Document:

exv10w47

 

Exhibit 10.47

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), AND HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON THE EXEMPTION FROM
REGISTRATION PROVIDED BY SECTION 4(2) OF THE ACT. THESE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACE OF 1933, AS AMENDED,
OR PURSUANT TO RULE 144 UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION IS NOT REQUIRED UNDER THE ACT.

WARRANT

To Purchase Common Stock of

CIPHERGEN BIOSYSTEMS, INC.

August 3, 2006

     THIS WARRANT CERTIFIES that, for value received, Oppenheimer & Co. Inc. (the
“Holder”), is entitled, upon the terms and subject to the conditions hereinafter set
forth, at any time on or prior to 5:00 P.M., Pacific Time on August 3, 2011 (the “Expiration
Date”), but not thereafter, to subscribe for and purchase, from Ciphergen Biosystems, Inc., a
Delaware company (the “Company”), One Hundred Thousand (100,000) shares of common stock
(the “Warrant Stock”) of the Company (the “Warrant”). The purchase price for one
share of the Company’s common stock under this Warrant shall equal $1.26 per share (the
“Exercise Price”).

     The purchase price and the number of shares for which the Warrant is exercisable shall be
subject to adjustment as provided herein. The class and series of shares of capital stock of the
Company issuable upon exercise of this Warrant is also subject to adjustment pursuant to Section 9
hereof.

     1. Exercise of Warrant.

          (a) The purchase rights represented by this Warrant are exercisable by the Holder hereof, in
whole or in part, at any time before the Expiration Date, by the surrender of this Warrant, and the
Notice of Exercise annexed hereto duly executed at the principal executive office of the Company
(or such other office or agency of the Company as it may designate by notice in writing to the
Holder hereof at the address of such Holder appearing on the books of the Company), and upon
payment of the purchase price of the Warrant Stock thereby purchased (by cash or by check or bank
draft payable to the order of the Company or by cash wire transfer to the Company); whereupon the
Holder of this Warrant shall be entitled to receive a certificate for the number of Warrant Stock
so purchased. The Company agrees that if the Holder surrenders this Warrant and tenders the
purchase price on or prior to the Expiration Date, the Warrant Stock so

 

 

purchased shall be and will be deemed to be issued to such Holder as the record owner of
such shares as of the date on which this Warrant was exercised as aforesaid.

          (b) In lieu of exercising this Warrant by payment pursuant to paragraph 2(a) above, the
Holder may elect to receive Warrant Stock equal to the value of this Warrant (or the portion
thereof being exercised), at any time before the Expiration Date, by surrender of this Warrant at
the principal executive office of the Company, together with the Notice of Conversion annexed
hereto, in which event the Company will issue to the Holder Warrant Stock according to the
following formula:

	 	 	 	 	 
	 

	 	X = Y(A—B)
 

A
	 	 

     Where,

          X = The number of Warrant Stock to be issued to Holder;

          Y = The number of Warrant Stock for which the Warrant is being exercised;

          A = The fair market value of one share of Warrant Stock determined as set forth
herein; and

          B = The Exercise Price.

          For purposes of this subsection l(b), the fair market value of a share of Warrant Stock is
defined as follows:

               (1) if the exercise occurs at a time during which the
Company’s common stock is traded on a national securities exchange or on the Nasdaq National Market
or are actively traded over-the-counter, the fair market value of one common stock of the Company
means the average of the last reported or closing sale price for the Company’s common stock on such
exchange or market for the ten (10) trading days ending one business day prior to the date of
exercise of this Warrant; and

               (2) in all other cases, the fair market value of one share
of the Company’s common stock shall be determined in good faith by the Company’s Board of
Directors.

     2. Representations and Warranties of the Company. The Company hereby
represents, warrants and covenants to the Holder as follows:

          (a) Issuance of Shares. As soon as reasonably practicable after each exercise of this
Warrant, in whole or in part, the Company at its expense will cause to be issued in the name of
and delivered to the Holder hereof or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct:

               (i) a certificate or certificates for the number of duly authorized, validly issued, fully
paid and nonassessable shares of Warrant Stock to which such Holder shall be entitled upon such
exercise.

 

 

               (ii) in case such exercise is in part only, a new warrant or warrants calling in the aggregate
on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect
to any adjustment thereof) to the number of such shares called for on the face of this Warrant
minus the number of such shares designated by the Holder upon such exercise as provided herein.
Such new warrant or warrants shall contain the same terms and conditions as this Warrant.

          (b) Valid Issuance, Nonassessable. This Warrant, when issued and
delivered in accordance with the terms hereof, and the Warrant Stock, when issued
pursuant to the terms hereof, shall be duly authorized and validly issued. All Warrant
Stock which may be issued upon the exercise of rights represented by this Warrant will,
upon exercise of this Warrant, be fully paid and nonassessable and free from all taxes,
liens and charges in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

          (c) Authorization. The Company has full power and authority to enter
into this Warrant and to issue this Warrant under the terms and conditions contained
herein. This Warrant has been duly authorized, executed and delivered by the Company
and constitutes a valid and legally binding obligation, enforceable in accordance with its
terms.

          (d) Reservation of Authorized Shares. Through the period the Warrant
is outstanding, the Company shall reserve from its authorized and unissued common
stock a sufficient number of shares to provide for the issuance of the Company’s common
stock upon the exercise of this Warrant (taking into consideration any adjustments as
provided in Section 9 hereof). If at any time the number of authorized but unissued shares of the Company’s common stock shall be insufficient to effect the exercise of the
entire Warrant, the Company will use commercially reasonable efforts to take such action
as may, in the opinion of its counsel or the opinion of counsel to the Holder, be necessary
to increase such authorized but unissued shares of common stock to a number sufficient
to cover the exercise of the entire Warrant.

     3. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. With respect to any
fraction of a share called for upon the exercise of this Warrant, an amount equal to such
fraction multiplied by the then current price at which each share may be purchased
hereunder shall be paid in cash to the Holder of this Warrant upon exercise.

     4. Charges. Taxes and Expenses. Issuance of certificates for common stock
of the Company upon the exercise of this Warrant shall be made without charge to the
Holder hereof for any issue or transfer tax or other incidental expense in respect of the
issuance of such certificate, all of which taxes and expenses shall be paid by the
Company, and such certificates shall be issued in the name of the Holder of this Warrant.

     5. No Rights or Liabilities as Stockholders. This Warrant does not entitle the
Holder hereof to any voting rights or other rights as a stockholder of the Company prior
to the exercise thereof. In the absence of affirmative action by Holder to purchase

 

 

Warrant Stock by exercise of this Warrant, no provisions of this Warrant, and no enumeration
herein of the rights or privileges of the Holder shall cause such Holder to be a stockholder of
the Company for any purpose.

     6. Exchange and Registry of Warrant. The Company shall maintain at its
principal executive office or agency a registry showing the name and address of the
registered Holder of this Warrant. This Warrant may be surrendered for exchange,
transfer or exercise, in accordance with its terms, at such office or agency of the
Company, and the Company shall be entitled to rely in all respects, prior to written notice
to the contrary, upon such registry.

     7. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it, and upon reimbursement to the Company of all
reasonable expenses incidental thereto, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor
and dated as of such cancellation, in lieu of this Warrant.

     8. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein shall be a
Saturday or a Sunday or shall be a legal holiday, then such action may be taken or such
right may be exercised on the next succeeding day not a legal holiday.

     9. Adjustments. The Exercise Price and the number of Warrant Stock
purchasable hereunder are subject to adjustment from time to time as set forth in this
Section 9.

          (a) Reclassification, etc. If the Company, at any time while this
Warrant, or any portion hereof, remains outstanding and unexpired by reclassification of
securities or otherwise, shall change any of the securities as to which purchase rights
under this Warrant exist into the same or a different number of securities or any other
class or classes, this Warrant shall thereafter represent the right to acquire such number
and kind of securities as would have been issuable as the result of such change with
respect to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise Price therefor
shall be appropriately adjusted, all subject to further adjustment as provided in this
Section 9.

          (b) Subdivision or Combination of Shares. In the event that the
Company shall at any time subdivide the outstanding securities as to which purchase
rights under this Warrant exist, or shall issue a stock dividend on the securities as to
which purchase rights under this Warrant exist, the number of securities as to which
purchase rights under this Warrant exist immediately prior to such subdivision or to the
issuance of such stock dividend shall be proportionately increased, and the Exercise Price
shall be proportionately decreased, and in the event that the Company shall at any time
combine the outstanding securities as to which purchase rights under this Warrant exist,

 

 

the number of securities as to which purchase rights under this Warrant exist immediately prior to
such combination shall be proportionately decreased, and the Exercise Price shall be
proportionately increased, effective at the close of business on the date of such subdivision,
stock dividend or combination, as the case may be.

          (c) Corporate Reorganizations. If at any time after the date hereof
there shall be a capital reorganization (other than a combination or subdivision of
Warrant Stock otherwise provided for herein), or a merger or consolidation of the
Company with or into another corporation, or the sale of substantially all of the
Company’s properties and assets to any other person or entity, then, as a part of such
reorganization, merger, consolidation or sale, the Company shall take such steps so that
the Holder shall thereafter be entitled to receive, upon exercise of this Warrant, the
number of shares of stock or other securities, cash or property of the Company or the
successor entity resulting from such reorganization, merger, consolidation or sale, to
which the Holder of this Warrant would have been entitled under the terms and
conditions of such reorganization, merger, consolidation or sale if this Warrant had been
exercised prior to the record date of such reorganization, merger, consolidation or sale.

          (d) Cash Distributions. The Company will make no adjustment to the
Exercise Price on account of cash dividends or interest on the Warrant Stock.

          (e) Other Distributions. If the Company at any time makes, or fixes a
record date for the determination of holders of the Company’s common stock entitled to
receive any distribution payable in securities of the Company, or any other securities or
property other than cash dividends, then and in each such event provision shall be made
so that the Holder hereof shall receive upon exercise of the Warrant, in addition to the
number of shares of the Company’s common stock issuable upon exercise of this
Warrant, the amount of such securities or property which such Holder would have
received had this Warrant been exercised on the date of such event and had such Holder
thereafter, during the period from the date of such event to and including the date of
exercise, retained such securities or property receivable by such Holder as aforesaid
during such period, subject to all other adjustments called for such period under this
Section 9 with respect to the rights of the Holder.

          (f) No Dilution or Impairment. The Company will not, by amendment
of its certificate of incorporation or bylaws, or through any consolidation, merger,
reorganization, transfer of assets, dissolution, issue or sale of securities or any other
voluntary action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant.

          Without limiting the generality of the foregoing, the Company (a) will take all such action
as may be necessary or appropriate in order that the Company may validly and legally issue fully
paid and nonassessable shares of stock on the exercise of the Warrants from time to time
outstanding and (b) will not take any action which results in any adjustments of the Warrant Price
if the total number of shares of Warrant Stock issuable after the action upon the exercise of all
of the Warrants would exceed the total

 

 

number of shares of Warrant Stock then authorized by the Company’s certificate of incorporation
and available for the purpose of issue upon such exercise.

     10. Certificate of Adjustments. In the case of each adjustment or readjustment
of the Warrant Price and/or the number of Warrant Stock, the Company, at its expense,
will promptly compute such adjustment or readjustment in accordance with the terms
hereof and cause a certificate, signed by the Company’s chief financial officer, setting
forth such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based, to be delivered to the Holder of this Warrant. The
Company will furnish or cause to be furnished to such Holder a certificate setting forth:

          (a) Such adjustments and readjustments;

          (b) The Warrant Price at the time in effect and how it was calculated;

and;

          (c) The number of shares of Warrant Stock and the amount, if any, of
other property at the time receivable upon the exercise of the Warrant.

     11. Notice of Record Date. In the event of:

          (a) Any taking by the Company of a record of the holders of any class
of securities of the Company for the purpose of determining the holders thereof who are
entitled to receive any dividend (other than a cash dividend payable out of earned surplus
at the same rate as that of the last such cash dividend theretofore paid) or other
distribution, or any right to subscribe for, purchase or otherwise acquire any shares of
stock of any class or any other securities or property;

          (b) Any capital reorganization of the Company, any reclassification or
recapitalization of the Warrant Stock of the Company, any transfer of all or substantially
all of assets of the Company to any other person, any consolidation or merger involving
the Company, or any transaction contemplated in Section 9 above; or

          (c) Any voluntary or involuntary dissolution, liquidation or winding-up of the Company;
the Company will deliver to the Holder of this Warrant at least ten (10) business days prior to
the date thereof, a notice specifying:

               (i) As the case may be, the date on which any such record is to be taken for the purpose of
such dividend, distribution or right, and the amount and character of such dividend, distribution
or right; and the record date for determining stockholders entitled to vote thereon.

               (ii) As the case may be, the closing of any reorganization, reclassification, transfer,
consolidation, merger, dissolution, liquidation or winding-up, and the record date for determining
stockholders entitled to vote thereon and the time, if any such time is to be fixed, as of which
the holders of record of Warrant Stock shall be

 

 

entitled to exchange their shares of Warrant Stock for the securities or other property
deliverable upon such reorganization, consolidation, merger, transfer, dissolution liquidation or
winding-up.

     12. Restrictions on Transferability of Warrant.

          (a) Restrictions on Transferability. This Warrant and the Warrant
Stock issuable upon exercise of this Warrant shall not be sold, assigned, transferred or
pledged except in compliance with this Section 12.

          (b) Restrictive Legend. The certificate or certificates evidencing the
Warrant Stock issued upon exercise of this Warrant shall be stamped or imprinted with a
legend in substantially the following form (in addition to any other legend reasonably
requested by the Company or its counsel in order to comply with applicable federal and
state securities laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), AND HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON THE
EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 4(2) OF THE ACT.
THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE TRANSFERRED WITHOUT
AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACE OF 1933, AS AMENDED, OR PURSUANT TO RULE 144 UNDER
SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION IS NOT REQUIRED UNDER THE ACT.

     The Holder of this Warrant, and each transferee thereof, consents to the Company making a
notation on its records and giving instructions to any transfer agent of the Warrant in order to
implement the restrictions on transfer established in this Section 12.

          (c) Notice of Proposed Transfers. The Holder, by acceptance of this
Warrant and the Warrant Stock, agrees to comply in all respects with the provisions of
this Section 12(c). The Holder agrees not to make any disposition of all or any portion of
the Warrant or the Warrant Stock unless and until (X) there is then in effect a registration
statement under the Securities Act covering such proposed disposition and such
disposition is made in accordance with such registration statement or (Y) the disposition
is otherwise being made in compliance with applicable federal and state securities laws.

 

 

     13. Investment Representations and Covenants of the Holder. With respect to the acquisition
of this Warrant, the Holder hereby represents and warrants to the Company as follows:

          (a) Experience. The Holder is capable of evaluating the merits and
risks of its investment in the Company and has the capacity to protect its own interests.

          (b) Investment. The Holder is acquiring this Warrant for investment
for its own account, not as a nominee or agent, and not with the view to, or for
resale in connection with, any distribution thereof. The Holder understands that this
Warrant has not been, and will not be, registered under the Securities Act.

          (c) Rule 144. The Holder acknowledges that the Warrant must be held
indefinitely unless exercised or subsequently registered under the Securities Act,
or unless an exemption from such registration is available. The Holder understands
that the Company is not under any obligation to register this Warrant. The Holder is aware
of the provisions of Rule 144 promulgated under the Securities Act that permit limited
resale of securities purchased in a private placement subject to satisfaction of certain
conditions.

     14. Miscellaneous.

          (a) Governing Law. THIS AGREEMENT SHALL BE GOVERNED
IN ALL RESPECTS BY THE LAWS OF THE STATE OF DELAWARE WITHOUT
REGARD TO ITS CONFLICT OF LAWS PRINCIPLES.

          (b) Waivers and Amendments. This Warrant and any provisions
hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought.

          (c) Assignment. This Warrant may be assigned or transferred by the
Holder to (i) an entity that acquires ownership, directly or indirectly, of more
than fifty percent (50%) of the voting securities of, or possession of the right to vote, in
the ordinary direction of its affairs, of more than fifty percent (50%) of the voting
interest in the Holder; (ii) an entity that acquires all or substantially all of the assets of
the Holder; or (iii) an entity that is the resulting entity of a merger or consolidation of
the Holder. Upon such transfer this Warrant and all rights hereunder shall be transferred, in
whole or in part, on the books of the Company maintained for such purpose at the principal
office of the Company referred to above, by the Holder hereof in person, or by duly
authorized attorney, upon surrender of this Warrant properly endorsed and upon payment of any
necessary transfer tax or other governmental charge imposed on such transfer. Upon
any transfer, the Company shall issue and deliver to the Holder a new warrant. Each
taker and holder of this Warrant, by taking and holding the same, consents and agrees that
when this Warrant shall have been so endorsed, the person in possession of this Warrant
may be treated by the Company, and all other persons dealing with this Warrant, as the
absolute owner hereof for any purpose and as the person entitled to exercise the
rights represented hereby, any notice to the contrary notwithstanding. The terms and conditions

 

 

of this Warrant shall be binding upon any successors or assigns of the Company. Upon transfer, the
Holder shall have no further liability to the Company or any third party.

          (d) Notices. All notices and other communications required or
permitted hereunder shall be in writing and shall be delivered personally by hand or by
courier, mailed by United States first-class mail, postage prepaid, or sent by facsimile
directed to the party to be notified at the address or facsimile number indicated for such
person on the signature page hereof, or at such other address or facsimile number as such
party may designate by ten (10) days’ advance written notice to the other parties hereto.
All such notices and other communications shall be deemed given upon personal
delivery, on the date of mailing, or upon confirmation of facsimile transfer.

          (e) Counterparts. This Warrant may be executed two counterparts,
each of which shall be enforceable, and both of which shall constitute one instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, CIPHERGEN BIOSYSTEMS, INC. has caused this Warrant to be executed by its
officers thereunto duly authorized.

Dated: August 3, 2006

	 	 	 	 	 
	 	CIPHERGEN BIOSYSTEMS, INC.

 
/s/ Gail Page	 
	 	(Signature) 	 
	 
	 	GAIL S. PAGE 	 
	 	(Print Name) 	 
	 
	 	PRESIDENT & CEO 	 
	 	(Title) 	 
	 
	 	Address:

6611 Dumbarton Circle

Fremont, CA 94555 	 
	 

	 	 	 	 	 
	AGREED AND ACKNOWLEDGED: 

OPPENHEIMER & CO. INC.

 
/s/ Kee Colen	 	 
	(Signature) 	 	 
	 
	Kee Colen 	 	 
	(Print Name) 	 	 
	 
	Managing Director 	 	 
	(Title) 	 	 
	 
	Address:

125 Broad Street — 16th Floor

New York, NY 10004 	 	 
	 

 

 

NOTICE OF EXERCISE

To:    CIPHERGEN BIOSYSTEMS, INC.

(1) The undersigned hereby elects to purchase                                          shares of common
stock (the “Shares”) of CIPHERGEN BIOSYSTEMS, INC. pursuant to the terms of the attached Warrant,
and tenders herewith payment of the purchase price in full, together with all applicable transfer
taxes, if any.

(2) Please issue a certificate of certificates representing said Shares in the name of the undersigned or in such other name as is specified below:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Print Name)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

(3) The undersigned represents that the aforesaid Shares are being acquired for the
account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention
of distributing or reselling such shares.

	 	 	 	 	 
	 

	 	 	 	 
	(Date)

	 	(Signature)
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Print Name)	 	 

 

 

NOTICE OF CONVERSION

TO:   CIPHERGEN BIOSYSTEMS, INC.

1. The undersigned hereby elects to convert the attached Warrant into                      
common shares (the “Shares”) of CIPHERGEN BIOSYSTEMS, INC. pursuant to Section 1(b) of such Warrant,
which conversion shall be effected pursuant to the terms of the attached Warrant.

2. Please issue a certificate or certificates representing the Shares in the name of the
undersigned or in such other name as is specified below:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Print Name)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

3. The undersigned represents that the aforesaid Shares are being acquired for the
account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention
of distributing or reselling such shares.

	 	 	 	 	 
	 

	 	 	 	 
	(Date)

	 	(Signature)
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	(Print Name)exv10w48

 

Exhibit 10.48

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), AND HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON THE EXEMPTION FROM
REGISTRATION PROVIDED BY SECTION 4(2) OF THE ACT. THESE SECURITIES HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE TRANSFERRED WITHOUT AN
EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE SECURITIES ACE OF 1933, AS AMENDED,
OR PURSUANT TO RULE 144 UNDER SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION IS NOT REQUIRED UNDER THE ACT.

WARRANT

To Purchase Common Stock of

CIPHERGEN BIOSYSTEMS, INC.

November 15, 2006

     THIS WARRANT CERTIFIES that, for value received, Oppenheimer & Co. Inc. (the
“Holder”), is entitled, upon the terms and subject to the conditions hereinafter set
forth, at any time on or prior to 5:00 P.M., Pacific Time on November 15, 2011 (the
“Expiration Date”), but not thereafter, to subscribe for and purchase, from Ciphergen
Biosystems, Inc., a Delaware company (the “Company”), One Hundred Thousand (100,000)
shares of common stock (the “Warrant Stock”) of the Company (the“Warrant”). The
purchase price for one share of the Company’s common stock under this Warrant shall equal $1.26
per share (the“Exercise Price”).

     The purchase price and the number of shares for which the Warrant is exercisable shall be
subject to adjustment as provided herein. The class and series of shares of capital stock of the
Company issuable upon exercise of this Warrant is also subject to adjustment pursuant to Section 9
hereof.

     1. Exercise of Warrant.

          (a) The purchase rights represented by this Warrant are exercisable by the Holder hereof, in
whole or in part, at any time before the Expiration Date, by the surrender of this Warrant, and the
Notice of Exercise annexed hereto duly executed at the principal executive office of the Company
(or such other office or agency of the Company as it may designate by notice in writing to the
Holder hereof at the address of such Holder appearing on the books of the Company), and upon
payment of the purchase price of the Warrant Stock thereby purchased (by cash or by check or bank
draft payable to the order of the Company or by cash wire transfer to the Company); whereupon the
Holder of this Warrant shall be entitled to receive a certificate for the number of Warrant Stock
so purchased. The Company agrees that if the Holder surrenders this Warrant and tenders the
purchase price on or prior to the Expiration Date, the Warrant Stock so

 

 

purchased shall be and will be deemed to be issued to such Holder as the record owner of such
shares as of the date on which this Warrant was exercised as aforesaid.

          (b) In lieu of exercising this Warrant by payment pursuant to paragraph 2(a) above, the Holder
may elect to receive Warrant Stock equal to the value of this Warrant (or the portion thereof being
exercised), at any time before the Expiration Date, by surrender of this Warrant at the principal
executive office of the Company, together with the Notice of Conversion annexed hereto, in which
event the Company will issue to the Holder Warrant Stock according to the following formula:

	 	 	 	 	 
	 

	 	X = Y(A—B)
 

A
	 	 

     Where,

     X = The number of Warrant Stock to be issued to Holder;

     Y = The number of Warrant Stock for which the Warrant is being exercised;

     A = The fair market value of one share of Warrant Stock determined as set forth
herein; and

     B = The Exercise Price.

          For purposes of this subsection l(b), the fair market value of a share of Warrant Stock is
defined as follows:

                    (1) if the exercise occurs at a time during which the
Company’s common stock is traded on a national securities exchange or on the Nasdaq National Market
or are actively traded over-the-counter, the fair market value of one common stock of the Company
means the average of the last reported or closing sale price for the Company’s common stock on such
exchange or market for the ten (10) trading days ending one business day prior to the date of
exercise of this Warrant; and

                    (2) in all other cases, the fair market value of one share
of the Company’s common stock shall be determined in good faith by the Company’s Board of
Directors.

     2. Representations and Warranties of the Company. The Company hereby
represents, warrants and covenants to the Holder as follows:

          (a) Issuance of Shares. As soon as reasonably practicable after each exercise of this
Warrant, in whole or in part, the Company at its expense will cause to be issued in the name of
and delivered to the Holder hereof or as such Holder (upon payment by such Holder of any
applicable transfer taxes) may direct:

               (i) a certificate or certificates for the number of duly authorized, validly issued, fully
paid and nonassessable shares of Warrant Stock to which such Holder shall be entitled upon such
exercise.

 

 

               (ii) in case such exercise is in part only, a new warrant or warrants calling in the aggregate
on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect
to any adjustment thereof) to the number of such shares called for on the face of this Warrant
minus the number of such shares designated by the Holder upon such exercise as provided herein.
Such new warrant or warrants shall contain the same terms and conditions as this Warrant.

          (b) Valid Issuance, Nonassessable. This Warrant, when issued and
delivered in accordance with the terms hereof, and the Warrant Stock, when issued
pursuant to the terms hereof, shall be duly authorized and validly issued. All Warrant
Stock which may be issued upon the exercise of rights represented by this Warrant will,
upon exercise of this Warrant, be fully paid and nonassessable and free from all taxes,
liens and charges in respect of the issue thereof (other than taxes in respect of any transfer
occurring contemporaneously with such issue).

          (c) Authorization. The Company has full power and authority to enter
into this Warrant and to issue this Warrant under the terms and conditions contained
herein. This Warrant has been duly authorized, executed and delivered by the Company
and constitutes a valid and legally binding obligation, enforceable in accordance with its
terms.

          (d) Reservation of Authorized Shares. Through the period the Warrant
is outstanding, the Company shall reserve from its authorized and unissued common
stock a sufficient number of shares to provide for the issuance of the Company’s common
stock upon the exercise of this Warrant (taking into consideration any adjustments as
provided in Section 9 hereof). If at any time the number of authorized but unissued shares of the Company’s common stock shall be insufficient to effect the exercise of the
entire Warrant, the Company will use commercially reasonable efforts to take such action
as may, in the opinion of its counsel or the opinion of counsel to the Holder, be necessary
to increase such authorized but unissued shares of common stock to a number sufficient
to cover the exercise of the entire Warrant.

     3. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. With respect to any
fraction of a share called for upon the exercise of this Warrant, an amount equal to such
fraction multiplied by the then current price at which each share may be purchased
hereunder shall be paid in cash to the Holder of this Warrant upon exercise.

     4. Charges, Taxes and Expenses. Issuance of certificates for common stock
of the Company upon the exercise of this Warrant shall be made without charge to the
Holder hereof for any issue or transfer tax or other incidental expense in respect of the
issuance of such certificate, all of which taxes and expenses shall be paid by the
Company, and such certificates shall be issued in the name of the Holder of this Warrant.

     5. No Rights or Liabilities as Stockholders. This Warrant does not entitle the
Holder hereof to any voting rights or other rights as a stockholder of the Company prior
to the exercise thereof. In the absence of affirmative action by Holder to purchase

 

 

Warrant Stock by exercise of this Warrant, no provisions of this Warrant, and no enumeration
herein of the rights or privileges of the Holder shall cause such Holder to be a stockholder of
the Company for any purpose.

     6. Exchange and Registry of Warrant. The Company shall maintain at its
principal executive office or agency a registry showing the name and address of the
registered Holder of this Warrant. This Warrant may be surrendered for exchange,
transfer or exercise, in accordance with its terms, at such office or agency of the
Company, and the Company shall be entitled to rely in all respects, prior to written notice
to the contrary, upon such registry.

     7. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and in case of loss, theft or destruction, of indemnity or
security reasonably satisfactory to it, and upon reimbursement to the Company of all
reasonable expenses incidental thereto, and upon surrender and cancellation of this
Warrant, if mutilated, the Company will make and deliver a new Warrant of like tenor
and dated as of such cancellation, in lieu of this Warrant.

     8. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein shall be a
Saturday or a Sunday or shall be a legal holiday, then such action may be taken or such
right may be exercised on the next succeeding day not a legal holiday.

     9. Adjustments. The Exercise Price and the number of Warrant Stock
purchasable hereunder are subject to adjustment from time to time as set forth in this
Section 9.

          (a) Reclassification, etc. If the Company, at any time while this
Warrant, or any portion hereof, remains outstanding and unexpired by reclassification of
securities or otherwise, shall change any of the securities as to which purchase rights
under this Warrant exist into the same or a different number of securities or any other
class or classes, this Warrant shall thereafter represent the right to acquire such number
and kind of securities as would have been issuable as the result of such change with
respect to the securities that were subject to the purchase rights under this Warrant
immediately prior to such reclassification or other change and the Exercise Price therefor
shall be appropriately adjusted, all subject to further adjustment as provided in this
Section 9.

          (b) Subdivision or Combination of Shares. In the event that the
Company shall at any time subdivide the outstanding securities as to which purchase
rights under this Warrant exist, or shall issue a stock dividend on the securities as to
which purchase rights under this Warrant exist, the number of securities as to which
purchase rights under this Warrant exist immediately prior to such subdivision or to the
issuance of such stock dividend shall be proportionately increased, and the Exercise Price
shall be proportionately decreased, and in the event that the Company shall at any time
combine the outstanding securities as to which purchase rights under this Warrant exist,

 

 

the number of securities as to which purchase rights under this Warrant exist
immediately prior to such combination shall be proportionately decreased, and the
Exercise Price shall be proportionately increased, effective at the close of business
on the date of such subdivision, stock dividend or combination, as the case may be.

          (c) Corporate Reorganizations. If at any time after the date hereof
there shall be a capital reorganization (other than a combination or subdivision of
Warrant Stock otherwise provided for herein), or a merger or consolidation of the
Company with or into another corporation, or the sale of substantially all of the
Company’s properties and assets to any other person or entity, then, as a part of
such reorganization, merger, consolidation or sale, the Company shall take such steps so
that the Holder shall thereafter be entitled to receive, upon exercise of this Warrant,
the number of shares of stock or other securities, cash or property of the Company or
the successor entity resulting from such reorganization, merger, consolidation or sale,
to which the Holder of this Warrant would have been entitled under the terms and
conditions of such reorganization, merger, consolidation or sale if this Warrant
had been exercised prior to the record date of such reorganization, merger, consolidation or
sale.

          (d) Cash Distributions. The Company will make no adjustment to the
Exercise Price on account of cash dividends or interest on the Warrant Stock.

          (e) Other Distributions. If the Company at any time makes, or fixes a
record date for the determination of holders of the Company’s common stock entitled
to receive any distribution payable in securities of the Company, or any other
securities or property other than cash dividends, then and in each such event provision shall be
made so that the Holder hereof shall receive upon exercise of the Warrant, in addition
to the number of shares of the Company’s common stock issuable upon exercise of this
Warrant, the amount of such securities or property which such Holder would have received had
this Warrant been exercised on the date of such event and had such Holder
thereafter, during the period from the date of such event to and including the date of
exercise, retained such securities or property receivable by such Holder as aforesaid during
such period, subject to all other adjustments called for such period under this Section
9 with respect to the rights of the Holder.

          (f) No Dilution or impairment. The Company will not, by amendment
of its certificate of incorporation or bylaws, or through any consolidation,
merger, reorganization, transfer of assets, dissolution, issue or sale of securities or any
other voluntary action, avoid or seek to avoid the observance or performance of any of
the terms of this Warrant.

          Without limiting the generality of the foregoing, the Company (a) will
take all such action as may be necessary or appropriate in order that the Company may
validly and legally issue fully paid and nonassessable shares of stock on the exercise of
the Warrants from time to time outstanding and (b) will not take any action which results
in any adjustments of the Warrant Price if the total number of shares of Warrant Stock issuable after the action upon the exercise of all of the Warrants would exceed the total

 

 

number of shares of Warrant Stock then authorized by the Company’s certificate of
incorporation and available for the purpose of issue upon such exercise.

     10. Certificate of Adjustments. In the case of each adjustment or
readjustment of the Warrant Price and/or the number of Warrant Stock, the Company, at its
expense, will promptly compute such adjustment or readjustment in accordance with the
terms hereof and cause a certificate, signed by the Company’s chief financial officer,
setting forth such adjustment or readjustment and showing in detail the facts upon which
such adjustment or readjustment is based, to be delivered to the Holder of this Warrant.
The Company will furnish or cause to be furnished to such Holder a certificate setting
forth:

          (a) Such adjustments and readjustments;

          (b) The Warrant Price at the time in effect and how it was calculated;

and;

          (c) The number of shares of Warrant Stock and the amount, if any, of
other property at the time receivable upon the exercise of the Warrant.

     11. Notice of Record Date. In the event of:

          (a) Any taking by the Company of a record of the holders of any class
of securities of the Company for the purpose of determining the holders thereof who
are entitled to receive any dividend (other than a cash dividend payable out of earned
surplus at the same rate as that of the last such cash dividend theretofore paid) or other
distribution, or any right to subscribe for, purchase or otherwise acquire any shares
of stock of any class or any other securities or property;

          (b) Any capital reorganization of the Company, any reclassification or
recapitalization of the Warrant Stock of the Company, any transfer of all or
substantially all of assets of the Company to any other person, any consolidation or merger
involving the Company, or any transaction contemplated in Section 9 above; or

          (c) Any voluntary or involuntary dissolution, liquidation or winding-up of the Company; the Company will deliver to the Holder of this Warrant at least ten (10) business days
prior to the date thereof, a notice specifying:

               (i) As the case may be, the date on which any such record is to be taken for the
purpose of such dividend, distribution or right, and the amount and character of such
dividend, distribution or right; and the record date for determining stockholders
entitled to vote thereon.

               (ii) As the case may be, the closing of any reorganization,
reclassification, transfer, consolidation, merger, dissolution, liquidation or winding-up,
and the record date for determining stockholders entitled to vote thereon and the time, any
such time is to be fixed, as of which the holders of record of Warrant Stock shall be

 

 

entitled to exchange their shares of Warrant Stock for the securities or other property
deliverable upon such reorganization, consolidation, merger, transfer, dissolution liquidation or
winding-up.

     12. Restrictions on Transferability of Warrant.

          (a) Restrictions on Transferability. This Warrant and the Warrant
Stock issuable upon exercise of this Warrant shall not be sold, assigned, transferred or
pledged except in compliance with this Section 12.

          (b) Restrictive Legend. The certificate or certificates evidencing the
Warrant Stock issued upon exercise of this Warrant shall be stamped or imprinted with a
legend in substantially the following form (in addition to any other legend reasonably
requested by the Company or its counsel in order to comply with applicable federal and
state securities laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), AND HAVE BEEN ISSUED AND SOLD IN RELIANCE UPON THE
EXEMPTION FROM REGISTRATION PROVIDED BY SECTION 4(2) OF THE ACT.
THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO DISTRIBUTION OR RESALE, AND MAY NOT BE TRANSFERRED WITHOUT
AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES UNDER THE
SECURITIES ACE OF 1933, AS AMENDED, OR PURSUANT TO RULE 144 UNDER
SUCH ACT OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT
REGISTRATION IS NOT REQUIRED UNDER THE ACT.

     The Holder of this Warrant, and each transferee thereof, consents to the Company making a
notation on its records and giving instructions to any transfer agent of the Warrant in order to
implement the restrictions on transfer established in this Section 12.

          (c) Notice of Proposed Transfers. The Holder, by acceptance of this
Warrant and the Warrant Stock, agrees to comply in all respects with the provisions of
this Section 12(c). The Holder agrees not to make any disposition of all or any portion of
the Warrant or the Warrant Stock unless and until (X) there is then in effect a registration
statement under the Securities Act covering such proposed disposition and such
disposition is made in accordance with such registration statement or (Y) the disposition
is otherwise being made in compliance with applicable federal and state securities laws.

 

 

     13. Investment Representations and Covenants of the Holder. With respect to
the acquisition of this Warrant, the Holder hereby represents and warrants to the
Company as follows:

          (a) Experience. The Holder is capable of evaluating the merits and
risks of its investment in the Company and has the capacity to protect its own interests.

          (b) Investment. The Holder is acquiring this Warrant for investment
for its own account, not as a nominee or agent, and not with the view to, or for resale in
connection with, any distribution thereof. The Holder understands that this Warrant has
not been, and will not be, registered under the Securities Act.

          (c) Rule 144. The Holder acknowledges that the Warrant must be held
indefinitely unless exercised or subsequently registered under the Securities Act, or
unless an exemption from such registration is available. The Holder understands that the
Company is not under any obligation to register this Warrant. The Holder is aware of the
provisions of Rule 144 promulgated under the Securities Act that permit limited resale of
securities purchased in a private placement subject to satisfaction of certain conditions.

     14. Miscellaneous.

          (a) Governing Law. THIS AGREEMENT SHALL BE GOVERNED
IN ALL RESPECTS BY THE LAWS OF THE STATE OF DELAWARE WITHOUT
REGARD TO ITS CONFLICT OF LAWS PRINCIPLES.

          (b) Waivers and Amendments. This Warrant and any provisions
hereof may be changed, waived, discharged or terminated only by an instrument in
writing signed by the party against which enforcement of the same is sought.

          (c) Assignment. This Warrant may be assigned or transferred by the
Holder to (i) an entity that acquires ownership, directly or indirectly, of more than fifty
percent (50%) of the voting securities of, or possession of the right to vote, in the
ordinary direction of its affairs, of more than fifty percent (50%) of the voting interest in
the Holder; (ii) an entity that acquires all or substantially all of the assets of the Holder;
or (iii) an entity that is the resulting entity of a merger or consolidation of the Holder.
Upon such transfer this Warrant and all rights hereunder shall be transferred, in whole or
in part, on the books of the Company maintained for such purpose at the principal office
of the Company referred to above, by the Holder hereof in person, or by duly authorized
attorney, upon surrender of this Warrant properly endorsed and upon payment of any
necessary transfer tax or other governmental charge imposed on such transfer. Upon any
transfer, the Company shall issue and deliver to the Holder a new warrant. Each taker and
holder of this Warrant, by taking and holding the same, consents and agrees that when
this Warrant shall have been so endorsed, the person in possession of this Warrant may
be treated by the Company, and all other persons dealing with this Warrant, as the
absolute owner hereof for any purpose and as the person entitled to exercise the rights
represented hereby, any notice to the contrary notwithstanding. The terms and conditions

 

 

of this Warrant shall be binding upon any successors or assigns of the Company. Upon transfer, the
Holder shall have no further liability to the Company or any third party.

          (d) Notices. All notices and other communications required or
permitted hereunder shall be in writing and shall be delivered personally by hand or by
courier, mailed by United States first-class mail, postage prepaid, or sent by facsimile
directed to the party to be notified at the address or facsimile number indicated for such
person on the signature page hereof, or at such other address or facsimile number as such
party may designate by ten (10) days’ advance written notice to the other parties hereto.
All such notices and other communications shall be deemed given upon personal
delivery, on the date of mailing, or upon confirmation of facsimile transfer.

          (e) Counterparts. This Warrant may be executed two counterparts,
each of which shall be enforceable, and both of which shall constitute one instrument.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, CIPHERGEN BIOSYSTEMS, INC. has caused this Warrant to be executed by its officers thereunto duly authorized.

Dated: November 15, 2006

	 	 	 	 	 	 	 
	 

	 	 	 	CIPHERGEN BIOSYSTEMS, INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	/s/
Gail Page
	 	 
	 
	 	 	 	
(Signature)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	GAIL S. PAGE
 

(Print Name)	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	PRESIDENT & CEO

 

(Title)	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Address:	 	 
	 

	 	 	 	6611 Dumbarton Circle	 	 
	 

	 	 	 	Fremont, CA 94555	 	 
	 
	 	 	 	 	 	 
	AGREED AND ACKNOWLEDGED:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	OPPENHEIMER & CO. INC.
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/
Kee Colen
	 	 	 	 
	 	 	 	 
	
(Signature)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Kee Colen

 

(Print Name)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Managing Director

 

(Title)
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Address:
	 	 	 	 	 	 
	125 Broad Street —16th Floor
	 	 	 	 	 	 
	New York, NY 10004
	 	 	 	 	 	 

 

 

NOTICE OF EXERCISE

To:     CIPHERGEN BIOSYSTEMS, INC.

(1) The undersigned hereby elects to purchase                      shares of common stock (the“Share”) of CIPHERGEN BIOSYSTEMS, INC. pursuant to the terms of the attached Warrant, and
tenders herewith payment of the purchase price in full, together with all applicable transfer
taxes, if any.

(2) Please issue a certificate of certificates representing said Shares in the name of the
undersigned or in such other name as is specified below:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Print Name)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

(3) The undersigned represents that the aforesaid Shares are being acquired for the
account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention
of distributing or reselling such shares.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

(Date)

	 	 	 	 

(Signature)	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
(Print Name)
	 	 

 

 

NOTICE OF CONVERSION

TO:     CIPHERGEN BIOSYSTEMS, INC.

1. The undersigned hereby elects to convert the attached Warrant into                      common shares (the“Shares”) of CIPHERGEN BIOSYSTEMS, INC. pursuant to Section 1(b) of such Warrant,
which conversion shall be effected pursuant to the terms of the attached Warrant.

2. Please issue a certificate or certificates representing the Shares in the name of the
undersigned or in such other name as is specified below:

	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Print Name)
	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

3. The undersigned represents that the aforesaid Shares are being acquired for the
account of the undersigned for investment and not with a view to, or for resale in
connection with, the distribution thereof and that the undersigned has no present intention of distributing or reselling such shares.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

(Date)

	 	 	 	 

(Signature)
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 
(Print Name)

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