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Exhibit 10.3

THIRD AMENDMENT TO LOAN AGREEMENT

THIS THIRD AMENDMENT TO LOAN AGREEMENT (the "Amendment") is entered into as of
December 6, 2005 by and between UTAH MEDICAL PRODUCTS, a Utah corporation
("Borrower"), and U. S. BANK NATIONAL ASSOCIATION ("Bank").

Recitals

A. Borrower and Bank have entered into that certain Loan Agreement (the
“Agreement”) dated as of July 3, 2002 and related documents (as amended by a
First Amendment thereto and a Second Amendment thereto) pursuant to which Bank
has agreed to extend certain credit to Borrower in accordance with its terms.
Capitalized terms shall have the meanings given by the Agreement unless
otherwise defined.

B. Borrower and Bank wish (i) to increase the Loan from $5,000,000 to $8,000,000
and (ii) to make other modifications to the Agreement.

Agreement

NOW, THEREFORE, in consideration of the promises contained herein, and each
intending to be legally bound hereby, the parties agree as follows:

1. The Loan is hereby increased from $5,000,000 to $8,000,000, to be further
evidenced by Borrower’s execution of an Amended and Restated Revolving
Promissory Note of even date herewith in the stated principal amount of
$8,000,000.

2. Borrower shall be permitted to use the Loan to request the issuance by Bank
of letters of credit. Each letter of credit shall be evidenced further by
Borrower’s execution of an application and an unconditional reimbursement
agreement in forms customarily required by Bank. The amount of credit available
under the Loan shall be decreased by the total undrawn amounts on all
outstanding letters of credit. In the event the expiration date of a letter of
credit extends beyond the expiration date of the Loan commitment and the
Maturity Date under the Note, Borrower shall deposit with Bank funds, on or
before the Maturity Date, in an amount at least equal to the total undrawn
amount under all outstanding letters of credit, together with collateral
documents granting to Bank a security interest and control in that deposit as
security for repayment of the obligations associated with those undrawn letters
of credit. The issuance of each letter of credit will require a fee equal to
1.25% of the face amount of the letter of credit.

3. Borrower shall be permitted to incur an unsecured ten (10) year indebtedness
to Bank of Ireland in an amount not to exceed €4,500,000 (Euros), which shall be
deemed a one-time waiver of the provisions in Section 5.2 of the Agreement.

 
 

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4. Section 4.10 of the Agreement is hereby amended to increase the minimum Net
Worth requirement from $10,000,000 to $18,500,000.

5. Borrower hereby acknowledges the continued validity and enforceability of the
Loan Documents, as amended hereby, and acknowledges that Borrower has no
defense, claim or counterclaim with respect to its Obligations under the Loan
Documents.

6. All other terms of the Agreement and the other Loan Documents shall remain
valid and enforceable as modified hereby.

7. This Amendment may be executed in counterparts.

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

 
UTAH MEDICAL PRODUCTS
U. S. BANK NATIONAL ASSOCIATION
               
By:
  /s/ Kevin L. Cornwell                                        
By:
  /s/ Terry L. Grant                                                   
       
Its:
  CEO                                                                
Its:
  VP                                                                        

 
 
 
 
 
 
 
 
 
 
 
 
 

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