Document:

<PAGE>

                                                                   EXHIBIT 10.18

                               SECURITY AGREEMENT

Terms used (but not defined) herein and defined in the California Uniform
Commercial Code ("UCC") have the meanings ascribed to them in the UCC.

      1. GRANT OF SECURITY INTEREST. For valuable consideration, the undersigned
MICRUS CORPORATION ("Debtor") hereby grants and transfers to WELLS FARGO BANK,
NATIONAL ASSOCIATION ("Bank") a security interest in all of the property of
Debtor described as follows (collectively, the "Collateral"):

      (a) all accounts, deposit accounts, contract rights, chattel paper,
(whether electronic or tangible) instruments, promissory notes, documents,
general intangibles, payment intangibles, software, letter of credit rights,
health-care insurance receivables and other rights to payment of every kind now
existing or at any time hereafter arising;

      (b) all inventory, goods held for sale or lease or to be furnished under
contracts for service, or goods so leased or furnished, raw materials, component
parts, work in process and other materials used or consumed in Debtor's
business, now or at any time hereafter owned or acquired by Debtor, wherever
located, and all products thereof, whether in the possession of Debtor, any
warehousemen, any bailee or any other person, or in process of delivery, and
whether located at Debtor's places of business or elsewhere;

      (c) all warehouse receipts, bills of sale, bills of lading and other
documents of every kind (whether or not negotiable) in which Debtor now has or
at any time hereafter acquires any interest, and all additions and accessions
thereto, whether in the possession or custody of Debtor, any bailee or any other
person for any purpose;

      (d) all money and property heretofore, now or hereafter delivered to or
deposited with Bank or otherwise coming into the possession, custody or control
of Bank (or any agent or bailee of Bank) in any manner or for any purpose
whatsoever during the existence of this Agreement and whether held in a general
or special account or deposit for safekeeping or otherwise;

      (e) all right, title and interest of Debtor under licenses, guaranties,
warranties, management agreements, marketing or sales agreements, escrow
contracts, indemnity agreements, insurance policies, service or maintenance
agreements, supporting obligations and other similar contracts of every kind in
which Debtor now has or at any time hereafter shall have an interest;

      (f) all goods, tools, machinery, furnishings, furniture and other
equipment and fixtures of every kind now existing or hereafter acquired, and all
improvements, replacements, accessions and additions thereto and embedded
software included therein, whether located on any property owned or leased by
Debtor or elsewhere, including without limitation, any of the foregoing now or
at any time hereafter located at or installed on the land or in the improvements
at any of the real property owned or leased by Debtor, and all such goods after
they have been severed and removed from any of said real property; and

      (g) all motor vehicles, trailers, mobile homes, manufactured homes, boats,
other rolling stock and related equipment of every kind now existing or
hereafter acquired and all

                                      -1-
<PAGE>

additions and accessories thereto, whether located on any property owned or
leased by Debtor or elsewhere;

together with whatever is receivable or received when any of the foregoing or
the proceeds thereof are sold, leased, collected, exchanged or otherwise
disposed of, whether such disposition is voluntary or involuntary, including
without limitation, all rights to payment, including returned premiums, with
respect to any insurance relating to any of the foregoing, and all rights to
payment with respect to any claim or cause of action affecting or relating to
any of the foregoing (collectively, "Proceeds").

      Notwithstanding the foregoing, all rights, priorities and privileges of
Borrower related to intellectual property, whether arising under United States,
multinational, or foreign laws, or otherwise, including patents, copyrights,
inventions, know-how, trademarks, trade secrets and any applications and
licenses of the foregoing, domain names and websites (collectively "Intellectual
Property") and any proceeds and products of any Intellectual Property, including
insurance and indemnity payments and claims for damages shall be deemed not to
constitute Collateral, provided, however, that proceeds of Intellectual
Property, to the extent that such proceeds comprise amounts payable to Debtor by
buyers or lessees of Borrower's inventory (whether characterized as the purchase
price, rental payments, license fees, royalties or otherwise) shall be deemed to
constitute Collateral.

      2. OBLIGATIONS SECURED. The obligations secured hereby are the payment and
performance of: (a) all present and future indebtedness of Debtor to Bank; (b)
all obligations of Debtor and rights of Bank under this Agreement; and (c) all
present and future obligations of Debtor to Bank of other kinds. The word
"Indebtedness" is used herein in its most comprehensive sense and includes any
and all advances, debts, obligations and liabilities of Debtor, or any of them,
heretofore, now or hereafter made, incurred or created, whether voluntary or
involuntary and however arising, whether due or not due, absolute or contingent,
liquidated or unliquidated, determined or undetermined, and whether Debtor may
be liable individually or jointly with others, or whether recovery upon such
indebtedness may be or hereafter becomes unenforceable.

      3. TERMINATION. This Agreement will terminate upon the performance of all
obligations of Debtor to Bank, including without limitation, the payment of all
indebtedness of Debtor to Bank, and the termination of all commitments of Bank
to extend credit to Debtor, existing at the time Bank receives written notice
from Debtor or the termination or this Agreement.

      4. OBLIGATIONS OF BANK. Bank has no obligation to make any loans
hereunder. Any money received by Bank in respect of the Collateral may be
deposited, at Bank's option, into a non-interest bearing account over which
Debtor shall have no control, and the same shall, for all purposes, be deemed
Collateral hereunder.

      5. REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants to Bank
that (a) Debtor's legal name is exactly as set forth on the first page of this
Agreement, and all of Debtor's organizational documents or agreements delivered
to Bank are complete and accurate in every respect; (b) Debtor is the owner and
has possession or control of the Collateral and Proceeds; (c) Debtor has the
exclusive right to grant a security interest in the Collateral and Proceeds; (d)
all Collateral and Proceeds are genuine, free from liens, adverse claims,
setoffs, default, prepayment, defenses and conditions precedent of any kind or
character, except the lien created hereby or as otherwise agreed to by Bank, or
as heretofore

                                      -2-
<PAGE>

disclosed by Debtor to Bank, in writing; (e) all statements contained herein are
true and complete in all material respects; (f) no financing statement covering
any of the Collateral or Proceeds, and naming any secured party other than Bank,
Is on file in any public office; (g) to the best of Debtor's knowledge, where
Collateral consists of rights to payment, all persons appearing to be obligated
on the Collateral and Proceeds have authority and capacity to contract and are
bound as they appear to be, all property subject to chattel paper has been
properly registered and filed in compliance with law and to perfect the interest
of Debtor in such property, and all such Collateral and Proceeds comply with all
applicable laws concerning form, content and manner of preparation and
execution, including where applicable Federal Reserve Regulation Z and any State
consumer credit laws and (h) where the Collateral consists of equipment, Debtor
is not in the business of selling goods of the kind included within such
Collateral, and Debtor acknowledges that no sale or other disposition of any
such Collateral, including without limitation, any such Collateral which Debtor
may deem to be surplus, has been consented to or acquiesced in by Bank, except
as specifically set forth in writing by Bank.

      6. COVENANTS OF DEBTOR.

      (a) Debtor agrees in general: (i) to pay indebtedness secured hereby when
due; (ii) to indemnify Bank against all losses, claims, demands, liabilities and
expenses of every kind caused by property subject hereto (other than Bank's
gross negligence or willful misconduct); (iii) to pay all costs and expenses,
including reasonable attorneys' fees, incurred by Bank in the perfection and
preservation of the Collateral or Bank's interest therein and/or the
realization, enforcement and exercise of Bank's rights, powers and remedies
hereunder; (iv) to permit Bank to exercise its powers; (v) to execute and
deliver such documents as Bank deems necessary to create, perfect and continue
the security interests contemplated hereby; (vi) not to change its name, and as
applicable, its chief executive office, its principal residence or the
jurisdiction in. which it is organized and/or registered without giving Bank
prior written notice thereof; (vii) not to change the places where Debtor keeps
any Collateral or Debtor's records concerning the Collateral and Proceeds
without giving Bank prior written notice of the address to which Debtor is
moving same; and (viii) to cooperate with Bank in perfecting all security
Interests granted herein and in obtaining such agreements from third parties as
Bank deems necessary, proper or convenient in connection with the preservation,
perfection or enforcement of any of its rights hereunder.

      (b) Debtor agrees with regard to the Collateral and Proceeds, unless Bank
agrees otherwise in writing: (i) that Bank is authorized to file financing
statements in the name of Debtor to perfect Bank's security interest in
Collateral and Proceeds; (ii) where applicable, to insure the Collateral with
Bank named as loss payee, in form, substance and amounts, under agreements,
against risks and liabilities, and with insurance companies satisfactory to
Bank; (iii) where applicable, to operate the Collateral in accordance with all
applicable statutes, rules and regulations relating to the use and control
thereof, and not to use any Collateral for any unlawful purpose or in any way
that would void any insurance required to be carried in connection therewith;
(iv) not to remove the Collateral from Debtor's premises, except (A) for
deliveries to customers in the ordinary course of Debtor's business and (B)
Collateral which consists of mobile goods as defined in the California Uniform
Commercial Code, in which case Debtor agrees not to remove or permit the removal
of such Collateral from its state of domicile for a period in excess of thirty
(30) calendar days; (v) to pay when due all license fees, registration fees and
other charges in connection with any Collateral; (vi) not to permit any lien on
the Collateral or Proceeds, including without limitation, liens arising from
repairs to or storage of the Collateral, except in favor of Bank; (vii) not to
sell, hypothecate or dispose of, nor permit the transfer by operation of law of,
any of the Collateral or Proceeds or any interest therein,

                                      -3-
<PAGE>

except sales of inventory to buyers in the ordinary course of Debtor's business
or as otherwise permitted in the Credit Agreement; (viii) to permit Bank to
inspect the Collateral at any time; (ix) to keep, in accordance with generally
accepted accounting principles, complete and accurate records regarding all
Collateral and Proceeds, and to permit Bank to inspect the same and make copies
thereof at any reasonable time; (x) if requested by Bank during the existence of
an Event of Default, to receive and use reasonable diligence to collect
Collateral consisting of accounts and other rights to payment and Proceeds, in
trust and as the property of Bank, and to immediately endorse as appropriate and
deliver such Collateral and Proceeds to Bank dally in the exact form in which
they are received together with a collection report in form satisfactory to
Bank;(xi) not to commingle Collateral or Proceeds, or collections thereunder,
with other property; (xii) to give only normal allowances and credits and to
advise Bank thereof immediately in writing if they affect any rights to payment
or Proceeds in any material respect; (xiii) from time to time, when requested by
Bank, to prepare and deliver a schedule of all Collateral and Proceeds subject
to this Agreement and to assign in writing and deliver to Bank all accounts,
contracts, leases and other chattel paper, instruments, documents and other
evidences thereof; (xiv) In the event Bank elects to receive payments of rights
to payment or Proceeds hereunder, to pay all expenses incurred by Bank in
connection therewith, including expenses of accounting, correspondence,
collection efforts, reporting to account or contract debtors, filing, recording,
record keeping and expenses incidental thereto; and (xv) to provide any service
and do any other acts which may be necessary to maintain, preserve and protect
all Collateral and, as appropriate and applicable, to keep all Collateral In
good and saleable condition, to deal with the Collateral in accordance with the
standards and practices adhered to generally by users and manufacturers of like
property, and to keep all Collateral and Proceeds free and clear of all
defenses, rights of offset and counterclaims.

      7. POWERS OF BANK. Debtor appoints Bank its true attorney in fact to
perform any of the following powers, which are coupled with an interest, are
irrevocable until termination of this Agreement and may be exercised from time
to time by Bank's officers and employees, or any of them, when an Event of
Default exists (unless otherwise set forth herein): (a) to perform any
obligation of Debtor hereunder in Debtor's name or otherwise; (b) to give notice
to account debtors or others of Bank's rights in the Collateral and Proceeds, to
enforce or forebear from enforcing the same and make extension and modification
agreements with respect thereto; (c) to release persons liable on Collateral or
Proceeds and to give receipts and acquittances and compromise disputes in
connection therewith; (d) to release or substitute security; (e) to resort to
security in any order; (f) to prepare, execute, file, record or deliver notes,
assignments, schedules, designation statements, financing statements,
continuation statements, termination statements, statements of assignment,
applications for registration or like papers to perfect, preserve or release
Bank's interest in the Collateral and Proceeds; (g) to receive, open and read
mail addressed to Debtor; (h) to take cash, instruments for the payment of money
and other property to which Bank is entitled; (i) at any time, to verify facts
concerning the Collateral and Proceeds by inquiry of obligors thereon, or
otherwise, in its own name or a fictitious name; (j) to endorse, collect,
deliver and receive payment under instruments for the payment of money
constituting or relating to Proceeds; (k) to prepare, adjust, execute, deliver
and receive payment under insurance claims, and to collect and receive payment
of and endorse any instalment in payment of loss or returned premiums or any
other insurance refund or return, and to apply such amounts received by Bank, at
Bank's sole option, toward repayment of the Indebtedness or, where appropriate,
replacement of the Collateral; (l) to exercise all rights, powers and remedies
which Debtor would have, but for this Agreement, with respect to all Collateral
and Proceeds subject hereto; (m) to enter onto Debtor's premises in Inspecting
the Collateral; (n) to make withdrawals from and to close deposit accounts or
other accounts with any financial institution, wherever located, into which
Proceeds may have been deposited, and to apply funds

                                      -4-
<PAGE>

so withdrawn to payment of the Indebtedness; (o) to preserve or release the
interest evidenced by chattel paper to which Bank is entitled hereunder and to
endorse and deliver any evidence of title incidental thereto; and (p) to do all
acts and things and execute all documents in the name of Debtor or otherwise,
deemed by Bank as necessary, proper and convenient in connection with, at any
time, the preservation or perfection, or, when an Event of Default exists,
enforcement of its rights hereunder.

      8. PAYMENT OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor
agrees to pay, prior to delinquency, all insurance premiums, taxes, charges,
liens and assessments against the Collateral and Proceeds, and upon the failure
of Debtor to do so, Bank at its option may pay any of them and shall be the sole
judge of the legality or validity thereof and the amount necessary to discharge
the same. Any such payments made by Bank shall be obligations of Debtor to Bank,
due and payable immediately upon demand, together with interest at a rate
determined in accordance with the provisions of this Agreement, and shall be
secured by the Collateral and Proceeds, subject to all terms and conditions of
this Agreement.

      9. EVENTS OF DEFAULT. The occurrence of any of the following shall
constitute an "Event of Default" under this Agreement (a) any Event of Default
under the Credit Agreement dated as the date hereof, as amended, renewed or
restated from time to time; and (b) Bank, in good faith, believes any or all of
the Collateral and/or Proceeds to be in danger of misuse, dissipation,
commingling, loss, theft, damage or destruction, or otherwise in jeopardy or
unsatisfactory in character or value.

      10. REMEDIES. Upon the occurrence of any Event of Default, Bank shall have
the right to declare immediately due and payable all or any Indebtedness secured
hereby and to terminate any commitments to make loans or otherwise extend credit
to Debtor, Bank shall have all other rights, powers, privileges and remedies
granted to a secured party upon default under the California Uniform Commercial
Code or otherwise provided by law, including without limitation, the right (a)
to contact all persons obligated to Debtor on any Collateral or Proceeds and to
instruct such persons to deliver all Collateral and/or Proceeds directly to
Bank, and (b) to sell, lease, license or otherwise dispose of any or all
Collateral. All rights, powers, privileges and remedies of Bank shall be
cumulative. No delay, failure or discontinuance of Bank in exercising any right,
power, privilege or remedy hereunder shall affect or operate as a waiver of such
right, power, privilege or remedy; nor shall any single or partial exercise of
any such right, power, privilege or remedy preclude, waive or otherwise affect
any other or further exercise thereof or the exercise of any other right,
power, privilege or remedy. Any waiver, permit consent or approval of any kind
by Bank of any default hereunder, or any such waiver of any provisions or
conditions hereof, must be in writing and shall be effective only to the extent
set forth in writing. It is agreed that public or private sales or other
dispositions, for cash or on credit, to a wholesaler or retailer or investor, or
user of property of the types subject to this Agreement, or public auctions, are
all commercially reasonable since differences in the prices generally realized
in the different kinds of dispositions are ordinarily offset by the differences
in the costs and credit risks of such dispositions. While an Event of Default
exists: (a) Debtor will deliver to Bank from time to time, as requested by Bank,
current lists of all Collateral and Proceeds; (b) Debtor will not dispose of any
Collateral or Proceeds except on terms approved by Bank; (c) at Bank's request,
Debtor will assemble and deliver all Collateral and Proceeds, and books and
records pertaining thereto, to Bank at a reasonably convenient place designated
by Bank; and (d) Bank may, without notice to Debtor, enter onto Debtor's
premises and take possession of the Collateral. With respect to any sale or
other disposition by Bank of any Collateral subject to this Agreement, Debtor
hereby expressly grants to Bank the right to sell such Collateral using any or
all of Debtor's trademarks, trade names, trade name rights and/or

                                      -5-
<PAGE>

proprietary labels or marks. Debtor further agrees that Bank shall have no
obligation to process or prepare any Collateral for sale or other disposition.

      11. DISPOSITION OF COLLATERAL AND PROCEEDS; TRANSFER OF INDEBTEDNESS. In
disposing of Collateral hereunder. Bank may disclaim all warranties of title,
possession, quiet enjoyment and the like. Any proceeds of any disposition of any
Collateral or Proceeds, or any part thereof, may be applied by Bank to the
payment of expenses incurred by Bank in connection with the foregoing, Including
reasonable attorneys' fees, and the balance of such proceeds may be applied by
Bank toward the payment of the indebtedness in such order of application as Bank
may from time to time elect. Upon the transfer of all or any part of the
Indebtedness, Bank may transfer all or any part of the Collateral or Proceeds
and shall be fully discharged thereafter from all liability and responsibility
with respect to any of the foregoing so transferred, and the transferee shall be
vested with all rights and powers of Bank hereunder with respect to any of the
foregoing so transferred; but with respect to any Collateral or Proceeds not so
transferred, Bank shall retain all rights, powers, privileges and remedies
herein given.

      12. STATUTE OF LIMITATIONS. Until all indebtedness shall have been paid in
full and all commitments by Bank to extend credit to Debtor have been
terminated, the power of sale or other disposition and all other rights, powers,
privileges and remedies granted to Bank hereunder shall continue to exist and
may be exercised by Bank at any time and from time to time irrespective of the
fact that the Indebtedness or any part thereof may have become barred by any
statute of limitations, or that the personal liability of Debtor may have
ceased, unless such liability shall have ceased due to the payment in full of
all Indebtedness secured hereunder.

      13. MISCELLANEOUS. When there is more than one Debtor named herein: (a)
the word "Debtor" shall mean all or any one or more of them as the context
requires; (b) the obligations of each Debtor hereunder are joint and several;
and (c) until all Indebtedness shall have been paid in full, no Debtor shall
have any right of subrogation or contribution, and each Debtor hereby waives any
benefit of or right to participate in any of the Collateral or Proceeds or any
other security now or hereafter held by Bank. Debtor hereby waives any right to
require Bank to (i) proceed against Debtor or any other person, (ii) proceed
against or exhaust any security from Debtor or any other person, (iii) perform
any obligation of Debtor with respect to any Collateral or Proceeds, and (d)
make any presentment or demand, or give any notice of nonpayment or
nonperformance, protest, notice of protest or notice of dishonor hereunder or in
connection with any Collateral or Proceeds. Debtor further waives any right to
direct the application of payments or security for any Indebtedness of Debtor or
Indebtedness of customers of Debtor.

      14. NOTICES. All notices, requests and demands required under this
Agreement must be in writing, addressed to Bank at the address specified in any
other loan documents entered into between Debtor and Bank and to Debtor at the
address of its chief executive office (or principal residence, If applicable)
specified below or to such other address as any party may designate by written
notice to each other party, and shall be deemed to have been given or made as
follows: (a) if personally delivered, upon delivery; (b) if sent by mail, upon
the earlier of the date of receipt or three (3) days after deposit in the U.S.
mail, first class and postage prepaid; and (c) if sent by telecopy, upon
receipt.

      15. COSTS, EXPENSES AND ATTORNEYS' FEES. Debtor shall pay to Bank
immediately upon demand the full amount of all payments, advances, charges,
costs and

                                      -6-
<PAGE>

expenses, including reasonable attorneys' fees (to include outside counsel fees
and all allocated costs of Bank's in-house counsel), expended or incurred by
Bank in exercising any right, power, privilege or remedy conferred by this
Agreement or in the enforcement thereof, whether incurred at the trial or
appellate level, in an arbitration proceeding or otherwise, and Including any of
the foregoing incurred in connection with any bankruptcy proceeding (including
without limitation, any adversary proceeding, contested matter or motion brought
by Bank or any other person) relating to Debtor or in any way affecting any of
the Collateral or Bank's ability to exercise any of its rights or remedies with
respect thereto. All of the foregoing shall be paid by Debtor with interest from
the date of demand until paid in full at a rate per annum equal to the greater
of ten percent (10%) or Bank's Prime Rate in effect from time to time.

      . 16. SUCCESSORS; ASSIGNS; AMENDMENT. This Agreement shall be binding upon
and inure to the benefit of the heirs, executors, administrators, legal
representatives, successors and assigns of the parties, and may be amended or
modified only in writing signed by Bank and Debtor.

      17. OBLIGATIONS OF MARRIED PERSONS. Any married person who signs this
Agreement as Debtor hereby expressly agrees that recourse may be had against his
or her separate property for all his or her Indebtedness to Bank secured by the
Collateral and Proceeds under this Agreement

      18. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall
be held to be prohibited by or Invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity,
without Invalidating the remainder of such provision or any remaining provisions
of this Agreement

      19. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.

      Debtor warrants that Debtor is an organization registered under the laws
of the State of Delaware.

      Debtor warrants that Its chief executive office (or principal residence,
if applicable) is located at the following address: 610 PALOMAR AVENUE,
SUNNYVALE, CA 94085.

      Debtor warrants that the Collatoral (except goods in transit) Is located
or domiciled at the following additional addresses: Domestic Hospitals
                                                    ----------------------------

      IN WITNESS WHEREOF, this Agreement has been duly executed as of October
15, 2004

MCRUS CORPORATION

By: /s/ Robert A. Stern
    -------------------

Title: CHIEF FINANCIAL OFFICER

                                      -7-exv10w19

 

 Exhibit 10.19

MICRUS CORPORATION

SERIES E PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT

     THIS
SERIES E PREFERRED STOCK AND WARRANT PURCHASE AGREEMENT is made as of
February 21, 2005
(this “Agreement”) by and among MICRUS CORPORATION, a Delaware corporation (the
“Company”), and each person or entity (each, an “Investor”) whose name appears on
the signature page of this Agreement. Hereinafter, Investors in the Series E Preferred Stock and
Warrant Financing will be collectively referred to as the “Investors”.

BACKGROUND

     The Company desires to sell, and each Investor desires to purchase, shares of Series E
Convertible Preferred Stock, par value $0.01, of the Company (the “Series E Preferred
Stock”), convertible into shares of Common Stock, par value $0.01, of the Company (the
“Common Stock”) and warrants to purchase Common Stock as set forth opposite such Investor’s
name on the Schedule of Investors attached hereto as Exhibit A.

TERMS

     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and
intending to be legally bound hereby, the parties agree as follows:

     1. Agreement to Sell and Purchase the Series E Preferred Stock and Warrants.

          1.1 Sale and Purchase of the Series E Preferred Stock. The Company hereby issues and
sells to each Investor, and each such Investor severally agrees to purchase from the Company, the
number of shares of Series E Preferred Stock designated to be purchased by such Investor on
Exhibit A hereto for the aggregate purchase price designated to be paid by such Investor
named on the Exhibit A hereto.

          1.2 Issuance of Warrants. Each Investor shall receive a warrant in substantially the
form attached hereto as Exhibit B (each, a “Warrant”) which provides (i) in the
event no public offering of the Company’s equity securities has occurred on or before December 31,
2005, the Warrant will be exercisable at any time after December 31, 2005 for that number of shares
of Common Stock equal to 50% of the number of shares of Series E Preferred Stock the holder of the
Warrant purchased pursuant to this Agreement at an exercise price of $4.00 per share; and (ii) in
the event the Company closes a public offering of the Company’s equity securities in which the
proceeds per share of Series E Preferred Stock held by the holder of the Warrant prior to such
public offering (before the payment of any underwriting discounts and assuming such share of Series
E Preferred Stock was converted into Common Stock and such shares of Common Stock are sold in such
public offering) (the “Series E Proceeds per Share”) is less than $6.00 per share, the
Warrant will become immediately exercisable for (in addition to any shares that it may be

 

 

exercisable pursuant to subsection (i) above) that number of shares of Common Stock equal to
the quotient of (a) $6.00 less the Series E Proceeds per Share; divided by (b) the proceeds per
share of Common Stock in such public offering (before the payment of any underwriting discounts);
multiplied by the number of shares of Series E Preferred Stock the holder of the Warrant purchased
in the Financing, at an exercise price of $0.0001 per share.

          1.3 Delivery of Securities. At the Closing (as defined in Section 4 below), the
Company shall deliver to each Investor a stock certificate representing that number of shares of
Series E Preferred Stock being purchased by such Investor hereunder registered in the name of such
Investor, and a Warrant to purchase that number of shares of Common Stock as determined pursuant to
Section 1.2 above registered in the name of such Investor. Delivery shall be made against receipt
by the Company of a certified check or checks payable to the order of the Company or by wire
transfer of funds to the account of the Company representing each Investor’s aggregate purchase
price as set forth on Exhibit A hereto.

     2. Representations and Warranties of the Company. The Company hereby represents and
warrants to each Purchaser that, except as set forth on a Schedule of Exceptions delivered
separately by the Company to each Purchaser (the “Schedule of Exceptions”), which
exceptions shall be deemed to be representations and warranties as if made hereunder:

          2.1 Organization, Authority and Good Standing. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware, and
further that the Company is qualified as a foreign corporation in all jurisdictions in which such
qualification is required; provided, however, that the Company need not be qualified in a
jurisdiction in which its failure to qualify would not have a material adverse effect on the
business, assets (including intangible assets), financial condition, results of operations or
liabilities of the Company in excess of $100,000, whether individually or in the aggregate
(hereinafter referred to as a “Material Adverse Effect”). The Company has all requisite
corporate power and authority to execute and deliver this Agreement and the Stockholders’ Agreement
(as defined below), to issue the Series E Preferred Stock, Warrants and the Common Stock issuable
upon conversion of the Series E Preferred Stock and exercise of the Warrants, and to perform the
obligations hereunder on its part to be performed.

          2.2 Authorization. The execution and delivery of this Agreement and the Stockholders’
Agreement and the performance by the Company of its obligations hereunder have been duly and
validly authorized by all necessary corporate action on the part of the Company, its officers,
directors and stockholders, and the authorization, sale, issuance and delivery of the Series E
Preferred Stock and Warrants pursuant hereto and the Common Stock issuable upon conversion of the
Series E Preferred Stock pursuant to the Restated Certificate and the exercise of the Warrants has
been taken. When duly executed and delivered by the Company, this Agreement and the Stockholders’
Agreement (assuming due authorization, execution and delivery by the Investors) will constitute a
legal, valid and binding obligation of the Company enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and similar laws affecting creditor’s rights

2

 

and remedies generally and general principles of equity, including commercial reasonableness, good faith
and fair dealing.

          2.3 Issuance of Securities. The rights, preferences, privileges and restrictions of
the Series E Preferred Stock are as stated in the Restated Certificate (as defined in Section 4
below). When issued and delivered in accordance with this Agreement, the shares of Series E
Preferred Stock, the Warrants and the shares of Common Stock reserved for issuance upon conversion
of the Series E Preferred Stock and exercise of the Warrants, will be validly issued, fully paid,
non-assessable and will be free of any liens or encumbrances. The Series E Preferred Stock and the
shares of Common Stock issuable upon conversion of the Series E Preferred Stock and exercise of the
Warrants have been duly and validly reserved for issuance.

          2.4 Capitalization. The capitalization of the Company on the date hereof and the
number of issued and outstanding shares of capital stock and options and warrants exercisable for
capital stock of the Company are as set forth on Schedule 2.4 hereto. Of the 3,750,000
shares that have been designated “Series E Preferred Stock, “ there will be no shares issued and
outstanding immediately prior to the Closing. Except as set forth on Schedule 2.4 attached
hereto, there are no preemptive or similar rights to purchase or otherwise acquire shares of
capital stock of the Company pursuant to any provision of law, the Restated Certificate (as defined
in Section 4 below) or Bylaws of the Company or any agreement to which the Company is a party, or
otherwise, other than as contemplated by this Agreement or that certain Amended and Restated
Stockholders’ Agreement dated the date hereof by and among the Investors, the Company and certain
other parties thereto, attached hereto as Exhibit C (the “Stockholders’
Agreement”). All outstanding shares of Common Stock and Preferred Stock, and all shares of
Common Stock and Preferred Stock issuable upon the exercise or conversion of outstanding options,
warrants or other exercisable or convertible securities held by directors or officers of the
Company or by holders of 1% or more of the Company’s outstanding capitalization are subject to a
market standoff or “lockup” agreement of not less than 180 days following the Company’s initial
public offering.

          2.5 Rights of Registration and Voting Rights. Except as contemplated in the
Stockholders’ Agreement, the Company has not granted or agreed to grant any registration rights,
including piggyback rights, to any person or entity. To the Company’s knowledge, no stockholder of
the Company has entered into any agreements with respect to the voting of capital shares of the
Company.

          2.6 Corporate Documents. Copies of the Restated Certificate and Bylaws of the Company
and the minute books of the Company have been made available for review by Investor or counsel for
the Investor. The copy of the minute books of the Company made available to the Investor or
counsel for the Investor contain minutes of all meetings of directors and stockholders and all
actions by written consent without a meeting by the directors and stockholders since the date of
incorporation and reflect all actions by the directors (and any committee of directors) and
stockholders with respect to all transactions referred to in such minutes accurately in all
material respects. The copies of the Restated Certificate and Bylaws made available pursuant to
this

3

 

Section 2.6 are true, correct and complete and, with respect to the Restated Certificate and
Bylaws, contain all amendments through the date thereof.

          2.7 Use of Proceeds. The net proceeds received by the Company from the sale of the
Series E Preferred Stock shall be used by the Company for research and development commitments,
marketing and clinical development expenses, capital expenditures, working capital and other
general corporate purposes. No proceeds received by the Company from the sale of the Series E
Preferred Stock shall be available or used to redeem any capital stock of the Company except for
the redemption of the Series E Preferred.

          2.8 Absence of Liabilities; Contracts. Other than as set forth on Schedule
2.8, as of the date of this Agreement, the Company (a) has no liability of any nature, whether
matured or unmatured that would have a Material Adverse Effect, and (b) is not a party to any
written or oral contract, understanding, instrument, proposed transactions, judgments, orders,
writs, decrees or agreement, which involves obligations of, or payments to, the Company in excess
of $100,000 or any unperformed commitment by the Company that is to be performed in whole or in
part after the date hereof.

          2.9 Intellectual Property Rights. Schedule 2.9 lists and describes all
patents, patent applications, patent rights, mask works, mask work applications, trademarks,
trademark applications, trade names, service marks, service mark applications, copyrights and
copyright applications (collectively, “Intellectual Property”) presently owned, licensed or
held by the Company. The Company owns, licenses or otherwise possesses all of the Intellectual
Property reasonably necessary for the conduct of the business of the Company as presently conducted
and as proposed to be conducted. To the Company’s knowledge, the business as conducted or proposed
to be conducted by the Company will not infringe or violate any Intellectual Property rights of any
other person. No claim is pending or to the Company’s knowledge threatened to the effect that any
such Intellectual Property owned or licensed by the Company, or which the Company otherwise has the
right to use, is invalid or unenforceable by the Company, and there is no basis for any such claim
(whether or not pending or threatened). All technical information developed by and belonging to
the Company which has not been patented has been kept confidential. The Company has not granted or
assigned to any other person or entity any right to manufacture, have manufactured, assemble or
sell the products or proposed products or to provide the services or proposed services to the
Company. The Company is not aware of any infringement or misappropriation by others of any of its
Intellectual Property. The Company has taken all reasonable steps necessary or appropriate to
establish and maintain its ownership of the Intellectual Property.

          2.10 Financial Statements

               2.10.1 The Company has delivered to the Investors its reviewed, but unaudited annual financial
statements for the fiscal year ended March 31, 2004 (and its unaudited financial statements through
December 31, 2004, including the Company’s balance sheet, income statement and statement of cash
flows (collectively, the “Financial Statements”).

4

 

               2.10.2 The Financial Statements fairly and accurately present the Company’s financial position
as of those dates and the results of operations and changes in its financial position for such
periods then ended, and have been prepared in accordance with GAAP applied on a consistent basis,
subject to normal year-end adjustments.

               2.10.3 There are no debts, liabilities or claims against the Company that are not currently
reflected in the Financial Statements, contingent or otherwise, which are or would be of a nature
required to be reflected in a balance sheet prepared in accordance with GAAP other than liabilities
incurred in the ordinary course of business which, individually or in the aggregate, would not have
a Material Adverse Effect on the Company. The Company’s revenue recognition policies are in
accordance with GAAP. The Company maintains a standard system of accounting in accordance with
GAAP. The Company’s financial reserves are adequate to cover claims incurred.

               2.10.4 All of the accounts receivable and notes receivable owing to the Company as of the date
hereof constitute valid and enforceable claims, subject to the effect of applicable bankruptcy,
insolvency, reorganization, moratorium or other laws of general application relating to or
affecting enforcement of creditors’ rights and rules or laws concerning equitable remedies arising
from bona fide transactions in the ordinary course of business, and there are no known, contingent
or asserted claims, refusals to pay, or other rights of set-off against any thereof known to the
Company which have not been adequately reserved for and reflected in the Financial Statements.

          2.11 Title to Property and Assets. The Company has good and marketable title to its
property and assets free and clear of all mortgages, liens, loans and encumbrances, except such
encumbrances and liens which arise in the ordinary course of business and do not materially impair
the Company’s ownership or use of such property or assets. With respect to the property and assets
it leases, the Company is in compliance with such leases and, to its knowledge, holds a valid
leasehold interest free of any liens, claims or encumbrances. The properties and assets of the
Company are in good condition and repair in all material respects.

          2.12 Changes in Condition. Except as specifically set forth in this Agreement, since
the latest date of the Financial Statements (December 31, 2004), (a) the Company has not entered
into any transaction which was not in the ordinary course of business, (b) the Company has not
incurred any tax liability that would have a Material Adverse Effect, (c) there has been no
resignation or termination of employment of any officer or key employee of the Company and the
Company does not know of any impending resignation or termination of employment of any such officer
or key employee that if consummated would have a Material Adverse Effect, (d) there has been no
labor dispute involving the Company or any of its respective employees and none is pending or, to
the Company’s knowledge, threatened, (e) there has been no waiver by the Company of a valuable
right or of a debt owing to the Company which would have a Material Adverse Effect, and (f) there
has not been any satisfaction or discharge of any material lien, claim or encumbrance or any
payment of any material obligation by the Company except in the ordinary course of business.

5

 

          2.13 Litigation. There is no action, proceeding, or investigation pending or, to the
Company’s knowledge, threatened, or any basis therefor known to the Company, that questions the
validity of this Agreement or the right of the Company to enter into this Agreement or to
consummate the transactions contemplated hereby or that would result, either individually or in the
aggregate, in a Material Adverse Effect. There is no judgment, decree, or order of any court in
effect against the Company and the Company is not in default with respect to any order of any
governmental authority to which the Company is a party or by which it is bound. There is no
action, suit, proceeding, or investigation by the Company currently pending or which the Company
presently intends to initiate.

          2.14 Taxes. All federal, state, local, and foreign tax returns required to be filed
by the Company have been filed and are true in all material respects, and all taxes, assessments,
fees, and other governmental charges upon the Company, or upon any of its properties, income, or
franchises, shown in such returns to be due and payable have been paid or if any of such tax
returns have not been filed or if any such taxes have not been paid or so reserved for, the failure
so to file or to pay would not in the aggregate have a Material Adverse Effect.

          2.15 Compliance With Other Agreements. The Company is not in violation of any term or
provision of its Restated Certificate or Bylaws, each as currently in effect and as contemplated to
be in effect as of the Closing, or any material term or provision of any indebtedness, mortgage,
lease, instrument, indenture, contract, agreement, judgment or, to the Company’s knowledge, any
decree, order, statute, rule or regulation applicable to the Company, in each case, or in the
aggregate, the violation of which would have a Material Adverse Effect. The execution, delivery
and performance of this Agreement and the Stockholders’ Agreement by the Company and the issuance
of the Series E Preferred Stock and Warrants and the Common Stock issuable upon conversion or
exercise thereof, will not result in any violation of, be in conflict with, or constitute a default
under, with or without the passage of time or the giving of notice:

               2.15.1 any provision of the Company’s Restated Certificate or Bylaws;

               2.15.2 any provision of any judgment, decree or order to which the Company is a party or by
which it is bound;

               2.15.3 any material contract, obligation or commitment to which the Company is a party or by
which it is bound; or

               2.15.4 any statute, rule or governmental regulation applicable to the Company.

          2.16 Governmental and Third Party Consent. Subject to the accuracy of Investors’
representations in Section 3 of this Agreement, no consent, approval, order, or authorization of,
or registration, qualification, designation, declaration, or filing with, any federal, state,
local, or provincial governmental authority on the part of the Company is required in connection
with the consummation of the transactions contemplated by this Agreement, except

6

 

for the timely filing of the notice required by the securities laws of those states in which
Investors are resident.

          2.17 Related Party Transactions. There are no obligations of the Company to officers,
directors, stockholders, or employees of the Company other than (a) for payment of salary for
services rendered, (b) reimbursement for reasonable expenses incurred on behalf of the Company and
(c) for other standard employee benefits made generally available to all employees (including stock
option agreements outstanding under any stock option plan approved by the Board of Directors of the
Company). No employee, officer, stockholder, key employee or director of the Company or member of
his or her immediate family is indebted to the Company, nor is the Company indebted (or committed
to make loans or extend or guarantee credit) to any of them. To the Company’s knowledge, none of
such persons has any direct or indirect ownership interest in any firm or corporation with which
the Company is affiliated or with which the Company has a significant business relationship, or any
firm or corporation that competes with the Company, except that employees, officers or directors of
the Company and members of their immediate families may own stock in publicly traded companies that
may compete with the Company. To the Company’s knowledge, no member of the immediate family of any
officer or director of the Company is directly or indirectly interested in any material contract
with the Company.

          2.18 Insurance. The Company has in full force and effect fire and casualty insurance
policies, with financially sound and reputable insurers, with extended coverage, sufficient in
amount (subject to reasonable deductibles) to allow it to replace any of its material tangible
properties that might be damaged or destroyed and in all other respects customary for similarly
situated companies. The Company also has general commercial and product liability insurance
policies with coverage customary for similarly situated companies.

          2.19 Permits. The Company has all franchises, permits, licenses and any similar
authority necessary for the conduct of its business as now being conducted by it, the lack of which
could materially and adversely affect the business, properties, prospects or financial condition of
the Company, and the Company believes it can obtain, without undue burden or expense, any similar
authority for the conduct of its business as planned to be conducted. The Company is not in
default in any material respect under any of such franchises, permits, licenses or other similar
authority.

          2.20 Compliance with Laws. The Company is not in violation of any applicable statute,
law or regulation where such violation would have a Material Adverse Effect on the Company, and no
material expenditures are or will be required in order to comply with any such existing statute,
law or regulation.

          2.21 Disclosure. The Company has fully provided Investors with all the information
that Investors have requested for deciding whether to acquire the Series E Preferred Stock and
Warrants and all information that the Company believes is reasonably necessary to enable Investors
to make such a decision, including certain of the Company’s projections describing its proposed
business (collectively, the “Business Plan”). No representation or

7

 

warranty of the Company contained in this Agreement and the exhibits attached hereto, any
certificate furnished or to be furnished to Investors at the Closing, or the Business Plan (when
read together) contains any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained herein or therein not misleading in light of
the circumstances under which they were made. To the extent the Business Plan was prepared by
management of the Company, the Business Plan and the financial and other projections contained in
the Business Plan were prepared in good faith; however, the Company does not warrant that it will
achieve such projections, but the Company believes there is a reasonable basis for such
projections.

          2.22 Invention Assignment. Each employee and officer of the Company has executed an
agreement with the Company regarding confidentiality and proprietary information substantially in
the form or forms delivered to the counsel for the Purchasers. The Company is not aware that any
of its employees or consultants is in violation thereof, and the Company will use its best efforts
to prevent any such violation.

     3. Representations and Warranties of Investors. Each Investor severally represents
and warrants to the Company as follows:

          3.1 Power and Authority. Such Investor has the power and ability to make, execute,
deliver and perform this Agreement, without the consent of any other person.

          3.2 Binding Effect. This Agreement (assuming due execution and delivery by the
Company and the other Investors) constitutes the legal, valid and binding obligation of such
Investor enforceable against such Investor in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws
affecting creditor’s rights and remedies generally and general principles of equity, including
commercial reasonableness, good faith and fair dealing.

          3.3 Memorandum. Such Investor has been furnished with and has carefully read the
Business Plan. Such Investor acknowledges and understands that the financial projections and other
estimates contained in the Business Plan are based on the best estimates of the Company derived
from reasonable expectations at the time such projections and estimates were made. Investor
further acknowledges that the projections are subject to change inasmuch as all material events and
circumstances cannot be predicted and unanticipated events and circumstances are likely to occur.
Therefore, no representation or warranty as to the accuracy of these projections is being made by
the Company and no assurances can be given that the projected results will actually be achieved.

          3.4 Investment Risk. Such Investor recognizes that investment in the Company involves
substantial risks, and the Investor has taken full cognizance of and understands all of the risk
factors related to the acquisition of the Series E Preferred Stock, Warrants, and Common Stock
issuable upon conversion of the Series E Preferred Stock and exercise of the Warrants
(collectively, the “Securities”).

8

 

          3.5 Access to Information. Such Investor has had full and complete access to all
relevant financial and other information relating to the Company, including the opportunity to
question appropriate officers of the Company, inspect appropriate corporate records of the Company
and otherwise satisfy itself as to all material facts concerning the Company. Such Investor
acknowledges receipt of a summary of Company Risk Factors which describes many of the risks and
uncertainties inherent in any investment in the Company’s stock.

          3.6 Purchase for Investment. The Securities being issued and sold hereunder have not
been registered under the Securities Act of 1933, as amended (the “1933 Act”), or any
applicable state securities laws and are subject to restrictions upon any resale or other
disposition thereof as set forth in the Stockholders’ Agreement. The Securities are being acquired
for such Investor’s own account for investment only, and not with a view to distribution,
assignment or resale, in whole or in part, to any other person.

          3.7 Regulatory Approval. Such Investor acknowledges that the future success and
profitability of the Company is highly contingent upon obtaining marketing approvals for its
products from the U.S. Food and Drug Administration and other regulatory entities outside the
United States and that there can be no assurances that such approvals will be obtained in a timely
manner or otherwise.

          3.8 Dilution. Such Investor acknowledges that the purchase of the Series E Preferred
Stock will involve immediate substantial dilution based on the price per share of Common Stock paid
by the founding stockholders of, and prior investors in, the Company.

          3.9 Investor Suitability Standards. Such Investor:

               3.9.1 has such knowledge and experience in financial and business matters to be capable of
evaluating the merits and risks of the investment in the Securities;

               3.9.2 has made an independent investigation and evaluation of the financial position and
business condition of the Company and the value of the Securities;

               3.9.3 is able to bear the economic risk of the investment in the Securities (i.e., can
afford a complete loss), and such Investor’s commitment to all illiquid investments is reasonable
in relation to such Investor’s net worth;

               3.9.4 is familiar with the nature of and risks attending such investments in securities and
has determined that the purchase of the Securities is consistent with its investment objectives and
income prospects;

               3.9.5 is aware that no trading market for the Securities will exist at any time and that the
Securities will at no time be freely transferable;

               3.9.6 has adequate means of providing for such Investor’s current needs and possible personal
contingencies, and has no need for liquidity in this investment in the Securities;

9

 

               3.9.7 has not employed any broker or finder in connection with the transactions contemplated
by this Agreement; and

               3.9.8 is an “accredited investor” as defined in Rule 501(a) promulgated under the 1933 Act.

     4. Conditions to and Deliveries at Closing. The closing of the transactions
contemplated by this Agreement (the “Closing”), shall take place at the offices Heller
Ehrman Venture Law Group on the date hereof, or such other place or time as shall be mutually
agreed upon by the Company and Investors acquiring an aggregate of at least one million of the
shares of Series E Preferred Stock sold. Thereafter, the Company may sell the remaining authorized
shares of Series E Preferred Stock on the terms set forth herein to such Investors as it shall deem
appropriate and who shall become parties hereto; provided that the sale of such shares shall be
consummated prior to the earlier of (i) June 30, 2005; or (ii) the date the Company files a
registration statement with the Securities and Exchange Commission covering a public offering of
the Company’s capital stock. At or before the Closing:

          4.1 Securities; Purchase Price. The Investors shall receive stock certificates
evidencing their ownership of the Series E Preferred Stock, which shares of Series E Preferred
Stock shall have been duly authorized and issued by the Company, and Warrants to purchase that
number of shares of Common Stock of the Company determined pursuant to Section 1.2 above, and the
Company shall receive from each Investor the purchase price set forth next to such Investor’s name
on Exhibit A hereto.

          4.2 Corporate Proceedings; Consents, Etc. All corporate and other proceedings in
connection with the transactions contemplated at the Closing and all documents incident thereto
shall be reasonably satisfactory in form and substance to the Investors.

          4.3 Opinion of Counsel. The Investors shall have received from Heller Ehrman White &
McAuliffe LLP, counsel for the Company, its opinion addressed to the Investors, dated the date of
the Closing, in the form of Exhibit D attached hereto.

          4.4 Amended and Restated Certificate of Incorporation. The Board of Directors of the
Company shall have duly adopted resolutions setting forth, among other things, the designations,
rights, preferences and privileges and qualifications, limitations and restrictions of the Series E
Preferred Stock, and the Eleventh Amended and Restated Certificate of Incorporation of the Company,
in the form of Exhibit E attached hereto (the “Restated Certificate”), shall have
been filed with and accepted by the Secretary of State of Delaware and shall have become effective
and evidence of the foregoing in form satisfactory to the Investors shall have been delivered
thereto.

          4.5 Blue Sky Matters. All consents, approvals, qualifications and/or registrations
required to be obtained, if any, or effected under any applicable state securities or “blue sky”
laws in connection with the designation, issuance, sale and delivery of the Series E Preferred
Stock, the Warrants and the issuance, sale and delivery of the Common Stock issuable upon

10

 

conversion of the Series E Preferred Stock and exercise of the Warrants shall have been obtained or effected
(except for the filing of any notice subsequent to the Closing which may be required under
applicable state securities laws which, if required, shall be filed on a timely basis as may be so
required) and copies of the same delivered to the Investor.

          4.6 Stockholder’s Agreement. Concurrent with the Closing, the Company and the
Investors shall have entered into an Amended and Restated Stockholder’s Agreement in substantially
the form attached hereto as Exhibit C.

          4.7 Certificate of Good Standing. The Company shall deliver to each Investor a
certificate of good standing with respect to the Company issued by the Secretary of State of the
State of Delaware.

          4.8 Representations and Warranties True; Performance of Obligations. The
representations and warranties made by the Company in Section 2 hereof shall be true and correct
as of the date of Closing with the same force and effect as if they had been made as of the
Closing, and the Company shall have performed all obligations and conditions herein required to be
performed or observed by it on or prior to the Closing.

          4.9 Compliance Certificate. The Company shall have delivered to the Purchasers a
Compliance Certificate, executed by the President of the Company, dated the date of Closing, to the
effect that the conditions specified in subsections Sections 4.2 and 4.8 have been satisfied.

     5. Notices. All notices provided for or permitted hereunder shall be made in writing
by hand-delivery, registered or certified first-class mail, telex, telecopier or air courier
guaranteeing overnight delivery to the other party at the following addresses (or at such other
address as shall be given in writing by any party to the others):

	 	 	 
	

	 	If to the Company:
	 
	 	 
	

	 	Micrus Corporation
	

	 	Attention: Chief Financial Officer
	

	 	610 Palomar Avenue
	

	 	Sunnyvale, CA 94085
	 
	 	 
	

	 	with a copy to:
	 
	 	 
	

	 	Orrick, Herrington & Sutcliffe LLP
	

	 	Attn: Glen R. Van Ligten
	

	 	1000 Marsh Road
	

	 	Menlo Park, CA 94025-1015

     If to the Investors, to the names and addresses set forth on Exhibit A, or to such
address subsequently provided by an Investor to the Company.

11

 

     All such notices shall be in writing and shall be deemed to have been duly given when
delivered by hand, if personally delivered; five business days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt acknowledged, if
telecopied; and on the next business day, if timely delivered to a courier guaranteeing overnight
delivery. All notices to international addresses shall be sent via nationally recognized express
courier.

     6. Headings. The headings in this Agreement are for convenience only, form no part of
this Agreement and shall not affect its interpretation.

     7. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California without regard to conflict of laws provisions.

     8. Specific Enforcement; Other Remedies. The parties hereto acknowledge that each
would be irreparably damaged in the event the provisions of this Agreement were not performed in
accordance with their specific terms or were otherwise breached. Accordingly, a non-breaching
party will be entitled to an injunction or injunctions to prevent breaches of this Agreement and to
enforce specifically its terms, in addition to any other remedy to which such non-breaching party
may be entitled at law or in equity.

     9. Successors and Assigns; Entire Agreement. This Agreement and all of the provisions
hereof shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns and executors and administrators; provided, that, except
as otherwise specifically permitted pursuant to this Agreement, neither this Agreement nor any of
the rights, interests or obligations hereunder shall be assigned by any party hereto without the
prior written consent of the other parties, except transfers to affiliates of such Investor. This
Agreement sets forth the entire agreement and understanding among the parties as to the subject
matter hereof and merges and supersedes all prior discussions, agreements and understandings of any
and every nature among them.

     10. Counterparts. This Agreement may be executed in any number of counterparts and by
facsimile signature, and each such counterpart hereof shall be deemed to be an original instrument,
but all such counterparts together shall constitute but one agreement.

     11. Pronouns. Whenever the context may require, any pronouns used herein shall be
deemed also to include the corresponding neuter, masculine or feminine forms.

     12. Severability. Any provision of this Agreement that is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

     13. Expenses. The Company shall pay the reasonable fees and expenses of Cooley
Godward LLP, counsel for HBM BioVentures (Cayman) Ltd., reasonable fees and expenses of

12

 

experts, consultants and the like and other expenses incurred in connection with performing
due diligence with respect to this Agreement, the documents referred to herein and the transactions
contemplated hereby and thereby, provided such fees and expenses do not exceed, in the aggregate,
$20,000.

     14. Amendments and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company
and the holders of a majority of the Common Stock issuable or issued upon conversion of the Series
E Preferred Stock sold pursuant hereto and outstanding at the time of such amendment or waiver
(provided that the Company may amend Exhibit A to reflect additional Investors who become
parties to the Agreement pursuant to Section 4 hereof without giving notice to or obtaining
approval of the Investors). Any amendment or waiver effected in accordance with this paragraph
shall be binding upon each holder of any securities purchased under this Agreement at the time
outstanding (including securities into which such securities are convertible), each future holder
of all such securities, and the Company.

[SIGNATURE PAGES FOLLOW]

13

 

     The parties hereto have executed this Micrus Corporation Series E Preferred Stock and Warrant
Purchase Agreement as of the date first written above.

	 	 	 	 	 
	

	 	THE COMPANY:	 	 
	 
	 	 	 	 
	

	 	MICRUS CORPORATION	 	 
	 
	 	 	 	 
	

	 	/s/ Robert A. Stern	 	 
	

	 	                                                                           
	 	     
	

	 	Signature	 	 
	 
	 	 	 	 
	

	 	Robert A. Stern, Executive Vice
President	 	 
	

	 	                                                                           
	 	     
	

	 	Print Name and Title of Signatory	 	 

 

 

     The parties hereto have executed this Micrus Corporation Series E Preferred Stock and Warrant
Purchase Agreement as of the date first written above.

	 	 	 	 	 
	

	 	INVESTOR:	 	 
	 
	 	 	 	 
	

	 	                                                            
	 	     
	

	 	Signature	 	 
	 
	 	 	 	 
	

	 	                                                            
	 	     
	

	 	Print Name of Investor	 	 
	 
	 	 	 	 
	

	 	                                                            
	 	     
	

	 	Print name and title of signatory (if entity)	 	 

 

 

LIST OF EXHIBITS

	 	 	 
	EXHIBITS
	 	 
	 Exhibit A 

	 	List of Investors, number of shares
to be purchased and aggregate purchase price
	 
	Exhibit B

	 	Form of Warrant
	 
	Exhibit C 

	 	Form of Stockholders’ Agreement
	 
	Exhibit D 

	 	Form of Opinion of Heller Ehrman
White and McAuliffe LLP
	 
	 Exhibit E 

	 	Form of Eleventh Amended and Restated
Certificate of Incorporation

 

 

EXHIBIT A

SCHEDULE OF INVESTORS

 

 

EXHIBIT B

FORM OF WARRANT

EXHIBIT C

FORM OF STOCKHOLDERS’ AGREEMENT

EXHIBIT D

FORM OF OPINION OF HELLER EHRMAN WHITE & MCAULIFFE

EXHIBIT E

FORM OF AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}]]