Document:

utmd10k123108ex10-1.htm

    
      

      

    

    
      EXHIBIT
10

      

      AMENDMENT
to LOAN AGREEMENT between

      UTAH
MEDICAL PRODUCTS LIMITED and BANK OF IRELAND

       

       

      
        
          

        

        Bank
Of Ireland, Business Banking 

        
          

        

        

      

      Private
and Confidential

      

      Our
Ref:  LS/901634/1017069  / 08W2334163

      

      Date: 12th March
2008

      Regional
Business Unit North West / Midlands: Athlone

      Branch:
Athlone

      

      The
Secretary

      Utah
Medical Products Limited

      Utah
Medical Products, Inc.

      7043
South 300 West

      Midvale

      UT
84047

      
        Re:
Utah Medical Products Limited

      

      

      Dear
Sir/Madam

      

      I am
pleased to advise you that, subject to the terms and conditions outlined below
and in the attached appendix dated the 12th March 2008 which is deemed to form
part of this Offer Letter, Bank of Ireland will make available to Utah Medical Products Limited
the following facility/ies:

       

      Amount & Type of
Facility

       

      
        	
                ·

              	
                €2,620,399
      (two million, six hundred and twenty thousand, three hundred and ninety
      nine euro) by way of Loan. (Renewal)

                 

              

      

      Purpose

       

      
        	
                ·

              	
                Continuation
      of existing facility on terms and conditions previously accepted by Utah
      Medical Products Limited.

                 

              

      

      Interest
Rate

       

      The
rate(s) set out in this Offer Letter are indicative only in respect of the new
facilities detailed and are subject to change between the date of this Offer
Letter and the actual drawdown of the facility.  The actual rate will
be determined on drawdown and subsequent roll-over dates (if applicable) and as
set out in Clause 5 of the standard Terms and Conditions set out in the Appendix
hereto.

      

      
        	
                ·

              	
                The
      Interest Rate applicable is a fixed money market rate.  Money
      market rates are calculated by totalling the following:-

                (A)

                The
      Bank's Cost of Funds for the selected period. The actual rate will be
      determined with reference to the market on the date of drawdown. If
      EURIBOR is utilised the actual rate will be determined with reference to
      the market two days prior to drawdown

                (B)

                Cost
      of Liquidity (if applicable)

                (C)

                The
      Banks Fixed Margin of 1.1% per annum. Any break costs incurred in amending
      a fixed rate will be borne by the borrower.  While the actual
      rate will be determined at date of drawdown, indicative all inclusive
      rates for a number of fixed interest periods are as follows:-

                3
      Months:  5.77%                                 6
      Months:
      5.76%                     12
      Months:  5.75%

                 

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      Terms of Facilities and
Repayment

       

      Exact
repayments will be determined on date of drawdown based on the interest rate
then prevailing.

      

      
        	
                ·

              	
                The
      Loan is repayable over 93 months by way of monthly repayments of
      €34975.95, commencing one month from renewal. This repayment figure is
      quoted for information purposes only and is based on the 3-month
      indicative fixed rate interest rate quoted above.  The actual
      repayment figure will be determined on the date of drawdown by reference
      to the interest rate then applying for the selected
      period.

                 

              

      

      Arrangement
Fee

      

      Following
our negotiations, the arrangement fee for this facility is waived.

      

      Security

       

      Any
security held now, or at any future time, shall be security for all the
liabilities present and future howsoever arising, of the Borrower to the
Bank.

       

      Security
currently held, and/or
that required for the above facility is as listed below:

       

      SECURITY
HELD

      Following
full and final discharge by the Customer of the loan facility and any other
Bank facilities secured by this security, any security documentation
conferring ownership rights is being held in safekeeping by the Bank, until we
receive a written request for release of the same by the customer, or at the
option of the Bank, may be returned to the Customer or the Customer's
solicitor or in the event that the security was obtained from a loan
Guarantor, the Guarantor or the Guarantor's solicitor.

       

      
        	
                 
      

              	
                ·

              	
                Letter
      of Guarantee from National Association, Seattle guaranteeing the
      Borrower's liabilities in the amount of €4,500,000 in respect of principal
      together with interest and costs accrued thereon. (To be released upon perfection
      of the new Guarantee below)

              

      

      

      ADDITIONAL
SECURITY REQUIRED

      

      
        	
                 
      

              	
                ·

              	
                Letter
      of Guarantee from Utah Medical Products, Inc. guaranteeing the Borrower's
      liabilities in the amount of *Eur2,621,000 in respect of principal
      together with interest and costs accrued
  thereon.

              

      

      

      Legal and Other
Fees:

       

      It is
understood that any Legal or other Fees, including Valuation Fees incurred in
perfecting the Security or any other requirements will be payable by the
borrower whether or not any funds are advanced.

       

      Conditions Precedent to
Drawdown

       

      In
addition to the Conditions Precedent to drawdown, contained in the Appendix, the
Bank shall not be obliged to allow any drawdown of the above facilities unless
at the time of so doing, it is satisfied that:

       

      
        	
                 
      

              	
                1.

              	
                Security
      as outlined above to be in place in a manner acceptable to the Bank and
      its Legal Advisors prior to drawdown of the
  facility.

              

      

      

      
        	
                 
      

              	
                2.

              	
                Security
      to be taken by the Bank’s Legal Advisors or solicitors nominated by them
      & the proposed wording of the guarantee to be approved by the US Legal
      Advisors nominated by the bank.

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      Covenants

       

      By
acceptance of the facilities as detailed above, and without prejudice to the
demand nature of the Facility the Borrower undertakes that during their
continuance and until all amounts outstanding have been repaid:

       

      
        	
                 
      

              	
                1.

              	
                To
      comply with all covenants, undertakings and provisions set out in the
      attached appendix.

              

      

      

      
        	
                 
      

              	
                2.

              	
                Any
      financial information that the Bank may reasonably require from time to
      time to be supplied to the Bank.

              

      

      

      Standard Terms and
Conditions

      

      If there
is any conflict between the terms of this Offer Letter and the attached Standard
Terms and Conditions, the terms of this Offer Letter will prevail.

      

      Review
Date

       

      Irrespective
of the term of the facilities, the Bank will normally review the facilities at
least annually to assess the ongoing viability of the proposition and the
underlying Business. In some circumstances, the Bank may set review dates, at
its discretion, on a more frequent basis.

      

      Unless
circumstances change warranting an earlier review, the above facilities will be
formally reviewed again by 22nd February 2009. However, if I can be of any
assistance at any stage in the intervening period, please do not hesitate to
contact me.

      

       

      Acceptance

       

      In order
to signify your acceptance of the foregoing facilities on the terms and
conditions outlined above and in the attached appendix, the duplicate letter
should be accepted on behalf of Utah Medical Products Limited and
returned to this office within
21 days of the date hereof.

       

      This
offer will remain valid for 90 days from the date of this letter, after which
date this offer shall lapse without any liability or commitment on our
part.

       

      Yours
faithfully

       

      _________________________________

      Dermot
Freehill

      Senior
Business Manager

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      

      FORM
OF ACCEPTANCE

       

      I/We have
read and agree to be bound by and fully accept all of the terms and conditions
contained in this Offer Letter and in the appendix to this Offer
Letter.  Accepted for and on behalf of  Utah Medical Products Limited
pursuant to a resolution of the Board of Directors

       

      

       

      
        
          
            
              
                	
                        dated
      the

                      	
                        1

                      	
                        4

                      	
                         (day
      of)

                      	
                        0

                      	
                        3

                      	
                         (month)

                      	
                        2

                      	
                        0

                      	
                        0

                      	
                        8

                      	
                         (year).

                      

              

            

          

        

      

      

       

      
        
          
            
              
                
                  	 
      	
                          /s/
      Kevin L. Cornwell

                        	
                          DATE

                        	
                          1

                        	
                          4

                        	
                          0

                        	
                          3

                        	
                          2

                        	
                          0

                        	
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                          8

                        
	
                          Authorised
      Signatory

                        	 
      	 
      	
                          D

                        	
                          D

                        	
                          M

                        	
                          M

                        	
                          Y

                        	
                          Y

                        	
                          Y

                        	
                          Y

                        
	 
      	
                          /s/
      Paul O. Richins

                        	
                          DATE

                        	
                          1

                        	
                          4

                        	
                          0

                        	
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                          0

                        	
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                          8

                        
	
                          Authorised
      Signatory

                        	 
      	 
      	
                          D

                        	
                          D

                        	
                          M

                        	
                          M

                        	
                          Y

                        	
                          Y

                        	
                          Y

                        	
                          Y

                        

                

              

            

          

        

      

      

      

       

      

      

      

       

      
        	
                Warning,
      if you do not meet the loan repayments of your loan, your account will go
      into arrears. This may affect your credit
  rating.

              

      

      

       

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      Appendix to Offer Letter
Dated 12th March 2008 to Utah Medical Products Limited

      

      TERMS
AND CONDITIONS

       

      DEFINITIONS

       

      Associate is defined as a
company in which any member of the Group holds, or may in the future hold, more
then twenty per cent, but not exceeding fifty per cent, of the issued voting
share capital.

       

      Bank means The Governor and
Company of the Bank of Ireland, otherwise referred to as Bank of
Ireland.

       

      Bank Debt is defined as a
monetary obligation to any financial institution whatsoever.

       

      Business Day is defined as any
day on which Banks are generally open for business in Ireland.

       

      Environmental Law means all
circulars, codes of practice, guidance notices, legislation orders or
regulations, including statutory modifications and re-enactments thereof,
concerning the protection of the environment and the control of pollution,
whether or not having the force of law, and whether imposed in Ireland, or by an
association, community, federation, or other organisation of which Ireland is a
member.

       

      Environmental Licence means
any approval, authorisation, consent, licence or permit required by
Environmental Law.

       

      Group is defined as all those
bodies corporate which are Subsidiary or Associate companies of the Borrower or
the Borrower’s ultimate Holding Company (if any), and a member of the Group
shall be construed accordingly.

       

      Holding Company is defined in
Section 155 of the Companies Act 1963, or analogous provisions of
law.

       

      Liquidity means such
additional percentage rate as the Bank shall determine to be necessary to
compensate the Bank for the cost to the Bank during the term of the facility of
funding, or maintaining a facility, in the relevant amount by reason of the
Liquidity Requirement relative to such period.

       

      Liquidity Requirement means
any liquidity, reserve ratio, special deposit or similar requirement (or other
requirement having the same or similar purpose) of any Regulatory Authority,
whether or not having the force of law with which the Bank has
complied.

       

      Regulatory Authority includes
the European Central Bank, the Financial Regulator, the Revenue Commissioners
and any other regulatory authority in or of Ireland or any federation,
community, association or organisation of which Ireland shall be a member and
any regulatory authority of any place from which the Bank obtains resources for
funding or maintaining a facility in the relevant amount.

       

      Subsidiary is defined in
Section 155 of the Companies Act 1963, or analogous provisions of
law.

       

      Any
reference in this appendix to the Offer Letter includes a reference to the Offer
Letter bearing the above date and this appendix.

       

       

      1.
Conditions precedent to drawdown

       

      The Bank
will not be obliged to perform its obligations under this Offer Letter, unless
at the time of so doing it is, in its absolute discretion satisfied
that:

       

      
        	
                (i)

              	
                Security/drawdown
      requirements as outlined herein, have been completed and executed in a
      form, or manner and content acceptable to the Bank and its legal
      advisers.

              

      

       

      
        	
                (ii)

              	
                No
      material adverse change has occurred in the Borrower’s business,
      undertaking, assets or financial condition since the date of its latest
      Annual Accounts as provided to the
Bank.

              

      

       

      
        	
                (iii)

              	
                That
      the Offer Letter has been duly executed by the
  Borrower(s).

              

      

       

      
        	
                (iv)

              	
                The
      borrower has fulfilled all of the Bank of Ireland’s requirements regarding
      the opening and operating of Accounts including any requirements
      concerning the prevention of money laundering as contained within the
      provisions of the Criminal Justice Act 1995 and in compliance with the
      Anti Money Laundering (AML) identification documentation and Personal
      Customer Identification Forms (PCIF)
  requirements.

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      2.
Representations and Warranties

       

      The
Borrower hereby represents and warrants to the Bank that:

       

      
        	
                (i)

              	
                The
      execution and delivery of this Offer Letter will not contravene its
      Memorandum and Articles of Association nor any agreement indenture or
      other instrument, which is binding upon it, or any member of the
      Group.

              

      

       

      
        	
                (ii)

              	
                Neither
      it nor any member of the Group is engaged nor about to engage in any
      litigation or arbitration of any material importance and to the best of
      the knowledge information and belief of the Borrower no such litigation or
      arbitration is pending or threatened against it or any members of the
      Group.

              

      

       

      
        	
                (iii)

              	
                It
      has, and each member of the Group has complied with all directives, laws,
      orders, regulations, statutes, statutory instruments or other requirements
      howsoever arising.

              

      

       

      On each
drawing and rollover of facilities referred to in the Offer Letter, the
Representations and Warranties outlined above are deemed to be
repeated.

       

       

      3.
Security

       

      Any
security held now, or at any future time, shall be security for all liabilities
of the Borrower to the Bank.

       

      By
acceptance of this Offer Letter the Borrower agrees and acknowledges that the
security listed in the Offer Letter (whether as security held or as security
required or otherwise described) shall be security for all monies, obligations
and liabilities, actual or contingent which now or at any time shall become due
or owing by the Borrower to the Bank on any account or accounts or in any manner
whatsoever whether on foot of bills of exchange, promissory notes, loans,
credits, advances, leasing, guarantees, indemnities, interest commission,
discount liability in connection with foreign exchange transactions, Bank
charges and expenses or otherwise howsoever and whether the Borrower shall be
liable therefore alone or jointly with any other person or persons as principal
or surety and whether such amounts owing be in respect of principal, interest or
otherwise. Accordingly, the list of security held and security required or
security otherwise described as set out in the Offer Letter is deemed to be
incorporated in every Facility Letter or other agreement concerning the
indebtedness of the Borrower to the Bank which has been entered or shall be
entered into between the Borrower and the Bank from time to time and is deemed
to be required as security for the indebtedness of the subject thereof. The
foregoing two sentences are without prejudice to the terms and conditions of the
security listed in the Offer Letter and to the Bank’s rights and remedies
thereunder or otherwise.

       

      Unless
written request is received from the customer, any security documentation
conferring ownership rights will be held as safekeeping by the
Bank.

       

       

      4.
Joint Borrowings

       

      Where an
advance is granted in a personal capacity, to two or more persons, the liability
to the Bank shall be joint and several. Where the expression “the Borrower”
refers to two or more persons, these terms and conditions shall be construed as
if they were in the plural mutatis mutandis and the covenants and agreements on
the part of the Borrower shall have effect as if they were joint and several
covenants and agreements by such persons.

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      5.
Interest

       

      
        	
                 
      

              	
                (i)
      Bank of Ireland Rates:

              

      

       

      The
rate(s) set out in this Offer Letter, whether fixed or variable will be
determined by the Bank by reference to the Borrower’s category, term, purpose
and security proposed for the facility. Fixed rates are rates fixed for a period
in excess of one year, determined on the date of original drawdown.

       

      -
Variable

       

      On a rate
change occurring in the Bank of Ireland Variable Rates, (whether Prime or
otherwise), the new rate will automatically apply to the facility as and from
the date of such change and the Bank will give details thereof to the Borrower
in the statement which issues following such rate changes.

       

      -
Fixed

       

      Any fixed
rate quoted is the prevailing fixed rate as of the date of offer. Due to
possible fluctuations in interest rates, the Bank cannot guarantee that the said
fixed rate will apply on drawdown. This being the case, the Borrower can decide
to accept the fixed rate applying on the date of drawdown or take a variable
rate. At the end of a fixed rate period, the Borrower may request the Bank to
provide a further fixed rate period, based on the then existing fixed rate or
may revert to the normal variable rate.

       

      However,
the provision of any further fixed rate period from time to time, or any
conversion referred to in Clause 6 (2)(b) hereof, will be at the sole discretion
of the Bank. If no further fixed rate period is granted at the end of any
particular fixed rate term, the facility will revert to a variable rate. Either
way, the new rate applying will be notified to the customer.

       

      On
occasion, the Bank, on request, will quote fixed rates which are tied to the
money markets. These should be viewed as Market Related Loans for the purpose of
liquidity costs, margins, drawdown and rollover procedures. The Cost of Funds
will be agreed with the customer on an individual basis prior to
drawdown.

       

      (ii)
Market Related Rates

       

      These are
Market Related Rates and are fixed for periods not exceeding 12 months. The
Market Related Rate(s) set out in this Offer Letter will be determined by the
Bank, with reference to three components:

       

      (la)
Cost of Funds

       

      The rate
determined by the Bank on the date of drawdown and calculated by reference to
the rate at which the Bank can borrow money on the Euro Interbank Market, for a
period corresponding to the relevant interest rate period. The interest rate
will be set on the date of drawdown and shall be reset on the first day of each
interest rate period.

       

      OR

       

      (1b)
EURIBOR

       

      The rate
determined by the Bank, two Rate Fixing Days prior to drawdown and calculated by
reference to the rate at which Euro Jnterbank term deposits, (quoted for spot
value on an adjusted 365 day count basis, for a period corresponding to the
relevant interest rate period) are being offered within the EMU zone, by one
prime bank to another at 11.00 am. (Brussels time).

       

      Euribor
will be quoted to the Bank on a 360 day count basis, adjusted to a 365 day count
to take account of existing market practice in Ireland. The amount of interest
will vary only to the extent of differences attributable to rounding, when the
rate is adjusted from 360 to 365 days.

       

      Euribor
can be availed of on any Rate Fixing Day. Rate Fixing Day means any day on which
banks are open for general business in Ireland and ‘Target’ is operating.
‘Target’ means the ‘Trans European Automated Real-Time Gross Settlement Express
Transfer’ System to facilitate, inter alia, large value inter-bank same day
payments, which is scheduled to operate every day excluding Saturdays, Sundays,
Christmas Day, 26th December, New Year’s Day, Good Friday, Easter Monday and 1st
May.

       

      (2)
Liquidity Costs /Reserve Asset Cost

       

      Such
additional percentage rate as the Bank shall determine to be necessary to
compensate the Bank, for the cost to the Bank, during the period of the
facility, of funding or maintaining a facility in the relevant amount, by reason
of the Reserve Asset Requirement relative to such period. Reserve Asset
Requirement means any liquidity, reserve ratio, special deposit or similar
requirement (or other requirement having the same or similar purpose) of any
Regulatory Authority, whether or not having the force of Law with which the Bank
has complied.

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      (3)
Bank Lending Margin

       

      The
margin is as stated earlier in this Offer Letter. Such margin may be increased
at any time, at the discretion of the Bank, if, in the opinion of the Bank,
there is an Event of Default or failure to complete and deliver security in the
form specified in this Offer Letter or where the Bank has permitted drawdown
without satisfaction of Conditions precedent in this Offer Letter. Such increase
in margin will be notified to the Borrower in writing and will be effective from
the date specified therein.

       

      Market
Related Drawdown/Rollover Procedures

       

      Drawdowns
and rollovers of facilities may only be accommodated on a Business Day. For a
facility which will be determined, inter alia, by reference to Euribor, the Bank
must be advised on a Business Day, which is two Rate Fixing Days prior to date
of the proposed drawdown. For all other facilities, the Bank may be advised on
the day of drawdown.

       

      All
facilities based on Market Related Rates are subject to interest rate period
determined on the date of original drawdown or such other period (i.e. 1, 3, 6
or 12 months), as may be agreed between Banker and Borrower.

       

      On the
termination of the original interest rate period and all subsequent interest
rate periods determined, unless the Bank is contacted by the Borrower in
accordance with these provisions, the Bank will rollover the facility for the
same interest rate period, as originally determined, at the prevailing interest
rate on the date of rollover, for the relevant interest period.

       

      In the
case of a rate being determined, inter alia, by reference to Euribor, the rate
applicable will be set two Rate Fixing Days prior to rollover.

       

      The
Borrower will be notified in writing of the new interest rate and next rollover
date.

       

      Calculation
of Interest and Conversions

       

      For all
facilities set out in this Offer Letter, the Bank will determine the rate of
interest. Interest will be calculated and accrued daily on the basis of a 365
day count and be computed and payable by the Borrower on the daily balance
outstanding (after adjustment is made for items in the course of collection) on
the facility and shall be compoundable at such quarterly or other periodic rests
as the Bank, in its absolute discretion, shall determine and in accordance with
the Bank’s practice for accounts, from time to time.

       

      For all
facilities subject to a repayment schedule, any variation in the interest rate
(whether arising because of an adjustment of interest rates, as between one
fixed rate period and another fixed rate period or otherwise) may be
accommodated at the discretion of the Bank by way of:

       

      
        (a)   an
adjustment to the amount of the repayments during the remaining period of the
facility:

      

       

      
        or

      

       

      
        (b)  an
adjustment of the number of repayments within the remaining period of the
facility:

      

       

      or

       

      (c)  an
adjustment in the amount of the final repayment.

       

      If no
such adjustment is made, repayments will continue until the facility, together
with interest, is repaid notwithstanding that this may alter the period
originally envisaged.

       

      As and
when it is considered necessary or desirable, the Bank will make such
adjustments, amendments or variations to the terms of this letter as it
considers appropriate, due to the impact of the third stage of EMU and any
consequent changes in market practices, so as to put the Bank in the same
position, as far as possible, as it would have been in if no such event had
occurred.

       

      Change
in the Method of Calculation of Interest for all facilities set out in this
Offer Letter

       

      The
method for calculating interest and the interest rate may be changed in respect
of all facilities from time to time at the Bank’s absolute discretion, whether
to take account of a change in prevailing market conventions in Ireland or
otherwise. In the event of such change occurring during the continuance of this
facility, the Bank will give to the Borrower one month’s prior notice that such
change is to take place with effect from the date of expiry of such
notice.

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      6.
Early Repayment

       

      (1)
Variable Rates

       

      Repayments
in excess of those stated in this Offer Letter may be made at any time during
the term of a variable rate advance, without penalty.

       

      (2a)
Fixed Rates/ Market Related Rates

       

      Early
repayments in minimum amounts of EUR10,000 or multiples thereof, are allowed on
market related and fixed rate facilities/loans, subject to the provisions under
‘ Funding Sum’ clause below, and to the Borrower providing 3 Business days prior
notice, in writing, to the Bank. Any such notice shall be irrevocable and shall
oblige the Borrower to repay the amount, on the date specified.

       

      Early
repayments will be applied in inverse order of maturity and amounts repaid will
not be available for redrawing.

       

      (2b)
Funding Sum

       

      There
will be a funding sum payment by the Borrower in the event of:

       

      
        	
                 
      

              	
                ·

              	
                early
      repayment in full

              

      

       

      
        	
                 
      

              	
                ·

              	
                partial
      early repayment(s)

              

      

       

      
        	
                 
      

              	
                ·

              	
                conversion
      to a variable interest rate

              

      

       

      
        	
                 
      

              	
                ·

              	
                conversion
      to another fixed interest rate, within the initial fixed rate period or
      any further fixed rate period

              

      

       

      
        	
                 
      

              	
                ·

              	
                failure
      to drawdown a facility for which the rate has been booked with the Bank in
      advance

              

      

       

      The
funding sum will be the amount calculated by the Bank of all losses, costs and
expenses arising from such events. A certificate of an officer of the Bank as to
the amount of the funding sum shall be conclusive in the absence of manifest
error.

       

       

      7.
Overdrafts

       

      7A. Overdraft
Limit

       

      1.      Any
overdraft must operate within an authorized credit limit.

       

      2.      A
basic requirement is that an overdraft must revert to credit for at least 30
days in all, whether consecutively or otherwise, during the 12 month period from
either the date of sanction or from the date of any subsequent new permission,
if granted, and for any subsequent twelve month period. Where an overdraft fails
to meet the above requirement the interest rate is revised and a higher rate
will be charged once for that 12 month period retrospectively. The higher rate
will consist of the then applicable interest rate plus 0.5% per annum of the
average full overdraft balance which is applied at the following quarters
interest posting. The above- mentioned rate may at any time and from time to
time be changed by the Bank at its absolute discretion subject to prior approval
of the relevant regulatory authority.

       

       3.    
Any and all amounts owing by the Borrower to the Bank from time to time under
any overdraft facility whether listed in the Offer Letter or not shall be
repayable on the Bank’s demand at any time and the Bank shall be entitled to
cancel its commitment to lend to the Borrower or to honour an instruction of the
Borrower in relation to any such overdraft facility by such demand.

       

      7B.
Interest Set Off

       

      Should
the Bank agree to a formal set off arrangement for interest purposes between two
or more current accounts, a 1% per annum charge (unless otherwise specified) is
payable on the current account balances set off. Interest set off is charged to
the Borrower’s account and payable at the same time and in the same manner as
the normal interest charge.

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      7C.
Referral Item Fees

       

      Any debit
or cheques that cause an account to exceed its approved limit is/are subject to
a referral item fee of €4.63 (currently) per item.

       

       

      8.  Interest
Surcharges

       

      8A.
Interest Surcharges Rates and amounts on which Interest Surcharges will be
charged

       

      An
additional interest charge at the rate of 0.75% per month or part of a month
(i.e. 9% per annum) subject to a minimum of €2.54 per month will be paid by the
Borrower on the following amounts;

             

      
        
          	(i) 	any
      amount not paid by the Borrower to the Bank by its due date.
	 	 
	
                  (ii)

                	
                  any
      amount not repaid on the Bank’s demand where such demand is made in the
      case of an Overdraft facility or other facility repayable on
      demand;

                

        

      

       

      
        	
                (iii)

              	
                any
      outstandings which become repayable by the Borrower to the Bank following
      the occurrence of an Event of Default pursuant to Clause 12 of these Term
      and Conditions; and

              

      

       

      
        	
                (iv)

              	
                the
      amount of any overdrawn balance which has not been authorised by the
      Bank’s prior agreement or any overdrawn balance which is in excess of the
      overdraft limit authorised by the Bank’s prior
  agreement.

              

      

       

      
        8B.
Periods of Accrual of Interest Surcharge

      

       

      The
additional interest charges provided for above shall accrue;

       

      
        	
                (i)

              	
                in
      the case of any sum not paid by the Borrower on its due date, from such
      date until the relevant sum is paid in
full;

              

      

       

      
        	
                (ii)

              	
                in
      the case of any sum repayable by the Borrower on the Bank’s demand (and
      whether such sum is outstanding by way of Overdraft or otherwise), from
      the date of such demand until the relevant sum is repaid in
      full;

              

      

       

      
        	
                (iii)

              	
                in
      the case of any outstandings which have become repayable by the Borrower
      to the Bank pursuant to Clause 12 of these Terms and Conditions (Events of
      Default), from the date from which such outstandings become payable or
      repayable to the Bank pursuant to Clause 12 of these Terms and Conditions
      until such outstandings are repaid or discharged in
  full;

              

      

       

      
        	
                (iv)

              	
                in
      the case of any unauthorised Overdraft balance or any excess over an
      authorised Overdraft balance, from the date such unauthorised Overdraft
      balance or excess occurs until it is repaid in full;
  and

              

      

       

      
        	
                (v)

              	
                in
      all cases both before and after judgment as
  appropriate.

              

      

       

      
        8C.
Surcharge Interest - Additional

      

       

      The
Borrower shall discharge interest due to the Bank at the rate relevant to the
amounts owing by the Borrower to the Bank in addition to any amount of
additional interest as provided for in this Clause 8.

       

      
        8D.
When and How Surcharge Interest is Payable

      

       

      The
additional interest charge provided for in this Clause 8 shall be payable by the
Borrower to the Bank at the same time and in the same manner as the relevant
interest charge, currently quarterly.  Such additional interest shall
be charged to the Borrower’s account or accounts with the Bank.

       

      
        8E.
Liquidated Damages

      

       

      Any such
additional interest charge as is provided for in this Clause 8 is intended to
constitute liquidated damages to the Bank including compensation for its
increased administrative and related general costs occasioned by:

       

      
        	
                (i)

              	
                the
      Borrower’s default in payment of any amount when due including when such
      amount becomes due on the Bank’s demand; and
or

              

      

       

      
        	
                (ii)

              	
                the
      Borrower causing any unauthorised Overdraft or any unauthorised excess
      over an authorised Overdraft limit to occur; and
  or

              

      

       

      
        	
                (iii)

              	
                the
      Borrower otherwise defaulting in respect of the Borrower’s obligation to
      the Bank.

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      
        8F.
Change in Interest Surcharges

      

       

      The rate
or minimum amount of additional interest charge provided for in Clause 8A above
may at any time and from time to time be changed by the Bank at its absolute
discretion, subject to approval by the relevant Regulatory
Authority.

       

      In the
event of any such change or alteration occurring during the continuance of a
facility, the Bank will give the Borrower a minimum of one month’s prior notice
that such change or alteration is to take place.

       

      Notice
under this Clause 8F. may be given by the Bank to Borrower by any means the Bank
considers reasonable.

       

       

      9.
Legal & Other Charges

       

      The
Borrower shall pay to the Bank on demand, all legal charges and other costs and
expenses in addition to any duty or out-of-pocket expenses incurred by the Bank,
in connection with the preparation, negotiation, execution, enforcement and
realisation of the facility(ies) or any security held from time to time. The
Borrower hereby authorises the Bank to debit any accounts with the Bank or with
any other Bank or financial institution in the name of the Borrower with any and
all of the foregoing amounts, as they arise from time to time.

       

      Any
survey or valuation fees will be the responsibility of the
Borrower.

       

       

      10.
Covenants

       

      10.1
The Companies Act 1990 (“the Act”)

       

      (a) Where
the Borrower is a limited company, the following covenants will
apply:

       

      
        	
                i.

              	
                The
      Borrower will notify the Bank if restrictions are imposed on any of its
      shares, pursuant to any section of the
Act.

              

      

       

      
        	
                ii.

              	
                The
      Borrower will notify the Bank of any report made by any inspectors,
      arising from an investigation of the Borrower or its ownership and will
      provide a copy of the report, if one has been supplied to the
      Borrower.

              

      

       

      
        	
                iii.

              	
                The
      Borrower will notify the Bank if any Disclosure Order is made, relating to
      any shares or debentures in the Borrower’s name, pursuant to the
      provisions of the Act.

              

      

       

      
        	
                iv.

              	
                The
      Borrower will notify the Bank if any director has been the subject of a
      Declaration Order or a Disqualification
Order.

              

      

       

      (b) If
shares (“The Shares”) in a company are being taken as security, the following
covenants will apply:

       

      
        	
                i.

              	
                The
      Borrower will notify the Bank if any restrictions are imposed on the
      Shares which it holds by way of security, pursuant to any provisions of
      the Act.

              

      

       

      
        	
                ii.

              	
                The
      Borrower will notify the Bank and the PLC in which the Shares are held if,
      during the duration of the facility, the interest of the Borrower in the
      Shares of the PLC, at any time equals or exceeds 5% of any class of shares
      in the PLC carrying the rights to vote at general
  meetings.

              

      

       

      
        	
                iii.

              	
                The
      Borrower will comply with any notice served on him by the PLC to furnish
      information relating to the Shares of the PLC and to notify the Bank if
      any such notice has been served on
him.

              

      

       

      10.2
Environmental Covenant

       

      The
Borrower covenants with the Bank that it will obtain all requisite environmental
licences, within the meaning of the Environmental Protection Agency Act 1992 as
amended, or analogous legislation, and will comply with the terms of all such
licences and all other environmental law, concerning the protection of human
health or the environment or the conditions of the work place or the generation,
transportation, storage or disposal of dangerous substances.

       

      The
Borrower will notify the Bank of all communications received in respect of any
modification, suspension or revocation of any environmental licence applicable
to it and/or any alleged breach of any Environmental Law.

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      10.3
Environmental Indemnity

       

      The
Borrower hereby indemnifies the Bank against any costs or expenses suffered or
incurred, which arise by virtue of an act or alleged breach of the Environmental
Protection Agency Act 1992 as amended, or analogous legislation or other
applicable environmental law concerning the protection of human health or the
environment or the conditions of the work place or the generation,
transportation, storage or disposal of dangerous substances.

       

       

      11.
Indemnity

       

      By
acceptance of this Offer Letter, the Borrower agrees to indemnify the Bank
against any liability which might accrue to the Bank for Capital Gains Tax under
the terms of Section 56 of the Finance Act 1983, as the same may be amended or
varied from time to time.

       

      The
Borrower hereby fully indemnifies the Bank from and against:

       

      (i) all
unpaid commission, fees, interest, charges (including legal charges), losses,
costs and expenses payable in respect of the Borrowers liabilities together with
any funding fees, broken funding costs, damages, liabilities or any other amount
due or to become due under this Offer Letter and

       

      (ii) any
liabilities in connection with interest and foreign exchange transactions or any
liability in connection with interest and currency hedging and swap agreements,
forward rate agreements, interest and currency futures or options, interest rate
caps, interest rate floors, interest rate collars, gilt and cash options and any
other forms of financial instruments which may be incurred by the Bank in
respect of the Borrower’s liabilities under this Offer Letter arising out of any
Event of Default or any drawdown, rollover or repayment/early repayment of the
facilities under this Offer Letter or otherwise in connection with these
facilities or the security in respect of these facilities or which may be
incurred in liquidating or deploying deposits from third parties acquired to
make, maintain or fund the facility/facilities (or any part of
it/them).

       

       

      12.
Events of Default

       

      Notwithstanding
the demand nature of certain facilities, Bank of Ireland reserves the right to
terminate its commitment to transact business hereunder and to call for the
immediate early repayment of all outstandings on the occurrence of any Event of
Default, unless such Event of Default has been waived in writing by the
Bank.

       

      The
following will constitute an Event of Default:

       

      
        	
                i.

              	
                The
      breach of any covenant, condition, or term outlined herein (if any), or in
      associated documentation.

              

      

       

      
        	
                ii.

              	
                If
      the Borrower defaults in the payment of any principal, interest, or other
      amount payable hereunder when due.

              

      

       

      
        	
                iii.

              	
                The
      death or bankruptcy of the Borrower (if the Borrower is an
      individual).

              

      

       

      
        	
                iv.

              	
                If
      any security over the assets of the Borrower or part thereof, becomes
      enforceable, whether or not the security-holder thereof takes any steps to
      enforce the same.

              

      

       

      
        	
                v.

              	
                If
      the Borrower, or any member of the Group, stops, or threatens to stop,
      payment to its creditors, or ceases, or threatens to cease to carry on its
      business, or any part thereof, or changes the nature of its business, or
      any part thereof, which is material to the Borrower and/or any member of
      the Group.

              

      

       

      
        	
                vi.

              	
                If
      an Order is made or an effective resolution is passed for the winding up
      of the Borrower or any member of the Group, other than for the purpose of
      amalgamation or reconstruction, the terms of which have been agreed by the
      Bank.

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                vii.

              	
                If
      a Receiver is appointed over any of the assets of the Borrower or any
      member of the Group.

              

      

       

      
        	
                viii.

              	
                If
      a petition is presented before any competent court, or an Order made, or a
      notice published or issued by any competent court or any analogous
      proceeding, or any action whatsoever is taken for the appointment of an
      Administrator, an Administrative Receiver, an Examiner, a Liquidator, a
      Receiver, a Trustee or any similar Officer to the Borrower or any related
      Company or any member of the Group, or over all or a substantial part of
      the assets of any Related Company. A Related Company will have the meaning
      ascribed to it in Section 4 (5) of the Companies (Amendment) Act
      1990.

              

      

       

      
        	
                ix.

              	
                If
      a petition is presented for the winding up of the Borrower or any member
      of the Group by the appropriate Minister, on foot of an investigation, or
      where a Court decides to make an Order for the winding up of the Borrower
      or any member of the Group, under the provisions of the Companies Act
      1990.

              

      

       

      
        	
                x.

              	
                If,
      in the opinion of the Bank, there occurs any material adverse change in
      the Borrower’s business, undertaking, assets or financial
      condition.

              

      

       

      
        	
                xi.

              	
                If
      it becomes impossible or unlawful for the Borrower or the provider of
      security, to comply with or fulfill any of its obligations in this letter,
      or for the Bank to exercise any of its rights or
  powers.

              

      

       

      
        	
                xii.

              	
                If
      a guarantee, indemnity or letter of credit, which is being relied upon by
      the Bank ceases, for any reason, to be in full force or effect or if a
      party providing such a guarantee, indemnity or letter of credit notifies
      or purports to notify the Bank of his, her or its intention to terminate
      his, her or its liability
thereunder.

              

      

       

      
        	
                xiii.

              	
                If
      any provision of this letter is, or becomes invalid or
      unenforceable.

              

      

       

      
        	
                xiv.

              	
                If
      the Bank becomes aware that restrictions have been imposed on any shares
      of the Borrower, pursuant to the provisions of the Companies Act
      1990.

              

      

       

      
        	
                xv.

              	
                If
      a Disclosure Order is made, which relates to any shares or debentures of
      the Borrower, pursuant to the provisions of the Companies Act
      1990.

              

      

       

      
        	
                xvi.

              	
                If
      a Declaration Order or a Disqualification Order is made under the
      Companies Act 1990, affecting a Director of the
  Borrower.

              

      

       

      
        	
                xvii.
      

              	
                If
      the Borrower does not comply with all licenses necessary for the conduct
      of his/her/its business in a lawful manner, and without prejudice to the
      generality of the foregoing, all applicable Environmental Laws or
      Environmental Licences and that non-compliance has, in the opinion of the
      Bank, a material adverse affect on its financial condition or on its
      ability to perform its obligations under this
  letter.

              

      

       

      
        	
                xviii.

              	
                If
      any indebtedness or obligation of the Borrower, or any member of the Group
      responsible for the repayment of any part of Bank debt, becomes due and
      payable prior to the specified due date, as a result of any default
      thereunder or is otherwise not paid when
due.

              

      

       

      
        	
                xix.

              	
                If
      any event similar or analogous to those set in paragraphs (i) to (xviii)
      occurs which affects a person providing a guarantee, indemnity or letter
      of credit relied upon by the Bank.

              

      

       

      
        	
                xx.

              	
                If
      you do not meet the loan repayments of your loan, your account will go
      into arrears.  This may affect your credit
    rating.

              

      

       

       

      13.
European Investment Bank Funding

       

      Where any
part of the above facilities has been funded by way of advance from the European
Investment Bank (“EIB”) to the Bank:-

       

      
        	
                 
      

              	
                1.

              	
                The
      Borrower shall use the facility exclusively for the purpose outlined
      above

              

      

       

      
        	
                 
      

              	
                2.

              	
                The
      Borrower shall from time to time permit persons appointed by the EIB to
      inspect sites, installations and works on which any part of the facilities
      provided herein have been expended and will provide such persons with all
      the necessary information and assistance for the purposes of their
      inspection.

              

      

       

      
        	
                 
      

              	
                3.

              	
                The
      Borrower shall comply with any Environmental
Law

              

      

       

      
        	
                 
      

              	
                4.

              	
                The
      Borrower shall confirm to the Bank that the Borrower is not a defendant in
      proceedings brought by the European
Commission

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      14.
No Assignment

       

      The
Company shall not be entitled to assign the benefit of this Offer
Letter.

       

      The Bank
shall be entitled to transfer and/or assign the benefit of this Offer Letter and
the benefit of the security outlined in this Offer Letter to any subsidiary of
the Bank or any other Bank or company. This Offer Letter shall enure to the
benefit of the successors, transferees and assigns of the Bank.

       

       

      15.
Disclosure of Information

       

      The Bank
may make appropriate enquiries in relation to and arising from the offer and may
disclose information relating to the facilities to any credit reference bureau
or agency.

       

      The Bank
is hereby authorised to disclose information relating to the facilities or any
security held to any person acting as agent of the Bank in connection with the
facilities or any such security held.

       

      The
Borrower irrevocably authorises and consents to any future transfer or
assignment of the debt and any security held, as part of a loan transfer and
securitisation scheme or otherwise and to the disclosure of any information
relating to the debt and any security held to the transferee, assignee or other
party, whether in connection with a loan transfer or securitisation scheme or
any other type of transfer or assignment.

       

      To the
extent that any of the information referred to in the foregoing paragraphs
constitutes personal data, within the meaning of the Data Protection Act 1988 as
amended, the Borrower agrees that the foregoing authorisations shall constitute
appropriate consent for the purposes of the Data Protection Act 1988 as
amended.

       

       

      16.
Notice Provisions

       

      Any
notice or demand to be given hereunder shall be in writing and shall be deemed
duly given, upon being left at the Borrower’s last known address or registered
office or place of business or 48 hours after having been posted by pre-paid
post to the Borrower at the Borrower’s last known address or registered office
or place of business.

       

       

      17.
Law and Jurisdiction

       

      This
Offer Letter shall be governed by and construed in accordance with the laws of
Ireland.

       

      The
Borrower hereby irrevocably submits to the jurisdiction of the Courts in Ireland
for all purposes of the Offer Letter.

       

      The
Borrower irrevocably agrees that nothing herein shall preclude the right to
bring proceedings in any other Court of competent jurisdiction as the Bank may
elect and that legal proceedings in any one or more jurisdiction shall not
prejudice legal proceedings in any other jurisdiction.utmd10k123108ex10-2.htm

    
      

      

    

    
      EXHIBIT
11

      

      GUARANTEE
and INDEMNITY

      by
UTAH MEDICAL PRODUCTS, INC. to BANK OF IRELAND

      

      

      Dated
the 13th day of June, 2008

      

      __________________________________

      

      

      

      

      

      UTAH
MEDICAL PRODUCTS INC

      

      -
and -

      

      THE
GOVERNOR AND COMPANY OF THE BANK OF IRELAND

      

      

      

      

      ____________________________________________________________________

      

      G
U A R A N T E E  and   I N D E M N I T Y

      ____________________________________________________________________

      

      

      

      

      

      
        
          
            	
                    BRANCH

                  	
                    :

                  	
                    ATHLONE

                  
	
                    ACCOUNT
      OF

                  	
                    :

                  	
                    UTAH
      MEDICAL PRODUCTS LIMITED

                  
	
                    EXECUTED
      BY

                  	
                    :

                  	
                    UTAH
      MEDICAL PRODUCTS INC

                  
	
                    AMOUNT

                  	
                    :

                  	
                    €2,621,000

                  
	
                    CURRENCY

                  	
                    :

                  	
                    EURO

                  

          

        

      

      

      

      

      

      Richard
Black Solicitors

      Beechfield
House

      Clonee,

      Dublin
15

      

      

      

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      G
U A R A N T E E  and  I N D E M N I T Y

      

      THIS GUARANTEE AND INDEMNITY
dated this 13th day of June Two Thousand and Eight.

      

      BETWEEN: UTAH MEDICAL PRODUCTS, INC. of
7043 South 300 West Midvale, UT 84087 (hereinafter called “the Guarantor” which
expression shall include its, successors or assigns) and THE GOVERNOR AND COMPANY OF THE BANK
OF IRELAND (hereinafter called “the Bank” which expression shall include
its successors or assigns).

      

      Whereas
the Guarantor has requested and the Bank has agreed to grant and/or continue
accommodation to UTAH MEDICAL
PRODUCTS LIMITED of Garrycastle, Athlone, Co. Westmeath (hereinafter
called “the Customer”) upon the Guarantor executing a Guarantee in favour of the
Bank on the terms and conditions hereinafter appearing.

      

      Now
therefore IT IS HEREBY AGREED
AND DECLARED as follows:-

      

      A.           In
consideration of the Bank making or continuing advances or otherwise giving
credit or affording banking facilities to the Customer, for as long as the Bank
may think fit, the Guarantor unconditionally and irrevocably guarantee and agree
as a continuing obligation to pay to the Bank on demand all sums of money
(hereinafter called the “ultimate balance”) which are now or shall at any time
be owing or remain unpaid to the Bank anywhere from or by the Customer whether
as principal or surety and whether solely or jointly with any other party or
from any firm in which the Customer may be a partner, upon current overdraft
accounts, promissory notes or bills discounted or paid and other loans, credits,
leases, indemnities or advances made to or for the accommodation or at the
request of the Customer solely or jointly or of any such firm as aforesaid
whether for actual or contingent liability or any liability in connection with
foreign exchange transactions or any liability in connection with interest and
currency hedging and swap agreements, forward rate agreements, interest and
currency futures or options, Interest Rate Caps, Interest Rate Floors, Interest
Rate Collars, Gilt and Cash Options and any other forms of financial instruments
or pursuant to any guarantees, indemnities or on any other account or in respect
of money which the Customer is or shall become liable to pay to the Bank in any
manner whatsoever together with in all the cases aforesaid, all interest, as
well after as before any demand or judgment, discount and other bankers' charges
including legal charges occasioned by the preparation, negotiation and execution
of this guarantee or as otherwise may be incident to this or any other security
held by or offered to the Bank for the ultimate balance or by or to the
enforcement of any such security and any liability to stamp duty or any other
duties (all such monies being hereinafter referred to as “the Customer's
liabilities”) on a full and unqualified indemnity basis save and except any part
of the Customer's liabilities, the securing of which would contravene the
provisions of Section 31 of the Companies Act 1990 as the same be amended,
extended or re-enacted from time to time or any equivalent or like provision of
law PROVIDED ALWAYS that
the total amount ultimately enforceable against the Guarantor under this
guarantee shall not exceed the principal amount set out below and to the extent
they relate to such principal the following additional amounts:-

      

      
        	
                (i)

              	
                all
      unpaid interest accrued and payable in respect of the Customer's
      liabilities;

              

      

      

      
        	
                (ii)

              	
                all
      interest on the Customer's liabilities from the date of demand under or
      earlier determination of this guarantee until payment calculated at the
      rate and in the manner applicable to the relevant account of the
      Customer;

              

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                (iii)

              	
                all
      unpaid commission, fees, charges (including legal charges) and expenses
      payable in respect of the Customer's liabilities together with any broken
      funding costs, damages, liabilities and any liabilities in connection with
      interest and foreign exchange transactions or any liability in connection
      with interest and currency hedging and swap agreements, forward rate
      agreements, interest and currency futures or options, interest rate caps,
      interest rate floors, interest rate collars, gilt and cash options and any
      other forms of financial instruments which may be incurred by the Bank in
      respect of the Customer's liabilities;
and

              

      

      

      
        	
                (iv)

              	
                all
      such additional amounts as may be necessary in order that the net amounts
      which the Bank receives from the Guarantor hereunder after any taxes,
      levies, imposts, duties, deductions, withholdings or other charges
      referred to in Clause 24 hereof shall equal the respective amounts due
      under this guarantee.

              

      

      

      The
principal amount referred to above is:

      

      
        
          	
                  Amount

                	
                  Currency

                
	 
      	 
      
	
                  2,621,000

                	
                  Euro

                

        

      

      

      say Two
Million, Six Hundred and Twenty One Thousand Euro

      

      B.        This
guarantee is subject to the following terms and conditions:

      

      
        	
                1.

              	
                Unless
      the contrary intention appears, words in the plural shall include the
      singular.   References herein to the masculine gender shall
      include the feminine as the context admits and any reference in this
      guarantee to a “guarantee” shall be deemed to refer to this “Guarantee and
      Indemnity”.

              

      

      

      
        	
                2.

              	
                This
      guarantee shall be in addition to and not in substitution for any other
      guarantee for the Customer given to the Bank by the
    Guarantor.

              

      

      

      
        	
                3.

              	
                This
      guarantee shall be in addition to and shall not be in any way prejudiced
      or affected by any collateral or other security now or hereafter held by
      the Bank for all or any part of the liabilities hereby
      guaranteed.

              

      

      

      
        	
                4.

              	
                Although
      the ultimate liability of the Guarantor under this guarantee is not to
      exceed the limit hereinbefore specified, yet this guarantee shall be
      construed and take effect as a guarantee for the whole and every part of
      the ultimate balance owing by the Customer to the Bank and unless and
      until such balance has been paid in full by the Guarantor the Guarantor
      shall not be entitled to share in any security held by the Bank on account
      of that balance or to stand in the place of the Bank in respect of any
      security or money nor until such balance has been paid in full shall the
      Guarantor take any steps to enforce any right or claim against the
      Customer in respect of any monies paid by the Guarantor to the Bank
      hereunder or have or exercise any rights as surety in competition with the
      Bank.

              

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                5.

              	
                For
      the purpose of enabling the Bank to sue the Customer or prove against his
      estate or prove in the bankruptcy, winding up of, insolvency or
      examination by an examiner of or any analogous proceedings in relation to
      the Customer for the whole of the ultimate balance or to preserve intact
      the liability of any other party, the Bank may at any time place and keep
      for such time as it may think prudent any money received, recovered or
      realised hereunder on one or more separate or suspense accounts to the
      credit either of the Guarantor or of such other party as it shall think
      fit without any intermediate obligation on the part of the Bank to apply
      the same or any part thereof in or towards the discharge of the ultimate
      balance owing as aforesaid and without any intermediate right on the part
      of the Guarantor to sue the Customer or prove against his estate or in the
      bankruptcy, insolvency or winding-up of or in the examination by an
      examiner of or any analogous proceedings in relation to the Customer in
      competition with the Bank or so as to diminish any dividend or other
      advantage that would or might come to the Bank or so as to treat the
      liability of the Customer as
diminished.

              

      

      

      
        	
                6.

              	
                All
      monies received by the Bank from the Guarantor or the Customer or any
      other party liable to pay the same may be applied by the Bank to any
      account or item of account or to any transaction to which the same may be
      applicable.

              

      

      

      
        	
                7.

              	
                This
      guarantee shall not be considered as satisfied by any intermediate payment
      or satisfaction of the whole or any part of any sum or sums of money owing
      as aforesaid but shall be a continuing security and shall extend to cover
      any sum or sums of money which shall for the time being constitute the
      balance due from or unpaid by the Customer to the Bank upon any such
      account or accounts as aforesaid and so that where such balance exceeds
      the aforesaid limit of the liability of the Guarantor, the Bank may select
      the particular account or accounts which is or are to be regarded as
      secured by this guarantee.

              

      

      

      
        	
                8.

              	
                Demands
      under this guarantee may be made from time to time and may be withdrawn
      and subsequently made again and the liabilities and obligations of the
      Guarantor under this guarantee may be enforced irrespective
      of:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                whether
      any demands, steps or proceedings are being or have
  been

              

      

      
        	
                 
      

              	
                taken
      against the Customer, the Guarantor and/or any third party;
    or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                whether
      or in what order any security to which the Bank may be entitled in respect
      of the ultimate balance is
enforced.

              

      

      

      In any
case where the liability of the Customer to the Bank is in respect of a
liability of the Bank incurred on behalf of the Customer which is contingent a
demand for payment of any such liability may be made by the Bank at any time on
the Guarantor for an amount not exceeding the likely maximum amount as
determined by the Bank of that liability; notwithstanding that at the time of
such demand the Bank has not been called upon to make payment on behalf of or in
respect of the Customer.  In the case that any amount so paid by the
Guarantor to the Bank hereunder shall exceed the amount of the liability
actually incurred by the Bank upon crystallisation of such contingent liability
the Bank shall refund such excess amount together with any interest that would
have accrued thereon had a similar amount been placed on deposit with the Bank
for a similar period of time.

      

      In the
event of any demand being made under this guarantee, the Bank may continue its
account(s) with the Customer notwithstanding the calling in of the Guarantor's
liability in respect of the amount due from the Customer at the date when the
calling in takes effect and such amount due shall remain regardless of any
subsequent dealings in any such account(s).

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                9.

              	
                This
      guarantee shall be binding as a continuing security on the Guarantor until
      the expiration of one calendar month after the Guarantor shall have given
      to the Bank notice in writing to discontinue and determine
    it.

              

      

      

      
        	
                10.

              	
                In
      the event of this guarantee ceasing from any cause whatsoever to be
      binding as a continuing security on the
  Guarantor:-

              

      

      

      (a)        all
cheques, orders for payment, drafts, bills, notes and negotiable instruments or
securities drawn, made, endorsed or accepted by or for the account of the
Customer on the Bank or its agents and purporting to be dated on or before the
date when the guarantee ceases to be a continuing security (“the discontinuance
date”) although presented to or paid by the Bank or its agents after the
discontinuance date, and

      

      (b)        all
liabilities of the Customer to the Bank at the discontinuance date whether
certain or contingent or whether payable forthwith or at some future time or
times and also all credits then established by the Bank for the Customer shall
remain payable by the Guarantor under this guarantee notwithstanding that the
guarantee shall have ceased to be binding as a continuing security;
and

      

      (c)        The
Bank shall be at liberty without thereby affecting its rights hereunder to open
a fresh account or accounts or to continue any then existing account or accounts
with the Customer and no money paid from time to time into any such account or
accounts by or on behalf of the Customer and subsequently drawn out by the
Customer shall on settlement of any claim in respect of this guarantee be
appropriated towards or have the effect of payment of any part of the monies due
from or unpaid by the Customer or of the interest thereon at the time of this
guarantee ceasing to be so binding as a continuing security unless the party
paying in the money shall at the time of payment in writing direct the Bank
specially to appropriate it to that purpose.

      

      
        	
                11.(i)

              	
                The
      Bank shall be at liberty without any further consent from the Guarantor
      and without in any way affecting its rights against the Guarantor, and
      notwithstanding that it may increase or otherwise affect the liability of
      the Guarantor at any time to

              

      

      

      (a)        renew,
determine, enlarge or vary any credit to the Customer, to renew, vary, exchange,
release or abstain from perfecting or enforcing any other securities held or to
be held by the Bank for or on account of the monies intended to be hereby
secured or any part thereof, to renew bills and promissory notes in any manner
and to compound with, give time for payment to, accept compositions from and
make any other arrangements with the Customer or any other party in respect of
the liabilities hereby secured;

      

      (b)        vote
for or against any composition offered or made by the Customer or any person or
company in any winding up, bankruptcy, examination or arrangement matter whether
outside or under the control of the Court or value or give up therein any
security.

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                11.(ii)

              	
                The
      liabilities and obligations of the Guarantor under this guarantee shall
      remain in force notwithstanding any act, omission, neglect, event or
      matter whatsoever except the proper and valid payment of the ultimate
      balance and subject as hereinafter provided in this guarantee an absolute
      discharge or release of the Guarantor signed by the Bank and without
      prejudice to its generality the foregoing shall apply in relation to
      anything which would have discharged the Guarantor (wholly or in part) or
      which would have afforded the Guarantor any legal or equitable
      defence.

              

      

      

      
        	
                11.(iii)

              	
                The
      Bank may release or discharge any one or more of the persons a party to
      this guarantee from the obligations of this guarantee or compound with or
      otherwise vary or agree to vary the liability of or to grant time or
      indulgence or to make other arrangements with any one or more of them or
      any other person without prejudicing or affecting its rights against the
      other or others of such persons. Without prejudice to the generality of
      the foregoing none of the liabilities or obligations of any of the
      Guarantor under this guarantee shall be impaired by any provision of this
      guarantee being or becoming void, unenforceable or otherwise invalid under
      any applicable law as regards any other Guarantor for any reason
      whatsoever.

              

      

      

      
        	
                12.

              	
                A
      certificate in writing signed by any duly authorised officer of the Bank
      stating the amount at any particular time due and payable by the Guarantor
      to the Bank shall (save for manifest error) be conclusive evidence as
      against the Guarantor.

              

      

      

      
        	
                13.

              	
                The
      Guarantor hereby warrants and undertakes to the Bank that in respect of
      its liability under this guarantee it has not taken and will not take from
      the Customer, either directly or indirectly, without the consent of the
      Bank, any promissory notes, bills of exchange, mortgage, charge or other
      security whether merely personal or involving a charge on any property
      whatsoever of the Customer whereby the Guarantor or any person claiming
      through them by endorsement, assignment, or otherwise would or might on
      the bankruptcy, insolvency, winding-up of or examination by an examiner of
      or any analogous proceedings in relation to the Customer and to the
      prejudice of the Bank increase the proofs in such bankruptcy, insolvency;
      winding-up of or examination by an examiner of or any analogous
      proceedings in relation to the Customer or diminish the property
      distributable among the creditors of the Customer; and that as regards any
      such security as aforesaid which the Guarantor may have taken or may take
      with such consent as aforesaid the security shall be a security to the
      Bank for the fulfilment of the obligations of the Guarantor hereunder and
      shall forthwith be deposited by the Guarantor with the Bank for that
      purpose.

              

      

      

      
        	
                14.

              	
                In
      respect of the Guarantor's liability hereunder the Bank shall have a lien
      on all securities or other property of the Guarantor held by the Bank
      whether for safe custody or otherwise.   The Guarantor
      hereby authorise the Bank entirely at the discretion of the Bank (as well
      before as after demand hereunder) and without any notice to the Guarantor
      at any time to set-off and apply any credit balance on any account of the
      Guarantor with the Bank (whether current or otherwise or subject to notice
      or not) or any monies held by or to be held by the Bank to the order of
      the Guarantor, in satisfaction of any sum due and payable by the Guarantor
      to the Bank hereunder and for this purpose the Bank is authorised to
      purchase with the monies standing to the credit of any such account or any
      monies held or to be held as aforesaid such other currencies as may be
      necessary to effect such application.   The Bank shall not
      be obliged to exercise any right given to it by this clause
      14.

              

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                15.

              	
                No
      assurance, security or payment which may be avoided or proves to have been
      for any reason invalid under any enactments relating to bankruptcy or
      under the provisions of any other law governing the Customer or the
      Guarantor or any other person from whom the Bank receives any assurance,
      security or payment and no release, settlement, discharge, composition or
      arrangement which may have been given or made on the faith of any such
      assurance, security or payment shall prejudice or affect the Bank's right
      to recover from the Guarantor to the full extent of this guarantee as if
      such assurance, security, payment, release,  settlement,
      discharge, composition or arrangement (as the case may be) had never been
      granted, given or made.  The Bank shall be at liberty to retain
      any security held for the Guarantor's liability hereunder for a period of
      seven months after the repayment of all sums that are or may become due to
      the Bank from the Customer notwithstanding any release, settlement,
      discharge or arrangement given or made by the Bank provided that if at any
      time within the period of six months after such repayment either a
      bankruptcy petition shall be presented against the Customer or a petition
      shall be presented to a competent Court for an Order for the winding up of
      the Customer or the Customer shall commence to be wound up voluntarily or
      if a petition is presented before any competent Court or an Order is made
      or notice published or issued by any competent Court or any analogous
      proceedings or action is taken in connection with the appointment of an
      examiner, administrator, administrative receiver, trustee or any similar
      officer to the Customer or to a Related Company of the
      Customer.  The Bank shall be at liberty to continue to retain
      such security or any part thereof for and during such further period as
      the Bank may determine in which event such security shall be deemed to
      have continued to have been held by the Bank as security for the payment
      to the Bank of all or any sums which shall or may become due and owing to
      the Bank from and by the Guarantor either by virtue of the provisions of
      this guarantee or as a consequence of any Order made by a competent Court
      under any provisions of bankruptcy or company
  law.

              

      

      

      
        	
                 
      

              	
                For
      the purposes of this clause 15 Related Company has the meaning ascribed to
      it in Section 4 (5) of the Companies (Amendment) Act,
  1990.

              

      

      

      
        	
                16.

              	
                The
      non-execution or invalid execution of this guarantee by any one or more of
      those who have agreed to join in this guarantee will not affect the
      liability of those who have joined in and signed this
      guarantee.

              

      

      

      
        	
                17.

              	
                This
      guarantee shall not be discharged nor shall the Guarantor's liability be
      affected by reason of any failure or irregularity defect or informality in
      any security given by or on behalf of the Customer in respect of the
      monies or liabilities hereby secured nor by any legal limitation,
      disability, incapacity or want of any borrowing powers of or by the
      Customer or want of authority of any director, manager, official or other
      person appearing to be acting for the Customer in any matter in respect of
      the monies or liabilities hereby secured or any other circumstance which
      renders the liability of the Customer void or unenforceable and such
      monies or liabilities will be recoverable by the Bank from the Guarantor
      as sole, original and independent obligor upon first written demand by way
      of a full indemnity together with all losses, claims, costs, charges and
      expenses to which the Bank may be subject or which it may incur in
      connection with the Customer's liabilities or this
    guarantee.

              

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                18.

              	
                This
      guarantee shall not be discharged nor shall the Guarantor's liability be
      affected by any reduction occurring in, or other arrangement being made
      relating to the Customer's liabilities or any of them to the Bank as a
      result of any arrangement or composition, made pursuant to any of the
      provisions of the Companies (Amendment) Act, 1990 or any analogous
      provisions or made pursuant to any proceedings or actions whatsoever and
      whether or not following the appointment of an administrator,
      administrative receiver, trustee, liquidator, receiver or examiner or any
      similar officer to the Customer or over all or a substantial part of the
      assets (as the case may be) of the Customer and the Guarantor hereby agree
      with and to the Bank that the amount recoverable by the Bank from the
      Guarantor hereunder will be and will continue to be the full amount which
      would have been recoverable by the Bank from the Customer in respect of
      the Customer's liabilities and any of them had no such arrangement or
      composition as aforesaid been entered
into.

              

      

      

      
        	
                19.

              	
                Should
      the Customer be an unincorporated body, committee, partnership, trustees
      or debtors on a joint account, this guarantee shall remain effective
      notwithstanding any retirement, change, accession or addition as fully as
      if the person or persons constituting such body, committee, partnership,
      trustees or debtors on joint account at the date of the Customer's default
      or at any time previously was or were the same as at the date
      hereof.

              

      

      

      
        	
                20.

              	
                Any
      notice or demand hereunder shall be in writing and shall be expressed to
      be a notice given hereunder and shall be deemed to be given upon being
      left at or transmitted by telex to the correct telex number of the party
      to whom it is being transmitted or by telefax to the party to whom it is
      being sent or forty-eight hours after having being posted by prepaid
      ordinary post to the party to which it is to be given at its address
      hereinbefore set out or such other address as such party shall have
      previously communicated by notice to the party giving such first mentioned
      notice or demand.

              

      

      

      
        	
                21.

              	
                If
      the Bank wishes to assign and/or transfer its rights in respect of any
      facility or accommodation made available by the Bank to the Customer, or
      any part thereof the Bank shall be free to assign and/or transfer to the
      relevant assignee or transferee the benefit of this guarantee to the
      extent that it relates to such facility or accommodation or such part
      thereof and no such assignment or transfer shall affect this guarantee as
      far as concerns the right of the Bank in respect of the facilities or part
      thereof not so assigned or transferred.  This guarantee shall
      not be assigned by the Guarantor except with the prior consent in writing
      of the Bank and shall inure to the benefit of the successors, assigns and
      transferees of the Bank.  The Guarantor hereby irrevocably
      authorise the Bank for the purposes of or in connection with any proposed
      transfer or assignment to disclose to the proposed assignee or transferee
      all and any information and documentation in the Bank's possession in
      relation to the Guarantor or any of them as may be reasonably required by
      any such person in connection with such assignment or transfer and so far
      as such information constitutes personal data within the meaning of the
      Data Protection Act, 1988 this authority shall be a consent for the
      purposes of the said Act.

              

      

      

      
        	
                 
      

              	
                Without
      prejudice to the generality of the foregoing where the Bank holds the
      debt(s) in respect of which the security in the form of this guarantee is
      given on trust for a third party and/or where the Bank holds the debt(s)
      following an equitable assignment thereof to a third party the Guarantor
      hereby acknowledge and agree that the Bank may hold this guarantee on the
      same terms and with like effect as it holds the debt in respect of which
      the security in the form of this guarantee is being given and this
      guarantee will be in full force and effect in respect of all such debt(s)
      and the benefit of the security created by this guarantee is intended by
      the Guarantor and the Bank to be transferable in like manner and with the
      same effect as the debt in respect of which the security is
      given.

              

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                22.

              	
                A
      waiver by any of the parties hereto of any breach by any other party of
      any of the terms, provisions or conditions of this guarantee or the
      acquiescence of any party hereto to any act (whether of commission or
      omission) which but for such acquiescence would be a breach as aforesaid
      shall not constitute a general waiver of such term, provision or condition
      or of any subsequent act contrary
thereto.

              

      

      

      
        	
                23.

              	
                This
      guarantee is and will remain the property of the
  Bank.

              

      

      

      
        	
                24.

              	
                Every
      obligation of the Guarantor arising under this guarantee shall be
      discharged in the same currency as that of the corresponding principal
      debt of the Customer.  All payments to be made hereunder by the
      Guarantor shall be made to the Bank without any set-off or counter-claim
      and without any deduction for or on account of any present or future
      taxes, levies, imposts, duties, deductions or withholdings or other
      charges of whatever nature imposed, levied, collected, withheld or
      assessed unless the Guarantor is compelled by law so to
      do.   If so compelled the Guarantor shall pay such
      additional amounts as may be necessary in respect of their obligations
      hereunder in order that the net amounts after such taxes, levies, imposts,
      duties, deductions, withholdings  or other charges shall equal
      the respective amounts due
hereunder.

              

      

      

      
        	
                25.

              	
                If
      for the purposes of obtaining judgment in any court it is necessary to
      convert a sum due hereunder in one currency (in this Clause called “the
      first currency”) into another currency (in this Clause called “the second
      currency”) the rate of exchange which shall be applied shall be that at
      which in accordance with normal banking procedures the Bank could purchase
      the first currency with the second currency on the business day preceding
      that on which final judgment is given and the obligation of the Guarantor
      in respect of any such sum due from them to the Bank hereunder shall,
      notwithstanding any judgment in the second currency, be discharged only to
      the extent that on the business day following receipt by the Bank of any
      sum adjudged to be due hereunder in the second currency the Bank may in
      accordance with normal banking procedures purchase the first with the
      second currency; if the first currency so purchased falls short of the sum
      originally due to the Bank in the first currency, the Guarantor agrees
      that it shall, as a separate obligation and notwithstanding any such
      judgment, indemnify the Bank against such
  shortfall.

              

      

      

      
        	
                26.

              	
                The
      Guarantor confirms that on entering into this guarantee and the
      transactions contemplated by this guarantee and the assumption of their
      obligations hereunder that the Guarantor has not relied and does not rely
      upon any information or advice provided or any appraisal or investigation
      affected by the Bank or any of the professional advisers to the
      Bank.

              

      

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

       

      
        	
                27.

              	
                (i)

              	
                The
      Guarantor hereby waives all demands on the Customer for performance of any
      of the covenants, terms, conditions and agreements of any facility or
      accommodation or for payment of any moneys by the Customer hereby secured
      and also hereby waives the necessity for any presentment for payment
      notice of dishonour protest and such other notice (if any) which the Bank
      might otherwise be required to give in connection with the exercise of its
      rights or any of them in respect of any of the obligations contained
      herein or otherwise.

              

      

      

      
        	
              	
                (ii)

              	
                The
      Guarantor hereby agrees that in any litigation relating to these presents
      the aforesaid obligations or any security therefore it shall waive the
      right to interpose any defence based upon any claim of laches or set-off
      or counter-claim of any nature or
description.

              

      

      

      28.       The
Guarantor HEREBY
IRREVOCABLY:-

      

      
        	
                 
      

              	
                (i)

              	
                for
      the benefit of the Bank submits to the jurisdiction of the Courts of
      Ireland in relation to any claim or proceeding in connection with this
      Guarantee;

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                submits
      to any other jurisdiction in which the Guarantor has assets and the
      Guarantor hereby waives any objection to any claim that any suit, action
      or proceedings have been brought in any inconvenient
  forum;

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                appoints
      the Customer as its agent for the service of legal process out of the said
      Courts at the Customer's address herein or at the Customer's address last
      known to the Bank;

              

      

      

      
        	
                 
      

              	
                (iv)

              	
                confirms
      that service of legal process out of such Courts on the Customer shall be
      deemed due service upon the Guarantor for the purposes of such legal
      proceedings;

              

      

      

      
        	
                 
      

              	
                (v)

              	
                agrees
      where requested by the Bank, and without prejudice to any other method of
      service, to appoint an authorised agent for service of proceedings;
      and

              

      

      

      
        	
                 
      

              	
                (vi)

              	
                agrees
      that nothing herein shall affect the right to service of legal process in
      any other manner permitted by law.

              

      

      

      
        	
                29.

              	
                Each
      of the provisions of this guarantee is severable from the others and if at
      any time one or more of such provisions is or becomes illegal, invalid or
      unenforceable the validity, legality and enforceability of the remaining
      provisions hereof shall not in any way be effected or impaired
      thereby.

              

      

      

      
        	
                30.

              	
                This
      guarantee shall be governed by and construed in accordance with the laws
      of Ireland.

              

      

       

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      

      CORPORATE
GUARANTOR

      

      

      

      

      PRESENT when the Common Seal
of

      
        
          	
                  UTAH
      MEDICAL PRODUCTS, INC.

                	
                  (Place
      Seal here)

                

        

      

      was
affixed hereto:-

      

      

      __/s/ Kevin L.
Cornwell_____________

      Director

      

      

      __/s/ Paul O.
Richins_______________

      Director/Secretary

      

      
        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

      

      

      We
certify that we have this day received a copy of the above
Guarantee.

      

      

      

      

      
        
          
            	
                    Date:

                  	
                    ______12-
      June-2008__________

                  
	 
      	 
      
	 
      	 
      
	 
      	 
      
	
                    On
      behalf of

                  	 
      
	
                    Utah
      Medical Products Inc

                  	
                    __/s/ Kevin L.
      Cornwell_________

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