Document:

exv10w2

 

Exhibit 10.2

AGREEMENT

     This
Agreement is entered into by and between Centex Corporation (the
“Company”) and [    ]
(the “Executive”) effective as of [    ].

     WHEREAS, the Board of Directors of the Company (the “Board”), has determined that it is in the
best interests of the Company and its stockholders to assure that the Company will have the
continued dedication of the Executive, notwithstanding the possibility, threat or occurrence of a
change of control; and

     WHEREAS, the Board believes it is imperative to diminish the inevitable distraction of the
Executive by virtue of the personal uncertainties and risks created by a pending or threatened
change of control and to encourage the Executive’s full attention and dedication to the Company in the event of any threatened or pending change of control, and to provide the Executive with this
Agreement that ensures that the compensation and benefits expectations of the Executive in
connection with a change of control will be satisfied and are competitive with those of other
corporations; and

     THEREFORE, in order to accomplish these objectives, the Board has caused the Company to enter
into this Agreement.

1. Certain Additional Payments by the Company.

     (a) Anything in this Agreement to the contrary notwithstanding and except as set
forth below, in the event it shall be determined that any Payment would be subject to
the Excise Tax, then the Executive shall be entitled to receive an additional payment
(the “Gross-Up Payment”) in an amount such that, after payment by the Executive of all
taxes (and any interest or penalties imposed with respect to such taxes), including,
without limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the Executive retains
an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.
Notwithstanding the foregoing provisions of this Section 1(a), if it shall be determined
by the Accounting Firm (as
defined below) that the Executive is entitled to the Gross-Up Payment, but that the
Parachute Value of all Payments does not exceed 110% of the Safe Harbor Amount, then
no Gross-Up Payment shall be made to the Executive and the amounts payable under this
Agreement or other plans and arrangements of the Company shall be reduced so that the
Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount. The
reduction of the amounts payable to the Executive, if applicable, shall be made by
first reducing the payments under the Company’s annual bonus plan as may be in effect
from time to time, unless an alternative method of reduction is elected by the
Executive, and in any event shall be made in such a manner as to maximize the Value of
all Payments actually made to the Executive. The Company’s obligation to make
Gross-Up Payments under this Section 1 shall not be conditioned upon the Executive’s
termination of employment.

     (b) Subject to the provisions of Section 1(c), all determinations required to be made
under this Section 1, including whether and when a Gross-Up Payment is required, the
amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by Deloitte & Touche LLP, or

 

 

such other nationally
recognized certified public accounting firm as may be designated by the Executive (the
“Accounting Firm”). The Accounting Firm shall provide detailed supporting calculations
both to the Company and the Executive within 15 business days of the receipt of notice
from the Executive that there has been a Payment subject to the
Excise Tax or such earlier time as is requested by
the Company. In the event that the Accounting Firm is serving as accountant or auditor
for the individual, entity or group effecting the change of control, the Executive may
appoint another nationally recognized accounting firm to make the determinations
required hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by
the Company. Any Gross-Up Payment, as determined pursuant to this Section 1, shall be
paid by the Company to the Executive within 5 days of the receipt of the Accounting
Firm’s determination. Any determination by the Accounting Firm shall be binding upon
the Company and the Executive. As a result of the uncertainty in the application of
Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) at the time
of the initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments that will not have been made by the Company should have been made (the
“Underpayment”), consistent with the calculations required to be made hereunder. In the
event the Company exhausts its remedies pursuant to Section 1(c) and the Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment
shall be promptly paid by the Company to or for the benefit of the Executive.

     (c) The Executive shall notify the Company in writing of any claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of a
Gross-Up Payment. Such notification shall be given as soon as practicable, but no later
than 10 business days after the Executive is informed in writing of such claim. The
Executive shall apprise the Company of the nature of such claim and the date on which
such claim is requested to be paid. The Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which the Executive gives such
notice to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies the Executive in
writing prior to the expiration of such period that the Company desires to contest such
claim, the Executive shall:

     (1) give the Company any information reasonably requested
by the Company relating to such claim,

     (2) take such action in connection with contesting such
claim as the Company shall reasonably request in writing from time to
time, including, without limitation, accepting legal representation with
respect to such claim by an attorney reasonably selected by the Company,

     (3) cooperate with the Company in good faith in order
effectively to contest such claim, and

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     (4) permit the Company to participate in any proceedings
relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest, and shall
indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax
(including interest and penalties) imposed as a result of such representation and payment of costs
and expenses. Without limitation on the foregoing provisions of this Section 1(c), the Company
shall control all proceedings taken in connection with such contest,
and, at its sole discretion, may pursue or forgo any and all administrative appeals, proceedings,
hearings and conferences with the applicable taxing authority in respect of such claim and may, at
its sole discretion, either pay the tax claimed to the appropriate taxing authority on behalf of
the Executive and direct the Executive to sue for a refund or contest the claim in any permissible
manner, and the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Company shall determine; provided, however, that, if the Company pays such claim and directs
the Executive to sue for a refund, the Company shall indemnify and hold the Executive harmless, on
an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed
with respect to such payment or with respect to any imputed income in connection with such payment;
and provided, further, that any extension of the statute of limitations relating to payment of
taxes for the taxable year of the Executive with respect to which such contested amount is claimed
to be due is limited solely to such contested amount. Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which the Gross-Up Payment would be payable
hereunder, and the Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.

     (d) If, after the receipt by the Executive of a Gross-Up Payment or payment by the
Company of an amount on the Executive’s behalf pursuant to Section 1(c), the Executive
becomes entitled to receive any refund with respect to the Excise Tax to which such
Gross-Up Payment relates or with respect to such claim, the Executive shall (subject to
the Company’s complying with the requirements of Section 1(c), if applicable) promptly
pay to the Company the amount of such refund (together with any interest paid or
credited thereon after taxes applicable thereto). If, after payment by the Company of
an amount on the Executive’s behalf pursuant to Section 1(c), a determination is made
that the Executive shall not be entitled to any refund with respect to such claim and
the Company does not notify the Executive in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination, then the
amount of such payment shall reduce, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

     (e) Notwithstanding any other provision of this Section 1, the Company may, in its
sole discretion, withhold and pay over to the Internal Revenue Service or any other
applicable taxing authority, for the benefit of the Executive, all or any portion of any
Gross-Up Payment, and the Executive hereby consents to such withholding.

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     (f) Definitions. The following terms shall have the following meanings for
purposes of this Section 1.

     (i) “Excise Tax” shall mean the excise tax imposed by Section 4999 of the Code, together
with any interest or penalties imposed with respect to such excise tax.

     (ii) “Parachute Value” of a Payment shall mean the present value as of the date of the change of
control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a
“parachute payment” under Section 280G(b)(2), as determined by the Accounting Firm for purposes of
determining whether and to what extent the Excise Tax will apply to such Payment.

     (iii) A “Payment” shall mean any payment or distribution in the nature of compensation (within
the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid
or payable pursuant to this Agreement or otherwise (including without limitation payments under
stock option and equity compensation plans, bonus plans, employment, change of control or severance
agreements or plans).

     (iv) The “Safe Harbor Amount” means 2.99 times the Executive’s “base amount,” within the meaning
of Section 280G(b)(3) of the Code.

     (v) “Value” of a Payment shall mean the economic present value of a Payment as of the date of
the change of control for purposes of Section 280G of the Code, as determined by the Accounting
Firm using the discount rate required by Section 280G(d)(4) of the Code.

2. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any company controlled by, controlling or under common control with the Company (the
“Affiliated Companies”) and for which the Executive may qualify, nor shall anything herein limit or
otherwise affect such rights as the Executive may have under any other contract or agreement with
the Company or the Affiliated Companies. Amounts that are vested benefits or that the Executive is
otherwise entitled to receive under any plan, policy, practice or program of or any other contract
or agreement with the Company or the Affiliated Companies at or subsequent to the date of
termination shall be payable in accordance with such plan, policy, practice or program or contract
or agreement.

3. Full Settlement. The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off,
counterclaim, recoupment, defense, or other claim, right or action that the Company may have
against the Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement, and such amounts shall not be reduced whether or not
the Executive obtains other

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employment. The Company agrees to pay as incurred (within 10 days
following the Company’s receipt of an invoice from the Executive), to the full extent permitted by
law, all legal fees and expenses that the Executive may reasonably incur as a result of any contest
(regardless of the outcome thereof) by the Company, the Executive or others of the validity or
enforceability of, or liability under, any provision of this Agreement or any guarantee of
performance thereof (including as a result of any contest by the Executive about the amount of any
payment pursuant to this Agreement), plus, in each case, interest on any delayed payment at the
applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

4. Successors.

     
(a) This Agreement is personal to the Executive, and, without the prior written consent of the
Company, shall not be assignable by the Executive other than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s
legal representatives and his heirs. This Agreement shall inure to the benefit of and be binding upon the Company
and its successors and assigns. Except as provided in Section 4(b), without the prior written
consent of the Executive this Agreement shall not be assignable by the Company.

     (b) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place.
“Company” means the Company as hereinbefore defined and any successor to its business and/or assets
as aforesaid that assumes and agrees to perform this Agreement by operation of law or otherwise.

5. Miscellaneous.

     (a) This Agreement shall be governed by and construed in accordance with the laws of the
State of Nevada, without reference to principles of conflict of laws. The captions of this
Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement
may not be amended or modified other than by a written agreement executed by the parties hereto or
their respective successors, heirs and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

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if to the Executive:

At the most recent address on file at the Company.

if to the Company:

Centex Corporation

2728 North Harwood

Dallas, Texas 75201

Telephone: 214-981-6544

Facsimile: 214-981-6855

Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

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IN WITNESS WHEREOF, the Executive and the Company have caused this Agreement
to be executed as of the date first specified above.

	 	 	 	 	 	 
	 	 	CENTEX CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	      Name:
	 

	 	 	 	      Title:
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	EXECUTIVE

7exv4w4

 

Exhibit 4.4

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH,
THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

Warrant No.

Date of Issuance: February ___, 2005

MICRUS CORPORATION

Common Stock Warrant

     Micrus Corporation (the “Company”), for value received, hereby certifies that «Holder»
(the “Holder”), is entitled, subject to the terms set forth below, to purchase from the
Company, at any time after the date hereof and on or before the Expiration Date (as defined in
Section 5 below), shares of the Company’s Common Stock. This Warrant is issued pursuant to a
Series E Preferred Stock and Warrant Purchase Agreement dated February ___, 2005 between the Company
and each of the Purchasers (as defined therein) (the “Purchase Agreement”) and is subject
to the terms and conditions of the Purchase Agreement.

     A. Number of Shares and Exercise Price. Subject to the terms and conditions
hereinafter set forth, the Holder is entitled, upon surrender of this Warrant, to (i) in the event
no public offering of the Company’s equity securities has occurred on or before December 31, 2005,
this Warrant will be exercisable at any time after December 31, 2005 for that number of shares
(subject to adjustment as provided herein) of Common Stock equal to 50% of the number of shares of
Series E Preferred Stock the Holder purchased pursuant to the Purchase Agreement at an exercise
price of $4.00 per share; and (ii) in the event the Company closes a public offering of the
Company’s equity securities in which the proceeds per share of Series E Preferred Stock held by the
Holder prior to such public offering (before the payment of any underwriting discounts and assuming
such share of Series E Preferred Stock was converted into Common Stock and such shares of Common
Stock are sold in such public offering) (the “Series E Proceeds per Share”) is less than
$6.00 per share, this Warrant will become immediately exercisable for (in addition to any shares
exercisable pursuant to subsection A.(i) above) that number of shares of Common Stock equal to the
quotient of (a) $6.00 less the Series E Proceeds per Share; divided by (b) the proceeds per share
of Common Stock in such public offering (before the payment of any underwriting discounts);
multiplied by the number of shares of Series E Preferred Stock the holder of the Warrant purchased
in the Financing, at an exercise price of $0.0001 per share. The shares purchasable upon exercise
of this Warrant and the purchase price per share, as adjusted from time to time pursuant to the
provisions of this Warrant, are sometimes hereinafter referred to as the “Warrant Stock”
and the “Purchase Price,” respectively.

 

 

     1. Exercise.

          (a) Manner of Exercise. This Warrant may be exercised by the Holder, in whole or in
part, by surrendering this Warrant, with the purchase/exercise form appended hereto as Exhibit
A duly executed by such Holder or by such Holder’s duly authorized attorney, at the principal
office of the Company, or at such other office or agency as the Company may designate, accompanied
by payment in full of the Purchase Price payable in respect of the number of shares of Warrant
Stock purchased upon such exercise. The Purchase Price may be paid by cash, check, wire transfer
or by the surrender of promissory notes or other instruments representing indebtedness of the
Company to the Holder.

          (b) Effective Time of Exercise. Each exercise of this Warrant shall be deemed to have
been effected immediately prior to the close of business on the day on which this Warrant shall
have been surrendered to the Company as provided in Section 1(a) above. At such time, the person
or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such
exercise as provided in Section 1(d) below shall be deemed to have become the holder or holders of
record of the Warrant Stock represented by such certificates.

          (c) Net Issue Exercise.

               (i) In lieu of exercising this Warrant in the manner provided above in Section 1(a), the
Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being
canceled) by surrender of this Warrant at the principal office of the Company together with notice
of such election on the purchase/exercise form appended hereto as Exhibit A duly executed
by such Holder or such Holder’s duly authorized attorney, in which event the Company shall issue to
holder a number of shares of Common Stock computed using the following formula:

	 	 	 
	X
	 	= Y (A - B)
	 
	 	 
	 
	 	A

	 	 	 
	Where

	 	X = The number of shares of Common Stock to be issued to the Holder.
	 
	 	 
	 

	 	Y = The number of shares of Common Stock purchasable under this Warrant
(at the date of such calculation).
	 
	 	 
	 

	 	A = The fair market value of one share of Common Stock (at the date of
such calculation).
	 
	 	 
	 

	 	B = The Purchase Price (as adjusted to the date of such calculation).

               (ii) For purposes of this Section 1(c), the fair market value of one share of Common Stock on
the date of calculation shall mean:

                    (A) if the exercise is in connection with an initial public offering of the Company’s Common
Stock, and if the Company’s Registration Statement relating to such public offering has been
declared effective by the Securities and Exchange Commission,

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then the fair market value of Common
Stock shall be the initial “Price to Public” per share specified in the final prospectus with
respect to the offering;

                    (B) if this Warrant is exercised after, and not in connection with, the Company’s initial
public offering, and if the Company’s Common Stock is traded on a securities exchange or The Nasdaq
Stock Market or actively traded over-the-counter:

                         (1) if the Company’s Common Stock is traded on a securities exchange or The Nasdaq Stock
Market, the fair market value shall be deemed to be the average of the closing prices over a thirty
(30) day period ending three days before date of calculation; or

                          (2) if the Company’s Common Stock is actively traded over-the-counter, the fair market value
shall be deemed to be the average of the closing bid or sales price (whichever is applicable) over
the thirty (30) day period ending three days before the date of calculation; or

                    (C) if neither (A) nor (B) is applicable, the fair market value shall be at the highest price
per share which the Company could obtain on the date of calculation from a willing buyer (not a
current employee or director) for shares of Common Stock sold by the Company, from authorized but
unissued shares, as determined in good faith by the Board of Directors, unless the Company is at
such time subject to an acquisition as described in Section 5(b) below, in which case the fair
market value per share of Common Stock shall be deemed to be the value of the consideration per
share received by the holders of such stock pursuant to such acquisition.

          (d) Delivery to Holder. As soon as practicable after the exercise of this Warrant in
whole or in part, and in any event within ten (10) days thereafter, the Company at its expense will
cause to be issued in the name of, and delivered to, the Holder, or as such Holder (upon payment by
such Holder of any applicable transfer taxes) may direct:

                    (i) a certificate or certificates for the number of shares of Warrant Stock to which such
Holder shall be entitled, and

                    (ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof)
of like tenor, calling in the aggregate on the face or faces thereof for the number of shares of
Warrant Stock equal (without giving effect to any adjustment therein) to the number of such shares
called for on the face of this Warrant minus the number of such shares purchased by the Holder upon
such exercise as provided in Section 1(a) above.

     2. Adjustments.

          (a) Reclassification, Etc. In case of any reclassification or change of the
outstanding securities of the Company or of any reorganization of the Company (or any other
corporation the stock or securities of which are at the time receivable upon the exercise of this
Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such
case the holder of this Warrant, upon the exercise hereof at any time after the consummation

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     of such reclassification, change, reorganization, merger or conveyance, shall be entitled to receive,
in lieu of the stock or other securities and property receivable upon the exercise hereof prior to
such consummation, the stock or other securities or property to which
such holder would have been entitled upon such consummation if such holder had exercised this
Warrant immediately prior thereto, and in each such case, the terms of this Section 2 shall be
applicable to the shares of stock or other securities properly receivable upon the exercise of this
Warrant after such consummation.

          (b) Adjustment Certificate. When any adjustment is required to be made in the Warrant
Stock or the Purchase Price pursuant to this Section 2, the Company shall promptly mail to the
Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment,
(ii) the Purchase Price after such adjustment and (iii) the kind and amount of stock or other
securities or property into which this Warrant shall be exercisable after such adjustment.

     3. Transfers.

          (a) Unregistered Security. Each holder of this Warrant acknowledges that this Warrant
and the Warrant Stock have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or
otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise in the absence of
(i) an effective registration statement under the Act as to this Warrant or such Warrant Stock and
registration or qualification of this Warrant or such Warrant Stock under any applicable U.S.
federal or state securities law then in effect or (ii) an opinion of counsel, satisfactory to the
Company, that such registration and qualification are not required; provided, however, that no such
opinion shall be required if the transfer is in accordance with Section 4(c) of the Amended and
Restated Stockholders’ Agreement. Each certificate or other instrument for Warrant Stock issued
upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect.

          (b) Transferability. Subject to the provisions of Section 3(a) hereof and of Section
4(i) of the Amended and Restated Stockholders’ Agreement dated on or about the date hereof among
the Company and certain holders of the Company’s securities, this Warrant and all rights hereunder
are transferable, in whole or in part, upon surrender of the Warrant with a properly executed
assignment (in the form of Exhibit B hereto) at the principal office of the Company.

          (c) Warrant Register. The Company will maintain a register containing the names and
addresses of the Holders of this Warrant. Until any transfer of this Warrant is made in the
warrant register, the Company may treat the Holder of this Warrant as the absolute owner hereof for
all purposes; provided, however, that if this Warrant is properly assigned in
blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner
hereof for all purposes, notwithstanding any notice to the contrary. Any Holder may change such
Holder’s address as shown on the warrant register by written notice to the Company requesting such
change.

     4. No Impairment. The Company will not, by amendment of its charter or through
reorganization, consolidation, merger, dissolution, sale of assets or any other voluntary action,

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avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will
(subject to Section 13 below) at all times in good faith assist in the carrying out of all such
terms and in the taking of all such action as may be necessary or appropriate in order to
protect the rights of the holder of this Warrant against impairment.

     5. Termination. This Warrant (and the right to purchase securities upon exercise
hereof) shall terminate upon the earliest to occur of the following (the “Expiration
Date”): (a) January 1, 2011, or (b) the sale, conveyance or disposal of all or substantially
all of the Company’s property or business or the Company’s merger with or into or consolidation
with any other corporation (other than a wholly-owned subsidiary of the Company) or any other
transaction or series of related transactions in which more than fifty percent (50%) of the voting
power of the Company is disposed of; provided that the Company provide written notice to
Holder at least ten (10) days prior to the consummation of such sale, conveyance or disposal;
provide, further, that this Section 5(b) shall not apply to a merger effected
exclusively for the purpose of changing the domicile of the Company or to an equity financing in
which the Company is the surviving corporation.

     6. Notices of Certain Transactions. In case:

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

          (b) of any capital reorganization of the Company, any reclassification of the capital stock of
the Company, any consolidation or merger of the Company, any consolidation or merger of the Company
with or into another corporation (other than a consolidation or merger in which the Company is the
surviving entity), or any transfer of all or substantially all of the assets of the Company, or

          (c) of the voluntary or involuntary dissolution, liquidation or winding-up of the Company,
then, and in each such case, the Company will mail or cause to be mailed to the Holder of this
Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for
the purpose of such dividend, distribution or right, and stating the amount and character of such
dividend, distribution or right, or (ii) the effective date on which such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to
take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock
(or such other stock or securities at the time deliverable upon such reorganization,
reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up) are to
be determined. Such notice shall be mailed at least ten (10) days prior to the record date or
effective date for the event specified in such notice.

     7. Reservation of Stock. The Company will at all times reserve and keep available,
solely for the issuance and delivery upon the exercise of this Warrant, such shares of Warrant

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Stock and other stock, securities and property, as from time to time shall be issuable upon the
exercise of this Warrant, free from preemptive rights. The Company covenants and agrees that all
Warrant Stock that may be issued upon the exercise of the rights represented by this Warrant
will, upon issuance, be validly issued and outstanding, fully paid and nonassessable, and free
from all taxes, liens and charges with respect to the issuance thereof.

     8. Exchange of Warrants. Upon the surrender by the Holder of any Warrant or Warrants,
properly endorsed, to the Company at the principal office of the Company, the Company will, subject
to the provisions of Section 3 hereof, issue and deliver to or upon the order of such Holder, at
the Company’s expense, a new Warrant or Warrants of like tenor, in the name of such Holder or as
such Holder (upon payment by such Holder of any applicable transfer taxes) may direct, calling in
the aggregate on the face or faces thereof for the number of shares of Common Stock called for on
the face or faces of the Warrant or Warrants so surrendered.

     9. Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss,
theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required)
in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender
and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like
tenor.

     10. Notices. Any notice required or permitted by this Warrant shall be in writing and
shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight
delivery service or confirmed facsimile, or forty-eight (48) hours after being deposited in the
regular mail as certified or registered mail with postage prepaid, addressed (a) if to the Holder,
to the address of the Holder most recently furnished in writing to the Company and (b) if to the
Company, to the address set forth below or subsequently modified by written notice to the Holder.
All notices to international addresses shall be sent via nationally recognized express courier.

     11. No Rights as Stockholder. Until the exercise of this Warrant, the Holder of this
Warrant shall not have or exercise any rights by virtue hereof as a stockholder of the Company.

     12. No Fractional Shares. No fractional shares of Common Stock will be issued in
connection with any exercise hereunder. In lieu of any fractional shares which would otherwise be
issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair
market value of one share of Common Stock on the date of exercise, as determined in good faith by
the Company’s Board of Directors.

     13. Amendment or Waiver. Any term of this Warrant may be amended or waived upon
written consent of the Company and the holders of at least a majority of the Common Stock issuable
upon exercise of outstanding warrants purchased pursuant to the Purchase Agreement. By acceptance
hereof, the Holder acknowledges that in the event the required consent is obtained, any term of
this Warrant may be amended or waived with or without the consent of the Holder; provided,
however, that any amendment hereof that would materially
adversely affect the

-6-

 

Holder in a
manner different from the holders of the remaining warrants issued pursuant to the Purchase
Agreement shall also require the consent of Holder.

     14. Headings. The headings in this Warrant are for purposes of reference only and
shall not limit or otherwise affect the meaning of any provision of this Warrant.

     15. Governing Law. This Warrant shall be governed, construed and interpreted in
accordance with the laws of the State of California, without giving effect to principles of
conflicts of law.

	 	 	 	 	 
	 	MICRUS CORPORATION

 	 
	 	 	 
	 	Signature 	 
	 	 	 
	 	 	 
	 	Print Name and Title of Signatory 	 
	 	 	 

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 

-7-

 

EXHIBIT A

PURCHASE/EXERCISE FORM

			
	To: Micrus Corporation
	 	Dated: ___

     The undersigned, pursuant to the provisions set forth in the attached Warrant No. «WarrantNo»,
hereby irrevocably elects to (a) purchase ___shares of the Common Stock covered by
Section A(___) of such Warrant and herewith makes payment of $ ___, representing the full
purchase price for such shares at the price per share provided for in such Warrant, or (b) exercise
such Warrant for ___shares purchasable under the Warrant pursuant to the Net Issue Exercise
provisions of Section 1(c) of such Warrant.

     The undersigned acknowledges that it has reviewed the representations and warranties contained
in Section 3 of the Purchase Agreement (as defined in the Warrant) and by its signature below
hereby makes such representations and warranties to the Company. Defined terms contained in such
representations and warranties shall have the meanings assigned to them in the Purchase Agreement,
provided that the term “Purchaser” shall refer to the undersigned and the term “Securities”
shall refer to the Warrant Stock.

     The undersigned further acknowledges that it has reviewed the market standoff provisions set
forth in Section 4(i) of the Amended and Restated Stockholders’ Agreement dated on or about the
date of the Warrant (as amended from time to time) and agrees to be bound by such provisions.

	 	 	 	 	 
	 	HOLDER:

 	 
	 	 	 
	 	Signature 	 
	 
	 	 	 
	 	Print Name of Holder 	 
	 	 	 
	 	
 	 
	 	Print name and title of signatory (if entity) 	 
	 	 	 

 

 

EXHIBIT B

ASSIGNMENT FORM

     FOR VALUE RECEIVED, ____________________________hereby sells, assigns and transfers all of the
rights of the undersigned under the attached Warrant with respect to the number of shares of Common
Stock covered thereby set forth below, to:

	 	 	 	 	 
	Name of Assignee	 	Address/Fax Number	 	No. of Shares
	 

	 	 
	 	 

	 	 	 
	Dated: _______________
	 	Signature:  

	 
	 	 
	 
	 	 
	 

	 	 

	 
	 	 
	 

	 	Witness:

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