EXHIBIT 10.1


 


BIOJECT MEDICAL TECHNOLOGIES INC.


 


FORM OF CONVERTIBLE NOTE PURCHASE AND WARRANT AGREEMENT


 


This
Convertible Note Purchase and Warrant Agreement (the “Agreement”)
is made as of December 5, 2007, by and between Bioject
Medical Technologies Inc., an Oregon corporation (the “Company”), and                                                       ,
(“Purchaser”).


 


RECITALS


 


The Company desires to issue
and sell and the Purchaser desires to purchase a convertible subordinated promissory
note in substantially the form attached to this Agreement as Exhibit A (the “Notes”), which
shall be convertible on the terms stated therein into stock of the
Company.  Purchasers shall also receive a
warrant to purchase additional shares of the Company pursuant to the form of
warrant attached hereto as Exhibit B.  The Note, the equity securities issuable upon
conversion thereof (and any securities issuable upon conversion of such equity
securities), the warrant and the equity securities issued upon the Purchaser’s
exercise of the warrant are collectively referred to herein as the “Securities.”  Terms
not otherwise defined in this Agreement shall have the meaning given to them in
the Note attached hereto as Exhibit A.


 


AGREEMENT


 


In consideration of the
mutual promises contained herein and other good and valuable consideration,
receipt of which is hereby acknowledged, the parties to this Agreement agree as
follows:


 


1.                                      Purchase and Sale of Notes and Warrants.


 


(a)                                 Sale and Issuance of Notes. 
Subject to the terms and conditions of this Agreement, each Purchaser
agrees to purchase at the Closing and the Company agrees to sell and issue to
Purchaser a Note in the principal amount of             .  The purchase price of each Note shall be
equal to 100% of the principal amount of such Note.  The Note shall be convertible into equity
securities of the Company as provided for under the Note, and the Warrant shall
be exercisable for equity securities of the Company as provided for under the
Warrant.


 


(b)                                 Warrants.  Upon the
Closing (as defined in Section 1(c) below), Purchaser shall receive a
warrant to purchase             
shares of the Company’s common stock in the form attached hereto as Exhibit B (the “Warrant”).    The exercise price of the Warrant (“Exercise Price”) shall be the $0.75 per share price, subject
to adjustment as set forth in the Warrant.


 


(c)                                  Closing; Delivery.


 


(i)                                     The
initial purchase and sale of the Notes shall take place at the offices of the
Company, 20245 S.W. 95th Ave., Tualatin, OR 97062, at 1:00 p.m.,
on December 5, 2007 (the “Closing”).  At Closing, the Company shall deliver to
Purchaser the Note to be purchased by Purchaser against payment of the purchase
price therefor by personal check (acceptance by the Company is subject to
receipt of readily available funds) cashier’s check or by wire transfer to the
Company’s bank account and the duly executed Warrant and the parties shall
execute and deliver the Registration Rights Agreement in the form attached
hereto as Exhibit C (the “Registration Rights Agreement”).


 


2.                                      Stock Purchase Agreement.


 


(a)                                 Purchaser
understands and agrees that the conversion of the Note into equity securities
of the Company may require such Purchaser’s execution of certain agreements (in
form reasonably agreeable to a majority in interest of the Purchasers) relating
to the purchase and sale of such securities as well as registration,
information and voting rights, if any, relating to such equity securities.


 

















 


(b)                                 Purchaser
agrees to be bound by the agreements described in Section 2(a).


 


3.                                      Representations and Warranties of the Company.  The Company hereby represents and warrants to
each Purchaser that:


 


(a)                                 Organization.  The
Company is a corporation duly organized and validly existing under the laws of
the State of Oregon and has all requisite corporate power and authority to
carry on its business as now conducted and as proposed to be conducted.


 


(b)                                 Authorization.  All
corporate action on the part of the Company, its officers, directors and
shareholders necessary for the authorization, execution and delivery of this
Agreement and the authorization, sale, issuance and delivery of the Note, the
Warrant, the Registration Rights Agreement, the shares of the Company’s capital
stock issuable on conversion or exercise thereunder, and the performance of all
obligations of the Company hereunder and thereunder, has been taken or will be
taken prior to the Closing.  The shares
of Common Stock issuable upon exercise of the Warrant and pursuant to Section 4.1.1
of the Note, upon issuance in accordance with the terms of the Warrant or Note,
as applicable, will be duly and validly issued, fully paid, and nonassessable. The
Agreement, the Registration Rights Agreement, the Note and the Warrant, when
executed and delivered by the Company, shall constitute valid and legally
binding obligations of the Company, enforceable against the Company in
accordance with their terms except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and other laws
of general application affecting enforcement of creditors’ rights generally, as
limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies.


 


(c)                                  Governmental Consents. 
All consents, approvals, orders or authorizations of, or registrations,
qualifications, designations, declarations or filings with, any governmental
authority, required on the part of the Company in connection with the valid
execution and delivery of this Agreement, the Registration Rights Agreement,
the offer, sale or issuance of the Note, the Warrant, conversion of the Note,
exercise of the Warrant or the consummation of any other transaction
contemplated hereby shall have been obtained and will be effective at the
Closing, except for notices required or permitted to be filed with certain
state and federal securities commissions, which notices will be filed on a
timely basis.


 


(d)                                 Offering.  Assuming
the accuracy of the representations and warranties of the Purchasers contained
in Section 4 hereof, the offer, issue and sale of the Notes and the
Warrant are and will be exempt from the registration and prospectus delivery
requirements of the Securities Act of 1933, as amended (the “Securities Act”), and have been registered or qualified (or
are exempt from registration and qualification) under the registration, permit
or qualification requirements of all applicable state securities laws.


 


(e)                                  SEC Documents; Financial Statements.  As
of the Closing, the Company shall have filed all reports, schedules, forms,
statements and other documents required to be filed by it with the Securities
and Exchange Commission (“SEC”) pursuant
to the reporting requirements of the Securities Exchange Act of 1934, as
amended (the “1934 Act”) (all of the foregoing
filed prior to the date hereof and all exhibits included therein and financial
statements and schedules thereto and documents incorporated by reference
therein being hereinafter referred to as the “SEC
Documents”).  As of their
respective dates, the SEC Documents complied in all material respects with the
requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC
Documents, at the time they were filed with the SEC, contained any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light
of the circumstances under which they were made, not misleading.  As of their respective dates, the financial
statements of the Company included in the SEC Documents complied as to form in
all material respects with applicable accounting requirements and the published
rules and regulations of the SEC with respect thereto.  Such financial statements have been prepared
in accordance with generally accepted accounting principles, consistently
applied, during the periods involved (except in the case of unaudited interim
statements, to the extent they may exclude footnotes or may be condensed or
summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its
operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments).  No other information provided by or on behalf
of the Company to the Purchaser which is not included in the SEC Documents
contains any untrue statement of a material fact or 


 


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omits to state any
material fact necessary in order to make the statements therein, in the light
of the circumstance under which they are or were made, not misleading.


 


4.                                      Representations and Warranties of the Purchaser.  Purchaser hereby represents and warrants to
the Company that:


 


(a)                                 Authorization.  The
Purchaser has the full right, power and authority to enter into and perform the
Purchaser’s obligations under this Agreement, and this Agreement when executed
and delivered by the Purchaser will constitute valid and binding obligations of
the Purchaser, enforceable in accordance with their respective terms, subject
to the laws of general application relating to bankruptcy, insolvency and the
relief of debtors, rules of law governing specific performance, injunctive
relief or other equitable remedies.


 


(b)                                 Purchase Entirely for Own Account.  The Securities to be acquired by the
Purchaser will be acquired for investment for the Purchaser’s own account, not
as a nominee or agent, and not with a view to the resale or distribution of any
part thereof, and the Purchaser has no present intention of selling, granting
any participation in, or otherwise distributing the same.  The Purchaser is not an entity formed for the
specific purpose of acquiring any of the Securities.


 


(c)                                  Knowledge.  The
Purchaser is aware of the Company’s business affairs and financial condition
and has acquired sufficient information about the Company to reach an informed
and knowledgeable decision to acquire the Securities.  The Purchaser has had the opportunity to ask
questions of the Company concerning the Company’s business and any related
matter, and has received answer to his or her satisfaction.


 


(d)                                 Restricted Securities. 
The Purchaser understands that the Securities have not been, and will
not be, registered under the Securities Act, by reason of a specific exemption
from the registration provisions of the Securities Act which depends upon,
among other things, the bona fide nature of the investment intent and the
accuracy of the Purchaser’s representations as expressed herein.  The Purchaser understands that the Securities
are “restricted securities” under applicable U.S. federal and state
securities laws and that, pursuant to these laws, the Purchaser must hold the
Securities indefinitely unless they are registered with the Securities and
Exchange Commission and qualified by state authorities, or an exemption from
such registration and qualification requirements is available.  The Purchaser further acknowledges that if an
exemption from registration or qualification is available, it may be
conditioned on various requirements including, but not limited to, the time and
manner of sale, the holding period for the Securities, and on requirements
relating to the Company which are outside of the Purchaser’s control, and which
the Company is under no obligation and may not be able to satisfy.


 


(e)                                  Legends.  The
Purchaser understands that the Securities, and any securities issued in respect
thereof or exchange therefor, may bear one or all of the following legends:


 


(i)                                     “THIS
NOTE, AND THE SECURITIES ISSUABLE PURSUANT TO A CONVERSION OF THIS NOTE, HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THIS NOTE, AND THE SECURITIES ISSUABLE
PURSUANT TO A CONVERSION OF THIS NOTE, HAVE BEEN ACQUIRED WITHOUT A VIEW TO
DISTRIBUTION AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THIS
NOTE, OR FOR THE SECURITIES ISSUABLE PURSUANT TO A CONVERSION OF THIS NOTE, AS
THE CASE MAY BE, UNDER THE ACT AND UNDER ANY APPLICABLE STATE SECURITIES
LAWS, OR AN OPINION OF COUNSEL FOR THE HOLDER (CONCURRED IN BY LEGAL COUNSEL
FOR THE CORPORATION) THAT SUCH REGISTRATION IS NOT REQUIRED AS TO SUCH SALE OR
OFFER”


 


(ii)                                  “THIS
WARRANT, AND THE SECURITIES ISSUABLE PURSUANT TO AN EXERCISE OF THIS WARRANT,
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”).  THIS WARRANT, AND THE SECURITIES ISSUABLE
PURSUANT TO AN EXERCISE OF THIS WARRANT, HAVE BEEN ACQUIRED WITHOUT A VIEW TO
DISTRIBUTION AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THIS
WARRANT, OR FOR THE SECURITIES ISSUABLE PURSUANT TO AN EXERCISE OF THIS
WARRANT, AS THE CASE MAY BE, 


 


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UNDER THE ACT AND UNDER
ANY APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL FOR THE HOLDER
(CONCURRED IN BY LEGAL COUNSEL FOR THE CORPORATION) THAT SUCH REGISTRATION IS
NOT REQUIRED AS TO SUCH SALE OR OFFER”


 


(iii)                               Any
legend required by the Blue Sky laws of any state to the extent such laws are
applicable to the shares represented by the certificate so legended.


 


(f)                                   Accredited Investor. 
The Purchaser is an accredited investor as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act.  Purchaser is in a financial position to hold
the Securities and is able to bear the economic risk and withstand a complete
loss of Purchaser’s investment in the Securities.


 


5.                                      Conditions of the Purchaser’s Obligations at Closing.  The obligations of Purchaser to the Company
under this Agreement are subject to the fulfillment, on or before the Closing,
of each of the following conditions, unless otherwise waived:


 


(a)                                 Representations and Warranties.  The representations and warranties of the
Company contained in Section 3 shall be true on and as of the Closing with
the same effect as though such representations and warranties had been made on
and as of the date of the Closing.


 


(b)                                 Qualifications.  All
authorizations, approvals or permits, if any, of any governmental authority or
regulatory body of the United States or of any state that are required in
connection with the lawful issuance and sale of the Securities pursuant to this
Agreement shall be obtained and effective as of the Closing.


 


6.                                      Conditions of the Company’s Obligations at Closing.  The obligations of the Company to Purchaser
under this Agreement are subject to the fulfillment, on or before the Closing,
of each of the following conditions, unless otherwise waived:


 


(a)                                 Representations and Warranties.  The representations and warranties of each
Purchaser contained in Section 4 shall be true on and as of the Closing
with the same effect as though such representations and warranties had been
made on and as of the date of the Closing.


 


(b)                                 Qualifications.  All
authorizations, approvals or permits, if any, of any governmental authority or
regulatory body of the United States or of any state that are required in
connection with the lawful issuance and sale of the Securities pursuant to this
Agreement shall be obtained and effective as of the Closing.


 


(c)                                  Payment of Principal Amount. 
Purchaser shall have paid by check or wire transfer of immediately
available funds the principal amount set forth on the signature page of
this Agreement.


 


7.                                      Miscellaneous.


 


(a)                                 Successors and Assigns.  The
terms and conditions of this Agreement shall inure to the benefit of and be
binding upon the respective successors and assigns of the parties.  Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or
their respective successors and assigns any rights, remedies, obligations, or
liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement.


 


(b)                                 Governing Law.  This
Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the State of Oregon, without giving effect to
principles of conflicts of law.  The
parties agree that the state or federal courts located in the State of Oregon
constitute the sole and exclusive venue, and the exclusive jurisdiction, for
disputes arising under or with respect to this Agreement.


 


(c)                                  Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one instrument.


 


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(d)                                 Titles and Subtitles. 
The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this Agreement.


 


(e)                                  Notices.  Any notice
required or permitted by this Agreement 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 U.S. mail as certified or registered mail with postage
prepaid, if such notice is addressed to the party to be notified at such party’s
address or facsimile number as set forth below or as subsequently modified by
written notice.


 


(f)                                   Finder’s Fee.  Except
as may otherwise be specifically agreed to by the parties, each party
represents that it neither is nor will be obligated for any finder’s fee or
commission in connection with this transaction. 
Each Purchaser agrees to indemnify and to hold harmless the Company from
any liability for any commission or compensation in the nature of a finder’s
fee (and the costs and expenses of defending against such liability or asserted
liability) for which each Purchaser or any of its officers, employees, or
representatives is responsible.  The
Company agrees to indemnify and hold harmless each Purchaser from any liability
for any commission or compensation in the nature of a finder’s fee (and the
costs and expenses of defending against such liability or asserted liability)
for which the Company or any of its officers, employees or representatives is
responsible.


 


(g)                                  Amendments and Waivers. 
Any term of this Agreement may be amended or waived only with the
written consent of the Company and the holders of at least a majority of the
outstanding principal amount of the Notes. 
Any amendment or waiver effected in accordance with this Section 7(g) shall
be binding upon the Purchasers and each transferee of the Securities, each
future holder of all such Securities, and the Company.


 


(h)                                 Severability.  If one
or more provisions of this Agreement are held to be unenforceable under
applicable law or in violation of any law, exchange rule or regulation to
which the Company is subject, the parties agree to renegotiate such provision
in good faith, in order to maintain the economic position enjoyed by each party
as close as possible to that under the provision rendered unenforceable.  In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (i) such
provision shall be excluded from this Agreement, (ii) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (iii) the
balance of the Agreement shall be enforceable in accordance with its terms.


 


(i)                                     Entire Agreement. 
This Agreement, and the documents referred to herein constitute the
entire agreement between the parties hereto pertaining to the subject matter
hereof and any and all other written or oral agreements existing between the
parties hereto are expressly canceled.


 


[Signature Page Follows]


 


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The parties have executed
this Convertible Note Purchase and Warrant Agreement as of the date first
written above.


 


	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  Bioject Medical Technologies
  Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Ralph Makar

  
	
   

  	
  Name: 

  	
  Ralph Makar

  
	
   

  	
  Title:

  	
  President and CEO

  
	
   

  	
  Address: 20245 S.W. 95th
  Ave, Tualatin, OR 97062

  
	
   

  	
  Facsimile Number:
  503-692-6698

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
              

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
              

  
	
   

  	
  Name: 

  	
  James C. Gale

  
	
   

  	
  Title:

  	
   Managing Director

  
	
   

  	
   

  
	
   

  	
  Address of Holder:

  
	
   

  	
   

  	
  152 W. 57th Street, 19th Floor

  
	
   

  	
   

  	
  New York, NY 10019

  
					



 


Exhibits:


 


A
–Form of Convertible Promissory Note


B
– Form of Warrant


C
– Form of Registration Rights Agreement


 


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