Document:

exv10w17

Exhibit 10.17

FORM OF

RESTRICTED STOCK UNIT AWARD AGREEMENT

WITH RESPECT TO SHARES OF

FLORIDA EAST COAST INDUSTRIES, INC.

     This Restricted Stock Unit Award Agreement (this “RSU Agreement”), dated as of
October 1, 2009, is made by and between Florida East Coast Industries, Inc., a Florida
corporation (the “Company”), and                                          (the
“Grantee”). Capitalized terms not defined herein where they first occur shall have the
meaning ascribed to them in the last Section hereof. Except in the definition of “Change of
Control,” where the context permits, references to the Company shall include any successor to the
Company.

1. Grant of Restricted Stock Units. The Company hereby grants to the Grantee
                                         restricted stock units (the “RSUs”) with respect to shares of the
common stock, par value $0.01, of the Company (“FECI Shares”), subject to all of the terms
and conditions of this RSU Agreement.

2. Form and Time of Payment.

     (a) Subject to all the provisions of this RSU Agreement, each RSU granted hereunder shall
represent the right to receive a FECI Share, or, if the Company is prohibited at the relevant time
by a credit or similar agreement from issuing equity securities to any persons or entities other
than Iron Horse Acquisition Holding LLC or any successor thereto (“Iron Horse”) and the
Fortress Entities, a limited liability interest of Iron Horse (hereinafter, an “Iron Horse
Interest”) having a fair market value equal to the fair market value of a FECI Share) (in each
case, as determined by the Board of Directors of the Company (the “Board”), in its good
faith discretion).

     (b) The property required to be delivered pursuant to this Section 2 shall be delivered to the
Grantee as soon as practicable after the relevant portion of the RSU grant becomes vested and
nonforfeitable in accordance with the vesting schedule and provisions set forth in Exhibit A
hereto, in settlement of the RSUs comprising such vested portion, but in no event later than two
and one-half (2-1/2) months following the end of the calendar year in which such portion becomes
vested and nonforfeitable (even if a termination of employment occurs after vesting and before
delivery).

3. Restrictions.

     (a) Except as otherwise permitted by any agreement between the Grantee and the Company, the
RSUs and their related DERs (as defined in Section 4 hereof) may not be sold, assigned,
transferred, pledged, hypothecated or otherwise disposed of or encumbered and shall be subject to a
risk of forfeiture as described in Sections 3(b) and 4(c), respectively, until the vesting
requirements and any additional requirements or restrictions contained in this RSU Agreement have
been satisfied, terminated or expressly waived by the Company in writing. Unless the Company
determines otherwise, upon any attempt by the Grantee to transfer any RSUs or their related DERs or
any other rights in respect of RSUs, before the lapse of such

 

 

restrictions, such RSUs, related DERs and all of the rights related thereto, shall be
immediately forfeited by the Grantee without payment of any consideration.

     (b) Except as otherwise provided in Exhibit A hereto, if Grantee’s services to the Company
pursuant to the Consulting Agreement entered into between the Company and the Grantee as of the
date hereof (the “Consulting Agreement”) are terminated for any reason (including, without
limitation, the death or Disability of the Grantee), then this RSU Agreement shall terminate and
all rights of the Grantee with respect to RSUs that have not vested shall immediately terminate.
Except as otherwise provided in Exhibit A hereto, the RSUs that are subject to restrictions upon
the date the Grantee’s services are terminated shall be forfeited without payment of any
consideration, and neither the Grantee nor any of his or her successors, heirs, assigns, or
personal representatives shall thereafter have any further rights or interests in such RSUs.

4. No Shareholder Rights; Contingent Dividend Equivalent Rights. Except as provided in
this Section 4, Grantee shall have no rights of a shareholder or equityholder (including, without
limitation, voting rights) under this RSU Agreement unless and until FECI Shares or Iron Horse
Interests are delivered to the Grantee following vesting of Grantee’s RSUs.

     (a) Dividend Equivalent Rights. Subject to the terms and conditions of this
Agreement, the Company hereby grants a “Dividend Equivalent Right” (or “DER”) to
the Grantee with respect to each RSU granted hereunder (the “Related RSU”) and the notional
FECI Share underlying such RSU. Subject to those terms and conditions, the DERs granted hereunder
give the Grantee the right to receive cash payments (the “DER Payments”) on each date
during the “DER Term” (defined below) on which a dividend is paid with respect to the
notional FECI Shares underlying the related RSUs (each such date, a “DER Payment Date”).
The amount of each DER Payment shall be an amount equal to (i) the number of notional FECI Shares
underlying the Related RSUs on the DER Payment Date, multiplied by (ii) the “Per Share Dividend
Amount” (defined below) applicable to the relevant dividend payment date for FECI Shares. No
interest or other earnings will be credited with respect to the DERs.

     (i) “DER Term” means, with respect to a Related RSU, the period commencing as
of the date hereof and ending on the earliest of (i) the date the Consulting Agreement
terminates for any reason, or (ii) the date on which delivery is made with respect to the
vesting of the Related RSU, or (iii) the date on which the Related RSU is forfeited.

     (ii) “Per Share Dividend Amount” means the amount per share of any ordinary
dividend paid during the DER Term which is paid to the holders of FECI Shares (as declared
from time to time by the Board).

     (b) Continuance of Services Required. The Grantee’s continued services to the Company
pursuant to the Consulting Agreement through each DER Payment Date is a condition to the Grantee’s
receipt of that particular DER Payment and the Grantee’s continued rights and benefits under the
DERs.

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     (c) Effect of Termination of the Consulting Agreement on Payment or Forfeiture of the
Related RSUs. If the Consulting Agreement terminates before a DER Payment Date hereunder
(regardless of the reason for such termination of the Consulting Agreement, whether with or without
Cause, voluntarily or involuntarily, or due to death or Disability), the DERs shall terminate and
be extinguished and forfeited upon the date the Consulting Agreement terminates and no DER Payment
shall be made with respect to the relevant DER Payment Date or any subsequent DER Payment Date. If
a portion or all of the Related RSUs become vested and delivery is made with respect to such vested
Related RSUs (or a portion or all of the Related RSUS are forfeited prior to becoming vested), the
DERs with respect to such portion or all of the Related RSUs shall terminate and be extinguished
and forfeited upon the first to occur of the date on which the Related RSUs are forfeited or the
date on which delivery with respect to the Related RSUs is made, and no DER Payment with respect to
such DERs shall be made after such date.

	5.	 	Legend on Certificates. Each certificate issued to the Grantee upon written request
to the Company or Iron Horse (as applicable) representing Issued Securities issued hereunder
shall bear the following (or substantially equivalent) legends on the face or reverse side
thereof:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A RESTRICTED
STOCK UNIT AWARD AGREEMENT DATED AS OF OCTOBER 1, 2009, BETWEEN
                                                             AND FLORIDA EAST COAST INDUSTRIES, INC., A COPY
OF WHICH IS ON FILE WITH THE SECRETARY OF [entity to be inserted], AND THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE VOTED, TRANSFERRED,
SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS SUCH
VOTING, TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER
DISPOSITION COMPLIES WITH THE PROVISIONS OF SUCH AGREEMENT.

Any security certificate issued at any time in exchange or substitution for any certificates
bearing such legends (except a new certificate issued upon the completion of a public distribution
of Issued Securities represented thereby) shall also bear such (or substantially equivalent)
legends, unless the Issued Securities represented by such certificate are no longer subject to the
provisions of this RSU Agreement and, in the opinion of counsel for the Company or Iron Horse, as
applicable, the Issued Securities represented thereby need no longer be subject to restrictions
pursuant to the Act or applicable state securities law. The Company and Iron Horse shall not be
required to transfer on their books any certificate for Issued Securities in violation of the
provisions of this RSU Agreement.

6. Restrictive Covenants. The Grantee acknowledges that, during the term of the Consulting
Agreement, the Grantee shall have access to secret and confidential information, knowledge or data
relating to the Company and its affiliates, and their respective businesses, and

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will meet and develop relationships with potential and existing suppliers, financing sources,
clients, customers and employees of the Company and its affiliates.

     (a) Nonsolicitation. The Grantee agrees that during the period of the Consulting
Agreement and for the one (1) year period immediately following termination of such agreement by
either party (whether or not for Cause), the Grantee shall not:

     (i) directly or indirectly, engage in the recruiting, soliciting or inducing of any
nonclerical employee of the Company or its affiliates to terminate their employment with, or
otherwise cease their relationship with, the Company or any of its affiliates, or in hiring
or assisting another Person to hire any nonclerical employee of the Company or any of its
affiliates or any Person who within six months before had been a nonclerical employee of the
Company or any of its affiliates and was recruited or solicited for such employment or other
retention while an employee of the Company or any of its affiliates (other than any of the
foregoing activities engaged in with the prior written approval of the Company); or

     (ii) directly or indirectly solicit, induce or encourage or attempt to persuade any
agent, consultant, supplier or customer of the Company or any affiliate of the Company to
terminate such agency or business relationship.

     (b) Disparaging Comments. The Grantee agrees that during the term of the Consulting
Agreement and thereafter, the Grantee shall not make any disparaging or defamatory comments
regarding the Company or any of its affiliates or Iron Horse or any of its affiliates or, after
termination of the Consulting Agreement, make any comments concerning any aspect of the termination
of their relationship. The obligations of the Grantee under this paragraph shall not apply to
disclosures required by applicable law, regulation or order of any court or governmental agency.

Nothing contained in this Section 6 shall limit any common law or statutory obligation that the
Grantee may have to the Company or any of its affiliates. For purposes of this Section 6, “the
Company” refers to the Company and any incorporated or unincorporated affiliates of the Company,
including any successor to the Company.

     (c) Confidentiality Covenant. During the term of the Consulting Agreement and
thereafter, the Grantee will hold and keep confidential all secret and confidential information,
knowledge or data relating to the Company and its affiliates, and their respective businesses,
including any confidential information as to customers of the Company and its affiliates (i)
obtained by the Grantee while providing services to the Company or its affiliates and (ii) not
otherwise public knowledge or known within the applicable industry. The Grantee shall not, without
prior written consent of the Company, unless compelled pursuant to the order of a court or other
governmental or legal body having jurisdiction over such matter, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those designated by it. In the
event the Grantee is compelled by order of a court or other governmental or legal body to
communicate or divulge any such information, knowledge or data to anyone other than the foregoing,
the Grantee will promptly notify the Company of any such order and will cooperate fully with the
Company in protecting such information to the extent possible

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under applicable law. Upon termination of the Consulting Agreement, or at any time as the
Company may request, the Grantee will promptly deliver to the Company, as requested, all documents
(whether prepared by the Company, an affiliate of the Company, the Grantee or a third party)
relating to the Company, an affiliate of the Company or any of their businesses or property which
the Grantee may possess or have under the Grantee’s direction or control.

     (d) Acknowledgment. The Grantee agrees and acknowledges that each restrictive
covenant in this Section 6 is reasonable as to duration, terms and geographical area and that the
same protects the legitimate interests of the Company and its affiliates, imposes no undue hardship
on the Grantee, is not injurious to the public, and that, notwithstanding any provision in this RSU
Agreement to the contrary, any violation of this restrictive covenant shall be specifically
enforceable in any court of competent jurisdiction. The Grantee agrees and acknowledges that a
portion of the compensation provided to the Grantee under this RSU Agreement will be provided in
consideration of the covenants contained in this Section 6, the sufficiency of which consideration
is hereby acknowledged. If any provision of this Section 6 as applied to the Grantee or to any
circumstance is adjudged by a court with competent jurisdiction to be invalid or unenforceable, the
same shall in no way affect any other circumstance or the validity or enforceability of any other
provisions of this Section 6. If the scope of any such provision, or any part thereof, is too
broad to permit enforcement of such provision to its full extent, the Grantee agrees that the court
making such determination shall have the power to reduce the duration and/or area of such
provision, and/or to delete specific words or phrases, and in its reduced form, such provision
shall then be enforceable and shall be enforced. The Grantee agrees and acknowledges that the
breach of this Section 6 will cause irreparable injury to the Company and upon breach of any
provision of this Section 6, the Company shall be entitled to injunctive relief, specific
performance or other equitable relief by any court with competent jurisdiction without the need to
prove the inadequacy of monetary damages or post a bond; provided, however, that
this shall in no way limit any other remedies which the Company may have (including, without
limitation, the right to seek monetary damages). Each of the covenants in this Section 6 shall be
construed as an agreement independent of any other provisions in this RSU Agreement.

7. No Rights to Continuation of Consulting Agreement. Nothing in this RSU Agreement shall
confer upon the Grantee any right to continue providing services to the Company or any subsidiary
thereof or shall interfere with or restrict the right of the Company or its shareholders (or of a
subsidiary or its shareholders, as the case may be) to terminate the Consulting Agreement any time
for any reason whatsoever, with or without cause.

8. Tax Withholding. It is intended that the Grantee shall be solely responsible for the
withholding and/or payment of any federal, state, local or other taxes, including but not limited
to, estimated taxes and self-employment taxes, as well as any interest or penalties that may be
assessed, imposed or incurred as a result of the compensation paid under this RSU Agreement. The
Grantee may satisfy such obligation by (i) making a cash payment to the Company equal to the amount
of such taxes, (ii) instructing the Company to deduct a number of FECI Shares otherwise issuable in
respect of the RSUs with a fair market value equal to the amount of such taxes or (iii) any other
method acceptable to the Company.

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9. Section 409A Compliance and Equitable Adjustments. The intent of the parties is that
payments and benefits under this RSU Agreement comply with Section 409A of the Internal Revenue
Code of 1986, as amended (the “Code”) to the extent subject thereto, and, accordingly, to
the maximum extent permitted, this RSU Agreement shall be interpreted and be administered to be in
compliance therewith. Notwithstanding anything contained herein to the contrary, to the extent
required in order to avoid accelerated taxation and/or tax penalties under Section 409A of the
Code, the Grantee shall not be considered to have separated from service with the Company for
purposes of this RSU Agreement and no payment shall be due to the Grantee under this RSU Agreement
on account of a separation from service until the Grantee would be considered to have incurred a
“separation from service” from the Company within the meaning of Section 409A of the Code. Any
payments described in this RSU Agreement that are due within the “short-term deferral period” as
defined in Section 409A of the Code shall not be treated as deferred compensation unless applicable
law requires otherwise. Notwithstanding anything to the contrary in this RSU Agreement, to the
extent that any RSUs are payable upon a separation from service and such payment would result in
the imposition of any individual excise tax and late interest charges imposed under Section 409A of
the Code, the settlement and payment of such awards shall instead be made on the first business day
after the date that is six (6) months following such separation from service (or death, if
earlier). In the event of an FECI Change in Capitalization, the Board shall make such equitable
changes or adjustments as it deems necessary or appropriate to the number and kind of securities or
other property (including cash) which may become payable in respect of outstanding RSUs and related
DERs hereunder.

10. Governing Law. This RSU Agreement shall be governed by, interpreted under, and
construed and enforced in accordance with the internal laws, and not the laws pertaining to
conflicts or choices of laws, of the State of Florida applicable to agreements made and to be
performed wholly within the State of Florida.

11. RSU Agreement Binding on Successors. The terms of this RSU Agreement shall be binding
upon Grantee and upon Grantee’s heirs, executors, administrators, personal representatives,
transferees, assignees and successors in interest, and upon the Company and its successors and
assignees.

12. No Assignment. Notwithstanding anything to the contrary in this RSU Agreement, neither
this RSU Agreement nor any rights granted herein shall be assignable by Grantee.

13. Necessary Acts. Grantee hereby agrees to perform all acts, and to execute and deliver
any documents that may be reasonably necessary to carry out the provisions of this RSU Agreement,
including but not limited to all acts and documents related to compliance with federal and/or state
securities and/or tax laws.

14. Severability. Should any provision of this RSU Agreement be held by a court of
competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not
affect the validity of the remainder of this RSU Agreement, the balance of which shall continue to
be binding upon the parties hereto with any such modification (if any) to become a part hereof and
treated as though contained in this original RSU Agreement. Moreover, if one or more of the
provisions contained in this RSU Agreement shall for any reason be held to be excessively broad as
to scope, activity, subject or otherwise so as to be unenforceable, in lieu of

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severing such unenforceable provision, such provision or provisions shall be construed by the
appropriate judicial body by limiting or reducing it or them, so as to be enforceable to the
maximum extent compatible with the applicable law as it shall then appear, and such determination
by such judicial body shall not affect the enforceability of such provisions or provisions in any
other jurisdiction.

15. Entire Agreement. This RSU Agreement contains the entire agreement and understanding
among the parties as to the subject matter hereof.

16. Headings. Headings are used solely for the convenience of the parties and shall not be
deemed to be a limitation upon or descriptive of the contents of any such Section.

17. Counterparts. This RSU Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which together shall be deemed to be one and the
same instrument.

18. Amendment. No amendment or modification hereof shall be valid unless it shall be in
writing and signed by both parties hereto.

19. Definitions. For purposes of this RSU Agreement:

     (a) “Act” means the Securities Act of 1933, as amended.

     (b) An “affiliate” means a Person that directly, or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with, the Person
specified.

     (c) “Applicable Securities” means outstanding equity securities of the Company or Iron
Horse, as the case may be and as the context requires.

     (d) “Beneficial Owner” (or any variant thereof) has the meaning defined in Rule 13d-3
under the Exchange Act.

     (e) “Cause” shall have the meaning assigned to such term in the Consulting Agreement.
In the event that there is a dispute between the Grantee and the Company as to whether “Cause” for
termination exists: (x) such termination shall nonetheless be effective, (y) such dispute shall be
subject to arbitration in Jacksonville, Florida using the commercial rules of the American
Arbitration Association and (z) the payments or deliveries, if any, to be made by the Company in
connection with a sale or purchase of the Applicable Securities held by the Grantee shall be
delayed until the final resolution of such dispute in such arbitration.

     (f) “Change of Control” means an event or series of events as a result of which the
Fortress Entities, collectively, directly or indirectly legally or beneficially own less than fifty
percent (50%) of the voting stock (or other equity interest) of the Company, in each case adjusted
pursuant to any stock (or share) split, stock (or share) dividend, recapitalization or
reclassification of the capital of the Company; provided, however, that a “Change of Control” shall
not be deemed to occur:

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     (i) upon an acquisition, merger, amalgamation, continuation into another jurisdiction
or other business combination involving the Company, including the sale of all or
substantially all of the assets of the Company (each, a “Business Combination”), if
one or more Fortress Entities collectively (I) directly or indirectly legally or
beneficially own at least thirty percent (30%) of the voting stock (or other equity
interest) of the Company or the surviving/acquiring entity, as the case may be, and (II)
continue to be the largest shareholder (or other holder of equity) of the Company or the
surviving/acquiring entity, as the case may be, following such Business Combination, and a
“Change of Control” will not result after any such Business Combination so long as the
conditions set forth in clauses (I) and (II) continue to be satisfied; or

     (ii) (I) upon a Company IPO (without regard to the percentage of voting stock (or other
equity interest) of the Company directly or indirectly legally or beneficially owned by the
Fortress Entities immediately after such Company IPO) or (II) without limiting clause (I),
if at any time following a Company IPO one or more Fortress Entities collectively directly
or indirectly legally or beneficially own at least thirty percent (30%) of the voting stock
(or other equity interest) of the Company and are the largest shareholder (or other holder
of equity) of the Company.

     (g) “Company IPO” means a firmly underwritten public offering pursuant to a
registration statement declared effective under the Exchange Act covering the offer and sale of
shares of stock (or other equity interests) of either the Company or Iron Horse for the account of
the Company or Iron Horse, as the case may be, to the public generally in which the net proceeds to
the Company or Iron Horse, as the case may be, are not less than $100,000,000.

     (h) “Disability” means, as determined by the Board in good faith, the Grantee’s
inability, due to disability or incapacity, to perform all of the Grantee’s duties as may be
assigned from time to time under the Consulting Agreement or any other agreement(s) between the
Company and the Grantee, for (A) periods aggregating one hundred eighty (180) days, whether or not
continuous, in any continuous period of three hundred and sixty five (365) days or, (B) where the
Grantee’s absence is adversely affecting the performance of the Company in a significant manner,
periods greater than ninety (90) days and the Grantee is unable to resume the Grantee’s duties on a
full time basis within ten (10) days after receipt of written notice of the Board’s determination
under this clause (B).

     (i) “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time.

     (j) “FECI Change in Capitalization” means any (i) merger, consolidation,
reclassification, recapitalization, spin-off, spin-out, repurchase or other reorganization or
corporate transaction or event, (ii) dividend (whether in the form of cash, stock, or other
property), stock split or reverse stock split, (iii) combination or exchange of shares, (iv) other
change in corporate structure or (v) declaration of a special dividend (including a cash dividend)
or other distribution, which, in any such case, the Board determines, in its discretion, affects
FECI Shares, such that an equitable adjustment pursuant to Section 9 hereof is required.

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     (k) “Fortress Entity” means any of (i) Fortress Fund V GP L.P. or any affiliate
thereof, (ii) any investment vehicle (whether formed as a private investment fund, stock company,
partnership or otherwise) or managed account managed directly or indirectly by Fortress Investment
Group LLC (“Fortress”) or any of its affiliates, including but not limited to Fortress Fund
V (Fund A) L.P. and its parallel affiliated funds or (iii) any Person of which the majority of its
stock, partnership or membership interests are owned, directly or indirectly, by any Person
described in the sub paragraph (ii) above.

     (l) “Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as
modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include
(i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities
under an employee benefit plan of the Company or any of its Subsidiaries, (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation
owned, directly or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

[signature page follows]

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     IN WITNESS WHEREOF, the parties hereto have executed this RSU Agreement as of the date set
forth above.

	 	 	 	 	 	 	 
	 	 	FLORIDA EAST COAST INDUSTRIES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	 
 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	GRANTEE	 	 	 	 
	 
	 	 	 
	 

	 	Name:	 	 	 	 

[Signature Page to Restricted Stock Unit Award Agreement]

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EXHIBIT A

     Subject to the provisions set forth below, on each date in the column captioned “Vesting Date”
(each such date, a “Vesting Date”), a percentage of the originally granted RSUs (rounded
down to the nearest whole number of RSUs on the first four Vesting Dates) shall vest and become
nonforfeitable as follows:

	 	 	 
	Vesting Date	 	Percentage of Granted RSUs Vesting
	April 1, 2010

	 	Fifty Percent (50%)
	April 1, 2011

	 	Twenty-Five Percent (25%)
	April 1, 2012

	 	Twenty-Five Percent (25%)

subject in each case to the Grantee continuing to provide services to the Company or a subsidiary
of the Company pursuant to the Consulting Agreement through the relevant Vesting Date.

Notwithstanding Section 3(b) of the RSU Agreement and the foregoing provisions of this Exhibit A:

(x) in the event that the Consulting Agreement is terminated by the Company without Cause or
the Consulting Agreement is terminated by reason of the Grantee’s death or Disability, and
the termination of the Grantee’s services is a “separation from service” within the meaning
of Section 409A(a)(2)(A)(i) of the Code, then the RSUs (if any) which are due to vest at the
next Vesting Date shall vest on the date of such termination of employment, subject to the
Grantee’s execution (within forty-five (45) days after the date of such termination) of a
separation agreement prepared by the Company (or such subsidiary) which includes, inter
alia, a general release of claims, which becomes effective in accordance with its terms (in
the event of the Grantee’s death, such agreement and release may be executed by the personal
representative of the Grantee’s estate); and

(y) in the event that the Consulting Agreement is terminated by the Company or such
subsidiary without Cause within twelve (12) months following a Change of Control and the
termination of the Grantee’s services is a “separation from service” within the meaning of
Section 409A(a)(2)(A)(i) of the Code, then one hundred percent (100%) of the RSUs that are
not vested as of the date of such termination shall immediately vest.

If vesting occurs pursuant to clause (x) above, payment with respect to the vested RSUs shall be
made within sixty (60) days following the termination of the Consulting Agreement, except to the
extent that Section 409A(a)(2)(B)(i) of the Code may require that such payment must not be made
until the six (6) month anniversary of the date of such termination.

If vesting occurs pursuant to clause (y) or (z) above, payment with respect to the vested RSUs
shall be made immediately, except to the extent that Section 409A(a)(2)(B)(i) of the Code may
require that such payment must not be made until the six (6) month anniversary of the date of such
termination.exv4w6

Exhibit 4.6

NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN
THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT
OR (B) AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS OR BLUE
SKY LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY.

CARDICA, INC.

WARRANT TO PURCHASE COMMON STOCK

			
	 Warrant No.                     
	 	Original Issue Date: September     , 2009

     CARDICA, INC., a Delaware corporation (the “Company”), hereby certifies that, for value
received,
                
     or its permitted registered
assigns (the “Holder”), is entitled to purchase from the Company up to a
total of              
        shares of common stock, $0.001 par value per share (the “Common Stock”), of the Company (each such share, a
“Warrant Share” and all
such shares, the “Warrant Shares”) at an exercise price per share equal to
$1.45 (as adjusted from time to time as provided in Section 10 herein, the “Exercise Price”), at
any time and from time to time on or after the date that is six (6) months after the date hereof
(the “Trigger Date”) and through and including 5:30 P.M., New
York City time, on September     , 2014
(the “Expiration Date”), and subject to the following terms and conditions:

     1. Series of Warrants. This Warrant (this “Warrant”) is one of a series of similar warrants
issued pursuant to that certain Securities Purchase Agreement, dated September 25, 2009, by and
among the Company and the Purchasers identified therein (the “Purchase Agreement”). All such
warrants are referred to herein, collectively, as the “Warrants.”

     2. Definitions. In addition to the terms defined
elsewhere in this Warrant, capitalized terms
that are not otherwise defined herein have the meanings given to such terms in the Purchase
Agreement.

     3. Registration of Warrants. The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in the name of the record
Holder (which shall include the initial Holder or, as the case may be, any registered assignee to
which this Warrant is permissibly assigned hereunder) from time to time. The Company may deem and
treat the registered Holder of this Warrant as the absolute owner hereof

1.

 

for the purpose of any exercise hereof or any distribution to the Holder, and for all other
purposes, absent actual notice to the contrary.

     4. Registration of Transfers. Subject to the restrictions on transfer set forth in Section 4.1
of the Purchase Agreement and compliance with all applicable securities laws, the Company shall
register the transfer of all or any portion of this Warrant in the Warrant Register, upon surrender
of this Warrant, with the Form of Assignment attached as Schedule 2 hereto duly completed and
signed, to the Company’s transfer agent or to the Company at its address specified in the Purchase
Agreement and delivery, at the request of the Company, of an opinion of counsel reasonably
satisfactory to the Company to the effect that the transfer of such portion of this Warrant may be
made pursuant to an available exemption from the registration requirements of the Securities Act
and all applicable state securities or blue sky laws and delivery by the transferee of a written
statement to the Company certifying that the transferee is an “accredited investor” as defined in
Rule 501(a) under the Securities Act and making the representations and certifications set forth in
Section 3.2(b), (c) and (d) of the Purchase Agreement, to the Company at its address specified in
the Purchase Agreement. Upon any such registration or transfer, a new warrant to purchase Common
Stock in substantially the form of this Warrant (any such new warrant, a “New Warrant”) evidencing
the portion of this Warrant so transferred shall be issued to the transferee, and a New Warrant
evidencing the remaining portion of this Warrant not so transferred, if any, shall be issued to the
transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed
the acceptance by such transferee of all of the rights and obligations of a Holder of a Warrant.

     5. Exercise and Duration of Warrants.

          (a) All or any part of this Warrant shall be exercisable by the registered Holder at any time
and from time to time on or after the Trigger Date and through and including 5:30 P.M., New York
City time, on the Expiration Date. At 5:30 P.M., New York City time, on the Expiration Date, the
portion of this Warrant not exercised prior thereto shall be and become void and of no value and
this Warrant shall be terminated and no longer outstanding; provided, however, that if on the
Expiration Date there is no effective Registration Statement covering the resale of the Warrant
Shares, then this Warrant shall be deemed to have been exercised in full (to the extent not
previously exercised) on a “cashless exercise” basis at 5:30 p.m. New York City time on the
Expiration Date.

          (b) The Holder may exercise this Warrant by delivering to the Company (i) this Warrant and an
exercise notice, in the form attached as Schedule 1 hereto (the “Exercise Notice”), appropriately
completed and duly signed and (ii) payment of the Exercise Price for the number of Warrant Shares
as to which this Warrant is being exercised (which may take the form of a “cashless exercise” if so
indicated in the Exercise Notice and if a “cashless exercise” may occur at such time pursuant to
Section 11 below), and the date such items are delivered to the Company (as determined in
accordance with the notice provisions hereof) is an “Exercise Date.” The delivery by (or on behalf
of) the Holder of the Exercise Notice and the applicable Exercise Price as provided above shall
constitute the Holder’s certification to the Company that its representations contained in
Section 3.2(b), (c) and (d) of the Purchase Agreement are true and correct as of the Exercise Date
as if remade in their entirety (or, in the case of any transferee Holder that is not a party to the
Purchase Agreement, such transferee Holder’s certification to the

2.

 

Company that such representations are true and correct as to such assignee Holder as of the
Exercise Date). If the Warrant Shares are to be issued free of all restrictive legends, the Company
shall, upon the written request of the Holder, use its best efforts to deliver, or cause to be
delivered, Warrant Shares hereunder electronically through The Depository Trust Company or another
established clearing corporation performing similar functions, if available; provided, that, the
Company may, but will not be required to, change its transfer agent if its current transfer agent
cannot deliver Warrant Shares electronically through such a clearing corporation.

          (c) Limitations On Exercises. Notwithstanding anything in this Warrant to the contrary, in
the event that any exercise of this Warrant would result in a Holder becoming the beneficial owner,
directly or indirectly, of more than 19.99% of the aggregate ordinary voting power represented by
issued and outstanding capital stock of the Company (the “Warrant Exercise Cap”), the Company shall
have no obligation to issue and deliver in accordance with the terms hereof any Warrant Shares the
issuance of which causes such Holder to become the beneficial owner, directly or indirectly, of
more than Warrant Exercise Cap.

     6. Delivery of Warrant Shares.

          (a) Upon exercise of this Warrant, the Company shall promptly (but in no event later than
three (3) Trading Days after the Exercise Date) issue or cause to be issued and cause to be
delivered to or upon the written order of the Holder and in such name or names as the Holder may
designate (provided that, if the Holder directs the Company to deliver a certificate for the
Warrant Shares in a name other than that of the Holder or an Affiliate of the Holder, it shall
deliver to the Company on the Exercise Date (i) if the Registration Statement is not effective, an
opinion of counsel reasonably satisfactory to the Company to the effect that the issuance of such
Warrant Shares in such other name may be made pursuant to an available exemption from the
registration requirements of the Securities Act and all applicable state securities or blue sky
laws or (ii) if the Registration Statement is effective, either an opinion of counsel reasonably
satisfactory to the Company to the effect that the issuance of such Warrant Shares in such other
name may be made pursuant to an available exemption from the registration requirements of the
Securities Act and all applicable state securities or blue sky laws or a Certificate of Subsequent
Sale in substantially the form attached as Exhibit I to the Purchase Agreement), a certificate for
the Warrant Shares issuable upon such exercise. The Holder, or any Person permissibly so designated
by the Holder to receive Warrant Shares, shall be deemed to have become the holder of record of
such Warrant Shares as of the Exercise Date. If the Warrant Shares are to be issued free of all
restrictive legends, the Company shall, upon the written request of the Holder, use its best
efforts to deliver, or cause to be delivered, Warrant Shares hereunder electronically through The
Depository Trust Company or another established clearing corporation performing similar functions,
if available; provided, that, the Company may, but will not be required to, change its transfer
agent if its current transfer agent cannot deliver Warrant Shares electronically through such a
clearing corporation.

          (b) If by the close of the third (3rd) Trading Day after
delivery of this Warrant,
a properly completed Exercise Notice and payment of the Exercise Price for the number of Warrant
Shares as to which this Warrant is being exercised (which may take the form of a “cashless
exercise” if so indicated in the Exercise Notice and if a “cashless exercise” may occur at such
time pursuant to Section 11 below) the Company fails to deliver to the Holder the

3.

 

required number of Warrant Shares in the manner required pursuant to Section 6(a), and if
after such third (3 rd ) Trading Day and prior to the receipt of such Warrant Shares,
the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver
in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated
receiving upon such exercise (a “Buy-In”), then the Company shall, within three (3) Trading Days
after the Holder’s request and in the Holder’s sole discretion, either (1) pay in cash to the
Holder an amount equal to the Holder’s total purchase price (including brokerage commissions, if
any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s
obligation to deliver such certificate (and to issue such Warrant Shares) shall terminate or
(2) promptly honor its obligation to deliver to the Holder Warrant Shares and pay cash to the
Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (A) such
number of Warrant Shares, times (B) the closing bid price of a share of Common Stock on the date of
receipt of a properly completed Exercise Notice.

          (c) To the extent permitted by law, the Company’s obligations to issue and deliver Warrant
Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any
action or inaction by the Holder to enforce the same, any waiver or consent with respect to any
provision hereof, the recovery of any judgment against any Person or any action to enforce the
same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder or any other Person of any obligation to the Company or any violation or
alleged violation of law by the Holder or any other Person, and irrespective of any other
circumstance which might otherwise limit such obligation of the Company to the Holder in connection
with the issuance of Warrant Shares. Nothing herein shall limit the Holder’s right to pursue any
other remedies available to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to the Company’s failure to
timely deliver Common Stock upon exercise of this Warrant as required pursuant to the terms hereof.

     7. Charges, Taxes and Expenses. Issuance and delivery of certificates for shares of Common
Stock upon exercise of this Warrant shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of
the issuance of such certificates, all of which taxes and expenses shall be paid by the Company;
provided, however , that the Company shall not be required to pay any tax which may be payable in
respect of any transfer involved in the registration of any certificates for Warrant Shares or
Warrants in a name other than that of the Holder or an Affiliate thereof. The Holder shall be
responsible for all other tax liability that may arise as a result of holding or transferring this
Warrant or receiving Warrant Shares upon exercise hereof.

     8. Replacement of Warrant. If this Warrant is mutilated, lost, stolen or destroyed, the
Company shall issue or cause to be issued in exchange and substitution for and upon cancellation
hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of
evidence reasonably satisfactory to the Company of such loss, theft or destruction (in such case)
and, in each case, a customary and reasonable indemnity and surety bond, if requested by the
Company. Applicants for a New Warrant under such circumstances shall also comply with such other
reasonable regulations and procedures and pay such other reasonable third-party costs as the
Company may prescribe. If a New Warrant is requested as a result of a mutilation of

4.

 

this Warrant, then the Holder shall deliver such mutilated Warrant to the Company as a
condition precedent to the Company’s obligation to issue the New Warrant.

     9. Reservation of Warrant Shares. The Company covenants that it will reserve and keep
available out of the aggregate of its authorized but unissued and otherwise unreserved Common
Stock, solely for the purpose of enabling it to issue Warrant Shares upon exercise of this Warrant
as herein provided, the number of Warrant Shares which are initially issuable and deliverable upon
the exercise of this entire Warrant, free from preemptive rights or any other contingent purchase
rights of persons other than the Holder (taking into account the adjustments and restrictions of
Section 10). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon
issuance and the payment of the applicable Exercise Price in accordance with the terms hereof, be
duly and validly authorized, issued and fully paid and nonassessable. The Company will take all
such action as may be reasonably necessary to assure that such shares of Common Stock may be issued
as provided herein without violation of any applicable law or regulation, or of any requirements of
any securities exchange or automated quotation system upon which the Common Stock may be listed.

     10. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon
exercise of this Warrant are subject to adjustment from time to time as set forth in this Section
10.

          (a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding,
(i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of
capital stock that is payable in shares of Common Stock, (ii) subdivides its outstanding shares of
Common Stock into a larger number of shares, or (iii) combines its outstanding shares of Common
Stock into a smaller number of shares, then in each such case the Exercise Price shall be
multiplied by a fraction, the numerator of which shall be the number of shares of Common Stock
outstanding immediately before such event and the denominator of which shall be the number of
shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to
clause (i) of this paragraph shall become effective immediately after the record date for the
determination of stockholders entitled to receive such dividend or distribution, and any adjustment
pursuant to clause (ii) or (iii) of this paragraph shall become effective immediately after the
effective date of such subdivision or combination.

          (b) Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding,
distributes to all holders of Common Stock (i) evidences of its indebtedness, (ii) any security
(other than a distribution of Common Stock covered by the preceding paragraph), or (iii) any other
asset (in each case, “Distributed Property”), then, upon any exercise of this Warrant that occurs
after the record date fixed for determination of stockholders entitled to receive such
distribution, the Holder shall be entitled to receive, in addition to the Warrant Shares otherwise
issuable upon such exercise (if applicable), the Distributed Property that such Holder would have
been entitled to receive in respect of such number of Warrant Shares had the Holder been the record
holder of such Warrant Shares immediately prior to such record date.

5.

 

          (c) Fundamental Transactions. If, at any time while this Warrant is outstanding (i) the
Company effects any merger or consolidation of the Company with or into another Person, in which
the Company is not the survivor and the stockholders of the Company immediately prior to such
merger or consolidation do not own, directly or indirectly, at least fifty percent (50%) of the
voting securities of the surviving entity, (ii) the Company effects any sale of all or
substantially all of its assets or a majority of its Common Stock is acquired by a third party, in
each case, in one or a series of related transactions, (iii) any tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which all or substantially all
of the holders of Common Stock are permitted to tender or exchange their shares for other
securities, cash or property, or (iv) the Company effects any reclassification of the Common Stock
or any compulsory share exchange pursuant to which the Common Stock is effectively converted into
or exchanged for other securities, cash or property (other than as a result of a subdivision or
combination of shares of Common Stock covered by Section 10(a) above) (in any such case, a
“Fundamental Transaction”), then the Company shall use its commercially reasonable efforts to
ensure that the Holder shall have the right thereafter to receive, upon exercise of this Warrant,
the same amount and kind of securities, cash or property as it would have been entitled to receive
upon the occurrence of such Fundamental Transaction if it had been, immediately prior to such
Fundamental Transaction, the holder of the number of Warrant Shares then issuable upon exercise in
full of this Warrant without regard to any limitations on exercise contained herein (the “Alternate
Consideration”). In the event any successor to the Company, surviving entity or the corporation
purchasing or otherwise acquiring such assets or other appropriate corporation or entity does not
agree to assume this Warrant, then this Warrant shall be deemed exercised in full pursuant to
Section 11 hereof immediately prior to the closing of the Fundamental Transaction and the Holder
shall receive the Alternate Consideration at the closing of such Fundamental Transaction, and the
Warrant shall be terminated and of no further force or effect. The provisions of this paragraph
(c) shall similarly apply to subsequent transactions analogous to a Fundamental Transaction.

          (d) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price
pursuant to paragraph (a) of this Section, the number of Warrant Shares that may be purchased upon
exercise of this Warrant shall be increased or decreased proportionately, so that after such
adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of
Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to
such adjustment.

          (e) Calculations. All calculations under this Section 10 shall be made to the nearest cent or
the nearest share, as applicable.

          (f) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 10,
the Company at its expense will promptly compute such adjustment, in good faith, in accordance with
the terms of this Warrant and prepare a certificate setting forth such adjustment, including a
statement of the adjusted Exercise Price and adjusted number or type of Warrant Shares or other
securities issuable upon exercise of this Warrant (as applicable), describing the transactions
giving rise to such adjustments and showing in detail the facts upon which such adjustment is
based. Upon written request, the Company will promptly deliver a copy of each such certificate to
the Holder and to the Company’s transfer agent.

6.

 

          (g) Notice of Corporate Events. If, while this Warrant is outstanding, the Company (i)
declares a dividend or any other distribution of cash, securities or other property in respect of
its Common Stock, including, without limitation, any granting of rights or warrants to subscribe
for or purchase any capital stock of the Company or any subsidiary, (ii) authorizes or approves,
enters into any agreement contemplating or solicits stockholder approval for any Fundamental
Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs
of the Company, then, except if such notice and the contents thereof shall be deemed to constitute
material non-public information, the Company shall deliver to the Holder a notice of such
transaction at least ten (10) Trading Days prior to the applicable record or effective date on
which a Person would need to hold Common Stock in order to participate in or vote with respect to
such transaction; provided, however, that the failure to deliver such notice or any defect therein
shall not affect the validity of the corporate action required to be described in such notice.

     11. Payment of Exercise Price. The Holder shall pay the Exercise Price in immediately
available funds; provided, however, that if, on any Exercise Date there is not an effective
Registration Statement (as defined in that certain Registration Rights Agreement, of even date
herewith, by and among the Company and the several purchasers signatory thereto ) registering, or
no current prospectus available for, the resale of the Warrant Shares by the Holder, then the
Holder may, in its sole discretion, satisfy its obligation to pay the Exercise Price through a
“cashless exercise”, in which event the Company shall issue to the Holder the number of Warrant
Shares determined as follows:

	 	 	 	 	 
	 

	 	where:	 	 
	 
	 	 	 	 
	X

	 	=
	 	the number of Warrant Shares to be issued to the Holder.
	 
	 	 	 	 
	Y

	 	=
	 	the total number of Warrant Shares with respect to which
this Warrant is being exercised.
	 
	 	 	 	 
	A

	 	=
	 	the average of the Closing Sale Prices of the shares of
Common Stock (as reported by Bloomberg Financial Markets)
for the five (5) Trading Days ending on the date
immediately preceding the Exercise Date.
	 
	 	 	 	 
	B

	 	=
	 	the Exercise Price then in effect for the applicable
Warrant Shares at the time of such exercise.

     For purposes of this Warrant, “Closing Sale Price” means, for any security as of any date, the
last trade price for such security on the principal securities exchange or trading market for such
security, as reported by Bloomberg Financial Markets, or, if such exchange or trading market begins
to operate on an extended hours basis and does not designate the last trade price, then the last
trade price of such security prior to 4:00 P.M., New York City time, as reported by Bloomberg
Financial Markets, or if the foregoing do not apply, the last trade price of such security in the
over-the-counter market on the electronic bulletin board for such security as

7.

 

reported by Bloomberg Financial Markets, or, if no last trade price is reported for such
security by Bloomberg Financial Markets, the average of the bid prices, or the ask prices,
respectively, of any market makers for such security as reported in the “pink sheets” by Pink
Sheets LLC. If the Closing Sale Price cannot be calculated for a security on a particular date on
any of the foregoing bases, the Closing Sale Price of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder. If the Company and the Holder
are unable to agree upon the fair market value of such security, then the Board of Directors of the
Company shall use its good faith judgment to determine the fair market value. The Board of
Directors’ determination shall be binding upon all parties absent demonstrable error. All such
determinations shall be appropriately adjusted for any stock dividend, stock split, stock
combination or other similar transaction during the applicable calculation period.

     For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and
acknowledged that the Warrant Shares issued in a cashless exercise transaction shall be deemed to
have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to
have commenced, on the date this Warrant was originally issued pursuant to the Purchase Agreement
(provided that the Commission continues to take the position that such treatment is proper at the
time of such exercise).

     12. No Fractional Shares. No fractional Warrant Shares will be issued in connection with any
exercise of this Warrant. In lieu of any fractional shares which would, otherwise be issuable, the
number of Warrant Shares to be issued shall be rounded down to the next whole number and the
Company shall pay the Holder in cash the fair market value (based on the Closing Sale Price) for
any such fractional shares.

     13. Notices. Any and all notices or other communications or deliveries hereunder (including,
without limitation, any Exercise Notice) shall be in writing and shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or communication is
delivered via facsimile at the facsimile number specified in the Purchase Agreement prior to 5:30
P.M., New York City time, on a Trading Day, (ii) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the facsimile number
specified in the Purchase Agreement on a day that is not a Trading Day or later than 5:30 P.M., New
York City time, on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by
nationally recognized overnight courier service specifying next business day delivery, or (iv) upon
actual receipt by the party to whom such notice is required to be given, if by hand delivery. The
address and facsimile number of a party for such notices or communications shall be as set forth in
the Purchase Agreement unless changed by such party by two (2) Trading Days’ prior notice to the
other party in accordance with this Section 13.

     14. Warrant Agent. The Company shall serve as warrant agent under this Warrant. Upon thirty
(30) days’ notice to the Holder, the Company may appoint a new warrant agent. Any corporation into
which the Company or any new warrant agent may be merged or any corporation resulting from any
consolidation to which the Company or any new warrant agent shall be a party or any corporation to
which the Company or any new warrant agent transfers substantially all of its corporate trust or
shareholders services business shall be a successor warrant agent under this Warrant without any
further act. Any such successor warrant agent shall

8.

 

promptly cause notice of its succession as warrant agent to be mailed (by first class mail,
postage prepaid) to the Holder at the Holder’s last address as shown on the Warrant Register.

     15. Miscellaneous.

          (a) No Rights as a Stockholder. The Holder, solely in such Person’s capacity as a holder of
this Warrant, shall not be entitled to vote or receive dividends (subject to the effect of such
dividends as set forth in Section 10(a) hereof) or be deemed the holder of share capital of the
Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon
the Holder, solely in such Person’s capacity as the Holder of this Warrant, any of the rights of a
stockholder of the Company or any right to vote, give or withhold consent to any corporate action
(whether any reorganization, issue of stock, reclassification of stock, consolidation, merger,
amalgamation, conveyance or otherwise), receive notice of meetings, receive dividends or
subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which
such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing
contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase
any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company,
whether such liabilities are asserted by the Company or by creditors of the Company.

          (b) Successors and Assigns. Subject to the restrictions on transfer set forth in this Warrant
and in Section 4.1 of the Purchase Agreement, and compliance with applicable securities laws, this
Warrant may be assigned by the Holder. This Warrant may not be assigned by the Company without the
written consent of the Holder except to a successor in the event of a Fundamental Transaction. This
Warrant shall be binding on and inure to the benefit of the parties hereto and their respective
successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be
construed to give to any Person other than the Company and the Holder any legal or equitable right,
remedy or cause of action under this Warrant. This Warrant may be amended only in writing signed by
the Company and the Holder, or their successors and assigns.

          (c) Governing Law; Jurisdiction. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY,
ENFORCEMENT AND INTERPRETATION OF THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF
LAW THEREOF. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND
FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR THE ADJUDICATION OF ANY
DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR
DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS),
AND HEREBY IRREVOCABLY WAIVES, AND AGREES NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING, ANY
CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT. EACH PARTY HEREBY
IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH
SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT
DELIVERY (WITH EVIDENCE OF DELIVERY) TO

9.

 

SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THE PURCHASE AGREEMENT AND AGREES
THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF.
NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY
MANNER PERMITTED BY LAW. EACH PARTY HEREBY WAIVES ALL RIGHTS TO A TRIAL BY JURY.

          (d) Headings. The headings herein are for convenience only, do not constitute a part of this
Warrant and shall not be deemed to limit or affect any of the provisions hereof.

          (e) Severability. In case any one or more of the provisions of this Warrant shall be invalid
or unenforceable in any respect, the validity and enforceability of the remaining terms and
provisions of this Warrant shall not in any way be affected or impaired thereby, and the parties
will attempt in good faith to agree upon a valid and enforceable provision which shall be a
commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Warrant.

     In Witness Whereof, the Company has caused this Warrant to be duly executed by its
authorized officer as of the date first indicated above.

	 	 	 	 	 	 	 
	 	 	CARDICA, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

10.

 

SCHEDULE 1

FORM OF EXERCISE NOTICE

(To be executed by the Holder to purchase shares of Common Stock under the foregoing Warrant)

Ladies and Gentlemen:

     (1) The undersigned is the Holder of Warrant No.
                     (the “Warrant”)
issued by Cardica, Inc., a Delaware corporation (the “Company”). Capitalized terms used herein and
not otherwise defined herein have the respective meanings set forth in the Warrant.

     (2) The undersigned hereby exercises its right to
purchase                     Warrant
Shares pursuant to the Warrant.

     (3) The Holder intends that payment of the Exercise Price shall be made as (check one):

          o Cash Exercise

          o “Cashless Exercise” under Section 11

     (4) If the Holder has elected a Cash Exercise, the Holder shall pay the sum of
$                     in immediately available funds to the Company in accordance with the
terms of the Warrant.

     (5) Pursuant to this Exercise Notice, the Company shall deliver to the Holder
                     Warrant Shares in accordance with the terms of the Warrant.

     (6) By its delivery of this Exercise Notice, the undersigned represents and warrants to the
Company that in giving effect to the exercise evidenced hereby the Holder will not beneficially own
in excess of the number of shares of Common Stock (as determined in accordance with Section 13(d)
of the Securities Exchange Act of 1934) permitted to be owned under Section 5(c) of the Warrant to
which this notice relates.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Name of Holder:	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 

	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)

11.

 

SCHEDULE 2

CARDICA, INC.

FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of Warrant]

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                    
(the “Transferee”) the right represented by the within Warrant to purchase                     
shares of Common Stock of Cardica, Inc. (the “Company”) to which the within Warrant relates and
appoints                      attorney to transfer said right on the books of the Company with
full power of substitution in the premises. In connection therewith, the undersigned represents,
warrants, covenants and agrees to and with the Company that:

     (a) the offer and sale of the Warrant contemplated hereby is being made in compliance with
Section 4(1) of the United States Securities Act of 1933, as amended (the “Securities Act”) or
another valid exemption from the registration requirements of Section 5 of the Securities Act and
in compliance with all applicable securities laws of the states of the United States;

     (b) the undersigned has not offered to sell the Warrant by any form of general solicitation or
general advertising, including, but not limited to, any advertisement, article, notice or other
communication published in any newspaper, magazine or similar media or broadcast over television or
radio, and any seminar or meeting whose attendees have been invited by any general solicitation or
general advertising;

     (c) the undersigned has read the Transferee’s investment letter included herewith, and to its
actual knowledge, the statements made therein are true and correct; and

     (d) the undersigned understands that the Company may condition the transfer of the Warrant
contemplated hereby upon the delivery to the Company by the undersigned or the Transferee, as the
case may be, of a written opinion of counsel (which opinion shall be in form, substance and scope
customary for opinions of counsel in comparable transactions) to the effect that such transfer may
be made without registration under the Securities Act and under applicable securities laws of the
states of the United States.

Dated:                                      
  

	 	 	 	 	 
	 

	 	 

(Signature must conform in all respects to name of
holder as specified on the face of the Warrant)
	 	 
	 
	 	 	 	 
	 

	 	 

Address of Transferee
	 	 

In the presence of:
                                        

12.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]