Document:

Loan and Security Agreement

 Exhibit 10.56 
  
 Silicon Valley Bank 
  
 Loan and Security Agreement 
  

			
	Borrower:	 	Micro Therapeutics, Inc.
	 Address:
	 	2 Goodyear
	 	 	 Irvine, California 92618

		
	 Date:
	 	May 6, 2005

  
 THIS LOAN AND SECURITY
AGREEMENT is entered into on the above date between SILICON VALLEY BANK (“Silicon”), whose address is 3003 Tasman Drive, Santa Clara, California 95054 and the borrower(s) named above (jointly and severally, the “Borrower”),
whose chief executive office is located at the above address (“Borrower’s Address”). The Schedule to this Agreement (the “Schedule”) shall for all purposes be deemed to be a part of this Agreement, and the same is an
integral part of this Agreement. (Definitions of certain terms used in this Agreement are set forth in Section 8 below.) 
  
 1. LOANS. 
  
 1.1 Loans. Silicon will make loans to Borrower (the “Loans”) up to the amounts (the “Credit Limit”) shown on the
Schedule, provided no Default or Event of Default has occurred and is continuing, and subject to deduction of Reserves for accrued interest and such other Reserves as Silicon deems proper from time to time in its good faith business judgment.

  
 1.2 Interest. All Loans and all other monetary
Obligations shall bear interest at the rate shown on the Schedule, except where expressly set forth to the contrary in this Agreement. Interest shall be payable monthly, on the last day of the month. Interest may, in Silicon’s discretion, be
charged to Borrower’s loan account, and the same shall thereafter bear interest at the same rate as the other Loans. Silicon may, in its discretion, charge interest to Borrower’s Deposit Accounts maintained with Silicon. Regardless of the
amount of Obligations that may be outstanding from time to time, Borrower shall pay Silicon minimum monthly interest during the term of this Agreement in the amount set forth on the Schedule (the “Minimum Monthly Interest”). 
  
 1.3 Overadvances. If at any time or for any reason the total of
all outstanding Loans and all other monetary Obligations exceeds the Credit Limit (an “Overadvance”), Borrower shall immediately pay the amount of the excess to Silicon, without notice or demand. Without limiting Borrower’s obligation
to repay to Silicon the amount of any Overadvance, Borrower agrees to pay Silicon interest on the outstanding amount of any Overadvance, on demand, at the Default Rate. 
  
 1.4 Fees. Borrower shall pay Silicon the fees shown on the Schedule, which are in addition to all interest and
other sums payable to Silicon and are not refundable. 
  
 1.5 Loan Requests. To obtain a Loan, Borrower shall make a request to Silicon by facsimile or telephone. Loan requests received after 12:00 Noon (California time) will not be considered by Silicon until the next Business Day.
Silicon may rely on any telephone request for a Loan given by a person whom Silicon believes is an authorized representative of Borrower, and Borrower will indemnify Silicon for any loss Silicon suffers as a result of that reliance. 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 1.6 Letters of Credit. [Not Applicable] 
  
 2. SECURITY INTEREST. To secure the payment and performance of all of the
Obligations when due, Borrower hereby grants to Silicon a security interest in all of the following (collectively, the “Collateral”): all right, title and interest of Borrower in and to all of the following, whether now owned or hereafter
arising or acquired and wherever located: all Accounts; all Inventory; all Equipment; all Deposit Accounts; all General Intangibles (including without limitation all Intellectual Property); all Investment Property; all Other Property, provided,
however, that Collateral shall not include more than 66 2/3% of Borrower’s ownership interest in Dendron
GmbH; and any and all claims, rights and interests in any of the above, and all guaranties and security for any of the above, and all substitutions and replacements for, additions, accessions, attachments, accessories, and improvements to, and
proceeds (including proceeds of any insurance policies, proceeds of proceeds and claims against third parties) of, any and all of the above, and all Borrower’s books relating to any and all of the above. 
  
 3. REPRESENTATIONS, WARRANTIES AND COVENANTS OF BORROWER. 
  
 In order to induce Silicon to enter into this Agreement and to make Loans,
Borrower represents and warrants to Silicon as follows, and Borrower covenants that the following representations will continue to be true, and that Borrower will at all times comply with all of the following covenants, throughout the term of this
Agreement and until all Obligations have been paid and performed in full: 
  
 3.1 Corporate Existence and Authority. Borrower is and will continue to be, duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation. Borrower is and
will continue to be qualified and licensed to do business in all jurisdictions in which any failure to do so would result in a Material Adverse Change. The execution, delivery and performance by Borrower of this Agreement, and all other documents
contemplated hereby (i) have been duly and validly authorized, (ii) are enforceable against Borrower in accordance with their terms (except as enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to creditors’ rights generally), and (iii) do not violate Borrower’s articles or certificate of incorporation, or Borrower’s by-laws, or any law or any material agreement or instrument which is
binding upon Borrower or its property, and (iv) do not constitute grounds for acceleration of any material indebtedness or obligation under any agreement or instrument which is binding upon Borrower or its property. 
  
 3.2 Name; Trade Names and Styles. The name of Borrower set
forth in the heading to this Agreement is its correct name. Listed in the Representations are all prior names of Borrower and all of Borrower’s present and prior trade names. Borrower shall give Silicon 30 days’ prior written notice before
changing its name or doing business under any other name. Borrower has complied, and will in the future comply, in all material respects, with all laws relating to the conduct of business under a fictitious business name, except where the failure to
so comply would not reasonably be expected to result in a Material Adverse Change. 
  
 3.3 Place of Business; Location of Collateral. The address set forth in the heading to this Agreement is Borrower’s chief executive office. In addition, Borrower has places of business and
Collateral is located only at the locations set forth in the Representations. Borrower will give Silicon at least 30 days prior written notice before opening any additional place of business, changing its chief executive office, or moving any of the
Collateral to a location other than Borrower’s Address or one of the locations set forth in the Representations, except that Borrower may (a) maintain sales offices in the ordinary course of business at which not more than a total of $10,000
fair market value of Equipment is located, (b) 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 maintain Inventory on consignment to Borrower’s customers located in the United States, not to exceed a total of
$10,000 fair market value of Inventory for each such customer and $100,000 in the aggregate during the term hereof, and/or (c) maintain Inventory on consignment (via ev3 Endovascular, Inc., a Delaware corporation formerly known as ev3, Inc.
(hereinafter, “ev3”), and/or ev3 International, Inc.) to Borrower’s customers located outside the United States, not to exceed a total of $1,250,000 fair market value of Inventory in the aggregate during the term hereof. 

 
 3.4 Title to Collateral; Perfection; Permitted Liens.

  
 (a) Borrower is now, and will at all times in the future be,
the sole owner of all the Collateral, except for items of Equipment which are leased to Borrower. The Collateral now is and will remain free and clear of any and all liens, charges, security interests, encumbrances and adverse claims, except for
Permitted Liens. Silicon now has, and will continue to have, a first-priority perfected and enforceable security interest in all of the Collateral, subject only to the Permitted Liens, and Borrower will at all times defend Silicon and the Collateral
against all claims of others. 
  
 (b) Borrower has set forth in
the Representations all of Borrower’s Deposit Accounts, and Borrower will give Silicon five Business Days advance written notice before establishing any new Deposit Accounts and will cause the institution where any such new Deposit Account is
maintained to execute and deliver to Silicon a control agreement in form sufficient to perfect Silicon’s security interest in the Deposit Account and otherwise satisfactory to Silicon in its good faith business judgment. Nothing herein limits
any requirements which may be set forth in the Schedule as to where Deposit Accounts will be maintained. 
  
 (c) In the event that Borrower shall at any time after the date hereof have any commercial tort claims against others, which it is asserting or intends to
assert, and in which the potential recovery exceeds $100,000, Borrower shall promptly notify Silicon thereof in writing and provide Silicon with such information regarding the same as Silicon shall request (unless providing such information would
waive the Borrower’s attorney-client privilege). Such notification to Silicon shall constitute a grant of a security interest in the commercial tort claim and all proceeds thereof to Silicon, and Borrower shall execute and deliver all such
documents and take all such actions as Silicon shall request in connection therewith. 
  
 (d) None of the Collateral now is or will be affixed to any real property in such a manner, or with such intent, as to become a fixture. Borrower is not and will not become a lessee under any real property lease
pursuant to which the lessor may obtain any rights in any of the Collateral and no such lease now prohibits, restrains, impairs or will prohibit, restrain or impair Borrower’s right to remove any Collateral from the leased premises. Whenever
any Collateral is located upon premises in which any third party has an interest, Borrower shall, whenever requested by Silicon, use its best efforts to cause such third party to execute and deliver to Silicon, in form acceptable to Silicon, such
waivers and subordinations as Silicon shall specify in its good faith business judgment; provided, however, that subject to the terms of Section 3.3(b) above and so long as no Default or Event of Default has occurred and is continuing, the
foregoing waivers and subordinations shall not be required to be obtained from Borrower’s customers to whom Borrower ships Inventory on consignment. Borrower will keep in full force and effect, and will comply with all material terms of, any
lease of real property where any of the Collateral now or in the future may be located. 
  
 3.5 Maintenance of Collateral. Borrower will maintain the Collateral in good working condition (ordinary wear and tear excepted), and Borrower will not use the Collateral for any unlawful purpose.
Borrower will immediately advise Silicon in writing of any material loss or damage to the Collateral. 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 3.6 Books and Records. Borrower has maintained and will maintain at Borrower’s
Address complete and accurate books and records, comprising an accounting system in accordance with GAAP. 
  
 3.7 Financial Condition, Statements and Reports. All financial statements now or in the future delivered to Silicon have been, and will be,
prepared in conformity with GAAP and now and in the future will fairly present the results of operations and financial condition of Borrower, in accordance with GAAP, at the times and for the periods therein stated. Between December 31, 2004, the
last date covered by any such statement provided to Silicon, and the date hereof there has been no Material Adverse Change. 
  
 3.8 Tax Returns and Payments; Pension Contributions. Borrower has timely filed, and will timely file, all required tax returns and reports,
and Borrower has timely paid, and will timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions now or in the future owed by Borrower. Borrower may, however, defer payment of any contested taxes, provided that
Borrower (i) in good faith contests Borrower’s obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (ii) notifies Silicon in writing of the commencement of, and any material development in,
the proceedings, and (iii) posts bonds or takes any other steps required to keep the contested taxes from becoming a lien upon any of the Collateral. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax
years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid, and shall continue to pay all amounts necessary to fund all present and future pension, profit sharing and deferred compensation plans in
accordance with their terms, and Borrower has not and will not withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any such plan which could reasonably be expected
to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
  

3.9 Compliance with Law. Borrower has, to the best of its knowledge, complied, and will comply, in all material respects, with all
provisions of all foreign, federal, state and local laws and regulations applicable to Borrower, including, but not limited to, those relating to Borrower’s ownership of real or personal property, the conduct and licensing of Borrower’s
business, and all environmental matters. 
  
 3.10
Litigation. Except for the litigation disclosed by Borrower in Part I, Item 3 of its form 10 KSB filed March 31, 2005 (for the period ending December 31, 2004) with the Securities and exchange Commission (a copy of which has been provided to
Silicon), there is no claim, suit, litigation, proceeding or investigation pending or (to best of Borrower’s knowledge) threatened against or affecting Borrower in any court or before any governmental agency (or any basis therefor known to
Borrower) which could reasonably be expected to result, either separately or in the aggregate, in any Material Adverse Change. Borrower will promptly inform Silicon in writing of any claim, proceeding, litigation or investigation in the future
threatened or instituted against Borrower involving any single claim of $50,000 or more, or involving $100,000 or more in the aggregate. 
  
 3.11 Use of Proceeds. All proceeds of all Loans shall be used solely for lawful business purposes. Borrower is not purchasing or carrying
any “margin stock” (as defined in Regulation U of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan will be used to purchase or carry any “margin stock” or to extend credit to others
for the purpose of purchasing or carrying any “margin stock.” 
  
 4. ACCOUNTS. 
  
 4.1 Representations
Relating to Accounts. Borrower represents and warrants to Silicon as follows: Each Account with respect to which Loans are requested by Borrower shall, on the date each Loan is requested and made, (i) represent an undisputed bona fide
existing unconditional obligation of the 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 Account Debtor created by the sale, delivery, and acceptance of goods or the rendition of services, or the
non-exclusive licensing of Intellectual Property, in the ordinary course of Borrower’s business, and (ii) meet the Minimum Eligibility Requirements set forth in Section 8 below. 
  
 4.2 Representations Relating to Documents and Legal Compliance. Borrower represents and warrants to Silicon as
follows: All statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Accounts are and shall be true and correct and all such invoices, instruments and other documents and all of
Borrower’s books and records are and shall be genuine and in all respects what they purport to be. All sales and other transactions underlying or giving rise to each Account shall comply in all material respects with all applicable laws and
governmental rules and regulations. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Accounts are and shall be genuine, and all such documents, instruments and
agreements are and shall be legally enforceable in accordance with their terms. 
  
 4.3 Schedules and Documents relating to Accounts. Borrower shall deliver to Silicon transaction reports and schedules of collections, as provided in the Schedule, on Silicon’s standard forms;
provided, however, that Borrower’s failure to execute and deliver the same shall not affect or limit Silicon’s security interest and other rights in all of Borrower’s Accounts, nor shall Silicon’s failure to advance or lend
against a specific Account affect or limit Silicon’s security interest and other rights therein. If requested by Silicon, Borrower shall furnish Silicon with copies (or, at Silicon’s request, originals) of all contracts, orders, invoices,
and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts, and Borrower warrants the genuineness of all
of the foregoing. Borrower shall also furnish to Silicon an aged accounts receivable trial balance as provided in the Schedule. In addition, Borrower shall deliver to Silicon, on its request, the originals of all instruments, chattel paper, security
agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary indorsements, and copies of all credit memos. 
  
 4.4 Collection of Accounts. Borrower shall have the right to collect all Accounts, unless and until a Default
or an Event of Default has occurred and is continuing. Whether or not an Event of Default has occurred and is continuing, Borrower shall hold all payments on, and proceeds of, Accounts in trust for Silicon, and Borrower shall immediately deliver all
such payments and proceeds to Silicon in their original form, duly endorsed, to be applied to the Obligations in such order as Silicon shall determine. Silicon may, in its good faith business judgment, require that all proceeds of Collateral be
deposited by Borrower into a lockbox account, or such other “blocked account” as Silicon may specify, pursuant to a blocked account agreement in such form as Silicon may specify in its good faith business judgment. 
  
 4.5. Remittance of Proceeds. All proceeds arising from the
disposition of any Collateral shall be delivered, in kind, by Borrower to Silicon in the original form in which received by Borrower not later than the following Business Day after receipt by Borrower, to be applied to the Obligations in such order
as Silicon shall determine; provided that, if no Default or Event of Default has occurred and is continuing, Borrower shall not be obligated to remit to Silicon the proceeds of the sale of worn out or obsolete Equipment disposed of by Borrower in
good faith in an arm’s length transaction for an aggregate purchase price of $25,000 or less (for all such transactions in any fiscal year). Borrower agrees that it will not commingle proceeds of Collateral with any of Borrower’s other
funds or property, but will hold such proceeds separate and apart from such other funds and property and in an express trust for Silicon; provided, however, that if an Account Debtor inadvertently remits or deposits proceeds of Collateral
into a Deposit Account containing Borrower’s other funds or property, Borrower shall hold such proceeds in an express trust for Silicon and shall immediately notify Silicon of such deposit, as to 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 allow Silicon to withdraw and re-deposit such proceeds of Collateral into the appropriate Deposit Account (as
determined by Silicon in its good faith business judgment) prior to the close of Business Day during which such deposit was erroneously remitted or deposited. Nothing in this Section limits the restrictions on disposition of Collateral set forth
elsewhere in this Agreement. 
  
 4.6 Disputes.
Borrower shall notify Silicon promptly of all disputes or claims relating to Accounts. Borrower shall not forgive (completely or partially), compromise or settle any Account for less than payment in full, or agree to do any of the foregoing,
except that Borrower may do so, provided that: (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, and in arm’s length transactions, which are reported to Silicon on the regular reports
provided to Silicon; (ii) no Default or Event of Default has occurred and is continuing; and (iii) taking into account all such discounts, settlements and forgiveness, the total outstanding Loans will not exceed the Credit Limit. 
  
 4.7 Returns. Provided no Event of Default has occurred and is
continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly determine the reason for such return and promptly issue a credit memorandum to the Account Debtor in the appropriate amount. In the event any attempted
return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall hold the returned Inventory in trust for Silicon, and immediately notify Silicon of the return of the Inventory. 
  
 4.8 Verification. Silicon may, from time to time, verify
directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, by means of mail, telephone or otherwise, either in the name of Borrower or Silicon or such other name as Silicon may choose. 

 
 4.9 No Liability. Silicon shall not be responsible or liable
for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to
settle, collection or failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Silicon be deemed to be responsible for any of Borrower’s obligations under any contract or
agreement giving rise to an Account. Nothing herein shall, however, relieve Silicon from liability for its own gross negligence or willful misconduct. 
  
 5. ADDITIONAL DUTIES OF BORROWER. 
  
 5.1 Financial and Other Covenants. Borrower shall at all times comply with the financial and other covenants set forth in the Schedule.

  
 5.2 Insurance. Borrower shall, at all times
insure all of the tangible personal property Collateral and carry such other business insurance, with insurers reasonably acceptable to Silicon, in such form and amounts as Silicon may reasonably require and that are customary and in accordance with
standard practices for Borrower’s industry and locations, and Borrower shall provide evidence of such insurance to Silicon. All such insurance policies shall name Silicon as an additional loss payee, and shall contain a lenders loss payee
endorsement in form reasonably acceptable to Silicon. Upon receipt of the proceeds of any such insurance, Silicon shall apply such proceeds in reduction of the Obligations as Silicon shall determine in its good faith business judgment, except that,
provided no Default or Event of Default has occurred and is continuing, Silicon shall release to Borrower insurance proceeds with respect to Equipment totaling less than $100,000, which shall be utilized by Borrower for the replacement of the
Equipment with respect to which the insurance proceeds were paid. Silicon may require reasonable assurance that the insurance proceeds so released will be so used. If Borrower fails to provide or pay for any insurance, Silicon may, but is not
obligated to, obtain the same at Borrower’s expense. Borrower shall promptly deliver to Silicon copies of all material reports made to insurance companies. 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 5.3 Reports. Borrower, at its expense, shall provide Silicon with the written reports
set forth in the Schedule, and such other written reports with respect to Borrower (including budgets, sales projections, operating plans and other financial documentation), as Silicon shall from time to time specify in its good faith business
judgment. 
  
 5.4 Access to Collateral, Books and
Records. At reasonable times, and on one Business Day’s notice, Silicon, or its agents, shall have the right to inspect the Collateral, and the right to audit and copy Borrower’s books and records. Such inspections and audits may
be done by Silicon quarterly or at such other times as Silicon shall determine in its good faith business judgment. Silicon shall take reasonable steps to keep confidential all information obtained in any such inspection or audit, but Silicon shall
have the right to disclose any such information to its auditors, regulatory agencies, and attorneys, and pursuant to any subpoena or other legal process. The foregoing inspections and audits shall be at Borrower’s expense and the charge
therefor shall be $750 per person per day (or such higher amount as shall represent Silicon’s then current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrower and Silicon schedule an audit more than 10
days in advance, and Borrower seeks to reschedules the audit with less than 10 days written notice to Silicon, then (without limiting any of Silicon’s rights or remedies), Borrower shall pay Silicon a cancellation fee of $1,000 plus any
out-of-pocket expenses incurred by Silicon, to compensate Silicon for the anticipated costs and expenses of the cancellation. 
  
 5.5 Negative Covenants. Except as may be permitted in the Schedule, Borrower shall not, without Silicon’s prior written consent (which
shall be a matter of its good faith business judgment), do any of the following: (i) merge or consolidate with another corporation or entity; (ii) acquire any assets, except in the ordinary course of business; (iii) enter into any other transaction
outside the ordinary course of business; (iv) sell or transfer any Collateral, except for the sale of finished Inventory in the ordinary course of Borrower’s business, and except for the sale of obsolete or unneeded Equipment in the ordinary
course of business; (v) store any Inventory or other Collateral with any warehouseman or other third party (other than ev3, provided that ev3 shall have entered into a bailee or other agreement in form and substance satisfactory to Silicon in its
sole discretion); (vi) sell any Inventory on a sale-or-return, guaranteed sale, consignment, or other contingent basis, except as expressly permitted by and subject to the terms of Section 3.3(b) above; (vii) make any loans of any money or other
assets; (viii) incur any debts, outside the ordinary course of business, which would result in a Material Adverse Change; (ix) guarantee or otherwise become liable with respect to the obligations of another party or entity; (x) pay or declare any
dividends on Borrower’s stock (except for dividends payable solely in stock of Borrower); (xi) redeem, retire, purchase or otherwise acquire, directly or indirectly, any of Borrower’s stock or other equity securities; (xii) make any change
in Borrower’s capital structure which would result in a Material Adverse Change; or (xiii) engage, directly or indirectly, in any business other than the businesses currently engaged in by Borrower or reasonably related thereto; or (xiv)
dissolve or elect to dissolve. Transactions permitted by the foregoing provisions of this Section are only permitted if no Default or Event of Default would occur as a result of such transaction. 
  
 5.6 Litigation Cooperation. Should any third-party suit or
proceeding be instituted by or against Silicon with respect to any Collateral or relating to Borrower, Borrower shall, without expense to Silicon, make available Borrower and its officers, employees and agents and Borrower’s books and records,
to the extent that Silicon may deem them reasonably necessary in order to prosecute or defend any such suit or proceeding. 
  
 5.7 Further Assurances. Borrower agrees, at its expense, on request by Silicon, to execute all documents and take all actions, as Silicon,
may, in its good faith business judgment, deem necessary or useful in order to perfect and maintain Silicon’s perfected first-priority security interest in the Collateral (subject to Permitted Liens), and in order to fully consummate the
transactions contemplated by this Agreement. 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 6. TERM. 
  
 6.1 Maturity Date. This Agreement shall continue in effect until the maturity date set forth on the Schedule (the “Maturity
Date”), subject to Sections 6.2 and 6.3 below. 
  
 6.2
Early Termination. This Agreement may be terminated prior to the Maturity Date as follows: (i) by Borrower, effective three Business Days after written notice of termination is given to Silicon; or (ii) by Silicon at any time after the
occurrence and during the continuance of an Event of Default, without notice, effective immediately. If this Agreement is terminated by Borrower or by Silicon under this Section 6.2, Borrower shall pay to Silicon a termination fee in an amount equal
to one percent (1.0%) of the Maximum Credit Limit, provided that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from another division of Silicon Valley Bank. The termination fee shall be due and
payable on the effective date of termination and thereafter shall bear interest at a rate equal to the highest rate applicable to any of the Obligations. 
  

6.3 Payment of Obligations. On the Maturity Date or on any earlier effective date of termination, Borrower shall pay and perform in full
all Obligations, whether evidenced by installment notes or otherwise, and whether or not all or any part of such Obligations are otherwise then due and payable. Without limiting the generality of the foregoing, if on the Maturity Date, or on any
earlier effective date of termination, there are any outstanding Letters of Credit issued by Silicon or issued by another institution based upon an application, guarantee, indemnity or similar agreement on the part of Silicon, then on such date
Borrower shall provide to Silicon cash collateral in an amount equal to 105% of the face amount of all such Letters of Credit plus all interest, fees and cost due or to become due in connection therewith (as estimated by Silicon in its good faith
business judgment), to secure all of the Obligations relating to said Letters of Credit, pursuant to Silicon’s then standard form cash pledge agreement; provided that the foregoing shall not apply to that certain outstanding Letter of Credit
No. SVB02I54205 that is secured by a certificate of deposit maintained at Silicon (the “CD Security”) as long as the CD Security continues to be maintained at Silicon Notwithstanding any termination of this Agreement, all of Silicon’s
security interests in all of the Collateral and all of the terms and provisions of this Agreement shall continue in full force and effect until all Obligations have been paid and performed in full; provided that Silicon may, in its sole discretion,
refuse to make any further Loans after termination. No termination shall in any way affect or impair any right or remedy of Silicon, nor shall any such termination relieve Borrower of any Obligation to Silicon, until all of the Obligations have been
paid and performed in full. Upon payment and performance in full of all the Obligations and termination of this Agreement, Silicon shall promptly terminate its financing statements with respect to the Borrower and deliver to Borrower such other
documents as may be required to fully terminate Silicon’s security interests. 
  
 7. EVENTS OF DEFAULT AND REMEDIES. 
  
 7.1 Events of Default. The occurrence of any of the following events shall constitute an “Event of Default” under this Agreement, and Borrower shall give Silicon immediate written notice thereof: (a) Any warranty,
representation, statement, report or certificate made or delivered to Silicon by Borrower or any of Borrower’s officers, employees or agents, now or in the future, shall be untrue or misleading in a material respect when made or deemed to be
made; or (b) Borrower shall fail to pay when due any Loan or any interest thereon or any other monetary Obligation; or (c) the total Loans and other Obligations outstanding at any time shall exceed the Credit Limit; or (d) Borrower shall fail to
comply with any of the financial covenants set forth in the Schedule, or shall fail to perform any other non- 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 monetary Obligation which by its nature cannot be cured, or shall fail to permit Silicon to conduct an inspection or
audit as specified in Section 5.4 hereof; or (e) Borrower shall fail to perform any other non-monetary Obligation, which failure is not cured within five Business Days after the date due; or (f) any levy, assessment, attachment, seizure, lien or
encumbrance (other than a Permitted Lien) is made on all or any part of the Collateral which is not cured within 10 days after the occurrence of the same; or (g) any default or event of default occurs under any obligation secured by a Permitted
Lien, which is not cured within any applicable cure period or waived in writing by the holder of the Permitted Lien; or (h) Borrower breaches any material contract or obligation, which has resulted or may reasonably be expected to result in a
Material Adverse Change; or (i) Dissolution, termination of existence, insolvency or business failure of Borrower; or appointment of a receiver, trustee or custodian, for all or any part of the property of, assignment for the benefit of creditors
by, or the commencement of any proceeding by Borrower under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in the future in effect; or (j) the
commencement of any proceeding against Borrower or any guarantor of any of the Obligations under any reorganization, bankruptcy, insolvency, arrangement, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, now or in
the future in effect, which is not cured by the dismissal thereof within 30 days after the date commenced; or (k) revocation or termination of, or limitation or denial of liability upon, any guaranty of the Obligations or any attempt to do any of
the foregoing, or commencement of proceedings by any guarantor of any of the Obligations under any bankruptcy or insolvency law; or (l) revocation or termination of, or limitation or denial of liability upon, any pledge of any certificate of
deposit, securities or other property or asset of any kind pledged by any third party to secure any or all of the Obligations, or any attempt to do any of the foregoing, or commencement of proceedings by or against any such third party under any
bankruptcy or insolvency law; or (m) Borrower makes any payment on account of any indebtedness or obligation which has been subordinated to the Obligations other than as permitted in the applicable subordination agreement, or if any Person who has
subordinated such indebtedness or obligations terminates or in any way limits his subordination agreement; or (n) there shall be a change in the record or beneficial ownership of an aggregate of more than 35% of the outstanding shares of stock of
Borrower, in one or more transactions, compared to the ownership of outstanding shares of stock of Borrower in effect on the date hereof, without the prior written consent of Silicon; it being understood that (I) the proposed acquisition by ev3,
Inc. of approximately 20% of the outstanding equity securities of Borrower, and (II) the proposed initial public offering of common stock by ev3, Inc., both as heretofore disclosed in writing to Silicon, shall not constitute an Event of Default
under this Section 7.1(n); or (o) Borrower shall generally not pay its debts as they become due, or Borrower shall conceal, remove or transfer any part of its property, with intent to hinder, delay or defraud its creditors, or make or suffer any
transfer of any of its property which may be fraudulent under any bankruptcy, fraudulent conveyance or similar law; or (p) a Material Adverse Change shall occur. Silicon may cease making any Loans hereunder during any of the above cure periods, and
thereafter if an Event of Default has occurred and is continuing. 
  
 7.2 Remedies. Upon the occurrence and during the continuance of any Event of Default, and at any time thereafter, Silicon, at its option, and without notice or demand of any kind (all of which are hereby expressly waived by
Borrower), may do any one or more of the following: (a) Cease making Loans or otherwise extending credit to Borrower under this Agreement or any other Loan Document; (b) Accelerate and declare all or any part of the Obligations to be immediately
due, payable, and performable, notwithstanding any deferred or installment payments allowed by any instrument evidencing or relating to any Obligation; (c) Take possession of any or all of the Collateral wherever it may be found, and for that
purpose Borrower hereby authorizes Silicon without judicial process to enter onto any of Borrower’s premises without interference to search for, take possession of, keep, store, or remove any of the Collateral, and remain on the premises or
cause a custodian to remain on the premises 

			
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 in exclusive control thereof, without charge for so long as Silicon deems it necessary, in its good faith business
judgment, in order to complete the enforcement of its rights under this Agreement or any other agreement; provided, however, that should Silicon seek to take possession of any of the Collateral by court process, Borrower hereby irrevocably waives:
(i) any bond and any surety or security relating thereto required by any statute, court rule or otherwise as an incident to such possession; (ii) any demand for possession prior to the commencement of any suit or action to recover possession
thereof; and (iii) any requirement that Silicon retain possession of, and not dispose of, any such Collateral until after trial or final judgment; (d) Require Borrower to assemble any or all of the Collateral and make it available to Silicon at
places designated by Silicon which are reasonably convenient to Silicon and Borrower, and to remove the Collateral to such locations as Silicon may deem advisable; (e) Complete the processing, manufacturing or repair of any Collateral prior to a
disposition thereof and, for such purpose and for the purpose of removal, Silicon shall have the right to use Borrower’s premises, vehicles, hoists, lifts, cranes, and other Equipment and all other property without charge; (f) Sell, lease or
otherwise dispose of any of the Collateral, in its condition at the time Silicon obtains possession of it or after further manufacturing, processing or repair, at one or more public and/or private sales, in lots or in bulk, for cash, exchange or
other property, or on credit, and to adjourn any such sale from time to time without notice other than oral announcement at the time scheduled for sale. Silicon shall have the right to conduct such disposition on Borrower’s premises without
charge, for such time or times as Silicon deems reasonable, or on Silicon’s premises, or elsewhere and the Collateral need not be located at the place of disposition. Silicon may directly or through any affiliated company purchase or lease any
Collateral at any such public disposition, and if permissible under applicable law, at any private disposition. Any sale or other disposition of Collateral shall not relieve Borrower of any liability Borrower may have if any Collateral is defective
as to title or physical condition or otherwise at the time of sale; (g) Demand payment of, and collect any Accounts and General Intangibles comprising Collateral and, in connection therewith, Borrower irrevocably authorizes Silicon to endorse or
sign Borrower’s name on all collections, receipts, instruments and other documents, to take possession of and open mail addressed to Borrower and remove therefrom payments made with respect to any item of the Collateral or proceeds thereof,
and, in Silicon’s good faith business judgment, to grant extensions of time to pay, compromise claims and settle Accounts and the like for less than face value; (h) Offset against any sums in any of Borrower’s general, special or other
Deposit Accounts with Silicon against any or all of the Obligations; and (i) Demand and receive possession of any of Borrower’s federal and state income tax returns and the books and records utilized in the preparation thereof or referring
thereto. All reasonable attorneys’ fees, expenses, costs, liabilities and obligations incurred by Silicon with respect to the foregoing shall be added to and become part of the Obligations, shall be due on demand, and shall bear interest at a
rate equal to the highest interest rate applicable to any of the Obligations. Without limiting any of Silicon’s rights and remedies, from and after the occurrence and during the continuance of any Event of Default, the interest rate applicable
to the Obligations shall be increased by an additional four percent per annum (the “Default Rate”). 
  
 7.3 Standards for Determining Commercial Reasonableness. Borrower and Silicon agree that a sale or other disposition (collectively,
“sale”) of any Collateral which complies with the following standards will conclusively be deemed to be commercially reasonable: (i) Notice of the sale is given to Borrower at least ten days prior to the sale, and, in the case of a public
sale, notice of the sale is published at least five days before the sale in a newspaper of general circulation in the county where the sale is to be conducted; (ii) Notice of the sale describes the collateral in general, non-specific terms; (iii)
The sale is conducted at a place designated by Silicon, with or without the Collateral being present; (iv) The sale commences at any time between 8:00 a.m. and 6:00 p.m; (v) Payment of the purchase price in cash or by cashier’s check or wire
transfer is required; (vi) With respect to any sale of any of the Collateral, Silicon may (but is not obligated to) direct any prospective purchaser to ascertain directly from Borrower any and all information concerning the same. Silicon shall be
free to employ other methods of noticing and selling the Collateral, in its discretion, if they are commercially reasonable. 

			
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 7.4 Power of Attorney. Upon the occurrence and during the continuance of any Event of
Default, without limiting Silicon’s other rights and remedies, Borrower grants to Silicon an irrevocable power of attorney coupled with an interest, authorizing and permitting Silicon (acting through any of its employees, attorneys or agents)
at any time, at its option, but without obligation, with or without notice to Borrower, and at Borrower’s expense, to do any or all of the following, in Borrower’s name or otherwise, but Silicon agrees that if it exercises any right
hereunder, it will do so in good faith and in a commercially reasonable manner: (a) Execute on behalf of Borrower any documents that Silicon may, in its good faith business judgment, deem advisable in order to perfect and maintain Silicon’s
security interest in the Collateral, or in order to exercise a right of Borrower or Silicon, or in order to fully consummate all the transactions contemplated under this Agreement, and all other Loan Documents; (b) Execute on behalf of Borrower, any
invoices relating to any Account, any draft against any Account Debtor and any notice to any Account Debtor, any proof of claim in bankruptcy, any Notice of Lien, claim of mechanic’s, materialman’s or other lien, or assignment or
satisfaction of mechanic’s, materialman’s or other lien; (c) Take control in any manner of any cash or non-cash items of payment or proceeds of Collateral; endorse the name of Borrower upon any instruments, or documents, evidence of
payment or Collateral that may come into Silicon’s possession; (d) Endorse all checks and other forms of remittances received by Silicon; (e) Pay, contest or settle any lien, charge, encumbrance, security interest and adverse claim in or to any
of the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; (f) Grant extensions of time to pay, compromise claims and settle Accounts and General Intangibles for less than face value and
execute all releases and other documents in connection therewith; (g) Pay any sums required on account of Borrower’s taxes or to secure the release of any liens therefor, or both; (h) Settle and adjust, and give releases of, any insurance claim
that relates to any of the Collateral and obtain payment therefor; (i) Instruct any third party having custody or control of any books or records belonging to, or relating to, Borrower to give Silicon the same rights of access and other rights with
respect thereto as Silicon has under this Agreement; and (j) Take any action or pay any sum required of Borrower pursuant to this Agreement and any other Loan Documents. Any and all reasonable sums paid and any and all reasonable costs, expenses,
liabilities, obligations and attorneys’ fees incurred by Silicon with respect to the foregoing shall be added to and become part of the Obligations, shall be payable on demand, and shall bear interest at a rate equal to the highest interest
rate applicable to any of the Obligations. In no event shall Silicon’s rights under the foregoing power of attorney or any of Silicon’s other rights under this Agreement be deemed to indicate that Silicon is in control of the business,
management or properties of Borrower. 
  
 7.5 Application of
Proceeds. All proceeds realized as the result of any sale of the Collateral shall be applied by Silicon first to the reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by Silicon in the exercise of its
rights under this Agreement, second to the interest due upon any of the Obligations, and third to the principal of the Obligations, in such order as Silicon shall determine in its sole discretion. Any surplus shall be paid to Borrower or other
persons legally entitled thereto; Borrower shall remain liable to Silicon for any deficiency. If, Silicon, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at
any sale of Collateral, Silicon shall have the option, exercisable at any time, in its good faith business judgment, of either reducing the Obligations by the principal amount of purchase price or deferring the reduction of the Obligations until the
actual receipt by Silicon of the cash therefor. 
  
 7.6
Remedies Cumulative. In addition to the rights and remedies set forth in this Agreement, Silicon shall have all the other rights and remedies accorded a secured party under the California Uniform Commercial Code and under all other
applicable laws, and under any other instrument or agreement now 

			
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 or in the future entered into between Silicon and Borrower, and all of such rights and remedies are cumulative and
none is exclusive. Exercise or partial exercise by Silicon of one or more of its rights or remedies shall not be deemed an election, nor bar Silicon from subsequent exercise or partial exercise of any other rights or remedies. The failure or delay
of Silicon to exercise any rights or remedies shall not operate as a waiver thereof, but all rights and remedies shall continue in full force and effect until all of the Obligations have been fully paid and performed. 
  
 8. DEFINITIONS. As used in this Agreement, the following terms have the
following meanings: 
  
 “Account Debtor” means
the obligor on an Account. 
  
 “Accounts” means
all present and future “accounts” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all accounts receivable and
other sums owing to Borrower. 
  
 “Affiliate”
means, with respect to any Person, a relative, partner, shareholder, director, officer, or employee of such Person, or any parent or subsidiary of such Person, or any Person controlling, controlled by or under common control with such Person.

  
 “Business Day” means a day on which Silicon
is open for business. 
  
 “Code” means the
Uniform Commercial Code as adopted and in effect in the State of California from time to time. 
  
 “Collateral” has the meaning set forth in Section 2 above. 
  
 “continuing” and “during the continuance of” when used with reference to a Default or Event of Default means that the
Default or Event of Default has occurred and has not been either waived in writing by Silicon or cured within any applicable cure period. 
  
 “Default” means any event which with notice or passage of time or both, would constitute an Event of Default. 
  
 “Default Rate” has the meaning set forth in Section 7.2
above. 
  
 “Deposit Accounts” means all present
and future “deposit accounts” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all general and special bank
accounts, demand accounts, checking accounts, savings accounts and certificates of deposit. 
  
 “Eligible Inventory” means Inventory which Silicon, in its good faith business judgment, deems eligible for borrowing. Without limiting the fact that the determination of which Inventory is eligible
for borrowing is a matter of Silicon’s good faith business judgment, the following are the minimum requirements for Inventory to be Eligible Inventory: the Inventory must (i) consist of finished goods, in good, new and salable condition, not be
perishable, not be obsolete or unmerchantable, and not be comprised of raw materials, work in process, packaging materials or supplies; (ii) meet all applicable governmental standards; (iii) have been manufactured in compliance with the Fair Labor
Standards Act; (iv) conform in all respects to the warranties and representations set forth in this Agreement; (v) be at all times subject to Silicon’s duly perfected, first priority security interest; and (vi) be situated at Borrower’s
Address or at one of the locations set forth in the Representations located in the United States. 
  
 “Eligible Accounts” means Accounts and General Intangibles arising in the ordinary course of Borrower’s business from the sale of
goods or the rendition of services, or the non-exclusive licensing of Intellectual Property, which Silicon, in its good faith business judgment, shall deem eligible for borrowing. Without limiting the fact that the determination of which Accounts
are eligible for 

			
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 borrowing is a matter of Silicon’s good faith business judgment, the following (the “Minimum Eligibility
Requirements”) are the minimum requirements for a Account to be an Eligible Account: (i) the Account must not be outstanding for more than 90 days from its invoice date (the “Eligibility Period”), (ii) the Account must not
represent progress billings, or be due under a fulfillment or requirements contract with the Account Debtor, (iii) the Account must not be subject to any contingencies (including Accounts arising from sales on consignment, guaranteed sale or other
terms pursuant to which payment by the Account Debtor may be conditional), (iv) the Account must not be owing from an Account Debtor with whom Borrower has any dispute (whether or not relating to the particular Account), (v) the Account must not be
owing from an Affiliate of Borrower (other than ev3, subject to the limits and requirements applicable to ev3 which are described in Section 1 of the Schedule), (vi) the Account must not be owing from an Account Debtor which is subject to any
insolvency or bankruptcy proceeding, or whose financial condition is not acceptable to Silicon, or which, fails or goes out of a material portion of its business, (vii) the Account must not be owing from the United States or any department, agency
or instrumentality thereof (unless there has been compliance, to Silicon’s satisfaction, with the United States Assignment of Claims Act), (viii) the Account must not be owing from an Account Debtor located outside the United States or Canada
(unless pre-approved by Silicon in its discretion in writing, or backed by a letter of credit satisfactory to Silicon, or FCIA insured satisfactory to Silicon), (ix) the Account must not be owing from an Account Debtor to whom Borrower is or may be
liable for goods purchased from such Account Debtor or otherwise (but, in such case, the Account will be deemed not eligible only to the extent of any amounts owed by Borrower to such Account Debtor). Accounts owing from one Account Debtor will not
be deemed Eligible Accounts to the extent they exceed 25% of the total Accounts outstanding. In addition, if more than 50% of the Accounts owing from an Account Debtor are outstanding for a period longer than their Eligibility Period (without regard
to unapplied credits) or are otherwise not eligible Accounts, then all Accounts owing from that Account Debtor will be deemed ineligible for borrowing. Silicon may, from time to time, in its good faith business judgment, revise the Minimum
Eligibility Requirements, upon written notice to Borrower. 
  
 “Equipment” means all present and future “equipment” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 
  
 “Event of Default” means any of the events set forth in Section 7.1 of this Agreement. 
  
 “GAAP” means generally accepted accounting principles
consistently applied. 
  
 “General Intangibles”
means all present and future “general intangibles” as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all
Intellectual Property, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income tax refunds, security and other deposits, options
to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption
insurance), payments of insurance and rights to payment of any kind. 
  
 “good faith business judgment” means honesty in fact and good faith (as defined in Section 1201 of the Code) in the exercise of Silicon’s business judgment. 
  
 “including” means including (but not limited to). 

			
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 “Intellectual Property” means all present and future (a) copyrights, copyright
rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, (b) trade secret rights, including all rights to unpatented inventions and
know-how, and confidential information; (c) mask work or similar rights available for the protection of semiconductor chips; (d) patents, patent applications and like protections including without limitation improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same; (e) trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are registered, and all applications to register and registrations of the same and
like protections, and the entire goodwill of the business of Borrower connected with and symbolized by any such trademarks; (f) computer software and computer software products; (g) designs and design rights; (h) technology; (i) all claims for
damages by way of past, present and future infringement of any of the rights included above; (j) all licenses or other rights to use any property or rights of a type described above. 
  
 “Inventory” means all present and future “inventory” as defined in the California Uniform
Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished
products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 
  
 “Investment Property” means all present and future
investment property, securities, stocks, bonds, debentures, debt securities, partnership interests, limited liability company interests, options, security entitlements, securities accounts, commodity contracts, commodity accounts, and all financial
assets held in any securities account or otherwise, and all options and warrants to purchase any of the foregoing, wherever located, and all other securities of every kind, whether certificated or uncertificated. 
  
 “Loan Documents” means, collectively, this Agreement, the
Representations, and all other present and future documents, instruments and agreements between Silicon and Borrower, including, but not limited to those relating to this Agreement, and all amendments and modifications thereto and replacements
therefor. 
  
 “Material Adverse Change” means any
of the following: (i) a material adverse change in the business, operations, or financial or other condition of the Borrower, or (ii) a material impairment of the prospect of repayment of any portion of the Obligations; or (iii) a material
impairment of the value or priority of Silicon’s security interests in the Collateral. 
  
 “Obligations” means all present and future Loans, advances, debts, liabilities, obligations, guaranties, covenants, duties and indebtedness at any time owing by Borrower to Silicon, whether evidenced
by this Agreement or any note or other instrument or document, or otherwise, whether arising from an extension of credit, opening of a letter of credit, banker’s acceptance, loan, guaranty, indemnification or otherwise, whether direct or
indirect (including, without limitation, those acquired by assignment and any participation by Silicon in Borrower’s debts owing to others), absolute or contingent, due or to become due, including, without limitation, all interest, charges,
expenses, fees, attorney’s fees, expert witness fees, audit fees, letter of credit fees, collateral monitoring fees, closing fees, facility fees, termination fees, minimum interest charges and any other sums chargeable to Borrower under this
Agreement or under any other Loan Documents. 
  
 “Other
Property” means the following as defined in the California Uniform Commercial Code in effect on the date hereof with such additions to such term as may hereafter be made, and all rights relating thereto: all present and future
“commercial tort claims” (including without limitation any commercial tort claims identified in the Representations), “documents”, “instruments”, “promissory notes”, “chattel 

			
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 paper”, “letters of credit”, “letter-of-credit rights”, “fixtures”, “farm
products” and “money”; and all other goods and personal property of every kind, tangible and intangible, whether or not governed by the California Uniform Commercial Code. 
  
 “Payment” means all checks, wire transfers and other items of payment received by Silicon (including
proceeds of Accounts and payment of the Obligations in full) for credit to Borrower’s outstanding Loans or, if the balance of the Loans have been reduced to zero, for credit to its Deposit Accounts. 
  
 “Permitted Liens” means the following: (i) purchase money
security interests in specific items of Equipment; (ii) leases of specific items of Equipment; (iii) liens for taxes not yet payable; (iv) additional security interests and liens consented to in writing by Silicon, which consent may be withheld in
its good faith business judgment; (v) security interests being terminated substantially concurrently with this Agreement; (vi) liens of materialmen, mechanics, warehousemen, carriers, or other similar liens arising in the ordinary course of business
and securing obligations which are not delinquent; (vii) liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by liens of the type described above in clauses (i) or (ii) above, provided that any
extension, renewal or replacement lien is limited to the property encumbered by the existing lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase; (viii) Liens in favor of customs and revenue
authorities which secure payment of customs duties in connection with the importation of goods. Silicon will have the right to require, as a condition to its consent under subparagraph (iv) above, that the holder of the additional security interest
or lien sign an intercreditor agreement on Silicon’s then standard form, acknowledge that the security interest is subordinate to the security interest in favor of Silicon, and agree not to take any action to enforce its subordinate security
interest so long as any Obligations remain outstanding, and that Borrower agree that any uncured default in any obligation secured by the subordinate security interest shall also constitute an Event of Default under this Agreement. 
  
 “Person” means any individual, sole proprietorship,
partnership, joint venture, trust, unincorporated organization, association, corporation, government, or any agency or political division thereof, or any other entity. . 
  
 “Representations” means the written Representations and Warranties provided by Borrower to Silicon referred
to in the Schedule. 
  
 “Reserves” means, as of
any date of determination, such amounts as Silicon may from time to time establish and revise in its good faith business judgment, reducing the amount of Loans, Letters of Credit and other financial accommodations which would otherwise be available
to Borrower under the lending formula(s) provided in the Schedule: (a) to reflect events, conditions, contingencies or risks which, as determined by Silicon in its good faith business judgment, do or may adversely affect (i) the Collateral or any
other property which is security for the Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets, business or prospects of Borrower or any Guarantor, or (iii) the security interests and
other rights of Silicon in the Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Silicon’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrower
or any Guarantor to Silicon is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts which Silicon determines in good faith constitutes an Event of Default or may, with notice or
passage of time or both, constitute an Event of Default. 
  
 Other Terms. All accounting terms used in this Agreement, unless otherwise indicated, shall have the meanings given to such terms in accordance with GAAP, consistently applied. All other terms contained in this Agreement, unless
otherwise indicated, shall have the meanings provided by the Code, to the extent such terms are defined therein. 

			
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 9. GENERAL PROVISIONS. 
  
 9.1 Interest Computation. In computing interest on the Obligations, all Payments received after 12:00 Noon
(California time) on any day shall be deemed received on the next Business Day. Bank shall not be required to credit Borrower’s account for the amount of any item of payment which is unsatisfactory to Bank in its good faith business judgment,
and Bank may charge Borrower’s loan account for the amount of any item of payment which is returned to Bank unpaid. 
  
 9.2 Application of Payments. All payments with respect to the Obligations may be applied, and in Silicon’s good faith business judgment
reversed and re-applied, to the Obligations, in such order and manner as Silicon shall determine in its good faith business judgment. 
  
 9.3 Charges to Accounts. Silicon may, in its discretion, require that Borrower pay monetary Obligations in cash to Silicon, or charge them
to Borrower’s Loan account, in which event they will bear interest at the same rate applicable to the Loans. Silicon may also, in its discretion, charge any monetary Obligations to Borrower’s Deposit Accounts maintained with Silicon.

  
 9.4 Monthly Accountings. Silicon shall provide
Borrower monthly with an account of advances, charges, expenses and payments made pursuant to this Agreement. Such account shall be deemed correct, accurate and binding on Borrower and an account stated (except for reverses and reapplications of
payments made and corrections of errors discovered by Silicon), unless Borrower notifies Silicon in writing to the contrary within 60 days after such account is rendered, describing the nature of any alleged errors or omissions. 
  
 9.5 Notices. All notices to be given under this Agreement shall
be in writing and shall be given either personally or by reputable private delivery service or by regular first-class mail, or certified mail return receipt requested, addressed to Silicon or Borrower at the addresses shown in the heading to this
Agreement, or at any other address designated in writing by one party to the other party. Notices to Silicon shall be directed to the Commercial Finance Division, to the attention of the Division Manager or the Division Credit Manager. All notices
shall be deemed to have been given upon delivery in the case of notices personally delivered, or at the expiration of one Business Day following delivery to the private delivery service, or two Business Days following the deposit thereof in the
United States mail, with postage prepaid. 
  
 9.6
Severability. Should any provision of this Agreement be held by any court of competent jurisdiction to be void or unenforceable, such defect shall not affect the remainder of this Agreement, which shall continue in full force and effect.

  
 9.7 Integration. This Agreement and such other
written agreements, documents and instruments as may be executed in connection herewith are the final, entire and complete agreement between Borrower and Silicon and supersede all prior and contemporaneous negotiations and oral representations and
agreements, all of which are merged and integrated in this Agreement. There are no oral understandings, representations or agreements between the parties which are not set forth in this Agreement or in other written agreements signed by the
parties in connection herewith. 
  
 9.8 Waivers;
Indemnity. The failure of Silicon at any time or times to require Borrower to strictly comply with any of the provisions of this Agreement or any other Loan Document shall not waive or diminish any right of Silicon later to demand and
receive strict compliance therewith. Any waiver of any default shall not waive or affect any other default, whether prior or subsequent, and whether or not similar. None of the provisions of this Agreement or any other Loan Document shall be deemed
to have been waived by any act or knowledge of Silicon or its agents or employees, but only by a specific written waiver signed by an authorized officer of Silicon and delivered to Borrower. Borrower waives the benefit of all statutes of limitations
relating to any of the Obligations or this Agreement or any other 

			
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 Loan Document, and Borrower waives demand, protest, notice of protest and notice of default or dishonor, notice of
payment and nonpayment, release, compromise, settlement, extension or renewal of any commercial paper, instrument, account, General Intangible, document or guaranty at any time held by Silicon on which Borrower is or may in any way be liable, and
notice of any action taken by Silicon, unless expressly required by this Agreement. Borrower hereby agrees to indemnify Silicon and its affiliates, subsidiaries, parent, directors, officers, employees, agents, and attorneys, and to hold them
harmless from and against any and all claims, debts, liabilities, demands, obligations, actions, causes of action, penalties, costs and expenses (including reasonable attorneys’ fees), of every kind, which they may sustain or incur based upon
or arising out of any of the Obligations, or any relationship or agreement between Silicon and Borrower, or any other matter, relating to Borrower or the Obligations; provided that this indemnity shall not extend to damages proximately caused by the
indemnitee’s own gross negligence or willful misconduct. Notwithstanding any provision in this Agreement to the contrary, the indemnity agreement set forth in this Section shall survive any termination of this Agreement and shall for all
purposes continue in full force and effect. 
  
 9.9 No
Liability for Ordinary Negligence. Neither Silicon, nor any of its directors, officers, employees, agents, attorneys or any other Person affiliated with or representing Silicon shall be liable for any claims, demands, losses or damages, of
any kind whatsoever, made, claimed, incurred or suffered by Borrower or any other party through the ordinary negligence of Silicon, or any of its directors, officers, employees, agents, attorneys or any other Person affiliated with or representing
Silicon, but nothing herein shall relieve Silicon from liability for its own gross negligence or willful misconduct. 
  
 9.10 Amendment. The terms and provisions of this Agreement may not be waived or amended, except in a writing executed by Borrower and a duly
authorized officer of Silicon. 
  
 9.11 Time of
Essence. Time is of the essence in the performance by Borrower of each and every obligation under this Agreement. 
  
 9.12 Attorneys Fees and Costs. Borrower shall reimburse Silicon for all reasonable attorneys’ fees and all filing, recording, search,
title insurance, appraisal, audit, and other reasonable costs incurred by Silicon, pursuant to, or in connection with, or relating to this Agreement (whether or not a lawsuit is filed), including, but not limited to, any reasonable attorneys’
fees and costs Silicon incurs in order to do the following: prepare and negotiate this Agreement and all present and future documents relating to this Agreement; obtain legal advice in connection with this Agreement or Borrower; enforce, or seek to
enforce, any of its rights; prosecute actions against, or defend actions by, Account Debtors; commence, intervene in, or defend any action or proceeding; initiate any complaint to be relieved of the automatic stay in bankruptcy; file or prosecute
any probate claim, bankruptcy claim, third-party claim, or other claim; examine, audit, copy, and inspect any of the Collateral or any of Borrower’s books and records; protect, obtain possession of, lease, dispose of, or otherwise enforce
Silicon’s security interest in, the Collateral; and otherwise represent Silicon in any litigation relating to Borrower. In satisfying Borrower’s obligation hereunder to reimburse Silicon for attorneys fees, Borrower may, for convenience,
issue checks directly to Silicon’s attorneys, Levy, Small & Lallas, but Borrower acknowledges and agrees that Levy, Small & Lallas is representing only Silicon and not Borrower in connection with this Agreement. If either Silicon or
Borrower files any lawsuit against the other predicated on a breach of this Agreement, the prevailing party in such action shall be entitled to recover its reasonable costs and attorneys’ fees, including (but not limited to) reasonable
attorneys’ fees and costs incurred in the enforcement of, execution upon or defense of any order, decree, award or judgment. All attorneys’ fees and costs to which Silicon may be entitled pursuant to this Paragraph shall immediately become
part of Borrower’s Obligations, shall be due on demand, and shall bear interest at a rate equal to the highest interest rate applicable to any of the Obligations. 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

 9.13 Benefit of Agreement. The provisions of this Agreement shall be binding upon and
inure to the benefit of the respective successors, assigns, heirs, beneficiaries and representatives of Borrower and Silicon; provided, however, that Borrower may not assign or transfer any of its rights under this Agreement without the prior
written consent of Silicon, and any prohibited assignment shall be void. No consent by Silicon to any assignment shall release Borrower from its liability for the Obligations. 
  
 9.14 Joint and Several Liability. If Borrower consists of more than one Person, their liability shall be joint
and several, and the compromise of any claim with, or the release of, any Borrower shall not constitute a compromise with, or a release of, any other Borrower. 
  

9.15 Limitation of Actions. Any claim or cause of action by Borrower against Silicon, its directors, officers, employees, agents,
accountants or attorneys, based upon, arising from, or relating to this Loan Agreement, or any other Loan Document, or any other transaction contemplated hereby or thereby or relating hereto or thereto, or any other matter, cause or thing
whatsoever, occurred, done, omitted or suffered to be done by Silicon, its directors, officers, employees, agents, accountants or attorneys, shall be barred unless asserted by Borrower by the commencement of an action or proceeding in a court of
competent jurisdiction by the filing of a complaint within one year after the first act, occurrence or omission upon which such claim or cause of action, or any part thereof, is based, and the service of a summons and complaint on an officer of
Silicon, or on any other person authorized to accept service on behalf of Silicon, within thirty (30) days thereafter. Borrower agrees that such one-year period is a reasonable and sufficient time for Borrower to investigate and act upon any such
claim or cause of action. The one-year period provided herein shall not be waived, tolled, or extended except by the written consent of Silicon in its sole discretion. This provision shall survive any termination of this Loan Agreement or any other
Loan Document. 
  
 9.16 Paragraph Headings;
Construction. Paragraph headings are only used in this Agreement for convenience. Borrower and Silicon acknowledge that the headings may not describe completely the subject matter of the applicable paragraph, and the headings shall not be
used in any manner to construe, limit, define or interpret any term or provision of this Agreement. This Agreement has been fully reviewed and negotiated between the parties and no uncertainty or ambiguity in any term or provision of this Agreement
shall be construed strictly against Silicon or Borrower under any rule of construction or otherwise. 
  
 9.17 Governing Law; Jurisdiction; Venue. This Agreement and all acts and transactions hereunder and all rights and obligations of Silicon
and Borrower shall be governed by the laws of the State of California. As a material part of the consideration to Silicon to enter into this Agreement, Borrower (i) agrees that all actions and proceedings relating directly or indirectly to this
Agreement shall, at Silicon’s option, be litigated in courts located within California, and that the exclusive venue therefor shall be Santa Clara County; (ii) consents to the jurisdiction and venue of any such court and consents to service of
process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and all rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of any such
action or proceeding. 
  
 9.18 Mutual Waiver of Jury
Trial. BORROWER AND SILICON EACH HEREBY WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO, THIS AGREEMENT OR ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT
BETWEEN SILICON AND BORROWER, OR ANY CONDUCT, ACTS OR OMISSIONS OF SILICON OR BORROWER OR ANY OF THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH SILICON OR BORROWER, IN ALL OF THE FOREGOING CASES, WHETHER
SOUNDING IN CONTRACT OR TORT OR OTHERWISE. 

			
	 Silicon Valley Bank
	  	Loan and Security Agreement                

  

  
  

							
	 Borrower:
	 	Silicon:
		
	     MICRO THERAPEUTICS, INC.
	 	SILICON VALLEY BANK
				
	     By
	 	 /s/ Thomas C. Wilder

	 	By	 	 /s/ Kurt Miklinski

	 	 	 President or Vice President
	 	Title	 	  

				
	     By
	 	 /s/ Bruce Feuchter

	 	 	 	 
	 	 	 Secretary or Ass’t Secretary
	 	 	 	 

  
 Form: -3 (3/7/02) 
 Version -5 

 Silicon Valley Bank 
  
 Schedule to 
  
 Loan and Security Agreement 
  

			
	Borrower:	  	Micro Therapeutics, Inc.
	Address:	  	2 Goodyear
	 	  	Irvine, California 92618
		
	Date:	  	May 6, 2005

  
 This Schedule forms an integral part
of the Loan and Security Agreement between Silicon Valley Bank and the above-borrower of even date. 
  

			
	1. CREDIT LIMIT	  	 
	 (Section 1.1):
	  	An amount not to exceed the lesser of a total of $3,000,000 at any one time outstanding (the “Maximum Credit Limit”), or the sum of (a) and (b) below:
		
	 	  	 (a) 80% (an “Advance Rate”) of the amount of Borrower’s Eligible Accounts (as defined in Section 8 above), plus

		
	 	  	 (b) an amount not to exceed the lesser of:

		
	 	  	 (1) 30% (an “Advance Rate”) of the value of Borrower’s Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost
or market value and determined on a first-in, first-out basis;

		
	 	  	 (2) an amount equal to 50% (an “Advance Rate”) of the Loans outstanding based upon subclause (a) above; or

		
	 	  	 (3) $750,000.

		
	 	  	With respects to Accounts owing from ev3, an Affiliate of Borrower, Silicon may, in its good faith business judgement, deem any of such Accounts eligible for borrowing, but only if such
Account is not outstanding for more than 60 days (such Accounts, the “ev3 Eligible Accounts”); provided, however, that the aggregate amount of ev 3 Eligible Accounts which may be included in the computation of Borrower’s
Eligible Accounts set forth in subclause (a) above shall not exceed the lesser of (x) 50% (an “Advance Rate”) of the amount of the ev 3 Eligible Accounts or (y) $300,000.
		
	 	  	Silicon may, from time to time, modify the Advance Rates, in its good faith business judgment, upon notice to the Borrower, based on changes in collection experience with respect to Accounts,
its evaluation of the Inventory or other issues or factors relating to the Accounts, Inventory or other Collateral.

			
	2. INTEREST	  	 
	
	 Interest Rate (Section 1.2):

		
	 	  	A rate equal to the “Prime Rate” in effect from time to time, plus 2% per annum. Interest shall be calculated on the basis of a 360-day year for the actual number of days
elapsed. As used in this Agreement, “Prime Rate” means the interest rate announced from time to time by Silicon as its “prime rate” (which is a base rate upon which other rates charged by Silicon are based, and it is not
necessarily the best rate available at Silicon). The interest rate applicable to the Obligations shall change on each date there is a change in the Prime Rate.
		
	3. FEES (Section 1.4):	  	 
		
	 Loan Fee:
	  	(a) $30,000, payable concurrently herewith, plus
		
	 	  	(b) one percent (1%) of the Maximum Credit Limit applicable during the second (2nd) year of this facility, which shall be payable on the first (1st) anniversary date of this
Agreement.
		
	 Collateral Monitoring
	  	 
	 Fee:
	  	$1,000, per month, payable in arrears (prorated for any partial month at the beginning and at termination of this Agreement).
		
	 Unused Line Fee:
	  	Borrower shall pay Silicon an Unused Line Fee, in addition to all interest and other fees payable hereunder. The amount of the Unused Line Fee shall be 0.50% per annum multiplied by an
amount equal to the Maximum Credit Limit minus the average daily balance of the outstanding Loans. The Unused Line Fee shall be computed and paid monthly, in arrears (prorated for any partial calendar month at the beginning and at termination of
this Agreement).
		
	4. MATURITY DATE	  	 
	 (Section 6.1):
	  	Two (2) years from the date of this Agreement.

			
	5. FINANCIAL COVENANTS	  	 
	 (Section 5.1):
	  	Borrower shall comply with each of the following covenants. Compliance shall be determined as of the end of each month, except as otherwise specifically provided below:
		
	 Minimum Tangible
	  	 
	 Net Worth:
	  	Borrower shall maintain a Tangible Net Worth of not less than the sum of the applicable amount set forth in subsection (a)(i) or (a)(ii), (b) and (c) below:
		
	 	  	 (a)    (i) $11,000,000, for the period commencing on the date hereof and ending on the first anniversary of this
facility; and

		
	 	  	 (ii) thereafter, an amount to be determined by Silicon in its good faith business judgment;

		
	 	  	 plus

		
	 	  	 (b)    50% of all consideration received after the date hereof for equity securities and subordinated debt of the
Borrower;

		
	 	  	 plus

		
	 	  	 (c)    50% of the Borrower’s net income in each fiscal quarter ending after the date hereof.

		
	 	  	Increases in the Minimum Tangible Net Worth Covenant based on consideration received for equity securities and subordinated debt of the Borrower shall be effective as of the end of the month
in which such consideration is received, and shall continue effective thereafter. Increases in the Minimum Tangible Net Worth Covenant based on net income shall be effective on the last day of the fiscal quarter in which said net income is realized,
and shall continue effective thereafter. In no event shall the Minimum Tangible Net Worth Covenant be decreased.
		
	 Definitions.
	  	For purposes of the foregoing financial covenants, the following term shall have the following meaning:
		
	 	  	“Tangible Net Worth” shall mean the excess of total assets less total liabilities, determined in accordance with GAAP, with the following adjustments:
		
	 	  	 (A) there shall be excluded from assets: (i) notes, accounts receivable and other obligations owing to Borrower from its

			
	 	  	 officers or other Affiliates, and (ii) all assets which would be classified as intangible assets under GAAP, including without limitation goodwill, licenses,
patents, trademarks, trade names, copyrights, capitalized software and organizational costs, licenses and franchises, and (iii) minority investments in other Persons.

		
	 	  	 (B) there shall be excluded from liabilities: all indebtedness which is subordinated to the Obligations under a subordination agreement in form specified by
Silicon or by language in the instrument evidencing the indebtedness which Silicon agrees in writing is acceptable to Silicon in its good faith business judgment.

		
	6. REPORTING.	  	 
	 (Section 5.3):
	  	 
		
	 	  	Borrower shall provide Silicon with the following:
		
	 	  	 1.      Transaction reports and schedules of collections, each week and at the time of each Loan request, on
Silicon’s standard form

		
	 	  	 2.      Monthly accounts receivable agings, aged by invoice date, within fifteen days after the end of each
month.

		
	 	  	 3.      Monthly accounts payable agings, aged by invoice date, and outstanding or held check registers, if
any, within fifteen days after the end of each month.

		
	 	  	 4.      Monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports,
and general ledger, within fifteen days after the end of each month.

		
	 	  	 5.      Monthly schedule listing, by Account Debtor, Borrower’s collections, within ten days after the
end of each month.

		
	 	  	 6.      Monthly perpetual inventory reports for the Inventory valued on a first-in, first-out basis at the
lower of cost or market (in accordance with GAAP) or such other inventory reports as are requested by Silicon in its good faith business judgment, all within fifteen days after the end of each month.

		
	 	  	 7.      Monthly unaudited financial statements, as soon as available, and in any event within thirty days
after the end of each month.

		
	 	  	 8.      Monthly Compliance Certificates, within thirty days after the end of each month, in such form as
Silicon shall reasonably specify, signed by an Authorized Officer of Borrower (defined below), certifying that as of the end of such month Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth
calculations showing compliance with the

			
	 	  	 financial covenants set forth in this Agreement and such other information as Silicon shall reasonably request, including, without limitation, a statement that
at the end of such month there were no held checks. For purposes of this Section 6(8) the term “Authorized Officer” shall mean any of the following officers of Borrower: the Chief Executive Officer, the Chief Financial Officer, Vice
President and Corporate Controller.

		
	 	  	 9.      Quarterly unaudited financial statements, as soon as available, and in any event within forty-five
days after the end of each fiscal quarter of Borrower.

		
	 	  	 10.    Annual operating budgets (including income statements, balance sheets and cash flow statements, by month) for
the upcoming fiscal year of Borrower within thirty days prior to the end of each fiscal year of Borrower.

		
	 	  	 11.    Annual financial statements, as soon as available, and in any event within 180 days following the end of
Borrower’s fiscal year, certified by, and with an unqualified opinion of, independent certified public accountants acceptable to Silicon.

	
	7. BORROWER INFORMATION:
		
	 	  	Borrower represents and warrants that the information set forth in the Representations and Warranties of the Borrower dated February [7], 2005 previously submitted to Silicon (the
“Representations”) is true and correct as of the date hereof.
	
	8. ADDITIONAL PROVISIONS
		
	 	  	 (1)    Banking Relationship. Borrower shall at all times maintain its primary banking relationship with Silicon.
Without limiting the generality of the foregoing, Borrower shall, at all times, maintain not less than 85% of its total cash and investments on deposit with Silicon. As to any Deposit Accounts and investment accounts maintained with another
institution, Borrower shall cause such institution, within 60 days after the date of this Agreement, to enter into a control agreement in form acceptable to Silicon in its good faith business judgment in order to perfect Silicon’s
first-priority security interest in said Deposit Accounts and investment accounts.

		
	 	  	 (2)    Subordination of Inside Debt. All present and future indebtedness of Borrower to its officers, directors
and shareholders (“Inside Debt”) shall, at all times, be subordinated to the Obligations pursuant to a subordination agreement on

			
	 	  	 Silicon’s standard form. Borrower represents and warrants that there is no Inside Debt presently outstanding, except for the following: NONE. Prior to
incurring any Inside Debt in the future, Borrower shall cause the person to whom such Inside Debt will be owed to execute and deliver to Silicon a subordination agreement on Silicon’s standard form.

		
	 	  	 (3)    Affiliates. Borrower represents and warrants to Silicon that (a) Micro Investment LLC (“MI LLC”)
is an Affiliate of Borrower which owns a certain percentage of all issued and outstanding securities of Borrower, and has little or no assets other than its interest in such securities of Borrower; (b) ev3 is an Affiliate of Borrower; (c) each of
Micro Therapeutics International, Inc. (“MTII”) and Dendron GmbH (“Dendron”) is a wholly owned subsidiary of Borrower; and (d) MTII has little or no assets. Without limiting the effect of Section 5.5(iv) of the Loan and Security
Agreement, except as otherwise provided in this Agreement, Borrower covenants and agrees that while this Agreement is in effect: (x) MTII is and will remain inactive, with assets having an aggregate value of less than $5,000, (y) Dendron is and will
remain inactive, with assets in cash of approximately $400,000 (the “Dendron Cash Assets”), which will be utilized as described herein below, and (z) Borrower shall not transfer any assets or Collateral to either of ev3, MI LLC, MTII or
Dendron; provided, however, that Borrower may transfer cash, not to exceed $100,000 per calendar year in the aggregate, to MI LLC and/or ev3 (after ev3 shall have become a shareholder of Borrower), and to Dendron as expressly provided
herein.

		
	 	  	 Notwithstanding Section 5.5(ix) of the Loan and Security Agreement, Borrower may guarantee or otherwise become liable with respect to certain “Dendron
Obligations” (defined below) subject to the foregoing:

		
	 	  	 (a)    Borrower shall not fund any Dendron Obligations unless and until all Dendron Cash Assets shall have first been
utilized by Dendron to fund the same (and in connection therewith Borrower shall, upon demand, provide Silicon with evidence, satisfactory to Silicon in its sole discretion, that the foregoing condition shall have been met); and

		
	 	  	 (b)    Borrower shall not fund any Dendron Obligations in excess of $380,000 per calendar quarter during 2005, and
$1,520,000 in the aggregate during calendar year 2005.

		
	 	  	 For purposes of this Section 8(3), the term “Dendron Obligations” shall mean certain expenses payable by
Dendron

			
	 	  	 during calendar year 2005 either (i) as a result of the closure of Dendron’s manufacturing facility in Bochum, Germany, or (ii) with respect of certain
remaining operations of Dendron, in each case as previously disclosed in writing to Silicon.

		
	 	  	 (4)    Copyrights. Borrower hereby represents and warrants to Silicon as follows:

		
	 	  	 (a) Borrower has no present copyrights, maskworks, software, computer programs and other works of authorship (collectively, “Copyrightable
Intellectual Property”) registered with the United States Copyright Office;

		
	 	  	 (b) Borrower shall undertake all reasonable measures to cause its employees, agents and independent contractors to assign to Borrower all
rights of authorship to any Copyrightable Intellectual Property in which Borrower may subsequently acquire any right or interest;

		
	 	  	 (c) Borrower shall promptly advise Silicon of any Copyrightable Intellectual Property which is hereafter acquired by Borrower;
and

		
	 	  	 (d)    Borrower shall not register any Copyrightable Intellectual Property with the United States Copyright Office without
first complying with the following: (i) providing Silicon with at least 15 days prior written notice thereof, (ii) providing Silicon with a copy of the application for any such registration and (iii) executing and filing such other instruments, and
taking such further actions as Silicon may reasonably request from time to time to perfect or continue the perfection of Silicon’s interest in the Collateral, including without limitation the filing with the United States Copyright Office,
simultaneously with the filing by Silicon of the application for any such registration, of a Intellectual Property Security Agreement in form acceptable to Silicon identifying the Copyrightable Intellectual Property being registered and confirming
the grant of a security interest therein in favor of Silicon.

  
 [Remainder of
this page left intentionally blank –signature page immediately follows] 

 Signature page to Schedule to Loan and Security Agreement 
  

							
	 Borrower:
	 	Silicon:
		
	     MICRO THERAPEUTICS, INC.
	 	SILICON VALLEY BANK
				
	     By
	 	 /s/ Thomas C. Wilder

	 	By	 	 /s/ Kurt Miklinski

	 	 	 President or Vice President
	 	Title	 	  

				
	     By
	 	 /s/ Bruce Feuchter

	 	 	 	 
	 	 	 Secretary or Ass’t Secretary
	 	 	 	 

  
 Form:-3(3/7/02) 
 Version:-5Amendment dated October 4, 2001

 Exhibit 10.39 
  
 

 

 9373 TOWNE CENTRE DRIVE, SUITE 100, SAN
DIEGO, CA 92121-3088        www.vical.com        PHONE: (858) 646-1100    FAX: (858) 646-1151 
  
 October 4, 2001 
  
 Dr. David Kaslow 
 741 Woodleave Road

 Bryn Mawr, PA 19010 
  
 Dear David: 
  
 The following letter outlines the changes and clarifications made to your original employment contract. A copy of this letter will be kept with your employment contract. 
  
 General Employment 
  
 Bonus. For the 2001 plan year, you will be paid a bonus equal to 20% to 30% of
$250,000. 
  
 Vacation You will be entitled to five weeks of vacation per
year. 
  
 Termination of Employment 
  
 “Cause” shall mean (A) a substantial failure to perform your duties
hereunder, other than a failure resulting from complete or partial incapacity due to physical or mental illness or impairment, (B) gross misconduct or fraud or (C) conviction of, or a plea of “guilty” or “no contest” to, a
felony. 
  
 Loans 
  
 Forgivable Loan: You will receive this loan disbursement during your first week of
employment with Vical. 
  
 If you are involuntarily terminated for any reason
other than cause, the loan will be forgiven as of the last date of employment. 
  
 Interest Only Promissory Note: You will receive this loan disbursement within seven days of your request. 
  
 In the event that you terminate your employment with Vical before the principal and any accrued and unpaid interest has been paid to Vical, the total unpaid balance of
this note shall be due and payable within 30 days after the last day of employment. No portion of this loan will be forgiven. The terms of this note will not change in the event of a change in control 
  
 Bridge loan. Vical will provide you with an interest free bridge loan in an amount
equal to the equity held in your home in Pennsylvania. The term of this loan shall not exceed six months. You will receive this loan within seven days of your request provided, however, you must present to Martha Demski, Vical’s CFO, proof of
the amount of equity held in your Pennsylvania residence. 
  
 In the event that
you terminate your employment with Vical before the principal has been paid to Vical, the total unpaid balance of this note shall be due and payable within 30 days after the last day of employment. No portion of this loan will be forgiven.

 Relocation Costs 
  

Movement of Household Goods: Vical will pay for the shipment of normal household goods. This includes packing, crating, van transportation, unpacking, insurance
coverage (replacement value) and storage charges for up to 90 days. Expenses are limited to those associated with one pick-up and delivery and one access to storage. 
  
 Temporary Housing: Vical will pay for temporary housing for you and your family. The company will pay for expenses incurred by you
and your daughter for a period not to exceed 30 days at the Embassy Suites. Vical will also pay the expenses associated with a rental property for you and your entire family for a period not to exceed 90 days. These expenses are limited to the
following: monthly rent in an amount not to exceed $5500, rental of appropriate furniture for this property and utility expenses (water, electricity and gas). 
  

Closing Costs: Vical will pay for the following costs associated with the sale of your home and the purchase of a new home in San Diego: The company will
reimburse you for the real estate commission up to 6% of the sale price and reasonable closing costs associated with the sale of your home in Pennsylvania. Vical will reimburse reasonable closing costs, including up to two points on a new loan,
incurred in connection with the purchase of a new home in the San Diego area. Closing statements for both the sale of your current home and purchase of a new home will serve as documentation for payment of these expenses. 
  
 Administration: Relocation Coordinates in San Diego will coordinate both your move to
San Diego and the third party purchase of your home in Pennsylvania. Your contact at Relocation Coordinates will be Elizabeth Stone. She will be in contact with Kathleen and with you within the next week. She can be reached at (858) 452-5665.

  
  
 David, I hope this letter provides you with the information you requested. 
  
 Sincerely, 
  
  
 /s/    VIJAY B. SAMANT 
 Vijay B. Samant 
 President & CEO

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