Document:

JOINT VENTURE AGREEMENT WITH AL NASAR TRADING & INDUSTRIAL CORPORATION

August 15, 2000

JOINT VENTURE AGREEMENT

This Joint Venture Agreement (the Agreement or This Agreement) is entered into
this August 14 , 2000  by and between

Affordable Homes of America, Inc, hereinafter referred to as AHOA, a Nevada
Corporation whose  principle place of business is 4505 W. Hacienda Ave. Unit
I-1, Las Vegas, Nevada, USA and

AL Nasar Trading & Industrial Corporation, LLC, hereinafter referred to as
ALNASR, a corporation  registered in the Kingdom of Saudi Arabia (registration
no. 3) whose principal place of business is Adam Khashoggi Vila, Al Washem
Street, Murabba's District, Riyadh, Kingdom of Saudi Arabia.

WHEREAS

A. AHOA is the holder of two United States of America patents (number
5,782,970 and 5,852,077), the  patents being issued for the manufactur ing of
a protected new and unique building material hereinafter  refer red to as the
product;

B. AHOA has through extensive research and experience, developed low c ost,
rapidly produced housing  models which meet minimum building stan dards for
the construction of homes in the United States and  in many, if not all
foreign countries.

C. AHOA is now capable and ready to offer the product and associated home
building expertise to a joint  venture partner, specifically ALNASR to
introduce, market and sell the product in the Kingdom of  Saudi Arabia and in
other countries mutually selected by ALNASR and AHOA.

D. Furthermore, AHOA is now capable and ready to (a) provide full complete
technical assistance in the  establishment of plants to manufacture the
product and (b) provide all the necessary expertise required  to build and
market low cost homes in accordance with models created by AHOA

AND WHERAS

A. ALNASR has the experience and contacts necessary to (a) market the product
in the countries selected in the Middle East and Northern Africa and (b)
create the infrastructure necessary for AHOA to build manufacturing plants for
products where feasible.

B. ALNASR possesses the professional network which will work diligently
towards obtaining various permits and licenses as required, both for the
introduction of the product in the countries selected and for the introduction
of the product in the countries selected and for the establishment of
factories to construct manufacturing facilities in line with this agreement;

C. Furthermore, ALNASR now desires to utilize its experience, expertise and
network to ensure the success of low cost housing models by bidding for
housing projects in countries selected at the very earliest opportunity to
this signing of this agreement.

NOW THEREFORE, In consideration of one United States Dollar (US$1.00) receipt
of which is hereby  acknowledged and the mutual promises and warranties
contained herein, AHOA and ALNASR hereby  agree as follows:

MARKETING AND PRODUCTION, LOW COST HOUSING 1. AHOA and ALNASR agree to the
formation of two corporations called Affordable Homes (Middle East), Inc., the
said corporations, unless otherwise agreed upon to be (a) a Canadian (British
Columbia) and (b) a United States of America (Nevada) corporation
respectively;

2. AHOA and ALNASR will each hold 50% of the Canadian and US corporation ( the
"JV Corporations") respectively

3. AHOA and ALNASR understand that each of the JV corporations will be obliged
to form alliances, partnerships or even JV agreements with third parties
depending upon the individual requirements and project mechanics in each
country:

4. AHOA will hereby grant the JV corporation the exclusive rights to (a)
introduce and market the product in various countries selected and (b)
construct manufacturing and production facilities to produce the product in
the said countries selected and furthermore, unless there are fundamental
reasons to the contrary AHOA agrees to transfer such exclusive rights to any
alliances, partnerships or JV undertaken with third parties in any particular
country.

5. AHOA will also grant the JV corporation the exclusive right, jointly, with
other parties or on their own accords, to bid on low cost housing contracts in
countries selected using AHOA's product and technical support.

6. AHOA warrants and guarantees that the product is feasible and further
warrants that all technical information provided to ALNASR isaccurate and will
be accurate at all times to the best of AHOA management

7. AHOA warrants that the product is viable building product and is one which
can be produced and used at a cost substantially less that the cost of
normally existing wood or concrete based housing materials

8. AHOA warrants that is engineer and technicians will be available for on
site presentations, reviews and studies in the countries selected to assist
ALNASR in any of its efforts envisaged in this Agreement

9. ALNASR agrees to use its best efforts to introduce, market and sell the
product in countries selected and further agrees that the first country will
be selected within 7 business days of the signing of this Agreement

10. ALNASR agrees that it will arrange for the preparation and submission of
competitive bids which will be based on the use of the product (either via
local production or via exports) to produce low cost housing in the country of
countries selected.

11. ALNASR may provide, as its own contribution towards the Joint Ventures
envisaged herein, land or buildings and such land or buildings will be
acceptable to AHOA, if (a) they are deemed suitable for the furtherance of the
objectives of the joint venture and (b) they are valued as per recognized
local or international standards;

12. Each party will have equal representation of the Board of Directors of the
corporation (per 1) unless such representation needs to be altered due to
locally prevailing regulations in which case both parties shall arrive at
mutually acceptance representations;

COSTS, FEES, EXPENSES & ORGANIZATION

13. Further to a Letter of Intent dated August 07, 2000, AHOA and ALNASR have
made their initial contributions of $US 25,000.00 (United States Dollars
Twenty Five Thousand only) each towards preliminary expenses designed to
identify the precise nature of opportunities for the product in all countries
in the Middle East and in certain countries forming the Northern Africa.

14. AHOA and ALNASR hereby, agree form this juncture, to operate the agreement
only through the JV Corporations (per 1);

15. AHOA and ALNASR hereby agree that both parties will contribute a specified
amount towards their share of initial capitalization of the corporations in
such a manner that preliminary travel cost, legal fees and other expenditures
are accounted for prior to formal capitalization pursuant to the actual
implementation of country specific joint ventures for production, marketing
and bidding purposes.

16. AHOA and ALNASR hereby agree to appoint Ms. Allison Eaton, President of
Africa Resources Corporation, Vancouver, as Secretary of the Canadian
corporation and AHOA appointee as Secretary of the US Corporation for the
primary purpose of maintaining and preparing books, records, timetables,
timelines and expense budgets;

17. AHOA and ALNASR hereby agree to appoint Mr. Stephen Nemerqut as General
Counsel for purposes envisaged in this Agreement;

IMMEDIATE OBJECTIVES

18. ALNASR, will, within 7 business days of the signing of this Agreement,
provide written confirmation of a least one country chosen for immediate
implementation of the objectives of the Joint Venture with AHOA, namely to
produce and manufacture the product and, further more, to promote low cost
housing projects;

19. ALNASR will within 7 business days of the signing of this Agreement,
provide a plan of action for a least four other countries where such plan will
be implemented depending upon the level of resources available to AHOA;

20. ALNASR and AHOA will cause the formation of the corporations (per 1) with
immediate effect so that the Secretaries of the Corporations can prepare and
formalize books, records, and budgets in line with the objectives of the
Agreement;

21. In order to fund the JV, and to complete other obligations under the
Agreement, AHOA will immediately conduct a private placement financing in
which cause AHOA will be actively assisted by Africa Resource Corporation and
by ALNASR;

22. ALNASR hereby agrees to make all arrangements, in conjunction with Africa
Resources, to enable AHOA to complete the targeted private placement for a sum
expected to be for a minimum of $7.00 million and for a maximum of $15 million
with the overriding provision that the bulk of the proceed excluding certain
operating and working capital costs agreed upon, will be utilized to fund
AHOA's share in the joint venture and/or joint ventures envisaged therein;

23. ALNASR is aware that shares issued as a consequence of the private
placement by AHOA will be restricted shares (either Rule 144 or Reg,'S') and
such shares may remain restricted for trading in the US either for a period of
12 months from the date of the issuance or pending AHOA effecting the
appropriate registration of the securities issued;

GENERAL

24. It is explicitly understood by ALNSAR that AHOA's near term and longer
term participation, especially in the manufacture of the product in one or
more countries, is reliant upon the success of the private placement (per 22)
and a failure to satisfactorily complete the private placement will make it
impossible for AHOA to meet the forthcoming commitments as outlined in this
Agreement;

25. The term of the Agreement shall be for a period of three (3) years with
and automatic renewal for twenty five (25) years if a minimum of US$
100,000,000.00 (United States Dollars One Hundred Million) of actual
construction value is achieved within three years where such construction
value will be the aggregate of construction expenditures in one or more
countries designated by ALNASR;26. Since the representation on the Board of
Directors (per 1) shall be equally split between AHOA and ALNASR, any
stalemate in voting- despite the best efforts of both parties- will be
submitted to an independent Arbitrator selected from the American Arbitrator
Association in which case the Arbitrator's decision will be final;

27. This agreement may be terminated for any of the following reasons:

a. By mutual consent  of  both parties

b. By the failure of ALNASR to secure necessary licenses permits and other
related arrangements in at least 1 country over a period of 12 months form the
date of signing this Agreement.

c. By the failure of ALNASR to forward a comprehensive plan of action for the
JV corporations within 12 months from the date of signing this Agreement;

d. By the failure of AHOA to complete the private placement envisaged herein
within 6 months from the date of signing this Agreement;

e. By the failure of AHOA to demonstrate adequately that the product meets
with all necessary minimum  requirements and furthermore, to prove that the
low cost housing model is reality;

28. The Agreement may be amended at any time provided that any amended
agreement is in writing, signed by both parties and clearly referenced;

29. All timetables of timelines mentioned herein and appearing as the duties
of any of the parties to the Agreement may be extended with the written
consent of both parties to the agreement and the parties concerned hereby
agree that certain requirements or provisions may be waived provided that such
waiver is mutually agreed in writing

30. Address for notices and other communications:

       AHOA  Affordable Homes of America, Inc
             4505 W. Hacienda Ave. Unit I-1
             Las Vegas, NV
             #702-579-4888
             Fax#-702-579-4833
             e-mail:info@affordahome.com

    AL NASR  Trading & Industrial Corporation LLC
             Adnan Khashoggi Villa
             Al Washem Street
             Murabba's District
             Riyadh, Kingdom of Saudi Arabia
             Telephone: 1-9661-402-7888
             Fax:1-9661-402-8577

31. The Agreement is the final written expression and the complete and
exclusive statement of the parties namely AHOA and ALNASR. It super- sedes any
and all other agreements (and letters of intent as the case may be) written or
oral between the parties and alterations or amendments hereinafter must only
be with the written and mutual content of AHOA and ALNASR:

32. The Agreement, and its terms and conditions, shall be govern by the laws
prevailing in the State of Nevada or laws in other jurisdictions if and when
applicable;

33. In the event that any pan of the Agreement is determined invalid by a
court of competent jurisdiction, such determination shall not effect the
validity of the remaining  portion of the Agreement:

34. Both parties agree that, within the framework of the Agreement, certain
commission and/or finder's fees will be payable to Charlesbridge Holdings
(Europe) Corporation/Africa Reiources Corporation and to The Aiegis Group and
that the said commissions and fees will be negotiated separately and will form
part of a separate aereement.

SIGNED AND ACCEPTED
DATED:  08/15/2000
For AFFFORDABLE HOMES OF AMERICA, INC.

By: /s/ Merle Ferguson
        --------------
        Merle Ferguson
        President

FOR AL NASR TRADING AND INDUSTRIAL CORPORATION, LLC

By /s/ ADNAN KHASHOGGI
       ---------------
       ADNAN KHASHOGGI
       DIRECTOR<PAGE>   1

                                                                    EXHIBIT 10.1

                              TERMINATION AGREEMENT

     This TERMINATION AGREEMENT (the "Termination Agreement") is made as of this
14th day of September, 2001, by and between MICRO THERAPEUTICS, INC., a Delaware
corporation ("MTI") and GUIDANT CORPORATION, an Indiana corporation ("Guidant").

                                 R E C I T A L S

     A.  MTI and Guidant previously entered into that certain Distribution
Agreement dated November 17, 1997 (as amended on August 17, 1998, July 23, 1999,
and August 24, 2000, the "Distribution Agreement"), attached hereto as Exhibit
A.

     B.  Effective July 26, 2001, MTI experienced a Change in Control Event (as
that term is defined in Section 1.4 of the Distribution Agreement), and MTI
desires to terminate the Distribution Agreement and to set forth herein all of
the outstanding obligations of either party to the other, and Guidant is willing
to do so subject to the terms and conditions contained in this Termination
Agreement.

     NOW, THEREFORE, in consideration of the foregoing and the mutual terms and
conditions hereinafter set forth, Guidant and MTI agree as follows (all
capitalized terms not otherwise defined in this Termination Agreement shall have
the meaning assigned to them in the Distribution Agreement):

1.   TERMINATION OF DISTRIBUTION AGREEMENT; TRANSITION PERIOD.

     (a)  TERMINATION. Notwithstanding anything to the contrary in the
Distribution Agreement, including any termination provisions or requirements
therein which shall be deemed automatically amended by the mutual agreement of
the parties hereto to the extent such provisions are in conflict with the terms
hereof, the parties hereto agree that, effective as of December 31, 2001, the
Distribution Agreement, and any and all terms, rights and obligations of the
parties thereunder, shall terminate and be of no further force or effect other
than as expressly set forth or as otherwise amended herein. Without limiting the
foregoing, except as set forth in Section 1(h) below, the parties agree that
Guidant shall have no right or obligation whatsoever to distribute the Products
in the Territory from and after December 31, 2001.

     (b)  TRANSITION PERIOD. Beginning as of the date hereof and continuing
until December 31, 2001 (the "Transition Period"), Guidant and MTI shall work
together in good faith and use their commercially reasonable efforts to effect
the transfer, without interruption in sales and service to the Customers of the
Products in the Territory, of the distribution of the Products in the Territory.
During the Transition Period, unless otherwise requested by MTI in writing,
Guidant shall continue to distribute the Products in the Territory except as
otherwise described herein. MTI will use its commercially reasonable efforts to
take over all attributes of selling, marketing and distributing it's products in
the Territory on a country by country basis. Once MTI is prepared and able to
take over the sales, marketing, and distribution of the Products in a country
within the Territory (other than the

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United Kingdom), MTI will so indicate to Guidant in writing thirty (30) days
prior to such date as MTI will take over such duties with respect to the
Products in such country, and Guidant will no longer have any responsibilities
for such duties with respect to the Products in such country (an "MTI Assumed
Country").

     (c)  HD ONYX. MTI may immediately commence to directly offer and sell to
customers (i) MTI's high density Onyx(R), which is Onyx containing over twenty
percent (20%) , or greater, by volume, of the polymer ("HD Onyx"), and (ii)
MTI's bifurcation balloon products yet to be commercially released (the
"Bifurcation Balloon Products," and together with HD Onyx, the "Aneurysm
Products"), used for the treatment of brain aneurysms in Europe, independent
from the terms or provisions of the Distribution Agreement.

     (d)  PUBLICITY. MTI and Guidant shall mutually agree upon the language of a
press release describing the termination of the Distribution Agreement and the
plan of the transition.

     (e)  EXPIRATION OF TRANSITION PERIOD. Upon the expiration of the Transition
Period, except as provided for in Section 1(h) below, the parties agree that (i)
Guidant shall have no further obligation to sell or distribute the Products or
service any Customers of the Products in the Territory (including any
distribution obligations set forth in Section 1(b) of this Termination
Agreement), (ii) each party shall immediately discontinue any and all use and
distribution of any trademarks, service marks, trade names or logos of the other
party, and (iii) each party shall immediately return to the other all
Confidential Information (as defined in the Distribution Agreement), or upon the
other party's written consent, destroy such Confidential Information, and
certify in writing such destruction to the other party other than to the extent
such Confidential Information is necessary to perform under this Termination
Agreement, and except for one copy of such Confidential Information which may be
kept in the legal files of such party to demonstrate compliance with the
obligations of this Termination Agreement and the Distribution Agreement.

     (f)  SURVIVAL OF TERMS. Except as otherwise set forth in Section 1(h) and
3(a) below, Sections 1, 4.7, 6.5, 9 through 12, inclusive, 13.5 and 14 of the
Distribution Agreement shall survive the termination thereof and, furthermore,
are hereby incorporated by reference and shall have full force and effect as if
expressly set forth herein (provided, however, as such Sections are amended by
this Termination Agreement, and to the extent any such Sections are in conflict
with the terms of this Termination Agreement, the terms of this Termination
Agreement shall take precedence).

     (g)  FIRST COMMERCIAL SALE. The parties acknowledge that, based upon
written documentation provided to MTI by Guidant, the First Commercial Sale, as
defined in the Distribution Agreement, occurred on August 31, 1999.

     (h)  TENDERS; STOCKIST SERVICES. If required by applicable law (including
tender laws) within any country within the Territory that Guidant continue to
distribute Products to customers under existing contracts, then following the
termination of the Transition Period, pursuant to the applicable contract or
contracts, Guidant will continue to (i) purchase Products from and remit payment
to MTI, (ii) distribute such Products, (iii) provide billing and collection
services with respect to such Products, and (iv) provide customer service for
such Products (the "Stockist Services"). Following the termination of the
Transition Period, Guidant shall perform such Stockist Services for a fee in the
amount of ten percent (10%) of Net Sales by Guidant until such time as MTI can,
subject to applicable tender laws and contracts, itself perform such Stockist
Services. In such

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event, Guidant and MTI should make all commercially reasonable efforts to save
business and successfully convert tenders to MTI. MTI shall not pay Guidant any
fees described in Section 3 of this Termination Agreement with respect to the
Stockist Services. The timing, payment and delivery terms of the purchase,
distribution, billing, collection and customer service aspects of the Stockist
Services shall be performed in accordance with the provisions of Sections 6, 7
and 8 of the Distribution Agreement, the applicable provisions of which are
hereby incorporated herein by reference for the purpose of this Section 1(h) and
which shall survive termination of the Distribution Agreement for the purpose of
the Stockist Services. Upon the termination of Guidant's obligation to perform
the Stockist Services, Guidant may sell to MTI all or any part of its remaining
inventory of the Products that were sold to Guidant following the termination of
the Transition Period for the purpose of the Stockist Services, and MTI agrees
to repurchase all of such Products from Guidant within forty-five (45) days of
the termination of Guidant's obligation to perform the Stockist Services. The
price for such repurchase shall be the Cost paid by Guidant to MTI pursuant to
the terms of the Distribution Agreement, plus applicable freight charges,
insurance and other costs of shipping and handling, taxes, duties and the like.

2.   GUIDANT PERSONNEL; NON-SOLICITATION; OWNERSHIP OF PROPERTY.

     (a)  GUIDANT PERSONNEL. MTI shall evaluate and consider for hire, all
Guidant neuro personnel in the Territory who have been presented to MTI by
Guidant in writing as available for hire, together with Guidant's written
consent to MTI so hiring. MTI, however, shall have no obligation to hire any
such persons.

     (b)  NON-SOLICITATION. From the date hereof and ending on the second
anniversary of the date hereof, without the prior written consent of Guidant,
MTI shall not solicit for employment any employee of Guidant in the Territory,
and, without the prior written consent of MTI, Guidant shall not solicit for
employment any employee of MTI in the Territory.

     (c)  OWNERSHIP OF PROPERTY. As between MTI and Guidant, MTI shall retain
possession and full and complete title to all Products and intellectual property
related to the Products; except that Guidant shall own Products purchased by
Guidant from MTI as inventory which are not repurchased by MTI.

3.   FEES.

     (a)  TERMINATION FEE. In consideration of the obligations to be performed
by Guidant pursuant to this Termination Agreement, and in full satisfaction of
MTI's payment obligations pursuant to the Distribution Agreement, MTI shall pay
to Guidant the termination fee described in Section 13.3.2 of the Distribution
Agreement, subject to the following (as modified by this Section 3, the
"Termination Fee"):

          (i) the twelve (12) month period described in Section 13.3.2 of the
Distribution Agreement shall be the twelve (12) months of operations ending
December 31, 2001;

          (ii) "Net Sales," shall include MTI sales of Products in the Territory
(including the MTI Assumed Countries) during the Transition Period, provided,
however, that "Net Sales," shall not include MTI sales of the Aneurysm Products;

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          (iii) within thirty (30) days of the end of each month during the
Transition Period, Guidant shall provide MTI with a report of Guidant's Net
Sales by country during such month;

          (iv) within thirty (30) days of the end of the Transition Period, MTI
and Guidant shall provide each other with reports of their respective Net Sales
(excluding MTI sales of the Aneurysm Products) over the twelve (12) month period
ending December 31, 2001, and MTI agrees to provide Guidant with a summary of
the two reports; and

          (v) MTI shall pay the Termination Fee to Guidant on or before February
15, 2002.

     (b)  ANEURYSM FEE. Beginning as of the date hereof, through December 31,
2001, MTI shall pay Guidant twenty percent (20%) of the net end user selling
price for all Aneurysm Products sold in the Territory, (such net end user
selling pricing being defined for the purpose of this Section 3(b) as the price
paid by end users for such Aneurysm Products, less applicable shipping and
administrative costs, which shipping and administrative costs shall not exceed
six percent (6%) of the aggregate net end user selling price), (the "Aneurysm
Fee"). For the purpose of calculating the Aneurysm Fee, MTI agrees to provide
Guidant with a reconciliation of end user Aneurysm Product revenues in the
Territory during the applicable period. MTI shall pay the Aneurysm Fee to
Guidant within thirty (30) calendar days of the end of the previous sales month.
The Aneurysm Fee is in lieu of any other fees that may have been available to
Guidant if the Aneurysm Products were deemed to be Products, as such term is
defined in the Distribution Agreement.

4.   INVENTORY.

     (a)  REPLACEMENT OF CERTAIN PRODUCTS IN INVENTORY. In the event that,
during the Transition Period, MTI launches for commercial sale any new Product
line that is designated to replace an existing Product line (a "New Generation
Product"), MTI agrees that during the Transition Period it will replace, on a
unit for unit no charge basis, such existing Products with New Generation
Products. For example, if MTI launches the Ultraflow catheter for commercial
sale during the Transition Period, MTI will replace, on a unit for unit basis,
each FlowRider(R) and FlowRider(R) Plus unit in Guidant's inventory with units
of the Ultraflow catheter.

     (b)  REPURCHASE OF INVENTORY. Within thirty (30) days of the termination of
the Transition Period, Guidant may sell to MTI certain of its remaining
inventory of the Products, up to a dollar amount (the "Repurchase Ceiling")
equal to the aggregate Cost (paid by Guidant to MTI pursuant to the terms of the
Distribution Agreement) of those Products sold to Guidant by MTI during the
period beginning on the execution date of this Termination Agreement and ending
on December 31, 2001. (New Generation Products provided to Guidant pursuant to
Section 4(a) hereof shall not be included in such calculation, as such New
Generation Products are provided at no cost).

          (i) MTI shall first repurchase those Products most recently sold to
Guidant by MTI, pursuant to the pricing set forth in Section 4(c), but MTI shall
have no obligation to repurchase any Products after the aggregate amount paid to
Guidant pursuant to this Section 4(b) equals the Repurchase Ceiling.

          (ii) Notwithstanding any of the foregoing, MTI shall have no
obligation to repurchase any Products pursuant to this Section 4(b) that are not
"Saleable Inventory" (as

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hereinafter defined), regardless of any amount remaining under the Repurchase
Ceiling, and MTI shall have no liability to Guidant with respect to any amount
remaining under the Repurchase Ceiling as a result.

     (c)  REPURCHASE PRICE. The price paid by MTI for the Products described in
Section 4(b) shall be the Cost paid by Guidant to MTI pursuant to the terms of
the Distribution Agreement plus applicable freight charges, insurance and other
costs of shipping and handling, taxes, duties and the like.

     (d)  SALEABLE INVENTORY. "Saleable Inventory" includes those Products that
are current products, have a minimum of one-third of their shelf life remaining,
continue to be in physically saleable condition, that are not demonstration
units, and that were originally purchased by Guidant from MTI after June 30,
2001 (using the inventory reports described in Section 4(e)). The date of
purchase of New Generation Products provided to Guidant pursuant to Section 4(a)
hereof shall be based upon the date that the Products replaced by the New
Generation Products were originally sold to Guidant.

     (e)  PHYSICAL COUNT OF PRODUCTS. Within seven (7) days of December 31,
2001, Guidant shall perform a physical count of its inventory of the Products,
and shall permit MTI to have present representatives at each such counting of
inventory. In the event any counting is actually performed prior to or following
December 31, 2001 (within the limitations of the preceding sentence), Guidant
shall cooperate with MTI and provide MTI with such documentation as reasonably
necessary to establish such inventory as of December 31, 2001. Such counting of
inventory shall include all consigned products and Guidant shall permit MTI to
have present representatives at any counting of consigned inventory. Within ten
(10) days of each such counting, Guidant shall provide MTI with a listing of
such counted inventory, priced at Guidant's cost, organized by location and
including product identification numbers, Product quantities and lot numbers.

     (f)  REMAINING POST TRANSITION PERIOD INVENTORY. Within thirty (30) days of
the termination of the Transition Period, Guidant shall sell to MTI its
remaining inventory of the Products that are not repurchased by MTI pursuant to
Section 4(b) hereof, at the Cost paid by Guidant to MTI for such Products
pursuant to the terms of the Distribution Agreement plus applicable freight
charges, insurance and other costs of shipping and handling, taxes, duties and
the like, up to an aggregate repurchase amount under this Section 4(f) of One
Hundred Thousand Dollars ($100,000). At the same time, all Products remaining in
Guidant's inventory following such repurchase described in this Section 4(f)
shall be given to MTI free of charge.

5.   REPAYMENT OF NOTES. No later than September 30, 2001, (i) MTI shall pay
Guidant $5,000,000 plus all interest accrued and unpaid through the dates of
payment in exchange for and in full satisfaction of all outstanding principal
and interest under that certain 5% Convertible Subordinated Note dated November
17, 1997 in the principal amount of $5,000,000 (the "1997 Note"), issued under
the Convertible Subordinated Note Agreement by and between MTI and Guidant dated
November 17, 1997 and, (ii) MTI shall pay Guidant $2,000,000 plus all interest
accrued and unpaid through the date of payment in exchange for and in full
satisfaction of all outstanding principal and interest under that certain
Promissory Note dated May 28, 1998 in the principal amount of $2,000,000 (the
"1998 Note" and, together with the 1997 Note, the "Notes"), issued under the
Credit Agreement by and between MTI and Guidant dated November 17, 1997.

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6.   MUTUAL RELEASE; WAIVER.

     (a)  MUTUAL RELEASE. Except for the obligations of the parties set forth in
this Termination Agreement, effective as of December 31, 2001 each of MTI on
behalf of itself and its representatives, officers, directors, successors,
assigns and agents on the one hand, and Guidant on behalf of itself and its
representatives, officers, directors, successors, assigns and agents on the
other hand, do hereby fully release and forever discharge the other party and
its representatives, officers, directors, successors, assigns and agents of and
from any and all manner of actions, suits, liens, debts, damages, claims,
obligations, liabilities and demands of every nature, kind and description
whatsoever, whether known or unknown and whether suspected or unsuspected,
either at law, in equity or otherwise, which such party has, has had or may have
or may claim to have, against the other party, its representatives, officers,
directors, successors, assigns or agents, arising prior to the date hereof and
related to or arising out of the Distribution Agreement (including any fees
arising therefrom, except as provided for in this Termination Agreement). The
parties intend that the foregoing shall be a general mutual release and shall
extend to all claims related to or arising out of the Distribution Agreement
(including any fees arising therefrom, except as provided for in this
Termination Agreement) which the other party does not know of or suspect to
exist in its favor. In connection therewith, each party waives the benefits
afforded by any statute or regulation in connection therewith.

     (b)  WAIVER. Each party hereto, on behalf of itself and its Related
Parties, hereby irrevocably and forever waives all rights it may have under
California Civil Code Section 1542, with respect to the foregoing release and
waiver in this Section 6. Each party understands that Section 1542 provides
that:

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

     Each party acknowledges that is has been fully informed by its counsel
concerning the effect and import of this Termination Agreement under California
Civil Section 1542 and the other requirements of law.

7.   GENERAL.

     (a)  Each of the parties represents and warrants to the other party that it
has not assigned or transferred to any person, corporation or other entity, any
claim, liability or cause of action based on or arising out of, or in connection
with any matter, claim or cause of action which is being released pursuant to
the provisions of this Termination Agreement.

     (b)  This Termination Agreement shall be binding upon, and shall inure to
the benefit of the parties hereto and their respective heirs, successors,
representatives and assigns.

     (c)  This Termination Agreement shall be governed and construed by the laws
of the State of California, without reference to choice of law principles, as to
all matters.

                                      B-6
<PAGE>   7

     (d)  This Termination Agreement sets forth the entire agreement between the
parties with respect to the subject matter hereof and supercedes all other
agreements or understanding with respect to the subject matter hereof.

     (e)  The terms of this Termination Agreement, together with the
Distribution Agreement as amended herein and to the extent incorporated by
reference herein, may be amended, modified or eliminated only upon the mutual
written agreement of the parties hereto. The waiver by either party hereto of
any breach of any of the terms or provisions of this Termination Agreement shall
not be construed as a waiver of any subsequent breach.

     (f)  Each of the parties to this Termination Agreement represents and
warrants that the persons executing this Termination Agreement are authorized
and empowered to enter and to execute this Termination Agreement for and on
behalf of such party.

     (g)  This Termination Agreement may be executed in one or more
counterparts, each of which shall be deemed an original all of which together
shall be deemed one in the same agreement.

     IN WITNESS WHEREOF, the undersigned have executed this Termination
Agreement as of the date herein first above written.

                                                  MICRO THERAPEUTICS, INC.

                                                  By:  /s/ John Rush
                                                       -------------------------
                                                  Its: President and Chief
                                                       Executive Officer

                                                  GUIDANT CORPORATION

                                                  By:  /s/ Mary J. Bellack
                                                       -------------------------
                                                  Its: Vice President & General
                                                       Manager, Neurovascular

                                      B-7

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