Document:

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                                                                   EXHIBIT 10.20

                                    AGREEMENT

      This Agreement (the "Agreement"), dated February 28, 2005, (the "Effective
Date") is between the United States Department of Justice, Criminal Division,
Fraud Section (the "Department"), and Micrus Corporation and its Swiss
subsidiary Micrus S.A. (collectively Micrus).

A.    INTRODUCTION

      1.    During the Department's ongoing criminal investigation into
            potential violations of the Foreign Corrupt Practices Act, 15
            U.S.C.Section.78dd-1, et seq., ("FCPA") relating to certain foreign
            sales transactions and attempted transactions conducted by Micrus in
            various countries including the French Republic, the Republic of
            Turkey, the Kingdom of Spain and the Federal Republic of Germany
            (the "Foreign Transactions"), described in APPENDIX A, and any other
            transactions disclosed in writing to the Department, the Department
            has notified Micrus that, in the Department's view, Micrus, acting
            through certain of its officers, employees, agents and salespeople,
            has violated federal criminal law. The Foreign Transactions involved
            sales or attempted sales by Micrus of medical devices known as
            embolic coils to publicly owned and operated hospitals. A
            description of the Foreign Transactions is set forth in APPENDIX A,
            attached hereto and incorporated by reference. APPENDIX B, also
            attached hereto and incorporated by reference, is a non-public
            document that reveals the identities of certain individuals and
            entities involved in the Foreign Transactions.

            In summary, the Department believes that Micrus, through certain of
            its employees, agents or salespeople, corruptly authorized the
            offer, promise to pay and the payment of money and other things of
            value, and did, thereafter, offer, promise to pay and paid money and
            other things of value, to foreign government officials to influence
            them to purchase medical devices from Micrus.

      2.    As set forth in Section C below, Micrus accepts responsibility for
            the conduct of its employees, agents and salespeople as described in
            APPENDIX A. Micrus agrees that APPENDIX A is materially accurate
            and, as more fully addressed in Section C below, Micrus agrees not
            to contradict APPENDIX A. Micrus also acknowledges that from its
            inception through and including August 2004, Micrus did not have an
            FCPA compliance program in place. Micrus does not endorse, ratify,
            or condone improper conduct and, as set forth below, will take steps
            to prevent such conduct from occurring in the future.

      3.    The Department has determined that entry into the Agreement, as
            opposed to institution of a criminal prosecution, is appropriate
            under the circumstances. These circumstances include (a) Micrus'
            voluntary disclosure to the Department of the conduct involved in
            the Foreign Transactions and related conduct, (b)

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            Micrus' prompt disciplinary action respecting the officers and
            employees primarily responsible for the conduct at issue in the
            Foreign Transactions, (c) Micrus' on-going cooperation with the
            Department in the Department's investigation, and (d) the absence of
            any prior FCPA-related or other criminal history at Micrus.

B.    MUTUAL OBLIGATIONS OF MICRUS AND THE DEPARTMENT

      4.    In exchange for the agreement of the Department as set forth in
            paragraph 5 below, Micrus agrees:

            (a)   to accept responsibility as described in paragraph 2 above and
                  more fully in Section C below;

            (b)   that if Micrus Corporation goes public during the term of this
                  Agreement, Micrus Corporation will disclose the fact of this
                  Agreement and its material terms in its initial public filing
                  with the United States Securities and Exchange Commission
                  ("SEC");

            (c)   to pay to the United States Treasury, within thirty (30)
                  calendar days of the Effective Date, a monetary penalty of $
                  450,000.00;

            (d)   to retain and pay for a Monitor as described more fully in
                  Section D below; and

            (e)   to continue to cooperate with the Department in its
                  investigation of the matters described herein (which
                  cooperation shall include an affirmative duty to fully and
                  truthfully disclose activities that Micrus reasonably believes
                  may violate the FCPA), as more fully described in Section E
                  below.

      5.    In exchange for Micrus' agreement to fulfill the obligations
            described in paragraph 4 above, and subject to the terms and
            conditions set forth below, the Department agrees that, except for
            prosecutions for violations of Title 26 of the United States Code,
            it will not prosecute Micrus under the FCPA for conduct that may
            violate the FCPA based on the Foreign Transactions or any other
            foreign transactions or events disclosed in writing by Micrus to the
            Department on or before the Effective Date. This Agreement applies
            to Micrus Corporation and Micrus S.A. only and does not prevent the
            Department from investigating or prosecuting any other entities or
            individuals.

C.    MICRUS' ACCEPTANCE OF RESPONSIBILITY

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      6.    The obligation of Micrus referenced in paragraphs 2 and 4(a) above
            to accept responsibility means that Micrus shall undertake all of
            the duties imposed upon it in this Section C. The obligation shall
            have no other or additional meaning.

      7.    In the event that the Department, in its sole reasonable discretion,
            determines that Micrus has knowingly, willfully and materially
            breached any provision of this Agreement, then APPENDIX A (as
            supplemented by APPENDIX B) shall be a binding admission by Micrus
            as to the Criminal Division of the Department of Justice and any
            United States Attorney's Office. Further, and irrespective of
            whether Micrus has or has not breached the Agreement, Micrus will
            not, through its present or future directors, officers, employees,
            agents, attorneys or affiliates, make any public statements,
            including statements or positions in litigation in which any United
            States department or agency is a party, contradicting any statement
            of fact set forth in APPENDIX A (standing alone or as interpreted
            through APPENDIX B). Any such contradictory public statement by
            Micrus, its present or future directors, officers, employees,
            agents, attorneys or affiliates shall constitute a breach of this
            Agreement, and Micrus thereafter shall be subject to prosecution as
            set forth in Section F of this Agreement.

      8.    The decision of whether any public statement by any such person
            contradicting a statement contained in APPENDIX A will be imputed to
            Micrus for the purpose of determining whether Micrus has breached
            this Agreement shall be at the sole reasonable discretion of the
            Department. Upon the Department's reaching a determination that such
            a contradictory statement has been made by Micrus, the Department
            shall so notify Micrus in writing and Micrus may avoid a breach of
            this Agreement by publicly repudiating such statement within seven
            (7) business days after written notification by the Department.

      9.    Paragraphs 7 and 8 above are not intended to apply to any statement
            made by any individual in the course of any criminal, regulatory or
            civil case initiated by any governmental or private party against
            such individual, unless such individual has authority to and is
            speaking on behalf of Micrus; provided that, solely for the purposes
            of the Department's determination of whether Micrus has breached
            this Agreement, any statement made by Former Executive A and Former
            Executive B, irrespective of the context, shall not be attributable
            to Micrus. Notwithstanding Micrus' obligation not to contradict any
            statement set forth in APPENDIX A, Micrus may take good faith
            positions in litigation involving any private party, which good
            faith positions shall not be deemed to constitute violations of
            Micrus' obligations pursuant to paragraph 7 above.

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D.    FCPA COMPLIANCE MONITOR

      10.   The obligation of Micrus referenced in paragraph 4(d) above to
            retain and pay for a Monitor means that Micrus shall undertake all
            of the duties imposed upon it in this Section D.

      11.   Micrus agrees that within 45 days from the Effective Date of this
            Agreement, and for a period of at least thirty-six (36) months from
            February 28, 2005, it will retain and pay for an outside,
            independent law firm (the "Monitor"), selected and paid for by
            Micrus and approved by the Department. It shall be a condition of
            the Monitor's retention that the Monitor is independent of Micrus
            and that no attorney-client relationship shall be formed between
            them. If Micrus, the Monitor or any other party or tribunal asserts
            or determines that communications between the Monitor and Micrus are
            protected by the attorney-client privilege or that documents created
            or reviewed by Micrus or the Monitor in connection with the
            Monitor's work are protected by the work product doctrine, then
            Micrus shall waive only as to the Department any protections
            afforded to such communications and documents. Any revocation of
            these waivers shall constitute a breach of this Agreement. The
            sharing of such communications by the Monitor with the Department is
            not intended to constitute a waiver of any privilege under any
            federal or state law that would shield from disclosure to any other
            third party any such communications.

      12.   The Monitor shall:

            (a)   monitor Micrus' compliance with this Agreement;

            (b)   monitor Micrus' implementation of and adherence to policies
                  and procedures relating to FCPA compliance (the "Policies and
                  Procedures");

            (c)   ensure that the Policies and Procedures are appropriately
                  designed to accomplish their goals;

            (d)   report to the Department, on at least a semi-annual basis and
                  between thirty (30) and forty-five (45) calendar days before
                  the end of the Monitor's term, as to Micrus' compliance with
                  this Agreement; and

            (e)   coordinate with the SEC and provide information about Micrus
                  as requested by that agency.

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      13.   Micrus agrees that the Monitor may also disclose its reports, as
            directed by the Department, to any other federal, state or foreign
            law enforcement or regulatory agency in furtherance of an
            investigation of any matters related to the Foreign Transactions and
            any matters relating to any other transaction that has been or is
            discovered by, or brought to the attention of, the Department in
            connection with the Department's investigation of Micrus (the
            "Subject Matters"). During the Monitor's term, no amendments or
            changes will be made to the Policies and Procedures without the
            prior approval of the Monitor.

E.    MICRUS' COOPERATION

      14.   The obligation of Micrus referenced in paragraph 4(e) above to
            cooperate means that Micrus shall undertake all of the duties
            imposed upon it in this Section E.

      15.   During the term of this Agreement, Micrus agrees to cooperate fully
            with the Department, the Monitor, and, as directed by the
            Department, with any other federal, state or foreign law enforcement
            or regulatory agency regarding the Subject Matters.

      16.   The duty to cooperate includes an affirmative duty of full and
            truthful disclosure. Micrus shall truthfully disclose to the
            Department all information respecting the activities of Micrus and
            its present and former directors, officers, employees, agents,
            distributors, attorneys and affiliates relating to the Subject
            Matters about which the Department shall inquire, or which Micrus
            reasonably believes is material to the investigation by the
            Department into the Subject Matters.

      17.   Micrus agrees that its cooperation shall also include, but is not
            limited to, the following:

            (a)   providing reasonable access to Micrus' documents relating to
                  the Subject Matters, and to all directors, officers,
                  employees, agents, salespeople, attorneys and affiliates,
                  whether or not located in the United States, and to Micrus'
                  facilities for that purpose;

            (b)   assembling, organizing and producing, or taking reasonable
                  steps to effectuate the production of, on request from the
                  Department, all documents, records, or other tangible evidence
                  related to the Subject Matters in Micrus' possession, custody,
                  or control in such reasonable format as the Department
                  requests;

            (c)   not asserting a claim of attorney-client or work-product
                  privilege as to any (1) memoranda of witness interviews
                  (including exhibits) and documents created contemporaneously
                  with and related to the Foreign Transactions or with and
                  related to other transactions or events underlying the Subject
                  Matters (including, but not limited to, transactional
                  documents and emails,

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                  but excluding any advice or attorney work-product relating to
                  or given in connection with Micrus' internal investigation or
                  the investigations conducted by the Department), and (2)
                  documents reflecting contemporaneous legal advice given to
                  Micrus in connection with the Foreign Transactions or other
                  transactions or events underlying the Subject Matters
                  (excluding any advice or attorney work-product relating to or
                  given in connection with Micrus' internal investigation or the
                  investigation of the Department). In making production of any
                  such documents, Micrus neither expressly nor implicitly waives
                  its right to assert any privilege that is available under law
                  against persons or entities other than the Department
                  concerning the produced documents or the subject matters
                  thereof;

            (d)   using its reasonable best efforts to make available its
                  present or former directors, officers, employees, agents,
                  salespeople, attorneys and affiliates to provide information
                  and/or testimony related to the Subject Matters as requested,
                  including sworn testimony before a federal grand jury or in
                  federal trials, as well as interviews with federal law
                  enforcement authorities. Cooperation under this sub-paragraph
                  will include identification of witnesses who, to Micrus'
                  knowledge, may have material information regarding the Subject
                  Matters;

            (e)   providing testimony and other information deemed necessary to
                  identify or establish the original location, authenticity, or
                  other evidentiary foundation necessary to admit into evidence
                  documents in any criminal or other proceeding related to the
                  Subject Matters;

            (f)   interfacing with the Monitor in connection with Micrus'
                  implementation of and adherence to the Policies and Procedures
                  and the Monitor's reporting duties described in Section D
                  above.

      18.   With respect to any information, testimony, document, record or
            other tangible evidence provided to the Department pursuant to this
            Agreement, Micrus consents to any and all disclosures to other
            federal, state or foreign law enforcement or regulatory agencies of
            such materials as the Department, in its sole reasonable discretion,
            deems appropriate in furtherance of the Department's investigation
            of the Subject Matters.

      19.   Micrus authorizes the Department to share information from and about
            Micrus with other federal, state or foreign law enforcement or
            regulatory agencies and hereby waives any confidentiality afforded
            to that information by law, agreement or otherwise that would,
            absent authorization by Micrus, prohibit or limit such sharing. No
            further waivers of confidentiality shall be required in that regard.

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F.    BREACH OF THE AGREEMENT

      20.   For a period of twenty-four (24) months from February 28, 2005
            should the Department, in its sole reasonable discretion, determine
            that Micrus has knowingly and willfully given false, incomplete, or
            misleading information under this Agreement, or has committed any
            federal crimes subsequent to the date of this Agreement, or that
            Micrus otherwise has knowingly, willfully and materially breached
            any provision of this Agreement (including, as determined in the
            sole reasonable discretion of the Department, whether Micrus has
            knowingly and willfully failed to perform the duties imposed upon it
            in Section D above respecting the Monitor), the Department may, at
            its sole reasonable discretion, terminate this Agreement. In the
            event of termination, Micrus shall, in the Department's sole
            reasonable discretion, thereafter be subject to prosecution for any
            federal criminal violation, including prosecution for acts subject
            to the release of liability in paragraph 5 above.

      21.   Subject to paragraph 24 below, in the event that the Department, in
            its sole reasonable discretion, determines that Micrus has
            knowingly, willfully and materially breached any provision of this
            Agreement, then APPENDIX A (as supplemented by APPENDIX B) shall be
            a binding admission by Micrus as to the Department only, and (a) the
            Department may use and admit into evidence in any proceeding and for
            any purpose, and without objection by Micrus, APPENDICES A and B,
            (b) all statements made, or documents provided, to the Department,
            by or on behalf of Micrus or any of its current or former directors,
            officers, employees, agents, distributors, attorneys or affiliates
            (including without limitation information obtained by Micrus during
            its investigation or in the course of cooperating with the
            Department under this Agreement), and any testimony given by Micrus
            and any current or former directors, officers, employees, agents,
            distributors, attorneys or affiliates before a grand jury, the
            United States Congress, the SEC or elsewhere, and any leads derived
            from such statements, documents and testimony, shall be admissible
            in evidence in any and all criminal proceedings brought by the
            Department against Micrus, and (c) Micrus shall not assert any claim
            under the United States Constitution, Rule 410 of the Federal Rules
            of Evidence, or any other law, rule or regulation that any such
            statements made, or documents or testimony provided, by or on behalf
            of Micrus or any of its current or former directors, officers,
            employees, agents, distributors, attorneys or affiliates, prior or
            subsequent to this Agreement, or any leads there from, should be
            suppressed.

      22.   Subject to paragraph 9 above, the decision whether conduct and
            statements of any individual will be imputed to Micrus for the
            purpose of determining whether Micrus has willfully and materially
            breached any provision of this Agreement shall be in the sole
            reasonable discretion of the Department.

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G.    WAIVER OF STATUTE OF LIMITATIONS AND CURE OF BREACH

      23.   With respect to any prosecutions under the FCPA for conduct that may
            violate the FCPA based on the Foreign Transactions or any other
            foreign transactions or events disclosed in writing by Micrus to the
            Department on or before the Effective Date which are not time-barred
            by the applicable statute of limitations as of the Effective Date,
            Micrus agrees that the applicable statute of limitation period for
            any such prosecutions shall be tolled for a period of time equal to
            the term of this Agreement (or, in the event of termination pursuant
            to paragraph 20 above, the date of written notice of such
            termination) so that such prosecutions may be commenced against
            Micrus in accordance with this Agreement, notwithstanding the
            expiration of the statute of limitations between the Effective Date
            and expiration of this Agreement (or, in the event of termination
            pursuant to paragraph 20 above, the date of written notice of such
            termination). Micrus' tolling of the statute of limitations is
            knowing and voluntary and in express reliance on the advice of
            counsel.

      24.   Should the Department determine that Micrus has committed a knowing,
            willful and material breach of any provision of this Agreement, the
            Department shall, within a reasonable time, provide written notice
            to Micrus of the alleged breach, and Micrus shall have twenty-one
            (21) calendar days from the date of that written notice in which to
            make a presentation to the Chief of the Fraud Section of the
            Criminal Division of the Department of Justice to demonstrate that
            no breach has occurred, or, to the extent applicable, that the
            breach is not a knowing and willful material breach or has been
            cured. Should Micrus fail to make a presentation to the Chief of the
            Fraud Section of the Criminal Division within the twenty-one (21)
            calendar day period, or such additional period upon which the
            parties agree in writing, it shall be conclusively presumed that
            Micrus is in knowing, willful and material breach of this Agreement.
            The parties further understand and agree that the Chief of the Fraud
            Section's exercise of discretion under this paragraph is not subject
            to review in any court or tribunal outside the Criminal Division of
            the Department of Justice. In the event of a knowing, willful and
            material breach of this Agreement that results in a prosecution of
            Micrus, such prosecution may be premised upon any information
            provided by or on behalf of Micrus to the Department at any time,
            including Micrus' presentation to the Chief of the Fraud Section of
            the Criminal Division, unless otherwise agreed when the information
            was provided.

H.    MERGER OR SALE OF MICRUS

      25.   Micrus agrees that if it sells or merges all or substantially all of
            its business operations as they exist as of the Effective Date of
            this Agreement to or into a single purchaser or group of affiliated
            purchasers during the term of this Agreement, Micrus shall include
            in any contract for sale or merger a provision binding the
            purchaser/successor to the obligations described in this Agreement.

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I.    AGREEMENT BINDING ONLY ON MICRUS AND THE DEPARTMENT

      26.   Except as noted below in this Section I, this Agreement is binding
            on Micrus and the Department, but specifically does not bind any
            other federal agencies, or any state or local law enforcement or
            licensing authorities, although the Department will bring the
            cooperation of Micrus and its compliance with its obligations under
            this Agreement to the attention of federal, state and foreign law
            enforcement or licensing agencies or authorities, if requested by
            Micrus or its attorneys. Furthermore, nothing in this Agreement
            restricts in any way the ability of the Department to proceed
            against any other entity or against any individuals, including but
            not limited to current or former directors, officers, employees,
            agents, distributors, attorneys or affiliates of Micrus.

      27.   This Agreement also does not bind any department or agency of the
            United States Government respecting prosecutions, if any, of Micrus
            or any other entity or individual for violations of Title 26 of the
            United States Code.

J.    TERM OF AGREEMENT

      28.   This Agreement expires three (3) years from the Effective Date;
            provided, that if on the Effective Date the Department, the SEC or
            any other federal enforcement or regulatory agency with which the
            Department has directed Micrus to cooperate is then conducting any
            investigation, prosecution or proceeding relating to the Subject
            Matters, then this Agreement shall expire on the date that any such
            investigation, prosecution or proceeding is finally terminated, as
            determined by the governmental department or agency conducting the
            investigation, prosecution or proceeding.

      29.   Between thirty (30) and sixty calendar days (60) before the
            expiration of this Agreement or at such other time as the parties
            shall agree in writing, Micrus shall submit to the Department a
            written certification that Micrus is in compliance with this
            Agreement.

      30.   Paragraph 5 above shall survive termination of the Agreement, unless
            the Agreement is terminated due to Micrus' knowing, willful and
            material breach pursuant to Section F above. In the event of such a
            breach pursuant to Section F, Paragraph 21 shall survive termination
            of the Agreement.

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K.    NOTICES

      31.   All notices to Micrus Corporation required or permitted by this
            Agreement shall be in writing and shall be given by first class,
            postage prepaid mail and by facsimile transmission, effective in
            each case upon the later of the date of mailing and of facsimile
            transmission, addressed as follows:

                    Micrus Corporation
                    John Kilcoyne, President and CEO
                    610 Palomar Avenue
                    Sunnyvale, CA 94085

                    Facsimile: 408.830.5910

               With a copy to:

                    Michael Shepard
                    Heller Ehrman White & McAuliffe LLP
                    333 Bush Street
                    San Francisco, CA 94104

                    Facsimile: 415.772.6268

      32.   All notices to Micrus S.A. required or permitted by this Agreement
            shall be in writing and shall be given by courier and by facsimile
            transmission, effective in each case upon the later of the date of
            delivery to the courier and of facsimile transmission, addressed as
            follows:

                    Micrus S.A.
                    Eckhard Reitz, Executive Vice President
                    En Chamard 55
                    CH-1442 Montagny-Pres-Yverdon
                    Switzerland

                    Facsimile: +41.24.447.8001

               With a copy to:

                    Michael J. Shepard
                    Heller Ehrman White & McAuliffe LLP
                    333 Bush Street
                    San Francisco, CA 94104

               Facsimile: 415.772.6268

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L.    MISCELLANEOUS

      33.   Micrus Corporation and Micrus S.A. hereby warrant and represent that
            the Board of Directors of each has duly authorized, in a specific
            resolution, the execution and delivery of this Agreement by Micrus
            Corporation and Micrus S.A., and that the person signing the
            Agreement has authority to bind Micrus Corporation and Micrus S.A.,
            respectively. Micrus further agrees that it will deliver
            concurrently with an executed copy of this Agreement a copy of the
            respective requisite corporate resolutions by Micrus Corporation and
            Micrus S.A.'s Board of Directors authorizing them to enter into this
            Agreement.

      34.   This Agreement and APPENDICES A and B constitute the entire
            agreement, and supercede all other prior agreements or
            understandings, both oral and written, among the parties with
            respect to the subject matter hereof.

      35.   This Agreement may not be modified except in writing signed by all
            the parties.

      36.   The headings contained in this Agreement are for reference only and
            shall not affect in any way the meaning or interpretation of this
            Agreement.

      37.   This Agreement may be executed in counterparts, each of which shall
            be deemed an original but all of which taken together shall
            constitute one and the same agreement. The exchange of copies of
            this Agreement and of signature pages by facsimile or electronic
            transmission shall constitute effective execution and delivery of
            this Agreement as to the parties and may be used in lieu of the
            original Agreement for all purposes. Signatures of the parties
            transmitted by facsimile or electronic transmission shall be deemed
            to be their original signatures for all purposes.

                                      JOSHUA R. HOCHBERG
                                      Chief, Fraud Section
                                      Criminal Division
                                      United States Department of Justice

                                      By: /s/ Mark F. Mendelsohn
                                          -------------------------------
                                          MARK F. MENDELSOHN
                                          Deputy Chief

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                           ACKNOWLEDGMENT OF AGREEMENT

                               MICRUS CORPORATION

      On behalf of Micrus Corporation I hereby certify the following:

      I have read the Agreement and carefully reviewed every part of it with
counsel for Micrus Corporation. I understand the terms of the Agreement and
voluntarily agree, on behalf of Micrus Corporation, to its terms. Before signing
the Agreement, I consulted with Micrus Corporation's counsel, who fully advised
me of Micrus Corporation's rights, of possible defenses and of the consequences
of entering into the Agreement. No promises or inducements have been made to me
or Micrus Corporation other than those contained in the Agreement. Furthermore,
no one has threatened or forced me or, to my knowledge, any person authorizing
the Agreement on behalf of Micrus Corporation, to enter into this Agreement. I
am also satisfied with counsel's representation of Micrus Corporation in this
matter.

      I certify that I am an officer of Micrus Corporation and that I have been
duly authorized by Micrus Corporation to execute this Agreement on its behalf.

Micrus Corporation

By: /s/ Robert A. Stern                        Dated: February 28, 2005
    ---------------------------
    Robert A. Stern
    Executive Vice President
    and Chief Financial Officer

                                   MICRUS S.A.

      On behalf of Micrus S.A. I hereby certify the following:

      I have read the Agreement and carefully reviewed every part of it with
counsel for Micrus S.A.. I understand the terms of the Agreement and voluntarily
agree, on behalf of Micrus S.A., to its terms. Before signing the Agreement, I
consulted with Micrus S.A.'s counsel, who fully advised me of Micrus S.A.'s
rights, of possible defenses and of the consequences of entering into the
Agreement. No promises or inducements have been made to me or Micrus S.A. other
than those contained in the Agreement. Furthermore, no one has threatened or
forced me or, to my knowledge, any person authorizing the Agreement on behalf of
Micrus S.A., to enter into this Agreement. I am also satisfied with counsel's
representation of Micrus S.A. in this matter.

      I certify that I am an officer of Micrus S.A. and that I have been duly
authorized by Micrus S.A. to execute this Agreement on its behalf.

Micrus S.A.

By: /s/ Eckhard Reitz                         Dated: February 28, 2005
    ------------------------
    Eckhard Reitz,
    Executive Vice President

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      I certify that I am counsel to Micrus Corporation and Micrus S.A. in this
matter and that I have carefully reviewed the Agreement with the duly authorized
Micrus officers whose signatures appear above.

Heller Ehrman White & McAuliffe LLP

By: /s/ Michael J. Shepard/DR               Dated: February 28, 2005
    -------------------------
    Michael J. Shepard

                                       13<PAGE>

                                                                   Exhibit 10.21

           CONSULTING AGREEMENT, GENERAL RELEASE AND WAIVER OF CLAIMS

             MICRUS ADVISES YOU TO CONSULT WITH AN ATTORNEY BEFORE
           YOU SIGN THIS AGREEMENT AS IT CONTAINS A RELEASE AND WAIVER
                        OF ALL KNOWN AND UNKNOWN CLAIMS

      I, Herbert H. Mertens, for and in consideration of the benefits described
below, which benefits I agree I would not otherwise be entitled to receive,
understand and agree to the terms of this Consulting Agreement, General Release
and Waiver of Claims (the "Agreement") between me and Micrus Corporation
("Micrus" or the "Company"), as set forth herein:

1. TERMINATION OF EMPLOYMENT. I understand that my last day of work with Micrus
   is November 9, 2004, and that after this date, I have no further duties to
   perform for or authority to act on Micrus's behalf except as described in
   this Agreement. This date shall be considered as my termination date (the
   "Termination Date") for all purposes referenced in this Agreement, including
   the date my employment with Micrus is terminated. Accordingly, I understand
   that as of my Termination Date, I will no longer be eligible to participate
   in Micrus's incentive plan programs, bonus programs, option plans, retirement
   or 401(k) plans and I can no longer accrue vacation or PTO benefits.

2. CONSIDERATION:  In consideration for the promises I have made herein, Micrus
   agrees as follows:

   (a) CONSULTING ARRANGEMENT. Micrus agrees to retain me as a consultant for a
   period of four (4) months following the effective date of this agreement as
   set forth in Section 20 below (the "Consulting Period"). This period may be
   extended by a written agreement signed by the Chairman of the Board of Micrus
   and me. During the Consulting Period, I agree to make myself available to
   Micrus management to transfer my former duties and responsibilities,
   including, but not limited to, assisting with vendor and customer relations
   issues, and other matters as reasonably requested by Micrus management.
   During the Consulting Period, I shall be paid on a monthly basis at my final
   salary rate, less applicable taxes and withholdings. The Consulting Period
   and the payments to be made hereunder will not begin until after this
   Agreement becomes enforceable and effective. Although I am free to search for
   alternate employment during the Consulting Period, I agree that I will not
   consult for any other employer, entity, or individual during the Consulting
   Period, and agree that I will devote my time during the Consulting Period
   exclusively to Micrus;

   (b) COBRA REIMBURSEMENT PAYMENTS. As further consideration for the promises I
   have made in this Agreement, Micrus agrees to reimburse me for the cost of my
   COBRA payments up to a maximum of nine hundred dollars per month ($900). I
<PAGE>
   understand that these payments (the "COBRA Payments") are intended to
   reimburse me for the monthly cost under COBRA of continuing my medical and
   dental coverage at my final employee benefit level. Micrus agrees to pay the
   COBRA Payments throughout the Consulting Period. In the event I have not
   obtained alternate employment following the conclusion of the Consulting
   Period, Micrus agrees to continue the COBRA Payments for a period of another
   two (2) months, but under no circumstances, for longer than a total of six
   (6) months. However, Micrus will have no obligation to reimburse me or to
   continue the COBRA payments if I do not elect COBRA benefits or become
   eligible for benefits under another benefit plan. I understand that if I
   become eligible for benefits under another plan before the six-month period
   expires, I am required to notify Micrus within five (5) business days. At the
   conclusion of the six-month period, provided I have not become eligible for
   benefits under another benefit plan, I understand that Micrus's obligation to
   pay for my COBRA benefits will expire, and that if I wish to continue COBRA
   coverage, it will be my responsibility to pay for such coverage. I understand
   that Micrus has or will send information to me about my COBRA rights under
   separate cover and that nothing in this paragraph, or in this Agreement,
   obligates Micrus to enroll me in COBRA or to otherwise take steps to ensure
   that I receive COBRA benefits as it is my responsibility to take all steps
   necessary to enroll in COBRA.

   (c) VESTING OF STOCK OPTIONS. In further consideration of the promises I have
   made in this Agreement, Micrus also agrees to permit me to continue to vest
   all stock options granted to me during the Consulting Period. According to
   Company records and the stock option grants provided to me, as of November 9,
   2004, I have the option to purchase 156,083 shares of Micrus common stock in
   which I have vested under the terms of Micrus's Stock Option Plan. I
   understand that I will have until three months after the date that I no
   longer provide services to the Company to exercise these options.

   (d) CONSIDERATION CONTINGENT ON EXECUTION. I understand and agree that the
   consideration described in subparagraphs (a) through (c) above is contingent
   upon my execution of this Agreement. If I fail to return this Agreement
   within the time period provided or I revoke it within the period specified
   below, I will no longer be eligible for the consideration described in
   subparagraphs (a) through (c).

3. PAYMENT OF ATTORNEYS' FEES: In the event I am required to retain counsel in
   connection with the Department of Justice's ("DOJ") ongoing investigation of
   the Company and its practices, Micrus agrees to indemnify me for all costs
   and attorneys' fees reasonably incurred in connection with this matter as
   required under Company's Indemnification Agreement.

4. RELEASE OF CLAIMS: In exchange for the promises contained in this Agreement
   and to the fullest extent permitted by law, I hereby waive, release and fully
   discharge, and

                                       2
<PAGE>
   agree not to pursue, any and all claims, claims for relief and/or causes of
   action I have or may have as of the date I sign this Agreement against
   Micrus, and/or any of its or their current or former, affiliates,
   subsidiaries, predecessors or successors, and/or any of the current or
   former, officers, directors, shareholders, employees, attorneys, employee
   benefit plans, agents or representatives, successors or assigns of the
   foregoing entities ("Released Parties"), arising out of and/or in any way
   connected with my employment relationship, and/or the termination of that
   employment relationship, and/or with respect to any other claim, matter, or
   event arising prior to the time I execute this Agreement. I recognize and
   agree that such released claims, claims for relief, and/or causes of action
   include, but are not limited to, claims for age discrimination under the
   federal Age Discrimination in Employment Act, as well as claims under Title
   VII of the Civil Rights Act of 1964, the Employee Retirement Income Security
   Act of 1974, the Racketeer Influenced and Corrupt Organizations Act, the
   Worker's Adjustment and Retraining Act, the Americans With Disabilities Act,
   the Rehabilitation Act of 1973, the federal Family and Medical Leave Act, the
   Fair Labor Standards Act, the federal Equal Pay Act, the California Fair
   Employment and Housing Act, the California Labor Code, the California
   Business and Professions Code, the California Family Rights Act, and all
   other laws, whether foreign, federal, state or local of any jurisdiction. I
   understand that this Agreement does not waive rights or claims that may arise
   after I have executed it nor does it prohibit me from filing, or waive my
   right to file, a charge or complaint with the EEOC or any similar state
   agency or from participating in any investigation or proceeding conducted by
   the EEOC or such other agency, and nothing in this Agreement penalizes,
   imposes any condition or adversely limits my right to do so.

5. CIVIL CODE SECTION 1542 WAIVER. As further consideration for the promises
   contained in this Agreement, I expressly agree to waive all rights under
   Section 1542 of the California Civil Code which provides:

   A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
   OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
   IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

   I also agree that this Agreement shall extend and apply to all unknown,
   unsuspected and unanticipated injuries and damages as well as those that are
   now disclosed which arose prior to my execution of this Release.

6. NO OTHER CLAIMS. As further consideration and inducement for this Agreement,
   I agree and represent that I have not filed or otherwise pursued any charges,
   complaints or claims of any nature against Micrus or any Released Party with
   any

                                       3
<PAGE>
   local or federal government agency or court with respect to any matter
   covered by this Agreement and, to the extent permitted by law, I will not do
   so in the future.

7. NO OTHER MONIES OWED. I also acknowledge and agree that as of the Termination
   Date, I have been paid all accrued salary and vacation or PTO and that no
   other compensation is due and owing to me.

8. VOTING OF CAPITAL STOCK. In exchange for the promises contained in this
   Agreement, I agree to vote and act with respect to any shares of Common Stock
   I may hold upon exercise of any options to purchase Common Stock of the
   Company as follows:

   (a) If, at any time after the termination of my employment with the Company,
   the Company's Board of Directors and holders of a majority of the then
   outstanding shares of Preferred Stock of the Company (the "Proposing
   Holders") approve any matter, to include, without limitation, any equity
   grant, financing, merger, sale of assets or other item or transaction of any
   sort, (a "Matter"), then the I shall (i) execute consents and appear in
   person or by proxy at each annual or special meeting of stockholders for the
   purpose of obtaining a quorum and shall vote all of the shares of the
   Company's capital stock owned by me or with respect to which I exercise
   voting or dispositive authority, either in person or by proxy, at such annual
   or special meeting in favor of the Matter and otherwise in a manner so as to
   be consistent and not conflict with, and to implement, the terms of this
   Section 8; (ii) waive any dissenters' rights, appraisal rights or similar
   rights in connection with such Matter; and (iii) if such Matter is a sale of
   the capital stock of the Company,I will agree to sell all shares of the
   Company's capital stock held by me or with respect to which I exercise
   dispositive authority on the terms and conditions contemplated by the Matter.
   I will take all reasonably necessary and desirable actions approved by the
   Proposing Holders in connection with the consummation of such Matter,
   including executing such consents, agreements and instruments and taking such
   other actions as may be necessary to effect the consummation of such Matter.

   (b) In the event that I fail to consent or vote the shares I am entitled to
   vote in the manner set forth above, I shall be deemed immediately upon the
   existence of such breach to have granted the Proposing Holders a proxy to its
   shares to ensure that such shares will be voted as set forth above. I
   acknowledge that each proxy granted hereby, including any successive proxy if
   need be, is given to secure the performance of a duty, is coupled with an
   interest, and shall be irrevocable until the duty is performed.

   (c) I will not grant any proxy or enter into or agree to be bound by any
   voting trust with respect to the shares held by me or over which I have
   voting or dispositive authority nor shall I enter into any stockholder
   agreements or arrangements of any kind with any person with respect to their
   shares inconsistent with the provisions of this Agreement. I will not act,
   for any reason, as a member of a group or in concert

                                       4
<PAGE>
   with any other persons in connection with the acquisition, disposition or
   voting of shares of the Company's capital stock in any manner which is
   inconsistent with the provisions of this Agreement.

9. BINDING ON SUCCESSORS AND HEIRS. I agree that I have executed this Agreement
   on my own behalf and on behalf of any heirs, administrators, representatives,
   attorneys, executors, successors, and assigns ("My Successors") that I now
   have or will have in the future and that my agreement to waive and release
   all known and unknown claims against Micrus binds me and My Successors.

10.RETURN OF MICRUS PROPERTY. I further represent and agree that within 5
   business days of the conclusion of the Consulting Period, I have or will have
   returned to Micrus all equipment, business records and/or other property
   belonging to it which has been or is in my care, custody, possession or
   control. To the extent that I have any travel or other business expenses
   which have not yet been submitted for approval, I understand and agree that I
   must submit documentation to claim those expenses before the conclusion of
   the Consulting Period or within 5 business days thereafter.

11.CONTINUING OBLIGATION TO PROTECT CONFIDENTIAL INFORMATION: I understand and
   agree that notwithstanding the termination of my employment, I am still bound
   by the terms of the Micrus Proprietary Information Agreement and agree to
   comply with my obligations thereunder to protect the Company's confidential
   and/or proprietary information.

12.CONFIDENTIALITY OF AGREEMENT TERMS: I agree that the terms and conditions of
   this Agreement and any and all actions by Micrus in accordance therewith, are
   strictly confidential and, with the exception of my counsel, tax advisor,
   immediate family, or as required by applicable law or the DOJ, have not and
   shall not be disclosed, discussed, or revealed to any other persons,
   entities, or organizations, whether within or outside Micrus, without prior
   written approval of Micrus. I agree to take all reasonable steps necessary to
   ensure that confidentiality is maintained by any of the individuals or
   entities referenced above to whom disclosure is authorized.

13.FUTURE COOPERATION: I also agree that following the conclusion of the
   Consulting Period, I agree to make myself available to Micrus employees who
   may from time to time contact me to obtain information about the status of
   various projects or other issues about which I may have knowledge. I agree to
   cooperate with any reasonable inquiry from company personnel and to use my
   best efforts in responding to such queries from Micrus.

14.NO ADMISSION OF LIABILITY. I specifically understand and agree that by
   entering into this Agreement, Micrus and all others released by this
   Agreement do not admit any liability whatsoever to me or to any other person
   arising out of any claims heretofore

                                       5
<PAGE>
   or hereafter asserted by me and Micrus, for itself and all others released by
   this Agreement expressly denies any and all such liability.

15.ADEQUACY OF CONSIDERATION. I agree and acknowledge that the payments and
   benefits described in Paragraph 2 ("Consideration") constitute consideration
   for this Agreement and its release and waiver of claims, and are benefits to
   which I would not have otherwise been entitled had I not signed this
   Agreement.

16.SEVERABILITY. Should any of the provisions of this Agreement be deemed
   illegal or incomplete or rendered invalid by a court or government agency of
   competent jurisdiction, or should I fail to fulfill my obligations under it,
   the remainder of this Agreement, including my agreement to waive all other
   claims and rights against Micrus, shall, at Micrus's sole option, to the
   extent permitted by applicable law, remain in full force and effect.

17.INTERPRETATION AND GOVERNING LAW. I further agree that this Agreement shall
   be construed as a whole according to its fair meaning. It shall not be
   construed strictly for or against me or Micrus or any of the Released
   Parties. I also agree that the laws of California, without regard to and
   excluding its choice of law provisions, shall govern the validity and
   interpretation of this Agreement.

18.CONSULT WITH AN ATTORNEY: Micrus advises me to consult with an attorney
   about the terms and effect of this Agreement. By signing this Agreement, I
   confirm that I have been given the opportunity to discuss it with the
   attorney of my choice.

19.CONSEQUENCES OF BREACH OF THIS AGREEMENT. In the event I breach this
   Agreement, or I otherwise seek to bring a claim that is waived or released by
   this Agreement, I agree that Micrus will be entitled to recover and obtain
   all relief provided by law or in equity, including the right to recover its
   attorney's fees and costs incurred in defending against any claim brought in
   violation of this Agreement.

20.TIME TO REVIEW AND SIGN AGREEMENT: By my signature below, I acknowledge and
   agree that I have been given the opportunity to review and consider this
   Agreement for twenty-one (21) days from the date I received it. I also
   understand that I may revoke this Agreement within seven days after I sign it
   by notifying the Chairman of the Board of Micrus in writing. I also
   understand that this Agreement is not effective or enforceable and the
   consideration described herein will not be payable until after this seven-day
   revocation period expires. Further, I understand that if I revoke this
   Agreement, I will no longer be eligible for the Consideration described in
   Paragraph 2 of this Agreement.

21.VOLUNTARY RELEASE OF CLAIMS: By signing this Agreement, I confirm that I
   have been given the opportunity to discuss it with the attorney of my choice.
   I also acknowledge that I have read and fully understand the terms, nature,
   and effect of this Agreement

                                       6
<PAGE>
   and its release of claims and that I have executed it voluntarily, free of
   any duress or coercion, and in so doing, I have not relied on any promise,
   representation, or inducement other than those contained in this Agreement.

22.ENTIRE AGREEMENT: This Agreement represents the full and complete agreement
   between me and Micrus regarding its subject matter, and supersedes all prior
   or contemporaneous oral or written agreements or understandings between the
   parties concerning those subjects. This Agreement cannot be changed except in
   a writing signed both by me and the Chairman of the Board of Micrus
   Corporation.

      ACKNOWLEDGED AND AGREED:

      Name  HERBERT H. MERTENS

      Signature /s/ HERBERT H. MERTENS
                ---------------------------------
      Date November 11, 2004

      MICRUS CORPORATION

      By MICHAEL R. HENSON
         ----------------------------------
            Its Chairman

      Date November 9, 2004

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