  Collectively,  the foregoing  payments totaling one
hundred thousand United States Dollars  ($100,000) are herein referred to as the
"Settlement Payment," and such Settlement Payment, in whole and in part, is made
in consideration of the compromise between the Parties in this Agreement.

                                  Page 2 of 9

<PAGE>

     5.  Assumption  of Open  Purchase  Orders.  On and subject to the terms and
conditions  of this  Agreement,  CDS hereby  assigns all of its  interest in the
stand-alone open purchase orders listed on Attachment D ("Open Purchase Orders")
and Intraop agrees to assume and become  responsible  for any remaining  payment
obligation  for such Open Purchase  Orders.  CDS represents and warrants that no
other contractual  agreement was or remains in place with respect to the subject
matter of the Open Purchase  Orders other than as reflected in such  stand-alone
Open Purchase  Orders  themselves.  CDS shall respond to inquiries  from sellers
under such Open Purchase Orders to contact Intraop for delivery of any products,
materials and/or services under such Open Purchase Orders.

     6. Release of Claims between the CDS and Intraop.

          a. Except for claims arising out of the breach of this Agreement,  and
     upon its receipt of the full  Settlement  Payment,  CDS, for itself and its
     collective and respective agents, employees, officers, attorneys, sureties,
     insurers and other related entities,  including its predecessors (including
     without limitation,  CDS Group Corporation,  a Delaware  corporation),  and
     affiliates  (including,  without limitation,  C.D.S.  Engineering,  Inc., a
     California  corporation,  and as to all such  affiliates,  "CDS  Affiliated
     Parties"), does hereby release and forever discharge Intraop, its officers,
     employees,   attorneys,  sureties,  insurers  and  other  related  entities
     ("Intraop  Affiliated Parties") of and from any and all claims (monetary or
     otherwise),   debts,  liabilities,   liquidated  damages,  costs,  actions,
     judgments,  demands,  obligations,   contracts,  suits,  expenses,  losses,
     attorney's  fees,  damages  and  causes of  action  of any kind or  nature,
     including claims for indemnity or  contribution,  arising out of or related
     to the MSA or the Other  Agreements and the performance or  non-performance
     of the obligations of Intraop thereunder, directly or indirectly, which the
     CDS may now or  hereafter  have or claim to have  against  Intraop  and any
     Intraop Affiliated Party, including without limitation the CDS Claims. Upon
     its receipt of the full Settlement  Payment,  CDS, for itself and on behalf
     of the CDS Affiliated  Parties,  does hereby  acknowledge  that Intraop has
     performed all of its obligations,  including payment obligations,  pursuant
     to the MSA and Other  Agreements  and that CDS has been  fully paid for all
     services or property provided by CDS.

          b. Except for claims arising out of the breach of this Agreement,  and
     upon the receipt by CDS of the full Settlement Payment, Intraop, for and on
     behalf of itself and the Intraop  Affiliated  Parties,  does hereby release
     and forever  discharge CDS and the CDS  Affiliated  Parties of and from any
     and all claims  (monetary or  otherwise),  debts,  liabilities,  liquidated
     damages, costs, actions, judgments, demands, obligations, contracts, suits,
     expenses, losses, attorney's fees, damages and causes of action of any kind
     or nature,  including claims for indemnity or contribution,  arising out of
     or  related  to the MSA or the  Other  Agreements  and the  performance  or
     non-performance   of  the  obligations  of  CDS  thereunder,   directly  or
     indirectly,  which  Intraop  may now or  hereafter  have or  claim  to have
     against CDS, including without limitation the Intraop Claims.  Upon receipt
     by CDS of the full Settlement Payment, Intraop does hereby acknowledge that
     CDS has no remaining  obligations pursuant to the MSA and Other Agreements,
     including any obligations regarding latent defects or warranty obligations.

                                  Page 3 of 9

<PAGE>

     7.  Waiver of  California  Civil Code  section  1542.  In  addition  to the
specific and express  releases set forth herein,  each Party  acknowledges  that
there is a risk that,  subsequent  to the  execution of this  Agreement,  it may
incur, suffer or sustain injury, loss, damage, costs,  attorneys' fees, expenses
or any of these,  which are  directly  caused by or  connected  with the matters
referred to in paragraph 6, and which are unknown and  unanticipated at the time
this  Agreement  is  signed,  and  which  are not  presently  capable  of  being
ascertained.  Each  Party  further  acknowledges  that there is a risk that such
damages as are known may become  more  serious  than any of them now  expects or
anticipates.  Nevertheless, each Party acknowledges that this Agreement has been
negotiated  and  agreed  upon in light of those  risks  and each of them  hereby
expressly waives all rights each may have in any such unknown claims and assumes
the risks that the facts and law  pertaining  to this  dispute  may change or be
different  than it is now  known to each  said  Party,  except  as  specifically
otherwise  provided  in this  Agreement.  In doing  so,  each  Party has had the
benefit of counsel,  and has been advised of,  understands,  and  knowingly  and
specifically  waives their rights under California Civil Code Section 1542 which
provides as follows:

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

     8.  Cooperation.  The Parties will execute all such further and  additional
documents as shall be reasonable,  convenient, necessary, advisable, appropriate
or desirable, and shall take or cause to be taken such other acts and actions as
may be reasonably  requested by any Party, to more fully effectuate or otherwise
carry out the provisions of this Agreement.

     9.   Representations   and   Warranties   of  CDS.  All  of  the  following
representations   and  warranties   made  by  CDS  on  behalf  of  itself,   its
representatives,   heirs,  executors,  administrators,   trustees,  predecessors
(including,  without limitation, CDS Group Corporation, a Delaware corporation),
successors, affiliates (including, without limitation, C.D.S. Engineering, Inc.,
a California corporation),  subrogors,  subrogees,  lessees, lessors,  grantees,
assignees, assignors,  subsidiaries,  agents, employees, servants, owners, alter
egos, attorneys,  general partners,  limited partners, and representatives,  are
deemed to be continuing  warranties and  representations,  and shall survive the
execution and delivery of this Agreement.  Such  representations  and warranties
and each of them form a  principal  inducement  for Intraop  entering  into this
Agreement, and are as follows:

          a. This  Agreement  has been duly executed and delivered by CDS and is
     the  valid  and  binding  agreement  of  CDS,  enforceable  against  CDS in
     accordance with its terms.  Specifically,  this Agreement has been or shall
     be  approved  by any and all  corporate  boards  of  directors,  management
     boards, shareholders, members, partners or principals of CDS whose approval
     is required to affect this  Agreement and bind CDS to the  obligations  set
     forth  herein.  CDS has the  ability  to enter into this  Agreement  and to
     consummate the transactions provided for herein. The person whose signature
     is set  forth  below  for  CDS:  (i) has full  authority  to  execute  this
     Agreement  on behalf  of CDS;  and (ii) such  person is acting  within  the
     course and scope of such authority in executing this Agreement;

                                  Page 4 of 9

<PAGE>

          b. No other  person is  required  to  consent to CDS's  execution  and
     delivery of this Agreement;

          c. The execution and delivery of this Agreement will not result in the
     breach of any contract, agreement, commitment,  indenture, mortgage, pledge
     agreement,  note, bond,  license,  or other instrument or any obligation to
     which CDS is now a party,  or by which any of the  properties  or assets of
     CDS may be bound or affected,  or constitute a violation by CDS of any law,
     rule or regulation,  of any administrative  agency or governmental body, or
     any order, writ, injunction or decree of any court,  administrative agency,
     or governmental body;

          d.  None  of the  representations  or  warranties  of CDS  under  this
     Agreement contains or will contain any untrue statement of a material fact,
     or omits or will omit any fact necessary to make the  statements  herein or
     therein not misleading;

          e. CDS is the sole legal and beneficial  owner of the claims  released
     pursuant  to  paragraphs  6 and 7, and no other  person or  entity  has any
     ownership or equitable interest therein. CDS has not heretofore assigned or
     transferred  or purported  to assign or transfer,  to any person or entity,
     any claims released by CDS in this Agreement;

          f. As to matters  relating to its  financial  condition  including any
     effect  thereon  relating  to this  Agreement:  A)  there  are no  cases or
     proceedings  pending under the United States  Bankruptcy  Code or any other
     similar state or federal  insolvency,  reorganization  or receivership laws
     involving any of CDS or of the CDS  Affiliated  Parties;  B) none of CDS or
     any of the CDS  Affiliated  Parties has any reason to seek relief under the
     United  States  Bankruptcy  Code or any  other  similar  state  or  federal
     insolvency, reorganization, receivership or similar laws; C) none of CDS or
     any of the CDS Affiliated  Parties has any present intention to seek relief
     in the future under the United States  Bankruptcy Code or any other similar
     state or federal insolvency, reorganization,  receivership or similar laws;
     D)  none of CDS or any of the  CDS  Affiliated  Parties  is  insolvent,  as
     defined in the United States  Bankruptcy  Code or any  applicable  state or
     federal statute,  nor will any of CDS or any of the CDS Affiliated  Parties
     be rendered  insolvent by the execution,  delivery and  performance of this
     Agreement; E) upon the performance of the obligations under this Agreement,
     each of CDS and any of the CDS  Affiliated  Parties will have the financial
     wherewithal to pay its debts as and when they become due; F) none of CDS or
     any of the CDS  Affiliated  Parties  intends to, nor believes that it will,
     incur  debts  beyond its ability to pay such debts as they  mature;  and G)
     none of CDS or any of the CDS  Affiliated  Parties  has now nor  will  have
     unreasonably  small capital to conduct its business  after the execution of
     this Agreement and the performance of its obligations under this Agreement;

          g. CDS has good and marketable title to the Components as described in
     Attachment  B,  free  and  clear  of any and all  mortgage,  pledge,  lien,
     encumbrance,  charge or other  security  interest  (as to any, a  "Security
     Interest"), or any restriction on transfer; and

          h.  Neither  CDS  nor  any  CDS  Affiliated  Party,  nor  any  of  its
     subcontractors,   vendors,   suppliers,   service   providers,   creditors,
     guarantors,  lenders,  bondholders,   equityholders,  directors,  officers,
     employees,  representatives,  agents or any other  third  party with claims
     against CDS or any CDS Affiliated  Party, has any Security  Interest or any
     claim  affecting  the Intraop  Property  described  in  Attachment A or any
     restriction on transfer thereof.

                                  Page 5 of 9

<PAGE>

     10.  Representations  and  Warranties  of  Intraop.  All of  the  following
representations  and  warranties  made by  Intraop  on  behalf  of  itself,  its
representatives,  heirs,  executors,  administrators,   trustees,  predecessors,
successors,   affiliates,  subrogors,  subrogees,  lessees,  lessors,  grantees,
assignees, assignors,  subsidiaries,  agents, employees, servants, owners, alter
egos, attorneys,  general partners,  limited partners, and representatives,  are
deemed to be continuing  warranties and  representations,  and shall survive the
execution and delivery of this Agreement.  Such  representations  and warranties
and  each  of them  form a  principal  inducement  for CDS  entering  into  this
Agreement, and are as follows:

          a. This  Agreement has been duly executed and delivered by Intraop and
     is the valid and binding agreement of Intraop,  enforceable against Intraop
     in  accordance  with its terms.  Specifically,  this  Agreement has been or
     shall be approved by any and all corporate boards of directors,  management
     boards,  shareholders,  members,  partners or  principals  of Intraop whose
     approval  is  required to affect  this  Agreement  and bind  Intraop to the
     obligations  set forth  herein.  Intraop has the ability to enter into this
     Agreement  and to  consummate  the  transactions  provided for herein.  The
     person  whose  signature  is set  forth  below  for  Intraop:  (i) has full
     authority  to execute this  Agreement  on behalf of Intraop;  and (ii) such
     person is acting within the course and scope of such authority in executing
     this Agreement;

          b. No other person is required to consent to Intraop's  execution  and
     delivery of this Agreement;

          c. The execution and delivery of this Agreement will not result in the
     breach of any contract, agreement, commitment,  indenture, mortgage, pledge
     agreement,  note, bond,  license,  or other instrument or any obligation to
     which Intraop is now a party,  or by which any of the  properties or assets
     of Intraop may be bound or affected,  or  constitute a violation by Intraop
     of  any  law,  rule  or  regulation,   of  any  administrative   agency  or
     governmental body, or any order,  writ,  injunction or decree of any court,
     administrative agency, or governmental body;

          d. None of the  representations  or  warranties  of Intraop under this
     Agreement contains or will contain any untrue statement of a material fact,
     or omits or will omit any fact necessary to make the  statements  herein or
     therein not misleading;

          e.  Intraop  is the sole  legal  and  beneficial  owner of the  claims
     released  pursuant to paragraphs 6 and 7, and no other person or entity has
     any ownership or equitable  interest  therein.  Intraop has not  heretofore
     assigned or transferred  or purported to assign or transfer,  to any person
     or entity, any claims released by Intraop in this Agreement; and

          f. As to matters  relating to its  financial  condition  including any
     effect  thereon  relating  to this  Agreement:  A)  there  are no  cases or
     proceedings  pending under the United States  Bankruptcy  Code or any other
     similar state or federal  insolvency,  reorganization  or receivership laws
     involving Intraop; B) Intraop has no reason to seek relief under the United
     States  Bankruptcy  Code or any other similar state or federal  insolvency,
     reorganization,  receivership  or similar  laws;  C) Intraop has no present
     intention to seek relief in the future under the United  States  Bankruptcy
     Code or any other  similar  state or  federal  insolvency,  reorganization,
     receivership  or similar laws; D) Intraop is not  insolvent,  as defined in
     the  United  States  Bankruptcy  Code or any  applicable  state or  federal
     statute, nor will Intraop be rendered insolvent by the execution,  delivery
     and  performance  of  this  Agreement;  E)  upon  the  performance  of  the
     obligations   under  this  Agreement,   Intraop  will  have  the  financial
     wherewithal  to pay its  debts as and when  they  become  due;  F)  Intraop
     neither  intends to, nor  believes  that it will,  incur  debts  beyond its
     ability to pay such debts as they  mature;  and G) Intraop  neither has now
     nor will have unreasonably  small capital to conduct its business after the
     execution of this Agreement and the  performance of its  obligations  under
     this Agreement.

                                  Page 6 of 9

<PAGE>

     11. Indemnity. Each Party hereto does hereby agree to defend, indemnify and
hold  harmless  the other  Party from and  against  any and all costs,  damages,
claims,  liabilities or expenses (including reasonable attorneys' fees), arising
from or resulting from any breach of the Party's representations,  warranties or
covenants under this Agreement.

     12. Costs and Expenses.  Each party shall bear its own fees,  costs and any
other expenses  (including  attorney's fees or consultant's fees) relating to or
incurred in connection  with this  Agreement or the  negotiations  leading up to
this Agreement.

     13. No Admission of Liability.  This  Agreement  does not  constitute,  nor
shall it be construed  as, an admission by either Party of the truth or validity
of any real or potential  claims,  or any  defenses,  asserted or which could be
asserted by either of the Parties.

     14. Successors and Assigns.  This Agreement and the obligations  undertaken
herein shall be binding  upon and shall inure to the benefit of the  successors,
or assigns, or each of the Parties hereto, including their respective Affiliated
Parties,  and  each  of  them,  and  all  other  persons,  firms,  corporations,
associations, partnerships, or other entities whenever the context so permits.

     15. Reinstatement of Intraop Claims.  Subject to applicable law, should any
form of state or federal  insolvency or bankruptcy  proceedings be instituted at
any time  involving  CDS or any of the CDS  Affiliated  Parties,  as a result of
which, Intraop is compelled to disgorge all or a portion of the Intraop Property
and/or  Components  described  respectively in Attachments A and B, then in that
event,  the release set forth in paragraphs 6 and 7 of this  Agreement  shall be
void ab initio,  and Intraop  shall be entitled to assert the full amount of any
and all Intraop  Claims which it may have against CDS,  increased by any portion
of the Settlement  Payment  actually paid to CDS under this  Agreement,  in such
state or federal proceedings. In the event the foregoing sentence is adjudicated
to be invalid, void or unenforceable for any reason whatsoever,  Intraop and CDS
agree that,  notwithstanding any provision of this Agreement to the contrary, at
the option of Intraop,  its rights,  obligations and interests existing prior to
the date of this Agreement, including without limitation relating to the Intraop
Claims, shall be reinstated to the extent that a court of competent jurisdiction
shall determine that (1) the transfer of any of the Intraop  Property and/or the
Components, described respectively in Attachments A and B hereto, was a voidable
preferential  transfer or a fraudulent transfer or a fraudulent conveyance under
state or federal law or (2) for any other  reason,  such  transfer is rescinded,
deemed to be  rescinded or an amount is  determined  to be payable by Intraop by
virtue thereof to CDS or its representatives,  successors,  bankruptcy estate or
federal or state receiver. For avoidance of doubt, the invalidation, declaration
of fraudulent  conveyance or preferential  transfer,  set aside,  requirement of
return or repayment to a trustee,  receiver,  debtor-in-possession  or any other
party under any bankruptcy law, state or federal, common law or equitable cause,
relating to the Intraop  Property and/or  Components  described in Attachments A
and B  respectively,  shall be a material  breach of this  Agreement  by CDS, in
which case Intraop shall have no  obligation  to make any  remaining  Settlement
Payment,  and Intraop  shall have a right to pursue its  remedies  under law and
equity for any and all Intraop Claims  reinstated  hereunder,  together with any
portion of the  Settlement  Payment  already paid, as provided in this paragraph
15.

                                  Page 7 of 9

<PAGE>

     16.  Injunctive  Relief.  Because any breach or  threatened  breach of this
Agreement by either Party would result in  continuing  material and  irreparable
harm to the other Party,  and because it would be  impossible  to establish  the
full monetary value of such damage, either Party shall be entitled to injunctive
relief in its discretion,  in the event of a breach or threatened breach of this
Agreement by the other Party or any member thereof.  Injunctive  relief shall be
in addition to any other remedy that may be available to either Party.

     17. Choice of Law. This  Agreement is made and entered into in the State of
California, and this Agreement and all rights, remedies, or obligations provided
for herein,  shall be construed and enforced in accordance  with the laws of the
State of California, without reference to the choice of law principles thereof.

     18.  Integration.  This  Agreement  contains the entire  understanding  and
agreement  between the Parties  hereto with  respect to the matters  referred to
herein. No other  representations,  covenants,  undertakings,  or other prior or
contemporaneous  agreement, oral or written,  respecting such matters, which are
not  specifically  incorporated  herein,  shall be deemed in any way to exist or
bind either of the Parties hereto.

     19.  Modification.  This  Agreement  shall  not be  modified  by  any  oral
representation  made  before  or after  the  execution  of this  Agreement.  All
modifications must be in writing and signed by the Parties, and each of them.

     20. No  Representations  --  Independent  Advice from Counsel.  The Parties
hereto,  and  each  of  them,   acknowledge  that  this  Agreement  is  executed
voluntarily by each of them,  without any duress or undue  influence on the part
of or on behalf of any of them. Each Party hereto further  acknowledges  that it
has been  represented in the  negotiations  for, and in the  performance of, the
Agreement by counsel of its own choice that each has read the  Agreement and had
it fully explained to each by such counsel,  and that each is fully aware of the
contents of the Agreement and its legal effect. Each of the undersigned has read
the foregoing  agreement and has consulted with its  attorney(s)  concerning its
contents and consequences.

     21. Joint  Preparation of this  Agreement.  The drafting and negotiating of
this  Agreement  has been  participated  in by each of the Parties  and/or their
counsel,  and for all  purposes,  this  Agreement  was  drafted  jointly by both
Parties.

     22. Attorney's Fees. If any legal action or other legal proceeding relating
to this Agreement or any of the  transactions  contemplated by this Agreement or
the  enforcement  of  any  provision  of  any of  this  Agreement  or any of the
transactions contemplated by this Agreement is brought against any Party hereto,
the prevailing  party shall be entitled to recover  reasonable  attorneys' fees,
costs and disbursements (in addition to any other relief to which the prevailing
party may be entitled).

                                  Page 8 of 9

<PAGE>

     23.   Counterparts.   This  Agreement  may  be  executed  in  one  or  more
counterparts,  each of which shall be deemed an original if fully  executed,  as
shall  photocopies of any such  counterparts,  and all of which shall constitute
one and the same  instrument.  Facsimile  copies of signatures to this Agreement
shall be deemed an original signature.

     24.  Waiver.  No  breach  of any  portion,  provision  or any  part of this
Agreement can be waived  unless it is done in writing.  Waiver of any one breach
shall not be  deemed  to be a waiver  of any  other  breach of the same or other
portion, provisions, or part of this Agreement.

     25. Severability. If one or more provisions of this Agreement are held by a
court of competent  jurisdiction to be  unenforceable  under applicable law, the
court shall modify the  unenforceable  term(s) to the least extent  necessary to
render the  term(s)  enforceable.  In the event the court is unable to so modify
the unenforceable term(s), the Parties agree to renegotiate such provision(s) in
good faith so as to become  enforceable  while  hewing as closely as possible to
the  original  intent.  In the event that the  Parties  cannot  reach a mutually
agreeable and  enforceable  replacement  for such  provision(s),  then each such
provision or part thereof  shall be severed from the  remaining  provisions  and
parts of this Agreement and shall not affect the validity or  enforceability  of
such remaining provisions or parts of this Agreement.

     26. Captions/Headings. The titles, captions, and headings contained in this
Agreement are inserted only as a matter of convenience and for reference, and in
no way define,  limit,  extend,  or describe the scope of this  Agreement or the
intent of any portion, provision, or part of this Agreement.

     27.   Notices.   All   notices,   requests,   claims,   demands  and  other
communications  hereunder  shall be in writing  and shall be given (and shall be
deemed  to have been  duly  given  upon  receipt)  by  delivery  in  person,  by
facsimile,  by overnight  delivery using a  nationally-recognized  courier or by
certified mail, to each other Party at the addresses first set forth above.

     IN WITNESS  WHEREOF,  CDS AND INTRAOP have  executed  this  Settlement  and
Mutual Release Agreement, effective as of the date first above written.

INTRAOP MEDICAL CORPORATION               C.D.S. ENGINEERING, LLC

By:        /s/ J.K. Hullett               By:       /s/ Victor Smith
         ----------------------                ---------------------------

Title:       CFO                          By:       President
         ----------------------                ---------------------------

                                  Page 9 of 9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00151-of-00352.parquet"}]]