Document:

<PAGE>

                                                                     EXHIBIT 4.3

                                                               EXECUTION VERSION

                           SEVENTH AMENDMENT dated as of August 9, 2005 (this
                  "Amendment"), to the AMENDED AND RESTATED FIVE-YEAR CREDIT
                  AGREEMENT dated as of October 11, 2001 (as amended,
                  supplemented or otherwise modified from time to time, the
                  "Credit Agreement"), among LAND O'LAKES, INC., a cooperative
                  corporation organized under the laws of the State of Minnesota
                  (the "Borrower"), the several banks and other financial
                  institutions and entities from time to time party thereto (the
                  "Lenders"), and JPMORGAN CHASE BANK, N.A., as administrative
                  agent (in such capacity, the "Administrative Agent").

         A. Capitalized terms used but not defined herein shall have the
meanings assigned to such terms in the Credit Agreement, as amended hereby.

         B. The Borrower has notified the Administrative Agent that it intends
to effect an initial public offering pursuant to which it will offer and sell
shares of the common stock of CF Industries Holdings, Inc. ("CFI") in an
underwritten offering registered with the Securities and Exchange Commission
(the "CF IPO"). The Borrower currently owns approximately 38% of the Equity
Interests in CF Industries, Inc., a wholly owned subsidiary of CFI, and intends
to use up to the full amount of the Net Proceeds (as defined below) from the CFI
IPO to finance the repurchase of its Senior Notes, Senior Second Lien Notes
and/or Capital Securities or any combination thereof.

         C. The Borrower has requested that the Lenders amend certain provisions
of the Credit Agreement in connection with the CFI IPO and its intended use of
the Net Proceeds of the CFI IPO and certain other sales of Equity Interests of
CFI as set forth herein.

         D. The Required Lenders are willing to effect such amendments on the
terms and subject to the conditions of this Amendment.

         E. Accordingly, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto agree as follows:

         SECTION 1. Amendment of the Credit Agreement. Effective as of the
Amendment Effective Date:

         (a) Section 1.01 of the Credit Agreement is amended to add definitions
of the following terms in appropriate alphabetical order:

         'CFI' means CF Holdings Industries, Inc., a Delaware corporation, and
    its wholly owned subsidiary, CF Industries, an Illinois corporation, in
    which the Borrower owns approximately 38% of the Equity Interests.

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                                                                               2

         'CFI IPO' means an initial public offering pursuant to which the
    Borrower will offer and sell shares of the common stock of CFI in an
    underwritten offering registered with the Securities and Exchange
    Commission.

         'CFI Residual Shares' means the Equity Interests in CFI which are
    required to be retained by the Borrower in connection with the CFI IPO
    pursuant to a lock-up agreement between the Borrower and the underwriters
    managing the CFI IPO, which Equity Interests the Borrower may elect to sell
    on a date at least 12 months after the closing date of the CFI IPO.

         'Net Proceeds' means the cash proceeds received by the Borrower from
    the (a) CFI IPO and (b) the sale of any CFI Residual Shares, in each case
    net of all reasonable fees and out-of-pocket expenses, including without
    limitation legal fees, accountants' fees, underwriters' fees or placement
    agents' fees, discounts or commissions, and other fees paid by the Borrower
    to third parties (other than Affiliates) in connection with the CFI IPO.

         'Seventh Amendment' means the Seventh Amendment, dated as of August 9,
    2005, to this Agreement.

         'Seventh Amendment Effective Date' means the date on which the Seventh
    Amendment became effective in accordance with Section 3 thereof.

         (b) Amendment of Subsection 6.05. Subsection 6.05 of the Credit
Agreement is amended by (i) deleting the word "and" at the end of paragraph (g),
(ii) inserting the word "and" at the end of paragraph (h) and (iii) inserting a
new paragraph (i) that reads in its entirety as follows:

         "(i) the sale by the Borrower of (x) the Equity Interests in CFI in
    connection with the CFI IPO and (y) the CFI Residual Shares;"

         (c) Amendment of Subsection 6.08(b). Subsection 6.08(b) is amended by
(i) inserting the words ", and will not" immediately following the words "The
Borrower will not" in the first line of such Subsection, and (ii) (x) deleting
the word "and" at the end of clause (vi), (y) deleting the period at the end of
clause (vii) and replacing it with "; and" and (z) inserting a new clause (viii)
that reads in its entirety as follows:

         "(viii) the Borrower may repurchase any combination of the Senior
    Notes, the Senior Second Lien Notes and/or the Capital Securities in an
    aggregate amount, including accrued and unpaid interest and any redemption
    premiums, not to exceed the greater of (a) $100,000,000 and (b) the Net
    Proceeds; provided that (x) after giving effect to any such repurchase, the
    aggregate principal amount of undrawn Letters of Credit and Loans
    outstanding under the Credit Agreement does not exceed $100,000,000 and (y)
    no Default exists at the time of any such repurchase."

         SECTION 2. Representations and Warranties. To induce the other parties
hereto to enter into this Amendment, the Borrower represents and warrants to
each

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                                                                               3

of the Lenders, the Administrative Agent and the Collateral Agent that, as of
the Amendment Effective Date:

         (a) This Amendment has been duly authorized, executed and delivered by
it and this Amendment and the Credit Agreement, as amended hereby, constitutes
its legal, valid and binding obligation, enforceable against it in accordance
with its terms except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting
creditors' rights generally and by general principles of equity (regardless of
whether such enforceability is considered in a proceeding at law or in equity).

         (b) The representations and warranties set forth in Article III of the
Credit Agreement are, after giving effect to this Amendment, true and correct in
all material respects on and as of the Amendment Effective Date with the same
effect as though made on and as of the Amendment Effective Date, except to the
extent such representations and warranties expressly relate to an earlier date
(in which case they were true and correct in all material respects as of such
earlier date).

         (c) No Default or Event of Default has occurred and is continuing.

         (d) After giving effect to this Amendment, the Collateral and Guarantee
Requirement has been satisfied.

         SECTION 3. Effectiveness. This Amendment and the amendment of the
Credit Agreement effected hereby shall become effective as of the first date
(the "Amendment Effective Date") on which the following conditions have been
satisfied:

         (a) The Administrative Agent (or its counsel) shall have received duly
executed counterparts hereof that, when taken together, bear the signatures of
(i) the Administrative Agent, (ii) the Borrower, and (iii) the Required Lenders.

         (b) The Administrative Agent shall have received a certificate of a
Financial Officer to the effect that the representations and warranties set
forth in Section 2 hereof are true and correct on and as of the Amendment
Effective Date.

         (c) The Administrative Agent shall have received such documents and
certificates as the Administrative Agent or its counsel may reasonably request
relating to the authorization of this Amendment and the transactions
contemplated hereby and any other legal matters relating to the Loan Parties,
this Amendment, and the transactions contemplated hereby, all in form and
substance reasonably satisfactory to the Administrative Agent.

         (d) The Administrative Agent shall have received all fees and other
amounts due from any Loan Party hereunder or under the Credit Agreement or any
other Loan Document on or prior to the Amendment Effective Date and, to the
extent invoiced on or prior to the Amendment Effective Date, reimbursement or
payment of all out-of-pocket expenses (including fees, charges and disbursements
of counsel) required to be

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                                                                               4

reimbursed or paid by any Loan Party hereunder or under the Credit Agreement or
any other Loan Document.

The Administrative Agent shall notify the Borrower and the Lenders of the
Amendment Effective Date, and such notice shall be conclusive and binding.

         SECTION 4. Effect of Amendment. (a) Except as expressly set forth
herein, this Amendment shall not by implication or otherwise limit, impair,
constitute a waiver of or otherwise affect the rights and remedies of the
Lenders, the Administrative Agent or the Collateral Agent under the Credit
Agreement or any other Loan Document, and shall not alter, modify, amend or in
any way affect any of the terms, conditions, obligations, covenants or
agreements contained in the Credit Agreement or any other provision of the
Credit Agreement or of any other Loan Document, all of which are ratified and
affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle the Borrower to a consent to, or a waiver,
amendment, modification or other change of, any of the terms, conditions,
obligations, covenants or agreements contained in the Credit Agreement or any
other Loan Document in similar or different circumstances.

         (b) On and after the Amendment Effective Date, each reference in the
Credit Agreement to "this Agreement", "hereunder", "hereof", "herein", or words
of like import, and each reference to the Credit Agreement in any Loan Document
shall be deemed a reference to the Credit Agreement as amended hereby. This
Amendment shall constitute a "Loan Document" for all purposes of the Credit
Agreement and the other Loan Documents.

         SECTION 5. Costs and Expenses. The Borrower agrees to reimburse the
Administrative Agent for its reasonable out of pocket expenses in connection
with this Amendment, including the reasonable fees, charges and disbursements of
counsel for the Administrative Agent.

         SECTION 6. Indemnity. It is agreed that for all purposes of Section
9.03(b) of the Credit Agreement, the execution, delivery and performance of this
Amendment and the other transactions contemplated hereby shall all be deemed to
be transactions contemplated by the Credit Agreement.

         SECTION 7. Counterparts. This Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed an original, but all
such counterparts together shall constitute but one and the same instrument.
Delivery of any executed counterpart of a signature page of this Amendment by
facsimile transmission shall be as effective as delivery of a manually executed
counterpart hereof.

         SECTION 8. Applicable Law. THIS AMENDMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

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                                                                               5

         SECTION 9. Headings. The headings of this Amendment are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their duly authorized officers, all as of the date and year
first above written.

                                      LAND O'LAKES, INC.,

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

                                      JPMORGAN CHASE BANK, N.A.,
                                      individually, as Administrative Agent, and
                                      as Collateral Agent,

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

<PAGE>

                                                               SIGNATURE PAGE TO
                                                        SEVENTH AMENDMENT TO THE
                                                   LAND O'LAKES CREDIT AGREEMENT
                                        DATED AS OF OCTOBER 11, 2001, AS AMENDED

To approve Seventh Amendment to the
Credit Agreement:

Name of Institution:

   -----------------------------------

by
   -----------------------------------
   Name:
   Title:exv10w3

 

			
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Exhibit 10.3

DISTRIBUTION AGREEMENT

          This Distribution Agreement (“Agreement”) is made as of this 30th day of September 2005, by
and between: MICRUS ENDOVASCULAR CORPORATION, a Delaware corporation, having a principal place of
business at 610 Palomar Avenue, Sunnyvale, California 94085, United States (“Micrus”);
Goodman CO., LTD. a company organized under the laws of Japan, and having a principal place of
business at 108 Fujigaoka, Meito-ku, Nagoya 465-0032, Japan (“Distributor”).

          WHEREAS, Micrus has developed and desires to commercialize an implantable, three-dimensional
microcoil and its resistive heat-activated delivery device to be used in the Field, as hereinafter
defined, and may develop other products for use in the Field; and

          WHEREAS, Distributor has substantial experience in marketing medical products and desires to
distribute the Product, as hereinafter defined, in the territory of the country of Japan; and

          WHEREAS, Micrus is willing to use Distributor as its exclusive distributor of the Product for
use in the Field, in the territory of Japan, subject to the terms and conditions of this Agreement.

          NOW THEREFORE, in consideration of the premises and the mutual covenants herein recited, and
other good and valuable considerations, the receipt of which is acknowledged, it is agreed as
follows:

ARTICLE I — DEFINITIONS

          As used in this Agreement, the following terms, whether used in the singular or plural, shall
have the meanings indicated:

     1.1 “Effective Date” shall mean the date of this Agreement first written above.

     1.2 “Field” shall mean the field of interventional neuroradiology, or such field(s) as
to which the parties may agree in writing.

     1.3 “Marketing Authorizations” shall mean all authorizations, licenses, approvals, and
registrations to import, market and distribute the Products in the Territory pursuant to the terms
of this Agreement, as may be required by an appropriate governmental agency.

     1.4 “Product(s)” shall mean (a) the implantable, three-dimensional microcoils,
together with a resistive heat-activated delivery device, developed, manufactured, or made
available to Distributor by Micrus, and (b) any other Micrus product which utilizes Micrus’
licensed, patented or proprietary microcoil and related delivery device technology; both of the
foregoing (a) and (b) solely as used in the Field and as delivered to Distributor from time to time
by Micrus under this Agreement.

     1.5 Territory shall mean the geographic territories of Japan.

***Certain confidential information contained in this document, marked by brackets, has been
omitted and filed with the Securities and Exchange Commission pursuant to Rule 24b-2 of the
Securities Exchange Act of 1934, as amended.

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ARTICLE II — APPOINTMENT OF DISTRIBUTOR

     2.1 Appointment of Distributor. Subject to the terms and conditions of this Agreement
(including, without limitation, Article VI), Micrus hereby appoints Distributor as its exclusive
distributor of the Product within the Territory. Distributor agrees that it shall not sell,
advertise, distribute or otherwise transfer or assist in the transfer of any product that competes
with the Product. Distributor may distribute the Product only as packaged by Micrus. Distributor
shall not sell, advertise, distribute, or otherwise transfer or assist in the transfer of the
Product outside the Territory unless at the direct written request of Micrus. Micrus reserves the
right to grant similar distribution rights in the Product to third parties for distribution and
sale outside of the Territory. Distributor may appoint an associate distributor or sub-distributor
of the Product; provided (a) Distributor shall promptly notify Micrus in writing and shall provide
Micrus such information regarding each associate distributor or sub-distributor as Micrus
reasonably requests (including information requested to confirm compliance with Sec. 5.5,
Compliance with Laws); (b) each such distributor or sub-distributor shall be bound in writing to
restrictions at least as strict as those restrictions imposed on Distributor under this Agreement;
and (c) Distributor shall be responsible for full compliance with the terms for this Agreement by
all distributors and sub-distributors designated by Distributor.

     2.2 Relationship of Parties. The relationship of Micrus and Distributor established
by this Agreement is that of independent contractors, and nothing contained in this Agreement shall
be construed to: (i) give either party the power to direct or control the day-to-day activities of
the other; or (ii) allow Distributor to create or assume any obligation on behalf of Micrus for any
purpose whatsoever. All financial obligations associated with Distributor business are the sole
responsibility of Distributor. All sales and other agreements between Distributor and its
customers are Distributor’s exclusive responsibility and shall have no effect on Distributor’s or
Micrus’ obligations under this Agreement.

     2.3 Marketing Authorizations.

          2.3.1 Distributor Obligations. Micrus shall use its commercially reasonable efforts
to cause Getz Bros. Co., Ltd. (hereinafter referred to as “Getz”) to obtain all necessary Marketing
Authorizations and reimbursement approvals under the name of Micrus or its subsidiary. At
Distributor’s own expense, Distributor shall use its best efforts to obtain and maintain Marketing
Authorizations and reimbursement approvals under the name of Micrus or its subsidiary for any
Products which are not covered by the Marketing Authorizations obtained by Getz. Specifically,
Distributor agrees that it will undertake to manage, at Distributor’s expense, all regulatory work
required to obtain such Marketing Authorizations in the name of Micrus or its subsidiary. If
Micrus determines that for any reason Marketing Authorizations or reimbursement approvals cannot or
should not be held in the name of Micrus or its subsidiary, then at Micrus’ sole election
Distributor shall receive as transferee (or apply for and take all steps necessary to obtain) and
hold and maintain all Marketing Authorizations and reimbursement approvals in Distributor’s own
name for the sole purpose of performing under this Agreement and enabling the distribution of
Products under this Agreement. Micrus shall deliver to Distributor all relevant scientific,
clinical, toxicological, all animal trials and human clinical trial and manufacturing data in the
possession of Micrus for Distributor to obtain and maintain such Marketing Authorizations in the
name of Micrus or its subsidiary. If clinical trials are required for regulatory purposes on any
new products Micrus wants to import into Japan Micrus will pay for those trials. Micrus shall pay
up to 20% of any regulatory costs for maintaining the Marketing Authorizations held in the name of
Micrus or its subsidiary that Distributor has borne up to a maximum of $10,000 per quarter.

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Distributor shall provide Micrus with written quarterly progress reports of its efforts to
obtain Marketing Authorizations. All such clinical trial and other data relating to the Products
(whether furnished by Micrus or developed by Distributor) shall be deemed proprietary and
confidential information of Micrus under Article VII but may be disclosed by Distributor to the
appropriate governmental agency only to the extent necessary to obtain the relevant Marketing
Authorizations. Distributor agrees not to sell or distribute the Product in any geographic region
within the Territory until such time as all Marketing Authorizations in such geographic region have
duly been obtained, and to act at all times in a manner consistent with such Marketing
Authorizations. Distributor agrees that promptly upon the expiration or earlier termination of
this Agreement, for any reason, Distributor shall transfer all Marketing Authorizations and
reimbursement approvals held by Distributor relating to this Agreement to either Micrus or a third
party as instructed by Micrus, provided that Micrus shall reimburse all out-of-pocket costs
incurred by Distributor to effect such transfer.

     2.4 Trademarks

          2.4.1 License. Micrus hereby grants to Distributor the non-transferable,
non-assignable, non-sublicensable right and license to use its trademarks, service marks, and
tradenames that Micrus may adopt from time to time (the “Trademarks”) solely on or in
connection with Distributor’s promotion, sale and distribution of the Product within the Territory
as authorized under this Agreement for the term of this Agreement. Distributor shall have the right
to indicate to the public that it is an authorized distributor of the Product. Distributor shall
not alter or remove any Trademark applied to the Product. Nothing herein shall grant to
Distributor any right, title or interest in the Trademarks. All use of the Trademarks, and all
goodwill associated therewith, shall inure to the benefit of Micrus. At no time during or after
the term of this Agreement shall Distributor challenge or assist others to challenge the Trademarks
or the registration thereof or attempt to register any trademarks, marks or trade names confusingly
similar to those of Micrus.

          2.4.2 Approval of Representations. Distributor shall respect the Trademarks and follow
the instructions of Micrus as to all usage of the Trademarks, including, without limitation,
complying with Micrus’ quality control requirements and submitting samples of Distributor’s use of
the Trademarks to Micrus for approval. If any of the Trademarks are to be used in conjunction with
any other mark on or in relation to the Product, then the Trademark shall be presented equally
legibly, equally prominently, and of the same or greater size than the other mark(s) but
nevertheless separated from the other trademark so that each appears to be a mark in its own right,
distinct from the other mark(s).

     2.5 Provision of Data. Distributor agrees to provide Micrus promptly with all clinical
and technical information and data with respect to the Product, which it develops during the term
of this Agreement. Distributor further agrees to communicate promptly to Micrus any and all
modifications, design changes or improvements to the Products suggested by any of Distributor’s
customers, distributors, employees or agents. Distributor further agrees that Micrus shall have,
and is hereby assigned, any and all right, title and interest in and to any data relating to the
Product, including animal and clinical trial data, as well as any suggested modifications, design
changes or improvements to the Products (all of which shall be deemed Confidential Information
under Article VII) without the payment of any additional consideration therefor either to
Distributor or its customers, service providers, distributors, employees or agents. Distributor
will also promptly notify Micrus of any infringement of any of the Trademarks, patent or other
proprietary rights relating to the Products of which Distributor becomes aware.

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ARTICLE
III — CONSIDERATION; PURCHASE OF PRODUCT

     3.1 License Fee. On or before September 30, 2005, Distributor shall pay to Micrus a
non-refundable, non-cancelable license fee in the amount of seven hundred fifty thousand U.S.
dollars (US $750,000). If this payment is not received on or before September 30, 2005, in
addition to all other remedies of the parties, this Agreement shall automatically terminate,
notwithstanding Section 10.2.

     3.2 Prices.

          3.2.1 All purchases of Product by Distributor from Micrus during the term of this Agreement
shall be subject to the terms and conditions of this Agreement. Subject to this Section 3.2,
Micrus will sell Product to Distributor at the preferential prices shown in Exhibit A
(“Purchase Price”) until [***] after the Effective Date or until such time the
pricing is revised in accordance with this Agreement, whichever is earlier. The parties agree to
discuss, in good faith, revisions to the prices, within at least [***] from the Effective
Date of this Agreement, based on market data then available to Micrus and as relevant. [***] Distributor shall have sole discretion to
establish the resale price of the Product to third parties subject only to any regulatory or
governmental limitations.

          3.2.2 Micrus shall have the right to adjust the Purchase Price annually on the anniversary of
the Effective Date. Micrus shall consult with Distributor and take into consideration
Distributor’s feedback in adjusting the Purchase Price. Additionally, the parties may by mutual
agreement make further adjustments more frequently at such other times as the parties may agree in
writing. Such revisions shall apply to all orders for the affected Product received after the
effective date of revision. Price increases shall not affect unfulfilled purchase orders accepted
by Micrus in writing prior to the effective date of the price increase. Micrus will not raise the
price unless government reimbursement for that product increases within the territory.

          3.2.3 All prices are F.O.B. Micrus’ place of manufacture.

     3.3 Taxes. The Purchase Price will be net of any Distributor federal, state or local
taxes that may be applicable to the Product. When Micrus has the legal obligation to collect such
taxes, the appropriate amount shall be added to Distributor’s invoice and paid by Distributor,
unless Distributor provides Micrus with a valid tax exemption certificate authorized by the
appropriate taxing authority.

     3.4 Order and Acceptance. All orders for Product submitted by Distributor shall be
initiated by written purchase orders sent to Micrus requesting a delivery date during the term of
this Agreement.. To facilitate Micrus’ production scheduling, Distributor shall submit purchase
orders to Micrus at least fifteen (15) days prior to the requested delivery date.
No order shall be binding upon Micrus until accepted by Micrus in writing, and Micrus shall have no
liability to Distributor with respect to purchase orders that are not so accepted. Micrus shall
either: (i) notify Distributor, in writing, of the acceptance or rejection of an order (or any
portion thereof) and of the assigned delivery date for accepted orders with ten (10) days of
receipt of the purchase order; or (ii) send Product pursuant to such accepted order. No partial
fulfillment of an order shall constitute a commitment to fulfill the entire order, absent the
written acceptance of such entire order. Micrus shall

*** Confidential Treatment Requested

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use its commercially reasonable efforts to
deliver Product at the time specified in its written acceptance of Distributor’s purchase orders.
Micrus reserves the
right at any time with six months notice except as mandated by a governmental or regulatory body to
discontinue the manufacture, supply or sale of any Product, to make changes in materials or design,
or to add improvements to any Product, without incurring any liability whatsoever.

     3.5 Terms of Purchase Orders. Distributor’s purchase orders submitted to Micrus from
time to time with respect to Product to be purchased hereunder shall be governed by the terms of
this Agreement, and nothing contained in any such purchase order shall in any way modify such terms
of purchase or add any additional terms or conditions.

     3.6 Payment. Micrus shall submit an invoice to Distributor upon each shipment of
Product ordered by Distributor. The invoice shall set forth the Purchase Price for the Product in a
given shipment plus any freight, taxes or other applicable costs initially paid by Micrus but to be
borne by Distributor. Payment shall be made by Distributor by wire transfer, check or other
instrument approved in writing by Micrus. Payment terms shall be the full invoiced amount to be
paid by Distributor to Micrus within sixty (60) days of the date of the invoice; which payment
terms shall be reviewed after the first year of this Agreement for payment terms applicable to
subsequent years of the then-current term of the Agreement; provided, however, that any revision to
the payment terms must be made by a mutually agreed to writing executed by both parties. Any
invoiced amount not received within sixty (60) days of the date of invoice shall be subject to a
service charge of one percent (1%) per month, or if lower, the maximum interest rate allowed by
law. Distributor shall pay all of Micrus’ costs and expenses (including reasonable attorney’s fees)
to enforce and preserve Micrus’ rights under this Subsection 3.6. If at any time an outstanding
invoice for Product shipped to Distributor becomes unpaid and outstanding for greater than ninety
(90) days, at Micrus’ option, Micrus may require that Distributor effect payment by means of an
irrevocable letter of credit drawn on a California bank approved by Micrus; the letter of credit
shall be upon terms acceptable by Micrus, shall allow for partial shipment, and shall be in an
amount equal to Distributor’s purchase price for the Product plus all applicable taxes, shipping
charges, and other charges to be borne by Distributor. All exchange, interest, banking collection
and other charges shall be at Distributor’s expense.

     3.7 Quarterly Reports. Within forty-five (45) days after the end of each
quarter, Distributor shall provide Micrus with a written sales breakdown, including without
limitation, the amount and type of Product, and names of end users of the Product sold during the
period.

ARTICLE IV — SUPPLY OF PRODUCT

     4.1 Terms of Distributor Requirements. Subject to the terms and conditions of this
Agreement (including, without limitation, Section 3.4), Micrus agrees to sell and Distributor
agrees to purchase from Micrus Distributor’s entire requirements of products of the type provided
by Micrus under

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this Agreement, solely for distribution and/or sale in the Territory. Micrus shall
use commercially reasonable efforts to manufacture the Product and, subject to Section 3.4, supply
them to Distributor in quantities sufficient to satisfy Distributor’s needs in accordance with the
provisions of this Article IV, provided Distributor submits to Micrus purchase estimates pursuant
to Section 4.2.

     4.2 Purchase Estimates. Distributor shall submit to Micrus, beginning ninety (90) days
before the first anticipated order of Product and within the first ten (10) days after the
beginning of each calendar quarter thereafter, a non-binding good faith estimate of the amount of
Product to be required and purchased by Distributor for both the next three months and the next
twelve-month periods.

     4.3 Inspection and Dispute Resolution Relating to Satisfaction of Product
Specifications. The following provisions relate to inspection and resolution of disputes:

          4.3.1 Rejection of Product. Distributor shall inspect all Product promptly upon
receipt thereof and may reject any Product pursuant to this Section 4.3.1 that fails to meet the
specifications set forth in Micrus’ current product specifications for the Product. Any Product
not properly rejected within thirty (30) days of receipt of that Product at Distributor’s facility
after customs clearance for import (the “Rejection Period”) shall be deemed accepted. To
reject a Product, Distributor shall within the Rejection Period, (i) notify Micrus in writing by
telefax or by telex (with confirmation of transmission) of its rejection and the reason for the
rejection, and (ii) return, at its expense, the rejected Product to Micrus (the “Returned
Product”) in the same condition in which it was delivered to Distributor. All claims made by
Distributor after its inspection of the Product shall be handled on a case-by-case basis during
which time Micrus shall have the right to first inspect any Product involved before being required
to take any action with respect thereto. Micrus shall make its investigation within thirty (30)
days of receipt of notice of a claim from Distributor. Micrus shall, at its expense, replace
Product it determines to be defective and ship such replacement Product freight prepaid. In no
event shall Micrus be liable under this Agreement for any failure of any Product to meet the
specifications due to modification or improper use, storage or shipment of the Product by
Distributor or anyone receiving the Product from or on behalf of Distributor.

          4.3.2 Resolution of Disputes Relating to Product Specifications. If the parties
hereto fail to agree as to whether a delivered quantity of Product meets its agreed specifications,
then the parties shall cooperate to have the Product in dispute analyzed by a jointly selected
qualified independent testing laboratory.

          4.3.3 Return of Product After Rejection Period. After the Rejection Period, Micrus’
limited warranty as stated in Section 8.1 hereof shall be applied. If Micrus tests and inspects
the Returned Product and determines that such Returned Product (i) has been physically damaged,
(ii) has been modified or improperly used, stored or shipped by Distributor or anyone receiving the
Product from or on behalf of Distributor, or (ii) performs according to Micrus’ written
specifications, no credit will be given to Distributor. If upon such test and inspections such
Returned Product (a) has not been physically damaged, (b) has not been modified or improperly used,
stored or shipped by Distributor or anyone receiving the Product from or on behalf of Distributor,
and (c) does not perform to Micrus’ written specification, these Returned Products will be replaced
at no cost to Distributor. In all cases of physical damage or modification to, or improper use,
storage or shipment of, Returned Product, no credit will be given to Distributor.

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     4.4 Title. Title and risk of loss pass to Distributor when Product leaves Micrus’
facility. Distributor shall be solely responsible for the payment of all freight and insurance and
other costs, expenses, fees, duties, imports, and charges of whatever kind or nature arising from
the shipment, delivery, and importation of Product into the Territory. Distributor shall solely be
responsible for taking all actions necessary to obtain clearance to import Product into the
Territory and Distributor warrants that it will comply in all respects with any restrictions set
forth in the export license for every Product purchased hereunder.

     4.5 Reporting. Distributor agrees to report to Micrus any information from any source,
including, without limitation, employees, distributors, agents, customers, user facilities,
individuals, or medical or scientific literature, whether published or unpublished, that reasonably
suggests that there is a problem with the Product or a probability that the Product or a similar
product has caused or contributed to a death, serious illness or serious injury, including but not
limited to, severe or permanent disability, stroke, or brain damage as promptly as possible but
within five (5) days of receipt of information of such event. Distributor agrees not to disclose
any such information referred to herein to any third party without the prior written consent of
Micrus.

          4.5.1 Serious illness means an event that is life threatening, results in permanent impairment
of a body function or permanent damage to the body structure, or necessitates immediate medical or
surgical intervention to preclude permanent impairment of a body function or permanent damage to a
body structure.

          4.5.2 Serious injury means an event that is life threatening, results in permanent impairment
of a body function or permanent damage to a body structure, or necessitates medical or surgical
intervention to preclude permanent impairment of a body function or permanent damage to a body
structure.

     4.6 Monitoring. Each of the parties hereto shall monitor all relevant journals and
media communications for information on factors materially affecting the use or efficacy of the
Product and shall promptly inform the other party of such information. The informing party may
provide in writing its evaluation of such information. Either party shall promptly inform the
other if it has actual knowledge of any measures which are necessary to eliminate or minimize any
risk associated with the use of the Product or a specific production lot of the Product.

ARTICLE V — ADDITIONAL OBLIGATIONS OF DISTRIBUTOR

     5.1 Marketing Obligations. Distributor agrees to use its best efforts to successfully
promote and distribute the Product, at its own expense, in the Territory as soon as feasible after
the Effective Date of this Agreement using diligent and vigorous efforts to maximize sales and
market penetration at the earliest date. Such efforts shall include, but are not limited to,
preparing promotional materials, advertising the Product in trade publications within the
Territory, participating in appropriate trade shows within the Territory, and directly soliciting
orders from customers within the Territory for the Product. Subject to Micrus’ approval and
obligations under Article VIII hereof, Distributor shall also be responsible for all quality
control, lot release for Distributor’s requirements, promotional activities, marketing and selling
efforts, distribution and technical services. All promotional materials developed by Distributor
shall be submitted to Micrus for approval before such materials are distributed by Distributor.
Micrus shall promptly review such materials, and if no written response is provided by Micrus
within

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thirty (30) days after receipt of such material, then the material will be deemed to have
been approved by Micrus.

     5.2 Finances and Personnel. Distributor shall, at its sole cost, expense, and risk:
(i) employ on its own behalf an appropriate number of specialized, trained, and qualified sales
personnel whose main function shall be the promotion and sale of the Product in the Territory; and
(ii) maintain a suitable organization for the promotion and sale of the Products in the Territory
pursuant to Distributor’s obligations hereunder.

     5.3 Customer and Sales Reporting. Distributor shall, at its own expense and consistent
with the sales policies of Micrus:

          5.3.1 place the Product in Distributor’s catalogues as soon as possible and feature the
Product in any applicable trade show within the Territory that it attends;

          5.3.2 provide adequate contact with existing and potential customers within the Territory on a
regular basis, consistent with good business practice;

          5.3.3 assist Micrus in assessing customer requirements for the Product, including
modifications and improvements thereto, in terms of quality, design, functional capability, and
other features;

          5.3.4 provide Micrus a complete copy of all customer information routinely kept in
Distributor’s possession no less than once each calendar quarter, including customer names and
contact person(s); and

          5.3.5 submit market research information, as reasonably requested by Micrus regarding
competition and changes in the market within the Territory.

     5.4 Marketing Plans. Distributor shall submit to Micrus for its approval a Product
launch plan for the Product in the Territory as soon as possible and, in any event no later than
ninety (90) days from the Effective Date, and on or before October of each year thereafter, an
annual marketing and sales plan for the Product. Each of these plans shall include specific
marketing sales strategies, tactics and goals, market research analysis, promotion budgets, and
sales projections.

     5.5 Compliance with Laws. Distributor shall market and distribute the Product in the
Territory in compliance with all applicable laws and regulations and good commercial practice and
for uses and applications approved by Micrus in writing for the Product. Distributor shall comply
with all laws, rules and regulations as applicable to the marketing, distribution and sale of the
Product in the Territory or any part of it. Distributor further agrees to comply with the U.S.
Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”) and all applicable export laws,
restrictions and regulations of any U.S. or foreign agency or authority and not to export or
re-export or allow the export or re-export of the Product or any related technology or information
in violation of any such laws, restrictions or regulations. A copy of the FCPA is attached to this
Agreement as Appendix A..

Distributor hereby declares that it has read and understood the provisions of the FCPA and, on that
basis, it further represents and covenants that neither it nor any of its employees or agents have
taken or will

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take any action to cause Distributor to be in violation of the FCPA. Specifically,
Distributor hereby certifies that it has not paid, nor offered or agreed to pay, nor has caused to
be paid, or offered or agreed to be paid, directly or indirectly, in respect of this Agreement, any
political contributions, fees or commissions to any public or governmental employee or official
anywhere for the purpose of influencing such official’s act or decision to provide business to
Distributor. Distributor further certifies that it will not, directly or indirectly, in connection
with this Agreement and the business resulting therefrom, offer, pay, promise to pay, or authorize
the giving of money or anything of value to any public or governmental employee or official, to any
political party or official thereof or to any candidate for political office, or to any person,
while knowing or being aware of a high probability that all or a portion of such money or thing of
value will be offered, given or promised, directly or indirectly, to any public or government
official, to any political party or official thereof, or to any candidate to political office, for
the purpose of: (a) influencing any act or decision of such official, political party, party
official, or candidate in his or its official capacity, including a decision to fail to perform his
or its official functions; or (b) inducing such official, political party, party official or
candidate to use his or its influence with the government or instrumentality thereof to affect or
influence any act or decision of such government or instrumentality, in order to assist Micrus or
Distributor in obtaining or retaining business for or with, or directing business to any third
party.

Distributor agrees that if subsequent developments cause the certifications and information
reported herein to be no longer accurate or complete, Distributor will immediately so advise
Micrus. Distributor further agrees that its violation of any part of this Section 5.5 will be a
material breach of this Agreement and cause for immediate termination, without further liability or
obligation on the part of Micrus notwithstanding anything to the contrary provided in this
Agreement.

Distributor shall obtain and bear all expenses relating to any necessary licenses and/or exemptions
with respect to the export from the United States of the Products to any location in compliance
with all applicable laws and regulations.

     5.6 Minimum Purchase Requirements. The parties agree that reasonable marketing efforts
should enable Distributor to achieve the minimum annual purchase requirements in the amounts and
according to the payment schedule set forth in Exhibit B hereto (“Minimum Purchase
Requirements”). Exhibit B reflects an annual measurement period ending on March 31 of each year,
with the figures prorated in the first and final years to reflect partial periods. For each annual
measurement period ending March 31, Distributor must have purchased and paid for at least the
amount of the Minimum Purchase Requirement shown in Exhibit B for such period on or before March
31. If Distributor fails to satisfy the Minimum Purchase Requirement for any period, in addition
to all other remedies, Micrus may terminate this Agreement. In the case or termination or
expiration of this Agreement, the Minimum Purchase Requirement for the last annual measurement
period shall be prorated as of the effective date of the expiration or termination, and Distributor
must have purchased and paid for at least the amount of the Minimum Purchase Requirement prorated
for such period on or before the effective date of termination or expiration.

     5.7 Stock order. Within 45 days after the distribution agreement is signed,
Distributor agrees to place an order to have a minimum stock to supply the local market (see
exhibit C for 1st order’s details).

ARTICLE VI — FAILURE TO MEET MINIMUM

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REQUIREMENTS

     In the event that in any given year, the total payments by Distributor under Section 3.6 do
not, in the aggregate, equal or exceed: the Minimum Purchase Requirement set forth in Section 5.6
for such year; and Distributor fails to pay the Short-Fall within sixty (60) days of the end of
such year, then Micrus may, at its sole discretion, either: (a) convert the grant of the
distribution rights pursuant to Section 2.1 hereof to a non-exclusive basis; or (b) terminate this
Agreement upon thirty (30) days prior written notice to Distributor. If Micrus elects to convert
the grant of distribution rights to a non-exclusive basis, such election shall be made by delivery
of written notice by Micrus to Distributor and shall take effect on the date set forth in the
notice.

ARTICLE VII — CONFIDENTIAL INFORMATION

     The parties hereto agree that each shall keep completely confidential and shall not publish or
otherwise divulge or use for its own benefit or for the benefit of any third party any information
of a proprietary nature furnished to it (the “Receiving Party”) by the other party (the
“Disclosing Party”) for a period of five (5) years after the termination of this Agreement
without
the prior written approval of the disclosing party in each instance, except to the extent
that it is necessary to divulge such information for the obtaining of governmental approval for the
marketing of the Product and the Receiving Party discloses only the minimum of information
necessary in connection therewith and takes reasonable steps to maintain the confidentiality of
such information. Nothing in this Article 7 shall prevent disclosure or use of information: (i)
already known to the Receiving Party prior to its receipt of such information from the Disclosing
Party; (ii) which was known to the public at the time of disclosure, or subsequently becomes so
known through no act or omission of the Receiving Party; (iii) which is properly acquired by the
Receiving Party from a third party having the right to convey such information; or (iv) that is
required to be disclosed by law or regulation or in connection with any financing, acquisition,
merger or sale, provided the Receiving Party provides the Disclosing Party with advance notice of
such disclosure and takes reasonable steps to protect the confidentiality of such information.
Information of a proprietary nature shall include, but not be limited to, information concerning a
party’s products, proposed products, marketing plans, methods of manufacture, customers or any
other information or materials in whatever form not generally known to the public. Subject to the
foregoing, this specific terms of this Agreement (including all financial terms) shall be kept
confidential, however, the parties may refer generally to this Agreement and the parties’
relationship arising therefrom.

ARTICLE
VIII — WARRANTY; LIMITATION OF LIABILITY

     8.1 Warranty. Micrus represents and warrants to Distributor that all Product
manufactured and delivered to Distributor pursuant to this Agreement shall meet Micrus’
specifications for such Product at the time of delivery by Micrus to Distributor for the shelf life
of the Product as specified on the Product labeling; provided, however, that such
Product: (i) has been shipped in accordance with Micrus’ shipping instructions and stored in
accordance with the instructions on the labeling and the packaging for such Product; (ii) is used
in the application for which it was intended; and (iii) has not been modified without Micrus’ prior
written consent. Distributor shall handle and be solely responsible for all warranty returns from
its direct and indirect customers. Micrus’ sole and exclusive liability under the warranty set
forth in Section 8.1 shall be limited to a replacement to Distributor of the defective Product with
a Product substantially equivalent to the Product originally shipped by Micrus to Distributor.

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     8.2 No Other Warranty. EXCEPT FOR THE EXPRESS WARRANTY SET FORTH IN SECTION 8.1
HEREIN, THE PRODUCT IS PROVIDED “AS IS,” AND MICRUS GRANTS NO OTHER WARRANTIES, EXPRESS OR IMPLIED,
BY STATUTE OR OTHERWISE, REGARDING ANY PRODUCT, ITS FITNESS FOR ANY PARTICULAR PURPOSE, ITS
QUALITY, ITS MERCHANTABILITY, OR OTHERWISE.

     8.3 Limitation of Liability. NOTWITHSTANDING ANYTHING ELSE IN THIS AGREEMENT OR
OTHERWISE, IN NO EVENT SHALL MICRUS BE LIABLE TO DISTRIBUTOR OR ANY OTHER PERSON OR ENTITY WITH
RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR
OTHER LEGAL OR EQUITABLE THEORY FOR (A) THE COST OF PROCUREMENT OF SUBSTITUTE GOODS, (B) ANY
SPECIAL, CONSEQUENTIAL, PUNITIVE, INDIRECT OR INCIDENTAL DAMAGES OR (C) LOST PROFITS OR LOST
BUSINESS; EVEN IF THE REMEDIES PROVIDED FOR IN THIS AGREEMENT FAIL OF THEIR ESSENTIAL PURPOSE AND
EVEN IF EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT
NOTHING HEREIN SHALL RELIEVE MICRUS FROM ANY PRODUCT LIABILITY CLAIM, AS SET FORTH IN ARTICLE IX
HERETO.

     8.4 Ownership. Distributor acknowledges and agrees that as between Distributor and
Micrus, Micrus owns all right, title and interest in and to all clinical, technical, product,
sales, marketing, and customer information and data with respect to the Product (including, without
limitation, any and all modifications, design changes or improvements relating thereto), and all
industrial and intellectual property rights of any kind in relation to the Product (including,
without limitation, any and all modifications, design changes or improvements relating thereto) or
any of the foregoing, including, without limitation, the right to patents, registered or other
designs, trademarks, trade names, inventions, copyright, know-how and any other confidential
information. Nothing contained in this Agreement shall be effective to give Distributor any rights
of ownership in or to any of the foregoing. To the extent Distributor owns any rights, title or
interest in or to the foregoing, Distributor hereby assigns all of such rights to Micrus. The
provision of Product technical information to Distributor under this Agreement is for the sole
purpose of obtaining approval from the regulatory authorities in the Territory for the Product and
is subject to the confidentiality obligations set forth in Article VII. The use by Distributor of
any of these property rights is authorized only for the purposes herein set forth, and upon
termination of this Agreement for any reason such authorization shall cease.

     8.5 Sale Conveys No Right to Manufacture or Copy. The Product is offered for sale and
is sold by Micrus subject in every case to the condition that such sale does not convey any
license, expressly or by implication, to manufacture, duplicate or otherwise copy or reproduce the
Product or any portion thereof. Distributor shall take appropriate steps with its customers and
distributors, if any, as Micrus may request, to inform them of and assure compliance with the
restrictions contained in this Section 8.5.

ARTICLE IX — INDEMNIFICATION

     9.1 Indemnification by Micrus. Micrus agrees to and hereby does indemnify and hold
Distributor harmless from and against all claims, damages, losses, costs and expenses, including
reasonable attorneys’ fees, which Distributor may incur by reason of any Product sold or furnished
by

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Micrus which result in injury, illness, or death of any person, to the extent that such claims
arise out of or result from either the negligence or willful misconduct of Micrus in: (i) product
design; or (ii) manufacturing; or (iii) breach of any representations or warranties by Micrus
hereunder, except if such claims arise from the negligence or willful misconduct of
Distributor, any modification of the Product other than by Micrus or any breach by Distributor of
any of its obligations, representations or warranties under this Agreement. Micrus shall have sole
control of any such action or settlement negotiations, and Micrus agrees to pay, subject to the
limitations hereinafter set forth, any final judgment entered against Distributor or its customer
on such issue in any such suit or proceedings indemnified hereunder by Micrus. Distributor agrees
to notify Micrus promptly in writing of such claim, suit or proceeding and gives Micrus authority
to proceed as contemplated herein, and, at Micrus’ expense, give Micrus proper and full information
and assistance to settle and/or defend any such claim, suit or proceeding. If the Product, or any
part thereof, is the subject of any claim, suit or proceeding for infringement of any third party
patents or trademark in the United States or in the Territory, or if the sale or use of the
Product, or any part thereof, is, as a result thereof, enjoined, then Micrus shall, at its option
and expense: (a) procure for Distributor and its customers the right under such patent, or
trademark to sell or use, as appropriate, the Product or such part thereof; or (b) replace the
Product, or part thereof, with other suitable Product or parts; or (c) suitably modify the Product,
or part thereof, or (d) if the use of the Product, or part thereof, is prevented by injunction,
remove the Product or part thereof, and refund the aggregate payments paid therefore by
Distributor, less a reasonable sum for the use and damage; provided that such claim, suit or
proceeding is not based on a
modification of the Product by Distributor or anyone other than Micrus, or a combination of the
Product with any product other than those provided by Micrus for use with the Product.

     9.2 Indemnification by Distributor. Distributor hereby agrees to and hereby does
indemnify and hold Micrus harmless from and against all claims, damages, losses, costs and
expenses, including reasonable attorneys’ fees, which Micrus may incur to the extent that such
claims arise out or result from: (i) the unlawful sale or other distribution of Product by
Distributor, including any improper sales by Distributor to customers who are located outside the
Territory; (ii) the negligent or willful misconduct of Distributor in the distribution, labeling or
packaging of the Product; (iii) Distributor’s recommended use of Product in violation of this
Agreement; (iv) modification of the Product by Distributor, (v) combination of the Product with any
product other than those provided by Micrus for use with the Product, or (vi) breach of any
representation, warranty, or obligation by Distributor hereunder, except for such claims
which arise out of or result from the gross negligence, or willful misconduct of Micrus.
Distributor shall have sole control of any such action or settlement negotiations, and Distributor
agrees to pay, subject to the limitations hereinafter set forth, any final judgment entered against
Micrus or its customer on such issue in any such suit or proceedings defended by Distributor.
Micrus agrees to notify Distributor promptly in writing of such claim, suit or proceeding and gives
Distributor authority to proceed as contemplated herein, and, at Distributor’s expense, give
Distributor proper and full information and assistance to settle and/or defend any such claim, suit
or proceeding.

     9.3 Contribution. In the event the negligence of Distributor and Micrus contribute to
any loss, cost, damages, claim or expense relating to Product supplied and/or distributed or sold
hereunder, then Distributor and Micrus shall be responsible for that portion of the loss, cost,
damages, claim or expense to which its negligence contributed.

ARTICLE X — TERM AND TERMINATION

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     10.1 Term. This Agreement shall commence on the Effective Date and shall continue in
force for a fixed term of five (5) years, unless terminated earlier under the provisions of this
Agreement. At the end of the fixed term, this Agreement shall be automatically renewed on the same
terms and conditions for an additional one (1) year period, unless earlier terminated under the
provisions hereof or unless one party gives to the other notice of its intention to terminate at
least six (6) months prior to the expiration of the fixed term hereof or of any renewal period.

     10.2 Failure to Make Payment. Micrus may terminate this Agreement at any time upon
Distributor’s failure to make payments due to Micrus pursuant to this Agreement and the
continuation of such failure for more than thirty (30) days after delivery of written notice to
Distributor of such failure.

     10.3 Failure to Commercialize or Obtain Marketing Authorizations. Micrus may
terminate this Agreement at any time upon Distributor’s failure to use diligent efforts to move
ahead with its obligations to market, sell and distribute Product under Section 5.1, meet the
Minimum Purchase Requirement of Section 5.6 hereof or obtain and maintain Marketing Authorizations
under the name of Micrus or its subsidiary pursuant to the provisions of Section 2.3.1 and upon the
continuation of such failure for more than ninety (90) days after delivery of written notice to
Distributor of such failure, except where such failure of Distributor is a result of the
failure of Micrus to meet its obligations as defined in this Agreement or due to circumstances
beyond the reasonable control of Distributor pursuant to Section 11.7 hereof.

     10.4 Patent, Copyright, Trademark Violations. Micrus may terminate this Agreement at
any time without notice upon Distributor’s violation of Sections 8.4 or 8.5 hereof.

     10.5 Material Breach. Save for Section 5.5 hereof, either party may terminate this
Agreement upon ninety (90) days prior written notice in the event of the other party’s breach of
any other material provision of this Agreement, if such default or breach is not remedied within
ninety (90) days from the date of such notice, except where such default or breach is due
to circumstances beyond the reasonable control of the other party pursuant to Section 11.7 hereof,
or as otherwise specified in this Article X.

     10.6 Bankruptcy. If, during the term of this Agreement, either party makes an
assignment, of this Agreement or generally, for the benefit of creditors, or becomes insolvent or
seeks protection under any bankruptcy, receivership, trust deed, creditor’s arrangement or
composition, or if any comparable proceeding is instituted against the other party and is not
dismissed within ninety (90) days of such institution, then the other party may terminate this
Agreement immediately upon delivery of written notice thereof.

     10.7 Control Event. In the event that Distributor sells all or substantially all of
its business or assets to which this Agreement relates to a non-affiliate, or has more than fifty
percent (50%) of its equity securities purchased by a single purchaser who is a non-affiliate in
one transaction (a “Control Event”) (whether by sale, acquisition, merger, operation of law
or otherwise), then Micrus may terminate this Agreement with thirty (30) days’ prior written notice
at any time after the occurrence of the Control Event. In the event that Micrus sells all or
substantially all of its business or assets to which this Agreement relates to a non-affiliate, or
has more than fifty percent (50%) of its equity securities purchased by a purchaser who is a
non-affiliate in one transaction (a “Change of Control”), then Micrus may terminate this Agreement
at any time provided Micrus pays Distributor a termination fee of twice the amount of net sales of
Distributor derived from sales of Products in the Territory during the twelve

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(12) month period
immediately preceding termination of this Agreement (“Change of Control Termination Fee”). For
purposes of this section, a non-affiliate is not a parent, subsidiary or a subsidiary of a common
parent or a successor. In the event that Micrus does not elect to terminate this Agreement upon a
Change of Control, then the Change of Control Termination Fee shall not be due or payable and
Micrus shall assign its rights and obligations under this Agreement to such acquirer of Micrus’
stock or assets.

     10.8 No Waiver. Any failure to terminate shall not be construed as a waiver by the
aggrieved party of its right to terminate for future defaults or breaches.

     10.9 Effects of Termination.

          10.9.1 Return of Property. Upon termination of this Agreement for any reason, each
party shall upon the request of the other party return all books, records, documents, data and
proprietary information which it shall have received from the other party pursuant to this
Agreement and which it shall still have in its possession or control; provided,
however, that a single copy may be retained solely for legal archival purposes by each
party, subject to the confidentiality provisions of Article VII.

          10.9.2 Accrued Payments. Termination of this Agreement by either party shall not
prejudice the right of either party to recover any payments for Products shipped under this
Agreement, and shall not prejudice any cause of action or claim of either party accruing under this
Agreement.

          10.9.3 Marketing and Distribution Rights. Upon termination of this Agreement,
Distributor’s rights to market, distribute, sell and otherwise transfer the Product, and all other
rights under this Agreement, shall immediately cease. The parties shall undertake to negotiate in
good faith a mutually acceptable agreement to satisfy any contractual obligations of Distributor to
supply the Product to third parties, and Micrus shall supply all necessary inventory under such
agreements. Except as needed to satisfy any contractual obligations existing as of the effective
date of termination and as approved by Micrus in writing, Distributor shall return all inventory in
its possession or control to Micrus in the same condition in which it was provided by Micrus within
sixty (60) days after termination. Micrus shall then reimburse Distributor at transfer cost for any
returned product that is deemed to be in salable condition.

          10.9.4 Marketing Authorizations. Upon termination of this Agreement, Distributor
shall promptly assign or otherwise transfer to Micrus or its designees any of Distributor’s rights,
title and interest in and to the Marketing Authorizations and/or pending applications for the
Product; provided, however, if such termination does not result from a breach of
this Agreement by Distributor, Micrus shall reimburse Distributor for its costs incurred in
obtaining such Marketing Authorizations.

          10.9.5 Trademark. Upon termination of this Agreement, the license to use the
Trademarks granted in Section 2.4 shall also terminate and all right, title and interest in such
Trademarks shall belong to Micrus.

          10.9.6 Pending Orders. Upon termination of this Agreement, Micrus shall have the
right, at its option, to continue or terminate any order pending as of the effective date of
termination.

          10.9.7 No Liability for Termination. Neither party will incur any liability
whatsoever for any damages, loss or expenses of any kind suffered or incurred by the other party
(or for

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any compensation to the other party) arising from or incident to any termination of this
Agreement pursuant to such party’s right of termination under this Agreement, whether or not such
party is aware of any such damages, loss or expenses.

     10.10 Termination Not Sole Remedy. Termination is not the sole remedy under this
Agreement and, whether or not termination is effected, all other remedies will remain available.

ARTICLE XI — GENERAL PROVISIONS

     11.1 Governing Law. This Agreement shall be governed by and interpreted in accordance
with the laws of the State of California and the United States of America, as though all parties
were resident of, and the contract was performed solely in, California without reference to
conflicts of laws rules thereof and without regard to the United Nations Convention on Contracts
for the International Sale of Goods. Except as set forth in Section 11.2, the sole jurisdiction
and venue for actions relating to the subject matter of this Agreement shall be the California
state and U.S. federal courts having jurisdiction in Santa Clara County, California, and the
parties hereby consent to the jurisdiction of such courts.

     11.2 Arbitration. Except for actions seeking injunctive relief, all disputes,
controversies, or differences which may arise between the parties hereto, out of, in relation to,
or in connection with this Agreement or the breach thereof, shall be finally settled by binding
arbitration in San Francisco, California, U.S.A., in accordance with the Commercial Arbitration
rules of the American Arbitration Association by one (1) arbitrator appointed in accordance with
such Rules, by which each party hereto agrees to be bound. Judgment upon an award rendered may be
entered in any court having jurisdiction, or application may be made to such court for judicial
acceptance of the award and an order of enforcement, as the case may be.

     11.3 Entire Agreement. This Agreement represents the entire Agreement and
understanding of the parties hereto with respect to the marketing and distribution of the Product
and the subject matter of this Agreement, and supersedes all previous agreements and understandings
related thereto and may only be amended or modified in writing signed by an authorized
representative of the parties hereto.

     11.4 Assignment. Distributor may not assign, transfer or otherwise dispose of any of
its rights or obligations pursuant to this Agreement without the prior written consent of Micrus.
Such consent shall not be unreasonably withheld. This Agreement shall be binding on, inure to the
benefit of, and be enforceable by the parties, their respective heirs, successors and valid
assigns.

     11.5 Notice. All notices under this Agreement shall be in writing and shall be deemed
given on the date of delivery if sent by certified or registered mail, commercial courier (return
receipt or confirmation of delivery required and costs prepaid), or by personal delivery to the
party to receive such notices or other communications called for in this Agreement at the following
addresses (or at such other address for a party as shall be specified by such party by like
notice):

	 	 	 
	If to MICRUS:
	 	 
	 

	 	MICRUS ENDOVASCULAR CORPORATION
	 

	 	610 Palomar Avenue
	 

	 	Sunnyvale, CA 94085
	 

	 	USA

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	 	Attention: President and CEO
	 
	 	 
	If to DISTRIBUTOR:
	 

	 	Goodman CO., Ltd.
	 

	 	108 Fujigaoka
	 

	 	Meito-ku, Nagoya 465-0032
	 

	 	Japan
	 

	 	Attention: President and CEO

     11.6 Limitation on Liability. In no event shall either party be liable to the other
for incidental or consequential damages, even if such party shall have been advised of the
possibility of the same.

     11.7 Force Majeure. Except for the obligation to make payments under this Agreement,
each of the parties hereto shall be excused from the performance of its obligations hereunder in
the event such performance is prevented by force majeure, and such excuse shall continue for thirty
(30) days after the termination of such force majeure. For the purposes of this Agreement, force
majeure is defined to include causes beyond the control of the parties hereto, including without
limitation, acts of God, acts, resolutions or laws of any government, war, war-like conditions,
civil commotion, destruction of production facilities or materials by fire,
earthquake or storm, labor disturbances, epidemic and failure of public utilities or common
carriers.

     11.8 Publicity. Neither party shall make any press release or other similar public
disclosure or announcement concerning this Agreement, without the prior written consent of the
non-disclosing party, which consent shall not be unreasonably withheld, except as otherwise
required by law. Consent will be deemed granted if no response is received from the non-Disclosing
Party within fifteen (15) days of its confirmed written request for approval from the Disclosing
Party. Notwithstanding the foregoing, in the event such disclosure or public announcement is
required to be made on a more immediate basis in order to comply with applicable laws, then
approval will be deemed granted if no response is received from the non-disclosing party within the
timeframes required by law; provided, however, that the Disclosing Party provides the
non-disclosing party with notice of the legally required timeframe for approval of the disclosure
at the time of providing a copy of the proposed disclosure or announcement.

     11.9 Survival of Rights. All rights to payments and the provisions of Articles I
(Definitions), VII (Confidential Information), VIII (Warranty; Indemnification), IX
(Indemnification), and XI (General Provisions), as well as Sections 2.2 (Relationship of Parties),
4.5 (Reporting), 10.8 (No Waiver), 10.9 (Effects of Termination) and 10.10 (Termination Not Sole
Remedy) shall survive the expiration or termination of this Agreement.

     11.10 Legal Expenses. The prevailing party in any legal action brought by one party
against the other and arising out of this Agreement shall be entitled, in addition to any other
rights and remedies it may have, to reimbursement for its expenses, including arbitration costs and
reasonable attorney’s fees.

     11.11 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original and all of which shall constitute but one and the same document.

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     11.12 Governmental Relations. In carrying out its responsibilities under this
Agreement, Distributor has not and will not pay, offer or promise to pay, or authorize the payment
directly or indirectly of any monies or anything of value to any government official or employee,
or any political party or candidate for political office for the purpose of influencing any act or
decision of such official or of the government. In the event of a breach of the representations
and warranties in the preceding sentence, this Agreement may automatically be cancelled by Micrus
upon receipt by Distributor of written notice of cancellation, and any claims for payment by
Distributor shall be surrendered. In no event shall Micrus be obligated under this Agreement to
take any action or omit to take any action that Micrus believes, in good faith, would cause it to
be in violation of any U.S. laws, including the Foreign Corrupt Practices Act Distributor shall
comply with all laws, rules and regulations applicable to its performance of its obligations under
this Agreement, including all U.S. export control laws.

     11.13 Headings. Headings and captions are for convenience only and are not to be
used in the interpretation of this Agreement.

     11.14 Severability. If any provision of this Agreement is held to be illegal or
unenforceable, that provision shall be limited or eliminated to the minimum extent necessary so
that this Agreement shall otherwise remain in full force and effect.

     11.15 Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same
instruments. This Agreement may be executed by facsimile with original signatures promptly
following by a method set forth in Section 11.5.

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

MICRUS ENDOVASCULAR CORPORATION

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 /s/ Robert A. Stern	 	 	 	By:
	 	 /s/ Akira Yamamoto	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	Robert A. Stern	 	 	 	 	 	Name: Akira Yamamoto	 	 
	Title:

	 	Executive Vice President	 	 	 	 	 	Title: President	 	 

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EXHIBIT A

Purchase Price

	 	 	 
	PRODUCT	 	Year 1
	 
	MicruSphere
	 	[***]
	HELIPAQ
	 	[***]
	ULTIPAQ
	 	[***]
	Catheter
	 	[***]
	Control Box
	 	[***]
	Cables
	 	[***]

In view of the increased value and the benefits of Cerecyte coils, the Distributor and Micrus will
make all reasonable efforts to obtain a reimbursement price for Cerecyte that is higher than the
reimbursement price of bare platinum coils, and Distributor and Micrus shall use all reasonable
efforts to consult, inform and to persuade relevant Japanese regulatory bodies on the advisability
of such higher prices, including the Ministry of Health, Labor and Welfare. If Cerecyte coils
qualify for a higher reimbursement price, the parties agree to negotiate a corresponding adjustment
to the prices under this Agreement for Cerecyte coils. If such efforts fail, Micrus agrees to sell
to Distributor Cerecyte at the agreed-to-price of bare platinum coils.

*** Confidential Treatment Requested

18

 

			
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EXHIBIT B

Minimum Purchase Requirements

The following schedule sets forth Distributor’s Minimum Purchase Requirements as specified in
Section 5.6 of the Distribution Agreement. These minimums represent the cost of Products paid for
by Distributor to Micrus during each Micrus fiscal year of the Agreement.

	 	 	 	 	 	 	 	 	 	 	 
	TERRITORY	 	Year 1	 	Year 2	 	Years 3	 	Year 4	 	Year 5
	 
	Japan
	 	[***]
	 	[***]
	 	[***]
	 	[***]
	 	[***]

*** Confidential Treatment Requested

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EXHIBIT C

Stock order

Distributor agrees to place a stocking order within 45 days after the distribution agreement
is signed, as follows: [***] of product

*** Confidential Treatment Requested

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APPENDIX A

[As of July 22, 2004]

Anti-Bribery and Books & Records Provisions of

The Foreign Corrupt Practices Act

Current
through Pub. L. 105-366 (November 10, 1998)

UNITED STATES CODE

TITLE 15. COMMERCE AND TRADE

CHAPTER
2B—SECURITIES EXCHANGES

§ 78m. Periodical and other reports

(a) Reports by issuer of security; contents

Every issuer of a security registered pursuant to section 781 of this title shall file with
the Commission, in accordance with such rules and regulations as the Commission may prescribe as
necessary or appropriate for the proper protection of investors and to insure fair dealing in the
security—

(1) such information and documents (and such copies thereof) as the Commission shall require to
keep reasonably current the information and documents required to be included in or filed with an
application or registration statement filed pursuant to section 781 of this title, except that the
Commission may not require the filing of any material contract wholly executed before July 1, 1962.

(2) such annual reports (and such copies thereof), certified if required by the rules and
regulations of the Commission by independent public accountants, and such quarterly reports (and
such copies thereof), as the Commission may prescribe.

Every issuer of a security registered on a national securities exchange shall also file a duplicate
original of such information, documents, and reports with the exchange.

(b) Form of report; books, records, and internal accounting; directives

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* * *

(2) Every issuer which has a class of securities registered pursuant to section 781 of this
title and every issuer which is required to file reports pursuant to section 78o(d) of this title
shall—

(A) make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the issuer; and

(B) devise and maintain a system of internal accounting controls sufficient to provide reasonable
assurances that—

(i) transactions are executed in accordance with management’s general or specific authorization;

(ii) transactions are recorded as necessary (I) to permit preparation of financial statements in
conformity with generally accepted accounting principles or any other criteria applicable to such
statements, and (II) to maintain accountability for assets:

(iii) access to assets is permitted only in accordance with management’s general or specific
authorization; and

(iv) the recorded accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences.

	(3)	 	(A) With respect to matters concerning the national security of the United States, no duty
or liability under paragraph (2) of this subsection shall be imposed upon any person acting in
cooperation with the head of any Federal department or agency responsible for such matters if such
act in cooperation with such head of a department or agency was done upon the specific, written
directive of the head of such department or agency pursuant to Presidential authority to issue such
directives. Each directive issued under this paragraph shall set forth the specific facts and
circumstances with respect to which the provisions of this paragraph are to be invoked. Each such
directive shall, unless renewed in writing, expire one year after the date of issuance.

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(B) Each head of a Federal department or agency of the United States who issues such a
directive pursuant to this paragraph shall maintain a complete file of all such directives and
shall, on October 1 of each year, transmit a summary of matters covered by such directives in force
at any time during the previous year to the Permanent Select Committee on Intelligence of the House
of Representatives and the Select Committee on Intelligence of the Senate.

(4) No criminal liability shall be imposed for failing to comply with the requirements of paragraph
(2) of this subsection except as provided in paragraph (5) of this subsection.

(5) No person shall knowingly circumvent or knowingly fail to implement a system of internal
accounting controls or knowingly falsify any book, record, or account described in paragraph (2).

(6) Where an issuer which has a class of securities registered pursuant to section 781 of this
title or an issuer which is required to file reports pursuant to section 78o(d) of this title holds
50 per centum or less of the voting power with respect to a domestic or foreign firm, the
provisions of paragraph (2) require only that the issuer proceed in good faith to use its
influence, to the extent reasonable under the issuer’s circumstances, to cause such domestic or
foreign firm to devise and maintain a system of internal accounting controls consistent with
paragraph (2). Such circumstances include the relative degree of the issuer’s ownership of the
domestic or foreign firm and the laws and practices governing the business operations of the
country in which such firm is located. An issuer which demonstrates good faith efforts to use such
influence shall be conclusively presumed to have complied with the requirements of paragraph (2).

(7) For the purpose of paragraph (2) of this subsection, the terms “reasonable assurances” and
“reasonable detail” mean such level of detail and degree of assurance as would satisfy prudent
officials in the conduct of their own affairs.

* * *

<§
78dd-1 [Section 30A of the Securities & Exchange Act of 1934].

Prohibited foreign trade practices by issuers

(a) Prohibition

It shall be unlawful for any issuer which has a class of securities registered pursuant to section
781 of this title or which is required to file reports under section 78o(d) of this title, or for
any officer, director, employee, or agent of such issuer or any stockholder thereof acting on
behalf of such issuer, to make use of the mails or any means or instrumentality of interstate
commerce corruptly in furtherance of an offer, payment, promise to pay, or authorization of the
payment of any money, or offer, gift, promise to give, or authorization of the giving of anything
of value to—

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(1) any foreign official for purposes of—

(A) (i) influencing any act or decision of such foreign official in his official capacity, (ii)
inducing such foreign official to do or omit to do any act in violation of the lawful duty of such
official, or (iii) securing any improper advantage; or

(B) inducing such foreign official to use his influence with a foreign government or
instrumentality thereof to affect or influence any act or decision of such government or
instrumentality,

in order to assist such issuer in obtaining or retaining business for or with, or directing
business to, any person;

(2) any foreign political party or official thereof or any candidate for foreign political office
for purposes of—

(A) (i) influencing any act or decision of such party, official, or candidate in its or his
official capacity, (ii) inducing such party, official, or candidate to do or omit to do an act in
violation of the lawful duty of such party, official, or candidate,
or (iii) securing any improper
advantage; or

(B) inducing such party, official, or candidate to use its or his influence with a foreign
government or instrumentality thereof to affect or influence any act or decision of such government
or instrumentality.

in order to assist such issuer in obtaining or retaining business for or with, or directing
business to, any person; or

(3) any person, while knowing that all or a portion of such money or thing of value will be
offered, given, or promised, directly or indirectly, to any foreign official, to any foreign
political party or official thereof, or to any candidate for foreign political office, for purposes
of—

(A) (i) influencing any act or decision of such foreign official, political party, party official,
or candidate in his or its official capacity, (ii) inducing such foreign official, political party,
party official, or candidate to do or omit to do any act in violation of the lawful duty of such
foreign official, political party, party official, or candidate, or (iii) securing any improper
advantage; or

(B) inducing such foreign official, political party, party official, or candidate to use his or its
influence with a foreign government or instrumentality thereof to affect or influence any act or
decision of such government or instrumentality,

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in order to assist such issuer in obtaining or retaining business for or with, or directing
business to, any person.

(b) Exception for routine governmental action

Subsections (a) and (g) of this section shall not apply to any facilitating or expediting
payment to a foreign official, political party, or party official the purpose of which is to
expedite or to secure the performance of a routine governmental action by a foreign official,
political party, or party official.

(c) Affirmative defenses

It shall be an affirmative defense to actions under subsection (a) or (g) of this section
that—

(1) the payment, gift, offer, or promise of anything of value that was made, was lawful under the
written laws and regulations of the foreign official’s, political party’s, party official’s, or
candidate’s country; or

(2) the payment, gift, offer, or promise of anything of value that was made, was a reasonable and
bona fide expenditure, such as travel and lodging expenses, incurred by or on behalf of a foreign
official, party, party official, or candidate and was directly related to—

(A) the promotion, demonstration, or explanation of products or services; or

(B) the execution or performance of a contract with a foreign government or agency thereof.

(d) Guidelines by Attorney General

Not later than one year after August 23, 1988, the Attorney General, after consultation with
the Commission, the Secretary of Commerce, the United States Trade Representative, the Secretary of
State, and the Secretary of the Treasury, and after obtaining the views of all interested persons
through public notice and comment procedures, shall determine to what extent compliance with this
section would be enhanced and the business community would be assisted by further clarification of
the preceding provisions of this section and may, based on such determination and to the extent
necessary and appropriate, issue—

(1) guidelines describing specific types of conduct, associated with common types of export sales
arrangements and business contracts, which for purposes of the Department of Justice’s present
enforcement policy, the Attorney General determines would be in conformance with the preceding
provisions of this section; and

(2) general precautionary procedures which issuers may use on a voluntary basis to conform their

25

 

	 	 	 
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conduct to the Department of Justice’s present enforcement policy regarding the preceding
provisions of this section.

The Attorney General shall issue the guidelines and procedures referred to in the preceding
sentence in accordance with the provisions of subchapter II of chapter 5 of Title 5 and those
guidelines and procedures shall be subject to the provisions of chapter 7 of that title.

(e) Opinions of Attorney General

(1) The Attorney General, after consultation with appropriate departments and agencies of the
United States and after obtaining the views of all interested persons through public notice and
comment procedures, shall establish a procedure to provide responses to specific inquiries by
issuers concerning conformance of their conduct with the Department of Justice’s present
enforcement policy regarding the preceding provisions of this section. The Attorney General shall,
within 30 days after receiving such a request, issue an opinion in response to that request. The
opinion shall state whether or not certain specified prospective conduct would, for purposes of the
Department of Justice’s present enforcement policy, violate the preceding provisions of this
section. Additional requests for opinions may be filed with the Attorney General regarding other
specified prospective conduct that is beyond the scope of conduct specified in previous requests.
In any action brought under the applicable provisions of this section, there shall be a rebuttable
presumption that conduct, which is specified in a request by an issuer and for which the Attorney
General has issued an opinion that such conduct is in conformity with the Department of Justice’s
present enforcement policy, is in compliance with the preceding provisions of this section. Such a
presumption may be rebutted by a preponderance of the evidence. In considering the presumption for
purposes of this paragraph, a court shall weight all relevant factors, including but not limited to
whether the information submitted to the Attorney General was accurate and complete and whether it
was within the scope of the conduct specified in any request received by the Attorney General. The
Attorney General shall establish the procedure required by this paragraph in accordance with the
provisions of subchapter II of chapter 5 of Title 5 and that procedure shall be subject to the
provisions of chapter 7 of that title.

(2) Any document or other material which is provided to, received by, or prepared in the Department
of Justice or any other department or agency of the United States in connection with a request by
an issuer under the procedure established under paragraph (1), shall be exempt from disclosure
under section 552 of Title 5 and shall not, except with the consent of the issuer, be made publicly
available, regardless of whether the Attorney General responds to such a request or the issuer
withdraws such request before receiving a response.

(3) Any issuer who has made a request to the Attorney General under paragraph (1) may withdraw such
request prior to the time the Attorney General issues an opinion in response to such request. Any
request so withdrawn shall have no force or effect.

(4) The Attorney General shall, to the maximum extent practicable, provide timely guidance
concerning

26

 

	 	 	 
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the Department of Justice’s present enforcement policy with respect to the preceding
provisions of this section to potential exporters and small businesses that are unable to obtain
specialized counsel on issues pertaining to such provisions. Such guidance shall be limited to
responses to requests under paragraph (1) concerning conformity of specified prospective conduct
with the Department of Justice’s present enforcement policy regarding the preceding provisions of
this section and general explanations of compliance responsibilities and of potential liabilities
under the preceding provisions of this section.

(f) Definitions

For purposes of this section:

	(1)	 	(A) The term “foreign official” means any officer or employee of a foreign government or any
department, agency, or instrumentality thereof, or of a public international organization, or any
person acting in an official capacity for or on behalf of any such government or department,
agency, or instrumentality, or for or on behalf of any such public international organization.
	 
	 	 	(B) For purposes of subparagraph (A), the
term “public international organization” means—

	 	(i)	 	an organization that is designated by Executive Order pursuant to section 1 of the
International Organizations Immunities Act (22 U.S.C. § 288); or
	 
	 	(ii)	 	any other international organization that is designated by the President by Executive order
for the purposes of this section, effective as of the date of publication of such order in the
Federal Register.

	(2)	 	(A) A person’s state of mind is “knowing” with respect to conduct, a circumstance, or a
result if—

	 	(i)	 	such person is aware that such person is engaging in such conduct, that such circumstance
exists, or that such result is substantially certain to occur; or
	 
	 	(ii)	 	such person has a firm belief that such circumstance exists or that such result is substantially
certain to occur.

(B) When knowledge of the existence of a particular circumstance is required for an offense, such
knowledge is established if a person is aware of a high probability of the existence of such
circumstance, unless the person actually believes that such circumstance does not exist.

	(3)	 	(A) The term “routine governmental action” means only an action which is ordinarily and
commonly performed by a foreign official in—

(i) obtaining permits, licenses, or other official documents to qualify a person to do business in
a foreign country;

(ii) processing governmental papers, such as visas and work orders;

(iii) providing police
protection, mail pick-up and delivery, or scheduling

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inspections associated with contract performance or inspections related to transit of goods
across country;

(iv) providing phone service, power and water supply, loading and unloading cargo, or protecting
perishable products or commodities from deterioration; or

(v) actions of a similar nature.

(B) The term “routine governmental action” does not include any decision by a foreign official
whether, or on what terms, to award new business to or to continue business with a particular
party, or any action taken by a foreign official involved in the decision-making process to
encourage a decision to award new business to or continue business with a particular party.

(g) Alternative Jurisdiction

(1) It shall also be unlawful for any issuer organized under the laws of the United States, or a
State,
territory, possession, or commonwealth of the United States or a political subdivision thereof and
which has a class of securities registered pursuant to section 12 of this title or which is
required to file reports under section 15(d) of this title, or for any United States person that is
an officer, director, employee, or agent of such issuer or a stockholder thereof acting on behalf
of such issuer, to corruptly do any act outside the United States in furtherance of an offer,
payment, promise to pay, or authorization of the payment of any money, or offer, gift, promise to
give, or authorization of the giving of anything of value to any of the persons or entities set
forth in paragraphs (1), (2), and (3) of this subsection (a) of this section for the purposes set
forth therein, irrespective of whether such issuer or such officer, director, employee, agent, or
stockholder makes use of the mails or any means or instrumentality of interstate commerce in
furtherance of such offer, gift, payment, promise, or authorization.

(2) As used in this subsection, the term “United States person” means a national of the United
States (as defined in section 101 of the Immigration and Nationality Act (8 U.S.C. § 1101)) or any
corporation, partnership, association, joint-stock company, business trust, unincorporated
organization, or sole proprietorship organized under the laws of the United States or any State,
territory, possession, or commonwealth of the United States, or any political subdivision thereof.

§
78dd-2. Prohibited foreign trade practices by domestic concerns

(a) Prohibition

It shall be unlawful for any domestic concern, other than an issuer which is subject to section
78dd-l of this title, or for any officer, director, employee, or agent of such domestic concern or
any stockholder thereof acting on behalf of such domestic concern, to make use of the mails or any
means or

28

 

	 	 	 
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instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise
to pay, or authorization of the payment of any money, or offer, gift, promise to give, or
authorization of the giving of anything of value to—

(1) any foreign official for purposes of—

(A) (i) influencing any act or decision of such foreign official in his official capacity, (ii)
inducing such foreign official to do or omit to do any act in violation of the lawful duty of such
official, or (iii) securing any improper advantage; or

(B) inducing such foreign official to use his influence with a foreign government or
instrumentality thereof to affect or influence any act or decision of such government or
instrumentality,

in order to assist such domestic concern in obtaining or retaining business for or with, or
directing business to, any person;

(2) any foreign political party or official thereof or any candidate for foreign political office
for purposes of—

(A) (i) influencing any act or decision of such party, official, or candidate in its or his
official capacity, (ii) inducing such party, official, or candidate to do or omit to do an act in
violation of the lawful duty of such party, official, or candidate, or (iii) securing any improper
advantage; or

(B) inducing such party, official, or candidate to use its or his influence with a foreign
government or instrumentality thereof to affect or influence any act or decision of such government
or instrumentality,

in order to assist such domestic concern in obtaining or retaining business for or with, or
directing business to, any person;

(3) any person, while knowing that all or a portion of such money or thing of value will be
offered, given, or promised, directly or indirectly, to any foreign official, to any foreign
political party or official thereof, or to any candidate for foreign political office, for purposes
of—

(A) (i) influencing any act or decision of such foreign official, political party, party official,
or candidate in his or its official capacity, (ii) inducing such foreign official, political party,
party
official, or candidate to do or omit to do any act in violation of the lawful duty of such foreign
official, political party, party official, or candidate, or (iii) securing any improper advantage;
or

29

 

	 	 	 
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(B) inducing such foreign official, political party, party official, or candidate to use his
or its influence with a foreign government or instrumentality thereof to affect or influence any
act or decision of such government or instrumentality,

in order to assist such domestic concern in obtaining or retaining business for or with, or
directing business to, any person.

(b) Exception for routine governmental action

Subsections
(a) and (i) of this section shall not apply to any facilitating or expediting
payment to a foreign official, political party, or party official the purpose of which is to
expedite or to secure the performance of a routine governmental action by a foreign official,
political party, or party official.

(c) Affirmative defenses

It shall
be an affirmative defense to actions under subsection (a) or (i) of this section
that—

(1) the payment, gift, offer, or promise of anything of value that was made, was lawful under the
written laws and regulations of the foreign official’s, political party’s, party official’s, or
candidate’s country; or

(2) the payment, gift, offer, or promise of anything of value that was made, was a reasonable and
bonafide expenditure, such as travel and lodging expenses, incurred by or on behalf of a foreign
official, party, party official, or candidate and was directly related to—

(A) the promotion, demonstration, or explanation of products or services; or

(B) the execution or performance of a contract with a foreign government or agency thereof.

(d) Injunctive relief

(1) When it appears to the Attorney General that any domestic concern to which this section
applies, or officer, director, employee, agent, or stockholder thereof, is engaged, or about to
engage, in any act or practice constituting a violation of subsection
(a) or (i) of this section,
the Attorney General may, in his discretion, bring a civil action in an appropriate district court
of the United States to enjoin such act or practice, and upon a proper showing, a permanent
injunction or a temporary restraining order shall be granted without bond.

(2) For the purpose of any civil investigation which, in the opinion of the Attorney General, is
necessary and proper to enforce this section, the Attorney General or his designee are empowered to
administer oaths and affirmations, subpoena witnesses, take evidence, and require the production of
any books, papers, or other documents which the Attorney General deems relevant or material to such
investigation. The attendance of witnesses and the production of documentary evidence may be
required from any

30

 

	 	 	 
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place in the United States, or any territory, possession, or commonwealth of the United
States, at any designated place of hearing.

(3) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the Attorney
General may invoke the aid of any court of the United States within the jurisdiction of which such
investigation or proceeding is carried on, or where such person resides or carries on business, in
requiring the attendance and testimony of witnesses and the production of books, papers, or other
documents. Any such court may issue an order requiring such person to appear before the Attorney
General or his designee, there to produce records, if so ordered, or to give testimony touching the
matter under investigation. Any failure to obey such order of the court may be punished by such
court as a contempt thereof.

All process in any such case may be served in the judicial district in which such person resides or
may be found. The Attorney General may make such rules relating to civil investigations as may be
necessary or appropriate to implement the provisions of this subsection.

(e) Guidelines by Attorney General

Not later than 6 months after August 23, 1988, the Attorney General, after consultation with
the Securities and Exchange Commission, the Secretary of Commerce, the United States Trade
Representative, the Secretary of State, and the Secretary of the Treasury, and after obtaining the
views of all interested persons through public notice and comment procedures, shall determine to
what extent compliance with this section would be enhanced and the business community would be
assisted by further clarification of the preceding provisions of this section and may, based on
such determination and to the extent necessary and appropriate, issue—

(1) guidelines describing specific types of conduct, associated with common types of export sales
arrangements and business contracts, which for purposes of the Department of Justice’s present
enforcement policy, the Attorney General determines would be in
conformance with the preceding
provisions of this section; and

(2) general precautionary procedures which domestic concerns may use on a voluntary basis to
conform their conduct to the Department of Justice’s present enforcement policy regarding the
preceding provisions of this section.

The Attorney General shall issue the guidelines and procedures referred to in the preceding
sentence in accordance with the provisions of subchapter II of chapter 5 of Title 5 and those
guidelines and procedures shall be subject to the provisions of chapter 7 of that title.

(f) Opinions of Attorney General

(1) The Attorney General, after consultation with appropriate departments and agencies of the
United

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States and after obtaining the views of all interested persons through public notice and
comment procedures, shall establish a procedure to provide responses to specific inquiries by
domestic concerns concerning conformance of their conduct with the Department of Justice’s present
enforcement policy regarding the preceding provisions of this section. The Attorney General shall,
within 30 days after receiving such a request, issue an opinion in response to that request. The
opinion shall state whether or not certain specified prospective conduct would, for purposes of the
Department of Justice’s present enforcement policy, violate the preceding provisions of this
section. Additional requests for opinions may be filed with the Attorney General regarding other
specified prospective conduct that is beyond the scope of conduct specified in previous requests.
In any action brought under the applicable provisions of this section, there shall be a rebuttable
presumption that conduct, which is specified in a request by a domestic concern and for which the
Attorney General has issued an opinion that such conduct is in conformity with the Department of
Justice’s present enforcement policy, is in compliance with the preceding provisions of this
section. Such a presumption may be rebutted by a preponderance of the evidence. In considering the
presumption for purposes of this paragraph, a court shall weigh all relevant factors, including but
not limited to whether the information submitted to the Attorney General was accurate and complete
and whether it was within the scope of the conduct specified in any request received by the
Attorney General. The Attorney General shall establish the procedure required by this paragraph in
accordance with the provisions of subchapter II of chapter 5 of Title 5 and that procedure shall be
subject to the provisions of chapter 7 of that title.

(2) Any document or other material which is provided to, received by, or prepared in the Department
of Justice or any other department or agency of the United States in connection with a request by a
domestic concern under the procedure established under paragraph (1), shall be exempt from
disclosure under section 552 of Title 5 and shall not, except with the consent of the domestic
concern, by made publicly available, regardless of whether the Attorney General response to such a
request or the domestic concern withdraws such request before receiving a response.

(3) Any domestic concern who has made a request to the Attorney General under paragraph (1)
may withdraw such request prior to the time the Attorney General issues an opinion in response
to such request. Any request so withdrawn shall have no force or effect.

(4) The Attorney General shall, to the maximum extent practicable, provide timely guidance
concerning the Department of Justice’s present enforcement policy with respect to the preceding
provisions of this section to potential exporters and small businesses that are unable to obtain
specialized counsel on issues pertaining to such provisions. Such guidance shall be limited to
responses to requests under paragraph (1) concerning conformity of specified prospective conduct
with the Department of Justice’s present enforcement policy regarding the preceding provisions of
this section and general explanations of compliance responsibilities and of potential liabilities
under the preceding provisions of this section.

(g) Penalties

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	(1)	 	(A) Any domestic concern that is not a natural person and that violates subsection (a) or (i) of this section shall be fined not more than $2,000,000.

(B) Any domestic concern that is not a natural person and that violates subsection (a) or (i)
of this section shall be subject to a civil penalty of not more than $10,000 imposed in an
action brought by the Attorney General.

	(2)	 	(A) Any natural person that is an officer, director, employee, or agent of a domestic
concern, or stockholder acting on behalf of such domestic concern, who willfully violates
subsection (a) or (i) of this section shall be fined not more than $ 100,000 or imprisoned not
more than 5 years, or both.

(B) Any natural person that is an officer, director, employee, or agent of a domestic
concern, or stockholder acting on behalf of such domestic concern, who violates subsection
(a) or (i) of this section shall be subject to a civil penalty of not more than $10,000
imposed in an action brought by the Attorney General.

	(3)	 	Whenever a fine is imposed under paragraph (2) upon any officer, director, employee, agent,
or stockholder of a domestic concern, such fine may not be paid, directly or indirectly, by
such domestic concern.

(h) Definitions

For purposes of this section:

			
	(1)
	 	The term “domestic concern” means—

(A) any individual who is a citizen, national, or resident of the United States; and

(B) any corporation, partnership, association, joint-stock company, business trust,
unincorporated organization, or sole proprietorship which has its principal place of
business in the United States, or which is organized under the laws of a State of the
United States or a territory, possession, or commonwealth of the
United States.

	(2)	 	(A) The term “foreign official” means any officer or employee of a foreign government or any
department, agency, or instrumentality thereof, or of a public international organization, or
any person acting in an official capacity for or on behalf of any such government or
department, agency, or instrumentality, or for or on behalf of any such public international
organization.

(B) For purposes of subparagraph (A), the term “public international organization” means —

(i) an organization that has been designated by Executive order pursuant to Section 1
of the

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International Organizations Immunities Act (22 U.S.C. § 288); or

(ii)
any other international organization that is designated by the President by
Executive order for the purposes of this section, effective as of the date of
publication of such order in the Federal Register.

	(3)	 	(A) A person’s state of mind is “knowing” with respect to conduct, a circumstance, or a result
if—

(i) such person is aware that such person is engaging in such conduct, that
such circumstance exists, or that such result is substantially certain to
occur; or

(ii) such person has a firm belief that such circumstance exists or that such
result is substantially certain to occur.

(B) When knowledge of the existence of a particular circumstance is required for an offense,
such knowledge is established if a person is aware of a high probability of the existence of
such circumstance, unless the person actually believes that such circumstance does not exist.

 

	(4)	 	(A) The term “routine governmental action“means only an action which is ordinarily and
commonly performed by a foreign official in—

(i) obtaining permits, licenses, or other official documents to qualify a
person to do business in a foreign country;

(ii) processing governmental papers, such as visas and work orders;

(iii) providing police protection, mail pick-up and delivery, or
scheduling inspections associated with contract performance or
inspections related to transit of goods across country;

(iv) providing phone service, power and water supply, loading and
unloading cargo, or protecting perishable products or commodities from
deterioration; or

(v) actions of a similar nature.

(B) The term “routine governmental action” does not include any decision by a foreign
official whether, or on what terms, to award new business to or to continue business with a
particular party, or any action taken by a foreign official involved in the decision-making
process to encourage a decision to award new business to or continue business with a
particular party.

(5) The
term “interstate commerce” means trade, commerce, transportation, or communication among
the

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several States, or between any foreign country and any State or between any State and any
place or ship outside thereof, and such term includes the intrastate use of—

(A) a telephone or other interstate means of communication, or

(B) any other interstate instrumentality.

(I) Alternative Jurisdiction

	(1)	 	It shall also be unlawful for any United States person to corruptly do any act outside the
United States in furtherance of an offer, payment, promise to pay, or authorization of the
payment of any money, or offer, gift, promise to give, or authorization of the giving of
anything of value to any of the persons or entities set forth in paragraphs (1), (2), and (3)
of subsection (a), for the purposes set forth therein, irrespective of whether such United
States person makes use of the mails or any means or instrumentality of interstate commerce in
furtherance of such offer, gift, payment, promise, or authorization.
	 
	(2)	 	As used in this subsection, a “United States
person” means a national of the United States (as
defined in section 101 of the Immigration and Nationality Act (8 U.S.C. § 1101)) or any
corporation, partnership, association, joint-stock company, business trust, unincorporated
organization, or sole proprietorship organized under the laws of the United States or any
State, territory, possession, or commonwealth of the United States, or any political
subdivision thereof.

§ 78dd-3. Prohibited foreign trade practices by persons other than issuers or domestic
concerns

(a) Prohibition

It shall be unlawful for any person other than an issuer that is subject to section 30A of the
Securities Exchange Act of 1934 or a domestic concern, as defined in section 104 of this Act), or
for any officer, director, employee, or agent of such person or any stockholder thereof acting on
behalf of such person, while in the territory of the United States, corruptly to make use of the
mails or any means or instrumentality of interstate commerce or to do any other act in furtherance
of an offer, payment, promise to pay, or authorization of the payment of any money, or offer, gift,
promise to give, or authorization of the giving of anything of value to—

(1) any foreign official for purposes of—

(A) (i) influencing any act or decision of such foreign official in his official
capacity, (ii) inducing such foreign official to do or omit to do any act in violation
of the lawful duty of such official, or (iii) securing any improper advantage; or

(B) inducing such foreign official to use his influence with a foreign government or

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instrumentality thereof to affect or influence any act or decision of such
government or instrumentality,

in order to assist such person in obtaining or retaining business for or with, or directing
business to, any person;

(2) any foreign political party or official thereof or any candidate for foreign political office
for purposes of—

(A) (i) influencing any act or decision of such party, official, or candidate in its or
his official capacity, (ii) inducing such party, official, or candidate to do or omit to
do an act in violation of the lawful duty of such party, official, or candidate, or
(iii) securing any improper advantage; or

(B) inducing such party, official, or candidate to use its or his influence with a
foreign government or instrumentality thereof to affect or influence any act or
decision of such government or instrumentality.

in order to assist such person in obtaining or retaining business for or with, or directing
business to, any person; or

(3) any person, while knowing that all or a portion of such money or thing of value will be
offered, given, or promised, directly or indirectly, to any foreign official, to any foreign
political party or official thereof, or to any candidate for foreign political office, for purposes
of—

(A) (i) influencing any act or decision of such foreign official, political party, party
official, or candidate in his or its official capacity, (ii) inducing such foreign
official, political party, party official, or candidate to do or omit to do any act in
violation of the lawful duty of such foreign official, political party, party official,
or candidate, or (iii) securing any improper advantage; or

(B) inducing such foreign official, political party, party official, or candidate to use
his or its influence with a foreign government or instrumentality thereof to affect or
influence any act or decision of such government or instrumentality,

in order to assist such person in obtaining or retaining business for or with, or directing
business to, any person.

(b) Exception for routine governmental action

Subsection (a) of this section shall not apply to any facilitating or expediting payment to a
foreign official, political party, or party official the purpose of which is to expedite or to
secure the performance

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of a routine governmental action by a foreign official, political party, or party official.

(c) Affirmative defenses

It shall
be an affirmative defense to actions under subsection (a) of this section that—

(1) the payment, gift, offer, or promise of anything of value that was made, was lawful under the
written laws and regulations of the foreign official’s, political party’s, party official’s, or
candidate’s country; or

(2) the payment, gift, offer, or promise of anything of value that was made, was a reasonable and
bona fide expenditure, such as travel and lodging expenses, incurred by or on behalf of a foreign
official, party, party official, or candidate and was directly related to—

(A) the promotion, demonstration, or explanation of products or services; or

(B) the execution or performance of a contract with a foreign government or agency thereof.

(d) Injunctive relief

(1) When it appears to the Attorney General that any person to which this section applies, or
officer, director, employee, agent, or stockholder thereof, is engaged, or about to engage, in any
act or practice constituting a violation of subsection (a) of this section, the Attorney General
may, in his discretion, bring a civil action in an appropriate district court of the United States
to enjoin such act or practice, and upon a proper showing, a permanent injunction or a temporary
restraining order shall be granted without bond.

(2) For the purpose of any civil investigation which, in the opinion of the Attorney General, is
necessary and proper to enforce this section, the Attorney General or his designee are empowered to
administer oaths and affirmations, subpoena witnesses, take evidence, and require the production of
any books, papers, or other documents which the Attorney General deems relevant or material to such
investigation. The attendance of witnesses and the production of documentary evidence may be
required from any place in the United States, or any territory, possession, or commonwealth of the
United States, at any designated place of hearing.

(3) In case of contumacy by, or refusal to obey a subpoena issued to, any person, the Attorney
General may invoke the aid of any court of the United States within the jurisdiction of which such
investigation or proceeding is carried on, or where such person resides or carries on business, in
requiring the attendance and testimony of witnesses and the production of books, papers, or other
documents. Any such court may issue an order requiring such person to appear before the Attorney
General or his designee, there to produce records, if so ordered, or to give testimony touching the
matter under investigation. Any failure to obey such order of the court may be punished by such
court as a contempt thereof.

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(4) All process in any such case maybe served in the judicial district in which such person
resides or may be found. The Attorney General may make such rules relating to civil investigations
as may be necessary or appropriate to implement the provisions of this subsection.

(e) Penalties

	(1)	 	(A) Any juridical person that violates subsection (a) of this section shall be fined not more
than $2,000,000.

(B) Any juridical person that violates subsection (a) of this section shall be subject
to a civil penalty of not more than $10,000 imposed in an action brought by the Attorney
General.

	(2)	 	(A) Any natural person who willfully violates subsection (a) of this section shall be
fined not more than $ 100,000 or imprisoned not more than 5 years, or both.

(B) Any natural person who violates subsection (a) of this section shall be subject to a
civil penalty of not more than $ 10,000 imposed in an action brought by the Attorney
General.

	(3)	 	Whenever a fine is imposed under paragraph (2) upon any officer, director, employee, agent,
or stockholder of a person, such fine may not be paid, directly or
indirectly, by such person.

(f) Definitions

For purposes of this section:

	(1)	 	The term “person,” when referring to an offender,
means any natural person other than a national of the United States (as defined in 8 U.S.C. § 1101) or any corporation, partnership,
association, joint-stock company, business trust, unincorporated organization, or sole
proprietorship organized under the law of a foreign nation or a political subdivision thereof
	 
	(2)	 	(A) The term “foreign official” means any officer or employee of a foreign government or any
department, agency, or instrumentality thereof, or of a public international organization, or
any person acting in an official capacity for or on behalf of any such government or
department, agency, or instrumentality, or for or on behalf of any
such public international
organization.
	 
	 	 	For purposes of subparagraph (A), the term “public international organization” means —

	 	(i)	 	an organization that has been designated by Executive Order
pursuant to Section 1 of the Intemational Organizations Immunities Act (22 U.S.C.
§ 288); or

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	 	(ii)	 	any other international organization that is designated by the
President by Executive order for the purposes of this section, effective as of the
date of publication of such order in the Federal Register.

	(3)	 	(A) A person’s state of mind is “knowing” with respect to conduct, a circumstance, or a result
if—

	 	(i)	 	such person is aware that such person is engaging in
such conduct, that such circumstance exists, or that such result is
substantially certain to occur; or
	 
	 	(ii)	 	such person has a firm belief that such circumstance exists
or that such result is substantially certain to occur.

(B) When knowledge of the existence of a particular circumstance is required for an
offense, such knowledge is established if a person is aware of a high probability of the
existence of such circumstance, unless the person actually believes that such
circumstance does not exist.

	(4)	 	(A) The term “routine governmental action” means only an action which is ordinarily and
commonly performed by a foreign official in—

	 	(i)	 	obtaining permits, licenses, or other official documents to
qualify a person to do business in a foreign country;
	 
	 	(ii)	 	processing governmental papers, such as visas and work orders;
	 
	 	(iii)	 	providing police protection, mail pick-up and delivery, or scheduling
inspections associated with contract performance or inspections related to transit of goods
across country;
	 
	 	(iv)	 	providing phone service, power and water supply, loading and
unloading cargo, or protecting perishable products or commodities from
deterioration; or
	 
	 	(v)	 	actions of a similar nature.

(B) The term “routine governmental action” does not include any decision by a foreign
official whether, or on what terms, to award new business to or to continue business
with a particular party, or any action taken by a foreign official involved in the
decision-making process to encourage a decision to award new business to or continue
business with a particular party.

(5) The term “interstate commerce” means trade, commerce, transportation, or communication among
the several States, or between any foreign country and any State or between any State and any place
or ship outside thereof, and such term includes the intrastate use of—

(A) a telephone or other interstate means of communication, or

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(B) any other interstate instrumentality.

§ 78ff. Penalties

(a) Willful violations; false and misleading statements

Any person who willfully violates any provision of this chapter (other than section 78dd-1 of this
title), or any rule or regulation thereunder the violation of which is made unlawful or the
observance of which is required under the terms of this chapter, or any person who willfully and
knowingly makes, or causes to be made, any statement in any application, report, or document
required to be filed under this chapter or any rule or regulation thereunder or any undertaking
contained in a registration statement as provided in subsection
(d) of section 78o of this title,
or by any self-regulatory organization in connection with an application for membership or
participation therein or to become associated with a member thereof, which statement was false or
misleading with respect to any material fact, shall upon conviction be fined not more than
$5,000,000, or imprisoned not more than 20 years, or both, except that when such person is a person
other than a natural person, a fine not exceeding $25,000,000 may be imposed; but no person shall
be subject to imprisonment under this section for the violation of any rule or regulation if he
proves that he had no knowledge of such rule or regulation.

(b) Failure to file information, documents, or reports

Any issuer which fails to file information, documents, or reports required to be filed under
subsection (d) of section 78o of this title or any rule or regulation thereunder shall forfeit to
the United States the sum of $100 for each and every day such failure to file shall continue. Such
forfeiture, which shall be in lieu of any criminal penalty for such failure to file which might be
deemed to arise under subsection (a) of this section, shall be payable into the Treasury of the
United States and shall be recoverable in a civil suit in the name of the United States.

(c) Violations by issuers, officers, directors, stockholders, employees, or agents of issuers

	(1)	 	(A) Any issuer that violates subsection (a) or (g) of section 30A of this title [15
U.S.C, § 78dd-1] shall be fined not more than $2,000,000.

(B) Any issuer that violates subsection (a) or (g) of section 30A of this title [15 U.S.C. §
78dd-l] shall be subject to a civil penalty of not more than $10,000 imposed in an action
brought by the Commission.

40

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