Norwest Bank Minnesota,
National Association                                                  Term Note


$2,500,000.00                                                      June 1, 1995

FOR VALUE RECEIVED,  Aequitron Medical, Inc. (the "Borrower") promises to pay to
the order of Norwest Bank Minnesota,  National  Association (the "Bank"), at its
principal  office or such other address as the Bank or holder may designate from
time to time,  the principal sum of Two Million Five Hundred and 00/100  Dollars
($2,500,000.00),  or the amount shown on the Bank's  records to be  outstanding,
plus interest (calculated on the basis of actual days elapsed in a 360-day year)
accruing on the unpaid  balance at the annual rate of  interest  defined  below.
Absent  manifest  error the Bank's  records will be  conclusive  evidence of the
principal and accrued interest owing hereunder.

This Term Note is issued  pursuant to a credit  agreement of even date  herewith
between the Bank and the Borrower  (the  "Agreement").  The  Agreement,  and any
amendments or  substitutions  thereto,  contain  additional terms and conditions
including  default and acceleration  provisions.  The terms of the Agreement are
incorporated  into this Term Note by reference.  Capitalized terms not expressly
defined herein shall have the meanings given them in the Agreement.

INTEREST RATE.

Base Rate  Option.  Unless  the  Borrower  chooses  the Cost of Funds  Option as
defined below, the principal balance  outstanding under this Term Note will bear
interest  at an annual  rate equal to the Base Rate plus  0.85%,  floating  (the
"Base  Rate  Option").  The  Base  Rate is the  "base"  or  "rate"  of  interest
established  by  the  Bank  from  time  to  time  at  its  principal  office  in
Minneapolis.

Cost of Funds Option. Subject to the terms and conditions of the Agreement,  the
Borrower  may elect that all or portions of the  principal  balance of this Term
Note bear  interest  at the Bank's  cost of funds plus 3.25% (the "Cost of Funds
Option").  The  Bank's  Cost of  Funds  is the  rate  determined  by the Bank to
represent  the Bank's  direct and indirect  cost of acquiring  funds with a term
equal to the applicable Cost of Funds Interest Period, in an amount equal to the
Cost of Funds  Rate  Portion.  Specific  reference  is made to the  disbursement
section of the Agreement for terms  governing the  designation  of Cost of Funds
Interest Periods and Cost of Funds Rate Portions.

Rate Decrease / Premium. The interest rate contracted in this Term Note shall be
subject to either an  increase  or a decrease  in  accordance  with the terms of
Section 4.3 of the Agreement in the manner provided therein.

REPAYMENT TERMS

Interest.  Interest accruing under the Cost of Funds Rate Option will be payable
on the  first day of each  month  and at the end of each Cost of Funds  Interest
Period.

Principal.  Principal will be payable in 25 successive quarterly installments of
$92,500.00,  payable  on the first day of each  calendar  quarter  and  starting
October 1, 1995. The remaining  principal  balance,  plus any accrued  interest,
will be payable on July 1, 2002.

PREPAYMENT.  The  Borrower  may prepay  this Term Note in full or in part at any
time in a minimum  amount of  $100,000.00.  Each  prepayment  will be applied in
inverse  order of  maturity  and will  include  accrued  interest  on the amount
prepaid, if the installment consists of principal only.

Each prepayment of principal amounts bearing interest under an optional interest
rate,  whether  voluntary or by reason of  acceleration,  will be accompanied by
accrued  interest  on the  amount  prepaid  plus a  prepayment  fee equal to the
amount, if any, by which:







         (i) the additional  interest that would have been payable on the amount
         prepaid,  if it had not been paid until the last day of the  applicable
         interest period, exceeds

         (ii) the  interest  that  would  have been  recoverable  by the Bank by
         reinvesting the amount prepaid from the prepayment date to the last day
         of the applicable interest period in U.S. Government  Securities having
         a maturity date on or about that date.

ADDITIONAL  TERMS  AND  CONDITIONS.  The  Borrower  agrees  to pay all  costs of
collection,  including reasonable attorneys' fees and legal expenses incurred by
the Bank in the  event  this Term Note is not duly  paid.  Demand,  presentment,
protest and notice of  nonpayment  and dishonor of this Term Note are  expressly
waived.  This Term Note will be governed by the substantive laws of the State of
Minnesota.

Aequitron Medical, Inc.

By:  /s/ William M. Milne

Its:   Chief Financial Officer