Document:

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                                                                 EXHIBIT 10.13

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                           LOAN AND SECURITY AGREEMENT
                       INTRABIOTICS PHARMACEUTICALS, INC.

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                                TABLE OF CONTENTS

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<S>     <C>                                                                         <C>
1.       ACCOUNTING AND OTHER TERMS....................................................1

2.       LOAN AND TERMS OF PAYMENT.....................................................1

         2.1      Credit Extensions....................................................1

         2.2      Interest Rate, Payments..............................................2

         2.4      Additional Costs.....................................................2

3.       CONDITIONS OF LOANS...........................................................2

         3.1      Conditions Precedent to Initial Credit Extension.....................3

         3.2      Conditions Precedent to all Credit Extensions........................3

4.       CREATION OF SECURITY INTEREST.................................................3

         4.1      Grant of Security Interest...........................................3

5.       REPRESENTATIONS AND WARRANTIES................................................3

         5.1      Due Organization and Authorization...................................3

         5.2      Collateral...........................................................4

         5.3      Litigation...........................................................4

         5.4      No Material Adverse Change in Financial Statements...................4

         5.5      Solvency.............................................................4

         5.6      Regulatory Compliance................................................4

         5.7      Subsidiaries.........................................................5

         5.8      Full Disclosure......................................................5

6.       AFFIRMATIVE COVENANTS.........................................................5

         6.1      Government Compliance................................................5

         6.2      Financial Statements, Reports, Certificates..........................5

         6.3      Inventory; Returns...................................................6

         6.4      Taxes................................................................6

         6.5      Insurance............................................................6

         6.6      Primary Accounts.....................................................6

         6.7      Financial Covenants..................................................7

         6.8      Certificate of Deposit...............................................7

         6.9      Further Assurances...................................................7

7.       NEGATIVE COVENANTS............................................................7

         7.1      Dispositions.........................................................7

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                                TABLE OF CONTENTS
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         7.2      Changes in Business, Ownership, Management or
                  Business Locations ..................................................8

         7.3      Mergers or Acquisitions..............................................8

         7.4      Indebtedness.........................................................8

         7.5      Encumbrance..........................................................8

         7.6      Distributions; Investments...........................................8

         7.7      Transactions with Affiliates.........................................9

         7.8      Subordinated Debt....................................................9

         7.9      Compliance...........................................................9

8.       EVENTS OF DEFAULT.............................................................9

         8.1      Payment Default......................................................9

         8.2      Covenant Default.....................................................9

         8.3      Material Adverse Change.............................................10

         8.4      Attachment..........................................................10

         8.5      Insolvency..........................................................10

         8.6      Other Agreements....................................................10

         8.7      Judgments...........................................................10

         8.8      Misrepresentations..................................................10

9.       BANK'S RIGHTS AND REMEDIES...................................................11

         9.1      Rights and Remedies.................................................11

         9.2      Power of Attorney...................................................11

         9.3      Accounts Collection.................................................12

         9.4      Bank Expenses.......................................................12

         9.5      Bank's Liability for Collateral.....................................12

         9.6      Remedies Cumulative.................................................12

         9.7      Demand Waiver.......................................................12

10.      NOTICES......................................................................12

11.      CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER...................................13

12.      GENERAL PROVISIONS...........................................................13

         12.1     Successors and Assigns..............................................13

         12.2     Indemnification.....................................................13

         12.3     Time of Essence.....................................................13

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                                TABLE OF CONTENTS
                                  (CONTINUED)
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         12.4     Severability of Provision...........................................13

         12.5     Amendments in Writing, Integration..................................13

         12.6     Counterparts........................................................14

         12.7     Survival............................................................14

         12.8     Confidentiality.....................................................14

         12.9     Attorneys' Fees, Costs and Expenses.................................14

13.      DEFINITIONS..................................................................14

         13.1     Definitions.........................................................14
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         This LOAN AND SECURITY AGREEMENT dated August 25, 1999, between SILICON
VALLEY BANK ("Bank"), whose address is 3003 Tasman Drive, Santa Clara,
California 95054 and INTRABIOTICS PHARMACEUTICALS, INC. ("Borrower"), whose
address is 1255 Terra Bella Avenue, Mountain View, California 94043 provides the
terms on which Bank will lend to Borrower and Borrower will repay Bank. The
parties agree as follows:

1.        ACCOUNTING AND OTHER TERMS

          Accounting terms not defined in this Agreement will be construed
following GAAP. Calculations and determinations must be made following GAAP. The
term "financial statements" includes the notes and schedules. The terms
"including" and "includes" always mean "including (or includes) without
limitation," in this or any Loan Document. This Agreement shall be construed to
impart upon Bank a duty to act reasonably at all times.

2.        LOAN AND TERMS OF PAYMENT

          2.1 CREDIT EXTENSIONS.

          Borrower will pay Bank the unpaid principal amount of all Credit
Extensions and interest on the unpaid principal amount of the Credit Extensions.

          2.1.1 REVOLVING ADVANCES.

               (a) Through August 25, 2000 (the "Availability End Date"), Bank
will make advances ("Advance" and, collectively, "Advances") not exceeding the
Committed Line. Amounts borrowed under this Section may be repaid and reborrowed
through the Availability End Date.

               (b) Interest accrues from the date of each Advance at the rate in
Section 2.2(a) and is payable monthly until the Availability End Date occurs. On
the Availability End Date Borrower will have the option to (i) continue to have
the Advances accrue interest at the rate in Section 2.2(a) ("Option 1") or (ii)
elect to fix the interest rate at a rate equal to 350 basis point above the 48
month Treasury Yield Percentage ("Option 2").

               (c) Advances outstanding on the Availability End Date are payable
in 48 equal monthly installments of principal plus accrued interest, if Borrower
elects Option 1 (or principal including accrued interest, if Borrower elects
Option 2), beginning on the 25th of each month following the Availability End
Date and ending on August 25, 2004 (the "Maturity Date"). Advances when repaid
may not be reborrowed.

               (d) To obtain an Advance, Borrower must notify Bank (the notice
is irrevocable) by facsimile no later than 3:00 p.m. Pacific time 1 Business Day
before the day on which the Equipment Advance is to be made. The notice in the
form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer
or designee.

                                       1.

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          2.2 INTEREST RATE, PAYMENTS.

               (a) INTEREST RATE. Advances accrue interest on the outstanding
principal balance at a per annum rate of 1.25 percentage points above the Prime
Rate for Option 1 or Option 2 set forth in Section 2.1.1(b). After an Event of
Default, Obligations accrue interest at 5 percent above the rate effective
immediately before the Event of Default. The interest rate increases or
decreases when the Prime Rate changes. Interest is computed on a 360 day year
for the actual number of days elapsed. If Borrower elects Option 2, a Prepayment
Fee shall apply to any prepayment of the Advances.

               (b) PAYMENTS. Interest due on the Advances is payable on the 25th
of each month. Bank may debit any of Borrower's deposit accounts including
Account Number Bank of America _________________ principal and interest payments
owing or any amounts Borrower owes Bank. Bank will promptly notify Borrower when
it debits Borrower's accounts. These debits are not a set-off. Payments received
after 12:00 noon Pacific time are considered received at the opening of business
on the next Business Day. When a payment is due on a day that is not a Business
Day, the payment is due the next Business Day and additional fees or interest
accrue.

          2.3 FEES.

          Borrower will pay:

               (a) FACILITY FEE. A fully earned, non-refundable Facility Fee of
$25,000 due on the Closing Date;

               (b) NON-UTILIZATION FEE. A fully earned, non-refundable
Non-Utilization Fee equivalent to .25% per annum assessed on the average unused
portion of the Committed Line over the preceding three (3) months, payable at
the end of each calendar quarter; and

               (c) BANK EXPENSES. All Bank Expenses (including reasonable
attorneys' fees and reasonable expenses) incurred through and after the date of
this Agreement, are payable when due.

          2.4 ADDITIONAL COSTS.

          If any new law or regulation increases Bank's costs or reduces its
income for any loan, Borrower will pay the increase in cost or reduction in
income or additional expense; provided, however, that Borrower shall not be
liable for any amount attributable to any period before 180 days prior to the
date Bank notifies Borrower of such increased costs. Bank agrees that it will
allocate any increased costs among its customers similarly affected in good
faith and in a manner consistent with Bank's customary practice.

                                       2.

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3.        CONDITIONS OF LOANS

          3.1 CONDITIONS PRECEDENT TO INITIAL CREDIT EXTENSION.

          Bank's obligation to make the initial Credit Extension is subject to
the condition precedent that it receive the agreements, documents and fees it
requires.

          3.2 CONDITIONS PRECEDENT TO ALL CREDIT EXTENSIONS.

          Bank's obligations to make each Credit Extension, including the
initial Credit Extension, is subject to the following:

               (a) timely receipt of any Payment/Advance Form; and

               (b) the representations and warranties in Section 5 must be
          materially true on the date of the Payment/Advance Form and on the
          effective date of each Credit Extension and no Event of Default may
          have occurred and be continuing, or result from the Credit Extension.
          Each Credit Extension is Borrower's representation and warranty on
          that date that the representations and warranties of Section 5 remain
          true.

4.        CREATION OF SECURITY INTEREST

          4.1 GRANT OF SECURITY INTEREST.

          Borrower grants Bank a continuing security interest in all presently
existing and later acquired Collateral to secure all Obligations and performance
of each of Borrower's duties under the Loan Documents. Except for Permitted
Liens, any security interest will be a first priority security interest in the
Collateral. Bank may place a "hold" on any deposit account pledged as
Collateral.

5.        REPRESENTATIONS AND WARRANTIES

          Borrower represents and warrants as follows:

          5.1 DUE ORGANIZATION AND AUTHORIZATION.

          Borrower and each Subsidiary is duly existing and in good standing in
its state of formation and qualified and licensed to do business in, and in good
standing in, any state in which the conduct of its business or its ownership of
property requires that it be qualified, except where the failure to do so could
reasonably be expected to cause a Material Adverse Change.

          The execution, delivery and performance of the Loan Documents have
been duly authorized, and do not conflict with Borrower's formation documents,
nor constitute an event of default under any material agreement by which
Borrower is bound. Borrower is not in default under any agreement to which or by
which it is bound in which the default could cause reasonably be expected to
cause a Material Adverse Change.

                                       3.

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          5.2 COLLATERAL.

          Borrower has good title to the Collateral, free of Liens except
Permitted Liens. All Inventory is in all material respects of good and
marketable quality, free from material defects.

          5.3 LITIGATION.

          Except as shown in the Schedule, there are no actions or proceedings
pending or, to the knowledge of Borrower's Responsible Officers and legal
counsel, threatened by or against Borrower or any Subsidiary in which a likely
adverse decision could reasonably be expected to cause a Material Adverse
Change.

          5.4 NO MATERIAL ADVERSE CHANGE IN FINANCIAL STATEMENTS.

          All consolidated financial statements for Borrower, and any
Subsidiary, delivered to Bank fairly present in all material respects Borrower's
consolidated financial condition and Borrower's consolidated results of
operations. There has not been any material deterioration in Borrower's
consolidated financial condition since the date of the most recent financial
statements submitted to Bank.

          5.5 SOLVENCY.

          The fair salable value of Borrower's assets (including goodwill minus
disposition costs) exceeds the fair value of its liabilities; the Borrower is
not left with unreasonably small capital after the transactions in this
Agreement; and Borrower is able to pay its debts (including trade debts) as they
mature.

          5.6 REGULATORY COMPLIANCE.

          Borrower is not an "investment company" or a company "controlled" by
an "investment company" under the Investment Company Act. Borrower is not
engaged as one of its important activities in extending credit for margin stock
(under Regulations T and U of the Federal Reserve Board of Governors). Borrower
has complied in all material respects with the Federal Fair Labor Standards Act.
Borrower has not violated any laws, ordinances or rules, the violation of which
could reasonably be expected to cause a Material Adverse Change. None of
Borrower's or any Subsidiary's properties or assets has been used by Borrower or
any Subsidiary or, to the best of Borrower's knowledge, by previous Persons, in
disposing, producing, storing, treating, or transporting any hazardous substance
other than legally. Borrower and each Subsidiary has timely filed all required
tax returns and paid, or made adequate provision to pay, all material taxes,
except those being contested in good faith with adequate reserves under GAAP.
Borrower and each Subsidiary has obtained all consents, approvals and
authorizations of, made all declarations or filings with, and given all notices
to, all government authorities that are necessary to continue its business as
currently conducted, except where the failure to do so could not reasonably be
expected to cause a Material Adverse Change.

                                       4.

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          5.7 SUBSIDIARIES.

          Borrower does not own any stock, partnership interest or other equity
securities except for Permitted Investments.

          5.8 FULL DISCLOSURE.

          No written representation, warranty or other statement of Borrower in
any certificate or written statement given to Bank (taken together with all such
written certificates and written statements to Bank) contains any untrue
statement of a material fact or omits to state a material fact necessary to make
the statements contained in the certificates or statements not misleading. It
being recognized by Bank that the projections and forecasts provided by Borrower
in good faith and based upon reasonable assumptions are not viewed as facts and
that actual results during the period or periods covered by such projections and
forecasts may differ from the projected and forecasted results.

6.        AFFIRMATIVE COVENANTS

          Borrower will do all of the following:

          6.1 GOVERNMENT COMPLIANCE.

          Borrower will maintain its and all Subsidiaries' legal existence and
good standing in its jurisdiction of formation and maintain qualification in
each jurisdiction in which the failure to so qualify would reasonably be
expected to cause a material adverse effect on Borrower's business or
operations. Borrower will comply, and have each Subsidiary comply, with all
laws, ordinances and regulations to which it is subject, noncompliance with
which could have a material adverse effect on Borrower's business or operations
or would reasonably be expected to cause a Material Adverse Change.

          6.2 FINANCIAL STATEMENTS, REPORTS, CERTIFICATES.

               (a) Borrower will deliver to Bank: (i) as soon as available, but
no later than 10 days after the last day of each month, a company prepared
consolidated balance sheet and income statement covering Borrower's consolidated
operations during the period, in a form and certified by a Responsible Officer
acceptable to Bank; until such time as Borrower closes its' initial public
offering ("IPO"), then such reporting shall be due quarterly within 5 days of
filing, copies of all statements, reports and notices made available to
Borrower's security holders or to any holders of Subordinated Debt and all
reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange
Commission ("SEC"); ((ii) as soon as available, but no later than 90 days after
the last day of Borrower's fiscal year, audited consolidated financial
statements prepared under GAAP, consistently applied, together with an
unqualified opinion on the financial statements from an independent certified
public accounting firm reasonably acceptable to Bank; (iii) a prompt report of
any legal actions pending or threatened against Borrower or any Subsidiary that
could result in damages or costs to Borrower or any Subsidiary of $100,000 or
more; and (iv) budgets, sales projections, operating plans or other financial
information Bank reasonably requests.

                                       5.
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               (b) Within 10 days after the last day of each month prior to
Borrower's IPO, Borrower will deliver to Bank with the monthly financial
statements a Compliance Certificate signed by a Responsible Officer in the form
of Exhibit C. Following Borrower's IPO, such reporting will be due quarterly,
within 5 days of filing with the SEC.

               (c) At such time as Borrower's unrestricted cash and cash
equivalents falls below $15,000,000, Borrower will provide to Bank within 2 days
after the end of each week, a weekly statement of Borrower's cash position.

               (c) Bank has the right to audit Borrower's Collateral at
Borrower's expense, if an Event of Default has occurred and is continuing.

          NOTWITHSTANDING THE FOREGOING, IF BORROWER IS DELIVERING TO BANK THE
AFOREMENTIONED REPORTING REQUIREMENTS ON A QUARTERLY BASIS, AND BORROWER'S
LIQUIDITY FALLS BELOW (i) 2.5 TIMES THE AGGREGATE OUTSTANDING ADVANCES AND/OR
(ii) NINE (9) MONTHS AVERAGE NET CASH LOSSES, ALL FINANCIAL REPORTING SHALL BE
DUE TO BANK ON A MONTHLY BASIS.

          6.3 INVENTORY; RETURNS.

          Borrower will keep all Inventory in good and marketable condition,
free from material defects. Returns and allowances between Borrower and its
account debtors will follow Borrower's customary practices as they exist at
execution of this Agreement. Borrower must promptly notify Bank of all returns,
recoveries, disputes and claims, that involve more than $50,000.

          6.4 TAXES.

          Borrower will make, and cause each Subsidiary to make, timely payment
of all material federal, state, and local taxes or assessments and will deliver
to Bank, on demand, appropriate certificates attesting to the payment.

          6.5 INSURANCE.

          Borrower will keep its business and the Collateral insured for risks
and in amounts, as Bank may reasonably request. Insurance policies will be in a
form, with companies, and in amounts that are satisfactory to Bank in Bank's
reasonable discretion. All property policies will have a lender's loss payable
endorsement showing Bank as an additional loss payee and all liability policies
will show the Bank as an additional insured and provide that the insurer must
give Bank at least 20 days notice before canceling its policy. At Bank's
request, Borrower will deliver certified copies of policies and evidence of all
premium payments. Proceeds payable under any policy will, at Bank's option, be
payable to Bank on account of the Obligations.

          6.6 PRIMARY ACCOUNTS.

          Borrower will maintain its primary depository and operating accounts
with Bank.

                                       6.

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          6.7 FINANCIAL COVENANTS.

          Borrower will maintain as of the last day of each month, unless
otherwise specified:

                    (i) DEBT/TANGIBLE NET WORTH RATIO. A ratio of Total
Liabilities less Subordinated Debt to Tangible Net Worth plus Subordinated Debt
of not more than 1.00 to 1.00.

                    (ii) TANGIBLE NET WORTH. A Tangible Net Worth of at least
$7,000,000 through November 30, 1999, increasing to $10,000,000 beginning with
the month ending December 31, 1999 and monthly thereafter.

                    (iii) QUARTERLY LOSSES. Borrower shall not report quarterly
losses in excess of $15,000,000.

                    (iv) LIQUIDITY COVERAGE. A Liquidity Coverage of not less
than 2 times the aggregate outstanding Advances, and 6 months Net Cash Losses.

                    (v) DEBT SERVICE COVERAGE (tested Quarterly). At such time
as Borrower maintains a Debt Service Coverage ratio of at least 1.50 to 1.00 for
2 consecutive fiscal quarters, the Liquidity Coverage shall be replaced by a
Debt Service Coverage of at least 1.50 to 1.00.

          6.8 CERTIFICATE OF DEPOSIT.

          Borrower shall maintain a certificate of deposit to be held on account
with Bank in a minimum principal amount equivalent to 105% of the aggregate
outstanding Obligations at such time as Borrower fails to meet any financial
covenants or conditions set forth in Section 6.7 of this Agreement and until
such time as Borrower restores and maintains compliance with the terms of this
Agreement. Provided Borrower maintains such certificate of deposit held on
account with Bank, it shall not be deemed an Event of Default if Borrower does
not comply with any financial covenant set forth in Section 6.7 of this
Agreement.

          6.9 FURTHER ASSURANCES.

          Borrower will execute any further instruments and take further action
as Bank reasonably requests to perfect or continue Bank's security interest in
the Collateral or to effect the purposes of this Agreement.

7.        NEGATIVE COVENANTS

          Borrower will not do any of the following without Bank's prior written
consent, which will not be unreasonably withheld:

          7.1 DISPOSITIONS.

          Convey, sell, lease, transfer or otherwise dispose of (collectively,
"Transfer"), or permit any of its Subsidiaries to Transfer, all or any part of
its business or property, other than Transfers

                                       7.

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(i) of Inventory in the ordinary course of business; or (ii) of worn-out or
obsolete Equipment. Notwithstanding the foregoing, Borrower may, in the ordinary
course of business; or (ii) of worn-out or obsolete Equipment. Notwithstanding
the foregoing, Borrower may, in the ordinary course of business, license its
intellectual property on a non-exclusive basis. Further, Borrower may, in the
ordinary course of business, license its intellectual property on an exclusive
basis, PROVIDED THAT (i) such exclusive licenses only permit the use or practice
of the intellectual property in countries outside of the United States, Canada
and Mexico and (ii) such intellectual property does not account for more than
10% of Borrower's net income.

          7.2 CHANGES IN BUSINESS, OWNERSHIP, MANAGEMENT OR BUSINESS LOCATIONS.

          Engage in or permit any of its Subsidiaries to engage in any business
other than the businesses currently engaged in by Borrower or reasonably related
thereto or have a material change in its ownership or management (other than the
sale of Borrower's equity securities in a public offering or to venture capital
investors approved by Bank) of greater than 25%. Borrower will not, without at
least 30 days prior written notice, relocate its chief executive office or add
any new offices or business locations.

          7.3 MERGERS OR ACQUISITIONS.

          Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with any other Person, or acquire, or permit any of its
Subsidiaries to acquire, all or substantially all of the capital stock or
property of another Person, except where (i) no Event of Default has occurred
and is continuing or would result from such action during the term of this
Agreement and (ii) result in a decrease of more than 25% of Tangible Net Worth.
A Subsidiary may merge or consolidate into another Subsidiary or into Borrower.

          7.4 INDEBTEDNESS.

          Create, incur, assume, or be liable for any Indebtedness, or permit
any Subsidiary to do so, other than Permitted Indebtedness.

          7.5 ENCUMBRANCE.

          Create, incur, or allow any Lien on any of its property, or assign or
convey any right to receive income, including the sale of any Accounts, or
permit any of its Subsidiaries to do so, except for Permitted Liens, or permit
any Collateral not to be subject to the first priority security interest granted
here, subject to Permitted Liens.

          7.6 DISTRIBUTIONS; INVESTMENTS.

          Directly or indirectly acquire or own any Person, or make any
Investment in any Person, other than Permitted Investments, or permit any of its
Subsidiaries to do so. Pay any dividends or make any distribution or payment or
redeem, retire or purchase any capital stock.

                                       8.

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          7.7 TRANSACTIONS WITH AFFILIATES.

          Directly or indirectly enter or permit any material transaction with
any Affiliate except transactions that are in the ordinary course of Borrower's
business, on terms less favorable to Borrower than would be obtained in an arm's
length transaction with a non-affiliated Person.

          7.8 SUBORDINATED DEBT.

          Make or permit any payment on any Subordinated Debt, except under the
terms of the Subordinated Debt, or amend any provision in any document relating
to the Subordinated Debt without Bank's prior written consent.

          7.9 COMPLIANCE.

          Become an "investment company" or a company controlled by an
"investment company," under the Investment Company Act of 1940 or undertake as
one of its important activities extending credit to purchase or carry margin
stock, or use the proceeds of any Credit Extension for that purpose; fail to
meet the minimum funding requirements of ERISA, permit a Reportable Event or
Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the
Federal Fair Labor Standards Act or violate any other law or regulation, if the
violation could reasonable be expected to have a material adverse effect on
Borrower's business or operations or would reasonably be expected to cause a
Material Adverse Change, or permit any of its Subsidiaries to do so.

8.        EVENTS OF DEFAULT

          Any one of the following is an Event of Default:

          8.1 PAYMENT DEFAULT.

          If Borrower fails to pay any of the Obligations within 3 days after
their due date. During the additional period the failure to cure the default is
not an Event of Default (but no Credit Extension will be made during the cure
period);

          8.2 COVENANT DEFAULT.

          If Borrower does not perform any obligation in Section 6 or violates
any covenant in Section 7 or does not perform or observe any other material
term, condition or covenant in this Agreement, any Loan Documents, or in any
agreement between Borrower and Bank and as to any default under a term,
condition or covenant that can be cured, has not cured the default within 10
days after it occurs, or if the default cannot be cured within 10 days or cannot
be cured after Borrower's attempts within 10 day period, and the default may be
cured within a reasonable time, then Borrower has an additional period (of not
more than 30 days) to attempt to cure the default. During the additional time,
the failure to cure the default is not an Event of Default (but no Credit
Extensions will be made during the cure period);

                                       9.

<PAGE>

          8.3 MATERIAL ADVERSE CHANGE.

          (i) If there occurs a material impairment in the perfection or
priority of the Bank's security interest in the Collateral or in the value of
such Collateral (other than normal depreciation) which is not covered by
adequate insurance or (ii) if the Bank determines, based upon information
available to it and in its reasonable judgment, that there is a reasonable
likelihood that Borrower will fail to comply with one or more of the financial
covenants in Section 6 during the next succeeding financial reporting period.

          8.4 ATTACHMENT.

          If any material portion of Borrower's assets is attached, seized,
levied on, or comes into possession of a trustee or receiver and the attachment,
seizure or levy is not removed in 10 days, or if Borrower is enjoined,
restrained, or prevented by court order from conducting a material part of its
business or if a judgment or other claim becomes a Lien on a material portion of
Borrower's assets, or if a notice of lien, levy, or assessment is filed against
any of Borrower's assets by any government agency and not paid within 10 days
after Borrower receives notice. These are not Events of Default if stayed or if
a bond is posted pending contest by Borrower (but no Credit Extensions will be
made during the cure period);

          8.5 INSOLVENCY.

          If Borrower becomes insolvent or if Borrower begins an Insolvency
Proceeding or an Insolvency Proceeding is begun against Borrower and not
dismissed or stayed within 30 days (but no Credit Extensions will be made before
any insolvency Proceeding is dismissed);

          8.6 OTHER AGREEMENTS.

          If there is a default in any agreement between Borrower and a third
party that gives the third party the right to accelerate any Indebtedness
exceeding $100,000 or that could cause a Material Adverse Change;

          8.7 JUDGMENTS.

          If a money judgment(s) in the aggregate of at least $50,000 is
rendered against Borrower and is unsatisfied and unstayed for 10 days (but no
Credit Extensions will be made before the judgment is stayed or satisfied); or

          8.8 MISREPRESENTATIONS.

          If Borrower or any Person acting for Borrower makes any material
misrepresentation or material misstatement now or later in any warranty or
representation in this Agreement or in any writing delivered to Bank or to
induce Bank to enter this Agreement or any Loan Document.

                                      10.

<PAGE>

9.        BANK'S RIGHTS AND REMEDIES

          9.1 RIGHTS AND REMEDIES.

          When an Event of Default occurs and continues Bank may, without notice
or demand, do any or all of the following:

               (a) Declare all Obligations immediately due and payable (but if
an Event of Default described in Section 8.5 occurs all Obligations are
immediately due and payable without any action by Bank);

               (b) Stop advancing money or extending credit for Borrower's
benefit under this Agreement or under any other agreement between Borrower and
Bank;

               (c) Settle or adjust disputes and claims directly with account
debtors for amounts, on terms and in any order that Bank considers advisable;

               (d) Make any payments and do any acts it considers necessary or
reasonable to protect its security interest in the Collateral. Borrower will
assemble the Collateral if Bank requires and make it available as Bank
designates. Bank may enter premises where the Collateral is located, take and
maintain possession of any part of the Collateral, and pay, purchase, contest,
or compromise any Lien which appears to be prior or superior to its security
interest and pay all expenses incurred. Borrower grants Bank a license to enter
and occupy any of its premises, without charge, to exercise any of Bank's rights
or remedies;

               (e) Apply to the Obligations any (i) balances and deposits of
Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or
the account of Borrower;

               (f) Ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale, and sell the Collateral; and

               (g) Dispose of the Collateral according to the Code.

          9.2 POWER OF ATTORNEY.

          Effective only when an Event of Default occurs and continues, Borrower
irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower's name
on any checks or other forms of payment or security; (ii) sign Borrower's name
on any invoice or bill of lading for any Account or drafts against account
debtors; (iii) make, settle, and adjust all claims under Borrower's insurance
policies; (iv) settle and adjust disputes and claims about the Accounts directly
with account debtors, for amounts and on terms Bank determines reasonable; and
(v) transfer the Collateral into the name of Bank or a third party as the Code
permits. Bank may exercise the power of attorney to sign Borrower's name on any
documents necessary to perfect or continue the perfection of any security
interest regardless of whether an Event of Default has occurred. Bank's
appointment as Borrower's attorney in fact, and all of Bank's rights and powers,
coupled with an interest, are irrevocable until all Obligations have been fully
repaid and performed and Bank's obligation to provide Credit Extensions
terminates.

                                      11.

<PAGE>

          9.3 ACCOUNTS COLLECTION.

          When an Event of Default occurs and continues, Bank may notify any
Person owing Borrower money of Bank's security interest in the funds and verify
the amount of the Account. Borrower must collect all payments in trust for Bank
and, if requested by Bank, immediately deliver the payments to Bank in the form
received from the account debtor, with proper endorsements for deposit.

          9.4 BANK EXPENSES.

          If Borrower fails to pay any amount or furnish any required proof of
payment to third persons, Bank may make all or part of the payment or obtain
insurance policies required in Section 6.5, and take any action under the
policies Bank deems prudent. Any amounts paid by Bank are Bank Expenses and
immediately due and payable, bearing interest at the then applicable rate and
secured by the Collateral. No payments by Bank are deemed an agreement to make
similar payments in the future or Bank's waiver of any Event of Default.

          9.5 BANK'S LIABILITY FOR COLLATERAL.

          If Bank complies with reasonable banking practices and Section 9-207
of the Code, it is not liable for: (a) the safekeeping of the Collateral; (b)
any loss or damage to the Collateral; (c) any diminution in the value of the
Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or
other person. Borrower bears all risk of loss, damage or destruction of the
Collateral.

          9.6 REMEDIES CUMULATIVE.

          Bank's rights and remedies under this Agreement, the Loan Documents,
and all other agreements are cumulative. Bank has all rights and remedies
provided under the Code, by law, or in equity. Bank's exercise of one right or
remedy is not an election, and Bank's waiver of any Event of Default is not a
continuing waiver. Bank's delay is not a waiver, election, or acquiescence. No
waiver is effective unless signed by Bank and then is only effective for the
specific instance and purpose for which it was given.

          9.7 DEMAND WAIVER.

          Borrower waives demand, notice of default or dishonor, notice of
payment and nonpayment, notice of any default, nonpayment at maturity,
release, compromise, settlement, extension, or renewal of accounts,
documents, instruments, chattel paper, and guarantees held by Bank on which
Borrower is liable.

10.       NOTICES

          All notices or demands by any party about this Agreement or any other
related agreement must be in writing and be personally delivered or sent by an
overnight delivery service, by certified mail, postage prepaid, return receipt
requested, or by telefacsimile to the addresses set forth at the beginning of
this Agreement. A party may change its notice address by giving the other party
written notice.

                                      12.

<PAGE>

11.       CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

          California law governs the Loan Documents without regard to principles
of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction
of the State and Federal courts in Santa Clara County, California.

          BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED
TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS
WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.
EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

12.       GENERAL PROVISIONS

          12.1 SUCCESSORS AND ASSIGNS.

          This Agreement binds and is for the benefit of the successors and
permitted assigns of each party. Borrower may not assign this Agreement or any
rights under it without Bank's prior written consent which may be granted or
withheld in Bank's discretion. Bank has the right, without the consent of or
notice to Borrower, to sell, transfer, negotiate, or grant participation in all
or any part of, or any interest in, Bank's obligations, rights and benefits
under this Agreement.

          12.2 INDEMNIFICATION.

          Borrower will indemnify, defend and hold harmless Bank and its
officers, employees, and agents against: (a) all obligations, demands, claims,
and liabilities asserted by any other party in connection with the transactions
contemplated by the Loan Documents; and (b) all losses or Bank Expenses
incurred, or paid by Bank from, following, or consequential to transactions
between Bank and Borrower (including reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

          12.3 TIME OF ESSENCE.

          Time is of the essence for the performance of all obligations in this
Agreement.

          12.4 SEVERABILITY OF PROVISION.

          Each provision of this Agreement is severable from every other
provision in determining the enforceability of any provision.

          12.5 AMENDMENTS IN WRITING, INTEGRATION.

          All amendments to this Agreement must be in writing and signed by
Borrower and Bank. This Agreement represents the entire agreement about this
subject matter, and supersedes prior negotiations or agreements. All prior
agreements, understandings, representations, warranties,

                                      13.

<PAGE>

and negotiations between the parties about the subject matter of this Agreement
merge into this Agreement and the Loan Documents.

          12.6 COUNTERPARTS.

          This Agreement may be executed in any number of counterparts and by
different parties on separate counterparts, each of which, when executed and
delivered, are an original, and all taken together, constitute one Agreement.

          12.7 SURVIVAL.

          All covenants, representations and warranties made in this Agreement
continue in full force while any Obligations remain outstanding. The obligations
of Borrower in Section 12.2 to indemnify Bank will survive until all statutes of
limitations for actions that may be brought against Bank have run.

          12.8 CONFIDENTIALITY.

          In handling any confidential information, Bank will exercise the same
degree of care that it exercises for its own proprietary information, but
disclosure of information may be made: (i) to Bank's subsidiaries or affiliates
in connection with their business with Borrower, (ii) to prospective transferees
or purchasers of any interest in the loans, (iii) as required by law,
regulation, subpoena, or other order, (iv) as required in connection with Bank's
examination or audit and (v) as Bank considers appropriate exercising remedies
under this Agreement. Confidential information does not include information that
either: (a) is in the public domain or in Bank's possession when disclosed to
Bank, or becomes part of the public domain after disclosure to Bank; or (b) is
disclosed to Bank by a third party, if Bank does not know that the third party
is prohibited from disclosing the information.

          12.9 ATTORNEYS' FEES, COSTS AND EXPENSES.

          In any action or proceeding between Borrower and Bank arising out of
the Loan Documents, the prevailing party will be entitled to recover its
reasonable attorneys' fees and other reasonable costs and expenses incurred, in
addition to any other relief to which it may be entitled.

13.       DEFINITIONS

          13.1 DEFINITIONS.

          In this Agreement:

          "ACCOUNTS" are all existing and later arising accounts, contract
rights, and other obligations owed Borrower in connection with its sale or lease
of goods (including licensing software and other technology) or provision of
services, all credit insurance, guaranties, other security and all merchandise
returned or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing.

                                      14.

<PAGE>

          "ADVANCE" is defined in Section 2.1.1.

          "AFFILIATE" of a Person is a Person that owns or controls directly or
indirectly the Person, any Person that controls or is controlled by or is under
common control with the Person, and each of that Person's senior executive
officers, directors, partners and, for any Person that is a limited liability
company, that Person's managers and members.

          "AVAILABILITY END DATE" is defined in Section 2.1.1.

          "BANK EXPENSES" are all audit fees and expenses and reasonable costs
and expenses (including reasonable attorneys' fees and expenses) for preparing,
negotiating, administering, defending and enforcing the Loan Documents
(including appeals or Insolvency Proceedings).

          "BORROWER'S BOOKS" are all Borrower's books and records including
ledgers, records regarding Borrower's assets or liabilities, the Collateral,
business operations or financial condition and all computer programs or discs or
any equipment containing the information.

          "BUSINESS DAY" is any day that is not a Saturday, Sunday or a day on
which the Bank is closed.

          "CLOSING DATE" is the date of this Agreement.

          "CODE" is the California Uniform Commercial Code.

          "COLLATERAL" is the property described on EXHIBIT A.

          "COMMITTED LINE" is a Credit Extension of up to $5,000,000.

          "CONTINGENT OBLIGATION" is, for any Person, any direct or indirect
liability, contingent or not, of that Person for (i) any indebtedness, lease,
dividend, letter of credit or other obligation of another such as an obligation
directly or indirectly guaranteed, endorsed, co-made, discounted or sold with
recourse by that Person, or for which that Person is directly or indirectly
liable; (ii) any obligations for undrawn letters of credit for the account of
that Person; and (iii) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other
agreement or arrangement designated to protect a Person against fluctuation in
interest rates, currency exchange rates or commodity prices; but "Contingent
Obligation" does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not
determinable, the maximum reasonably anticipated liability for it determined by
the Person in good faith; but the amount may not exceed the maximum of the
obligations under the guarantee or other support arrangement.

          "CREDIT EXTENSION" is each Advance or any other extension of credit by
Bank for Borrower's benefit.

          "DEBT SERVICE COVERAGE" is, as measured quarterly as of the last day
of each fiscal quarter of Borrower (unless measured monthly), on a consolidated
basis determined in accordance with GAAP, the ratio of (a) an amount equal to
the sum of (i) net income, plus (ii)

                                      15.

<PAGE>

depreciation, amortization of intangible assets and other non-cash charges to
income, and (iii) accrued interest, to (b) an amount equal to the sum of all
scheduled repayments for such quarter (or month, as applicable), including
accrued interest, and mandatory prepayments of principal on account of long-term
Debt.

          "EQUIPMENT" is all present and future machinery, equipment, tenant
improvements, furniture, fixtures, vehicles, tools, parts and attachments in
which Borrower has any interest.

          "ERISA" is the Employment Retirement Income Security Act of 1974, and
its regulations.

          "GAAP" is generally accepted accounting principles.

          "INDEBTEDNESS" is (a) indebtedness for borrowed money or the deferred
price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds,
debentures or similar instruments, (c) capital lease obligations and (d)
Contingent Obligations.

          "INSOLVENCY PROCEEDING" are proceedings by or against any Person under
the United States Bankruptcy Code, or any other bankruptcy or insolvency law,
including assignments for the benefit of creditors, compositions, extensions
generally with its creditors, or proceedings seeking reorganization,
arrangement, or other relief.

          "INVENTORY" is present and future inventory in which Borrower has any
interest, including merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products intended for sale or
lease or to be furnished under a contract of service, of every kind and
description now or later owned by or in the custody or possession, actual or
constructive, of Borrower, including inventory temporarily out of its custody or
possession or in transit and including returns on any accounts or other proceeds
(including insurance proceeds) from the sale or disposition of any of the
foregoing and any documents of title.

          "INVESTMENT" is any beneficial ownership of (including stock,
partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

          "LIEN" is a mortgage, lien, deed of trust, charge, pledge, security
interest or other encumbrance.

          "LIQUIDITY" is, at any date of determination, the sum of Borrower's
cash, cash equivalents, and short term investments, less any cash and cash
equivalent balances that are held in a sinking fund for the retirement of debt
or capital stock or that are held in pledge for another creditor.

          "LOAN DOCUMENTS" are, collectively, this Agreement, any note, or notes
or guaranties executed by Borrower or guarantor, and any other present or future
agreement between Borrower and/or for the benefit of Bank in connection with
this Agreement, all as amended, extended or restated.

          "MATERIAL ADVERSE CHANGE" is defined in Section 8.3.

                                      16.

<PAGE>

          "MATURITY DATE" is defined in Section 2.1.1.

          "NET CASH LOSSES" is with respect to any date determination,
determined on a consolidated basis in accordance with GAAP for Borrower and its
consolidated Subsidiaries, the reduction in cash from operations (excluding
non-recurring charges) during the three months prior to such date of
determination or if the date of determination is the last day of a fiscal
quarter, during the fiscal quarter then ending (or, if monthly reporting is
required, during the three fiscal months ending prior to such date
determination).

          "OBLIGATIONS" are debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, including cash management services,
letters of credit and foreign exchange contracts, if any and including interest
accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrower assigned to Bank.

          "PERMITTED INDEBTEDNESS" is:

               (a) Borrower's indebtedness to Bank under this Agreement or any
other Loan Document;

               (b) Indebtedness existing on the Closing Date and shown on the
Schedule;

               (c) Subordinated Debt;

               (d) Indebtedness to trade creditors incurred in the ordinary
course of business; and

               (e) Indebtedness secured by Permitted Liens.

          "PERMITTED INVESTMENTS" are:

               (a) Investments shown on the Schedule and existing on the Closing
Date; and

               (b) (i) marketable direct obligations issued or unconditionally
guaranteed by the United States or its agency or any State maturing within 1
year from its acquisition, (ii) commercial paper maturing no more than 1 year
after its creation and having the highest rating from either Standard & Poor's
Corporation or Moody's Investors Service, Inc., and (iii) Bank's certificates of
deposit issued maturing no more than 1 year after issue.

          "PERMITTED LIENS" are:

               (a) Liens existing on the Closing Date and shown on the Schedule
or arising under this Agreement or other Loan Documents;

               (b) Liens for taxes, fees, assessments or other government
charges or levies, either not delinquent or being contested in good faith and
for which Borrower maintains adequate reserves on its Books, if they have no
priority over any of Bank's security interests;

                                      17.

<PAGE>

               (c) Purchase money Liens (i) on Equipment acquired or held by
Borrower or its Subsidiaries incurred for financing the acquisition of the
Equipment, or (ii) existing on equipment when acquired, if the Lien is confined
to the property and improvements and the proceeds of the equipment;

               (d) Leases or subleases and licenses or sublicenses granted in
the ordinary course of Borrower's business and any interest or title of a
lessor, licensor or under any lease or license, if the leases, subleases,
licenses and sublicenses permit granting Bank a security interest;

               (e) Liens incurred in the extension, renewal or refinancing of
the indebtedness secured by Liens described in (a) through (c), but any
extension, renewal or replacement Lien must be limited to the property
encumbered by the existing Lien and the principal amount of the indebtedness may
not increase.

          "PERSON" is any individual, sole proprietorship, partnership, limited
liability company, joint venture, company association, trust, unincorporated
organization, association, corporation, institution, public benefit corporation,
firm, joint stock company, estate, entity or government agency.

          "PREPAYMENT FEE" is a fee on any portion of the Obligations with a
fixed interest rate (the "Fixed Obligations") paid before the payment due date.
"Base Interest Rate" means Bank's initial cost of funding the Fixed Obligations.
The Prepayment Fee is calculated as follows: First, Bank determines a "Current
Market Rate" based on what the Bank would receive if it loaned the remaining
amount on the prepayment date in a wholesale funding market matching maturity,
remaining principal and interest amounts and principal and interest payment
dates (the aggregate payments received are the "Current Market Rate Amount").
Bank may select any wholesale funding market rate as the Current Market Rate.
Second, Bank will take the prepayment amount and calculate the present value of
each remaining principal and interest payment which, without prepayment, the
Bank would have received during the term of the Fixed Obligations using the Base
Interest Rate. The sum of the present value calculations is the "Mark to Market
Amount." Third, the Bank will subtract the Mark to Market Amount from the
Current Market Rate Amount. Any amount greater than zero is the Prepayment Fee.

          "PRIME RATE" is Bank's most recently announced "prime rate," even if
it is not Bank's lowest rate.

          "RESPONSIBLE OFFICER" is each of the Chief Executive Officer, the
President, the Chief Financial Officer and the Controller of Borrower.

          "SCHEDULE" is any attached schedule of exceptions.

          "SUBORDINATED DEBT" is debt incurred by Borrower subordinated to
Borrower's debt to Bank (and identified as subordinated by Borrower and Bank).

          "SUBSIDIARY" is for any Person, or any other business entity of which
more than 50% of the voting stock or other equity interests is owned or
controlled, directly or indirectly, by the Person or one or more Affiliates of
the Person.

                                      18.

<PAGE>

          "TANGIBLE NET WORTH" is, on any date, the consolidated total assets of
Borrower and its Subsidiaries minus, (i) any amounts attributable to (a)
goodwill, (b) intangible items such as unamortized debt discount and expense,
Patents, trade and service marks and names, Copyrights and research and
development expenses except prepaid expenses, and (c) reserves not already
deducted from assets, and (ii) Total Liabilities.

          "TOTAL LIABILITIES" is on any day, obligations that should, under
GAAP, be classified as liabilities on Borrower's consolidated balance sheet,
including all Indebtedness, and current portion Subordinated Debt allowed to be
paid, but excluding all other Subordinated Debt.

          "TREASURY YIELD PERCENTAGE" is the average weekly yield (of the week
ending figures) in the most recent Federal Reserve Statistical Release on
actively traded U.S. Treasury obligations of similar maturity to the principal
being repaid or if a Statistical Release is not published, the arithmetic
average (to the nearest .01%) of the per annum yields to maturity for each
Business Day during the week (ending at least two Business Days before the
determination is made) of all actively traded marketable United States Treasury
fixed interest rate securities with a constant maturity of, or not more than 30
days longer or shorter than the average life of the principal and interest
payments that are being prepaid (excluding securities that can be surrendered at
face value to pay Federal estate tax, or which provide for tax benefits to the
holder).

BORROWER:

INTRABIOTICS PHARMACEUTICALS, INC.

By:  /s/ Bruce Fielding
     -----------------------------

Title:   VP & CFO  9/20/99
        --------------------------

BANK:

SILICON VALLEY BANK

By:  /s/  D. Bowman
     -----------------------------

Title:    Vice President
         -------------------------

                                      19.

<PAGE>

                            NEGATIVE PLEDGE AGREEMENT

         This NEGATIVE PLEDGE AGREEMENT is made as of August 25, 1999 by and
between INTRABIOTICS PHARMACEUTICALS, INC. ("Borrower") and SILICON VALLEY BANK
("Bank").

In connection with, among other documents, the Loan and Security Agreement (the
"Loan Documents") being concurrently executed herewith between Borrower and
Bank, Borrower agrees as follows:

         1. Borrower shall not sell, transfer, assign, mortgage, pledge, lease,
grant a security interest in, or encumber any of Borrower's intellectual
property, including, without limitation, the following:

                  a. Any and all copyright rights, copyright applications,
copyright registrations and like protections in each work or authorship and
derivative work thereof, whether published or unpublished and whether or not the
same also constitutes a trade secret, now or hereafter existing, created,
acquired or held;

                  b. All mask works or similar rights available for the
protection of semiconductor chips, now owned or hereafter acquired;

                  c. Any and all trade secrets, and any and all intellectual
property rights in computer software and computer software products now or
hereafter existing, created, acquired or held;

                  d. Any and all design rights which may be available to
Borrower now or hereafter existing, created, acquired or held;

                  e. All patents, patent applications and like protections
including, without limitation, improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same, including without
limitation the patents and patent applications;

                  f. Any trademark and servicemark rights, whether registered or
not, 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 such trademarks, including without limitation;

                  g. Any and all claims for damages by way of past, present and
future infringements of any of the rights included above, with the right, but
not the obligation, to sue for and collect such damages for said use or
infringement of the intellectual property rights identified above;

                  h. All licenses or other rights to use any of the Copyrights,
Patents, Trademarks or Mask Works, and all license fees and royalties arising
from such use to the extent permitted by such license or rights; and

<PAGE>

                  i. All amendments, extensions, renewals and extensions of any
of the Copyrights, Trademarks, Patents, or Mask Works; and

                  j. All proceeds and products of the foregoing, including
without limitation all payments under insurance or any indemnity or warranty
payable in respect of any of the foregoing;

         2. It shall be an event of default under the Loan Documents between
Borrower and Bank if there is a breach of any term of this Negative Pledge
Agreement.

         3. Capitalized terms used but not otherwise defined herein shall have
the same meaning as in the Loan Documents.

BORROWER:

INTRABIOTICS PHARMACEUTICALS, INC.

By:  /s/ Bruce Fielding
     -----------------------------

Name:  B. Fielding
       ---------------------------

Title:  VP & CFO
        --------------------------

BANK:

SILICON VALLEY BANK

By:  /s/ D. Bowman
     -----------------------------

Name:  Debra Bowman
       ---------------------------

Title:  Vice President
        --------------------------<PAGE>

                                                                   EXHIBIT 10.14

                                                                       NO. PHW-1

         THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE SECURITIES LAWS
OF ANY STATE. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY
AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE
ACT AND APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF
COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE ISSUER TO THE
EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

                      WARRANT TO PURCHASE 1,100,000 SHARES
                         OF SERIES H PREFERRED STOCK OF
                       INTRABIOTICS PHARMACEUTICALS, INC.
                         (VOID AFTER DECEMBER 31, 2001)

         This certifies that Investor (Guernsey) Ltd. or its permitted
assigns (the "Holder"), for value received, is entitled to purchase from
INTRABIOTICS PHARMACEUTICALS, INC., a Delaware corporation (the "Company"),
having a place of business 1255 Terra Bella, Mountain View, California, a
maximum of One Million One Hundred Thousand (1,100,000) fully paid and
nonassessable shares of the Company's Series H Preferred Stock ("Preferred
Stock") for cash at a price equal to $5.00 per share (the "Stock Purchase
Price") at any time or from time to time up to and including 5:00 p.m.
(Pacific time) on December 31, 2001 (the "Expiration Date") upon surrender to
the Company at its principal office (or at such other location as the Company
may advise the Holder in writing) of this Warrant properly endorsed with the
Form of Subscription attached hereto duly filled in and signed and upon
payment in cash or wire transfer of the aggregate Stock Purchase Price for
the number of shares for which this Warrant is being exercised determined in
accordance with the provisions hereof. The Stock Purchase Price and the
number of shares purchasable hereunder are subject to adjustment as provided
in Section 3 of this Warrant.

         This Warrant is subject to the following terms and conditions:

         1. EXERCISE; ISSUANCE OF CERTIFICATES; PAYMENT FOR SHARES. This
Warrant is exercisable at the option of the holder of record hereof, at any
time or from time to time, up to the Expiration Date for all or any part of
the shares of Preferred Stock (but not for a fraction of a share) which may
be purchased hereunder. The Company agrees that the shares of Preferred Stock
purchased under this Warrant shall be and are deemed to be issued to the
Holder hereof as the record owner of such shares as of the close of business
on the date on which this Warrant shall have been surrendered, properly
endorsed, the completed, executed Form of Subscription delivered and payment
made for such shares. Certificates for the shares of Preferred Stock so
purchased, together with any other securities or property to which the Holder
hereof is entitled

<PAGE>

upon such exercise, shall be delivered to the Holder hereof by the Company at
the Company's expense within a reasonable time after the rights represented
by this Warrant have been so exercised. In case of a purchase of less than
all the shares which may be purchased under this Warrant, the Company shall
cancel this Warrant and execute and deliver a new Warrant or Warrants of like
tenor for the balance of the shares purchasable under the Warrant surrendered
upon such purchase to the Holder hereof within a reasonable time. Each stock
certificate so delivered shall be in such denominations of Preferred Stock as
may be requested by the Holder hereof and shall be registered in the name of
such Holder.

         2. SHARES TO BE FULLY PAID; RESERVATION OF SHARES. The Company
covenants and agrees that all shares of Preferred Stock which may be issued
upon the exercise of the rights represented by this Warrant will, upon
issuance, be duly authorized, validly issued, fully paid and nonassessable
and free from all preemptive rights of any shareholder and free of all taxes,
liens and charges with respect to the issue thereof. The Company further
covenants and agrees that, during the period within which the rights
represented by this Warrant may be exercised, the Company will at all times
have authorized and reserved, for the purpose of issue or transfer upon
exercise of the subscription rights evidenced by this Warrant, a sufficient
number of shares of authorized but unissued Preferred Stock, or other
securities and property, when and as required to provide for the exercise of
the rights represented by this Warrant. The Company will take all such action
as may be necessary to assure that such shares of Preferred Stock may be
issued as provided herein without violation of any applicable law or
regulation, or of any requirements of any domestic securities exchange upon
which the Preferred Stock may be listed; PROVIDED, HOWEVER, that the Company
shall not be required to effect a registration under federal or state
securities laws with respect to such exercise. The Company will not take any
action which would result in any adjustment of the Stock Purchase Price (as
set forth in Section 3 hereof) (i) if the total number of shares of Preferred
Stock issuable after such action upon exercise of all outstanding warrants,
together with all shares of Preferred Stock then outstanding and all shares
of Preferred Stock then issuable upon exercise of all options and upon the
conversion of all convertible securities then outstanding, would exceed the
total number of shares of Preferred Stock then authorized by the Company's
Certificate of Incorporation, or (ii) if the total number of shares of Common
Stock issuable after such action upon the conversion of all such shares of
Preferred Stock, together with all shares of Common Stock then issuable upon
exercise of all options and upon the conversion of all such shares of
Preferred Stock, together with all shares of Common Stock then outstanding
and all shares of Common Stock then issuable upon exercise of all options and
upon the conversion of all convertible securities then outstanding would
exceed the total number of shares of Common Stock then authorized by the
Company's Certificate of Incorporation.

         3. ADJUSTMENT OF STOCK PURCHASE PRICE AND NUMBER OF SHARES. The
Stock Purchase Price and the number of shares purchasable upon the exercise
of this Warrant shall be subject to adjustment from time to time upon the
occurrence of certain events described in this Section 3. Upon each
adjustment of the Stock Purchase Price, the Holder of this Warrant shall
thereafter be entitled to purchase, at the Stock Purchase Price resulting
from such adjustment, the number of shares obtained by multiplying the Stock
Purchase Price in effect immediately prior to

                                       2.

<PAGE>

such adjustment by the number of shares purchasable pursuant hereto
immediately prior to such adjustment, and dividing the product thereof by the
Stock Purchase Price resulting from such adjustment.

                  3.1 SUBDIVISION OR COMBINATION OF STOCK. In case the
Company shall at any time subdivide its outstanding shares of Preferred Stock
into a greater number of shares, the Stock Purchase Price in effect
immediately prior to such subdivision shall be proportionately reduced, and
conversely, in case the outstanding shares of Preferred Stock of the Company
shall be combined into a smaller number of shares, the Stock Purchase Price
in effect immediately prior to such combination shall be proportionately
increased.

                  3.2 DIVIDENDS IN PREFERRED STOCK, OTHER STOCK, PROPERTY,
RECLASSIFICATION. If at any time or from time to time the Holders of
Preferred Stock (or any shares of stock or other securities at the time
receivable upon the exercise of this Warrant) shall have received or become
entitled to receive, without payment therefor,

                           (a) Preferred Stock or any shares of stock or
other securities which are at any time directly or indirectly convertible
into or exchangeable for Preferred Stock, or any rights or options to
subscribe for, purchase or otherwise acquire any of the foregoing by way of
dividend or other distribution,

                           (b) any cash paid or payable otherwise than as a
cash dividend, or

                           (c) Preferred Stock or additional stock or other
securities or property (including cash) by way of spinoff, split-up,
reclassification, combination of shares or similar corporate rearrangement,
(other than shares of Preferred Stock issued as a stock split or adjustments
in respect of which shall be covered by the terms of Section 3.1 above), then
and in each such case, the Holder hereof shall, upon the exercise of this
Warrant, be entitled to receive, in addition to the number of shares of
Preferred Stock receivable thereupon, and without payment of any additional
consideration therefor, the amount of stock and other securities and property
(including cash in the cases referred to in clause (b) above and this clause
(c)) which such Holder would hold on the date of such exercise had he been
the holder of record of such Preferred Stock as of the date on which holders
of Preferred Stock received or became entitled to receive such shares or all
other additional stock and other securities and property.

                  3.3 REORGANIZATION, RECLASSIFICATION, CONSOLIDATION, MERGER
OR SALE. If any recapitalization, reclassification or reorganization of the
capital stock of the Company, or any consolidation or merger of the Company
with another corporation, or the sale of all or substantially all of its
assets or other transaction shall be effected in such a way that holders of
Preferred Stock shall be entitled to receive stock, securities, or other
assets or property (an "Organic Change"), then, as a condition of such
Organic Change, lawful and adequate provisions shall be made by the Company
whereby the Holder hereof shall thereafter have the right to purchase and
receive (in lieu of the shares of the Preferred Stock of the Company
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby) such

                                       3.

<PAGE>

shares of stock, securities or other assets or property as may be issued or
payable with respect to or in exchange for a number of outstanding shares of
such Preferred Stock equal to the number of shares of such stock immediately
theretofore purchasable and receivable upon the exercise of the rights
represented hereby; PROVIDED, HOWEVER, that in the event the value of the
stock, securities or other assets or property (determined in good faith by
the Board of Directors of the Company) issuable or payable with respect to
one share of the Preferred Stock of the Company immediately theretofore
purchasable and receivable upon the exercise of the rights represented hereby
is in excess of the Stock Purchase Price hereof effective at the time of a
merger and securities received in such reorganization, if any, are publicly
traded, then this Warrant shall expire unless exercised prior to such Organic
Change. In the event of any Organic Change, appropriate provision shall be
made by the Company with respect to the rights and interests of the Holder of
this Warrant to the end that the provisions hereof (including, without
limitation, provisions for adjustments of the Stock Purchase Price and of the
number of shares purchasable and receivable upon the exercise of this
Warrant) shall thereafter be applicable, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise hereof. The
Company will not effect any such consolidation, merger or sale unless, prior
to the consummation thereof, the successor corporation (if other than the
Company) resulting from such consolidation or the corporation purchasing such
assets shall assume by written instrument the obligation to deliver to such
Holder such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such Holder may be entitled to purchase.

                  3.4 CERTAIN EVENTS. If any change in the outstanding
Preferred Stock of the Company or any other event occurs as to which the
other provisions of this Section 3 are not strictly applicable or if strictly
applicable would not fairly protect the purchase rights of the Holder of the
Warrant in accordance with such provisions, then the Board of Directors of
the Company shall make an adjustment in the number and class of shares
available under the Warrant, the Stock Purchase Price or the application of
such provisions, so as to protect such purchase rights as aforesaid. The
adjustment shall be such as will give the Holder of the Warrant upon exercise
for the same aggregate Stock Purchase Price the total number, class and kind
of shares as he would have owned had the Warrant been exercised prior to the
event and had he continued to hold such shares until after the event
requiring adjustment.

                  3.5      NOTICES OF CHANGE.

                           (a) Immediately upon any adjustment in the number
or class of shares subject to this Warrant and of the Stock Purchase Price,
the Company shall give written notice thereof to the Holder, setting forth in
reasonable detail and certifying the calculation of such adjustment.

                           (b) The Company shall give written notice to the
Holder at least 10 calendar days prior to the date on which the Company
closes its books or takes a record for determining rights to receive any
dividends or distributions.

                                       4.

<PAGE>

                           (c) The Company shall give written notice to the
Holder at least 20 calendar days prior to the date on which an Organic Change
shall take place.

                           (d) The Company shall give written notice to the
Holder at least 20 calendar days prior to the Closing of the Initial Public
Offering.

         4. ISSUE TAX. The issuance of certificates for shares of Preferred
Stock upon the exercise of the Warrant shall be made without charge to the
Holder of the Warrant for any issue tax (other than any applicable income
taxes) in respect thereof; PROVIDED, HOWEVER, that the Company shall not be
required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any certificate in a name other than
that of the then Holder of the Warrant being exercised.

         5. CLOSING OF BOOKS. The Company will at no time close its transfer
books against the transfer of any warrant or of any shares of Preferred Stock
issued or issuable upon the exercise of any warrant in any manner which
interferes with the timely exercise of this Warrant.

         6. NO VOTING OR DIVIDEND RIGHTS; LIMITATION OF LIABILITY. Nothing
contained in this Warrant shall be construed as conferring upon the Holder
hereof the right to vote or to consent or to receive notice as a shareholder
of the Company or any other matters or any rights whatsoever as a shareholder
of the Company. No dividends or interest shall be payable or accrued in
respect of this Warrant or the interest represented hereby or the shares
purchasable hereunder until, and only to the extent that, this Warrant shall
have been exercised. No provisions hereof, in the absence of affirmative
action by the holder to purchase shares of Preferred Stock, and no mere
enumeration herein of the rights or privileges of the holder hereof, shall
give rise to any liability of such Holder for the Stock Purchase Price or as
a shareholder of the Company, whether such liability is asserted by the
Company or by its creditors.

         7. WARRANTS TRANSFERABLE. This Warrant is not transferable except to
an affiliate of Holder; PROVIDED that Holder provides written notice of such
transfer to the Company, such transferee agrees to be bound by the
obligations hereunder, and the Company may treat such transferee as the
absolute owner hereof for any purpose and as the person entitled to exercise
the rights represented by this Warrant.

         8. "MARKET-STAND-OFF" AGREEMENT. If requested by the Company, or the
representative of the underwriters of the Initial Public Offering, Holder
agrees not to sell or otherwise transfer or dispose of the shares of
Preferred Stock issuable upon exercise of this Warrant, or the shares of
Common Stock issuable upon conversion thereof, for a period specified by such
representative of the underwriters not to exceed one hundred eighty (180)
days following the date of the final prospectus forming part of the
registration statement filed pursuant to the Initial Public Offering.

                                       5.

<PAGE>

         9. RIGHTS AND OBLIGATIONS SURVIVE EXERCISE OF WARRANT. The rights
and obligations of the Company, of the holder of this Warrant and of the
holder of shares of Preferred Stock issued upon exercise of this Warrant,
shall survive the exercise of this Warrant.

         10. MODIFICATION AND WAIVER. This Warrant and any provision hereof
may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought.

         11. NOTICES. Any notice, request or other document required or
permitted to be given or delivered to the holder hereof or the Company shall
be delivered or shall be sent by certified mail, postage prepaid, to each
such holder at its address as shown on the books of the Company or to the
Company at the address indicated therefor in the first paragraph of this
Warrant or such other address as either may from time to time provide to the
other.

         12. BINDING EFFECT ON SUCCESSORS. This Warrant shall be binding upon
any corporation succeeding the Company by merger, consolidation or
acquisition of all or substantially all of the Company's assets. All of the
obligations of the Company relating to the Preferred Stock issuable upon the
exercise of this Warrant shall survive the exercise and termination of this
Warrant. All of the covenants and agreements of the Company shall inure to
the benefit of the successors and assigns of the holder hereof.

         13. DESCRIPTIVE HEADINGS AND GOVERNING LAW. The description headings
of the several sections and paragraphs of this Warrant are inserted for
convenience only and do not constitute a part of this Warrant. This Warrant
shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the laws of the State of California.

         14. LOST WARRANTS. The Company represents and warrants to the Holder
hereof that upon receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction, or mutilation of this Warrant and, in the
case of any such loss, theft or destruction, upon receipt of an indemnity
reasonably satisfactory to the Company, or in the case of any such mutilation
upon surrender and cancellation of such Warrant, the Company, at its expense,
will make and deliver a new Warrant, of like tenor, in lieu of the lost,
stolen, destroyed or mutilated Warrant.

         15. FRACTIONAL SHARES. No fractional shares shall be issued upon
exercise of this Warrant. The Company shall, in lieu of issuing any
fractional share, pay the holder entitled to such fraction a sum in cash
equal to such fraction multiplied by the then effective Stock Purchase Price.

                      [This Space Intentionally Left Blank]

                                       6.

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed by its officers, thereunto duly authorized this 15th day of
October, 1999.

                                      INTRABIOTICS PHARMACEUTICALS, INC.,
                                      a Delaware corporation

                                      By: /s/ Kenneth Kelley
                                         --------------------------------------
                                           Kenneth Kelley, President and CEO

HOLDER:

By:  [illegible]
     ------------------------------------------------

     ------------------------------------------------
     Printed Name and Title

Address:
        ------------------
        ------------------
        ------------------

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