Document:

utmd8k20110323envindmn.htm

Exhibit 10.9

ENVIRONMENTAL INDEMNITY AGREEMENT

 

THIS ENVIRONMENTAL INDEMNITY AGREEMENT, is made as of the 17th day of March, 2011, by UTAH MEDICAL PRODUCTS, INC., a Utah corporation (“Indemnitor”), in favor of JPMORGAN CHASE BANK, N.A., a national banking association (“Lender”).

 

RECITALS

 

A.            Indemnitor owns the real property (the “Land”) located in Salt Lake County, Utah, as more particularly described in Exhibit A-1 and A-2 attached hereto and made a part hereof and leases the real property (the “Leased Land”) located in Salt Lake County, Utah, as more particularly described in Exhibit A-3 (said real property, together with all improvements, equipment and other property now or hereafter located in or on the Land, are collectively, the “Property”);

 

B.             Lender is prepared to make and Indemnitor will accept a term loan (the “Loan”) in the principal sum of Fourteen Million and No/100 Dollars ($14,000,000.00) pursuant to that certain Credit Agreement, dated as of even date herewith, by and among the Indemnitor and Lender (as the same may be amended, amended and restated, supplemented, replaced, substituted or otherwise modified from time to time, the “Loan Agreement”);

 

C.             The Loan is secured by, among other things, certain Deeds of Trust, Assignment of Rents, Security Agreements, and Fixture Filings and a Leasehold Deed of Trust, Assignment of Rents, Security Agreement, and Fixture Filing  from Indemnitor to the trustee named therein, for the benefit of Lender, which will encumber the Property (as the same may be amended, amended and restated, supplemented, replaced, substituted, or other wise modified from time to time, including all increases, and spreaders thereof, collectively, the “Deed of Trust”);

 

D.             As a condition to making the Loan, Lender requires Indemnitor to provide certain representations, warranties, covenants and indemnities concerning existing and future environmental matters; and

 

E.             To induce Lender to agree to make the Loan, Indemnitor has agreed to enter into this Agreement.

 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound, Indemnitor hereby covenant, warrant, represent and agree as follows:

 

1.             Definitions.  As used herein, the following terms shall have the meaning specified below:

 

1.1           The term “Agreement” shall mean this Environmental Indemnity Agreement and all modifications, supplements, and amendments thereto.

 

1.2           The term “Applicable Rate” shall mean at any given time, (a) the rate per annum equal to the prime rate of interest (the “Prime Rate”) announced from time to time by Lender or its parent (which is not necessarily the lowest rate charged to any customer) changing when and as said Prime Rate changes, or (b) if the Note is in default, the default rate of interest under Note.  If the Note has been paid in full, the Applicable Rate shall mean the Prime Rate.

 

1.3           The term “De Minimis Amounts” shall mean any Hazardous Substance either (a) being transported on or from the Property or being stored for use by Indemnitor or its tenant on the Property within a year from original arrival on the Property in connection with Indemnitor’s current operations or (b) being currently used by Indemnitor or its tenant on the Property, in either case in such quantities and in a manner that both (i) does not constitute a violation or threatened violation of any Environmental Law or require any reporting or disclosure under any Environmental Law and (ii) is consistent with customary business practice for such operations in the state where the Property is located.

 

1.4           The term “Environmental Claim” shall mean any and all actual or threatened liabilities, claims, actions, causes of action, judgments, orders, inquiries, investigations, studies or notices relating to any Hazardous Substance or any Environmental Law including without limitation those arising as a result of strict liability, whether under Environmental Law or otherwise, and those arising out of the negligence of the Indemnified Party.

 

  

  

  

1.5           The term “Environmental Law” shall mean any federal, state or local law, whether common law, statute, ordinance, rule, regulation, or judicial or administrative decision or policy or guideline, pertaining to Hazardous Substances, health, industrial hygiene, environmental conditions, or the regulation or protection of the environment, and all amendments thereto as of this date and to be added in the future and any successor statute or rule or regulation promulgated thereto.

 

1.6           The term “Hazardous Substance” shall mean all of the following:

 

(a)           Any substance, material, or waste that is included within the definitions of “hazardous substances,” “hazardous materials,” “hazardous waste,” “toxic substances,” “toxic materials,” “toxic waste,” or words of similar import in any Environmental Law;

 

(b)           Those substances listed as hazardous substances by the United States Department of Transportation (or any successor agency) (49 C.F.R. 172.101 and amendments thereto) or by the Environmental Protection Agency (or any successor agency) (40 C.F.R. Part 302 and amendments thereto); and

 

(c)           Any substance, material, or waste that is petroleum, petroleum-related, or a petroleum by-product, asbestos or asbestos-containing material, polychlorinated biphenyls, flammable, explosive, radioactive, freon gas, radon, or a pesticide, herbicide, or any other agricultural chemical.

 

1.7           The term “Indemnified Parties” shall mean and include Lender, any parent, subsidiary, or affiliated company of Lender, any assignee or successor in interest of all or part of Lender’s interest in the Loan or the Loan Documents, any owner of a participation interest in the Loan or the Loan Documents, any purchaser who acquires all or part of the Property from Lender, its parent, or any of their respective subsidiaries or affiliates, any recipient of a deed or assignment in lieu of foreclosure of all or part of the Property, any court appointed receiver, and the officers, directors, employees and agents of each of them.

1.8           The term “Loan Documents” shall have the meaning set forth in the Credit Agreement.

 

1.9           The term “Property” shall mean all property that is or was at any time affected by the Deed of Trust, which may later include any and all property previously released from the Deed of Trust.

 

1.10         The term “Release” shall mean any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, migrating, disposing, or dumping of any substance into the environment.

 

2.             Representations and Warranties.

 

(a)           Except as disclosed in writing by Indemnitor to Lender prior to the date hereof, Indemnitor represents and warrants to the Indemnified Parties that neither Indemnitor, the Property nor, to Indemnitor’s knowledge, any tenant is in violation of any Environmental Law applicable to the Property, and neither Indemnitor, the Property nor, to Indemnitor’s knowledge, any tenant is subject to any existing, pending or threatened investigation pertaining to the Property by any federal, state or local governmental authority or is subject to any remedial obligation or lien under or in connection with any Environmental Law.

 

(b)           Indemnitor represents and warrants to the Indemnified Parties that Indemnitor, including, without limitation, any member, manager, officer, director, employee, agent, affiliate, tenant, partner or joint venturer of Indemnitor, except as disclosed on the environmental report provided to Lender, has no actual knowledge or notice of the actual, alleged or threatened presence or Release of Hazardous Substances in, on, around or potentially affecting any part of the Property or the soil, groundwater or soil vapor on or under the Property, or the migration of any Hazardous Substance, from or to any other property adjacent to or in the vicinity of the Property, provided that the foregoing representation and warranty does not apply to De Minimis Amounts.

 

(c)           Indemnitor has undertaken an appropriate inquiry into the previous ownership and uses of the Property consistent with good commercial practice.  If any environmental questionnaire is executed by Indemnitor and delivered to Lender, Indemnitor represents and warrants to the Indemnified Parties that, to Indemnitor’s knowledge, the information disclosed in any such environmental questionnaire is true, complete and correct.

 

  

  

  

(d)           Indemnitor’s intended future use of Property will not result in the Release of any Hazardous Substance other than De Minimis Amounts, in, on, around or potentially affecting any part of the Property or in the soil, groundwater or soil vapor on or under the Property, or the migration of any Hazardous Substance from or to any other property adjacent to or in the vicinity of the Property.

 

3.             Covenants of Indemnitor.

 

(a)           Indemnitor shall neither use nor permit any third party to use, generate, manufacture, produce, store, or Release, on, under or about the Property, or transfer to or from the Property, any Hazardous Substance except De Minimis Amounts in compliance with all applicable Environmental Laws, provided that if any third party, by act or omission or by intent or accident, allows any foregoing action to occur, Indemnitor shall promptly remedy such condition, or cause such condition to be remedied, at its sole expense and responsibility, in accordance with Section 5 below.  Furthermore, Indemnitor shall not permit any liens under any Environmental Law to be placed on any portion of the Property.

 

(b)           Indemnitor has complied, and shall comply and require all occupants of the Property, regardless of length of occupancy, to comply, at Indemnitor’s sole expense and responsibility, with all Environmental Laws governing or applicable to Hazardous Substances, including those requiring disclosures to prospective and actual buyers of all or any portion of the Property.

 

(c)           Indemnitor shall promptly notify Lender in writing if Indemnitor, including, without limitation, any member, manager, officer, employee, agent, affiliate, director, partner, or joint venturer, of Indemnitor, has any actual knowledge or notice of the following: (i) that any statement in Section 2 of this Agreement is no longer accurate, (ii) any lien, action or notice affecting the Property or Indemnitor resulting from any violation or alleged violation of the Environmental Law, (iii) the institution of any investigation, inquiry or proceeding concerning Indemnitor or the Property pursuant to any Environmental Law or otherwise relating to Hazardous Substances (except for De Minimis Amounts), or (iv) the discovery of any occurrence, condition or state of facts which would render any representation or warranty contained in this Agreement incorrect in any respect if made at the time of such discovery.

 

(d)           Indemnitor’s obligations under this Agreement shall not be diminished or affected in any respect as a result of any notice, disclosure or knowledge, if any, to or by any of the Indemnified Parties of the Release, presence, existence or threatened Release of Hazardous Substances in, on, around, or potentially affecting the Property or the soil, groundwater or soil vapor on or under the Property, or of any matter covered by Indemnitor’s obligations hereunder.  No Indemnified Party shall be deemed to have permitted, caused, contributed to or acquiesced in any such Release, presence, existence or threatened Release of Hazardous Substances or any other matter covered by Indemnitor’s obligations hereunder solely because Lender or any other Indemnified Party had notice, disclosure or knowledge thereof, whether at the time this Agreement is delivered or at any other time.

 

(e)           Indemnitor shall conduct and complete, to Lender’s satisfaction, all remedial, removal, and other actions necessary to clean up and remove Hazardous Substances (other than De Minimis Amounts) in, on, or materially affecting the Property: (i) in accordance with all applicable Environmental Laws; and (ii) in accordance with all applicable orders and directives of all governmental authorities.  Indemnitor shall provide to Lender copies of all results and reports relating to such remedial, removal, and other actions.

 

4.             Lender Rights.

 

(a)           Lender shall have the right, but not the obligation, without in any way limiting Lender’s other rights and remedies under the Loan Documents, to enter onto the Property, take and remove soil or groundwater samples, conduct tests and/or site assessments on any part of the Property or to take such other actions as it deems necessary or advisable to clean up, remove, resolve, or minimize the impact of, or otherwise deal with, any Hazardous Substances on or affecting the Property following receipt of any notice from any person or entity asserting the existence or possible existence of any Hazardous Substances pertaining to the Property or any part thereof that, if true, could result in an Environmental Claim, order, notice, suit, imposition of a lien on the Property, or other action and/or that, in Lender’s sole opinion, could jeopardize Lender’s security under the Loan Documents.  All reasonable costs and expenses paid or incurred by Lender in the exercise of any such rights shall be payable by Indemnitor upon demand.

 

  

  

  

(b)           Lender shall have the right at any time to appear in and to participate in, as a party if it elects, and be represented by counsel of its own choice in, any action or proceeding in connection with any Environmental Law that affects the Property.  Upon demand by any Indemnified Party, Indemnitor shall defend any investigation, action or proceeding involving any matter covered by Indemnitor’s obligations hereunder which is brought or commenced against any Indemnified Party, whether alone or together with Indemnitor or any other person, all at Indemnitor’s own cost and by counsel to be approved by the Indemnified Party in the exercise of its reasonable judgment.  In the alternative, any Indemnified Party may elect to conduct its own defense at the expense of Indemnitor.  Indemnitor shall not, without the prior written consent of Lender: (i) settle or compromise any action, suit, proceeding or claim or consent to the entry of any judgment that does not include as an unconditional term thereof the delivery by the claimant or plaintiff to Lender of a full and complete written release of the Indemnified Parties (in form, scope and substance satisfactory to Lender in its sole discretion) from all liability in respect of such action, suit, proceeding or claim; or (ii) settle or compromise any action, suit, proceeding or claim in any manner that may adversely affect the Indemnified Parties or obligate the Indemnified Parties to pay any sum or perform any obligation as determined by Lender in its sole discretion.

 

5.             Indemnification.  Indemnitor shall jointly and severally indemnify and hold the Indemnified Parties harmless from, for and against any and all Environmental Claims, liabilities, damages (including foreseeable and unforeseeable consequential damages), losses, fines, penalties, judgments, awards, settlements, and costs and expenses (including, without limitation, reasonable attorneys’ fees, experts’, engineers’ and consultants’ fees, and costs and expenses of investigation, testing, remediation and dispute resolution) (collectively referred to as “Environmental Costs”) that directly or indirectly arise out of or relate in any way to:

 

(a)           Any investigation, cleanup, remediation, removal, or restoration work of site conditions of the Property relating to Hazardous Substances (whether on the Property or any other property);

 

(b)           Any resulting damages, harm, or injuries to the person or property of any third parties or to any natural resources involving Hazardous Substances relating to the Property;

 

(c)           Any actual or alleged past or present disposal, generation, manufacture, presence, processing, production, Release, storage, transportation, treatment, or use of any Hazardous Substance on, under, or about the Property;

 

(d)           Any actual or alleged presence of any Hazardous Substance on the Property;

 

(e)           Any actual or alleged past or present violation of any Environmental Law relating to the Property;

 

(f)           Any actual or alleged past or present migration of any Hazardous Substance from the Property to any other property, whether adjoining, in the vicinity, or otherwise, or migration of any Hazardous Substance onto the Property from any other property, whether adjoining, in the vicinity, or otherwise;

 

(g)           Any lien on any part of the Property under any Environmental Law;

 

(h)           Any Environmental Claim by any federal, state, or local governmental agency and any claim that any Indemnified Party is liable for any such asserted Environmental Claim allegedly because it is an “owner” or “operator” of the Property under any Environmental Law;

 

(i)            Any Environmental Claim asserted against any Indemnified Party by any person other than a governmental agency, including any person who may purchase or lease all or any portion of the Property from Indemnitor, from any Indemnified Party, or from any other purchaser or lessee; any person who may at any time have any interest in all or any portion of the Property; any person who may at any time be responsible for any cleanup costs or other Environmental Claims relating to the Property; and any person claiming to have been injured in any way as a result of exposure to any Hazardous Substance relating to the Property;

 

(j)            Any Environmental Claim which any Indemnified Party reasonably believes at any time may be incurred to comply with any law, judgment, order, regulation, or regulatory directive relating to Hazardous Substances and the Property, or which any Indemnified Party reasonably believes at any time may be incurred to protect the public health or safety;

 

  

  

  

(k)           Any Environmental Claim resulting from currently existing conditions in, on, around, or materially affecting the Property, whether known or unknown by Indemnitor or the Indemnified Parties at the time this Agreement is executed, and any such Environmental Claim resulting from the activities of Indemnitor, Indemnitor’s tenants, or any other person, in, on, around, or materially affecting the Property; or

 

(l)            Breach of any representation or warranty by or covenant of Indemnitor in this Agreement.

 

Notwithstanding anything contained herein to the contrary, the foregoing indemnity shall not apply to (i) matters resulting solely from the gross negligence or willful misconduct of any Indemnified Party, or (ii) matters resulting solely from the actions of Indemnified Parties taken after such parties have taken title to, or exclusive possession of the Property, provided that, in both cases, such matters shall not arise from or be accumulated with any condition of the Property, which condition was not caused by an Indemnified Party.  The foregoing indemnity is expressly intended to include, and does include, any Environmental Costs arising as a result of any strict liability imposed or threatened to be imposed on an Indemnified Party in connection with any of the indemnified matters described in this Section 5 or arising as a result of the negligence of an Indemnified Party in connection with such matters.

 

6.             Reinstatement of Obligations.  If at any time all or any part of any payment made by Indemnitor or received by an Indemnified Party from Indemnitor under or with respect to this Agreement is or must be rescinded or returned for any reason whatsoever (including, but not limited to, the insolvency, bankruptcy or reorganization of Indemnitor), then the obligations of Indemnitor hereunder shall, to the extent of the payment rescinded or returned, be deemed to have continued in existence, notwithstanding such previous payment made by Indemnitor, or receipt of payment by an Indemnified Party, and the obligations of Indemnitor hereunder shall continue to be effective or be reinstated, as the case may be, as to such payment, all as though such previous payment by Indemnitor had never been made.

 

7.             Reservation of Rights.  Nothing in this Agreement shall be construed to limit any claim or right which any Indemnified Party may otherwise have at any time against Indemnitor or any other person arising from any source other than this Agreement, including any claim for fraud, misrepresentation, waste, or breach of contract other than this Agreement, and any rights of contribution or indemnity under federal, state or local environmental law or other applicable law, regulation or ordinance.

 

8.             No Waiver; Rights Cumulative.  If any Indemnified Party delays or fails to exercise any right or remedy against Indemnitor, that alone shall not be construed as a waiver of that right or remedy.  All remedies of any Indemnified Party against Indemnitor are cumulative.

 

9.             Successors and Assigns.  This Agreement shall be binding upon Indemnitor and its successors and shall inure to the benefit of the Indemnified Parties, and the successors and assigns of the Indemnified Parties.  Indemnitor shall not have any right to assign its obligations under this Agreement.  This Agreement is assignable by Lender, and any full or partial assignment hereof by Lender shall operate to vest in the assignee all rights and powers herein conferred upon and granted to Lender and so assigned by Lender.  Indemnitor expressly waives notice of transfer or assignment of this Agreement and acknowledges that the failure by Lender to give any such notice shall not affect the liabilities of Indemnitor hereunder.

 

10.           Termination.  The indemnity obligations of Indemnitor pursuant to Section 5 of this Agreement and all other obligations of Indemnitor hereunder shall survive until terminated in accordance with this Section 10, which termination shall occur upon the full satisfaction of either of the following conditions:

 

(a)           The Loan shall have been repaid in full and in accordance with its terms, any lending commitment shall have expired or been terminated, and all obligations of the Indemnitor under the Loan Documents have been performed in full in accordance with their terms, in both cases rather than through the occurrence of one or more of (i) the acceptance by Lender of the surrender of the Note and reconveyance of the Deed of Trust, (ii) the foreclosure of the Deed of Trust, (iii) the extinguishment of the Deed of Trust by any means, including deed or assignment in lieu of foreclosure, (iv) the acquisition of the Property or any portion of it by any of the Indemnified Parties, and (v) the transfer of all of Lender’s rights in the Loan Documents, or through the exercise of any other rights and remedies by Lender (including, without limitation, foreclosure, trustee’s sale or actions on promissory notes, guaranties or other obligations); or

 

(b)           One or more of the events described in clauses (i) - (v) of subparagraph (a) above has occurred, Lender has not received notice of any Environmental Claim relating to the Property that has not been fully satisfied or settled to Lender’s satisfaction, and two (2) years have elapsed from the date which is the latest of (i) the date of the occurrence of one or more of the events described in clauses (i) - (v) of subparagraph (a) above, (ii) the date Indemnitor has been fully released of all of its obligations under the Loan Documents, and (iii) the date any Environmental Claim relating to the Property is fully satisfied or settled to Lender’s satisfaction.

 

  

  

  

 

11.           Full Recourse.  The indemnity contained herein shall not be subject to any non-recourse or other limitation of liability provisions contained in any of the Loan Documents executed and delivered in connection with the Loan and the liability of Indemnitor hereunder shall not be limited by any such non-recourse or similar limitation of liability provisions.

 

12.           Misrepresentation.  If any material warranty, representation or statement contained herein shall be or shall prove to have been false when made or if Indemnitor shall fail or neglect to perform or observe any of the terms, provisions or covenants contained herein, the same shall constitute an Event of Default (as defined in the Loan Documents) under the Loan Documents.

 

13.           Notices.  Any notice required or permitted in connection herewith shall be given in the manner provided in any Loan Document.

 

14.           Reliance; Separate Action.  Indemnitor acknowledges that Lender has and will rely upon the representations, warranties and agreements herein set forth in closing and funding (or modifying as the case may be) the Loan and that the execution and delivery of this Agreement is an essential condition but for which Lender would not close or fund (or modify) the Loan. Indemnitor agrees that this Agreement and the indemnity contained herein is separate, independent and in addition to the undertakings of Indemnitor under the Loan Documents. Indemnitor agrees that a separate action may be brought to enforce the provisions of this Agreement which shall in no way be deemed to be an action on the Note, whether or not the Indemnified Parties would be entitled to a deficiency judgment following a judicial foreclosure or sale under the Deed of Trust.

 

15.           Waiver.  Indemnitor waives any right or claim of right to cause a marshaling of the assets of Indemnitor or to cause Lender to proceed against any of the security for the Loan before proceeding under this Agreement against Indemnitor, Indemnitor agrees that any payments required to be made hereunder shall become due on demand. Indemnitor expressly waives and relinquishes all rights,  remedies and defenses accorded by applicable law to sureties, indemnitors or guarantors, except any rights of subrogation that Indemnitor may have, provided that the indemnity provided for hereunder shall neither be contingent upon the existence of any such rights of subrogation nor subject to any claims or defenses whatsoever that may be asserted in connection with the enforcement or attempted enforcement of such subrogation rights, including, without limitation, any claim that such subrogation rights were abrogated by any acts or omissions of Lender.

 

16.           Successive Actions.  Notwithstanding any law to the contrary, the parties expressly agree that a separate right of action hereunder shall arise each time Lender acquires knowledge of any matter indemnified by Indemnitor under this Agreement.  Separate and successive actions may be brought hereunder to enforce any of the provisions hereof at any time and from time to time.  No action hereunder shall preclude any subsequent action, and Indemnitor hereby waives and covenants not to assert any defense in the nature of splitting of causes of action or merger of judgments.

 

17.           Construction.  In this Agreement, the word “person” includes any individual, company, trust or other legal entity of any kind.  If this Agreement is executed by more than one person, the words “Indemnitor,” “Guarantor,” and “Indemnitor” include all such persons.  The word “include(s)” means “include(s), without limitation,” and the word “including” means “including, but not limited to.”  When the context and construction so require, all words used in the singular shall be deemed to have been used in the plural and vice versa.

 

18.           Severability.  Every provision of this Agreement is intended to be severable.  If any term, provision, section or subsection of this Agreement is declared to be illegal or invalid, for any reason whatsoever, by a court of competent jurisdiction, such illegality or invalidity shall not affect the other terms, provisions, sections or subsections of this Agreement, which shall remain binding and enforceable.  To the extent there is any conflict between this Agreement and the terms and provisions of any of the other Loan Documents, the terms and provisions of this Agreement shall control.

 

19.           Cost and Expenses.  On demand, Indemnitor agrees to pay all of the Indemnified Parties’ costs and expenses, including attorneys’ fees, which may be incurred in any effort to enforce any term of this Agreement, including all such costs and expenses which may be incurred by any Indemnified Party in any legal action, reference, mediation or arbitration proceeding.  From the time(s) incurred until paid in full to the Indemnified Party, those sums shall bear interest at the Applicable Rate.

 

  

  

  

 

20.           Time; No Course of Dealing.  Time is of the essence of this Agreement, and of each and every provision hereof.  The waiver by Indemnified Party of any breach or breaches hereof shall not be deemed, nor shall the same constitute, a waiver of any subsequent breach of breaches.

 

21.           CHOICE OF LAW.  THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS WERE NEGOTIATED IN THE STATE OF UTAH AND DELIVERED BY INDEMNITOR OR INDEMNITOR, AS APPLICABLE, AND ACCEPTED BY LENDER IN THE STATE OF UTAH, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL RELATIONSHIP TO THE PARTIES AND THE UNDERLYING TRANSACTIONS EMBODIED HEREBY.  IN ALL RESPECTS, INCLUDING, WITHOUT LIMITATION, PERFORMANCE OF THIS AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF UTAH APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN SUCH STATE AND ANY APPLICABLE LAWS OF THE UNITED STATES OF AMERICA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES.  LENDER WOULD NOT HAVE MADE THE LOAN OR ENTERED INTO OR ACCEPTED THIS AGREEMENT OR ANY OTHER LOAN DOCUMENTS BUT FOR THE FOREGOING STIPULATION AND AGREEMENT AS TO THE CHOICE OF UTAH LAW TO GOVERN THIS AGREEMENT AND ALL OTHER LOAN DOCUMENTS.  IF, NOTWITHSTANDING THIS SECTION 21, AT ANY TIME THE LAW OF ANY JURISDICTION OTHER THAN THE STATE OF UTAH IS DETERMINED TO BE APPLICABLE TO THIS AGREEMENT, INCLLUDING, WITHOUT LIMITATION, THE LAWS OF THE COOK ISLANDS, THEN TO THE MAXIMUM EXTENT PERMITTED BY LAW, INDEMNITOR EXPRESSLY WAIVES ANY AND ALL BENEFITS OF THE LAW AND RULES OF SUCH JURISDICTION THAT CONFLICT WITH ANY PROVISION OF THIS AGREEMENT AND TO THE EXTENT THAT THE SAME ARE APPLICABLE.

 

22.           Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one Agreement.

 

23.           Captions for Convenience.  The captions and headings of the paragraphs of this Agreement are for convenience of reference only and shall not be construed in interpreting the provisions hereof.

 

24.           Joint and Several Liability.  Each party executing this Agreement as an Indemnitor shall be jointly and severally liable for all obligations of Indemnitor hereunder.  Each reference to Indemnitor shall be a reference to each person executing this Agreement individually and to all such persons collectively.  Indemnitor’s liability is independent of the obligations of any other Indemnitor.  Lender may bring an action against any Indemnitor to enforce this Agreement, whether an action is brought against the other Indemnitors.

 

25.           WAIVER OF JURY TRIAL.  EACH OF INDEMNITOR AND LENDER (BY ITS ACCEPTANCE HEREOF) HEREBY VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED UPON CONTRACT, TORT OR ANY OTHER THEORY).  EACH OF INDEMNITOR AND LENDER (BY ITS ACCEPTANCE HEREOF) (A) CERTIFIES THAT NO REPRESENTATIVE, LENDER OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

26.           WAIVER OF SPECIAL DAMAGES. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, INDEMNITOR SHALL NOT ASSERT, AND HEREBY WAIVES, ANY CLAIM AGAINST LENDER, ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS AGREEMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, THE TRANSACTIONS, THE LOAN OR THE USE OF THE PROCEEDS THEREOF.

 

  

  

  

27.           MISCELLANEOUS WAIVERS.  WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDINGS RELATING TO THIS AGREEMENT (EACH, A “PROCEEDING”), INDEMNITOR IRREVOCABLY (A) SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS HAVING JURISDICTION IN THE CITY OF SALT LAKE, COUNTY OF SALT LAKE AND STATE OF UTAH, AND (B) WAIVES ANY OBJECTION WHICH IT MAY HAVE AT ANY TIME TO THE LAYING OF VENUE OF ANY PROCEEDING BROUGHT IN ANY SUCH COURT, WAIVES ANY CLAIM THAT ANY PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM AND FURTHER WAIVES THE RIGHT TO OBJECT, WITH RESPECT TO SUCH PROCEEDING, THAT SUCH COURT DOES NOT HAVE JURISDICTION OVER SUCH PARTY.  NOTHING IN THIS AGREEMENT SHALL PRECLUDE LENDER FROM BRINGING A PROCEEDING IN ANY OTHER JURISDICTION NOR WILL THE BRINGING OF A PROCEEDING IN ANY ONE OR MORE JURISDICTIONS PRECLUDE THE BRINGING OF A PROCEEDING IN ANY OTHER JURISDICTION.  INDEMNITOR FURTHER AGREES AND CONSENTS THAT, IN ADDITION TO ANY METHODS OF SERVICE OF PROCESS PROVIDED FOR UNDER APPLICABLE LAW, ALL SERVICE OF PROCESS IN ANY PROCEEDING IN ANY UTAH STATE OR UNITED STATES COURT SITTING IN THE CITY OF SALT LAKE AND COUNTY OF SALT LAKE MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO INDEMNITOR AT THE ADDRESS INDICATED IN THE LOAN DOCUMENTS, AND SERVICE SO MADE SHALL BE COMPLETE UPON RECEIPT; EXCEPT THAT IF INDEMNITOR SHALL REFUSE TO ACCEPT DELIVERY, SERVICE SHALL BE DEEMED COMPLETE FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO MAILED.

 

 

IN WITNESS WHEREOF, Indemnitor has executed this Agreement as of the date first set forth herein.

 

	  	
UTAH MEDICAL PRODUCTS, INC.

	  	
a Utah corporation

	  	  
	  	  
	  	
By:       /s/ Paul O. Richins                 

	  	
Name:      Paul O. Richins                   

	  	
Title:        V.P.                                       

  

  

  

EXHIBIT A-1

 

Legal Description of Land

 

That certain real property owned by Trustor and situated in Salt Lake County, State of Utah and described as follows:

 

 

 

  

  

  

EXHIBIT A-2

 

Legal Description of Land

 

That certain real property owned by Trustor and situated in Salt Lake County, State of Utah and described as follows:

 

 

  

  

  

EXHIBIT A-3

 

Legal Description of Leased Land

 

That certain real property owned by Trustor and situated in Salt Lake County, State of Utah and described as follows:utmd8k20110323chaseireland.htm

Exhibit 10.10

 

Dated this 17 March 2011

B Y :

UTAH MEDICAL PRODUCTS, INC.

IN FAVOUR OF:

JPMORGAN CHASE BANK, N.A.

SHARE CHARGE

Conyers Dill & Pearman Limited

Barristers & Attorneys

Hamilton, Bermuda

  

  

  

TABLE OF CONTENTS

 

 

	
1.

	
INTERPRETATION

	
1

	
2.

	
CHARGOR'S REPRESENTATIONS AND WARRANTIES

	
3

	
3.

	
CHARGOR'S COVENANTS

	
4

	
4.

	
SECURITY

	
6

	
5.

	
DEALINGS WITH CHARGED PROPERTY

	
7

	
6.

	
PRESERVATION OF SECURITY

	
8

	
7.

	
ENFORCEMENT OF SECURITY

	
10

	
8.

	
FURTHER ASSURANCES

	
13

	
9.

	
INDEMNITIES

	
14

	
10.

	
POWER OF ATTORNEY

	
15

	
11.

	
EXPENSES

	
16

	
12.

	
NOTICES

	
16

	
13.

	
ASSIGNMENTS

	
17

	
14.

	
MISCELLANEOUS

	
18

	
15.

	
LAW AND JURISDICTION

	
18

  

  

  

THIS SHARE CHARGE is made on the 17th day of March 2011

BY:

UTAH MEDICAL PRODUCTS, INC., a company incorporated under the laws of the State of Utah and having its principal office at 7043 South 300 West, Midvale, Utah 84047 (the “Chargor”); and

IN FAVOUR OF:

JPMORGAN CHASE BANK, N.A., a national banking association incorporated under the laws of the United States of America and having its principal office at 201 South Main Street, Suite 300, Salt Lake City, Utah 84111 (the “Chargee”).

WHEREAS:

	
(A)

	
By a credit agreement dated 17 March 2011 (the “Loan Agreement”) made between the Chargor as borrower and the Chargee as lender, the Chargee agreed to provide certain loan facilities to the Chargor on the terms and conditions therein set out.

	
(B)

	
As security for the obligations of the Chargor under the Loan Agreement, the Chargor has agreed to charge, inter alia, 65% of all the issued voting share capital of Utah Medical Products Ltd., an exempted company incorporated under the laws of Bermuda (the “Company”); 65% of any additional issued voting share capital of the Company in the future legally or beneficially owned by the Chargor; and 100% of the issued non- voting share capital of the Company in the future legally or beneficially owned by the Chargor.

	
(C)

	
The Company has an authorised share capital of US$1,000,000 consisting of 1,000,000 common shares of par value US$1.00 each, 330,000 of which have been issued as fully paid to, is beneficially owned by, and is registered in the name of the Chargor.

	
(D)

	
It is a condition precedent to the Chargee advancing the said loan to the Chargor that the Chargor shall execute this Charge in favour of the Chargee and the same is executed by the Chargor in consideration of the Chargee agreeing to advance the said loan to the Chargor and for other good and valuable consideration (the sufficiency of which the Chargor hereby acknowledges).

NOW THIS CHARGE WITNESSES as follows:

	
1.

	
INTERPRETATION

 

	
1.1

	
In this Charge, unless the context otherwise requires, the following words and expressions shall have the following meanings:

 

  

1

  

 

	
“Business Day”

	
has the same meaning as in the Loan Agreement;

	
“Charge”

	
means this share charge;

	
“Charged Property”

	
means all of the issued shares of the Company as described in Recital (B) and all other shares in the Company from time to time legally or beneficially owned by the Chargor during the Security Period to the extent set forth in Recital (B) (together the “Charged Shares”) and all dividends or other distributions, interest and other moneys paid or payable after the date hereof in connection therewith and all interests in and all rights accruing at any time to or in respect of all or any of the Charged Shares and all and any other property that may at any time be received or receivable by or otherwise distributed to the Chargor in respect of or in substitution for, or in addition to, or in exchange for, or on account of, any of the foregoing, including, without limitation, any shares or other securities resulting from the division, consolidation, change, conversion or reclassification of any of the Charged Shares, or the reorganization, merger or consolidation of the Company with any other body corporate, or the occurrence of any event which results in the substitution or exchange of the Charged Shares;

	
“Charged Shares”

	
has the meaning assigned thereto in the definition of Charged Property;

	
“Event of Default”

	
has the same meaning as in the Loan Agreement;

	
“Loan”

	
means the loan made available pursuant to the Loan Agreement described in Recital (A);

	
“Parties”

	
means the parties to this Charge collectively;  “Party” means any one of them;

	
“Secured Obligations”

	
means all of the present and future payments and other obligations of the Chargor to the Chargee and the Borrower under this Charge, the Loan Agreement and the Security Documents, and includes all obligations of the Chargor described as Secured Obligations in the Loan Agreement;

	
“Security Documents”

	
means the Collateral Documents described in the Loan Agreement;

	
“Security Interest”

	
means any charge, mortgage, pledge, lien, security interest or other encumbrance;

	
“Security Period”

	
means the period commencing on the date of execution of this Charge and terminating upon discharge of the security created by this Charge by payment in full of the Secured Obligations.

 

  

2

  

	
1.2

	
In this Charge unless the context otherwise requires:

 

	
  

	
(a)

	
references to statutory provisions shall be construed as references to those provisions as amended or re-enacted or as their application is modified by other provisions from time to time and shall include references to any provisions of which they are re-enactments (whether with or without modification);

 

	
  

	
(b)

	
references to Clauses and schedules are references to Clauses hereof and schedules hereto; references to sub-Clauses or paragraphs are, unless otherwise stated, references to sub-Clauses of the Clauses hereof or paragraphs of the schedule in which the reference appears;

 

	
  

	
(c)

	
references to the singular shall include the plural and vice versa and references to the masculine shall include the feminine and/or neuter and vice versa;

 

	
  

	
(d)

	
references to persons shall include companies, partnerships, associations and bodies of persons, whether incorporated or unincorporated;

 

	
  

	
(e)

	
references to assets include property, rights and assets of every description; and

 

	
  

	
(f)

	
references to any document are to be construed as references to such document as amended or supplemented from time to time.

 

	
2.

	
CHARGOR’S REPRESENTATIONS AND WARRANTIES

 

The Chargor hereby represents and warrants to the Chargee that:

 

	
2.1

	
The authorised share capital of the Company consists of the shares described in Recital (C) hereof and such shares are beneficially owned and registered as described in the said recital;

 

	
2.2

	
The Chargor is a company duly organised, validly existing and in good standing under the laws of the State of Utah;

 

	
2.3

	
The Company is under no obligation, nor is it liable to become under any obligation, to issue any further shares nor, without limiting the generality of the foregoing, has the Company created any option to acquire shares in the Company or any securities exchangeable for or convertible into shares of the Company;

 

  

3

  

 

	
2.4

	
Entry into this Charge by the Chargor and enforcement hereof by the Chargee will not contravene the terms of any agreement to which the Chargor is bound or to which the Charged Property are subject or the memorandum of association or bye-laws of the Company;

 

	
2.5

	
The Chargor is the legal and beneficial owner of all of the Charged Property free from any Security Interest (other than those created by this Charge) and any options or rights of pre-emption;

 

	
2.6

	
The Chargor has full power and authority (i) to be the legal and beneficial owner of the Charged Property, (ii) to execute and deliver this Charge and (iii) to comply with the provisions of, and perform all its obligations under, this Charge;

 

	
2.7

	
This Charge constitutes the Chargor’s legal, valid and binding obligations enforceable against the Chargor in accordance with its terms except as such enforcement may be limited by any relevant bankruptcy, insolvency, administration or similar laws affecting creditors’ rights generally;

 

	
2.8

	
The entry into and performance by the Chargor of this Charge does not violate (i) any law or regulation of any governmental or official authority, or (ii) any agreement, contract or other undertaking to which the Chargor is a party or which is binding upon the Chargor or any of its assets;

 

	
2.9

	
All consents, licences, approvals and authorisations required in connection with the entry into, performance, validity and enforceability of this Charge have been obtained and are in full force and effect; and

 

	
2.10

	
The Chargor has taken all corporate and other action required to approve its execution, delivery and performance of this Charge.

 

	
3.

	
CHARGOR’S COVENANTS

 

The Chargor hereby covenants with the Chargee:

 

	
3.1

	
To pay all amounts, interests, expenses, claims, liabilities, losses, costs, duties, fees, charges or other moneys as are stated in the Loan Agreement and this Charge to be payable by the Chargor or to be recoverable from the Chargor by the Chargee (or in respect of which the Chargor agrees in the Loan Agreement, the other Security Documents and this Charge to indemnify the Chargee) at the times and in the manner specified in the Loan Agreement, the other Security Documents and this Charge;

 

	
3.2

	
To pay interest on any such amounts, interests, expenses, claims, liabilities, losses, costs, duties, fees, charges or other moneys referred to in Sub-Clause 3.1 from the date on which the relevant amount, interest, expense, liability, loss, cost, duty, fee, charge or other money is paid or discharged by the Chargee until the date of reimbursement thereof to the Chargee (both before and after any relevant judgment) at the rate set out in Section 2.02 of the Loan Agreement such interest to be compounded in accordance with Section 2.02 of the Loan Agreement and payable on demand;

  

4

  

 

	
3.3

	
That the Chargor will on demand of the Chargee and at the expense of the Chargor, execute and deliver to the Chargee or to such person or persons as the Chargee may nominate such additional charge or charges of the Charged Property (or any part thereof) for the purpose of further securing the payment and discharge of all Secured Obligations, each such additional charge to be in such form as the Chargee may reasonably require;

 

	
3.4

	
That the Chargor shall, on request of the Chargee, provide to the Chargee immediately on receipt by the Chargor a copy of all notices, written consents, reports, accounts, circulars and other communications issued by the Company or by any third party in respect of the Charged Shares;

 

	
3.5

	
That the Chargor will not without the prior written consent of the Chargee:

 

	
  

	
(a)

	
permit any person other than the Chargor, the Chargee or any transferee nominated by the Chargee on enforcement of this Charge to be the registered holder of any of the Charged Shares;

 

	
  

	
(b)

	
permit any variation of the rights attaching to the Charged Shares;

 

	
  

	
(c)

	
take or permit any action which might result in an increase or reduction in the authorised share capital of the Company or the number of shares that the Company is authorised to issue or the issued shares or share capital of the Company;

 

	
  

	
(d)

	
effect or permit the Company to be continued to another jurisdiction outside of Bermuda;

 

	
  

	
(e)

	
effect or permit the appointment of any new or further directors or officers of the Company;

 

	
  

	
(f)

	
effect or permit any scheme of arrangement, merger, amalgamation or other reorganisation applicable to the Company; or

 

	
  

	
(g)

	
save in accordance with Sub-Clause 8.2, permit any amendment to the memorandum of association or bye-laws of the Company.

 

  

5

  

	
4.

	
SECURITY

 

	
4.1

	
In consideration of the Chargee making the Loan available to the Borrower and as a continuing security for the Secured Obligations, the Chargor as legal and beneficial owner hereby assigns and agrees to assign to the Chargee all benefits present and future, actual and contingent accruing in respect of the Charged Property and all the Chargor’s right, title and interest to and in the Charged Property including (without limitation) all voting and other consensual powers pertaining to the Charged Shares and hereby charges and agrees to charge in favour of the Chargee all of its interest in the Charged Property by way of a first fixed charge.

 

	
4.2

	
The Chargor hereby agrees to deliver, or cause to be delivered, to the Chargee:

 

	
  

	
(a)

	
duly executed undated share transfers in respect of the Charged Shares in favour of the Chargee or its nominees in the form set out in Schedule I;

 

	
  

	
(b)

	
all share certificates representing the Charged Shares;

 

	
  

	
(c)

	
an executed undated irrevocable proxy made in respect of the Charged Shares in favour of the Chargee in respect of all general meetings of the Company  in the form set out in Schedule II;

 

	
  

	
(d)

	
executed but undated letters of resignation and release together with letters of authority to date the same from each of the directors, alternate directors and officers of the Company  in the form set out in Schedule III; and

 

	
  

	
(e)

	
an undertaking from the Company to register transfers of the Charged Shares to the Chargee or its nominee in the form set out in Schedule III.

 

	
4.3

	
If consent is given in accordance with Paragraph 3.5(c) the Chargor will deliver, or cause to be delivered, to the Chargee immediately upon the issue of any further Charged Shares, the items listed in Paragraphs 4.2(a), 4.2(b), 4.2(c) and 4.2(e) in respect of all such further Charged Shares.

 

	
4.4

	
If consent is given in accordance with Paragraph 3.5(e) the Chargor will deliver, or cause to be delivered, to the Chargee immediately upon the appointment of any further director, alternate director or officer of the Company an undated, signed letter of resignation from such further director, alternate director or officer in a form acceptable to the Chargee.

 

	
4.5

	
The Chargor hereby covenants that during the Security Period it will remain the legal and the beneficial owner of the Charged Property (subject only to the Security Interests hereby created) and that it will not:

 

	
  

	
(a)

	
create or suffer the creation of any Security Interests (other than those created by this Charge) on or in respect of the whole of any part of the Charged Property or any of its interest therein; or

 

  

6

  

 

	
  

	
(b)

	
sell, assign, transfer or otherwise dispose of any of its interest in the Charged Property (other than with respect to the dividend or distribution payments described in Paragraph 5.1(b)); or

 

	
  

	
(c)

	
vote in respect of the Charged Shares or receive any dividends or other distributions paid by the Company in respect of the Charged Shares,

 

in any such case without the prior consent in writing of the Chargee.

 

	
4.6

	
The Chargor shall remain liable to perform all the obligations assumed by it in relation to the Charged Property and the Chargee shall be under no obligation of any kind whatsoever in respect thereof or be under any liability whatsoever in the event of any failure by the Chargor to perform its obligations in respect thereof.

 

	
4.7

	
Upon the Chargee being satisfied that the Secured Obligations have been unconditionally and irrevocably paid and discharged in full, and following a written request therefor from the Chargor, the Chargee will, subject to being indemnified to its reasonable satisfaction for the costs and expenses incurred by the Chargee in connection therewith, release the security constituted by this Charge.

 

	
5.

	
DEALINGS WITH CHARGED PROPERTY

 

	
5.1

	
Unless and until an Event of Default has occurred:

 

	
  

	
(a)

	
the Chargor shall be entitled to exercise all voting and/or consensual powers pertaining to the Charged Property or any part thereof for all purposes not inconsistent with the terms of this Charge and/or the Loan Agreement;

 

	
  

	
(b)

	
the Chargor shall be entitled to receive and retain any dividends, interest or other moneys or assets accruing on or in respect of the Charged Property or any part thereof; and

 

	
  

	
(c)

	
the Chargor shall be entitled to receive all notices pertaining to the Charged Shares.

 

	
5.2

	
The Chargor shall pay all calls, instalments or other payments, and shall discharge all other obligations, which may become due in respect of any of the Charged Property and in an Event of Default, the Chargee may if it thinks fit make such payments or discharge such obligations on behalf of the Chargor.  Any sums so paid by the Chargee in respect thereof shall be repayable on demand and pending such repayment shall constitute part of the Secured Obligations.

 

	
5.3

	
The Chargee shall not have any duty to ensure that any dividends, distributions, interest or other moneys and assets receivable in respect of the Charged Property are duly and punctually paid, received or collected as and when the same become due and payable or to ensure that the correct amounts (if any) are paid or received on or in respect of the Charged Property or to ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other property paid, distributed, accruing or offered at any time by way of redemption bonus, rights, preference, or otherwise on or in respect of, any of the Charged Property.

  

  

7

  

 

	
5.4

	
The Chargor hereby authorises the Chargee to arrange at any time and from time to time (whether before or after the occurrence of an Event of Default) for the Charged Property or any part thereof to be registered in the name of the Chargee (or its nominee) thereupon to be held as so registered subject to the terms of this Charge.

 

	
6.

	
PRESERVATION OF SECURITY

 

	
6.1

	
It is hereby agreed and declared that:

 

	
  

	
(a)

	
the security created by this Charge shall be held by the Chargee as a continuing security for the payment and discharge of the Secured Obligations and the security so created shall not be satisfied by any intermediate payment or satisfaction of any part of the Secured Obligations;

 

	
  

	
(b)

	
the security so created shall be in addition to and shall not in any way be prejudiced or affected by any of the other Security Documents;

 

	
  

	
(c)

	
the Chargee shall not be bound to enforce any other security before enforcing the security created by this Charge;

 

	
  

	
(d)

	
no delay or omission on the part of the Chargee in exercising any right, power or remedy under this Charge shall impair such right, power or remedy or be construed as a waiver thereof nor shall any single or partial exercise of any such right, power or remedy preclude any further exercise thereof or the exercise of any other right, power or remedy.  The rights, powers and remedies herein provided are cumulative and not exclusive of any rights, powers and remedies provided by law and may be exercised from time to time and as often as the Chargee may deem expedient; and

 

	
  

	
(e)

	
any waiver by the Chargee of any terms of this Charge shall only be effective if given in writing and then only for the purpose and upon the terms for which it is given.

 

	
6.2

	
Any settlement or discharge under this Charge between the Chargee and the Chargor shall be conditional upon no security or payment to the Chargee by the Company or the Chargor or any other person being avoided or set-aside or ordered to be refunded or reduced by virtue of any provision or enactment relating to bankruptcy, insolvency, administration or liquidation for the time being in force and, if such condition is not satisfied, the Chargee shall be entitled to recover from the Chargor on demand the value of such security or the amount of any such payment as if such settlement or discharge had not occurred.

 

  

8

  

 

	
6.3

	
The rights of the Chargee under this Charge and the Security Interest hereby constituted shall not be affected by any act, omission, matter or thing which, but for this provision, might operate to impair, affect or discharge such rights and security, in whole or in part, including without limitation, and whether or not known to or discoverable by the Company, the Chargor, the Chargee or any other person:

 

	
  

	
(a)

	
any time or waiver granted to or composition with the Company or any other person;

 

	
  

	
(b)

	
the taking, variation, compromise, renewal or release of or refusal or neglect to perfect or enforce any rights, remedies or securities against the Company or any other person;

 

	
  

	
(c)

	
any legal limitation, disability, incapacity or other circumstances relating to the Company or any other person;

 

	
  

	
(d)

	
any amendment or supplement to the Loan Agreement, the other Security Documents or any other document or security;

 

	
  

	
(e)

	
the dissolution, liquidation, reconstruction or reorganisation of the Company or any other person; or

 

	
  

	
(f)

	
the unenforceability, invalidity or frustration of any obligations of the Company or any other person under the Loan Agreement, the other Security Documents or any other document or security.

 

	
6.4

	
Until the Secured Obligations have been unconditionally and irrevocably satisfied and discharged in full to the satisfaction of the Chargee, the Chargor shall not by virtue of any payment made hereunder on account of the Secured Obligations or by virtue of any enforcement by the Chargee of its rights under, or the security constituted by, this Charge or by virtue of any relationship between or transaction involving, the Chargor and the Company (whether such relationship or transaction shall constitute the Chargor a creditor of the Company, a guarantor of the obligations of the Company or a party subrogated to the rights of others against the Company or otherwise howsoever and whether or not such relationship or transaction shall be related to, or in connection with, the subject matter of this Charge):

 

	
  

	
(a)

	
exercise any rights of subrogation in relation to any rights, security or moneys held or received or receivable by the Chargee or any person;

 

	
  

	
(b)

	
exercise any right of contribution from any co-surety liable in respect of such moneys and liabilities under any other guarantee, security or agreement;

 

  

9

  

 

	
  

	
(c)

	
exercise any right of set-off or counterclaim against the Company or any such co-surety;

 

	
  

	
(d)

	
receive, claim or have the benefit of any payment, distribution, security or indemnity from the Company or any such co-surety; or

 

	
  

	
(e)

	
unless so directed by the Chargee (when the Chargor will prove in accordance with such directions), claim as a creditor of the Company or any such co-surety in competition with the Chargee.

 

	
6.5

	
The Chargor shall hold in trust for the Chargee and forthwith pay or transfer (as appropriate) to the Chargee any such payment (including an amount equal to any such set-off), distribution (other than such dividend or distribution payments described in Paragraph 5.1(b) or benefit of such security, indemnity or claim in fact received by it.

 

	
6.6

	
Until the Secured Obligations have been unconditionally and irrevocably satisfied and discharged in full to the satisfaction of the Chargee, the Chargee may at any time keep in a separate account or accounts (without liability to pay interest thereon) in the name of the Chargee for as long as it may think fit, any moneys received, recovered or realised under this Charge or under any other guarantee, security or agreement relating in whole or in part to the Secured Obligations without being under any intermediate obligation to apply the same or any part thereof in or towards the discharge of such amount.

 

	
7.

	
ENFORCEMENT OF SECURITY

 

	
7.1

	
Upon the occurrence of an Event of Default, the Security Interest hereby constituted shall become immediately enforceable and the power of sale and other powers specified in Section 30 of the Conveyancing Act 1983 (applied in respect of personal property as well as real property) as varied or amended by this Charge shall be immediately exercisable and the Chargee may, at any time, without notice to, or consultation with, or the consent of, the Chargor:

 

	
  

	
(a)

	
solely and exclusively exercise all voting and/or consensual powers pertaining to the Charged Property or any part thereof and may exercise such powers in such manner as the Chargee may think fit; and/or

 

	
  

	
(b)

	
remove the then existing directors and officers (with or without cause) by dating and presenting the undated, signed letters of resignation delivered pursuant to this Charge; and/or

 

	
  

	
(c)

	
receive and retain all dividends, interest, distributions or other moneys or assets accruing on or in respect of the Charged Property or any part thereof, such dividends, interest, distributions or other moneys or assets to be held by the Chargee, until applied in the manner described in Sub-Clause 7.5, as additional security charged under and subject to the terms of this Charge and any such dividends, interest, distributions or other moneys or assets received by the Chargor after such time shall be held in trust by the Chargor for the Chargee and paid or transferred to the Chargee on demand; and/or

 

  

10

  

 

	
  

	
(d)

	
appoint by instrument any person to be a receiver of the Charged Property (the “Receiver”) and remove any Receiver so appointed and appoint another or others in his stead; and/or

 

	
  

	
(e)

	
sell, transfer, grant options over or otherwise dispose of the Charged Property or any part thereof at such place and in such manner and at such price or prices as the Chargee may deem fit, and thereupon the Chargee shall have the right to deliver, assign and transfer in accordance therewith the Charged Property so sold, transferred, granted options over or otherwise disposed of; and/or

 

	
  

	
(f)

	
complete any undated blank share transfer forms of all or any part of the Charged Property by dating the same and/or inserting its name or the name of its nominee as transferee.

 

	
7.2

	
The Chargor hereby waives the entitlement conferred by Section 29 of the Conveyancing Act 1983 (to the extent applicable) and agrees that Section 31 of that Act (to the extent applicable) shall not apply to the security created by this Charge.  For the avoidance of doubt, the powers of the Chargee by virtue of this Charge shall not be limited to those specified in Section 30 of the Conveyancing Act 1983.  For the purpose of all powers conferred by statute, the Secured Obligations shall be deemed to have become due and payable on the date hereof.

 

	
7.3

	
The Chargee shall not be obliged to make any enquiry as to the nature or sufficiency of any payment received by it under this Charge or to make any claim or to take any action to collect any moneys assigned by this Charge or to enforce any rights or benefits assigned to the Chargee by this Charge or to which the Chargee may at any time be entitled hereunder.

 

	
7.4

	
Upon any sale of the Charged Property or any part thereof by the Chargee, the purchaser shall not be bound to see or enquire whether the Chargee’s power of sale has become exercisable in the manner provided in this Charge and the sale shall be deemed to be within the power of the Chargee, and the receipt of the Chargee for the purchase money shall effectively discharge the purchaser who shall not be concerned with the manner of application of the proceeds of sale or be in any way answerable therefor.

 

	
7.5

	
All moneys received by the Chargee pursuant to this Charge shall be held by it upon trust in the first place to pay or make good all such expenses, liabilities, losses, costs, duties, fees, charges or other moneys whatsoever as may have been paid or incurred by the Chargee in exercising any of the powers specified or otherwise referred to in this Charge and the balance shall be applied in the following manner:

 

  

11

  

 

	
  

	
(a)

	
FIRSTLY:  in or towards satisfaction of any amounts in respect of the balance of the Secured Obligations as are then accrued due and payable or are then due and payable by virtue of payment demanded, in such order or application as the Chargee shall think fit;

 

	
  

	
(b)

	
SECONDLY:  in retention of an amount equal to any part or parts of the Secured Obligations as are or are not then due and payable but which (in the sole and absolute opinion of the Chargee) will or may become due and payable in the future and, upon the same becoming due and payable, in or towards satisfaction thereof in accordance with the foregoing provisions of this Sub-Clause 7.5; and

 

	
  

	
(c)

	
THIRDLY:  the surplus (if any) shall be repaid in accordance with the provisions of the Loan Agreement or applicable law.

 

	
7.6

	
Neither the Chargee nor its agents, managers, officers, employees, delegates or advisers shall be liable for any claim, demand, liability, loss, damage, cost or expense incurred or arising in connection with the exercise or purported exercise of any rights, powers and discretions hereunder in the absence of fraud or dishonesty; however, in no event shall the Chargee be liable for consequential damages.

 

	
7.7

	
The Chargee shall not by reason of the taking of possession of the whole or any part of the Charged Property or any part thereof be liable to account as mortgagee-in-possession or for anything except actual receipts or be liable for any loss upon realisation or for any default or omission for which a mortgagee-in-possession might be liable.

 

	
7.8

	
In addition to all other rights or powers vested in the Chargee hereunder or by statute or otherwise, the Receiver may take such action in relation to the enforcement of this Charge to:

 

	
  

	
(a)

	
take possession of, redeem, collect and get in all or any part of the Charged Property;

 

	
  

	
(b)

	
raise or borrow money and grant security therefor over all or any part of the Charged Property;

 

	
  

	
(c)

	
appoint an attorney or accountant or other professionally qualified person to assist him in the performance of his functions;

 

	
  

	
(d)

	
do all acts and to execute in the name and on behalf of the Chargor any document or deed in respect of all or any part of the Charged Property;

 

	
  

	
(e)

	
in the name of the Chargor or in his own name, bring, prosecute, enforce, defend and abandon applications, claims, disputes, actions, suits and proceedings in connection with all or any part of the Charged Property and to submit to arbitration, negotiate, compromise and settle any such applications, claims, disputes, actions, suits or proceedings;

 

  

12

  

 

	
  

	
(f)

	
sell, call in, collect and convert to money the Charged Property or any of it at such place and in such manner and at such price or prices as he shall think fit;

 

	
  

	
(g)

	
exercise any powers, discretion, voting or other rights or entitlements in relation to the Charged Property and generally to carry out any other action which he may in his sole discretion deem appropriate in relation to the enforcement of this Charge;

 

	
  

	
(h)

	
make any arrangement or compromise which he shall think expedient; and

 

	
  

	
(i)

	
do all such other acts and things as may be considered to be incidental or conducive to any of the matters or powers aforesaid and which the Receiver lawfully may or can do as agent for the Chargor.

 

	
7.9

	
Every Receiver shall, so far as it concerns responsibility for his acts, be deemed to be an agent of the Chargor, which shall be solely responsible for his acts and defaults and for the payment of his remuneration and no Receiver shall at any time act as agent for the Chargee.

 

	
7.10

	
Every Receiver shall be entitled to remuneration for his services at a rate to be fixed by agreement between him and the Chargee (or, failing such agreement, to be fixed by the Chargee) appropriate to the work and responsibilities involved, upon the basis of current industry practice.

 

	
8.

	
FURTHER ASSURANCES

 

	
8.1

	
The Chargor shall execute and do all such assurances, acts and things as the Chargee in its absolute discretion may require for:

 

	
  

	
(a)

	
perfecting, protecting or ensuring the priority of the Security Interest hereby created (or intended to be created);

 

	
  

	
(b)

	
preserving or protecting any of the rights of the Chargee under this Charge;

 

	
  

	
(c)

	
ensuring that the security constituted by this Charge and the covenants and obligations of the Chargor under this Charge shall inure to the benefit of any assignee of the Chargee;

 

	
  

	
(d)

	
facilitating the appropriation or realisation of the Charged Property or any part thereof; or

 

	
  

	
(e)

	
exercising any power, authority or discretion vested in the Chargee under this Charge,

 

  

13

  

 

in any such case, forthwith upon demand by the Chargee and at the expense of the Chargor.

 

	
8.2

	
Without limitation to the generality of Sub-Clause 8.1, the Chargor covenants with the Chargee that it will on demand of the Chargee use its best endeavours to procure any amendment to the memorandum of association or bye-laws of the Company necessary or, in the opinion of the Chargee desirable, in order to give effect to the terms of this Charge or any documents or transactions provided for herein.

 

	
8.3

	
The Chargor shall provide such assurances and do all acts and things the Receiver may in his absolute discretion require for the purpose of exercising the powers (or giving effect to the exercise of the powers) conferred on the Receiver hereunder and the Chargor hereby irrevocably appoints the Receiver to be the lawful attorney in fact of the Chargor to do any act or thing and to exercise all the powers of the Chargor for the purpose of exercising the powers (or giving effect to the exercise of the powers) conferred on the Receiver hereunder.

 

	
9.

	
INDEMNITIES

 

	
9.1

	
The Chargor will indemnify and save harmless the Chargee, the Receiver and each agent or attorney appointed under or pursuant to this Charge from and against any and all expenses, claims, liabilities, losses, taxes, costs, duties, fees and charges properly and reasonably suffered, incurred or made by the Chargee, the Receiver or such agent or attorney:

 

	
  

	
(a)

	
in the exercise or purported exercise of any rights, powers or discretions vested in them pursuant to this Charge;

 

	
  

	
(b)

	
in the preservation or enforcement of the Chargee’s rights under this Charge or the priority thereof; or

 

	
  

	
(c)

	
on the release of any part of the Charged Property from the security created by this Charge,

 

and the Chargee, the Receiver or such agent or attorney may retain and pay all sums in respect of the same out of money received under the powers conferred by this Charge.  All amounts recoverable by the Chargee, the Receiver or such agent or attorney or any of them shall be recoverable on a full indemnity basis.

 

	
9.2

	
If, under any applicable law or regulation, and whether pursuant to a judgment being made or registered against the Chargor or the bankruptcy or liquidation of the Chargor or for any other reason any payment under or in connection with this Charge is made or falls to be satisfied in a currency (the “Payment Currency”) other than the currency in which such payment is due under or in connection with this Charge (the “Contractual Currency”), then to the extent that the amount of such payment actually received by the Chargee when converted into the Contractual Currency at the rate of exchange, falls short of the amount due under or in connection with this Charge, the Chargor, as a separate and independent obligation, shall indemnify and hold harmless the Chargee against the amount of such shortfall.  For the purposes of this Clause, “rate of exchange” means the rate at which the Chargee is able on or about the date of such payment to purchase the Contractual Currency with the Payment Currency and shall take into account any premium and other costs of exchange with respect thereto.

 

  

14

  

 

	
10.

	
POWER OF ATTORNEY

 

	
10.1

	
The Chargor, by way of security and in order more fully to secure the performance of its obligations hereunder, hereby irrevocably appoints the Chargee and the persons deriving title under it jointly and also severally to be its attorney:

 

	
  

	
(a)

	
to execute and complete in favour of the Chargee or its nominees or of any purchaser any documents which the Chargee may from time to time require for perfecting its title to or for vesting any of the assets and property hereby charged or assigned in the Chargee or its nominees or in any purchaser and to give effectual discharges for payments;

 

	
  

	
(b)

	
to take and institute on non-payment (if the Chargee in its sole discretion so decides) all steps and proceedings in the name of the Chargor or of the Chargee for the recovery of such moneys, property and assets hereby charged and to agree accounts;

 

	
  

	
(c)

	
to act as the Chargor’s corporate representative (and/or to appoint any officer or nominee of the Chargee for such purpose) to represent the Chargor at any general meeting of the members of the Company and to sign any resolution in writing of the members of the Company or to requisition or convene general meetings of the Company or to waive or consent to short notice of such in that capacity;

 

	
  

	
(d)

	
to make allowances and give time or other indulgence to any surety or other person liable;

 

	
  

	
(e)

	
otherwise generally to act for it and in its name and on its behalf; and

 

	
  

	
(f)

	
to sign, execute, seal and deliver and otherwise perfect and do any such legal assignments and other assurances, charges, authorities and documents over the moneys, property and assets hereby charged, and all such deeds, instruments, acts and things (including, without limitation, those referred to in Clause 8) which may be required for the full exercise of all or any of the powers conferred or which may be deemed proper on or in connection with any of the purposes aforesaid.

 

  

15

  

 

	
10.2

	
The power hereby conferred shall be a general power of attorney and the Chargor hereby ratifies and confirms and agrees to ratify and confirm any instrument, act or thing which any such attorney may execute or do.  In relation to the power referred to herein, the exercise by the Chargee of such power shall be conclusive evidence of its right to exercise the same.

 

	
11.

	
EXPENSES

 

	
11.1

	
The Chargor shall pay to the Chargee on demand all costs, fees and expenses (including, but not limited to, legal fees and expenses) and taxes thereon incurred by the Chargee or for which the Chargee may become liable in connection with:

 

	
  

	
(a)

	
the negotiation, preparation and execution of this Charge;

 

	
  

	
(b)

	
the preserving or enforcing of, or attempting to preserve or enforce, any of its rights under this Charge or the priority hereof;

 

	
  

	
(c)

	
any variation of, or amendment or supplement to, any of the terms of this Charge; and/or

 

	
  

	
(d)

	
any consent or waiver required from the Chargee in relation to this Charge,

 

and in any case referred to in Paragraphs (c) and (d) regardless of whether the same is actually implemented, completed or granted, as the case may be.

 

	
11.2

	
The Chargor shall pay promptly any stamp, documentary and other like duties and taxes to which this Charge may be subject or give rise and shall indemnify the Chargee on demand against any and all liabilities with respect to or resulting from any delay or omission on the part of the Chargor to pay any such duties or taxes.

 

	
12.

	
NOTICES

 

Any notice required to be given hereunder shall be in writing in the English language and shall be served by sending the same by prepaid recorded post, facsimile or by delivering the same by hand to the address of the Party or Parties in question as set out below (or such other address as such Party or Parties shall notify the other Parties of in accordance with this Clause). Any notice sent by post as provided in this Clause shall be deemed to have been served five Business Days after despatch and any notice sent by facsimile as provided in this Clause shall be deemed to have been served at the time of despatch and in proving the service of the same it will be sufficient to prove in the case of a letter that such letter was properly stamped, addressed and placed in the post; and in the case of a facsimile that such facsimile was duly despatched to a current facsimile number of the addressee.

 

  

16

  

 

	
Chargor:

	  	  
	 	 	 
	  	
Utah Medical Products, Inc.

	  
	  	
7043 South 300 West

	  
	  	
Midvale, Utah 84047

	  
	  	
Attention: Paul Richins

	  
	  	
Facsimile No: 801-566-7305

	  
	  	  	  
	
with a copy to:

	
Osborne Clarke

	  
	  	
2 Palo Alto Square

	  
	  	
Suite 200

	  
	  	
Palo Alto, CA 94306, USA

	  
	  	
Attention: Steve Wilson, Esq.

	  
	  	
Facsimile No: 650-739-0360

	  
	  	  	  
	
Chargee:

	  	  
	 	 	 
	  	
JPMorgan Chase Bank, N.A.

	  
	  	
201 South Main Street

	  
	  	
Suite 300

	  
	  	
Salt Lake City, Utah 84111

	  
	  	
Attention: Lynn Goodale

	  
	  	
Facsimile No: 801-715-7401

	  
	  	  	  
	
with a copy to:

	
Snell & Wilmer L.L.P.

	  
	  	
Beneficial Tower

	  
	  	
15 West South Temple, Suite 1200

	  
	  	
Salt Lake City, Utah 84101

	  
	  	
Attention: Brian D. Cunningham, Esq.

	  
	  	
Facsimile No: 801-257-1800

	  

 

	
13.

	
ASSIGNMENTS

 

	
13.1

	
This Charge and all non-contractual obligations arising out of or in connection with it shall be binding upon and shall inure to the benefit of the Chargor and the Chargee and each of their respective successors and (subject as hereinafter provided) assigns and references in this Charge to any of them shall be construed accordingly.

 

	
13.2

	
The Chargor may not assign or transfer all or any part of its rights and/or obligations under this Charge.

 

	
13.3

	
The Chargee may not assign or transfer all or any part of its rights or obligations under this Charge to any assignee or transferee without the consent of the Chargor such consent not to be unreasonably withheld, provided that no such consent shall be required if an Event of Default affecting the Chargor has occurred and is continuing.

 

  

17

  

 

	
14.

	
MISCELLANEOUS

 

	
14.1

	
The Chargee, at any time and from time to time, may delegate by power of attorney or in any other manner to any person or persons all or any of the powers, authorities and discretions which are for the time being exercisable by the Chargee under this Charge in relation to the Charged Property or any part thereof.  Any such delegation may be made upon such terms and be subject to such regulations as the Chargee may think fit.  The Chargee shall not be in any way liable or responsible to the Chargor for any loss or damage arising from any act, default, omission or misconduct on the part of any such delegate provided the Chargee has acted reasonably in selecting such delegate.

 

	
14.2

	
This Charge (together with any documents referred to herein) constitutes the whole agreement between the Parties relating to its subject matter and no variations hereof shall be effective unless made in writing and signed by each of the Parties.

 

	
14.3

	
The headings in this Charge are inserted for convenience only and shall not affect the construction of this Charge.

 

	
14.4

	
This Charge may be executed in counterparts each of which when executed and delivered shall constitute an original but all such counterparts together shall constitute one and the same instrument.

 

	
14.5

	
If any of the Clauses, sub-Clauses, paragraphs, conditions, covenants or restrictions of this Charge or any deed or document emanating from it shall be found to be void but would be valid if some part thereof were deleted or modified, then such Clause, sub-Clause, paragraph, condition, covenant or restriction shall apply with such deletion or modification as may be necessary to make it valid and effective.

 

	
15.

	
LAW AND JURISDICTION

 

This Charge shall be governed by and construed in accordance with the laws of Bermuda and the Parties hereby irrevocably submit to the non-exclusive jurisdiction of the courts of Bermuda, provided that nothing in this Clause shall affect the right of the Chargee to serve process in any manner permitted by law or limit the right of the Chargee to take proceedings with respect to this Charge against the Chargor in any jurisdiction nor shall the taking of proceedings with respect to this Charge in any jurisdiction preclude the Chargee from taking proceedings with respect to this Charge in any other jurisdiction, whether concurrently or not.

 

  

18

  

IN WITNESS whereof the parties hereto have caused this Share Charge to be duly executed and delivered as a Deed the day and year first before written.

Executed as a Deed for and on behalf of

UTAH MEDICAL PRODUCTS, INC.

By:       /s/ Paul O. Richins                                        

Name:           Paul O. Richins                                     

Title:               V.P.                                                       

Executed as a Deed for and on behalf of

JPMORGAN CHASE BANK, N.A.

By:        /s/ Lynn Goodale                                          

Name:             Lynn Goodale                                     

Title:                Senior Banker                                     

 

  

19

  

SCHEDULE I

SHARE TRANSFER FORM

Transfer of a Share or Shares

Utah Medical Products Ltd. (the “Company”)

 

FOR VALUE RECEIVED

 

 

 

Utah Medical Products, Inc. (the "Transferor") hereby sells, assigns and transfers unto ...................................................................................................... (the "Transferee") of 65% of all the issued common shares of the Company (being those shares entitling the holder thereof to vote at general meetings of the Company), and 100% of all such other shares issued by the Company which do not entitle the holder thereof to vote at general meetings of the Company (if any are issued to the Transferor from time to time).

 

 

DATED this 17th day of March 2011

 

 

	
Signed by:

	
In the presence of:

 

	 	 	 	 
	
Transferor

	  	
Witness

	 

 

  

20

  

SCHEDULE II

IRREVOCABLE PROXY

Reference is made to the Share Charge dated on or about the date of this proxy made between UTAH MEDICAL PRODUCTS, INC. (the “Shareholder”) and JPMORGAN CHASE BANK, N.A. (the “Chargee”) with respect to 65% of all the issued voting share capital of UTAH MEDICAL PRODUCTS LTD., an exempted company incorporated under the laws of Bermuda (the “Company”); 65% of any additional issued voting share capital of the Company in the future legally or beneficially owned by the Chargor; and 100% of the issued non voting share capital of the Company in the future legally or beneficially owned by the Chargor (the “Share Charge”).

Expressions defined in the Share Charge have the same meaning in this proxy.

The Shareholder hereby appoints each of the Chargee, every officer of the Chargee from time to time (each a “Proxy Holder”) the true and lawful attorney, representative pursuant to Section 78(1)(a) of the Companies Act 1981, and proxy of the Shareholder each acting singly for and in the Shareholder's name, place and stead to attend all meetings of the shareholders of the Company and to vote any and all of the above described shares in the Company at the time standing in the Shareholder's name and to exercise all consensual rights in respect of such shares (including without limitation giving or withholding written consents of shareholders and calling special general meetings of shareholders) upon and during the continuance of an Event of Default.

The Shareholder hereby affirms that this proxy is given pursuant to clause 4 of the Share Charge. THIS PROXY IS COUPLED WITH AN INTEREST AND IS IRREVOCABLE UNTIL SUCH TIME AS THE SECURED OBLIGATIONS HAVE BEEN UNCONDITIONALLY AND IRREVOCABLY SATISFIED AND DISCHARGED IN FULL TO THE SATISFACTION OF THE CHARGEE, AT WHICH TIME IT SHALL TERMINATE AND CEASE TO HAVE EFFECT.

  

21

  

The Shareholder hereby ratifies and confirms and undertakes to ratify and confirm all that the Chargee or any Proxy Holder may lawfully do or cause to be done by virtue hereof.

If at any time this proxy shall for any reason be ineffective or unenforceable or fail to provide the Chargee with the rights or the control over the Shareholder's shares of the Company purported to be provided herein, the Shareholder shall execute a replacement instrument which provides the Chargee with substantially the same control over the Company as contemplated herein. This irrevocable proxy shall be governed by the laws of Bermuda and the Shareholder irrevocably submits to the jurisdiction of the courts of Bermuda in relation to the matters contained herein.

Executed and Delivered as a Deed by UTAH MEDICAL PRODUCTS, INC. this 17th day of March 2011.

By:          /s/ Paul O. Richins                           

Name:             Paul O. Richins                         

Title:                  V.P.                                          

By:  _____________________________ 

   

Name: ___________________________

Title: ____________________________  

  

22

  

SCHEDULE III

LETTER OF RESIGNATION AND RELEASE

To:                      Utah Medical Products Ltd.

I, [name of director], hereby tender my resignation as a Director [and [other office]] of Utah Medical Products Ltd. with effect from the date of this letter.

I confirm that I have no claims or rights of action against the Company whether for damages or for compensation for loss of office.

	
By:___________________________

	  	
Date:_______________________

	  
	  	  	  	  
	
Name:________________________

	  	  	  

  

23

  

 

AUTHORITY TO DATE LETTER OF RESIGNATION AND RELEASE

	
TO:

	
JPMorgan Chase Bank, N.A.

	  	
201 South Main Street

	  	
Suite 300

	  	
Salt Lake City, Utah 84111

	  	
Attention: Lynn Goodale

I, [NAME OF DIRECTOR], hereby irrevocably authorise any officer or agent of JPMorgan Chase Bank, N.A. at any time to date and submit the attached letter of resignation on my behalf.

Executed and Delivered as a Deed this 17th day of March 2011.

By: _____________________________ 

Name:   __________________________

 

Witness signature:  _________________                                                                          

Witness name:  ____________________                                                                           

  

24

  

SCHEDULE IV

UNDERTAKING

We, Utah Medical Products Limited (the “Company”) hereby irrevocably UNDERTAKE and COVENANT with JPMorgan Chase Bank, N.A. (the “Transferee”) to register all transfers of Charged Shares submitted to the Company for registration by the Transferee pursuant to the due exercise of rights under the Share Charge (as defined below) as soon as practical following the submission of such transfers accompanied by evidence of any required consent of the Bermuda Monetary Authority to such transfers.

This Undertaking is given pursuant to Paragraph 4.2(e) of the Share Charge (the “Share Charge”) dated 17th March 2011 between Utah Medical Products, Inc. and the Transferee, and any capitalised terms used herein and not otherwise defined herein shall have the meanings given such terms in the Share Charge.

IN WITNESS whereof the Company has caused this Deed to be duly executed and delivered this 17th day of March 2011.

	
SIGNED as a DEED

	  
	
by Paul O. Richins

	  
	
authorised signatory for

	
        s/ Paul O. Richins           

	
UTAH MEDICAL PRODUCTS LTD.

	
Authorised Signatory

	
in the presence of:

	  
	  	  
	  	  
	
Name:         Kevin L. Cornwell

	
        /s/ Kevin L. Cornwell       

	  	
Witness

	  	  
	
Address:      ..........................................

	 
	  	  
	
                       ..........................................

	 
	  	  
	
Occupation: ..........................................

	 

 

25

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