Document:

exhibit_104.htm

    Exhibit
10.4

     

    December
12, 2008

     

    Robert
Colloton

     

    Re:           OFFER
LETTER

     

    Dear
Robert:

     

    You and
Micrus Endovascular Corporation, a Delaware corporation (the “Company”), signed an
offer letter, dated February 16, 2005 (the "Offer
Letter").  This letter agreement amends the Offer Letter in
order for the cash severance payments under the Offer Letter to be exempt from
or comply with Section 409A of the Internal Revenue Code of 1986, as amended
(the "Code").  Except
as otherwise amended in this letter agreement, the Offer Letter remains in full
force and effect.

     

    Specifically,
this letter agreement deletes the fourth sentence of the second full paragraph
under the "Benefits" heading of the Offer Letter, which provides as
follows:  "In the event the termination of employment is without
cause, you will receive salary continuation for a period of six
months."  (the "Deleted
Language").

     

    The
Deleted Language is replaced in its entirety by the following
language:

     

    "If you
experience an involuntary separation, as defined in Treasury Regulation
1.409A-1(h) (“Separation”), by the
Company for a reason that is other than for Cause (as defined below), death or
Permanent Disability (as defined below), and you satisfy the following
conditions, you will receive certain cash severance, as described
below.  To receive the cash severance, you must  execute
(and do not revoke) a full and complete general release of all claims in a form
provided by the Company without alteration and return all Company property
(collectively, the "Conditions"), in each
case within thirty (30) days after the Separation (the "Deadline").

     

    Provided
that you've satisfied the Conditions within the Deadline, the Company will pay
you your then current base salary for a period of six (6) months (subject to
applicable withholding) according to the Company's standard payroll schedule,
commencing on the Company's first regular payroll date following the last day of
the Deadline.  For purposes of Code Section 409A, each salary
continuation payment under this paragraph is hereby designated as a separate
payment.  Notwithstanding anything stated herein to the contrary, each
of the salary continuation payments provided in connection with your Separation
under this paragraph is intended to be exempt from Code Section 409A pursuant to
Treasury Regulation Section 1.409A-1(b)(9)(iii) and to the extent it is exempt
pursuant to such section, it will in any event be paid no later than the last
day of your second taxable year following the taxable year in which your
Separation has occurred; provided that, to the extent that any of such salary
continuation payments and any other payments paid to you in connection with your
Separation does not qualify to be exempt from Code Section 409A pursuant to
Treasury Regulation Section 1.409A-1(b)(9)(iii) or otherwise exceeds the limit
set forth in Treasury Regulation Section 1.409A-1(b)(9)(iii)(A) or any similar
limit promulgated by the Treasury or the IRS, the portion of the salary
continuation payments that does not qualify or otherwise exceeds such limit, as
determined by the Company in its sole discretion, will be paid by no later than
the fifteenth (15th) day of the third (3rd) month following the end of your
first tax year in which your Separation occurs, or, if later, the fifteenth
(15th) day of the third (3rd) month following the end of the Company's first tax
year in which your Separation occurs, as provided in Treasury Regulation Section
1.409A-1(b)(4).

     

    Notwithstanding
the above, if any of the salary continuation payments described in the previous
paragraph does not qualify for any reason to be exempt from Code Section 409A
pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii) or Treasury
Regulation Section 1.409A-1(b)(4) and you are deemed by the Company at the time
of your Separation to be a “specified employee,” as defined in Code Section
409A, each such salary continuation payment will not be made or commence until
the date which is the first day of the seventh month after your Separation and
the installments that otherwise would have been paid during the first six months
after your Separation will be paid in a lump sum on the first day of the seventh
month after your Separation. Such deferral will only be effected to the extent
required to avoid adverse tax treatment to you, including (without limitation)
the additional twenty percent (20%) federal tax for which you would otherwise be
liable under Section 409A(a)(1)(B) of the Code in the absence of such
deferral.

     

    For all
purposes under this letter agreement, "Cause" means (i) your
gross negligence or willful failure to substantially perform your duties and
responsibilities to the Company or deliberate violation of a Company policy;
(ii) your commission of any act of fraud, embezzlement, dishonesty or any other
willful misconduct that has caused or is reasonably expected to result in
material injury to the Company; (iii) unauthorized use or disclosure of any
proprietary information or trade secrets of the Company or any other party to
whom you owe an obligation of nondisclosure as a result of your relationship
with the Company; or (iv) your willful breach of any of your obligations under
any written agreement or covenant with the Company.  The determination
as to whether you are being terminated for Cause will be made in good faith by
the Company and will be final and binding on you.

     

    For all
purposes under this letter agreement, “Permanent Disability”
means your inability to perform the essential functions of your position with or
without reasonable accommodation for a period of 120 consecutive days because of
your physical or mental impairment."

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    This
amendment to the Offer Letter may be executed in two or more counterparts, each
of which will be deemed an original, but all of which together will constitute
one and the same instrument.  To indicate your acceptance of this
amendment to the Offer Letter, please sign and date this letter in the space
provided below and return it to me.

     

     

    
      
        	 
      	 
      	 
      	
                Very
      truly yours

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
                MICRUS
      ENDOVASCULAR

              
	 
      	 
      	 
      	
                CORPORATION

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	
                By:

              	
                /s/
      John R. Kilcoyne

              
	 
      	 
      	
                Name:

              	
                John
      R. Kilcoyne

              
	 
      	 
      	
                Title:

              	
                CEO

              
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                ACCEPTED
      AND AGREED:

              	 
      	 
      	 
      
	
                ROBERT
      COLLOTON

              	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
                /s/
      Robert C. Colloton

              	 
      	 
      	 
      
	
                (Signature)

              	 
      	 
      	 
      
	
                12/12/2008

              	 
      	 
      	 
      
	
                Dateexhibit_105.htm

    
      Exhibit
10.5

       

      Execution
Version

       

    

     

    First
Amendment to Credit Agreement

     

    This
First Amendment to Credit Agreement (this “Amendment”) is entered into
as of February 3, 2009, between Micrus Endovascular Corporation, a Delaware
corporation (“Borrower”), and Wells Fargo
Bank, National Association (“Bank”).

     

    Recitals

     

    Whereas
Borrower is currently indebted to Bank pursuant to the terms and conditions of
that certain Credit Agreement, dated as of November 5, 2008 (as amended,
modified or supplemented prior to the date hereof, the “Credit Agreement”), between
Borrower and Bank; and

     

    Whereas
Bank and Borrower have agreed to certain changes in the terms and conditions set
forth in the Credit Agreement and have agreed to amend the Credit Agreement to
reflect such changes;

     

    Now,
therefore, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Bank and Borrower hereby agree that the Credit Agreement
shall be amended as follows; provided that nothing
contained herein shall terminate any security interests, guaranties,
subordinations or other documents in favor of Bank, all of which shall remain in
full force and effect unless expressly amended hereby:

     

                              Section 1.Definitions.  Each
capitalized term used but not otherwise defined herein has the meaning assigned
to it in the Credit Agreement.

     

                              Section 2.Amendments to Credit
Agreement.  Subject to Section 3 hereof, the Credit
Agreement is hereby amended as follows:

     

    (a)           The
following definition contained in Section 1.1 of the Credit Agreement is hereby
amended and restated in its entirety to read as follows:

     

    “Maturity Date” means February
1, 2010.

     

    (b)           Section
4.2(a) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

     

    (a)           Compliance.  The
representations and warranties contained herein and in each of the other Loan
Documents executed by Borrower or any Guarantor shall be true in all material
respects on and as of the date of the signing of this Agreement and on the date
of each extension of credit by Bank pursuant hereto, with the same effect as
though such representations and warranties had been made on and as of each such
date (provided, however, that those representations and warranties expressly
referring to another date shall be true and correct in all material respects as
of such date), and on each such date, no Event of Default as defined herein, and
no condition, event or act which with the giving of notice or the passage of
time or both would constitute such an Event of Default, shall have occurred and
be continuing or shall exist, or would result from such proposed extension of
credit or from the application of the proceeds thereof.

     

    (c)           Section
6.3(a) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

     

    (a)           not
later than 20 days after and as of the end of each month, company prepared
monthly consolidated and consolidating unaudited financial statements of
Borrower, which financial statements shall include Borrower’s balance sheet as
of the end of such month and the related statements of Borrower’s income for the
month then ended and any footnotes thereto, all in reasonable detail and
prepared in accordance with GAAP;

     

                              Section
3.Conditions
Precedent.  This Amendment, including, without limitation the
amendments to the Credit Agreement contained herein, shall become effective as
of the date first set forth above (the “Effective Date”) upon
satisfaction of all of the conditions set forth in this Section 3 to the
satisfaction of Bank; provided that, in the event
such conditions are not so satisfied, then this Amendment shall be of no further
force and effect:

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    (a)           Bank
shall have received each of the following, duly executed and delivered by each
of the applicable parties thereto:

     

           (i)this
Amendment; and

     

    (ii)such other documents as Bank may
require under any other Section of this Amendment; and

     

    (b)           No
Event of Default or event which, with the giving of notice, the lapse of time or
both would constitute an Event of Default, shall have occurred and be
continuing; and

     

    (c)           Borrower
shall pay an amendment fee of $18,750 to Bank.

     

                              Section 4.Interpretation.  Except
as specifically provided herein, all terms and conditions of the Credit
Agreement remain in full force and effect, without waiver or
modification.  This Amendment and the Credit Agreement shall be read
together, as one document.  The Recitals hereto, including the terms
defined therein, are incorporated herein by this reference and acknowledged by
Borrower to be true, correct and complete.

     

                              Section 5.Representations, Warranties and
Covenants.  Borrower hereby remakes all representations and
warranties contained in the Credit Agreement and reaffirms all covenants set
forth therein (as amended hereby) as of the date of this
Amendment.  Borrower further certifies that as of the date of this
Amendment there exists no Default or Event of Default.

     

                              Section 6.Further
Assurances.  Borrower will make, execute, endorse, acknowledge,
and deliver any agreements, documents, or instruments, and take any and all
other actions, as may from time to time be reasonably requested by Bank to
perfect and maintain the validity and priority of the liens and security
interests granted to Bank pursuant to the Credit Agreement and the other Loan
Documents and to effect, confirm, or further assure or protect and preserve the
interests, rights, and remedies of Bank under the Credit Agreement (as amended
hereby) and the other Loan Documents.

     

                              Section 7.Counterparts.  This
Amendment may be executed in any number of identical counterparts, any set of
which signed by all the parties hereto shall be deemed to constitute a complete,
executed original for all purposes.  Delivery of an executed
counterpart of a signature page of this Amendment by telefacsimile transmission
shall be as effective as delivery of a manually executed counterpart
hereof.

     

                              Section 8.Governing
Law.  This Amendment shall be governed by and construed in
accordance with the internal laws of the State of California.

     

    [Signatures
follow on next page.]

     

    
      
        
           

           

          

        

         

      

      
         

        
          

        

      

      
         

      

    

     

    In
witness whereof, the parties hereto have caused this Amendment to be executed as
of the date first written above.

     

    
      
        	
                MICRUS
      ENDOVASCULAR CORPORATION

              	 
      	
                WELLS
      FARGO BANK, NATIONAL ASSOCIATION,

              
	
                a
      Delaware corporation

              	 
      	
                a
      national banking association

              
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Gordon Sangster

              	 
      	
                By:

              	
                /s/
      Matt Burke

              
	
                Name:

              	
                Gordon
      Sangster

              	 
      	
                Name:

              	
                Matt
      Burke

              
	
                Title:

              	
                CFO

              	 
      	
                Title:

              	
                Vice
      President

              
	 
      	 
      	 
      	 
      	 
      
	
                By:

              	
                /s/
      Jim Robbins

              	 
      	 
      	 
      
	
                Name:

              	
                Jim
      Robbins

              	 
      	 
      	 
      
	
                Title:

              	
                Vice
      President of Finance

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