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Exhibit 10.16  

 
 

ev3 LLC
  2003 INCENTIVE PLAN    
    

 Section 1.    PURPOSE.  

        The Plan is intended as an incentive to improve the performance, encourage the continued employment and increase the proprietary interest of certain members,
employees, and advisors of the Company. The Plan is designed to grant such members, employees, and advisors the opportunity to share in the Company's long-term success through ownership of
Units and to afford them the opportunity for additional compensation related to the value of the Units. It is not intended that options granted under this Plan to qualify as "incentive stock options"
under Section 422 of the Code. 

 Section 2.    DEFINITIONS.  

        (a)   "Award" means any right granted under the Plan, including any Option, Restricted Unit, or other Unit-based
award. 

        (b)   "Board" means the "Board," as such term is defined in the LLC Agreement. 

        (c)   "Change in Control" means: 

          (i)  the
acquisition by any individual, entity or group (other than the Company, Warburg or any employee benefit plan of the Company,) of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of securities representing more than 50% of the voting securities of the Company entitled to
vote generally in the election of directors, determined on a fully diluted basis ("Company Voting Securities");  provided, however, that such acquisition shall not constitute a Change in Control hereunder if a
majority of the holders of the Company Voting Securities immediately prior to such acquisition retain directly or through ownership of one or more holding companies, immediately following such
acquisition, a majority of the voting securities entitled to vote generally in the election of directors of the successor entity; 

         (ii)  The
date upon which individuals who as of the date hereof constitute a majority of the Board (the "Incumbent Board")
cease to constitute at least a majority of the Board, provided, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company's
stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board; 

        (iii)  Consummation
of a reorganization, merger or consolidation or sale or other disposition of all or substantially all of the assets of the Company (a
"Business Combination"), in each case, unless, following such Business Combination, the individuals or entities who were the beneficial owners,
respectively, of the Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation which
as a result of such transaction owns the Company or all or substantially all of the Company's assets either directly or through one or more subsidiaries); or 

        (iv)  approval
by the Company's stockholders of a complete dissolution or liquidation of the Company. 

        (d)   "Code" means the Internal Revenue Code of 1986, as amended. 

        (e)   "Committee" means the Board or such other committee of at least two persons as the Board may appoint to administer the
Plan. 

 

        (f)    "Company" means ev3 LLC, a Delaware limited liability company. 

        (g)   "Eligible Persons" means any member, employee, or advisor of the Company or its subsidiaries. 

        (h)   "Fair Market Value" means the fair market value per share of Unit, on a fully diluted basis, determined by the Board in
good faith. 

        (i)    "IPO" means an initial public offering of the equity of the Company registered under the Securities Act pursuant to an
effective registration statement. 

        (j)    "IPO Date" means the effective date of the IPO. 

        (k)   "LLC Agreement" means the Operating Agreement of the Company, dated as of August 29, 2003, as the same may be
amended from time to time. 

        (l)    "Option" means an option to purchase Units granted pursuant to the Plan. 

        (m)  "Option Agreement" means a written agreement between the Company and a Participant evidencing the terms and conditions of
an individual Option grant. 

        (n)   "Participant" means a person to whom an Award is granted pursuant to the Plan or, if applicable, such other person who
holds an outstanding Award. 

        (o)   "Plan" means the ev3 LLC 2003 Incentive Plan. 

        (p)   "Restricted Units" means Units issued or transferred to a Participant subject to forfeiture and the other restrictions
set forth in Section 7 hereof. 

        (q)   "Restricted Unit Agreement" means a written agreement between the Company and a Participant evidencing the terms and
conditions of an individual Restricted Unit grant. 

        (r)   "Securities Act" means the Securities Act of 1933, as amended. 

        (s)   "Unit" means a "Common Membership Unit," as such term is defined in the LLC Agreement. 

        (t)    "Warburg" means Warburg, Pincus Equity Partners, L.P. and its affiliates. 

 Section 3.    ADMINISTRATION.  

        (a)    General.    The Plan shall be administered by the Committee. 

        (b)    Powers of the Committee.    Subject to the provisions of the Plan, the Committee shall have sole authority, in
its absolute discretion: 

          (i)  To
determine from time to time which of the Eligible Persons shall be granted Awards, when and how each Award shall be granted, what type or combination of types of
Award shall be granted, the provisions of each Award granted (which need not be identical), including the time or times when a person shall be permitted to receive Units pursuant to an Award, and the
number of Units with respect to which an Award shall be granted to each such person; 

         (ii)  To
construe and interpret the Plan and Awards granted under it, and to establish, amend and revoke rules and regulations for its administration; 

        (iii)  To
amend the Plan or an Award as provided in Section 17; and 

        (iv)  To
exercise such powers and to perform such acts as the Committee deems necessary or expedient to promote the best interests of the Company which are not in conflict
with the provisions of the Plan. 

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        (c)    Committee Determinations.    All determinations, interpretations and constructions made by the Committee in
good faith shall not be subject to review by any person and shall be final, binding and conclusive on all persons. 

 Section 4.    UNITS SUBJECT TO THE PLAN.  

        (a)    Unit Reserve.    Subject to Section 11 hereof relating to adjustments, the total number of Units which
may be granted pursuant to Awards hereunder shall not exceed, in the aggregate, 13,299,655. 

        (b)    Source.    The Units to be granted or optioned under the Plan shall be authorized but unissued Units or
previously issued Units reacquired by the Company on the open market or by private purchase. 

        (c)    Reversion of Units.    If any Award shall for any reason expire, be forfeited or otherwise terminate, in whole
or in part, the Units not acquired under such Award shall revert to and again become available for issuance under the Plan. 

 Section 5.    ELIGIBILITY.  

        Participation shall be limited to Eligible Persons who have received written notification from the Committee, or from a person designated by the Committee, that
they have been selected to participate in the Plan. 

 Section 6.    OPTIONS.  

        (a)    General.    The Committee is authorized to grant, from time to time, one or more Options to any Eligible
Person. Options granted hereunder shall be in such form and shall contain such terms and conditions as the Committee shall deem appropriate. 

        (b)    Option Agreement.    The provisions of Options shall be set forth in an Option Agreement, which agreements need
not be identical, and, except as otherwise provided by the Committee in the Option Agreement, each Option shall include (through incorporation of provisions hereof by reference in the Option or
otherwise) the substance of each of the following provisions: 

        (i)    Term.    No Option granted hereunder shall be exercisable after the expiration of ten (10) years from
the date it was granted. 

        (ii)    Exercise Price.    The exercise price per Unit for each Option shall be set by the Committee at the time of
grant; provided, however, that the exercise price per unit shall in no event be less than 85% of the Fair Market Value of a Unit on the date of grant. 

        (iii)    Payment for Units.    Payment for Units acquired pursuant to Options granted hereunder shall be made in full,
upon exercise of the Options (i) in immediately available funds in United States dollars, by certified or bank cashier's check, (ii) by surrender to the Company of Units which have
either (a) have been held by the Participant for at least six-months, or (b) were acquired from a person other than the Company, (iii) by a combination of
(i) and (ii), or (iv) by any other means approved by the Committee. 

        (iv)    Vesting.    Options shall vest and become exercisable in such manner and on such date or dates set forth in
the Option Agreement, as may be determined by the Committee; provided, however, that notwithstanding any
vesting dates set by the Committee, the Committee may in its sole discretion accelerate the vesting of any Option, which acceleration shall not affect the terms and conditions of any such Option other
than with respect to vesting. Unless otherwise specifically determined by the Committee, the vesting of an Option shall occur only while the Participant is employed or rendering services to the
Company and all vesting shall cease upon a Participant's termination of employment or services for any reason. If an Option is exercisable in installments, 

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such
installments or portions thereof which become exercisable shall remain exercisable until the Option expires. 

        (v)    Transferability of Options.    Except as otherwise provided in the Option Agreement, an Option shall not be
transferable except by will or by the laws of descent and distribution and shall be exercisable during the lifetime of the Participant only by the Participant;  provided, however, that the Participant may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the death of the Participant, shall thereafter be entitled to exercise the Option. 

        (vi)    Early Exercise.    The Option may, but need not, include a provision whereby the Participant may elect at any
time before the Participant's employment or service terminates to exercise the Option as to any part or all of the Units subject to the Option prior to the full vesting of the Option. Any unvested
Units so purchased shall be subject to a repurchase option in favor of the Company and to any other restriction the Committee determines to be appropriate. 

 Section 7.    RESTRICTED UNITS.  

        (a)    General.    The Committee is authorized to grant, from time to time, one or more Restricted Units to any
Eligible Person. Restricted Units granted hereunder shall be in such form and shall contain such terms and conditions as the Committee shall deem appropriate. The terms and conditions of each
Restricted Unit grant shall be evidenced by a Restricted Unit Agreement. Subject to the restrictions set forth in Section 7(b), the Participant shall generally have the rights and privileges of
a member as to such Restricted Unit, including the right to vote such Restricted Unit. At the discretion of the Committee, distributions, if any, with respect to the Restricted Units may be either
currently paid to the Participant or withheld by the Company for the Participant's account. Unless otherwise determined by the Committee, distributions so withheld by the Committee shall be subject to
forfeiture to the same
degree as the shares of Restricted Unit to which they relate. No interest will accrue or be paid on the amount of any distributions withheld. 

        (b)    Restrictions.    In addition to any other restrictions set forth in a Participant's Restricted Unit Agreement
and the LLC Agreement, until the expiration of the applicable restricted period set forth in such Restricted Unit Agreement, the Participant shall not be permitted to sell, transfer, pledge, or
otherwise encumber the Restricted Units. The Committee shall have the authority to remove any or all of the restrictions on the Restricted Units whenever it may determine that, by reason of changes in
applicable laws or other changes in circumstances arising after the date of the Restricted Unit Award, such action is appropriate. 

        (c)    Certificates.    Certificates for Restricted Units shall be registered in the name of the Participant but shall
be appropriately legended and returned to the Company by the Participant, together with a unit power, endorsed in blank by the Participant. Notwithstanding the foregoing, the Committee may determine,
in its sole discretion, that the Restricted Units shall be held in book entry form rather than delivered to the Participant pending the release of the applicable restrictions. 

 Section 8.    OTHER UNIT-BASED AWARDS.  

        The Committee may grant any other Unit-based Awards to any eligible individual under this Plan that the Committee deems appropriate, including, but
not limited to, appreciation rights, phantom Unit awards, the bargain purchase of Units and Unit bonuses. Any such benefits and any related agreements shall contain such terms and conditions as the
Committee deems appropriate. Such Awards and agreements need not be identical. With respect to any benefit under which Units are or may in the future be issued for consideration other than prior
services, the amount of such consideration shall not be less than the amount required to be received by the Company in order to comply with applicable state law. 

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 Section 9.    LLC AGREEMENT  

        As a condition of (a) exercising an Option, or (b) the grant of any Award other than an Option, if a Participant has not previously executed a copy
of the LLC Agreement, such Participant shall be
required to execute a copy of the LLC Agreement and to be bound by the terms and conditions contained therein. 

 Section 10.    REPURCHASE OF UNITS.  

        At any time prior to the IPO Date, upon any termination of a Participant's employment or service, the Committee may, in its discretion, and on terms it considers
appropriate, require a Participant, or the executors or administrators of a Participant's estate, to sell back to the Company all Units acquired through any Award at a price equal to the Fair Market
Value at the time of such repurchase; provided, however, that except due to unforeseen circumstances,
the Committee shall not exercise its repurchase right prior to the six-month anniversary of the date of grant, in the case of Restricted Units, or the date of exercise, in the case of an
Option. 

 Section 11.    ADJUSTMENT FOR RECAPITALIZATION, MERGER, ETC.  

        (a)    Capitalization Adjustments.    The aggregate number of Units which may be granted or purchased pursuant to
Awards granted hereunder, the number of Units covered by each outstanding Award, and the price per Unit thereof in each such Award may be subject to adjustment or substitution, as determined by the
Committee in its sole discretion, as to the number, price or kind of Units or other consideration subject to such Awards or as otherwise determined by the Committee to be equitable (i) in the
event of changes in the outstanding Units or in the capital structure of Company by reason of dividends, splits, reverse splits, recapitalizations, reorganizations, mergers, consolidations,
combinations, exchanges, or other relevant changes in capitalization occurring after the date of grant of any such Award, (ii) in the event of any change in applicable laws or any change in
circumstances which results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Participants in the Plan, or (iii) for any other reason
which the Committee, in its sole discretion, determines otherwise warrants equitable adjustment because it interferes with the intended operation of the Plan. Any adjustment shall be conclusively
determined by the Committee. 

        (b)    Change in Control.    Notwithstanding subsection (a) above, in the event of Change in Control, the
Company shall require the successor entity or parent thereof to assume all outstanding Awards; provided,  however, the Committee may, in its discretion and
in lieu of requiring such assumption, provide that all outstanding Awards shall terminate as of the
consummation of such Change in Control, and (x) accelerate the exercisability of, or cause all vesting restrictions to lapse on, all outstanding Awards to a date at least ten days prior to the
date of such Corporate Event and/or (y) provide that holders of Awards will receive a cash payment in respect of cancellation of their Awards based on the
amount (if any) by which the per share consideration being paid for the Units in connection with such Change in Control exceeds the applicable exercise price, if any. 

        (c)    Assumption.    For purposes of Section 1l(b) above, an Award shall be considered assumed, without
limitation, if, at the time of issuance of the securities or other consideration upon a Change in Control, each holder of an Award would be entitled to receive upon exercise of the award the same
number and kind of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to such transaction,
the holder of the number of Units covered by the Award at such time; provided, that if such consideration received in the transaction is not solely equity securities of the successor entity, the
Committee may, with the consent of the successor entity, provide for the consideration to be received upon exercise of the Award to be solely equity securities of the successor entity equal to the
Fair Market Value of the per share consideration received by holders of Units in the Change in Control. 

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        (d)    Fractional Shares.    Any such adjustment may provide for the elimination of any fractional share which might
otherwise become subject to an option. 

 Section 12.    USE OF PROCEEDS.  

        The proceeds received from the sale of Units pursuant to the Plan shall be used for general purposes. 

 Section 13.    RIGHTS AND PRIVILEGES AS A MEMBER.  

        Except as otherwise specifically provided in the Plan, no person shall be entitled to the rights and privileges of a member of the Company in respect of Units
which are subject to Awards hereunder until such shares have been issued to that person. 

 Section 14.    EMPLOYMENT OR SERVICE RIGHTS.  

        No individual shall have any claim or right to be granted an Award under the Plan or, having been selected for the grant of an Award, to be selected for a grant
of any other Award. Neither the Plan nor any action taken hereunder shall be construed as giving any individual any right to be retained in the employ or service of the Company. 

 Section 15.    COMPLIANCE WITH LAWS.  

        The obligation of the Company to make payment of Awards in Units or otherwise shall be subject to all applicable laws, rules, and regulations, and to such
approvals by governmental agencies as may be required. Notwithstanding any terms or conditions of any Award to the contrary, the Company shall be under no obligation to offer to sell or to sell and
shall be prohibited from offering to sell or selling any Units pursuant to an Award unless such shares have been properly registered for sale pursuant to the Securities Act with the Securities and
Exchange Commission or unless the Company has received an opinion of counsel, satisfactory to the Company, that such shares may be offered or sold without such registration pursuant to an available
exemption therefrom and the terms and conditions of such exemption have been fully complied with. The Company shall be under no obligation to register for sale or resale under the Securities Act any
of the Units to be offered or sold under the Plan or any Units issued upon exercise of Options. If the Units offered for sale or sold under the Plan are offered or sold pursuant to an exemption from
registration under the Securities Act, the Company may restrict the transfer of such shares and may legend the Unit certificates representing such Units in such manner as it deems advisable to ensure
the availability of any such exemption. 

 Section 16.    WITHHOLDING OBLIGATIONS.  

        The Company is authorized to withhold from any Award granted, any payment relating to an Award under the Plan, including from a distribution of Units, or any
payroll or other payment to a Participant, amounts of withholding and other taxes due in connection with any transaction involving an Award, and to take such other action as the Committee may deem
advisable to enable the Company and Participants to satisfy obligations for the payment of withholding taxes and other tax obligations relating to any Award. This authority shall include authority to
withhold or receive Units or other property and to make cash payments in respect thereof in satisfaction of a Participant's tax obligations. In addition to the Company's right to withhold from any
compensation paid to the Participant by the Company, a Participant may satisfy any federal, state or local tax withholding obligation relating to the exercise or acquisition of Units pursuant to an
Award by tendering a cash payment or, in the sole discretion of the Committee, by any of the following means or by a combination of such means; (i) authorizing the Company to withhold Units
from the Units otherwise issuable to the Participant as a result of the exercise or acquisition of Units pursuant to the Award; provided,  however, that no
Units 

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are
withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (ii) delivering to the Company owned and unencumbered Units. For proposes of this
Section 16, the term "Company" shall be deemed to mean any affiliate that may have a tax withholding obligation due to its relationship with a Participant. 

 Section 17.    AMENDMENT OF THE PLAN OR AWARDS.  

        (a)    Amendment of Plan.    The Board at any time, and from time to time, may amend the Plan. 

        (b)    No Impairment of Rights.    Rights under any Award granted before amendment of the Plan shall not be impaired
by any amendment of the Plan unless (i) the Company requests the consent of the Participant, and (ii) the Participant consents in writing. 

        (c)    Amendment of Awards.    The Committee, at any time, and from time to time, may amend the terms of any one or
more Awards; provided, however, that the rights under any Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and (ii) the Participant consents in writing. 

 Section 18.    TERMINATION OR SUSPENSION OF THE PLAN.  

        The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th)
anniversary of the effective date, as set forth in Section 19 below. No Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 

 Section 19.    EFFECTIVE DATE OF THE PLAN.  

        The Plan is effective as of August 29, 2003. 

 Section 20.    MISCELLANEOUS.  

        (a)    No Liability of Committee Members.    No member of the Committee shall be personally liable by reason of any
contract or other instrument executed by such member or on his behalf in his capacity as a member of the Committee nor for any mistake of judgment made in good faith, and the Company shall indemnify
and hold harmless each member of the Committee and each other employee, officer or director of the Company to whom any duty or power relating to the administration or interpretation of the Plan may be
allocated or delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim) arising out of any act or omission to act in connection with
the Plan unless arising out of such person's own fraud or willful bad faith; provided, however, that
approval of the Board shall be required for the payment of any amount in settlement of a claim against any such person. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the LLC Agreement, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them
harmless. 

        (b)    Payments Following Accidents or Illness.    If the Committee shall find that any person to whom any amount is
payable under the Plan is unable to care for his affairs because of illness or accident, or is a minor, or has died, then any payment due to such person or his estate (unless a prior claim therefor
has been made by a duly appointed legal representative) may, if the Committee so directs the Company, be paid to his spouse, child, relative, an institution maintaining or having custody of such
person, or any other person deemed by the Committee to be a proper recipient on behalf of such person otherwise entitled to payment. Any such payment shall be a complete discharge of the liability of
the Committee and the Company therefor. 

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        (c)    Governing Law.    The Plan shall be governed by and construed in accordance with the internal laws of the State
of Delaware without reference to the principles of conflicts of laws thereof. 

        (d)    Funding.    No provision of the Plan shall require the Company, for the purpose of satisfying any obligations
under the Plan, to purchase assets or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor shall the Company maintain separate bank
accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered fund for such purposes. Participants shall have no rights under the Plan other than
as unsecured general creditors of the Company, except that insofar as they may have become entitled to payment of additional compensation by performance of services, they shall have the same rights as
other employees under general law. 

        (e)    Reliance on Reports.    Each member of the Committee and each member of the Board shall be fully justified in
relying, acting or failing to act, and shall not be liable for having so relied, acted or failed to act in good faith, upon any report made by the independent public accountant of the Company and its
affiliates and upon any other information furnished in connection with the Plan by any person or persons other than himself. 

        (f)    Titles and Headings.    The titles and headings of the sections in the Plan are for convenience of reference
only, and in the event of any conflict, the text of the Plan, rather than such titles or headings shall control. 

*
* * 

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Exhibit 10.32    
    

 
 

CORPORATE OPPORTUNITY AGREEMENT    
    

        This Corporate Opportunity Agreement, dated as of April 4, 2005 (the "Agreement"), is entered into by and
among the institutional stockholders listed on Schedule I hereto (each, a "Stockholder" and
collectively, the "Stockholders") and ev3 Inc., a Delaware corporation (the "Company").
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in Section 6.1 of this Agreement. 

 
 

R E C I T A L S    
    

        WHEREAS, the Company intends to file a Registration Statement on Form S-1 (the "Registration
Statement") with the Securities and Exchange Commission ("SEC") pursuant to which it will pursue the Initial Public Offering of
its common stock, par value $0.01 per share ("Company Common Stock"); 

        WHEREAS,
on the date hereof the Stockholders are the owners of 9,704,819 shares (collectively, the "MTI Shares") of common stock, par
value $0.001 per share, of Micro Therapeutics, Inc., a Delaware corporation ("MTI"), representing all of the MTI Shares owned directly by the
Stockholders (but excluding any shares of MTI common stock the Stockholders may be deemed to beneficially own by virtue of their respective ownership of ev3 LLC, a Delaware limited liability company); 

        WHEREAS,
the Stockholders are party to that certain Contribution and Exchange Agreement, dated as of the date hereof (the "Contribution and Exchange
Agreement"), pursuant to which the Stockholders have agreed to contribute to ev3 LLC, on the terms and subject to the conditions set forth therein, the MTI Shares owned by them
(the "Contribution") in exchange for the issuance to the Stockholders of the number of common membership units of ev3 LLC determined in the manner set
forth in the Contribution and Exchange Agreement; 

        WHEREAS,
each of the Company and MTI have relied on financing from the Stockholders in the past in order to operate their respective businesses; 

        WHEREAS,
certain of the Stockholders are party to that certain letter agreement, dated as of March 28, 2005, with MTI pursuant to which certain of the Stockholders have agreed to
provide up to $5 million of financing to MTI (the "Support Letter") on the terms and subject to all of the conditions set forth in the Support
Letter; and 

        WHEREAS,
pursuant to this Agreement, the parties hereto desire to set forth certain understandings with respect to the financings of MTI that may be made pursuant to the Support Letter
or otherwise. 

        NOW,
THEREFORE, in consideration of the premises and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, agree as follows: 

 
 

ARTICLE I.
  NEGOTIATION RIGHT; RIGHT OF FIRST REFUSAL    
    

        Section 1.1.    Negotiation Right.    

        (a)    Financing Request; Company Option Period.    Subject to the terms and provisions contained herein,  including, without limitation, Section 1.2 below, in the event a Stockholder receives a request
from MTI pursuant to which MTI requests the Stockholder to provide financing to MTI (a "Financing Request"), such Stockholder will promptly forward the
financing request to the Company. The Company shall have thirty (30) calendar days following the date on which the Company is first informed by the Stockholders of the Financing Request (as
such period may be extended pursuant to Section 1.1(b), the "Company Option Period") to negotiate in good faith with MTI the terms pursuant to
which the Company will 

 

provide
the financing requested by MTI in the Financing Request (such right, the "Negotiation Right"). In the event that either (i) the Company
elects to exercise its Negotiation Right and subsequently determines, for any reason whatsoever, to discontinue negotiations with MTI, (ii) MTI advises the Company that, based on a
determination of a majority of the independent directors of MTI, it will not consider a financing from the Company or (iii) the Company advises the Stockholders that it does not wish to pursue
the Negotiation Right, the Company shall promptly notify each of the Stockholders and the Company's Negotiation Right with respect to the Financing Request then being made by MTI shall terminate. The
foregoing, however, shall not terminate the Company's Negotiation Rights under this Agreement with respect to future subsequent Financing Requests and any such future Financing Requests shall be
subject to the terms and conditions of this Agreement, including, without limitation, this
Section 1.1. 

        (b)    Extension of Company Option Period; Termination of Company Option Period.    If the Company is proceeding in
good faith with negotiations with MTI relating to the Financing Request, the Company may extend the Company Option Period for an additional thirty (30) calendar days by notifying the
Stockholders. Upon expiration of the Company Option Period, as such period may be extended pursuant to this Section 1.1(b), in the event MTI and the Company have not executed definitive
documentation relating to the Financing Request, each of the Stockholders shall, subject to Section 1.3 hereof, have the right to pursue a financing of MTI and any such financing shall not be
subject to this Section 1.1. Additionally, in the event that the Company does not exercise its Negotiation Right or such Negotiation Right terminates, each of the Stockholders shall, subject to
Section 1.3 hereof, have the right to pursue a financing of MTI and any such financing shall not be subject to this Section 1.1. 

        Section 1.2.    No Violation of Obligations Pursuant to Support Letter; Bridge
Financings.    This Agreement shall in no way whatsoever result in the violation of, or require any Stockholder to violate, the terms of the Support Letter.
Therefore, upon receipt of a Financing Request, the Stockholders shall, whether before, during or after the Company Option Period, be permitted to provide short-term bridge financing to
MTI on terms mutually acceptable to the Stockholders and MTI, which bridge financing shall permit MTI to repay such financing (without penalty) with the proceeds from a financing of MTI by the
Company. 

        Section 1.3.    Right of First Refusal.    

        (a)    Grant of Right of First Refusal.    Before any of the Stockholders make any financial investment in MTI, the
Stockholders shall notify the Company and provide the Company with a summary of the material terms (the "Proposed Terms") pursuant to which the
Stockholders are prepared to invest in MTI. The Company shall have the right, but not the obligation, to pursue an investment in MTI (in lieu of the Stockholders) on the same Proposed Terms on which
the Stockholders were prepared to invest in MTI. 

        (b)    Notification; Termination of Right of First Refusal.    Within five (5) Business Days following the
receipt of the Proposed Terms from the Stockholders, the Company shall give written notice to each of the Stockholders of its intention to pursue an investment in MTI, or that it does not intend to
pursue an investment in MTI. Failure by the Company to give written notice of its intention within such five (5) Business Day period shall be deemed an election by the Company not to pursue an
investment in MTI and the Stockholders shall have thirty (30) calendar days to pursue execution of definitive documentation relating to a financing of MTI on the same Proposed Terms that were
provided to the Company by the Stockholders (or on terms that are not more favorable in the aggregate to the Stockholders). The Company's rights with respect to a financing contemplated by the
Proposed Terms and this Section 1.3 shall automatically terminate in the event the Company and MTI do not 

2

 

execute
definitive documentation relating to an investment in MTI by the Company within thirty (30) calendar days following receipt of the Proposed Terms from the Stockholders;  provided, however, if, upon expiration of such thirty (30) day period, the Company reasonably
believes negotiation of the terms of a potential financing of MTI by the Company is proceeding in good faith between representatives of the Company and MTI, the Company may extend such period for an
additional thirty (30) calendar days by notifying the Stockholders; provided further, however,
the Company's rights with respect to a financing contemplated by this Section 1.3 shall automatically terminate in the event the Company and MTI do not execute definitive documentation relating
to an investment in MTI by the Company within such extended thirty (30) day period and, thereafter, the Stockholders shall have thirty (30) calendar days to pursue execution of
definitive documentation relating to a financing of MTI on the same Proposed Terms that were provided to the Company by the Stockholders (or on terms that are not more favorable in the aggregate to
the Stockholders). 

        (c)    Material Change in Proposed Terms.    In the event Company does not invest in MTI pursuant to the rights
granted to it in this Section 1.3 and thereafter there is a material change in the Proposed Terms negotiated by the Stockholders and MTI, before any of the Stockholders execute definitive
documentation relating to an investment in MTI, the Stockholders shall notify the Company and provide the Company with a summary of the modified Proposed Terms and provide the Company with the
opportunity to invest in MTI (in lieu of the Stockholders) on the same modified Proposed Terms. With respect to the modified Proposed Terms, the Company and the Stockholders shall follow the
procedures set forth in this Section 1.3, except that references to "thirty (30)" calendar days above shall be deemed to be references to "ten (10)" calendar days. 

        (d)    Reinstatement of Right of First Refusal; Stockholder Expenses.    If a financing of MTI is not consummated by
either the Company or the Stockholder pursuant to the conditions set forth above, the right of first refusal granted to the Company pursuant to this Section 1.3 shall be reinstated upon the
same terms and conditions as aforesaid. If the Company accepts the opportunity to invest in MTI in accordance with this Section 1.3, the Company will reimburse the Stockholders for their
reasonable out-of-pocket and third-party expenses incurred in connection with the negotiation of the Proposed Terms with MTI, including any such expenses incurred as a result
of this Section 1.3. 

        Section 1.4.    Approval by Disinterested Directors.    Any
decisions by the Company pursuant to this Agreement, including any financing of MTI by the Company, shall be approved by a majority of the Disinterested Directors of the Company. 

 
 

ARTICLE II.
  CORPORATE OPPORTUNITY    
    

        Section 2.1.    Corporate Opportunity.    The Company
acknowledges that the Stockholders and their respective officers, directors, agents, members, partners or Affiliates may engage or invest in, independently or with others, any business activity or any
type of transaction with MTI or its Affiliates, including, without limitation, a financing transaction
pursuant to the Support Letter or otherwise in accordance with Article I (each such activity, a "Corporate Opportunity"). The Company
acknowledges that neither the Company nor any stockholder of the Company, subsidiary of the Company or Affiliate of the Company shall have any interest in, or expectation that, such Corporate
Opportunity be offered to it except as provided in Article I, and any such interest or expectation otherwise due the Company or its stockholders, subsidiaries or Affiliates with respect to such
Corporate Opportunity is hereby renounced by the Company. Accordingly, the Stockholders and their respective officers, directors, agents, members, partners or Affiliates (i) except to the
extent required pursuant to Article I above, shall have no duty to communicate or 

3

 

present
such Corporate Opportunity to the Company or its stockholders, subsidiaries or Affiliates, (ii) shall have the right to hold any such Corporate Opportunity for its own account, or the
account of another Person, or to recommend, sell, assign or otherwise transfer such Corporate Opportunity to Persons other than the Company or any subsidiary or Affiliate of the Company and
(iii) shall not be liable, whether for breach of fiduciary duty or otherwise, to the Company, any of its stockholders, subsidiaries or Affiliates as a stockholder of the Company, member of the
Company's Board of Directors or otherwise by reason of the fact that such person pursues or acquires such Corporate Opportunity for itself, directs, sells, assigns or otherwise transfers such
Corporate Opportunity to another Person, or does not communicate information regarding such Corporate Opportunity to the Company or its Board of Directors, stockholders, subsidiaries or Affiliates
except as required by Article I. The Company acknowledges that this Section 2.1 renounces specified business opportunities as contemplated by Section 122(17) of the Delaware
General Corporation Law ("DGCL"). 

 
 

ARTICLE III.
  REPRESENTATIONS AND WARRANTIES OF THE COMPANY    
    

        The Company represents and warrants to each of the Stockholders as follows: 

        Section 3.1.    Organization.    The Company is a corporation
duly organized, validly existing and in good standing under the laws of the State of Delaware. 

        Section 3.2.    Authority.    The Board of Directors of the
Company, including the Disinterested Directors, has unanimously authorized the execution, delivery and performance of this Agreement and the transactions contemplated hereby. No other corporate action
is necessary to authorize such execution, delivery and performance, and upon such execution and delivery, this Agreement shall constitute a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditor's rights generally or by
general principles of equity. 

        Section 3.3.    Section 122(17) of
DGCL.    Section 2.1 has been specifically acknowledged and approved by the Board of Directors of the Company, including the Disinterested Directors, pursuant
to Section 122(17) of the DGCL. 

 
 

ARTICLE IV.
  REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS    
    

        Each of the Stockholders, severally and not jointly, represents and warrants to the Company as follows: 

        Section 4.1.    Authority.    This Agreement has been duly and
validly executed and delivered by the Stockholder and is a legal, valid and binding obligation of such Stockholder enforceable in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency or other similar laws affecting the enforcement of creditor's rights generally or by general principles of equity. 

 
 

ARTICLE V.
  TERMINATION    
    

        Section 5.1.    Termination.    

        (a)    Mutual Consent.    This Agreement may be terminated with the mutual written consent of the Company and each
Stockholder. 

4

 

        (b)    Outside Initial Public Offering Date.    Unless otherwise agreed by the Company and the Stockholders, this
Agreement may be terminated by the Company or the Stockholders in the event that the Initial Public Offering shall not have occurred on or before September 30, 2005. 

        (c)    Automatic Termination.    Subject to Section 5.2, this Agreement shall automatically terminate on the
date on which the Stockholders collectively own beneficially (within the meaning of Rule 13d-3 of the Securities Exchange Act of 1934, as amended) less than 10% of the Company
Common Stock. 

        Section 5.2.    Effect of Termination.    If this Agreement is
terminated pursuant to Section 5.1, the Company shall remain obligated to reimburse each Stockholder for the expenses described in Section 6.5 of this Agreement. Notwithstanding the
termination of this Agreement pursuant to Section 5.1, Articles II and VI and this Section 5.2 shall survive termination perpetually. 

 
 

ARTICLE VI.
  MISCELLANEOUS PROVISIONS    
    

        Section 6.1.    Terms Defined.    As used in this Agreement,
the following terms have the respective meaning set forth below: 

        (a)   "Affiliate" shall mean any Person or entity, directly or indirectly controlling, controlled by or under common control
with such Person or entity. 

        (b)   "Business Day" shall mean any day other than a Saturday, a Sunday or any day on which commercial banks are permitted or
required to be closed in New York City. 

        (c)   "Disinterested Director" shall mean any member of the Board of Directors of the Company who is not an employee of the
Company or a managing director, partner, member or otherwise affiliated with a Stockholder. 

        (d)   "Initial Public Offering" shall mean the underwritten initial public offering pursuant to an effective Registration
Statement under the Securities Act covering the offer and sale of the Company Common Stock to the public generally at a price to the public which places upon the Company a value (calculated by
multiplying the number of shares of common stock outstanding on a fully diluted basis immediately prior to such offering by the per share initial public offering price (before giving effect to the
underwriting discount), as set forth on the cover of the final prospectus for such offering) of at least $150 million and in which the net proceeds to the Company are not less than
$40 million and as a result of which the shares of Company Common Stock are designated for trading on the New York Stock Exchange, the American Stock Exchange or the NASDAQ National Market. 

        (e)   "Person" shall mean an individual, partnership, joint-stock company, corporation, limited liability company, trust or
unincorporated organization, and a government or agency or political subdivision thereof. 

        (f)    "Securities Act" shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder. 

        Section 6.2.    Notices.    All communications under this
Agreement shall be in writing and shall be delivered by hand or facsimile or mailed by overnight courier or by registered mail or certified mail, postage prepaid: 

        (a)   if
to the Stockholders, at the address or facsimile number listed on Schedule I hereto, or at such other address
or facsimile number as may have been furnished to the Company, the other Stockholders and MTI in writing; and 

5

 

        (b)   if
to the Company, at 4600 Nathan Lane North, Plymouth, Minnesota 55442 (facsimile: (763) 398-7200), marked for attention of President, or at such
other address or facsimile as the Company may have furnished in writing to each of the Stockholders and MTI. 

Any
notice so addressed shall be deemed to be given: if delivered by hand or facsimile, on the date of such delivery, if a Business Day and delivered during regular business hours, otherwise the first
Business Day thereafter; if mailed by courier, on the first Business Day following the date of such mailing; and if mailed by registered or certified mail, on the third Business Day after the date of
such mailing. 

        Section 6.3.    Amendments.    The terms, provisions and
conditions of this Agreement may not be changed, modified, waived or amended in any manner except by an instrument in writing duly executed by the Company and each of the Stockholders. 

        Section 6.4.    Assignment; Parties in
Interest.    

        (a)    Assignment.    Neither this Agreement nor any of the rights, duties, or obligations of any party hereunder may
be assigned or delegated by any party hereto except with the prior written consent of the Company and each of the Stockholders. 

        (b)    Parties in Interest.    This Agreement shall not confer any rights or remedies upon any Person other than the
parties hereto and their respective permitted successors and assigns. 

        Section 6.5.    Confidentiality.    The terms of any
communications (whether written or oral) among the parties hereto, including communications amongst each party's respective directors, officers, agents, stockholders, members, advisors or partners
shall remain confidential. No party shall disclose the terms or existence of any communications made pursuant to this Agreement to any Person except (a) to the extent required by law,
(b) to the extent necessary to enforce its rights or obligations under this Agreement and (c) to its directors, officers, agents, stockholders, members, advisors or partners to the
extent necessary so that such persons may perform their role as directors, officers, agents, stockholders, members, advisors or partners; provided that
such party advises such persons of the confidentiality
provisions contained in, and confidential nature of, this Agreement and the communications made hereunder; provided further, that such party will be
responsible for any breach of this paragraph by such persons. Notwithstanding the foregoing, each party hereto acknowledges that each of the Stockholders and the Company may be obligated file this
Agreement with the SEC and each such party consents to the filing of this Agreement with the SEC and the disclosure of the terms of such Agreement in any filings required to be made with the SEC. 

        Section 6.6.    Expenses.    The Company agrees to pay the
Stockholder's out-of-pocket expenses, including the reasonable fees and disbursements of one counsel to the Stockholders, incurred in connection with the negotiation,
preparation, execution and delivery of this Agreement and the other instruments and agreements entered into pursuant to this Agreement or such other agreements, and any amendments to the same. 

        Section 6.7.    Entire Agreement.    This Agreement constitutes
the entire agreement among the parties hereto with respect to the subject matter hereof, supersedes and is in full substitution for any and all prior agreements and understandings among them relating
to such subject matter, and no party shall be liable or bound to the other party hereto in any manner with respect to such subject matter by any warranties, representations, indemnities, covenants or
agreements except as specifically set forth herein. The Schedule to this Agreement is incorporated herein and made a part hereof and is an integral part of this Agreement. 

6

 

        Section 6.8.    Descriptive Headings.    The descriptive
headings of the several sections (including subsections) of this Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions
hereof. 

        Section 6.9.    Counterparts.    For the convenience of the
parties, any number of counterparts of this Agreement may be executed by any one or more parties hereto (including by facsimile), and each such executed counterpart shall be, and shall be deemed to
be, an original, but all of which shall constitute, and shall be deemed to constitute, in the aggregate but one and the same instrument. 

        Section 6.10.    Governing Law.    This Agreement and the legal
relations among the parties hereto shall be governed by and construed in accordance with the laws of the State of Delaware, applicable to contracts made and performed therein. 

        Section 6.11.    Construction.    The language used in this
Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction will be applied against any party. 

        Section 6.12.    Severability.    In the event that any one or
more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, then to the
maximum extent permitted by law, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument. Furthermore, in lieu of any such
invalid, illegal or unenforceable term or provision, the parties hereto intend that there shall be added as a part of this Agreement a provision as similar in terms to such invalid, illegal or
unenforceable provision as may be possible and be valid, legal and enforceable. 

        Section 6.13.    Specific Performance.    Without limiting or
waiving in any respect any rights or remedies of any party under this Agreement now or hereinafter existing at law or in equity or by statute, each of the parties hereto shall be entitled to seek
specific performance of the obligations to be performed by the other in accordance with the provisions of this Agreement. 

        Section 6.14.    Survival of Provisions.    The respective
representations, warranties, covenants and agreements of each of the parties to this Agreement shall survive the execution of this Agreement and the consummation of the transactions contemplated by
this Agreement. 

[Remainder
of page intentionally left blank] 

7

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day and year first above written. 

	 	 	ev3 Inc.
	

 	
 	

By:	
 	

/s/  JAMES M. CORBETT      
 Name:  James M. Corbett

Title: President and Chief Executive Officer
	

 	
 	

WARBURG, PINCUS EQUITY PARTNERS, L.P.
	

 	
 	

By:	
 	

Warburg Pincus Partners LLC,

General Partner
	

 	
 	

 	
 	

By:	

Warburg Pincus & Co.,

Managing Member
	

 	
 	

By:	
 	

/s/  ELIZABETH H. WEATHERMAN      
 Name:  Elizabeth H. Weatherman

Title:    Partner
	

 	
 	

WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS I, C.V.
	

 	
 	

By:	
 	

Warburg Pincus Partners LLC,

General Partner
	

 	
 	

 	
 	

By:	

Warburg Pincus & Co.,

Managing Member
	

 	
 	

By:	
 	

/s/  ELIZABETH H. WEATHERMAN      
 Name:  Elizabeth H. Weatherman

Title:    Partner
	

 	
 	

WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS II, C.V.
	

 	
 	

By:	
 	

Warburg Pincus Partners LLC,

General Partner
	

 	
 	

 	
 	

By:	

Warburg Pincus & Co.,

Managing Member
	

 	
 	

By:	
 	

/s/  ELIZABETH H. WEATHERMAN      
 Name:  Elizabeth H. Weatherman

Title:    Partner
	 	 	 	 	 	 

8

 

	

 	
 	

WARBURG, PINCUS NETHERLANDS EQUITY PARTNERS III, C.V.
	

 	
 	

By:	
 	

Warburg Pincus Partners LLC,

General Partner
	

 	
 	

 	
 	

By:	

Warburg Pincus & CO.,

Managing Member
	

 	
 	

By:	
 	

/s/  ELIZABETH H. WEATHERMAN      
 Name:  Elizabeth H. Weatherman

Title:    Partner
	

 	
 	

VERTICAL FUND I, L.P.
	

 	
 	

By:	
 	

Vertical Group, L.P.,

General Partner
	

 	
 	

By:	
 	

/s/  JOHN E. RUNNELLS      
 Name:  John E. Runnells

Title:    General Partner
	

 	
 	

VERTICAL FUND II, L.P.
	

 	
 	

By:	
 	

Vertical Group, L.P.,

General Partner
	

 	
 	

By:	
 	

/s/  JOHN E. RUNNELLS      
 Name:  John E. Runnells

Title:    General Partner

9

QuickLinks

Exhibit 10.32

CORPORATE OPPORTUNITY AGREEMENT

R E C I T A L S

ARTICLE I. NEGOTIATION RIGHT; RIGHT OF FIRST REFUSAL

ARTICLE II. CORPORATE OPPORTUNITY

ARTICLE III. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF THE STOCKHOLDERS

ARTICLE V. TERMINATION

ARTICLE VI. MISCELLANEOUS PROVISIONS

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