Document:

<PAGE>

                                                                   Exhibit 10.30

SILICON VALLEY BANK

                              AMENDED AND RESTATED

                           LOAN AND SECURITY AGREEMENT

BORROWER:  EXABYTE CORPORATION, A DELAWARE CORPORATION
ADDRESS:   2108 55TH STREET
           BOULDER, COLORADO  80301

DATE:      AS OF JANUARY 1, 2004

THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this "Agreement") is
entered into on the above date between SILICON VALLEY BANK ("Silicon"), whose
address is 3003 Tasman Drive, Santa Clara, California 95054 (and with an office
at 14185 Dallas Parkway, 7th Floor, Dallas, Texas 75254), 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.)

Silicon and Borrower are parties to that certain Loan and Security Agreement,
dated June 18, 2002 (as amended, restated, supplemented, or otherwise modified
from time to time prior to the date hereof, the "Existing Loan Agreement"). For
good and valuable consideration (the receipt and sufficiency of which hereby are
acknowledged), Silicon and Borrower hereby amend and restate the Existing Loan
Agreement in its entirety as set forth herein (it being understood that no
repayment of the obligations under the Existing Loan Agreement is being effected
hereby, but merely an amendment and restatement in accordance with the terms
hereof). Notwithstanding such amendment and restatement of the Existing Loan
Agreement, the following loan documents executed or otherwise entered into in
connection with the Existing Loan Agreement shall continue in full force and
effect and shall continue to secure all present and future indebtedness,
liabilities, guarantees and other Obligations: All standard documents of Silicon
entered into by Borrower in connection with letters of credit and/or foreign
exchange contracts and/or cash management services, if any; all security
agreements, collateral assignments and mortgages, including but not limited to
those relating to patents, trademarks, copyrights and other intellectual
property; all account agreements; and all UCC-1 financing statements and other
documents filed with governmental offices which perfect liens or security
interests in favor of Silicon. In addition, any and all stock options, stock
purchase warrants or securities issued in favor of Silicon and all documents and
agreements relating thereto shall also continue in full force and effect.

1.    LOANS.

    1.1 LOANS. Silicon will make loans to Borrower (the "Loans"), in amounts
determined by Silicon in its good faith business judgment, 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*.

    * IN ACCORDANCE WITH THE PROVISIONS SET FORTH IN THE DEFINITION OF THE TERM
"RESERVES" BELOW IN SECTION 8

    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.

                                      -1-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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 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.

    1.6 LETTERS OF CREDIT. At the request of Borrower, Silicon may, in its good
faith business judgment, issue or arrange for the issuance of letters of credit
for the account of Borrower, in each case in form and substance satisfactory to
Silicon in its sole discretion (collectively, "Letters of Credit"). The
aggregate face amount of all Letters of Credit from time to time outstanding
shall not exceed the amount shown on the Schedule (the "Letter of Credit
Sublimit"), and shall be reserved against Loans which would otherwise be
available hereunder, and in the event at any time there are insufficient Loans
available to Borrower for such reserve, Borrower shall deposit and maintain with
Silicon cash collateral in an amount at all times equal to such deficiency,
which shall be held as Collateral for all purposes of this Agreement. Borrower
shall pay all bank charges (including charges of Silicon) for the issuance of
Letters of Credit, together with such additional fee as Silicon's letter of
credit department shall charge in connection with the issuance of the Letters of
Credit. Any payment by Silicon under or in connection with a Letter of Credit
shall constitute a Loan hereunder on the date such payment is made. Each Letter
of Credit shall have an expiry date no later than thirty days prior to the
Maturity Date. Borrower hereby agrees to indemnify and hold Silicon harmless
from any loss, cost, expense, or liability, including payments made by Silicon,
expenses, and reasonable attorneys' fees incurred by Silicon arising out of or
in connection with any Letters of Credit. Borrower agrees to be bound by the
regulations and interpretations of the issuer of any Letters of Credit
guarantied by Silicon and opened for Borrower's account or by Silicon's
interpretations of any Letter of Credit issued by Silicon for Borrower's
account, and Borrower understands and agrees that Silicon shall not be liable
for any error, negligence, or mistake, whether of omission or commission, in
following Borrower's instructions or those contained in the Letters of Credit or
any modifications, amendments, or supplements thereto. Borrower understands that
Letters of Credit may require Silicon to indemnify the issuing bank for certain
costs or liabilities arising out of claims by Borrower against such issuing
bank. Borrower hereby agrees to indemnify and hold Silicon harmless with respect
to any loss, cost, expense, or liability incurred by Silicon under any Letter of
Credit as a result of Silicon's indemnification of any such issuing bank. The
provisions of this Loan Agreement, as it pertains to Letters of Credit, and any
other Loan Documents relating to Letters of Credit are cumulative.

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; 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*.

    + , AND HEREBY REAFFIRMS BORROWER'S PRIOR GRANTS TO SILICON OF SECURITY
INTERESTS,

    *PROVIDED THAT THE COLLATERAL SHALL NOT INCLUDE THE STOCK OF BORROWER IN
CREEKPATH SYSTEMS, INC.

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

                                      -2-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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.

    *BY ALL NECESSARY CORPORATE ACTION

    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 maintain sales offices in the ordinary
course of business at which not more than a total of * fair market value of
Equipment is LOCATED**.

    *$20,000

    **AND BORROWER MAY MAINTAIN TOOLING IN THE ORDINARY COURSE OF BUSINESS WITH
SUPPLIERS IN FOREIGN COUNTRIES

    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.

    *A LIST OF

    (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) 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

                                      -3-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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. 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.

    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 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. 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 * or more in the aggregate.

    *$250,000

    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 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. 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

                                      -4-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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*,
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.

    *IN ITS GOOD FAITH BUSINESS JUDGMENT, BORROWER, FROM TIME TO TIME

    4.4 COLLECTION OF ACCOUNTS. Borrower shall have the right to collect all
Accounts, unless and until 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 * 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.
Nothing in this Section limits the restrictions on disposition of Collateral set
forth elsewhere in this Agreement.

    *$100,000

    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.

    *ON THE REGULAR REPORTS TO SILICON

    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

                                      -5-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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.

    * PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION 4.9 SHALL BE DEEMED TO
GRANT TO SILICON THE RIGHTS TO SETTLE OR COLLECT ANY ACCOUNTS OR TO ANY RIGHTS
TO CONTROL ANY GOODS, OTHER THAN SUCH RIGHTS AS ARE GIVEN ELSEWHERE IN THIS
AGREEMENT IN CONNECTION WITH ANY EVENT OF DEFAULT THAT IS CONTINUING.

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.

    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 * ,
Silicon, or its agents, shall have the right to inspect the Collateral, and the
right to audit and copy Borrower's books and records. 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 $700 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.

    *THREE BUSINESS DAYS NOTICE (EXCEPT THAT IF AN EVENT OF DEFAULT HAS OCCURRED
AND IS CONTINUING SAID PERIOD SHALL BE ONE BUSINESS DAY'S NOTICE)

    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*; (vi) sell any Inventory on a
sale-or-return, guaranteed sale, consignment, or other contingent basis; (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;
(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.

    *UNLESS SUCH WAREHOUSEMAN OR OTHER THIRD PARTY HAS EXECUTED A BAILEE
AGREEMENT IN FORM ACCEPTABLE TO SILICON

                                      -6-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

    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.

    * AND UPON REASONABLE NOTICE TO BORROWER

    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.

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
Section 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 1% of the Maximum Credit Limit (as defined
in the Schedule) if termination occurs on or before the first anniversary of the
date of this Agreement, and 0.5% of the Maximum Credit Limit if termination
occurs after the first anniversary of the date of this Agreement. 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. 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-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,

                                      -7-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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 * 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) *** , without the prior written consent of
Silicon; 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; or (q)
Silicon, acting in good faith and in a commercially reasonable manner, deems
itself insecure because of the occurrence of an event prior to the effective
date hereof of which Silicon had no knowledge on the effective date or because
of the occurrence of an event on or subsequent to the effective date. 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.

    *45

    **HAVING A VALUE OF MORE THAN $25,000

    ***MERITAGE INVESTMENT PARTNERS LLC SHALL CEASE TO OWN AT LEAST 20% OF THE
OUTSTANDING VOTING STOCK OF BORROWER

    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 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

                                      -8-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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.

    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.

                                      -9-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

    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 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 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.

    "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 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) * , (v) the Account must not be owing
from an Affiliate of Borrower, (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

                                      -10-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

States or Canada (unless it is 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, or the subject of credit insurance under a
credit insurance policy which is in form and substance acceptable to Silicon in
its good faith business judgment, under which Silicon is the exclusive loss
payee, and which is issued by an insurance company which is, and continues to
be, acceptable to Silicon in its good faith business judgment and which has a
claims and payment history acceptable to Silicon in its good faith business
judgment (the "Foreign Credit Insurance Policy")), (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. As to any Foreign Credit Insurance Policy, the following
provisions shall apply: (a) Borrower agrees to comply with all requirements of
the Foreign Credit Insurance Policy, to provide Silicon with copies of all
claims thereunder and all reports made to the insurance company, to make timely
claims thereunder in the event of any loss covered by such insurance, and to
keep said insurance in full force and effect so long as any Accounts subject
thereto are outstanding. (b) To the extent Accounts owing from an Account Debtor
exceed any limits set forth in the Foreign Credit Insurance Policy, they shall
not be deemed to be Eligible Accounts, and to the extent total Accounts insured
under the Foreign Credit Insurance Policy exceed the policy limit of the Foreign
Credit Insurance Policy, they shall not be deemed Eligible Accounts. (c)
Borrower shall assure that the terms of sale, products sold, and all other
aspects of sales to Account Debtors named in the Foreign Credit Insurance Policy
shall comply in all respects with the terms and requirements of the Foreign
Credit Insurance Policy. (d) Silicon may, in its good faith business judgment,
establish Reserves with respect to Accounts insured under the Foreign Credit
Insurance Policy to take into account deductibles, co-insurance, other
provisions of the Foreign Credit Insurance Policy, and other factors and risks
relating to the Accounts.

    + ; PROVIDED, HOWEVER, THAT THE ELIGIBILITY PERIOD FOR ANY ACCOUNT OWING BY
THE ACCOUNT DEBTOR KNOWN AS IMATION SHALL BE 45 DAYS FROM ITS INVOICE DATE;

    *THE ACCOUNT DEBTOR WITH RESPECT TO SUCH ACCOUNT MUST NOT HAVE ASSERTED A
DISPUTE WITH RESPECT TO SUCH ACCOUNT

    ++ (OR, IN THE CASE OF THE ACCOUNT DEBTOR KNOWN AS TECH DATA, 30%; OR, IN
THE CASE OF THE ACCOUNT DEBTOR KNOWN AS INGRAM, 30%)

    **UNLESS SILICON, IN ITS SOLE DISCRETION, AGREES IN WRITING TO A HIGHER
NUMBER FOR PARTICULAR ACCOUNT DEBTORS

    +++ OTHER THAN TECH DATA OR INGRAM OR IMATION (OR IF MORE THAN 35% OF THE
ACCOUNTS OWING FROM THE ACCOUNT DEBTOR KNOWN AS TECH DATA, OR IF MORE THAN 35%
OF THE ACCOUNTS OWING FROM THE ACCOUNT DEBTOR KNOWN AS INGRAM, OR IF MORE THAN
35% OF THE ACCOUNTS OWING FROM THE ACCOUNT DEBTOR KNOWN AS IMATION)

    "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).

    "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

                                      -11-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

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 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.

    "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.

                                      -12-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

    "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 * 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 , **
constitute an Event of Default.

    *ARE REASONABLY LIKELY TO

    *IS REASONABLY LIKELY TO

    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.

9. GENERAL PROVISIONS.

    9.1 INTEREST COMPUTATION. In computing interest on the Obligations, all
checks, wire transfers and other items of payment received by Silicon (including
proceeds of Accounts and payment of the Obligations in full) shall be deemed
applied by Silicon on account of the Obligations two Business Days after receipt
by Silicon of immediately available funds, and, for purposes of the foregoing,
any such funds received after 12:00 Noon on any day shall be deemed received on
the next Business Day. * Silicon shall not, however, be required to credit
Borrower's account for the amount of any item of payment which is unsatisfactory
to Silicon in its good faith business judgment, and Silicon may charge
Borrower's loan account for the amount of any item of payment which is returned
to Silicon unpaid.

    * FOR PURPOSES OF COMPUTING AVAILABILITY OF LOANS, CHECKS, WIRE TRANSFERS
AND OTHER ITEMS OF PAYMENT RECEIVED BY SILICON (INCLUDING PROCEEDS OF ACCOUNTS)
SHALL BE DEEMED APPLIED BY SILICON ON ACCOUNT OF THE OBLIGATIONS ON THE DATE
RECEIVED BY SILICON IN IMMEDIATELY AVAILABLE FUNDS, PROVIDED THAT FUNDS RECEIVED
AFTER 12:00 NOON ON ANY DAY SHALL BE DEEMED RECEIVED ON THE NEXT BUSINESS DAY.

    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 as follows: (a) if to Borrower, at
the address for Borrower shown in the heading to this Agreement; (b) if to
Silicon, at Silicon Valley Bank, 14185 Dallas Parkway, 7th Floor, Dallas, Texas
75254, Attn: Manager; or (c) at any other address designated in writing by one
party to the other party in connection with this Section 9.5. 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 ** Business Days following the deposit thereof in
the United States mail, with postage prepaid.

    *OVERNIGHT

                                      -13-
<PAGE>

                                                          AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

    **FOUR

    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 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.

                                      -14-
<PAGE>

                                                          AMENDED AND RESTATED
                  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 * 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 ** period
is a reasonable and sufficient time for Borrower to investigate and act upon any
such claim or cause of action. The** 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.

    *TWO YEARS ** TWO-YEAR

    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.

    [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS]

                                      -15-
<PAGE>

                                              SCHEDULE TO AMENDED AND RESTATED
                  SILICON VALLEY BANK              LOAN AND SECURITY AGREEMENT

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
and delivered as of the date first above written.

BORROWER:                                      SILICON:

    EXABYTE CORPORATION                        SILICON VALLEY BANK

    BY_______________________________          BY_______________________________
       PRESIDENT OR VICE PRESIDENT             TITLE____________________________

    BY_______________________________
       SECRETARY OR ASS'T SECRETARY

Form: -3 (3/7/02)

                                 Signature Page

ScheduleExhibit 10.20

                DEVELOPMENT AND OEM SUPPLY/DISTRIBUTION AGREEMENT

         THIS AGREEMENT ("Agreement") is made this 15 day of June, 2004, by and
between Specialized Health Products International, Inc., having an address at
585 West 500 South, Bountiful, Utah 84010 (hereinafter referred to as "SHPI"),
and TYCO HEALTHCARE GROUP LP, a Delaware Partnership having an office at 15
Hampshire Street, Mansfield, Massachusetts 02048 (hereinafter referred to as
"Tyco Healthcare").

                                    RECITALS

         WHEREAS, SHPI desires to grant to Tyco Healthcare, and Tyco Healthcare
desires to accept from SHPI, the exclusive right to promote, market, distribute
and sell the "Products" (as hereinafter defined) in the "Field" (as hereinafter
defined) throughout the "Territory" (as hereinafter defined).

         NOW, THEREFORE, in consideration of the terms and conditions set forth
in this Agreement and for other good and valuable consideration, the receipt and
sufficiency of which is acknowledged by the execution hereof, SHPI and Tyco
Healthcare hereby agree as follows:

I.       DEFINITIONS. The following terms are defined for purposes of this
         Agreement.

         1.1. "Effective Date" shall mean the date and year first written above.

         1.2. "Affiliate" shall mean any person or corporation or other business
entity controlled by, controlling, or under common control with a party to this
Agreement.

         1.3. "Act" shall mean the United States Food, Drug and Cosmetic Act of
1938, as amended and all regulations promulgated pursuant thereto, and any state
and local laws and regulations thereunder promulgated and all similar laws and
regulations of any other country or relevant jurisdiction related to the
development, manufacture, sale or distribution of Products.

         1.4. "Available for Commercial Sale" shall mean the last date on which
each of the following conditions shall have been satisfied with respect to each
of the Products listed on Exhibit B attached hereto: (i) Tyco Healthcare shall
have obtained Regulatory Approval for such Products, (ii) SHPI shall have
manufactured such Products in conformance with the Specifications and delivered
such Products to Tyco Healthcare's manufacturing facility, and (iii) Tyco
Healthcare shall have sterilized and packaged such Products and delivered such
Products to Tyco Healthcare's distribution facility.

                                       1
<PAGE>

         1.5. "Products" shall mean all conventional and safety bone marrow
needles that incorporate the devices or device components disclosed in U.S.
Utility Patent Applications Serial Nos. ** and ** (the "Base Technology"), which
are supplied by SHPI. Conventional J-type and I-Type products will include a
modified handle. The conventional I-Type product will include a slip-release
feature.

         1.6. "Specifications" shall mean the raw material, manufacturing,
quality assurance, packaging and finished product specifications and protocols
developed pursuant to this Agreement relating to the Products and mutually
agreed upon by the parties, as the same may be modified and/or supplemented
pursuant to the provisions hereof.

         1.7. "Field" shall mean all relevant applications of bone marrow
needles.

         1.8. "Territory" shall mean worldwide on an exclusive basis.

         1.9. "Confidential Information" shall mean any information of a
confidential and/or proprietary nature as to which Tyco Healthcare or an
Affiliate of Tyco Healthcare or SHPI or an Affiliate of SHPI, as the disclosing
party, prior to or during the term of this Agreement, develops or acquires any
interest, including but not limited to, all sales, marketing, business and
financial information and all discoveries, inventions, improvements, and ideas
relating to any process, formula, machine, device, manufacture, composition of
matter, plan or design, whether patentable or not, or relating to the conduct of
business by the disclosing party (including the existence and subject matter of
this Agreement) which, prior to or during the term of this Agreement, was or is
disclosed to the other party, as the receiving party, exclusive of data or
information: (i) which, at the time of disclosure hereunder, was in the public
domain or which, subsequent to disclosure hereunder, becomes part of the public
domain by any means other than the breach by the receiving party of its
obligations hereunder, or (ii) which was known to the receiving party, at the
time of disclosure hereunder, as evidenced by the receiving party's business
records maintained in the ordinary course of business, or (iii) which is, at any
time, disclosed to the receiving party by any person or entity not a party
hereto whom the receiving party believes, after reasonable inquiry, has the
right to disclose

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       2
<PAGE>

the same, or (iv) which is developed by an employee of the receiving party who
is shown, by competent proof and by clear and convincing evidence, not to have
been privy to information disclosed by the disclosing party, or (v) which is
disclosed verbally, except where the disclosing party reduces the verbal
disclosure to writing, marks the same as confidential and proprietary and
furnishes the receiving party with the reduction to writing within thirty (30)
days of the verbal disclosure.

         1.10. "Contract Year" shall mean the twelve-month period commencing on
the earlier of (i) the date all products identified in Exhibit B are Available
for Commercial Sale or (ii) the date that is three (3) months after the
conditions set forth in Section 1.4(i) and (ii) have been satisfied; and each
successive twelve-month period thereafter.

         1.11. "Regulatory Approval" shall mean the notification to or
concurrence, acknowledgment, or approval of any governmental or
quasi-governmental agency or regulatory body, which notification, concurrence,
acknowledgment or approval is necessary for or useful to the manufacturing,
processing, marketing or sale of Products anywhere in the United States, and
which is made in the name of Tyco Healthcare or has been given/granted on behalf
of Tyco Healthcare.

         1.12. "Commercial Sale" - means, with respect to the Products which
Tyco Healthcare elects to distribute hereunder, the sale by Tyco Healthcare or
any Affiliate of Tyco Healthcare (or their respective distributors) to any
non-Affiliate.

         1.13. "Competing Product" - means any product sold or offered for sale
in the Territory which: (i) employs technology which, as of the Effective Date,
was not employed in the healthcare products industry to reduce the risk of
needle sticks and/or transmission of infectious diseases in connection with the
extraction of bone marrow biopsies and was not disclosed in at least one medical
or scientific journal with national circulation in the United States; (ii) is
not any product manufactured or marketed by Tyco Healthcare or any Affiliate of
Tyco Healthcare (or their respective distributors acting on behalf of Tyco
Healthcare or such Affiliate); and (iii) does not infringe the Base Technology.

II.      REPRESENTATIONS AND WARRANTIES

         2.1. SHPI Representations and Warranties. SHPI hereby represents and
warrants to Tyco Healthcare:

                                       3
<PAGE>

                  (a) that SHPI is not currently a party to any agreement, oral
         or written, which would, in any manner, be inconsistent with the rights
         herein granted to Tyco Healthcare, and shall not enter into any such
         agreement or understanding, oral or written, during the term of this
         Agreement, nor, during the term of this Agreement, directly or
         indirectly, will engage in any activity which would, in any manner, be
         inconsistent with the rights herein granted to Tyco Healthcare,

                  (b) that SHPI is a corporation organized, validly existing and
         in good standing under the laws of Delaware, has all requisite
         corporate power and authority to own and operate its property and to
         carry on its business as now being conducted and is duly qualified and
         in good standing to do business in any of those jurisdictions where it
         is required to be qualified,

                  (c) that the execution and delivery of this Agreement by SHPI
         has been duly and validly authorized by all necessary corporate action
         on the part of SHPI and that (assuming valid execution by Tyco
         Healthcare where applicable and subject to federal bankruptcy law) this
         Agreement is a valid and binding obligation of SHPI enforceable against
         it, and

                   (d) all Products may be lawfully sold in the Territory under
         the appropriate Regulatory Approvals when received by Tyco Healthcare.

         2.2. Tyco Healthcare Representations and Warranties. Tyco Healthcare
hereby represents and warrants to SHPI:

                  (a) that Tyco Healthcare is a limited partnership formed,
         validly existing and in good standing under the laws of Delaware, has
         all requisite power and authority to own and operate its property and
         to carry on its business as now being conducted and is duly qualified
         and in good standing to do business in any of those jurisdictions where
         it is required to be qualified as a result of ownership of property or
         residence of any of its employees or agents,

                                       4
<PAGE>

                  (b) that the execution and delivery of this Agreement by Tyco
         Healthcare has been duly and validly authorized by all necessary
         corporate action on the part of Tyco Healthcare and that (assuming
         valid execution by SHPI and subject to federal bankruptcy law) this
         Agreement is a valid and binding obligation of Tyco Healthcare
         enforceable against it,

                  (c) that Tyco Healthcare is not currently a party to any
         agreement or understanding, oral or written, which would, in any
         manner, be inconsistent with its obligations described herein and shall
         not enter into any such agreement or understanding, oral or written,
         during the term of this Agreement, nor, during the term of this
         Agreement, directly or indirectly, engage in any activity which would,
         in any manner, be inconsistent with its obligations described herein,
         and

                  (d) that it is registered with the Food and Drug
         Administration and authorized to sell the Products.

III.     DISTRIBUTION OF PRODUCTS

         3.1. Appointment of Tyco Healthcare as Exclusive Distributor. Subject
to the terms and conditions hereof, SHPI hereby appoints Tyco Healthcare, and
Tyco Healthcare hereby agrees to act, as an exclusive distributor of Products in
the Field throughout the Territory, for the term of this Agreement. Subject to
Section 4.5 below, SHPI shall not sell any Products, or cause any Products, to
be sold to any person or entity other than Tyco Healthcare, and SHPI shall not
grant to any person or entity other than Tyco Healthcare any license, sublicense
or other rights to manufacture, or have manufactured, any Products at any time
during the term of this Agreement, with the exception of the grant of the right
to manufacture Products to a third party manufacturer approved by Tyco
Healthcare, provided that such third party may only be permitted to manufacture
Products for delivery to Tyco Healthcare pursuant to this Agreement.

         3.2. Tyco Healthcare's Responsibilities. Tyco Healthcare will use
reasonable efforts to promote sales and use of the Products in the Territory.
SHPI hereby expressly acknowledges and agrees that the grant set forth in
Section 3.1 shall be deemed to include a grant to Tyco Healthcare of the right
to sell through any Affiliate of Tyco Healthcare and through distributors of
Tyco Healthcare or any Affiliate of Tyco Healthcare.

                                       5
<PAGE>

         3.3. Device Complaints. Tyco Healthcare shall maintain a system of
product complaint recording and reporting wherein it will record the details of
product complaints it receives. Tyco Healthcare agrees to send copies of the
complaint reports relating to substantial design, technical or quality issues to
SHPI. SHPI shall be responsible for supporting Tyco Healthcare's investigation
of such complaint reports. SHPI shall, within thirty (30) days after SHPI
receives the initial complaint reports from Tyco Healthcare, forward the
findings of any investigations to Tyco Healthcare.

         3.4. Recall. If Tyco Healthcare or SHPI are required by any competent
governmental authority to conduct a recall of any of the Products or either
party determines in its reasonable business judgment a voluntary recall of any
Product is required (and in the instance of a voluntary recall with the consent
of the other party hereto, which neither SHPI nor Tyco Healthcare will
unreasonably withhold), then SHPI shall bear the reasonable expenses related to
the cost and return of the Products.

IV.      TERMS OF PURCHASE AND SALE

         4.1. Purchase Orders. At the beginning of each calendar quarter, Tyco
Healthcare will provide a purchase order for releases during the immediately
succeeding quarter, and a non-binding forecast for each of the further
subsequent three (3) quarters. All purchase orders issued by Tyco Healthcare
hereunder shall be submitted at least 45 days prior to the delivery date. For
purposes of this Agreement, "delivery" shall mean receipt by Tyco Healthcare at
its manufacturing facility. Tyco Healthcare may modify or terminate any purchase
order or release provided that notice is given at least forty-five (45) days
prior to the earliest affected delivery date. All sales and purchases of
Products shall be initiated pursuant to Tyco Healthcare's purchase order for the
same placed with SHPI. All such sales and purchases shall be governed by the
terms and provisions of this Agreement and any such purchase order, provided
that in the event there is a conflict between the terms of this Agreement and
any of the terms of such purchase order, the terms of this Agreement shall
prevail.

         4.2. Selling Price.

                  (a) SHPI and Tyco Healthcare hereby agree that: (i) the
         selling prices by SHPI to Tyco Healthcare for each unit of Product
         shall be for each unit Product in bulk, non-sterile form in accordance
         with applicable Specifications, (ii) the initial selling prices by SHPI
         to Tyco Healthcare of each unit of Product shall be as set forth on
         Exhibit A, which is attached hereto and incorporated herein. All
         payments shall be made in United States dollars.

                  (b)

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       6
<PAGE>

         4.3. Delivery. SHPI shall deliver Products ordered by Tyco Healthcare
in accordance with the terms hereof to Tyco Healthcare's designated facility on
the dates specified by Tyco Healthcare in its purchase orders. SHPI shall use
commercially reasonable efforts to manufacture and deliver all volumes of
Products ordered by Tyco Healthcare, but in no event will SHPI be obligated to
deliver more than 20% over the forecasted volumes for a quarter, as such
forecast is determined in accordance with Section 4.1. Tyco Healthcare shall
provide at least two (2) months notice for increases to the forecast if the
increase in volume is more than 20% of the amount forecasted.

         4.4. Payment and Shipment. Shipment shall be in accordance with Tyco
Healthcare's instructions. SHPI shall invoice Tyco Healthcare for Products at
the time of shipment. All payments shall be due net ** days after receipt of
invoice. All orders shall be in full cases and shipped prepaid FOB Destination
to Tyco Healthcare's Nellcor facility in Tijuana Mexico.

         4.5      Minimum Purchase Requirements.

                  (a) During each Contract Year during the term of this
                  Agreement (or, in the case of the first Contract Year,
                  including the period beginning from the Effective Date through
                  the date of the first Commercial Sale), Tyco Healthcare agrees
                  to place purchase orders with SHPI for a quantity of Products
                  not less than the quantity applicable to such Contract Year,
                  as set forth in Exhibit A, which is attached hereto and
                  incorporated herein (hereinafter referred to as the "Minimum
                  Purchase Requirements").

                  (b) **

                  (c) **

                  (d) **

         4.6 Minimum Order Quantity. The minimum order quantity shall be **
units per SKU of the products identified in Exhibit B.

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       7
<PAGE>

V.       DEVELOPMENT OF PRODUCTS

         5.1 Custom Tooling. SHPI shall develop the tooling and provide the
Project Deliverables set forth in, and in accordance with, Exhibit C-1. All
molds, fixtures, assembly equipment or capital items funded by Tyco Healthcare
pursuant to this Agreement that are used to fabricate or test Products are
hereinafter referred to as "Custom Tooling." SHPI will develop Custom Tooling
with Tyco Healthcare design input that Tyco Healthcare will own for an estimated
cost of **. Included in the capital cost estimate are Class 101 molds of a
"family" configuration. The Custom Tooling will be built in accordance with Tyco
Healthcare's designated specifications, which shall be based upon the Product
Specifications mutually agreed to by the parties. The cost of Custom Tooling is
subject to mutually acceptable adjustment for specification changes requested by
Tyco Healthcare. The Custom Tooling will only be used for Tyco Healthcare
products. SHPI will be responsible for ordinary maintenance of such Custom
Tooling, and will be liable for any loss or damage to such tooling, except
normal wear and tear. SHPI acknowledges and agrees that title to and ownership
of the Custom Tooling shall remain exclusively with Tyco Healthcare at all
times, and SHPI shall keep such Custom Tooling free from any liens or
encumbrances attributable to SHPI or its subcontractors. Upon the expiration or
termination of this Agreement, SHPI shall promptly return the Custom Tooling to
Tyco Healthcare in good operating condition, reasonable wear and tear excepted.
Payment of the Custom Tooling costs will be made in installments, upon
achievement of the milestones listed in Exhibit C-1.

         5.2 Development Project Deliverables. SHPI shall develop the Products
in accordance with Exhibit C-2 attached hereto. Tyco Healthcare shall pay
development costs to SHPI in the total amount of $**, based upon the current
product specifications agreed upon by the parties. If Tyco Healthcare later
materially changes the design or product specifications or requirements, an
increase in the number of R&D hours would result in an additional payment to
SHPI on terms to be mutually agreed upon. SHPI agrees to completely disclose all
relevant

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       8
<PAGE>

Design History Files (DHF). Tyco Healthcare shall pay SHPI for development costs
in quarterly installments of $** and $** for the last quarterly payment,
beginning upon execution of the Agreement. Tyco Healthcare and SHPI shall
conduct quarterly reviews of the project status.

         5.3 Reimbursement. Tyco Healthcare shall reimburse SHPI for all
reasonable out-of-pocket expenses for all prototypes provided at the request of
Tyco Healthcare, with the exception of the SLA prototypes referred to in Section
1.2 of Exhibit C-2, which are to be provided by SHPI for focus groups at no cost
to Tyco Healthcare. SHPI will pay for travel and related expenses for one SHPI
employee to attend a design review prior to DID approval and to a design review
after the focus group study is completed. Tyco Healthcare shall reimburse SHPI
for all other travel and related expenses incurred at Tyco Healthcare's request
or approved by Tyco Healthcare.

         5.4 Resulting Technology Rights. **

         5.5 IFU. Tyco Healthcare will develop an IFU mutually agreed upon by
SHPI and Tyco Healthcare. The IFU will be printed and distributed by Tyco
Healthcare with the Product.

         5.6 Right of First Negotiation. In the event that SHPI elects to (i)
offer to sell to any third party any new product that incorporates any
intellectual property solely owned by SHPI pursuant to Section 5.4 and that is
an improvement of, or otherwise related to, the Products ("New Products") in the
Field, or (ii) offer to license to any third party the right to manufacture and
sell any New Product in the Field, SHPI shall notify Tyco Healthcare of its
intent. Tyco Healthcare shall have the option, at its discretion, to purchase
such New Products in the Field, or license the right to manufacture and sell
such New Products in the Field, from SHPI, on an exclusive basis, at a price,
and on other terms, mutually acceptable to SHPI and Tyco Healthcare. If Tyco
Healthcare elects to exercise such option, SHPI and Tyco Healthcare shall
negotiate in good faith appropriate amendments to this Agreement and/or an
appropriate license agreement for a period of ninety (90) days after SHPI's
receipt of Tyco Healthcare's notice exercising such option (the "Negotiation
Period"). If the parties, acting in good faith, are unable to agree upon
mutually acceptable terms and conditions to such amendment or license prior to
the expiration of the Negotiation Period, SHPI shall be permitted to thereafter
offer to sell New Products, or license the right to manufacture New Products in
the Field, to any third party.
_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       9
<PAGE>

VI.      MANUFACTURE OF PRODUCTS

         6.1. SHPI hereby represents and warrants to Tyco Healthcare:

                  (a) that each of the Products sold to Tyco Healthcare
         hereunder shall be manufactured in accordance with the requirements of
         the Quality Systems Regulations set forth in 21CFR 820;

                  (b) that each of the Products sold to Tyco Healthcare
         hereunder shall be new, free from defects in material and workmanship,
         and shall comply in all respects with the applicable Specifications
         therefor;

                  (c) that each of the Products sold to Tyco Healthcare
         hereunder will not, at the time of delivery to Tyco Healthcare, be
         adulterated or misbranded within the meaning of the Act or within the
         meaning of any jurisdiction in which the definitions of misbranding and
         adulterating are substantially the same as in the Act, nor, following
         FDA approval of Products, will any Product at the time of delivery to
         Tyco Healthcare be an article which may not, under the Act, be
         introduced into interstate commerce, and

                  (d) that SHPI holds good and marketable title to all Products
         and they shall comply with their intended use. 6.2. There are no other
         express or implied warranties, including any warranty of
         merchantability or

fitness for a particular purpose. In the event of any breach of the warranties
set forth in Section 6.1 hereof, SHPI shall, at SHPI's sole cost and expense, at
Tyco Healthcare's option, repair or replace the Products which are
non-conforming or defective within forty-five (45) days of the return of such
item(s) to SHPI or shall credit Tyco Healthcare's account for the purchase price
paid for such item(s) by Tyco Healthcare upon the return thereof by Tyco
Healthcare. All shipping costs incurred incident to any such breach shall be
borne by SHPI.

         6.3. Labeling. Product labeling shall have bar coding in compliance
with the Health Industry Bar Coding standards. No changes may be made to any
Product labeling or packaging without the prior written consent of Tyco
Healthcare.

         6.4 Quality Specifications and Standards. SHPI (and any
sub-contracting/third party manufacturer) performing hereunder, is required to
meet: 1) Tyco Healthcare's product/vendor quality specifications; and 2) Tyco
Healthcare's vendor quality standards. Tyco Healthcare shall have the right to
qualify and approve any subcontractor or third party manufacturer that SHPI

                                       10
<PAGE>

proposes to utilize for purposes of manufacturing Product to be sold to Tyco
Healthcare pursuant to this Agreement. SHPI shall not change the manufacturer of
the Products hereunder without the prior written consent of Tyco Healthcare,
which consent shall not be unreasonably withheld.

         6.5 Specification Changes. Tyco Healthcare shall maintain and control
all master files of the Specifications on its system, and Tyco Healthcare shall
generate all Specification changes implemented pursuant to this Agreement.
Product or process changes which would cause a Product to deviate from the
Specifications shall not be made without the prior written agreement of both
parties. If either party desires a modification to the Specifications, such
party shall give written notice of such proposed modification to the other party
at least ninety (90) days prior to the desired effective date of such
modification. The parties shall negotiate any such requested modification in
good faith, including any related amendments to this Agreement to provide for
adjustments to prices hereunder to reflect any increased or decreased costs of
manufacturing the Products as a result of such modification. If the parties are
unable to agree upon such requested modification and related amendments to this
Agreement within such ninety (90) day period, this Agreement (and the
Specifications) shall continue in effect without change.

         6.6 Inspections. SHPI shall allow Tyco Healthcare to inspect each
facility where the Products are manufactured, during normal business hours and
upon at least ten (10) days' written notice. SHPI shall cause each of its
contracts with its subcontractors or third party manufacturers to expressly
allow Tyco Healthcare to inspect the facilities where the Product are
manufactured.

VII.     TERM AND TERMINATION

         7.1. Term. This Agreement shall remain in full force and effect through
the completion of the third Contract Year (the "Initial Term"). Thereafter, this
Agreement shall be automatically renewed for successive twelve-month terms
unless terminated by Tyco Healthcare by providing written notice to SHPI not
less than one-hundred eighty (180) days prior the expiration of the initial term
or any renewal term. SHPI shall not be permitted to terminate this Agreement,
except as set forth in Sections 4.5 and 7.2.

         7.2. Breach. Except as otherwise provided in this Agreement, in the
event of a material breach or default by either of the parties hereto of any

                                       11
<PAGE>

term or provision of this Agreement on their respective parts to be observed or
performed, the party who is not in breach or default shall have the right to
give the other party notice thereof, whereupon the party receiving such notice
shall have thirty (30) days to cure or cause the cure of such breach or default,
or if the same cannot reasonably be cured within such thirty (30) days, the
party receiving such notice shall, within said period, commence or have caused
the commencement of such cure and thereafter continue to diligently prosecute or
cause the prosecution of cure of the same. If such breach or default is so
cured, this Agreement shall remain in full force and effect. If such breach or
default is not so cured, this Agreement shall immediately terminate upon notice
of termination given to the party which failed to so cure such breach or
default.
         7.3. Effect of Termination or Expiration. Expiration or prior
termination of this Agreement, for any reason, will not release either party
from any liability which at said time it has already incurred to the other
party, nor affect in any way the survival of any rights, duties or obligations
of either party which are expressly stated elsewhere in this Agreement to
survive said expiration or prior termination. Nothing in the immediately
preceding sentence will affect, be construed or operate as a waiver of the right
of the party aggrieved by any breach of this Agreement to be compensated for any
injury or damage resulting therefrom which is incurred before or after such
expiration or termination.

         7.4. Disposition of Inventory. In the event of termination or
expiration of this Agreement for any reason, Tyco Healthcare will retain its
inventory and stock of the Products that has been paid for by Tyco Healthcare.
Tyco Healthcare will be entitled to sell its stock of the Products for a
twenty-four month period following the termination or expiration of this
Agreement, or if such date is later, the date of delivery of any Products to
Tyco Healthcare.

         7.5 Retention of Intellectual Property. Subsequent to termination of
this Agreement, both SHPI and Tyco Healthcare will retain their respective
intellectual property rights as set forth in this Agreement.

         7.6 Manufacture of Products. **

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       12
<PAGE>

VIII.    REGULATORY MATTERS

         8.1. Tyco Healthcare shall prepare and file all applications for
regulatory clearance.

         8.2 SHPI and Tyco Healthcare will mutually agree on a product complaint
protocol.

         8.3 The facility at which Products are manufactured hereunder shall at
all times be registered with the U.S. Food and Drug Administration as a medical
device manufacturer.

         8.4 SHPI shall cause the Products to be manufactured in accordance with
all applicable laws and regulations.

IX.      INDEMNIFICATION

         9.1 SHPI will indemnify and hold Tyco Healthcare harmless for matters
relating to the Products from all claims, lawsuits, losses, liabilities and
damages (including reasonable attorneys' fees) arising out of 1) patent
infringement related only to the safety needle device(s) and device handle(s)
disclosed in the Base Technology; 2) product liability; or 3) any other claim
relating to a defect of the Products, except with respect to claims based solely
upon Tyco Healthcare's misrepresentations regarding the Products. As a condition
precedent to SHPI obligations under this clause, the party charged in such suit
shall promptly notify SHPI and shall not settle the same without SHPI's prior
written approval. If, as a result of any third party infringement claim subject
to this Section 9.1, an injunction is issued or a settlement agreement is
entered into pursuant to which Tyco Healthcare is prohibited from reselling any
Products purchased hereunder, Tyco Healthcare may return all such Products to
SHPI for a full refund.

         9.2 Tyco Healthcare will indemnify and hold SHPI harmless against all
claims, lawsuits, losses, liabilities and damages (including reasonable
attorneys' fees) arising out of the sale and/or distribution of any Products,
including, but not limited to, any misrepresentations by Tyco Healthcare
regarding the Products, but not including claims for which SHPI will indemnify
Tyco Healthcare as identified in Section 9.1. As a condition precedent to Tyco
Healthcare's obligations under this clause, the party charged in such suit shall
promptly notify Tyco Healthcare and shall not settle the same without Tyco
Healthcare's prior written approval.

                                       13
<PAGE>

X.       INFRINGEMENT BY THIRD PARTIES; ISSUANCE OF PATENT CLAIMS

         10.1 SHPI shall use reasonable efforts to prosecute any case of patent
infringement relating to the Base Technology of which SHPI is aware. Tyco
Healthcare shall promptly notify SHPI upon becoming aware of any infringement by
third parties of the Base Technology.

         10.2 **

         10.3 **

XI.      INSURANCE

         Throughout the term of this Agreement, SHPI shall carry Commercial
General Liability Insurance in a minimum amount of $5,000,000 Combined Single
Limit, Bodily Injury and Property Damage, naming Tyco Healthcare as an
additional insured. Insurance to be maintained by SHPI pursuant to the
provisions of this Section shall provide for written notice to Tyco Healthcare
thirty (30) days in advance of any termination or cancellation of such
insurance. Upon the request of Tyco Healthcare from time to time, SHPI shall
provide a certificate evidencing such insurance coverage.

XII.     MISCELLANEOUS

         12.1. Confidential Information. Each party shall hold in confidence any
Confidential Information disclosed by the other or otherwise obtained by such
party as a result of activities contemplated by this Agreement, and each party
shall protect the confidentiality thereof with the same degree of care that it
exercises with respect to its own information of a like nature, but in no event
less than reasonable care. Access to Confidential Information must be restricted
to the receiving party's employees, who, in each case, need to have access to
carry out a permitted use and are bound in writing to maintain the
confidentiality of such Confidential Information. The Confidential Information
and all copies of part or all thereof, shall be and remain the exclusive
property of the disclosing party, and the receiving party shall acquire only
such rights as are expressly set forth under the terms and conditions of this
Agreement and only for so long as such rights are in effect.

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       14
<PAGE>

         12.2. Survival. The following Articles or Sections shall continue in
effect notwithstanding any termination of this Agreement: Article II, Section
3.4, Section 5.4, Article VI, Section 7.3, Section 7.4, Section 7.5, Section
7.6, Article VIII, Article IX, Section 12.1, Section 12.5, and Section 12.7, and
no termination of this Agreement shall relieve any party of liability for a
breach or violation of this Agreement occurring before such termination.

         12.3. No Agency. This Agreement shall not constitute Tyco Healthcare
the agent or legal representative of SHPI for any purpose whatsoever and Tyco
Healthcare shall not hold itself out as an agent of SHPI. This Agreement creates
no relationship of joint venturers, partners, associates, employment or
principal and agent between the parties, and both parties are acting as
independent contractors. Neither party is granted hereby any right or authority
to and shall not attempt to assume or create any obligation or responsibility
for or on behalf of the other party. Neither party shall have any authority to
bind the other party to any contract, whether of employment or otherwise, and
each party shall bear all of its own expenses for its operations, including,
without limitation, the compensation of its employees and salespeople and the
maintenance of its offices, service and warehouse facilities. Each party shall
be solely responsible for its own employees and salespeople and for their acts
and the things done by them.

         12.4. Amendments. This Agreement may be amended, modified or
supplemented only by a written instrument executed by the parties hereto.

         12.5. Waivers. No waiver of any provision of this Agreement, or consent
to any departure from the terms hereof, shall be effective unless the same shall
be in writing and signed by the party waiving or consenting thereto. No failure
on the part of any party to exercise and no delay in exercising, any right or
remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or remedy by such party preclude any other or
further exercise thereof or the exercise of any other right or remedy. The
waiver by any party hereto of a breach of any provision of this Agreement shall
not operate as a waiver of any subsequent breach. All rights and remedies
hereunder are cumulative and are in addition to and not exclusive of any other
rights and remedies provided by law.

         12.6. Performance. Each party hereto acknowledges that money damages
alone will not adequately compensate such party for breach of such party's
obligations under Section 12.1 and, therefore, agrees that in the event of the
breach or threatened breach of any such obligation, in addition to all other

                                       15
<PAGE>

remedies available to the other party, at law, in equity or otherwise, such
other party shall be entitled to injunctive relief compelling specific
performance of, or other compliance with, the terms of such Section.

         12.7. Notices. Any notice or communication given pursuant to this
Agreement by any party to any other party shall be in writing and shall be
sufficiently given if personally delivered, sent by facsimile or other means of
confirmed electronic transmission or sent by a recognized next-day courier
service or by mail, postage prepaid to the parties at the following addresses or
to such other address as either party may hereafter designate to the others by
like notice:

                  (a) if to SHPI, to:

                             Specialized Health Products International, Inc.
                             585 West 500 South
                             Bountiful, Utah 84010
                             Attention: General Counsel
                             Facsimile Number: (801) 298-1759

                  (b) if to Tyco Healthcare, to:

                             Tyco Healthcare Group LP
                             15 Hampshire Street
                             Mansfield, Massachusetts 02048
                             Attention:  Vice President - Marketing -
                             Critical Care Division
                             Facsimile Number:

                  With a copy to:

                             Tyco Healthcare Group LP
                             15 Hampshire Street
                             Mansfield, Massachusetts 02048
                             Attention:  General Counsel
                             Facsimile Number:  (508) 261-8544

         12.8. Expenses. Each party hereto shall pay its own expenses in
connection with the transactions contemplated hereby, whether or not they are
completed.

         12.9. Publicity. All notices to third parties and all other publicity
relating to the transactions contemplated by this Agreement shall be jointly
planned, coordinated and agreed to by the parties except to the extent
disclosures are required by law.

                                       16
<PAGE>

         12.10. Entire Agreement. This Agreement constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof and
supersedes all negotiations, representations, warranties, commitments, offers,
contracts and writings prior to the date hereof.

         12.11. Governing Law. This Agreement shall be governed by and construed
and enforced in accordance with, the substantive laws of the state of Delaware,
without giving effect to its conflicts of law rules.

         12.12. Severability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction. In the event that
any provision of this Agreement shall be determined to be unenforceable by
reason of its extension for too great a period of time or over too large a
geographic area or over too great a range of activities, it shall be interpreted
to extend only over the maximum period of time, geographic area or range of
activities as to which it may be enforceable.

         12.13. Exhibits. All Exhibits mentioned in this Agreement shall be
attached to this Agreement and shall form an integral part hereof. All
capitalized terms defined in this Agreement which are used in any Exhibit shall,
unless the context otherwise requires, have the same meaning therein as given
herein.

         12.14. Counterparts. This Agreement may be executed in two (2) or more
counterparts, including facsimile counterparts, all of which shall be considered
one and the same agreement and shall become effective when two (2) or more
counterparts have been signed by each of the parties and delivered to the other
parties, it being understood that all parties need not sign the same
counterpart.

         12.15. Assignments; Successors and Assigns. Neither party shall
transfer or assign (by operation of law or otherwise) its rights or obligations
under this Agreement without the prior written consent of the other party;
provided, however, that either party may assign this Agreement to an Affiliate
or a successor in ownership of all or substantially all of its business assets
related to the Products whether by sale of assets, merger consolidation or
otherwise. Subject to the preceding sentence, this Agreement shall be binding
upon and inure to the benefit of each of the parties hereto and their permitted
successors and assigns.

                                       17
<PAGE>

         12.16. Force Majeure. Either party shall be excused from delay in
performing or from its failure to perform hereunder to the extent that such
delay or failure results from any cause or causes beyond such party's reasonable
control, including: fire; flood; acts of God; acts of war or terrorism; labor
dispute; riot; compliance with any applicable governmental act, regulation or
request; shortage of labor, materials or manufacturing facilities; and delay by
any supplier in providing materials, parts or services and/or delay by any
carrier due to the aforementioned events. **

         12.17. Captions. The Article and Section headings contained in this
Agreement have been inserted for convenience of reference only and are not and
shall not be deemed or construed as constituting a part of this Agreement.

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

                                       18
<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first above written.

                           SPECIALIZED HEALTH PRODUCTS INTERNATIONAL, INC.

                           By: /s/ Jeffrey M. Soinski
                              ----------------------------------------
                           Name:    Jeffrey M. Soinski
                           Title:   President and CEO

                           TYCO HEALTHCARE GROUP LP

                           By:  /s/ Jim Clemmer
                              ----------------------------------------
                           Name:    Jim Clemmer
                           Title:   Division President

                                       19
<PAGE>

                                    EXHIBIT A

Minimum Purchase Requirements for Exclusivity

-------------------- --------------------------- -------------------------------
          Year            Combined I/J-type                Minimum Unit Volume
                      (Safety and Conventional)            of Safety Products
-------------------- --------------------------- -------------------------------
1st Contract Year                 **                         ** safety units
2nd Contract Year                 **                         ** safety units
3rd Contract Year                 **                         ** safety units
and beyond
-------------------- --------------------------- -------------------------------

Pricing(1):

             -------------------- ------------------- ---------------
                Needle Type          Conventional           Safety
             -------------------- ------------------- ---------------
                 J-type(2)               $**                 $**
                 I-Type(2)               $**                 $**
             -------------------- ------------------- ---------------

(1) Assumes family molds
(2) Design pending clinical focus groups and/or market research. Changes in
    product design that result in increased or decreased raw materials or
    manufacturing costs will result in increased or decreased pricing to Tyco
    Healthcare.

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

<PAGE>

                                   EXHIBIT B*

Conventional Trays
**

Conventional Single Needles
**

Safety Trays
**

Safety Single Needles
**

* SKU reference refers only to the I-Type & J-Type bone needles within the
above-listed SKUs. The Agreement does not include the making of kits or
supplying other ancillary components required for the above-identified kits.

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

<PAGE>

                                   Exhibit C-1
                     TOOLING SPECIFICATIONS AND REQUIREMENTS

         **

_______________
The "**" marks the location of information that has been omitted and filed
separately with the Securities and Exchange Commission pursuant to a request for
confidential treatment.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00070-of-00352.parquet"}]]