Exhibit 10.30

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT  INTRABIOTICS PHARMACEUTICALS, INC.

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TABLE OF CONTENTS

|  |  |                                |  |                                                                       |  | Page
|- |  | ------------------------------ |  | --------------------------------------------------------------------- |  | ----
|  |  |                                |  |                                                                       |  |     
|1 |  | ACCOUNTING AND OTHER TERMS     |  | 4                                                                    
|2 |  | LOAN AND TERMS OF PAYMENT      |  | 4                                                                    
|  |  | 2.1                            |  | Promise to Pay                                                        |  | 4   
|  |  | 2.2                            |  | Termination of Commitment to Lend                                     |  | 5   
|  |  | 2.3                            |  | Overadvances                                                          |  | 5   
|  |  | 2.4                            |  | Interest Rate, Payments                                               |  | 5   
|  |  | 2.5                            |  | Fees                                                                  |  | 5   
|3 |  | CONDITIONS OF LOANS            |  | 5                                                                    
|  |  | 3.1                            |  | Conditions Precedent to Initial Credit Extension                      |  | 5   
|  |  | 3.2                            |  | Conditions Precedent to all Credit Extensions                         |  | 6   
|4 |  | CREATION OF SECURITY INTEREST  |  | 6                                                                    
|  |  | 4.1                            |  | Grant of Security Interest                                            |  | 6   
|  |  | 4.2                            |  | Authorization of File                                                 |  | 6   
|5 |  | REPRESENTATIONS AND WARRANTIES |  | 6                                                                    
|  |  | 5.1                            |  | Due Organization and Authorization                                    |  | 6   
|  |  | 5.2                            |  | Collateral                                                            |  | 6   
|  |  | 5.3                            |  | Litigation                                                            |  | 7   
|  |  | 5.4                            |  | No Material Adverse Change in Financial Statements                    |  | 7   
|  |  | 5.5                            |  | Solvency                                                              |  | 7   
|  |  | 5.6                            |  | Regulatory Compliance                                                 |  | 7   
|  |  | 5.7                            |  | Subsidiaries                                                          |  | 7   
|  |  | 5.8                            |  | Full Disclosure                                                       |  | 7   
|6 |  | AFFIRMATIVE COVENANTS          |  | 8                                                                    
|  |  | 6.1                            |  | Government Compliance                                                 |  | 8   
|  |  | 6.2                            |  | Financial Statements, Reports, Certificates                           |  | 8   
|  |  | 6.3                            |  | Inventory; Returns                                                    |  | 8   
|  |  | 6.4                            |  | Taxes                                                                 |  | 9   
|  |  | 6.5                            |  | Insurance                                                             |  | 9   
|  |  | 6.6                            |  | Primary Accounts                                                      |  | 9   
|  |  | 6.7                            |  | Financial Covenants                                                   |  | 9   
|  |  | 6.8                            |  | Performance Covenant                                                  |  | 9   
|  |  | 6.9                            |  | Cash Collateral                                                       |  | 9   
|  |  | 6.10                           |  | Registration of Intellectual Property Rights                          |  | 10  
|  |  | 6.11                           |  | Further Assurances                                                    |  | 10  
|7 |  | NEGATIVE COVENANTS             |  | 10                                                                   
|  |  | 7.1                            |  | Dispositions                                                          |  | 10  
|  |  | 7.2                            |  | Changes in Business, Ownership, Management or Locations of Collateral |  | 10  
|  |  | 7.3                            |  | Mergers or Acquisitions                                               |  | 11  
|  |  | 7.4                            |  | Indebtedness                                                          |  | 11  
|  |  | 7.5                            |  | Encumbrance                                                           |  | 11  
|  |  | 7.6                            |  | Distributions; Investments                                            |  | 11  
|  |  | 7.7                            |  | Transactions with Affiliates                                          |  | 11  
|  |  | 7.8                            |  | Subordinated Debt                                                     |  | 11  
|  |  | 7.9                            |  | Compliance                                                            |  | 11  

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|8  |  | EVENTS OF DEFAULT                          |  | 11                                 
|-- |  | ------------------------------------------ |  | -----------------------------------
|   |  | 8.1                                        |  | Payment Default                    
|   |  | 8.2                                        |  | Covenant Default                   
|   |  | 8.3                                        |  | Material Adverse Change            
|   |  | 8.4                                        |  | Attachment                         
|   |  | 8.5                                        |  | Insolvency                         
|   |  | 8.6                                        |  | Other Agreements                   
|   |  | 8.7                                        |  | Judgments                          
|   |  | 8.8                                        |  | Misrepresentations                 
|9  |  | BANK'S RIGHTS AND REMEDIES                 |  | 13                                 
|   |  | 9.1                                        |  | Rights and Remedies                
|   |  | 9.2                                        |  | Power of Attorney                  
|   |  | 9.3                                        |  | Accounts Collection                
|   |  | 9.4                                        |  | Bank Expenses                      
|   |  | 9.5                                        |  | Bank's Liability for Collateral    
|   |  | 9.6                                        |  | Remedies Cumulative                
|   |  | 9.7                                        |  | Demand Waiver                      
|10 |  | NOTICES                                    |  | 14                                 
|11 |  | CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER |  | 14                                 
|12 |  | GENERAL PROVISIONS                         |  | 15                                 
|   |  | 12.1                                       |  | Successors and Assigns             
|   |  | 12.2                                       |  | Indemnification                    
|   |  | 12.3                                       |  | Time of Essence                    
|   |  | 12.4                                       |  | Severability of Provision          
|   |  | 12.5                                       |  | Amendments in Writing, Integration 
|   |  | 12.6                                       |  | Counterparts                       
|   |  | 12.7                                       |  | Survival                           
|   |  | 12.8                                       |  | Confidentiality                    
|   |  | 12.9                                       |  | Effect of Amendment and Restatement
|   |  | 12.10                                      |  | Attorneys' Fees, Costs and Expenses
|13 |  | DEFINITIONS                                |  | 16                                 
|   |  | 13.1                                       |  | Definitions                        

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This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENTdated August 20, 2001, between SILICON VALLEY BANK ("Bank"), whose address is
3003 Tasman Drive, Santa Clara, California 95054 and INTRABIOTICS PHARMACEUTICALS, INC. ("Borrower"), whose address is 1245 Terra Bella Avenue, Mountain View, California 94043.

RECITALS

A.    Bank
and Borrower are parties to that certain Loan and Security Agreement dated August 25, 1999, as amended (collectively, the "Original Agreement").

B.    Borrower
and Bank desire in this Agreement to set forth their agreement with respect to a working capital and term loan and to amend and restate in its entirety without
novation the Original Agreement in accordance with the provisions herein.

AGREEMENT

The parties agree as follows:

1ACCOUNTING AND OTHER TERMS

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

2LOAN AND TERMS OF PAYMENT

2.1    Promise to Pay.

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

2.1.1    Revolving Advances.

(a)  Bank
will make Advances not exceeding the Committed Revolving Line. Amounts borrowed under this Section may be repaid and reborrowed during the term of this Agreement.

(b)  To
obtain an Advance, Borrower must notify Bank by facsimile or telephone by 12:00 p.m. Pacific time on the Business Day the Advance is to be made. Borrower must
promptly confirm the notification by delivering to Bank the Payment/Advance Form attached as Exhibit B. Bank will credit Advances to Borrower's deposit account. Bank may make Advances under
this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. Bank may rely on
any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to such reliance.

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

2.1.2    Term Loan.

(a)  Bank
will make a Term Loan available to Borrower as follows:

Borrower
will pay 48 equal installments of principal of $156,250 plus Interest (the "Term Loan Payment"). Each Term Loan Payment is payable on the 20th of each month during the term of
the loan. Borrower's final Term Loan Payment, due on August 20, 2005, includes all outstanding Term

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Loan principal and accrued interest. The initial disbursement shall be advanced at the Closing Date and shall repay all amounts outstanding under Borrower's existing term facility with Bank.

2.2    Termination of Commitment to Lend.

Bank's obligation to lend the undisbursed portion of the Obligations will terminate if, in Bank's sole discretion, there has been a material adverse change in the
general affairs, management, results of operation, condition (financial or otherwise) or the prospect of repayment of the Obligations, or there has been any material adverse deviation by Borrower from
the most recent business plan of Borrower presented to and accepted by Bank prior to the execution of this Agreement.

2.3    Overadvances.

If Borrower's Obligations under Section 2.1.1 exceed the Committed Revolving Line, Borrower must immediately pay in cash to Bank the excess.

2.4    Interest Rate, Payments.

(a)  Interest
Rate. (i) Advances accrue interest on the outstanding principal balance at a per annum variable rate of 300 basis points above the CD Rate; and
(ii) the Term Loan accrues interest, at Borrower's option at either: (i) at a fixed rate of 450 basis points above the Treasury Bill Rate or (ii) a variable per annum rate equal
to 2.00 percentage points above the Prime Rate. Borrower shall elect such rate at the time the Term Loan is disbursed. After an Event of Default, Obligations accrue interest at 5 percent
above the rate effective immediately before the Event of Default. Interest is computed on a 360 day year for the actual number of days elapsed.

(b)  Payments.
Interest due on the Committed Revolving Line is payable on the 20th of each month. Bank may debit any of Borrower's deposit accounts including Account Number
                        for principal and interest payments owing or any amounts Borrower owes Bank. Bank will promptly notify
Borrower when it debits Borrower's accounts. These debits are not a
set-off. Payments received after 12:00 noon
Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and
additional fees or interest accrue.

2.5    Fees.

Borrower will pay:

(a)  Facility
Fee. A fully earned, non-refundable Facility Fee of $6,250 for the Committed Revolving Line and $65,625 for the Term Loan due on the Closing Date;
and

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

3CONDITIONS OF LOANS

3.1    Conditions Precedent to Initial Credit Extension.

Bank's obligation to make the initial Credit Extension is subject to the condition precedent that it receive the agreements, documents and fees it requires;

All
debts to General Electric Credit Corporation be paid in full and Borrower has delivered to Bank UCC terminations evidencing such pay off; and

Loan
# 1100074724 between Borrower and Bank shall be repaid with the proceeds of the Term Loan.

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3.2    Conditions Precedent to all Credit Extensions.

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

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

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

4CREATION OF SECURITY INTEREST

4.1    Grant of Security Interest.

Borrower grants Bank a continuing security interest in all presently existing and later acquired Collateral to secure all Obligations and performance of each of
Borrower's duties under the Loan Documents. Except for Permitted Liens, any security interest will be a first priority security interest in the Collateral. Bank may place a "hold" on any deposit
account pledged as Collateral. If this Agreement is terminated, Bank's lien and security interest in the Collateral will continue until Borrower fully satisfies its Obligations.

4.2    Authorization of File.

Borrower authorizes Bank to file financing statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to
perfect or protect Bank's interest in the Collateral.

5REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants as follows:

5.1    Due Organization and Authorization.

Borrower and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good standing
in, any state in which the conduct of its business or its ownership of property requires that it be qualified, except where the failure to do so could not reasonably be expected to cause a Material
Adverse Change. Borrower has not changed its state of formation or its organizational structure or type or any organizational number (if any) assigned by its jurisdiction of formation.

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

5.2    Collateral.

Borrower has good title to the Collateral, free of Liens except Permitted Liens. Borrower has no other deposit account, other than the deposit accounts described
in the Schedule. The Accounts are bona fide, existing obligations, and the service or property has been performed or delivered to the account debtor or its agent for immediate shipment to and
unconditional acceptance by the account debtor. The Collateral is not in the possession of any third party bailee (such as at a warehouse). In

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the event that Borrower, after the date hereof, intends to store or otherwise deliver the Collateral to such a bailee, then Borrower will receive the prior written consent of Bank and such bailee
must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank. All Inventory is in all material respects of good and marketable quality, free from material defects.
Borrower is the sole owner of the Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary course of business. Each Patent is valid and enforceable
and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and no claim has been made that any part of the Intellectual Property violates the rights of any
third party, except to the extent such claim could not reasonably be expected to cause a Material Adverse Change.

5.3    Litigation.

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

5.4    No Material Adverse Change in Financial Statements.

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

5.5    Solvency.

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

5.6    Regulatory Compliance.

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

5.7    Subsidiaries.

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

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5.8    Full Disclosure.

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

6AFFIRMATIVE COVENANTS

Borrower will do all of the following for so long as Bank has an obligations to lend, or there are outstanding Obligations:

6.1    Government Compliance.

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

6.2    Financial Statements, Reports, Certificates.

(a)  Borrower
will deliver to Bank: (i) when Weekly Reporting or Monthly Reporting applies, as soon as available, but no later than 30 days after the last day
of each month, a company prepared consolidated balance sheet and income statement covering Borrower's consolidated operations during the period certified by a Responsible Officer and in a form
acceptable to Bank; (ii) as soon as available, but no later than 95 days after the last day of Borrower's fiscal year, audited consolidated financial statements prepared under GAAP,
consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Bank; (iii) within
5 days of filing (unless Weekly Reporting or Monthly Reporting applies), copies of all statements, reports and notices made available to Borrower's security holders or to any holders of
Subordinated Debt and all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission; (iv) a prompt report of any legal
actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of $100,000 or more; (v) as soon as available, but no later
than 30 days after the last day of each year, budgets, sales and annual projections (approved by Borrower's Board of Directors), operating plans or other financial information Bank reasonably
requests; and (vi) prompt notice of any material change in the composition of the Intellectual Property, including any subsequent ownership right of Borrower in or to any Copyright, Patent or
Trademark not shown in any intellectual property security agreement between Borrower and Bank or knowledge of an event that materially adversely affects the value of the Intellectual Property.

(b)  Within
50 days after the last day of each quarter (unless Weekly Reporting or Monthly Reporting applies), Borrower will deliver to Bank with the quarterly
financial statements a Compliance Certificate signed by a Responsible Officer in the form of Exhibit C.

(c)  Allow
Bank to audit Borrower's Collateral at Borrower's expense. Such audits will be conducted only at such times as an Event of Default has occurred and is continuing.

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6.3    Inventory; Returns.

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

6.4    Taxes.

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

6.5    Insurance.

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

6.6    Primary Accounts.

Borrower will maintain its primary banking relationship with Bank, which relationship shall include Borrower maintaining account balances in any account at or
through Bank representing at least 85% of all account balances of Borrower at any financial institution.

6.7    Financial Covenants.

Borrower will maintain as of the last day of each quarter, unless Monthly Reporting or Weekly Reporting is required by the terms of their definitions, as
appropriate:



6.8    Performance Covenant.

Borrower will commence its oral mucositis CT2 trial by December 31, 2001 and will notify Bank at such time as the first patient has been enrolled in the
trial.

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6.9    Cash Collateral.

Notwithstanding Sections 6.7 and 6.8, Borrower shall maintain a certificate of deposit (the "CD") to be held on account with Bank in a minimum principal amount
equivalent to 105% of the aggregate outstandings under the Term Loan in the event Borrower fails to meet any Financial Covenant in Section 6.7 or the Performance Covenant in Section 6.8.
The CD shall be held until such time as Borrower restores and maintains compliance with the terms of this Agreement. In the event Borrower is in compliance with all terms of this Agreement, except for
the Maximum Loss covenant, Borrower may establish a CD in an amount equivalent to 55% of the aggregate outstandings under the Term Loan,provided,
Borrower shall have delivered to Bank, within 10 days of such default of the Maximum Loss covenant, updated/revised financial projections. Bank, in its sole discretion, may determine whether to
waive or reset such covenant as it deems appropriate. If Borrower has not complied with Section 6.7 entitled "Financial Covenants" and 6.8 entitled "Performance Covenant" of this Agreement
within 60 days of the date of the Maximum Loss covenant Event of Default or Bank has not determined to waive such Event of Default, Borrower will be required to establish a CD in an amount
equivalent to 105% of the aggregate outstanding under the Term Loan.. Notwithstanding the foregoing, provided Borrower maintains such a pledged CD in a minimum amount equal to 105% of the aggregate
outstanding under the Term Loan with Bank, it shall not be deemed an Event of Default with respect to a violation of the Financial Covenants or Performance Covenant, however, it shall not be construed
in any way as to cure Borrower's violation or any other Event of Default under the Loan Agreement or Bank's agreement to (i) waive any other Event of Default under the Loan Agreement; or
(ii) forbear from exercising its rights and remedies if an Event of Default occurs, exists or continues under the Loan Agreement in any other respect.

6.10    Registration of Intellectual Property Rights.

Borrower will register with the United States Patent and Trademark Office or the United States Copyright Office its Intellectual Property within 30 days of
the date of this Agreement, and additional Intellectual Property rights developed or acquired including revisions or additions with any product before the sale or licensing of the product to any third
party.

Borrower
will (i) protect, defend and maintain the validity and enforceability of the Intellectual Property and promptly advise Bank in writing of material infringements and
(ii) not allow any Intellectual Property to be abandoned, forfeited or dedicated to the public without Bank's written consent.

6.11    Further Assurances.

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

7NEGATIVE COVENANTS

Borrower will not do any of the following without Bank's prior written consent, which will not be unreasonably withheld, for so long as Bank has an obligation to
lend and there are any outstanding Obligations:

7.1    Dispositions.

Convey, sell, lease, transfer or otherwise dispose of (collectively "Transfer"), or permit any of its Subsidiaries to Transfer, all or any part of its business or
property,except forTransfers (i) of Inventory in the ordinary course of business; (ii) of non-exclusive licenses and similar
arrangements for the use of

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the property of Borrower or its Subsidiaries in the ordinary course of business; (iii) of worn-out or obsolete Equipment; or (iv) Equipment with a net book value of up to
$3,000,000.

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

Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower or reasonably related thereto or
have a material change in its ownership or management of greater than 25% (other than by the sale of Borrower's equity securities in a public offering or to venture capital investors so long as
Borrower identifies the venture capital investors prior to the closing of the investment). Borrower will not, without at least 30 days prior written notice, relocate its chief executive office,
change its state of formation (including reincorporation), change its organizational number or name or add any new offices or business locations (such as warehouses) in which Borrower maintains or
stores over $5,000 in Collateral.

7.3    Mergers or Acquisitions.

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

7.4    Indebtedness.

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

7.5    Encumbrance.

Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its
Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted here, subject to Permitted Liens.

7.6    Distributions; Investments.

Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries to do
so. Pay any dividends or make any
distribution or payment or redeem, retire or purchase any capital stock, except for repurchases of stock from former employees or directors of Borrower under the terms of applicable repurchase
agreements in an aggregate amount not to exceed $50,000 in the aggregate in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the
repurchases.

7.7    Transactions with Affiliates.

Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary
course of Borrower's business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm's length transaction with a nonaffiliated Person.

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7.8    Subordinated Debt.

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

7.9    Compliance.

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

8EVENTS OF DEFAULT

Any
one of the following is an Event of Default:

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8.1    Payment Default.

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

8.2    Covenant Default.

If Borrower does not perform any obligation in Section 6 or violates any covenant in Section 7 or does not perform or observe any other material
term, condition or covenant in this Agreement, any Loan Documents, or in any agreement between Borrower and Bank and as to any default under a term, condition or covenant that can be cured, has not
cured the default within 10 days after it occurs, or if the default cannot be cured within 10 days or cannot be cured after Borrower's attempts within 10 day period, and the
default may be cured within a reasonable time, then Borrower has an additional period (of not more than 30 days) to attempt to cure the default. During the additional time, the failure to cure
the default is not an Event of Default (but no Credit Extensions will be made during the cure period);

8.3    Material Adverse Change.

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

8.4    Attachment.

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

8.5    Insolvency.

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

8.6    Other Agreements.

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

8.7    Judgments.

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

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8.8    Misrepresentations.

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

9BANK'S RIGHTS AND REMEDIES

9.1    Rights and Remedies.

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

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

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

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

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

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

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

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

9.2    Power of Attorney.

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

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9.3    Accounts Collection.

When an Event of Default occurs and continues, Bank may notify any Person owing Borrower money of Bank's security interest in the funds and verify the amount of
the Account. Borrower must collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received from the account debtor, with proper
endorsements for deposit.

9.4    Bank Expenses.

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

9.5    Bank's Liability for Collateral.

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

9.6    Remedies Cumulative.

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

9.7    Demand Waiver.

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

10NOTICES

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

11CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

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

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

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12GENERAL PROVISIONS

12.1    Successors and Assigns.

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

12.2    Indemnification.

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

12.3    Time of Essence.

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

12.4    Severability of Provision.

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

12.5    Amendments in Writing, Integration.

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

12.6    Counterparts.

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

12.7    Survival.

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

12.8    Confidentiality.

In handling any confidential information, Bank will exercise the same degree of care that it exercises for its own proprietary information, but disclosure of
information may be made (i) to Bank's subsidiaries or affiliates in connection with their business with Borrower, (ii) to prospective transferees or purchasers of any interest in the
loans (provided, however, Bank shall use commercially reasonable efforts in obtaining such prospective transferee or purchasers agreement of the terms of this provision),

16

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

12.9    Effect of Amendment and Restatement.

This Agreement is intended to and does completely amend and restate, without novation, the Original Agreement. All credit extensions or loans outstanding under
the Original Agreement are and shall continue to be outstanding under this Agreement. All security interests granted under the Original Agreement are hereby confirmed and ratified and shall continue
to secure all Obligations under this Agreement.

12.10    Attorneys' Fees, Costs and Expenses.

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

13DEFINITIONS

13.1    Definitions.

In this Agreement:

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

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

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

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

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

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

"Cash Burn"is defined in Section 6.7.

"CD Rate"is the interest rate in effect for Bank's 365-day certificate of deposit rate securing the Committed Revolving Line.

"Closing Date" is the date of this Agreement.

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"Code" is the Uniform Commercial Code, as applicable.

"Collateral" is the property described onExhibit A.

"Committed Revolving Line" is an Advance of up to $2,500,000.

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

"Copyrights" are all copyright rights, applications or registrations and like protections in each work or authorship or derivative work,
whether published or not (whether or not it is a trade secret) now or later existing, created, acquired or held.

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

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

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

"GAAP" is generally accepted accounting principles.

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

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

"Intellectual Property" is all of Borrower's:

(a)  Copyrights,
Trademarks, Patents, and Mask Works including amendments, renewals, extensions, and all licenses or other rights to use and all license fees and royalties
from the use;

(b)  Any
trade secrets and any intellectual property rights in computer software and computer software products now or later existing, created, acquired or held;

(c)  All
design rights which may be available to Borrower now or later created, acquired or held;

(d)  Any
claims for damages (past, present or future) for infringement of any of the rights above, with the right, but not the obligation, to sue and collect damages for use
or infringement of the intellectual property rights above;

All
proceeds and products of the foregoing, including all insurance, indemnity or warranty payments.

18

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

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

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

"Liquidity Coverage"is defined in Section 6.7.

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

"Mask Works" are all mask works or similar rights available for the protection of semiconductor chips, now owned or later acquired.

"Material Adverse Change" is defined in Section 8.3.

"Monthly Reporting"applies until such time as Borrower has received a minimum of $20,000,000 in new capital from sources acceptable to
Bank and at any time Borrower's Liquidity is less than 2.50 to 1.00 and/or Borrower's Remaining Months Liquidity is 9 months or less.

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

"Original Agreement" has the meaning set forth in recital paragraph A.

"Patents" are patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues,
extensions and continuations-in-part of the same.

"Permitted Indebtedness" is:

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

(b)  Indebtedness
existing on the Closing Date and shown on the Schedule;

(c)  Subordinated
Debt;

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

(e)  Indebtedness
secured by Permitted Liens.

"Permitted Investments" are:

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

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

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"Permitted Liens" are:

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

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

(c)  Licenses
or sublicenses granted in the ordinary course of Borrower's business and any interest or title of a licensor or under any license or sublicense, ifthe licenses and sublicenses permit granting Bank a
security interest;

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

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

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

"Remaining Months Liquidity" is defined in Section 6.7.

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

"Revolving Maturity Date" is August 20, 2002.

"Schedule" is any attached schedule of exceptions.

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

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

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

"Term Loan" a loan of $7,500,000.

"Term Loan Maturity Date" is August 20, 2005.

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

"Trademarks" are trademark and servicemark rights, registered or not, applications to register and registrations and like protections, and
the entire goodwill of the business of Assignor connected with the trademarks.

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"Weekly Reporting"means from January 4, 2002 until the close of at least $20,000,000 in new capital from sources acceptable to
Bank, Borrower will provide to Bank a Borrower-prepared reporting of the Liquidity Covenant, signed by a Responsible Officer, by the Friday of each week and the Liquidity Coverage shall be tested on a
weekly basis.

|BORROWER:                          |                        
|---------------------------------- | -----------------------
|IntraBiotics Pharmaceuticals, Inc. |                        
|By:                                | /s/ Kenneth J. Kelley  
|Title:                             | President and CEO      
|BANK:                              |                        
|SILICON VALLEY BANK                |                        
|By:                                | /s/ Silicon Valley Bank
|Title:                             | Vice President         

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EXHIBIT A

The Collateral consists of all of Borrower's right, title and interest in and to the following whether owned now or hereafter arising:

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

All
inventory, now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and
finished products including such inventory as is temporarily out of Borrower's custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance
proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above;

All
contract rights and general intangibles (as such definitions may be amended from time to time according to the Code), now owned or hereafter acquired, including, without limitation,
goodwill, trademarks, servicemarks, trade styles, trade names, patents, patent applications, leases, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists,
route lists, infringements, claims, computer programs, computer discs, computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and rights to payment of
any kind,;

All
now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Borrower arising out of the sale or lease of
goods, the licensing of technology or the rendering of services by Borrower (as such definitions may be amended from time to time according to the Code) whether or not earned by performance, and any
and all credit insurance, insurance (including refund) claims and proceeds, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower;

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

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

Silicon
Valley Bank's Certificate of Deposit Number 8800053649 in an aggregate amount not less than $2,500,000 together with all renewals of, extensions of, substitutions of,
replacements of, and proceeds of the foregoing; and

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

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EXHIBIT B

Loan Payment/Advance Request Form

Deadline for same day processing is 12:00 P.S.T.

|Fax To: |  |  |  | Date: | 
|------- |  |  |  | ----- | 
|        |  |  |  |       | 

|/ /                                           |  | Loan Payment:                                                                                                                                                                                                                                                                                                                                                       |   |                     |                 |            |  
|--------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ------------------- | --------------- | ---------- | -
|IntraBiotics Pharmaceuticals, Inc. (Borrower)
|                                              |  | From Account                                                                                                                                                                                                                                                                                                                                                        | # |                     |                 | To Account | #
|                                              |  |                                                                                                                                                                                                                                                                                                                                                                     |   | (Deposit Account #) |                 |            |  
|                                              |  | Principal                                                                                                                                                                                                                                                                                                                                                           | $ |                     | and/or Interest | $          |  
|                                              |  |                                                                                                                                                                                                                                                                                                                                                                     |   |                     |                 |            |  
|                                              |  | All Borrower's representation and warranties in the Loan and Security Agreement are true, correct and complete in all material respects to on the date of the telephone transfer request for and advance, but those representations and warranties
expressly referring to another date shall be true, correct and complete in all material respects as of the date:

| |  | Authorized Signature: |  |  | Phone Number: | 
| |  | --------------------- |  |  | ------------- | 
| |  |                       |  |  |               | 

|/ / |  | Loan Advance:                                                                                                                                                                                                                                                                                                                                                                            |   |                  |            |   |                    
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | - | ---------------- | ---------- | - | -------------------
|    |  | CompleteOutgoing Wire Requestsection below if all or a portion of the funds from this loan advance are for an outgoing wire.                                                                                                                                                                                                                                                            
|    |  | From Account                                                                                                                                                                                                                                                                                                                                                                             | # |                  | To Account | # |                    
|    |  |                                                                                                                                                                                                                                                                                                                                                                                          |   | (Loan Account #) |            |   | (Deposit Account #)
|    |  | Amount of Advance                                                                                                                                                                                                                                                                                                                                                                        | $ |                  |            |   |                    
|    |  |                                                                                                                                                                                                                                                                                                                                                                                          |   |                  |            |   |                    
|    |  | All Borrower's representation and warranties in the Amended and Restated Loan and Security Agreement are true, correct and complete in all material respects to on the date of the telephone transfer request for and advance,
but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of the date:

| |  | Authorized Signature: |  | Phone Number: | 
| |  | --------------------- |  | ------------- | 
| |  |                       |  |               | 

| |  | Outgoing Wire Request                                                                 |  |                 |  
| |  | ------------------------------------------------------------------------------------- |  | --------------- | -
| |  | Complete only if all or a portion of funds from theloan advanceabove are to be wired.
| |  | Deadline for same day processing is 12:00pm, P.S.T.                                  
| |  | Beneficiary Name:                                                                     |  | Amount of Wire: | $
| |  |                                                                                       |  |                 |  
| |  | Beneficiary Bank:                                                                     |  | Account Number: |  
| |  |                                                                                       |  |                 |  
| |  | City and Sate:                                                                        |  |                 |  
| |  |                                                                                       |  |                 |  

| |  | Beneficiary Bank Transit (ABA) #: |  |  |  | Beneficiary Bank Code (Swift, Sort, Chip, etc.): |  | 
| |  | --------------------------------- |  |  |  | ------------------------------------------------ |  | 
| |  |                                   |  |  |  | (For International Wire Only)                    |  | 

| |  | Intermediary Bank:                                                                                                                                                                                                                                                                                         |  |  |  | Transit (ABA) #: |  | 
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  |  | ---------------- |  | 
| |  |                                                                                                                                                                                                                                                                                                            |  |  |  |                  |  | 
| |  | For Further Credit to:                                                                                                                                                                                                                                                                                     |  |  |  |                  |  | 
| |  |                                                                                                                                                                                                                                                                                                            |  | 
| |  | Special Instruction:                                                                                                                                                                                                                                                                                       |  |  |  |                  |  | 
| |  |                                                                                                                                                                                                                                                                                                            |  | 
| |  | By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer
service(s), which agreements(s) were previously received and executed by me (us).

| |  | Authorized Signature: |  |  | 2nd Signature (If Required): | 
| |  | --------------------- |  |  | ---------------------------- | 
| |  |                       |  |  |                              | 
| |  | Print Name/Title:     |  |  | Print Name/Title:            | 
| |  |                       |  |  |                              | 
| |  | Telephone #           |  |  | Telephone #                  | 
| |  |                       |  |  |                              | 

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Schedule to Loan and Security Agreement

The
exact correct corporate name of Borrower is (attach a copy of the formation documents, e.g., articles, partnership agreement)
:

Borrower's
State of
formation:

Borrower
has operated under only the following other names (if none, so state):



All
other address at which the Borrower does business are as follows (attach additional sheets if necessary and include all warehouse addresses)
:

Borrower
has deposit accounts and/or investment accounts located only at the following institutions:



List
Acct.
Numbers:

Liens
existing on the Closing Date and disclosed to and accepted by Bank in writing:







Investments
existing on the Closing Date and disclosed to and accepted by Bank in
writing:

Subordinated Debt:

Indebtedness
on the Closing Date and disclosed to and consented to by Bank in writing:





The
following is a list of the Borrower's copyrights (including copyrights of software) which are registered with the United States Copyright Office. (Please include name of the copyright and
registration number and attach a copy of the registration):



The
following is a list of all software which the Borrower sells, distributes or licenses to others, which isnotregistered with the United States
Copyright Office. (Please include versions which are not registered:



The
following is a list of all of the Borrower's patents which are registered with the United States Patent Office. (Please include name of the patent and registration number and attach a copy of the
registration.):



The
following is a list of all of the Borrower's patents which are pending with the United States Patent Office. (Please include name of the patent and a copy of the
application.)

The
following is a list of all of the Borrower's registered trademarks. (Please include name of the trademark and a copy of the registration.)
:

Borrower
is not subject to litigation which would have a material adverse effect on the Borrower's financial condition, except the following (attach additional comments, if
needed)
:

Tax
ID
Number

Organizational
Number, if
any:

2

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EXHIBIT C  COMPLIANCE CERTIFICATE

|TO:   |  | SILICON VALLEY BANK
3003 Tasman Drive
Santa Clara, CA 95054
|----- |  | -----------------------------------------------------------
|FROM: |  | INTRABIOTICS PHARMACEUTICALS, INC.                         

The
undersigned authorized officer of IntraBiotics Pharmaceuticals, Inc. ("Borrower") certifies that under the terms and conditions of the Amended and Restated
Loan and Security Agreement between Borrower and Bank (the "Agreement"), (i) Borrower is in complete compliance for the period
ending                        with all required covenants except as noted
below and (ii) all representations and warranties in the Agreement are true and correct in all material respects on this date. Attached are the required documents supporting the certification.
The Officer certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one period to the next except as explained in an accompanying
letter or footnotes. The Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and
that compliance is determined not just at the date this certificate is delivered.

Please indicate compliance status by circling Yes/No under "Complies" column.

|Reporting Covenant            |  | Required                            |  | Complies
|----------------------------- |  | ----------------------------------- |  | --------
|Financial statements + CC     |  | *Monthly within 30 days             |  | Yes No  
|Annual (Audited)              |  | FYE within 95 days                  |  | Yes No  
|Annual Projections (approved) |  | FYE within 30 days                  |  | Yes No  
|10-Q, 10-K and 8-K            |  | Within 5 days after filing with SEC |  | Yes No  

*
when Weekly Reporting or Monthly Reporting applies.

Monthly Reportingapplies at such times as Borrower has received a minimum of $20,000,000 in new capital from sources acceptable to Bank
and at any time Borrower's Liquidity is less than 2.50 to 1.00 and/or Borrower's Remaining Months Liquidity is 9 months or less.

Weekly Reportingapplies from January 4, 2002 until the close of at least $20,000,000 in new capital from sources acceptable to
Bank, Borrower will provide to Bank a Borrower-prepared financial statement with a reporting of the Liquidity Covenant, signed by a Responsible Officer, by the Friday of each week and the Liquidity
Coverage shall be tested on a weekly basis.

|Financial Covenant                 |                            | Required     |           | Actual |       | Complies
|---------------------------------- | -------------------------- | ------------ | --------- | ------ | ----- | --------
|Maintain on a Quarterly Basis:     |                            |              |           |        |       |         
|                                   | Minimum Liquidity Coverage |              | 2.00:1.00 |        | :1.00 |         
|                                   | Performance Covenant       |              | **        |        |       |         
|Minimum Remaining Months Liquidity |                            | 6 Months     |           | Months |       | Yes No  
|Maximum Loss:                      |                            | Quarterly*** |           | $      |       | Yes No  

**Borrower
will commence its oral mucositis CT2 trial by December 31, 2001 and will notify Bank at such time as the first patient has been enrolled in the trial.

*
**Borrower shall not report quarterly losses in excess of 20% of its projection approved by its Board of Directors.

Performance
Covenant

|Have there been updates to Borrower's intellectual property?                |  | Yes / No
|--------------------------------------------------------------------------- |  | --------
|Borrower only has deposit accounts located at the following institutions:
.

---

|Comments Regarding Exceptions:See Attached. |  | 
|------------------------------------------- |  | 
|Sincerely,                                  |  | 
|IntraBiotics Pharmaceuticals, Inc.          |  | 
|Signature                                   |  | 
|Title                                       |  | 
|Date                                        |  | 

|BANK USE ONLY     
|------------------
|Received by:      
|Date:             
|Verified:         
|Date:             
|Compliance Status:
|                  

2

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[Silicon LOGO]

SILICON VALLEY BANK

PRO FORMA INVOICE FOR LOAN CHARGES

|BORROWER:     |  | IntraBiotics Pharmaceuticals, Inc. |  |   |            |   | 
|------------- |  | ---------------------------------- |  | - | ---------- | - | 
|LOAN OFFICER: |  | Samuel Thompson                    |  |   |            |   | 
|DATE:         |  | August 20, 2001                    |  |   |            |   | 
|              |  | Revolving Loan Fee                 |  | $ | 6,250.00   |   | 
|              |  | Term Loan Fee                      |  |   | 65,625.00  |   | 
|              |  | UCC Search Fee                     |  |   | 200.00     |   | 
|              |  | UCC Filing Fee                     |  |   | 75.00      |   | 
|              |  | Intellectual Property Filing Fees  |  |   | 550.00     |   | 
|              |  | Documentation Fee                  |  |   | 1,500.00   |   | 
|              |  | Good Faith Deposit                 |  | $ | (10,000.00 | ) | 
|              |  | TOTAL FEE DUE                      |  | $ | 64,200.00  |   | 
|              |  |                                    |  |   |            |  

Please indicate the method of payment:

{    }    A check for the total amount is attached.

{    }    Debit DDA
#                        for the total amount.

{    }    Loan proceeds

Borrower:

By:  
        (Authorized Signer)

Silicon Valley Bank                (Date)
Account Officer's Signature

---

INTELLECTUAL PROPERTY SECURITY AGREEMENT

This Intellectual Property Security Agreement is entered into as of August 20, 2001 by and between SILICON VALLEY BANK ("Bank") and IntraBiotics
Pharmaceuticals, Inc. ("Grantor").

RECITALS

A.    Bank
has agreed to make certain advances of money and to extend certain financial accommodation to Grantor (the "Loans") in the amounts and manner set forth in that
certain Amended and Restated Loan and Security Agreement by and between Bank and Grantor dated August 20, 2001 (as the same may be amended, modified or supplemented from time to time, the "Loan
Agreement"; capitalized terms used herein are used as defined in the Loan Agreement). Bank is willing to make the Loans to Grantor, but only upon the condition, among others, that Grantor shall grant
to Bank a security interest in certain Copyrights, Trademarks, Patents, and Mask Works to secure the obligations of Grantor under the Loan Agreement.

B.    Pursuant
to the terms of the Loan Agreement, Grantor has granted to Bank a security interest in all of Grantor's right, title and interest, whether presently existing or
hereafter acquired, in, to and under all of the Collateral.

NOW,
THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, and intending to be legally bound, as collateral security for the prompt and complete
payment when due of its obligations under the Loan Agreement, Grantor hereby represents, warrants, covenants and agrees as follows:

AGREEMENT

To secure its obligations under the Loan Agreement, Grantor grants and pledges to Bank a security interest in all of Grantor's right, title and interest in, to
and under its Intellectual Property Collateral (including without limitation those Copyrights, Patents, Trademarks and Mask Works listed on Schedules A, B, C, and D hereto), and including without
limitation all proceeds thereof (such as, by way of example but not by way of limitation, license royalties and proceeds of infringement suits), the right to sue for past, present and future
infringements, all rights corresponding thereto throughout the world and all re-issues, divisions continuations, renewals, extensions and continuations-in-part
thereof.

This
security interest is granted in conjunction with the security interest granted to Bank under the Loan Agreement. The rights and remedies of Bank with respect to the security
interest granted hereby are in addition to those set forth in the Loan Agreement and the other Loan Documents, and those which are now or hereafter available to Bank as a matter of law or equity. Each
right, power and remedy of Bank provided for herein or in the Loan Agreement or any of the Loan Documents, or now or hereafter existing at law or in equity shall be cumulative and concurrent and shall
be in addition to every right, power or remedy provided for herein and the exercise by Bank of any one or more of the rights, powers or remedies provided for in this Intellectual Property Security
Agreement, the Loan Agreement or any of the other Loan Documents, or now or hereafter existing at law or in equity, shall not preclude the simultaneous or later exercise by any person, including Bank,
of any or all other rights, powers or remedies.

---

IN
WITNESS WHEREOF, the parties have cause this Intellectual Property Security Agreement to be duly executed by its officers thereunto duly authorized as of the first date written above.

|                           |  |                                    | GRANTOR:
|-------------------------- |  | ---------------------------------- | --------
|Address of Grantor:        |  | IntraBiotics Pharmaceuticals, Inc.
|1245 Terra Bella Avenue    |  | By:                                |         
|Mountain View, CA 94043    |  |                                    |         
|Attn:                      |  |                                    | Title:  
|                           |  |                                    |         
|                           |  |                                    |         
|                           |  |                                    | BANK:   
|Address of Bank:           |  | SILICON VALLEY BANK               
|3003 Tasman Drive          |  | By:                                |         
|Santa Clara, CA 95054-1191 |  |                                    |         
|Attn:                      |  |                                    | Title:  
|                           |  |                                    |         

2

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EXHIBIT ACopyrights

|Description |  | Registration/
Application
Number |  | Registration/
Application
Date
|----------- |  | -------------------------------- |  | ------------------------------
|            |  |                                  |  |                               

---

EXHIBIT BPatents

|Description |  | Registration/
Application
Number |  | Registration/
Application
Date
|----------- |  | -------------------------------- |  | ------------------------------

---

EXHIBIT CTrademarks

|Description |  | Registration/
Application
Number |  | Registration/
Application
Date
|----------- |  | -------------------------------- |  | ------------------------------

---

EXHIBIT DMask Works

|Description |  | Registration/
Application
Number |  | Registration/
Application
Date
|----------- |  | -------------------------------- |  | ------------------------------

---

CORPORATE BORROWING RESOLUTION

|Borrower: | IntraBiotics Pharmaceuticals, Inc.
1245 Terra Bella Avenue
Mountain View, CA 94043 |  | Bank: | Silicon Valley Bank
3003 Tasman Drive
Santa Clara, CA 95054-1191
|--------- | ---------------------------------------------------------------------------------- |  | ----- | ----------------------------------------------------------------

I, the Secretary or Assistant Secretary of IntraBiotics Pharmaceuticals, Inc. ("Borrower"), CERTIFYthat Borrower is a corporation
existing under the laws of the State of California.

Icertify that at a meeting of Borrower's Directors (or by other authorized corporate action) duly held the following resolutions were
adopted.

It
is resolved thatany oneof the following officers of Borrower, whose name, title and signature is below:

|NAMES |  | POSITIONS |  | ACTUAL SIGNATURES
|----- |  | --------- |  | -----------------
|      |  |           |  |                  
|      |  |           |  |                  
|      |  |           |  |                  
|      |  |           |  |                  
|      |  |           |  |                  

may
act for Borrower and:



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

Icertify that the persons listed above are Borrower's officers with the titles and signatures shown following their names and that these
resolutions have not been modified are currently effective.

---

CERTIFIED TO AND ATTESTED BY:

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

2

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