Document:

ex4-3

 

EXHIBIT 4.3

PURCHASE AGREEMENT

     This PURCHASE AGREEMENT (this “Agreement”), dated as of January 28, 2002,
is entered into by and between Digene Corporation, a Delaware corporation with
offices at 1201 Clopper Road, Gaithersburg, MD 20878 (the “Company”), and
     (the “Purchaser”), for the purchase and sale of
shares of the common stock, par value $0.01 per share (the “Common Stock”), of
the Company by the Purchaser, in the manner, and upon the terms, provisions and
conditions set forth in this Agreement.

     WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the Purchaser
and Purchaser shall purchase shares of Common Stock; and

     WHEREAS, such purchase and sale will be made in reliance upon the
provisions of Section 4(2) of the United States Securities Act of 1933, as
amended (the “Securities Act”), and Rule 506 of Regulation D (“Regulation D”)
promulgated under the Securities Act or upon such other exemption from the
registration requirements of the Securities Act as may be available with
respect to any or all of the purchases of Common Stock to be made hereunder.

     NOW, THEREFORE, in consideration of the representations, warranties and
agreements contained herein and other good and valuable consideration, the
receipt and legal adequacy of which is hereby acknowledged by the parties, the
Company and the Purchaser hereby agree as follows:

     1.     Purchase Price.

             (a)     Upon the following terms and subject to the conditions contained
herein, the Purchaser hereby agrees to purchase      shares of the Company’s
Common Stock (the “Shares”) at a per share price of $25.50 and for an aggregate
purchase price of      (the “Purchase Price”).

             (b)     The Company has authorized and has reserved and covenants to continue
to reserve, free of preemptive rights and other similar contractual rights of
stockholders, a sufficient number of its authorized but unissued shares of its
Common Stock, to effect the issuance of the Shares.

             (c)     The closing under this Agreement shall take place at the offices of
the Jenkens & Gilchrist Parker Chapin LLP, The Chrysler Building, 405 Lexington
Avenue, New York, New York 10174 at 10:00 a.m. (eastern time) upon the
satisfaction of each of the conditions set forth in Section 5 hereof (the
“Closing Date”).

 

 

     2.     Representations, Warranties and Covenants of the Purchaser. The
Purchaser represents and warrants to the Company, and covenants for the benefit
of the Company, as follows:

             (a)     Each of this Agreement and the Registration Rights Agreement attached
hereto as Exhibit A (the “Registration Rights Agreement”) has been duly
authorized, validly executed and delivered by the Purchaser and is a valid and
binding agreement and obligation of the Purchaser enforceable against the
Purchaser in accordance with its terms, subject to limitations on enforcement
by general principles of equity and by bankruptcy or other laws affecting the
enforcement of creditors’ rights generally, and the Purchaser has full power
and authority to execute and deliver this Agreement and the other agreements
and documents contemplated hereby and to perform its obligations hereunder and
thereunder.

             (b)     The Purchaser has received and carefully reviewed copies of the Public
Documents (as hereinafter defined). The Purchaser understands that no Federal,
state, local or foreign governmental body or regulatory authority has made any
finding or determination relating to the fairness of an investment in any of
the Shares and that no Federal, state, local or foreign governmental body or
regulatory authority has recommended or endorsed, or will recommend or endorse,
any investment in any of the Shares. The Purchaser, in making the decision to
purchase the Shares, has relied upon independent investigation made by it and
has not relied on any information or representations made by third parties or
by the Company or its officers, directors, employees, agents, accountants or
attorneys. The Purchaser has been furnished with all materials relating to the
business, finances and operations of the Company and materials relating to the
offer and sale of the Shares which have been requested by the Purchaser. The
Purchaser has been afforded the opportunity to ask questions of the Company.

             (c)     The Purchaser understands that the Shares are being offered and sold
to it in reliance on specific provisions of Federal and state securities laws
and that the Company is relying upon the truth and accuracy of the
representations, warranties, agreements, acknowledgments and understandings of
the Purchaser set forth herein for purposes of qualifying for exemptions from
registration under the Securities Act, and applicable state securities laws.

             (d)     The Purchaser is, and at all times relevant to the offer to sell the
Shares was an “accredited investor” as defined under Rule 501 of Regulation D
promulgated under the Securities Act.

             (e)     The Purchaser is and will be acquiring the Shares for such Purchaser’s
own account, and not with a view to any resale or distribution of the Shares in
whole or in part, in violation of the Securities Act or any applicable
securities laws.

             (f)     The offer and sale of the Shares is intended to be exempt from
registration under the Securities Act, by virtue of Section 4(2) and Regulation
D promulgated under the Securities Act. The Purchaser understands that the
Shares purchased hereunder have not been, and may never be, registered under
the Securities Act and that none of the Shares can be sold or transferred
unless they are first registered under the Securities Act and such state and
other securities laws as may be applicable or in the opinion of counsel for the
Company an exemption

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from registration under the Securities Act is available (and then the
Shares may be sold or transferred only in compliance with such exemption and
all applicable state and other securities laws). The Purchaser will not sell
any of the Shares in violation of this Section 2(f).

             (g)     The Purchaser (i) has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of an
investment in the Company; and (ii) recognizes that such Purchaser’s investment
in the Company involves a high degree of risk.

             (h)     The Purchaser is capable of evaluating the risks and merits of an
investment in the Shares by virtue of its experience as an investor and its
knowledge, experience, and sophistication in financial and business matters and
such Purchaser is capable of bearing the entire loss of its investment in the
Shares.

             (i)     The Purchaser is neither a registered broker-dealer nor an affiliate
of a registered broker-dealer.

             (j)     The Purchaser has no agreement or arrangement with the Company or with
any third party for the sale or disposition of the Common Stock to be purchased
pursuant to this Agreement.

             (k)     The Purchaser covenants with the Company as follows: the Purchaser’s
trading and distribution activities with respect to the Shares will be in
compliance with all applicable state and federal securities laws, rules and
regulations (including, without limitation, regulation M promulgated under the
Securities Act) and the rules and regulations of the Nasdaq National Market.
Neither the Purchaser nor any of its affiliates (as that term is defined in
Rule 405 promulgated under the Securities Act) has taken, nor will any of them
take, directly or indirectly, any action designed to cause or that would result
in, or which constitutes or that might reasonably be expected to constitute,
the stabilization or manipulation of the price of the Common Stock to
facilitate the purchase, sale or resale of the Common Stock or the Shares.

     3.     Representations, Warranties and Covenants of the Company. The Company
represents and warrants to the Purchaser, and covenants for the benefit of the
Purchaser, as follows:

             (a)     The Company has been duly incorporated and is validly existing and in
good standing under the laws of the state of Delaware, with full corporate
power and authority to own, lease and operate its properties and to conduct its
business as currently conducted, and is duly registered and qualified to
conduct its business and is in good standing in each jurisdiction or place
where the nature of its properties or the conduct of its business requires such
registration or qualification, except where the failure to register or qualify
would not have a Material Adverse Effect. For purposes of this Agreement,
“Material Adverse Effect” shall mean any effect on the business, prospects,
operations, properties or financial condition of the Company that is material
and adverse to the Company and its subsidiaries, taken as a whole and/or any
condition, circumstance, or situation that would prohibit the Company from
entering into and performing any of its obligations under this Agreement in any
material respect.

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             (b)     The Company has furnished the Purchaser with copies of the Company’s
most recent Annual Report on Form 10-K for fiscal year ended June 30, 2001 (the
“Form 10-K”) filed with the Securities and Exchange Commission (the
“Commission”) and its Form 10-Q for the quarterly period ended September 30,
2001 (the “Form 10-Q”; collectively with the Form 10-K, the “Public
Documents”). The Public Documents at the time of their filing did not include
any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements contained therein, in light of the
circumstances under which they were made, not misleading. As used herein,
“Commission Documents” means all reports, schedules, forms, statements and
other documents filed by the Company with the Commission pursuant to the
reporting requirements of the Exchange Act, including material filed pursuant
to Section 13(a) or 15(d) of the Exchange Act.

             (c)     The Shares have been duly authorized by all necessary corporate action
and, when paid for by the Purchaser and issued in accordance with the terms
hereof, the Shares shall be validly issued, will be fully paid and
non-assessable.

             (d)     Each of this Agreement and the Registration Rights Agreement attached
hereto as Exhibit A (the “Registration Rights Agreement”) has been duly
authorized, validly executed and delivered on behalf of the Company and is a
valid and binding agreement and obligation of the Company enforceable against
the Company in accordance with its terms, subject to limitations on enforcement
by general principles of equity and by bankruptcy or other laws affecting the
enforcement of creditors’ rights generally, and the and the Company has full
power and authority to execute and deliver this Agreement and the other
agreements and documents contemplated hereby and to perform its obligations
hereunder and thereunder.

             (e)     The execution and delivery of this Agreement and the Registration
Rights Agreement, the issuance of any of the Shares and the consummation of the
transactions contemplated by this Agreement and the Registration Rights
Agreement by the Company, will not (i) conflict with or result in a breach of
or a default under any of the terms or provisions of, (A) the Company’s
certificate of incorporation or by-laws, or (B) of any material provision of
any indenture, mortgage, deed of trust or other material agreement or
instrument to which the Company is a party or by which it or any of its
material properties or assets is bound, (ii) result in a violation of any
material provision of any law, statute, rule, regulation, or any existing
applicable decree, judgment or order by any court, Federal or state regulatory
body, administrative agency, or other governmental body having jurisdiction
over the Company, or any of its material properties or assets or (iii) result
in the creation or imposition of any material lien, charge or encumbrance upon
any material property or assets of the Company or any of its subsidiaries
pursuant to the terms of any agreement or instrument to which any of them is a
party or by which any of them may be bound or to which any of their property or
any of them is subject except in the case of clauses (i)(B) or (iii) for any
such conflicts, breaches, or defaults or any liens, charges, or encumbrances
which would not have a Material Adverse Effect.

             (f)     The sale and issuance of the Shares in accordance with the terms and
on the basis of the representations and warranties set forth in this Agreement
will be exempt from the registration requirements of the Securities Act.

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             (g)     No consent, approval or authorization of or designation, declaration
or filing with any governmental authority on the part of the Company is
required in connection with the valid execution and delivery of this Agreement
or the offer, sale or issuance of the Shares or the consummation of any other
transaction contemplated by this Agreement (other than any filings which may be
required to be made by the Company with the Commission, or Nasdaq or pursuant
to any state or “blue sky” securities laws subsequent to the Closing, and, any
registration statement which may be filed pursuant to the Registration Rights
Agreement).

             (h)     There is no action, suit, claim or proceeding before or by any court
or governmental agency or body, domestic or foreign, now pending against or
affecting the Company, or any of its properties, which questions the validity
of the Agreement, the Registration Rights Agreement or the transactions
contemplated hereby or thereby or any action taken or to be taken pursuant
hereto or thereto. Except as described on Schedule 3(h) attached hereto, there
is no action, suit, claim or proceeding before or by any court or governmental
agency or body, domestic or foreign, now pending against or affecting the
Company, or any of its properties, which, if adversely determined, is
reasonably likely to result in a Material Adverse Effect.

             (i)     Subsequent to the dates as of which information is given in the Public
Documents, except as contemplated herein, the Company has not incurred any
material liabilities or material obligations, direct or contingent, or entered
into any material transactions not in the ordinary course of business.

             (j)     The Company has sufficient title and ownership of or license rights to
all trademarks, service marks, trade names, copyrights, patents, trade secrets
and other proprietary rights (“Intellectual Property”) necessary for its
business as now conducted and as proposed to be conducted as described in the
Public Documents or the Commission Documents except for any of the foregoing,
the absence of which would not reasonably be likely to result in a Material
Adverse Effect and, to its knowledge without any conflict with or infringement
of the rights of others. Except as set forth in the Public Documents, the
Commission Documents or Schedule 3(j) attached hereto, there are no material
outstanding options, licenses or agreements of any kind relating to the
Intellectual Property, nor is the Company bound by or party to any material
options, licenses or agreements of any kind with respect to the Intellectual
Property of any other person or entity.

             (k)     The Company has complied and will comply with all applicable federal
and state securities laws in connection with the offer, issuance and sale of
the Shares hereunder. Neither the Company nor anyone acting on its behalf,
directly or indirectly, has or will sell, offer to sell or solicit offers to
buy any of the Shares, or similar securities to, or solicit offers with respect
thereto from, or enter into any preliminary conversations or negotiations
relating thereto with, any person, or has taken or will take any action so as
to require that the issuance and sale of any of the Shares be registered under
the registration provisions of the Securities Act or any other applicable
federal and state securities laws. Neither the Company nor any of its
affiliates, nor any person acting on its or their behalf, has engaged in any
form of general solicitation or

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general advertising (within the meaning of Regulation D under the
Securities Act) in connection with any of the Shares.

             (l)     Neither this Agreement or the Schedules hereto nor the Registration
Rights Agreement contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements made herein or
therein, in the light of the circumstances under which they were made herein or
therein, not misleading.

             (m)     The authorized capital stock of the Company and the shares thereof
issued and outstanding as of November 12, 2001 are set forth on Schedule 3(m)
attached hereto. All of the outstanding shares of the Company’s Common Stock
have been duly and validly authorized, and are fully paid and non-assessable.
Except as set forth in this Agreement, the Public Documents the Commission
Documents or on Schedule 3(m) attached hereto, as of November 12, 2001, no
shares of Common Stock are entitled to preemptive rights or registration rights
and there are no outstanding options, warrants, scrip, rights to subscribe to,
call or commitments of any character whatsoever relating to, or securities or
rights convertible into, any shares of capital stock of the Company.
Furthermore, except as set forth in this Agreement, in the Public Documents,
the Commission Documents or on Schedule 3(m) attached hereto as of the date
hereof, there are no contracts, commitments, understandings, or arrangements by
which the Company is or may become bound to issue additional shares of the
capital stock of the Company or options, securities or rights convertible into
shares of capital stock of the Company. Except as disclosed in the Commission
Documents and except for customary transfer restrictions contained in
agreements entered into by the Company in order to sell restricted securities,
as of the date hereof, the Company is not a party to any agreement granting
registration rights to any person with respect to any of its equity or debt
securities. The Company is not a party to, and it has no knowledge of, any
agreement restricting the voting or transfer of any shares of the capital stock
of the Company. The offer and sale of all capital stock, convertible
securities, rights, warrants, or options of the Company issued prior to the
Closing complied with all applicable federal and state securities laws, and no
stockholder has a right of rescission or damages with respect thereto which is
reasonably likely to have a Material Adverse Effect. The Company has furnished
or made available to the Purchaser true and correct copies of the Company’s
Certificate of Incorporation as in effect on the date hereof (the
“Certificate”), and the Company’s Bylaws as in effect on the date hereof (the
“Bylaws”).

             (n)     Prior to the effectiveness of the Registration Statement (as defined
in the Registration Rights Agreement), the Company will use its best efforts to
list the Shares for trading on the Nasdaq National Market or any relevant
market or system, if applicable, and will comply in all material respects with
the Company’s reporting, filing and other obligations under the bylaws or rules
of the NASDAQ National Market or any relevant market or system.

             (o)     Neither the Company nor the Purchaser may issue a press release or
otherwise make a public statement or announcement with respect to the
transaction contemplated hereby prior to the Closing Date without the consent
of the other party hereto, which consent shall not be unreasonably withheld,
delayed or conditioned. When the Company is first required by law or
regulations to issue a press release or otherwise make a public statement or
announcement with respect to this Agreement after the Closing Date, the Company
shall

-6-

 

reasonably consult with the Purchaser on the form and substance of such
press release or other disclosure.

             (p)     The Company may not enter into an agreement with a third party
between the date hereof and before the effectiveness of the registration
statement covering the Shares to be filed pursuant to the Registration Rights
Agreement related to the issuance of its Common Stock or securities convertible
into, exercisable for, or exchangeable for Common Stock for the purpose of
raising capital, except for the issuance of Common Stock of the Company to an
entity which, at the time of such transaction, is or was a strategic
collaborator of, or strategic partner of the Company.

     4.     Conditions Precedent to the Obligation of the Company to Sell the
Shares: The obligation hereunder of the Company to issue and sell the Shares
to the Purchaser is subject to the satisfaction or waiver, at or before the
Closing, of each of the conditions set forth below. These conditions are for
the Company’s sole benefit and may be waived by the Company at any time in its
sole discretion.

             (a)     The Purchaser shall have executed and delivered this Agreement and the
Registration Rights Agreement.

             (b)     The Purchaser shall have performed, satisfied and complied in all
material respects with all covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by such Purchaser at
or prior to the Closing Date.

             (c)     The representations and warranties of the Purchaser shall be true and
correct in all material respects as of the date when made and as of the Closing
Date as though made at that time, except for representations and warranties
that are expressly made as of a particular date, which shall be true and
correct in all material respects as of such date.

             (d)     At the Closing Date, upon receipt of the certificates evidencing the
Shares, the Purchaser shall have delivered to the Company immediately available
funds as payment in full of the Purchase Price for the Shares.

             (e)     No action, suit, claim or proceeding before or by any court or
governmental agency or body, domestic or foreign, is now pending against or
affecting the Company, or any of its properties, which questions the validity
of the Agreement, the Registration Rights Agreement or the transactions
contemplated thereby or any action taken or to be taken pursuant thereto.

     5.     Conditions Precedent to the Obligation of the Purchaser to purchase the
Shares: The obligation hereunder of the Purchaser to acquire and pay for the
Shares is subject to the satisfaction or waiver, at or before the Closing, of
each of the conditions set forth below. These conditions are for the
Purchaser’s sole benefit and may be waived by the Purchaser at any time in its
sole discretion.

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             (a)     The Company shall have executed and delivered this Agreement and the
Registration Rights Agreement.

             (b)     The Company shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by this
Agreement to be performed, satisfied or complied with by the Company at or
prior to the Closing Date.

             (c)     Each of the representations and warranties of the Company hereunder
shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations
and warranties that speak as of a particular date), which shall be true and
correct in all material respects as of such date.

             (d)     No statute, regulation, executive order, decree, ruling or injunction
shall have been enacted, entered, promulgated or endorsed by any court or
governmental authority of competent jurisdiction and shall be in effect which
prohibits the consummation of the transactions contemplated by this Agreement.

             (e)     No action, suit, claim or proceeding before or by any court or
governmental agency or body, domestic or foreign, is now pending against or
affecting the Company, or any of its properties, which questions the validity
of the Agreement, the Registration Rights Agreement or the transactions
contemplated thereby or any action taken or to be taken pursuant thereto. No
action, suit, claim or proceeding before or by any court or governmental agency
or body, domestic or foreign, is now pending against or affecting the Company,
or any of its properties, which, if adversely determined, is reasonably likely
to result in a Material Adverse Effect.

             (f)     No Material Adverse Effect shall have occurred at or before the
Closing Date.

             (g)     Since the date hereof, trading in the Common Stock shall not have been
suspended by the Commission or the NASDAQ National Market or any alternate
market (except for any suspension of trading of limited duration agreed to by
the Company, which suspension shall be terminated prior to the Closing Date).

             (h)     The Company shall have delivered certificates evidencing the Shares to
the Purchaser at or before the Closing Date.

             (i)     The Company shall have delivered to the Purchaser a secretary’s
certificate, dated as of the Closing Date, as to (i) the resolutions of the
board of directors of the Company authorizing the transactions contemplated by
this Agreement, (ii) the Certificate, (iii) the Bylaws, each as in effect at
the Closing, and (iv) the authority and incumbency of the officers of the
Company executing this Agreement and the Registration Rights Agreement.

             (j)     The Purchaser shall have received a legal opinion in
substantially the form annexed hereto as Exhibit B as of the Closing
Date.

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     6.     Legends. Unless otherwise provided below, each certificate
representing the Shares shall be stamped or otherwise imprinted with a legend
substantially in the following form (the “Legend”):

			
	 	“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS AND MAY
NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF UNLESS
REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE
STATE SECURITIES LAWS OR DIGENE CORPORATION (THE “COMPANY”)
SHALL HAVE RECEIVED AN OPINION, IN FORM, SCOPE AND SUBSTANCE
REASONABLY ACCEPTABLE TO THE COMPANY, OF COUNSEL WHO IS
REASONABLY ACCEPTABLE TO THE COMPANY THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE
PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS
IS NOT REQUIRED.”	 

     7.     Fees and Expenses. Each of the Company and the Purchaser shall pay its
respective fees and expenses related to the transactions contemplated by this
Agreement and the Registration Rights Agreement; except that the Company shall
pay all reasonable fees and expenses, including attorneys’ fees, incurred by
the Purchaser in connection with the preparation, negotiation, execution and
delivery of this Agreement and the Registration Rights Agreement and the review
of the Registration Statement and the Prospectus, including any amendments and
supplements thereto (as contemplated by the Registration Rights Agreement),
which fees and expenses shall not exceed $30,000. The Company shall pay all
stamp or other similar taxes and duties levied in connection with issuance of
the Shares pursuant hereto to the Purchaser.

     8.     Indemnification.

             (a)     The Company hereby agrees to indemnify and hold harmless the Purchaser
and its officers, directors, shareholders, employees, agents and attorneys
against any and all losses, claims, damages, liabilities and reasonable
expenses incurred by each such person in connection with defending or
investigating any such claims or liabilities, whether or not resulting in any
liability to such person, to which any such indemnified party may become
subject, insofar as such losses, claims, demands, liabilities and expenses
arise out of or are based upon any breach of any representation or warranty
made by the Company in this Agreement.

             (b)     The Purchaser hereby agrees to indemnify and hold harmless the Company
and its officers, directors, shareholders, employees, agents and attorneys
against any and all losses, claims, damages, liabilities and expenses incurred
by each such person in connection with defending or investigating any such
claims or liabilities, whether or not resulting in any liability to such
person, to which any such indemnified party may become subject under the
Securities Act, or under any other statute, at common law or otherwise, insofar
as such

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losses, claims, demands, liabilities and expenses arise out of or are
based upon (i) any untrue statement or alleged untrue statement of a material
fact made by the Purchaser, (ii) any omission or alleged omission of a material
fact with respect to the Purchaser or (iii) any breach of any representation,
warranty or agreement made by the Purchaser in this Agreement.

             (c)     If any claim is asserted against a party for which the party is
entitled to indemnification under Section 8(a) or 8(b), the party (the
“Claimant”) will promptly notify the party required to pay the indemnification
(the “Indemnifying Party”) in writing of the assertion of the claim (but the
failure so to notify will not relieve the Indemnifying Party from any liability
the Indemnifying Party may have, except to the extent such failure materially
prejudices the Indemnifying Party). Unless otherwise agreed to by the Claimant
and the Indemnifying Party, the Indemnifying Party will assume and direct the
defense of such claim, including the employment of counsel, and all fees and
expenses incurred in connection with defending or settling the claim will be
borne solely by the Indemnifying Party. The Indemnifying Party will not
compromise any claim, other that any compromise involving only the payment of
monetary damages, without the prior written consent of the Claimant, which
consent will not be unreasonably withheld, delayed or conditioned.
Notwithstanding an election by the Indemnifying Party to assume the defense of
such claim, the Claimant will have the right to employ separate counsel and to
participate in the defense of such claim, and the Indemnifying Party will bear
the reasonable fees and expenses of such separate counsel, if the Indemnifying
Party has been advised by counsel that the use of the same counsel to represent
the Claimant and the Indemnifying Party would present such counsel with a
conflict of interest. The Claimant will cooperate in all reasonable respects
with the Indemnifying Party and such attorneys in the investigation, trial and
defense of the claim and any appeal arising therefrom. All reasonable and
documented costs and expenses incurred in connection with a Claimant’s
cooperation will be borne by the Indemnifying Party. In any event, the
Claimant will have the right at its own expense to participate in the defense
of such claim. The party controlling the defense of any such claim will
deliver or cause to be delivered to the other party, upon the request of the
other party, copies of all correspondence, pleadings, motions, briefs, appeals
or other written statements relating to or submitted in connection with the
defense of any such claim, and timely notices of, and the right to participate
in (as an observer), any hearing or other court proceeding relating to such
claim.

     9.     Governing Law; Consent to Jurisdiction. This Agreement shall be
governed by and interpreted in accordance with the laws of the State of New
York without giving effect to the rules governing the conflicts of laws. Each
of the parties consents to the exclusive jurisdiction of the Federal courts
whose districts encompass any part of the County of New York located in the
City of New York in connection with any dispute arising under this Agreement
and hereby waives, to the maximum extent permitted by law, any objection,
including any objection based on forum non conveniens, to the bringing of any
such proceeding in such jurisdictions. Each party waives its right to a trial
by jury. Each party to this Agreement irrevocably consents to the service of
process in any such proceeding by the mailing of copies thereof by registered
or certified mail, postage prepaid, to such party at its address set forth in
Section 10 or its agent. Nothing herein shall affect the right of either party
to serve process in any other manner permitted by law.

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     10.     Notices. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand delivery, express
overnight courier, registered first class mail, or telecopier, initially to the
address set forth below, and thereafter at such other address, notice of which
is given in accordance with the provisions of this Section.

	 	 	 
	(a)	 	
if to the Company:
	 
	 	 	
Digene Corporation
	 	 	
1201 Clopper Road
	 	 	
Gaithersburg, Maryland 20878
	 	 	
Tel. No.: (301) 944-7000
	 	 	
Fax No.: (301) 944-7017
	 	 	
Attn: President
	 
	 	 	
with a copy to:
	 
	 	 	
Ballard Spahr Andrews & Ingersoll, LLP
	 	 	
1735 Market Street, 51st Floor
	 	 	
Philadelphia, Pennsylvania 19103
	 	 	
Attn: Morris Cheston, Jr.
	 	 	
Tel. No.: (215) 864-8609
	 	 	
Fax No.: (215) 864-8999
	 
	(b)	 	
if to the Purchaser:
	 
	 	 	

	 	 	

	 	 	

	 	 	

	 	 	

	 	 	

	 	 	
Tel. No.:                                                        
	 	 	
Fax No.:                                                        
	 
	 	 	
with a copy to:
	 
	 	 	
Jenkens & Gilchrist Parker Chapin LLP
	 	 	
The Chrysler Building
	 	 	
405 Lexington Avenue
	 	 	
New York, New York 10174
	 	 	
Attention: Christopher S. Auguste
	 	 	
Tel. No.: (212) 704-6000
	 	 	
Fax No.: (212) 704-6288

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     All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; when receipt is
acknowledged, if telecopied; or when actually received or refused if sent by
other means.

     11.     Entire Agreement. This Agreement and the Registration Rights
Agreement constitute the entire understanding and agreement of the parties with
respect to the subject matter hereof and supersedes all prior and/or
contemporaneous oral or written proposals or agreements relating thereto all of
which are merged herein. This Agreement may not be amended or any provision
hereof waived in whole or in part, except by a written amendment signed by both
of the parties.

     12.     Counterparts. This Agreement may be executed by facsimile signature
and in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

[end of page]

-12-

 

     IN WITNESS WHEREOF, this Agreement was duly executed on the date first
written above.

	 	 	 
		Digene Corporation
	 
	 	By:
	 		

	 		Name:

        Title:
	 
	 	[Purchaser]
	 
	 	By:
	 		

	 		Name:

        Title:

-13-ex4-4

 

EXHIBIT 4.4

REGISTRATION RIGHTS AGREEMENT

             This Registration Rights Agreement is made and entered into as of January
28, 2002 (this “Agreement”), by and between Digene Corporation, a Delaware
corporation (the “Company”), and      (the “Purchaser”).

             This Agreement is being entered into pursuant to the Purchase Agreement,
dated as of the date hereof, by and between the Company and the Purchaser (the
“Purchase Agreement”).

             The Company and the Purchaser hereby agree as follows:

     1.     Definitions.

             Capitalized terms used and not otherwise defined herein shall have the
meanings given such terms in the Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings:

             “Advice” shall have the meaning set forth in Section 3(n).

      “Affiliate” means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or under common control
with such Person. For the purposes of this definition, “control,” when used
with respect to any Person, means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms of “affiliated,” “controlling” and “controlled” have
meanings correlative to the foregoing.

             “Blackout Period” shall have the meaning set forth in Section 3(r).

             “Board” shall have the meaning set forth in Section 3(r).

             “Business Day” means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the state of
New York generally are authorized or required by law or other government
actions to close.

             “Commission” means the Securities and Exchange Commission.

             “Common Stock” means the Company’s Common Stock, par value $0.01 per
share.

             “Effectiveness Date” means with respect to the Registration Statement the
earliest of (y) the 90th Business Day following the Closing Date, before which
the Company will use its reasonable best efforts to cause the Registration
Statement to become effective, and (z) the date which is within five (5)
Business Days after the date on which the Commission informs the

 

 

Company that the Commission (i) will not review the Registration Statement
or (ii) that the Company may request the acceleration of the effectiveness of
the Registration Statement.

             “Effectiveness Period” shall have the meaning set forth in Section 2.

             “Event” shall have the meaning set forth in Section 7(d).

             “Exchange Act” means the Securities Exchange Act of 1934, as amended.

             “Filing Date” means the date the Registration Statement is filed which
date, using the Company’s reasonable best efforts, shall be within twenty-one
(21) days following the Closing Date.

             “Holder” means the Purchaser and its permitted assignees.

             “Indemnified Party” shall have the meaning set forth in Section 5(c).

             “Indemnifying Party” shall have the meaning set forth in Section 5(c).

             “Liquidated Damages” shall have the meaning set forth in Section 7(d).

             “Losses” shall have the meaning set forth in Section 5(a).

             “Nasdaq” shall mean the Nasdaq National Market.

             “Person” means an individual or a corporation, partnership, trust,
incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or political subdivision
thereof) or other entity of any kind.

             “Proceeding” means an action, claim, suit, investigation or proceeding
(including, without limitation, an investigation or partial proceeding, such as
a deposition), whether commenced or threatened.

             “Prospectus” means the prospectus included in the Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated under the Securities Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Registrable Securities covered by the
Registration Statement, and all other amendments and supplements to the
Prospectus, including post-effective amendments, and all material incorporated
by reference in such Prospectus.

             “Registrable Securities” means (i) the shares of Common Stock issued
pursuant to the Purchase Agreement (the “Common Shares”) and upon any stock
split, stock dividend, recapitalization or similar event with respect to such
Common Shares; and (ii) any other securities issued in exchange of or
replacement of the Common Shares.

-2-

 

             “Registration Statement” means the registration statement and any
additional registration statements contemplated by Section 2, including (in
each case) the Prospectus and amendments to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference in such registration statement.

             “Rule 144” means Rule 144 promulgated by the Commission under the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

             “Rule 158” means Rule 158 promulgated by the Commission under the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

             “Rule 415” means Rule 415 promulgated by the Commission under the
Securities Act, as such Rule may be amended from time to time, or any similar
rule or regulation hereafter adopted by the Commission having substantially the
same effect as such Rule.

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

             “Special Counsel” means any special counsel to the Holder selected,
pursuant to Section 5.

     2.     Registration. On or prior to the Filing Date the Company shall prepare
and file with the Commission a “shelf” Registration Statement covering all
Registrable Securities for an offering to be made on a continuous basis
pursuant to Rule 415. The Registration Statement shall be on Form S-3 (except
if the Company is not then eligible to register for resale the Registrable
Securities on Form S-3, in which case such registration shall be on another
appropriate form in accordance herewith). The Company shall (i) not permit any
securities other than the Registrable Securities to be included in the
Registration Statement, (ii) use its reasonable best efforts to cause the
Registration Statement to be declared effective under the Securities Act
(including filing with the Commission a request for acceleration of
effectiveness in accordance with Rule 12dl-2 promulgated under the Exchange Act
within five (5) Business Days of the date that the Company is notified (orally
or in writing, whichever is earlier) by the Commission that a Registration
Statement will not be “reviewed,” or not be subject to further review) as soon
as possible after the filing thereof, but in any event prior to the
Effectiveness Date, and to keep such Registration Statement continuously
effective under the Securities Act until such date as is the earlier of (x) the
date when all Registrable Securities covered by such Registration Statement
have been sold or (y) the date on which the Registrable Securities may be sold
without any restriction pursuant to Rule 144(k) as determined by the counsel to
the Company pursuant to a written letter, addressed to the Company’s transfer
agent to such effect (the “Effectiveness Period”).

-3-

 

     3.     Registration Procedures.

             In connection with the Company’s registration obligations hereunder;

            (a)     The Company shall prepare and file with the Commission as soon as
possible and in any event on or prior to the Filing Date, a Registration
Statement on Form S-3 (or if the Company is not then eligible to register for
resale the Registrable Securities on Form S-3 such registration shall be on
another appropriate form in accordance herewith) in accordance with the method
or methods of distribution thereof as specified by the Holder (except if
otherwise directed by the Holder), and use its reasonable best efforts to cause
the Registration Statement to become effective and remain effective as provided
herein; provided, however, that not less than three (3) Business Days prior to
the filing of the Registration Statement or any related Prospectus or any
amendment or supplement thereto (including any document that would be
incorporated therein by reference), the Company shall (i) furnish to the Holder
and any Special Counsel, copies of all such documents proposed to be filed,
which documents (other than those incorporated by reference) will be subject to
the timely review of such Special Counsel, and (ii) at the request of the
Holder cause its officers and directors, counsel and independent certified
public accountants to respond to such inquiries as shall be necessary, in the
reasonable opinion of counsel to such Holder, to conduct a reasonable
investigation within the meaning of the Securities Act. The Company shall not
file the Registration Statement or any such Prospectus or any amendments or
supplements thereto to which the Holder or any Special Counsel shall reasonably
object in writing within two (2) Business Days of their receipt thereof;
provided, however, that Liquidated Damages (as hereinafter defined) shall be
suspended and shall cease to accrue for such period that the Company does not
file the Registration Statement or any Prospectus or amendments or supplements
as required hereunder as a result of a reasonable objection of the Holder or
any Special Counsel.

             (b)     The Company shall (i) prepare and file with the Commission such
amendments, including post-effective amendments, to the Registration Statement
as may be necessary to keep the Registration Statement continuously effective
as to the applicable Registrable Securities for the Effectiveness Period and
prepare and file with the Commission such additional Registration Statements in
order to register for resale under the Securities Act all of the Registrable
Securities; (ii) cause the related Prospectus to be amended or supplemented by
any required Prospectus supplement, and as so supplemented or amended to be
filed pursuant to Rule 424 (or any similar provisions then in force)
promulgated under the Securities Act; (iii) respond promptly to any comments
received from the Commission with respect to the Registration Statement or any
amendment thereto and promptly provide the Holder true and complete copies of
all correspondence from and to the Commission relating to the Registration
Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement during the
applicable period in accordance with the intended methods of disposition by the
Holder set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.

             (c)     The Company shall notify the Holder and any Special Counsel promptly
(and, in the case of (i)(A) below, not less than three (3) Business Days prior
to such filing) and (if requested by any such Person) confirm such notice in
writing no later than one (1) Business

-4-

 

Day following the day (i)(A) when a Prospectus or any Prospectus
supplement or post-effective amendment to the Registration Statement is
proposed to be filed; (B) when the Commission notifies the Company whether
there will be a “review” of such Registration Statement and whenever the
Commission comments in writing on such Registration Statement and (C) with
respect to the Registration Statement or any post-effective amendment, when the
same has become effective; (ii) of any request by the Commission or any other
Federal or state governmental authority for amendments or supplements to the
Registration Statement or Prospectus or for additional information; (iii) of
the issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement covering any or all of the Registrable Securities
or the initiation of any Proceedings for that purpose; (iv) of the receipt by
the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of
any Proceeding for such purpose; and (v) of the occurrence of any event that
makes any statement made in the Registration Statement or Prospectus or any
document incorporated or deemed to be incorporated therein by reference untrue
in any material respect or that requires any revisions to the Registration
Statement, Prospectus or other documents so that, in the case of the
Registration Statement or the Prospectus, as the case may be, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

             (d)     The Company shall promptly furnish to Special Counsel, without
charge,(i) any correspondence from the Commission or the Commission’s staff to
the Company or its representatives relating to any Registration Statement and
(ii) promptly after the same is prepared and filed with the Commission, a copy
of any written response to the correspondence received from the Commission.

             (e)     The Company shall use its reasonable best efforts to avoid the
issuance of, or, if issued, obtain the withdrawal of, (i) any order suspending
the effectiveness of the Registration Statement or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

             (f)     The Company shall if requested by the Holder of a majority in interest
of the Registrable Securities, (i) promptly incorporate in a Prospectus
supplement or post-effective amendment to the Registration Statement such
information as the Company reasonably agrees should be included therein and
(ii) make all required filings of such Prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received
notification of the matters to be incorporated in such Prospectus supplement or
post-effective amendment.

             (g)     The Company shall furnish to the Holder and any Special Counsel,
without charge, at least one conformed copy of each Registration Statement and
each amendment thereto, including financial statements and schedules, all
documents incorporated or deemed to be incorporated therein by reference, and
all exhibits to the extent requested by such Person (including those previously
furnished or incorporated by reference) promptly after the filing of such
documents with the Commission.

-5-

 

             (h)     The Company shall promptly deliver to the Holder and any Special
Counsel, without charge, as many copies of the Registration Statement,
Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto as such Persons may reasonably request; and the
Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by the Holder in connection with the offering and sale of
the Registrable Securities covered by such Prospectus and any amendment or
supplement thereto.

             (i)     The Company shall prior to any public offering of Registrable
Securities, use its reasonable best efforts to register or qualify or cooperate
with the Holder and any Special Counsel in connection with the registration or
qualification (or exemption from such registration or qualification) of such
Registrable Securities for offer and sale under the securities or Blue Sky laws
of such jurisdictions within the United States as any Holder reasonably
requests in writing, to keep each such registration or qualification (or
exemption therefrom) effective during the Effectiveness Period and to do any
and all other acts or things necessary or advisable to enable the disposition
in such jurisdictions of the Registrable Securities covered by a Registration
Statement; provided, however, that the Company shall not be required to qualify
generally to do business in any jurisdiction where it is not then so qualified
or to take any action that would subject it to general service of process in
any such jurisdiction where it is not then so subject or subject the Company to
any material tax in any such jurisdiction where it is not then so subject.

             (j)     The Company shall cooperate with the Holder to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold pursuant to a Registration Statement and to enable such Registrable
Securities to be in such denominations and registered in such names as the
Holder may request at least two (2) Business Days prior to any sale of
Registrable Securities.

             (k)     The Company shall upon the occurrence of any event contemplated by
Section 3(c)(vi), as promptly as possible, prepare a supplement or amendment,
including a post-effective amendment, to the Registration Statement or a
supplement to the related Prospectus or any document incorporated or deemed to
be incorporated therein by reference, and file any other required document so
that, as thereafter delivered, neither the Registration Statement nor such
Prospectus will contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

             (l)     The Company shall use its reasonable best efforts to cause all
Registrable Securities relating to such Registration Statement to be listed on
the Nasdaq and any other securities exchange, quotation system, market or
over-the-counter bulletin board, if any, on which similar securities issued by
the Company are then listed as and when required pursuant to the Purchase
Agreement.

             (m)     The Company shall comply in all material respects with all applicable
rules and regulations of the Commission and make generally available to its
security holders earning statements satisfying the provisions of Section 11(a)
of the Securities Act and Rule 158 not later than forty-five (45) days after
the end of any twelve (12)-month period (or ninety (90) days after the end of
any twelve (12)-month period if such period is a fiscal year)

-6-

 

commencing on the first day of the first fiscal quarter of the Company
after the effective date of the Registration Statement, which statement shall
conform to the requirements of Rule 158.

             (n)     The Company shall require the Holder to furnish to the Company
information regarding such Holder and the distribution of such Registrable
Securities as is required by law to be disclosed in the Registration Statement,
and the Company may exclude from such registration the Registrable Securities
of the Holder if it fails to furnish such information within a reasonable time
prior to the filing of each Registration Statement, supplemented Prospectus
and/or amended Registration Statement.

             (o)     If the Registration Statement refers to the Holder by name or
otherwise as the holder of any securities of the Company, then the Holder shall
have the right to require (if such reference to the Holder by name or otherwise
is not required by the Securities Act or any similar federal statute then in
force) the deletion of the reference to the Holder in any amendment or
supplement to the Registration Statement filed or prepared subsequent to the
time that such reference ceases to be required. The Holder covenants and
agrees that (i) it shall not sell any Registrable Securities under the
Registration Statement until it has received copies of the Prospectus as then
amended or supplemented as contemplated in Section 3(h) and notice from the
Company that such Registration Statement and any post-effective amendments
thereto have become effective as contemplated by Section 3(c) and (ii) it and
its officers, directors or Affiliates, if any, will comply with the prospectus
delivery requirements of the Securities Act as applicable to them in connection
with sales of Registrable Securities pursuant to the Registration Statement.

             (p)     The Holder agrees by its acquisition of such Registrable Securities
that, upon receipt of a notice from the Company of the occurrence of any event
of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or
3(r), the Holder will forthwith discontinue disposition of such Registrable
Securities under the Registration Statement until such Holder’s receipt of the
copies of the supplemented Prospectus and/or amended Registration Statement
contemplated by Section 3(k), or until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus may be resumed, and,
in either case, has received copies of any additional or supplemental filings
that are incorporated or deemed to be incorporated by reference in such
Prospectus or Registration Statement.

             (q)     If (i) there is material non-public information regarding the Company
which the Company’s Board of Directors (the “Board”) reasonably determines not
to be in the Company’s best interest to disclose and which the Company is not
otherwise required to disclose, or (ii) there is a significant business
opportunity (including, but not limited to, the acquisition or disposition of
assets (other than in the ordinary course of business) or any merger,
consolidation, tender offer or other similar transaction) available to the
Company which the Board reasonably determines not to be in the Company’s best
interest to disclose and which the Company would be required to disclose under
the Registration Statement, then, for the period of 180 days after the date the
Registration Statement has been declared effective by the Commission (the
“Period”), the Company may suspend effectiveness of a registration statement
and suspend the sale of Registrable Securities under a Registration Statement
for a period not to exceed twenty-five (25) consecutive days, provided that the
Company may not suspend its obligation during the Period for more than fifty
(50) days in the aggregate (each, a “Blackout Period”); provided, however,

-7-

 

that no such suspension shall be permitted for consecutive twenty-five
(25) day periods, arising out of the same set of facts, circumstances or
transactions.

             (r)     Within two (2) Business Days after the Registration Statement which
includes the Registrable Securities is ordered effective by the Commission, the
Company shall deliver, and shall cause legal counsel for the Company to
deliver, to the transfer agent for such Registrable Securities (with copies to
the Holder) confirmation that the Registration Statement has been declared
effective by the Commission in the form attached hereto as Exhibit A.

     4.     Registration Expenses.

             All reasonable fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company
whether or not the Registration Statement is filed or becomes effective and
whether or not any Registrable Securities are sold pursuant to the Registration
Statement. The fees and expenses referred to in the foregoing sentence shall
include, without limitation; the following: (i) all registration and filing
fees (including, without limitation, fees and expenses (A) with respect to
filings required to be made with the NASDAQ and each other securities exchange
or market on which Registrable Securities are required hereunder to be listed,
(B) with respect to filings required to be made with the Commission, and (C) in
compliance with state securities or Blue Sky laws), (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities and of printing Prospectuses if the printing of
Prospectuses is requested by the Holder, (iii) messenger, telephone and
delivery expenses, (iv) fees and disbursements of counsel for the Company and
(v) fees and expenses of all other Persons retained by the Company in
connection with the consummation of the transactions contemplated by this
Agreement, including, without limitation, the Company’s independent public
accountants (including the expenses of any comfort letters or costs associated
with the delivery by independent public accountants of a comfort letter or
comfort letters). In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit, the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder.

     5.     Indemnification.

             (a)     Indemnification by the Company. The Company shall, notwithstanding
any termination of this Agreement, indemnify and hold harmless the Holder, its
permitted assignees, officers, directors, agents, brokers (including brokers
who offer and sell Registrable Securities as principal as a result of a pledge
or any failure to perform under a margin call of Common Stock), investment
advisors and employees, each Person who controls any such Holder or permitted
assignee (within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act) and the officers, directors, agents and employees of each
such controlling Person, and the respective successors, permitted assigns,
estate and personal representatives of each of the foregoing, to the fullest
extent permitted by applicable law, from and against any and all claims,
losses, damages, liabilities, penalties, judgments, costs (including, without
limitation, costs of investigation) and expenses (including, without
limitation, reasonable attorneys’ fees and

-8-

 

 expenses) (collectively, “Losses”), arising out of or relating to any
untrue or alleged untrue statement of a material fact contained in the
Registration Statement, the final Prospectus, as supplemented or amended, if
applicable, or arising out of or relating to any omission or alleged omission
of a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or form of Prospectus or
supplement thereto, in the light of the circumstances under which they were
made) not misleading, except to the extent, but only to the extent, that such
untrue statements or omissions are based solely upon information regarding the
Holder furnished in writing to the Company by the Holder expressly for use
therein, which information was reviewed and expressly approved in writing by
the Holder and Special Counsel expressly for use in the Registration Statement,
such Prospectus or such form of Prospectus or in any amendment or supplement
thereto or as a result of the failure of the Holder to deliver a Prospectus, as
amended or supplemented, to a purchaser in connection with an offer or sale of
Registrable Securities. The Company shall notify the Holder promptly of the
institution, threat or assertion of any Proceeding of which the Company is
aware in connection with the transactions contemplated by this Agreement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of an Indemnified Party (as defined in Section 5(c)
hereof) and shall survive the transfer of the Registrable Securities by the
Holder.

             (b)     Indemnification by Holder. The Holder and its permitted assignees
shall, severally and not jointly, indemnify and hold harmless the Company, the
directors, officers, agents and employees, each Person who controls the Company
(within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act), and the directors, officers, agents or employees of such
controlling Persons, and the respective successors, permitted assigns, estate
and personal representatives of each of the foregoing, to the fullest extent
permitted by applicable law, from and against all Losses, as incurred, arising
solely out of or based solely upon any untrue statement of a material fact
contained in the Registration Statement, any Prospectus, or any form of
Prospectus, or arising solely out of or based solely upon any omission of a
material fact required to be stated therein or necessary to make the statements
therein (in the case of any Prospectus or form of Prospectus or supplement
thereto, in the light of the circumstances under which they were made) not
misleading, to the extent, but only to the extent, that such untrue statement
or omission is contained in or omitted from any information so furnished in
writing by the Holder or the Special Counsel to the Company specifically for
inclusion in the Registration Statement or such Prospectus and that such
information was reasonably relied upon by the Company for use in the
Registration Statement, such Prospectus or such form of prospectus or to the
extent that such information relates to the Holder or the Holder’s proposed
method of distribution of Registrable Securities. Notwithstanding anything to
the contrary contained herein, the Holder shall be liable under this Section
5(b) for only that amount as does not exceed the net proceeds to the Holder as
a result of the sale of Registrable Securities pursuant to such Registration
Statement.

             (c)     Conduct of Indemnification Proceedings. If any Proceeding shall be
brought or asserted against any Person entitled to indemnity hereunder (an
“Indemnified Party”), such Indemnified Party promptly shall notify the Person
from whom indemnity is sought (the “Indemnifying Party) in writing, and the
Indemnifying Party shall assume the defense thereof, including the employment
of counsel reasonably satisfactory to the Indemnified Party and the payment of
all fees and expenses incurred in connection with defense thereof; provided,
that the failure of any Indemnified Party to give such notice shall not relieve
the Indemnifying Party of

-9-

 

its obligations or liabilities pursuant to this Agreement, except (and
only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review)
that such failure shall have materially and adversely prejudiced the
Indemnifying Party.

             An Indemnified Party shall have the right to employ separate counsel in
any such Proceeding and to participate in the defense thereof, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Party or
Parties unless: (1) the Indemnifying Party has agreed in writing to pay such
fees and expenses; or (2) the Indemnifying Party shall have failed promptly to
assume the defense of such Proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such Proceeding; or (3) the named
parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party
shall have been advised by counsel that a conflict of interest is likely to
exist if the same counsel were to represent such Indemnified Party and the
Indemnifying Party or that there may be legal defenses available to such
Indemnified Party that are different from or in addition to those available to
the Indemnifying Party (in which case the Indemnifying Party shall not have the
right to assume the defense of such action on behalf of such Indemnified Party,
the Indemnifying Party shall be entitled to employ separate counsel, reasonably
acceptable to the Indemnifying Party, and the Indemnifying Party shall be
liable, in such action or substantially similar but related actions, for the
fees and expenses of one separate firm of attorneys (in addition to any local
counsel) for the Indemnified Party). The Indemnifying Party shall not be
liable for any settlement of any such Proceeding effected without its written
consent, which consent shall not be unreasonably withheld. No Indemnifying
Party shall, without the prior written consent of the Indemnified Party, effect
any settlement of any pending Proceeding in respect of which any Indemnified
Party is a party, unless such settlement includes an unconditional release of
such Indemnified Party from all liability on claims that are the subject matter
of such Proceeding.

             All reasonable fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within twenty (20) Business Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder or pursuant to applicable law).

             (d)     Contribution. If a claim for indemnification under Section 5(a) or
5(b) is unavailable to an Indemnified Party because of a failure or refusal of
a governmental authority to enforce such indemnification in accordance with its
terms (by reason of public policy or otherwise), then each Indemnifying Party,
in lieu of indemnifying such Indemnified Party, shall contribute to the amount
paid or payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying
Party and Indemnified Party in connection with the actions, statements or
omissions that resulted in such Losses as well as any other relevant equitable
considerations. The relative fault of such Indemnifying Party and Indemnified
Party shall be determined by reference to, among other

-10-

 

things, whether any action in question, including any untrue or alleged
untrue statement of a material fact or omission or alleged omission of a
material fact, has been taken or made by, or relates to information supplied
by, such Indemnifying, Party or Indemnified Party, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent
such action, statement or omission. The amount paid or payable by a party as a
result of any Losses shall be deemed to include, subject to the limitations set
forth in Section 5(c), any reasonable attorneys’ or other reasonable fees or
expenses incurred by such party in connection with any Proceeding to the extent
such party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms. Notwithstanding anything to the contrary contained
herein, the Holder shall be liable or required to contribute under this Section
5(c) for only that amount as does not exceed the net proceeds to the Holder as
a result of the sale of Registrable Securities pursuant to such Registration
Statement.

             The parties hereto agree that it would not be just and equitable if
contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding
paragraph. No Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

             The indemnity and contribution agreements contained in this Section are in
addition to any liability that the Indemnifying Parties may have to the
Indemnified Parties.

     6.     Rule 144.

             As long as the Holder owns Registrable Securities, the Company covenants
to timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Company after
the date hereof pursuant to Section 13(a) or 15(d) of the Exchange Act and to
promptly furnish the Holder with true and complete copies of all such filings.
As long as the Holder owns Registrable Securities, if the Company is not
required to file reports pursuant to Section 13(a) or 15(d) of the Exchange
Act, it will prepare and furnish to the Holder and make publicly available in
accordance with Rule 144(c) promulgated under the Securities Act annual and
quarterly financial statements, together with a discussion and analysis of such
financial statements in form and substance substantially similar to those that
would otherwise be required to be included in reports required by Section 13(a)
or 15(d) of the Exchange Act, as well as any other information required
thereby, in the time period that such filings would have been required to have
been made under the Exchange Act. The Company further covenants that it will
take such further action as the Holder may reasonably request, all to the
extent required from time to time to enable the Holder to sell Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144 promulgated under the Securities Act,
including providing any legal opinions of counsel to the Company referred to in
the Purchase Agreement. Upon the request of the Holder, the Company shall
deliver to the Holder a written certification of a duly authorized officer as
to whether it has complied with such requirements. This Agreement shall
terminate on the date on which the Registrable Securities may be sold without
restriction pursuant to Rule 144(k) of the Securities Act.

-11-

 

     7.     Miscellaneous.

             (a)     Remedies. In the event of a breach by the Company or by a Holder, of
any of their obligations under this Agreement, the Holder or the Company, as
the case may be, in addition to being entitled to exercise all rights granted
by law and under this Agreement, including recovery of damages, will be
entitled to specific performance of its rights under this Agreement. The
Company and the Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of
any action for specific performance in respect of such breach, it shall waive
the defense that a remedy at law would be adequate.

             (b)     No Inconsistent Agreements. Neither the Company nor any of its
subsidiaries has, as of the date hereof entered into and currently in effect,
nor shall the Company or any of its Affiliates, on or after the date of this
Agreement, enter into any agreement with respect to its securities that is
inconsistent with the rights granted to the Holder in this Agreement or
otherwise conflicts with the provisions hereof. Without limiting the
generality of the foregoing, without the written consent of the Holder, the
Company shall not grant to any Person the right to request the Company to
register any securities of the Company under the Securities Act if the rights
so granted are inconsistent with the rights granted to Holder set forth herein,
or otherwise prevent the Company with complying with all of its obligations
hereunder.

             (c)     No Piggyback on Registrations. Neither the Company nor any of its
security holders (other than the Holder in such capacity pursuant hereto) may
include securities of the Company in the Registration Statement.

             (d)     Failure to File Registration Statement and Other Events. The Company
and the Holder agree that the Holder will suffer damages if the Registration
Statement is not filed on or prior to the Filing Date and not declared
effective by the Commission on or prior to the Effectiveness Date and
maintained in the manner contemplated herein during the Effectiveness Period or
if certain other events occur. The Company and the Holder further agree that
it would not be feasible to ascertain the extent of such damages with
precision. Accordingly, if (i) the Registration Statement is not filed on or
prior to the Filing Date, or is not declared effective by the Commission on or
prior to the Effectiveness Date (or in the event an additional Registration
Statement is filed because the actual number of Registrable Securities exceeds
the number of shares of Common Stock initially registered is not filed and
declared effective within the time periods set forth in Section 2), or (ii) the
Company fails to file with the Commission a request for acceleration in
accordance with Rule 12dl-2 promulgated under the Exchange Act within five (5)
Business Days of the date that the Company is notified (orally or in writing,
whichever is earlier) by the Commission that a Registration Statement will not
be “reviewed,” or not subject to further review, or (iii) the Registration
Statement is filed with and declared effective by the Commission but thereafter
ceases to be effective as to all Registrable Securities at any time during the
Period, without being succeeded within a reasonable period by a subsequent
Registration Statement filed with and declared effective by the Commission, or
(iv) during the Period, trading in the Common Stock shall be suspended for any
reason for more than three (3) Business Days in the aggregate, or (v) the
Company has breached Section 3(r) of this Agreement (any such failure or breach
being referred to as an “Event”), the Company shall pay as liquidated damages
for such failure

-12-

 

 and not as a penalty (the “Liquidated Damages”) to the Holder an amount
equal to two percent (2%) of the purchase price paid by the Holder for all
Registrable Securities then held by the Holder for each thirty (30) day period,
or portion thereof, following the Event until the applicable Event has been
cured; provided, however, that the combined aggregate Liquidated Damages
payable by the Company for a delayed filing of the Registration Statement or
delayed effectiveness beyond the Effectiveness Date shall not exceed sixteen
percent (16%) of the purchase price paid for the Common Shares and Liquidated
Damages shall cease to accrue after the date on which the Holder would be able
to sell all such Registrable Securities held by it without restriction pursuant
to Rule 144(k) promulgated under the Securities Act. Payments to be made
pursuant to this Section 7(d) shall be due and payable immediately upon demand
at the option of the Holder in cash. The parties agree that the Liquidated
Damages represent a reasonable estimate on the part of the parties, as of the
date of this Agreement, of the amount of damages that may be incurred by the
Holder if the Registration Statement is not filed on or prior to the Filing
Date or has not been declared effective by the Commission on or prior to the
Effectiveness Date and maintained in the manner contemplated herein during the
Effectiveness Period or if any other Event as described herein has occurred.
If the Company is prevented from performing any of its obligations under this
Section 7(d) due to any cause beyond the Company’s reasonable control,
including, without limitation, an act of God, an act of terrorism, fire, flood,
explosion, war, strike, embargo, government regulation, civil or military
authority, the Company shall not incur Liquidated Damages for the period of the
delay or inability to perform due to such occurrence.

             (e)     Specific Enforcement, Consent to Jurisdiction.

                       (i)     The Company and the Holder acknowledge and agree that irreparable
damage would occur in the event that any of the provisions of this Agreement or
the Purchase Agreement were not performed in accordance with their specific
terms or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent or cure breaches
of the provisions of this Agreement or the Purchase Agreement and to enforce
specifically the terms and provisions hereof or thereof, this being in addition
to any other remedy to which any of them may be entitled by law or equity.

                       (ii)     Both the Company and the Holder (i) hereby irrevocably submit to the
jurisdiction of the United States District Court for the Southern District of
New York and the courts of the State of New York located in New York county for
the purposes of any suit, action or proceeding arising out of or relating to
this Agreement or the Purchase Agreement and (ii) hereby waive, and agree not
to assert in any such suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of such court, that the suit, action or
proceeding is brought in an inconvenient forum or that the venue of the suit,
action or proceeding is improper. Both the Company and the Holder consent to
process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 7(e) shall
affect or limit any right to serve process in any other manner permitted by
law.

-13-

 

             (f)     Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given, unless the same shall be in writing and signed by the Company and the
Holder.

             (g)     Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earlier of (i) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice prior to 5:00 p.m., eastern standard
time, on a Business Day, (ii) the Business Day after the date of transmission,
if such notice or communication is delivered via facsimile at the facsimile
telephone number specified for notice later than 5:00 p.m., eastern time, on
any date and earlier than 11:59 p.m., eastern time, on such date, (iii) the
Business Day following the date of mailing, if sent by nationally recognized
overnight courier service or (iv) actual receipt by the party to whom such
notice is required to be given.

	 	 	 
	(x)	 	
if to the Company:
	 
	 	 	
Digene Corporation
	 	 	
1201 Clopper Road
	 	 	
Gaithersburg, Maryland 20878
	 
	 	 	
Tel. No.: (301) 944-7000
	 	 	
Fax No.: (301) 944-7017
	 	 	
Attn: President
	 
	with a copy to:
	 
	 	 	
Ballard Spahr Andrews & Ingersoll, LLP
	 	 	
1735 Market Street, 51st Floor
	 	 	
Philadelphia, Pennsylvania 19103
	 	 	
Attn: Morris Cheston, Jr.
	 
	 	 	
Tel. No.: (215) 864-8609
	 	 	
Fax No.: (215) 864-8999
	 
	(y)	 	
if to the Purchaser:
	 
	 	 	

	 	 	

	 	 	

	 	 	

	 	 	

	 	 	

	 
	 	 	
Tel. No.:                                                        
	 	 	
Fax No.:                                                        

-14-

 

or to such other address or addresses or facsimile number or numbers as any
such party may most recently have designated in writing to the other parties
hereto by such notice.

             (h)     Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties and their successors and permitted assigns
and shall inure to the benefit of the Holder and its successors and permitted
assigns. The Company may not assign this Agreement or any of its rights or
obligations hereunder without the prior written consent of the Holder. The
Holder may assign its rights hereunder in the manner and to the Persons as
permitted under this Agreement with the prior consent of the Company, which
consent shall not be unreasonably withheld .

             (i)     Assignment of Registration Rights. The rights of each Holder
hereunder, including the right to have the Company register for resale
Registrable Securities in accordance with the terms of this Agreement, shall be
assignable by the Holder to any transferee of the Holder of all or a portion of
the shares of Registrable Securities if: (i) the Holder agrees in writing with
the transferee or permitted assignee to assign such rights, and a copy of such
agreement is furnished to the Company within a reasonable time after such
assignment, (ii) the Company is, within a reasonable time after such transfer
or assignment, furnished with written notice of (a) the name and address of
such transferee or permitted assignee, and (b) the securities with respect to
which such registration rights are being transferred or assigned, (iii)
following such transfer or assignment the further disposition of such
securities by the transferee or permitted assignees is restricted under the
Securities Act and applicable state securities laws, (iv) at or before the time
the Company receives the written notice contemplated by clause (ii) of this
Section, the transferee or permitted assignee agrees in writing with the
Company to be bound by all of the provisions of this Agreement, and (v) such
transfer shall have been made in accordance with the applicable requirements of
the Purchase Agreement and shall be for no less than 50% of the Registrable
Securities. In addition, the Holder shall have the right to assign its rights
hereunder to any other Person with the prior written consent of the Company,
which consent shall not be unreasonably withheld. The rights to assignment
shall apply to the Holder and to subsequent successors and permitted assigns In
the event of an assignment pursuant to this Section 7(i), the Holder shall pay
all incremental costs and expenses incurred by the Company in connection with
filing a Registration Statement, or an amendment to a filed Registration
Statement, to register the Registrable Securities assigned to any assignee or
transferee.

             (j)     Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original
and, all of which taken together shall constitute one and the same Agreement.
In the event that any signature is delivered by facsimile transmission, such
signature shall create a valid binding obligation of the party executing (or on
whose behalf such signature is executed) the same with the same force and
effect as if such facsimile signature were the original thereof.

             (k)     Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to principles
of conflicts of law thereof. This Agreement shall not be interpreted or
construed with any presumption against the party causing this Agreement to be
drafted.

-15-

 

             (l)     Cumulative Remedies. The remedies provided herein are cumulative and
not exclusive of any remedies provided by law.

             (m)     Severability. If any term, provision, covenant or restriction of this
Agreement is held to be invalid, illegal, void or unenforceable in any respect,
the remainder of the terms, provisions, covenants and restrictions set forth
herein shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, and the parties hereto shall use their reasonable
efforts to find and employ an alternative means to achieve the same or
substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the
intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

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

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-16-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed by their respective authorized persons as
of the date first indicated above.

	 	 	 
		Digene Corporation
	 
	 	By:
	 		

	 		Name:

        Title:
	 
	 	[Purchaser]
	 
	 	By:
	 		

	 		Name:

        Title:

 

 

EXHIBIT A

FORM OF NOTICE OF EFFECTIVENESS

OF REGISTRATION STATEMENT

[TRANSFER AGENT]

[ADDRESS]

Attn: _______________

          Re:     Digene Corporation

Ladies and Gentlemen:

     We are counsel to Digene Corporation, a Delaware corporation (the
“Company”), and have represented the Company in connection with that certain
Purchase Agreement (the “Purchase Agreement”), dated as of January 28, 2002, by
and between the Company and the Purchaser named therein pursuant to which the
Company issued to the Purchaser shares (the “Common Shares”) of its Common
Stock, no par value (the “Common Stock”). Pursuant to the Purchase Agreement,
the Company has also entered into a Registration Rights Agreement with the
Purchaser (the “Registration Rights Agreement”), dated as of December __, 2001,
pursuant to which the Company agreed, among other things, to register the
Registrable Securities (as defined in the Registration Rights Agreement),
including the Common Shares, under the Securities Act of 1933, as amended (the
“1933 Act”). In connection with the Company’s obligations under the
Registration Rights Agreement, on _______________, 200_, the Company filed a
Registration Statement on Form S-3 (File No. 333-_________) (the “Registration
Statement”) with the Securities and Exchange Commission (the “SEC”) relating to
the resale of the Registrable Securities which names the Holder as a selling
stockholder thereunder.

     In connection with the foregoing, we advise you that a member of the SEC’s
staff has advised us by telephone that the SEC has entered an order declaring
the Registration Statement effective under the 1933 Act at [ENTER TIME OF
EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge, after
telephonic inquiry of a member of the SEC’s staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and, accordingly, the
Registrable Securities are available for resale under the 1933 Act in the
manner specified in, and pursuant to the terms of the Registration Statement.

	 	 
	 	Very truly yours,
	 
	 	By:
	 
	cc: Purchaser

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