Document:

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                                                                     EXHIBIT 4.1

                                                     NONTRANSFERABLE
                                                     NONQUALIFIED STOCK OPTION
                                                     AGREEMENT, dated January
                                                     31, 2002, between Memry
                                                     Corporation, a Delaware
                                                     corporation (the
                                                     "Company"), and Robert J.
                                                     Thatcher (the "Optionee",
                                                     which term as used herein
                                                     shall be deemed to include
                                                     any successor to the
                                                     Optionee by will or by the
                                                     laws of descent and
                                                     distribution, unless the
                                                     context shall otherwise
                                                     require).

               The Company hereby issues to the Optionee, effective as of
January 31, 2002 (the "Grant Date"), a nonqualified stock option to purchase up
to an aggregate of 75,000 shares of common stock, $0.01 par value, of the
Company (the "Common Stock"), at the price (the "Option Price") of $1.20 per
share, upon the terms and conditions hereinafter set forth.

               NOW, THEREFORE, in consideration of the mutual premises and
undertakings hereinafter set forth, the parties hereto agree as follows:

               1. Option; Option Price. The Company hereby grants to the
                  --------------------
Optionee the option (the "Option") to purchase, subject to the terms and
conditions of this Agreement, 75,000 shares of Common Stock of the Company at an
exercise price per share equal to the Option Price, which Option is not intended
to qualify for federal income tax purposes as an "incentive stock option" within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
"Code").

               2. Term. The term (the "Option Term") of the Option commenced on
                  ----
the Grant Date and shall expire on the third anniversary of the Grant Date,
unless such Option shall theretofore have been terminated in accordance with the
terms hereof.

               3. Time of Exercise. (a) The Option may be exercised at any time
                  ----------------
during the Option Term, subject to the terms hereof.

               4. Termination of Option. The unexercised portion of the Option
                  ---------------------
shall automatically terminate and shall become null and void and be of no
further force or effect upon the first to occur of the following:

                    (a) the expiration of the Option Term;

                    (b) except to the extent permitted by Section 10 hereof, the
               date on which the Option or any part thereof or right or
               privilege relating thereto is transferred (otherwise than by will
               or the laws of descent and distribution), assigned, pledged,
               hypothecated, attached or otherwise disposed of by the Optionee;
               and

<PAGE>

                    (c) the date on which the Optionee breaches (1) Section 4, 5
               or 7 of the Employment Agreement by and between the Company,
               dated January 1, 2000, or (2) any of the material terms of the
               Settlement Agreement and Mutual Release, by and between the
               Optionee and the Company, dated January 28, 2002.

               5. Procedure for Exercise. (a) The Option may be exercised, from
                  ----------------------
time to time, in whole or in part (but for the purchase of whole shares only),
by delivery of a written notice (the "Notice") from the Optionee to the
Secretary of the Company, which Notice shall:

                    (i) state that the Optionee elects to exercise the Option;

                    (ii) state the number of shares of Common Stock with respect
               to which the Option is being exercised (the "Optioned Shares");

                    (iii) state the method of payment for the Optioned Shares
               pursuant to Section 5(b) hereof;

                    (iv) state the date upon which the Optionee desires to
               consummate the purchase of the Optioned Shares (which date must
               be prior to the termination of such Option and no later than 30
               days from the delivery of such Notice);

                    (v) include any representations of the Optionee required
               under Section 8(b) hereof; and

                    (vi) if the Option shall be exercised pursuant to Section 10
               hereof by any person other than the Optionee, include evidence to
               the satisfaction of the Company of the right of such person to
               exercise the Option.

                    (b) Payment of the Option Price for the Optioned Shares
          shall be made (i) in cash or by personal or certified check, (ii) by
          delivery of stock certificates (in negotiable form) representing
          shares of Common Stock that have been owned of record by the Optionee
          for at least six months prior to the date of exercise and that have a
          fair market value on the date of exercise equal to the product of (A)
          the number of Optioned Shares which are being purchased pursuant to
          the exercise of such Option, multiplied by (B) the applicable Option
          Price, (iii) a combination of either of the methods set forth in
          clauses (i) and (ii) above, (iv) if approved by the Company, by
          delivering to the Company a properly executed exercise notice,
          together with a copy of irrevocable instructions to a broker to
          deliver promptly to the Company the amount of sale proceeds necessary
          to pay the purchase price, and, if requested by the Company, reduced
          by the amount of any federal, state or local withholding taxes, or (v)
          in such other consideration as shall be acceptable to the Company.

                    (c) The Company shall issue a stock certificate in the name
          of the Optionee (or such other person exercising the Option in
          accordance with the provisions of Section 10 hereof) for the Optioned
          Shares as soon as practicable

<PAGE>

          after receipt of the Notice and payment of the aggregate Option Price
          for such shares.

               6. No Rights as a Stockholder. The Optionee shall not have any
                  --------------------------
privileges of a stockholder of the Company with respect to any Optioned Shares
until the date of issuance of a stock certificate pursuant to Section 5(c)
hereof.

               7. Adjustments. If the outstanding shares of Common Stock of the
                  -----------
Company are increased, decreased, or exchanged for a different number or kind of
shares or other securities, or if additional shares or new or different shares
or other securities are distributed with respect to such shares of Common Stock
or other securities, through merger, consolidation, sale of all or substantially
all of the property of the Company, reorganization, recapitalization,
reclassification, stock dividend, stock split, reverse stock split or other
distribution with respect to such shares of Common Stock or other securities,
then an appropriate and proportionate adjustment shall be made in (i) the number
and kind of shares or other securities subject to the Option and (ii) the price
for each share or other unit of any other securities subject to the Option
without change in the aggregate purchase price or value as to which such Option
remains exercisable or subject to restrictions. Any adjustment under this
Section 7 shall be made by the Company's Board of Directors, whose determination
as to what adjustments shall be made and the extent thereof will be final,
binding and conclusive; provided that any such adjustment shall be no less
favorable to the Optionee than adjustments made to similar options issued to the
Company's officers or directors. No fractional interests will be issued under
this Section 7 resulting from any such adjustment.

               8. Additional Provisions Related to Exercise. (a) The Option
                  -----------------------------------------
shall be exercisable only on such date or dates and during such period and for
such number of shares of Common Stock as are set forth in this Agreement.

                    (b) To exercise the Option, the Optionee shall follow the
               procedures set forth in Section 5 hereof. Unless at the time of
               exercise of the Option there shall be, in the opinion of counsel
               for the Company, a valid and effective registration statement
               under the Securities Act of 1933 (the "`33 Act") and appropriate
               qualification and registration under applicable state securities
               laws relating to the Optioned Shares being acquired pursuant to
               the Option, the Optionee shall be required, upon exercise of the
               Option, to give to the Company a written representation, in a
               form reasonably satisfactory to the Company, that he is acquiring
               the Optioned Shares for his own account for investment and not
               with a view to, or for sale in connection with, the resale or
               distribution of any such shares. The Optionee shall be further
               required to agree that he will not sell or transfer any Optioned
               Shares acquired pursuant to exercise of the Option until he
               requests and receives an opinion of the Company's counsel to the
               effect that such proposed sale or transfer will not result in a
               violation of the `33 Act, or a registration statement covering
               the sale or transfer of the shares has been declared effective by
               the Securities and Exchange Commission, or he obtains a no-action
               letter from the Securities and Exchange Commission with respect
               to the proposed transfer.

<PAGE>

                    (c) Stock certificates representing shares of Common Stock
               acquired upon the exercise of this Option shall bear the
               following legend:

               THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD, OFFERED
          FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE
          ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE
          SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL IN FORM AND
          SUBSTANCE SATISFACTORY TO THE COMPANY THAT SUCH SALE, OFFER FOR SALE,
          PLEDGE, HYPOTHECATION OR OTHER DISPOSITION DOES NOT VIOLATE THE
          PROVISIONS OF SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH
          ACT.

               9. No Evidence of Employment or Service. Nothing contained in
                  ------------------------------------
this Option Agreement shall confer upon the Optionee any right to employment by
the Company.

               10. Restriction on Transfer. The Option may not be transferred,
                  ------------------------
pledged, assigned, hypothecated or otherwise disposed of in any way by the
Optionee, except by will or by the laws of descent and distribution or as may
otherwise be required by law, and may be exercised during the lifetime of the
Optionee only by the Optionee. If the Optionee dies, the Option shall thereafter
be exercisable, during the period specified in Sections 3 and 4 hereof, by his
executors or administrators to the full extent to which the Option was
exercisable by the Optionee at the time of his death. The Option shall not be
subject to execution, attachment or similar process. Any attempted assignment,
transfer, pledge, hypothecation or other disposition of the Option contrary to
the provisions hereof, and the levy of any execution, attachment or similar
process upon the Option, shall be null and void and without effect.

               11. Notices. All notices or other communications which are
                  --------
required or permitted hereunder shall be in writing and sufficient if (i)
personally delivered, (ii) sent by nationally-recognized overnight courier or
(iii) sent by registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:

               If to the Optionee, to the address set forth on the signature
page hereto; and

               If to the Company, to:

                             Memry Corporation
                             3 Berkshire Blvd.
                             Bethel, Connecticut  06801
                             Attention:  Secretary

or to such other address as the party to whom notice is to be given may have
furnished to each other party in writing in accordance herewith. Any such
communication shall be deemed to have been given (i) when delivered, if
personally delivered or if sent by nationally-recognized overnight courier, and
(ii) on the third Business Day (as hereinafter defined) following the date on
which the piece of mail containing such communication is posted, if sent by
mail. As used

<PAGE>

herein, "Business Day" means a day that is not a Saturday, Sunday or a day on
which banking institutions in the city to which the notice or communication is
to be sent are not required to be open.

               12. Taxes. Whenever shares of Common Stock are to be delivered to
                   -----
the Optionee upon exercise of the Option, the Company shall be entitled to
require as a condition of delivery that the Optionee remit or, in appropriate
cases, agree to remit when due, an amount sufficient to satisfy all current or
estimated future federal, state and local withholding tax and employment tax
requirements relating thereto.

               13. No Waiver. No waiver of any breach or condition of this
                   ---------
Agreement shall be deemed to be a waiver of any other or subsequent breach or
condition, whether of like or different nature.

               14. Optionee Undertaking. The Optionee hereby agrees to take
                   --------------------
whatever additional actions and execute whatever additional documents the
Company may in its reasonable judgment deem necessary or advisable in order to
carry out or effect one or more of the obligations or restrictions imposed on
the Optionee pursuant to the express provisions of this Agreement.

               15. Modification of Rights. The rights of the Optionee are
                   ----------------------
subject to modification and termination in certain events as provided in this
Agreement.

               16. Governing Law. This Agreement shall be governed by, and
                   -------------
construed in accordance with, the laws of the State of Delaware applicable to
contracts made and to be wholly performed therein.

               17. Counterparts. This Agreement may be executed in one or more
                   ------------
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same instrument.

               18. Interpretation. The Company shall have the power to interpret
                   --------------
and administer this Option Agreement and to make any determination and take any
action that the Company deems necessary for the administration of this
Agreement, and any such interpretation, determinations or action shall be
binding on the Company and the Optionee.

               19. Entire Agreement. This Agreement constitutes the entire
                   ----------------
agreement between the parties with respect to the subject matter hereof, and
supersedes all previously written or oral negotiations, commitments,
representations and agreements with respect thereto.

<PAGE>

               IN WITNESS WHEREOF, the parties hereto have executed this Option
Agreement as of the date first written above.

                                          MEMRY CORPORATION

                                 By: /s/ James G. Binch
                                     -------------------------------------------
                                 Name:  James G. Binch
                                 Title: Chairman & CEO

                                          OPTIONEE:

                                     /s/ Robert J. Thatcher
                                 -----------------------------------------------
                                 Robert J. Thatcher
                                 Address: 76 Old Trolley Road
                                          Ridgefield, Connecticut<PAGE>

                                                                     EXHIBIT 4.2

     THE SALE AND ISSUANCE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
     HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
     "ACT"), OR UNDER THE SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION.
     THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO,
     OR IN CONNECTION WITH, THE DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT
     BE OFFERED, SOLD, PLEDGED, OR TRANSFERRED UNLESS (I) A REGISTRATION
     STATEMENT UNDER THE ACT IS IN EFFECT AS TO THESE SECURITIES AND SUCH OFFER,
     SALE, PLEDGE, OR TRANSFER IS IN COMPLIANCE WITH APPLICABLE SECURITIES LAW
     OF ANY STATE OR OTHER JURISDICTION OR (II) THERE IS AN OPINION OF COUNSEL
     OR OTHER EVIDENCE, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION THEREFROM
     IS AVAILABLE AND THAT SUCH OFFER, SALE, PLEDGE, OR TRANSFER IS IN
     COMPLIANCE WITH APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER
     JURISDICTION.

   No. 02-05                         Warrant to Purchase 50,000 Shares of Common
                                                   Stock (subject to adjustment)

           WARRANT TO PURCHASE COMMON STOCK, PAR VALUE $0.01 PER SHARE

                                       of

                                MEMRY CORPORATION

                            Void after April 3, 2007

     This certifies that, for value received, ipCapital Group, Inc. (the
"Holder"), is entitled, subject to the terms set forth below, to purchase from
 ------
Memry Corporation (the "Company"), 50,000 shares of the Common Stock, par value
                        -------
$0.01 per share ("Common Stock"), of the Company, as constituted on the date
                  ------------
hereof, upon surrender hereof, at the principal office of the Company referred
to below, with the Notice of Exercise form attached hereto as Annex I duly
                                                              -------
executed, and simultaneous payment therefor in lawful money of the United States
or otherwise as hereinafter provided, at the "Exercise Price" as set forth in
                                              --------------
Section 2 below. The number, character and Exercise Price of such shares of
Common Stock are subject to adjustment as provided below. The term "Warrant" as
                                                                    -------
used herein shall include this Warrant and any warrants delivered in
substitution, replacement or exchange therefor as provided herein.

     1. Term of Warrant. Subject to the terms and conditions set forth herein,
this Warrant shall be exercisable, in whole or in part, during the term
commencing on the date hereof and ending at 5:00 p.m., prevailing local time in
Stamford, Connecticut, on April 3, 2007, and shall be void thereafter.

<PAGE>

     2. Exercise Price. The Exercise Price at which this Warrant may be
exercised shall be $1.25 per share of Common Stock, as adjusted from time to
time pursuant to Section 11 hereof.

     3. Exercise of Warrant.

          a. The purchase rights represented by this Warrant shall be
exercisable by the Holder in whole or in part at any time or from time to time
during the term hereof by the surrender of this Warrant and the Notice of
Exercise attached as Annex I hereto duly completed and executed on behalf of the
                     -------
Holder, at the principal office of the Company (or such other office or agency
of the Company as it may designate by notice in writing to the Holder at the
address of the Holder appearing on the books of the Company), upon payment of
the Exercise Price by certified or bank check payable in cash to the order of
the Company.

          b. This Warrant shall be deemed to have been exercised immediately
prior to the close of business on the date of its surrender for exercise as
provided above, and the person entitled to receive the shares of Common Stock
issuable upon such exercise shall be treated for all purposes as the holder of
record of such shares as of the close of business on such date. As promptly as
practicable on or after such date and in any event within ten (10) days
thereafter, the Company, at its expense, shall issue and deliver to the person
or persons entitled to receive the same, a certificate or certificates for the
number of shares issuable upon such exercise. In the event that this Warrant is
exercised in part, the Company, at its expense, shall, simultaneously with the
delivery described in the immediately preceding sentence, execute and deliver a
new Warrant of like tenor exercisable for the number of shares for which this
Warrant may then be exercised.

     4. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this
Warrant. In lieu of any fractional share to which the Holder would otherwise be
entitled, the Company shall make a cash payment equal to the fair market value
of one share of Common Stock multiplied by such fraction.

     5. Replacement of Warrant. On receipt of evidence reasonably satisfactory
to the Company of the loss, theft, destruction or mutilation of this Warrant
and, in the case of loss, theft or destruction, on delivery of an indemnity
agreement reasonably satisfactory in form and substance to the Company or, in
the case of mutilation, on surrender and cancellation of this Warrant, the
Company at its expense shall execute and deliver, in lieu of this Warrant, a new
warrant of like tenor and amount.

     6. Rights of Stockholders. Subject to Sections 9 and 11 hereof, the Holder
shall not be entitled to vote or receive dividends or be deemed the holder of
Common Stock or any other securities of the Company that may at any time be
issuable on the exercise hereof for any purpose, nor shall anything contained
herein be construed to confer upon the Holder, as such, any of the rights of a
stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action (whether upon any recapitalization,
issuance of stock, reclassification of stock, change of par value, or change of
stock to no par value, consolidation,

                                      -2-

<PAGE>

merger, conveyance, or otherwise) or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until this Warrant shall
have been exercised as provided herein.

     7. Registration of Warrant; Securities Law Matters.

          a. Warrant Register. The Company shall maintain a register (the
"Warrant Register") containing the address of the Holder. The Holder may change
 ----------------
its address as shown on the Warrant Register by written notice to the Company
requesting such change. Any notice or written communication required or
permitted to be given to the Holder may be delivered or given by mail to such
Holder as shown on the Warrant Register and at the address shown on the Warrant
Register. The Company may treat the Holder as shown on the Warrant Register as
the absolute owner of this Warrant for all purposes, notwithstanding any notice
to the contrary.

          b. Compliance with Securities Laws.

               i.   The Holder of this Warrant, by acceptance hereof,
                    acknowledges that this Warrant is being acquired solely for
                    the Holder's own account and not as a nominee for any other
                    party, and for investment, and that the Holder shall not
                    offer, sell or otherwise dispose of this Warrant, except
                    under circumstances that will not result in a violation of
                    the Act or any state securities laws.

               ii.  All shares of Common Stock issued upon exercise hereof shall
                    be stamped or imprinted with legends in substantially the
                    following form (in addition to any legend required by state
                    securities laws):

     THE SALE AND ISSUANCE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
     HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
     "ACT"), OR UNDER THE SECURITIES LAW OF ANY STATE OR OTHER JURISDICTION.
     THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO,
     OR IN CONNECTION WITH, THE DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT
     BE OFFERED, SOLD, PLEDGED, OR TRANSFERRED UNLESS (I) A REGISTRATION
     STATEMENT UNDER THE ACT IS IN EFFECT AS TO THESE SECURITIES AND SUCH OFFER,
     SALE, PLEDGE, OR TRANSFER IS IN COMPLIANCE WITH APPLICABLE SECURITIES LAW
     OF ANY STATE OR OTHER JURISDICTION OR (II) THERE IS AN OPINION OF COUNSEL
     OR OTHER EVIDENCE, SATISFACTORY TO THE COMPANY, THAT AN EXEMPTION THEREFROM
     IS AVAILABLE AND THAT SUCH OFFER, SALE, PLEDGE, OR TRANSFER IS IN
     COMPLIANCE WITH APPLICABLE SECURITIES LAW OF ANY STATE OR OTHER
     JURISDICTION.

          c. Restriction on Transfer. This Warrant may not be transferred,
assigned or otherwise disposed of, in whole or in part, except in compliance
with all of the provisions of this Section 7. Any transfer in violation of this
Section 7 shall be void ab initio.

                                      -3-

<PAGE>

          d. Procedures for Transfer. Subject to compliance with this Section 7,
this Warrant may be transferred by the Holder, in whole or in part, without
charge to the Holder, upon surrender of this Warrant with a properly executed
Notice of Assignment (in the form of Annex II hereof) at the principal office of
                                     --------
the Company. Upon such compliance and receipt, the Company promptly will issue
to the assignee specified therein a Warrant in this form for the number of
shares of Common Stock specified in such assignment (and, if such assignment is
with respect to less than all of the rights covered hereby, promptly will issue
to the Holder a new Warrant, in this form, for any remaining rights represented
hereby).

     8. Reservation of Stock. The Company covenants that during the term that
this Warrant is exercisable, the Company shall reserve (i) from its authorized
and unissued Common Stock a sufficient number of shares to provide for the
issuance of Common Stock upon the exercise of all or any portion of this
Warrant, and (ii) from its authorized and unissued Common Stock, a sufficient
number of shares to provide for the issuance of Common Stock upon the conversion
of the shares of Common Stock acquired and/or acquirable upon the exercise
hereof into Common Stock and, from time to time, shall take all steps necessary
to amend its Certificate of Incorporation, as amended (the "Certificate"), to
                                                            -----------
provide sufficient reserves of shares of Common Stock issuable upon exercise of
the Warrant and Common Stock issuable upon the conversion of shares of Common
Stock acquired and/or acquirable hereby. The Company further covenants that all
shares which may be issued upon the exercise of the rights represented by this
Warrant and payment of the Exercise Price, all as set forth herein, will be free
from all taxes, liens and charges in respect of the issue thereof (other than
taxes in respect of any transfer occurring contemporaneously or otherwise
specified herein). The Company agrees that its issuance of this Warrant shall
constitute full authority to its officers who are charged with the duty of
executing stock certificates to execute and issue the necessary certificates for
shares of Common Stock upon the exercise of this Warrant.

     9. Certificates of Adjustment; Notices.

          a. Whenever the Exercise Price or number or type of shares purchasable
hereunder shall be adjusted or readjusted pursuant to Section 11 hereof, the
Company shall issue a certificate signed by its Chief Financial Officer setting
forth, in reasonable detail, the event requiring the adjustment or readjustment,
the amount of the adjustment or readjustment, the method by which such
adjustment was calculated and the Exercise Price and number of shares
purchasable hereunder after giving effect to such adjustment and the amount, if
any, of other property that at the time would be received upon exercise of the
Warrant, all after giving effect to such adjustment or readjustment. A copy of
such certificate to be mailed to the Holder of this Warrant in accordance with
Section 13 hereof.

          b. In the event:

               i.   that the Company shall take a record of the holders of its
                    Common Stock (or other stock or securities at the time
                    receivable upon the exercise of this Warrant) for the
                    purpose of entitling them to receive any dividend or other
                    distribution, or any right to subscribe for or purchase any
                    shares of stock of any class or any other securities, or to
                    receive any other right;

                                      -4-

<PAGE>

               ii.  of any capital reorganization of the Company, any
                    reclassification of the capital stock of the Company, any
                    consolidation or merger of the Company with or into another
                    corporation, or any conveyance of all of substantially all
                    of the assets of the Company to another corporation; or

               iii. of any voluntary dissolution, liquidation or winding-up of
                    the Company,

then, and in each such case, the Company shall mail or cause to be mailed to the
Holder a notice specifying, as the case may be, (A) the date on which a record
is to be taken for the purposes of such dividend, distribution or right, and
stating the amount and character of such dividend, distribution or right, or (B)
the date on which such reorganization, reclassification, consolidation, merger,
conveyance, dissolution, liquidation or winding-up is to take place, and the
time, if any is to be fixed, as of which the holders of record of Common Stock
(or such other stock or securities at the time receivable upon the exercise of
this Warrant) shall be entitled to exchange their shares of Common Stock (or
such other stock or securities) for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation or winding-up. Such notice shall be mailed at least
twenty (20) days prior to the date therein specified for the occurrence of any
of the foregoing events.

          c. All such notices, advice and communications shall be given in the
manner set forth in Section 13 hereof.

     10. Amendments. This Warrant or any term of provision hereof may not be
amended without the written consent of the Company and the Holder.

     11. Adjustments. The Exercise Price and the number and type of shares
purchasable hereunder are subject to adjustment from time to time as follows:

          a. Merger, Sale of Assets, etc. If at any time while this Warrant or
any portion hereof is outstanding and unexpired, there shall be (i) a
reorganization (other than a combination, reclassification, exchange or
subdivision of shares otherwise provided for herein), (ii) a merger or
consolidation of the Company with or into another corporation in which the
Company is not the surviving entity and by which the shares of the Company's
capital stock outstanding immediately prior to the merger are converted by
virtue of the merger into other property, whether in the form of securities,
cash, or otherwise, or (iii) a sale or transfer of the Company's properties and
assets as, or substantially as, an entirety to any other person, then, as a part
of such reorganization, merger, consolidation, sale or transfer, lawful
provision shall be made so that the holder of this Warrant thereafter shall be
entitled to receive upon exercise of this Warrant, during the period specified
herein and upon payment of the Exercise Price then in effect, the number of
shares of stock or other securities or property of the successor corporation
resulting from such reorganization, merger, consolidation, sale or transfer
which a holder of the shares deliverable upon exercise of this Warrant would
have been entitled to receive in such reorganization, consolidation, merger,
sale or transfer if this Warrant had been exercised immediately before such
reorganization, consolidation, merger, sale or transfer, all subject to further
adjustment as provided in this Section 11. The foregoing provisions of this
Section 11.a similarly shall apply to successive reorganizations,
consolidations, mergers, sales and transfers and to the stock or securities of
any other corporation that are at the time receivable upon the exercise of this

                                      -5-

<PAGE>

Warrant. If the per-share consideration payable to the Holder for shares in
connection with any such transaction is in a form other than cash or marketable
securities, then the value of such consideration shall be determined in good
faith by the Company's Board of Directors. In all events, appropriate adjustment
(as determined in good faith by the Company's Board of Directors) shall be made
in the application of the provisions of this Warrant such that the rights and
interest of this Warrant shall be applicable after that event, as near as
reasonably may be, in relation to any shares or other property deliverable after
that event upon exercise of this Warrant.

          b. Reclassification, etc. If the Company, at any time while this
Warrant or any portion hereof remains outstanding and unexpired, by
reclassification of securities or otherwise, shall change any of the securities
as to which purchase rights under this Warrant exist into the same or a
different number of securities of any other class or classes, this Warrant
thereafter shall represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect
to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise
Price therefor shall be adjusted appropriately, all subject to further
adjustment as provided in this Section 11.

          c. Split, Subdivision or Combination of Shares. If the Company at any
time while this Warrant or any portion hereof remains outstanding and unexpired,
shall split, subdivide or combine the securities as to which purchase rights
under this Warrant exist, into a different number of securities of the same
class, the Exercise Price for such securities shall be decreased
proportionately, and the number of shares of such securities for which this
Warrant may be exercised shall be increased proportionately, in the case of a
split or subdivision, or the Exercise Price for such securities shall be
increased proportionately and the number of shares of such securities for which
this Warrant may be exercised shall be decreased proportionately, in the case of
a combination.

          d. No Impairment. The Company, by amendment of its Certificate of
Incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
shall not avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but shall at all
times in good faith assist in the carrying out of all the provisions of this
Section 11 and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder of this Warrant against
impairment.

     12. Governing Law. This Warrant shall be governed by and construed in
accordance with the laws of the State of Connecticut.

     13. Notices, etc. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail, postage prepaid, or otherwise delivered by hand or by messenger,
addressed (i) if to the Holder at 100 Cornerstone Drive, Suite 325, Williston,
Vermont 05495 or at such other address as the Holder shall have furnished to the
Company in writing, or (ii) if to the Company, to 3 Berkshire Boulevard, Bethel,
Connecticut 06801, Attention: Chairman and CEO, or at such other address as the
Company shall have furnished to the Holder. Such notices or communications shall
be

                                      -6-

<PAGE>

deemed given if personally delivered, on the date of delivery by hand or by
messenger, or three (3) days after mailing if send by mail as set forth herein.

     14. Delays or Omissions. No delay or omission to exercise any right, power,
or remedy accruing to the Holder upon any breach or default under this Warrant
shall be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent, or approval of any kind or
character on the part of the Holder of any breach or default under this Warrant,
or any waiver on the part of any party of any provisions or conditions of this
Warrant, must be in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either under this Warrant
or by law or otherwise afforded to the Holder shall be cumulative and not
alternative.

     15. Severability. If any provision of this Warrant is held to be
unenforceable under applicable law, then such provision shall be excluded from
this Warrant and the balance of this Warrant shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its
terms. A court of competent jurisdiction, in its discretion, may substitute for
the excluded provision an enforceable provision which in economic substance
reasonably approximates the excluded provision.

     16. Pronouns. All pronouns and any variations thereof refer to the
masculine, feminine or neuter, singular or plural, as the identity of the person
or persons may require.

                     [Signature page follows on next page]

                                      -7-

<PAGE>

             [Signature Page to Memry Corporation Warrant No. 02-05]

Executed effective on this 3rd day of April, 2002.

                                        MEMRY CORPORATION

                                        By:  /s/ James G. Binch
                                            ------------------------------------
                                            Name:  James G. Binch
                                            Title: Chairman & CEO

<PAGE>

                                     ANNEX I

                               NOTICE OF EXERCISE
                               ------------------

To: Memry Corporation

(1) The undersigned hereby irrevocably elects to purchase       shares of Common
                                                          -----
Stock of Memry Corporation, a Delaware corporation, pursuant to the terms of the
attached Warrant, and tenders herewith payment of the purchase price for such
shares in full.

(2) In exercising this Warrant, the undersigned hereby confirms and acknowledges
that the shares of Common Stock to be issued are being acquired solely for the
account of the undersigned and not as a nominee for any other party, and for
investment, and that the undersigned shall not offer, sell or otherwise dispose
of any such shares of Common Stock except under circumstances that will not
result in a violation of the Securities Act of 1933, as amended, or any state
securities laws.

(3) Please issue a new Warrant for the unexercised portion of the attached
Warrant (if any) in the name of the undersigned.

Dated:
       ---------------------

                                        ipCapital Group, Inc.

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

<PAGE>

                                    ANNEX II

                              NOTICE OF ASSIGNMENT
                              --------------------

     FOR VALUE RECEIVED ipCapital Group, Inc. hereby sells, assigns and
transfers all of the rights of the undersigned under the attached Warrant with
respect to the number of Warrants set forth below.

Name of Assignee       Address of Assignee        Number of Warrants Transferred

Date:                  Signature:
      -------------               ---------------------------

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