Document:

Exhibit 10.31

 

	
   

  	
  For Bank Use Only

  	
   

  	
  Reviewed
  by

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Due  May 31, 2004

  	
   

  	
   

  
	
   

  	
  Customer #  0013592421

  	
   

  	
  Loan #  34

  
						

 

INSTALLMENT OR SINGLE PAYMENT NOTE

 

	
  $1,500,00.00

  	
   

  	
   

  	
  NOVEMBER 25, 2003

  

 

FOR VALUE RECEIVED, the undersigned borrower (the “Borrower”), promises to pay to the order
of U.S. BANK N.A. (the “Bank”),
the principal sum of ONE MILLION FIVE HUNDRED THOUSAND AND NO/100 Dollars ($
1,500,00.00) the “Loan Amount”).

 

1.               Terms
for Advance(s).  [Choose One:]s

 

o           Single Advance.

 

ý            Multiple  Advances.
Prior to MAY 31, 2004 or the earlier termination hereof, the Borrower may obtain advances from the Bank under this Note
in an aggregate amount not exceeding the Loan Amount.  Although this Note is expressed as payable in the full Loan
Amount, the Borrower will be obligated to pay only the amounts actually
disbursed hereunder, together with accrued interest on the outstanding balance
at the rates and on the dates specified therein and such other charges provided
for herein.

 

2.               Interest.

The unpaid principal balance will bear interest at an annual rate equal
to the prime rate announced by the Bank.

 

The interest rate hereunder will be adjusted each time that the prime
rate changes.

 

 

3.               Payment
Schedule.

Interest is payable beginning DECEMBER 31, 2003, and on the same date
of each CONSECUTIVE month thereafter (except that if a given month does not
have such a date, the last day of such month), plus a final interest payment
with the final payment of principal.

 

Principal is payable on MAY 31, 2004.

 

 

4.               Closing Fee.  o  If
checked here, the Borrower will pay the Bank a one-time closing fee of $ n/a
contemporaneously with execution of this Note. This fee is in addition to all
other fees, expenses and other amounts due hereunder.

 

5.               Late Payment Fee. 
Subject to applicable law, if any payment is not made on or before its
due date, the Bank may collect a delinquency charge of 5.00% of the unpaid
amount. Collection of the late payment fee shall not be deemed to be a waiver
of the Bank’s right to declare a default hereunder.

 

6.               Calculation of Interest. 
Interest will be computed for the actual number of days principal is
unpaid, using a daily factor obtained by dividing the stated interest rate by
360.

 

7.               Default Interest Rate. 
Notwithstanding any provision of this Note to the contrary, upon any
default or at any time during the continuation thereof (including failure to
pay upon maturity), the Bank may, at its option and subject to applicable law,
increase the interest rate on this Note to a rate of 5% per annum plus the interest
rate otherwise payable hereunder. Notwithstanding the foregoing and subject to
applicable law, upon the occurrence of a default by the Borrower or any
guarantor involving bankruptcy, insolvency, receivership proceedings or an
assignment for the benefit of creditors, the interest rate on this Note shall
automatically increase to a rate of 5% per annum plus the rate otherwise
payable hereunder.

 

8.               Maximum Rate.  In no
event will the interest rate hereunder exceed that permitted by applicable
law.  If any interest or other charge is
finally determined by a court of competent jurisdiction to exceed the maximum
amount permitted by law, the interest or charge shall be reduced to the maximum
permitted by law, and the Bank may credit any excess amount previously
collected against the balance due or refund the amount to the Borrower.

 

1

 

9.               Additional
Terms.

 

 

10.         Financial
Information.  The Borrower will (i)
maintain accounting records in accordance with generally recognized and
accepted principles of accounting consistently applied throughout the
accounting periods involved; (ii) provide the Bank with such information
concerning its business affairs and financial condition (including insurance
coverage) as the Bank may reasonably request; and (iii) without request,
provide the Bank with annual financial statements prepared by an accounting
firm acceptable to the Bank within 120 days of the end of each fiscal year.

 

11.         Credit
Balances; Setoff.   As additional
security for the payment of the obligations described in this Note or any
document securing or related to the loan evidenced by this Note (collectively
the “Loan Documents”) and any
other obligations of the Borrower to the Bank of any nature whatsoever (collectively
the “Obligations”), the Borrower
hereby grants to the Bank a security interest in, a lien on and an express
contractual right to set off against all depository account balances, cash and
any other property of the Borrower now or hereafter in the possession of the
Bank and the right to refuse to allow withdrawals from any account
(collectively “Setoff”).  The Bank may, at any time upon the
occurrence of a default hereunder (notwithstanding any notice requirements or
grace/cure periods under this or other agreements between the Borrower and the
Bank) Setoff against the Obligations whether
or not the Obligations (including future installments) are then due or have
been accelerated, all without any advance or contemporaneous notice or demand
of any kind to the Borrower, such notice and demand being expressly waived.

 

12.         Advances
and Paying Procedure.  The Bank is
authorized and directed to credit any of the Borrower’s accounts with the Bank
(or to the account the Borrower designates in writing) for all loans made
hereunder, and the Bank is authorized to debit such account or any other
account of the Borrower with the Bank for the amount of any principal, interest
or expenses due under the Note or other amount due hereunder on the due date
with respect thereto.  Payments due
under the Note and other Loan Documents will be made in lawful money of the
United States.  All payments may be
applied by the Bank to principal, interest and other amounts due under the Loan
Documents in any order which the Bank elects. 
If, upon any request by the Borrower to the Bank to issue a wire
transfer, there is an inconsistency between the name of the recipient of the
wire and its identification number as specified by the Borrower, the Bank may,
without liability, transmit the payment via wire based solely upon the
identification number.

 

13.         Defaults.  Notwithstanding any cure periods described
below, the Borrower shall immediately notify the Bank in writing when the
Borrower obtains knowledge of the occurrence of any default specified below.  Regardless of whether the Borrower has given
the required notice, the occurrence of one or more of the following shall
constitute a default:

(a)          Nonpayment.  The Borrower shall fail to pay (i) any
interest due on this Note or any fees, charges, costs or expenses under the
Loan Documents by 5 days after the same becomes due; or (ii) any principal
amount of this Note when due.

(b)         Nonperformance.  The Borrower or any guarantor of the
Borrower’s Obligations to the Bank (“Guarantor”)
shall fail to perform or observe any agreement, term, provision, condition, or
covenant (other than a default occurring under (a), (c), (d), (e), (f) or (g)
of this paragraph 13) required to be performed or observed by the Borrower or
any Guarantor hereunder or under any other Loan Document or other agreement
with or in favor of the Bank.

(c)          Misrepresentation.  Any financial information, statement,
certificate, representation or warranty given to the Bank by the Borrower or
any Guarantor (or any of their representatives) in connection with entering
into this Note or the other Loan Documents and/or any borrowing thereunder, or
required to be furnished under the terms thereof, shall prove untrue or
misleading in any material respect (as determined by the Bank in the exercise
of its judgment) as of the time when given.

(d)         Default on Other
Obligations.  The Borrower or any
Guarantor shall be in default under the terms of any loan agreement, promissory
note, lease, conditional sale contract or other agreement, document or instrument
evidencing, governing or securing any indebtedness owing by the Borrower or any
Guarantor to the Bank or any indebtedness in excess of $10,000 owing by the
Borrower to any third party, and the period of grace, if any, to cure said
default shall have passed.

(e)          Judgments.  Any judgment shall be obtained against the
Borrower or any Guarantor which, together with all other outstanding
unsatisfied judgments against the Borrower (or such Guarantor), shall exceed
the sum of $10,000 and shall remain unvacated, unbonded or unstayed for a
period of 30 days following the date of entry thereof.

(f)            Inability to Perform;
Bankruptcy/Insolvency.  (i) The
Borrower or any Guarantor shall die or cease to exist; or (ii) any Guarantor
shall attempt to revoke any guaranty of the Obligations described herein, or
any guaranty becomes unenforceable in whole or in part for any reason; or (iii)
any bankruptcy, insolvency or receivership proceedings, or an assignment for
the benefit of creditors, shall be commenced under any Federal or state law by
or against the Borrower or any Guarantor; or (iv) the Borrower or any Guarantor
shall become the subject of any out-of-court settlement with its creditors; or
(v) the Borrower or any Guarantor is unable or admits in writing its inability
to pay its debts as they mature; or (vi) if the Borrower is a limited liability
company, any member thereof shall withdraw or otherwise become disassociated
from the Borrower.

(g)         Adverse Change;
Insecurity.  (i) There is a material
adverse change in the business, properties, financial condition or affairs of
the Borrower or any Guarantor, or in any collateral securing the Obligations;
or (ii) the Bank in good faith deems itself insecure.

 

14.         Termination
of Loans; Additional Bank Rights. 
Upon the occurrence of any of the events identified in paragraph 13, the
Bank may at any time (notwithstanding any notice requirements or grace/cure
periods under this or other agreements between the Borrower

 

2

 

and the Bank) (i) immediately terminate its obligation, if any, to make
additional loans to the Borrower; (ii) Setoff; and/or (iii) take such other
steps to protect or preserve the Bank’s interest in any collateral, including
without limitation, notifying account debtors to make payments directly to the
Bank, advancing funds to protect any collateral and insuring collateral at the
Borrower’s expense; all without demand or notice of any kind, all of which are
hereby waived.

 

15.         Acceleration
of Obligations.  Upon the occurrence
of any of the events identified in paragraph 13(a) through 13(e) and 13(g), and
the passage of any applicable cure periods, the Bank may at any time
thereafter, by written notice to the Borrower, declare the unpaid principal
balance of any Obligations, together with the interest accrued thereon and
other amounts accrued hereunder and under the other Loan Documents, to be
immediately due and payable; and the unpaid balance shall thereupon be due and
payable, all without presentation, demand, protest or further notice of any
kind, all of which are hereby waived, and notwithstanding anything to the
contrary contained herein or in any of the other Loan Documents.  Upon the occurrence of any event under
paragraph 13(f), the unpaid principal balance of any Obligations, together with
all interest accrued thereon and other amounts accrued hereunder and under the
other Loan Documents, shall thereupon be immediately due and payable, all
without presentation, demand, protest or notice of any kind, all of which are
hereby waived, and notwithstanding anything to the contrary contained herein or
in any of the other Loan Documents. Nothing
contained in paragraph 13 or 14 or this paragraph shall limit the Bank’s right
to Setoff as provided in this Note.

 

16.         Collateral.  This Note is secured by any and all security
interests, pledges, mortgages or liens now or hereafter in existence granted to
the Bank to secure indebtedness of the Borrower to the Bank (unless prohibited
by law), including, without limitation, as described in the following
documents: COLLATERAL PLEDGE AGREEMENT DATED NOVEMBER 25, 2003

 

17.         Guaranties.  This Note is guarantied by each and every
guaranty now or hereafter in existence guarantying the indebtedness of the
Borrower to the Bank (except for any guaranty expressly limited by its terms to
a specific separate obligation of Borrower to the Bank) including, without
limitation, the following: N/A

 

 

18.         Additional
Bank Rights.  Without affecting the
liability of any Borrower, endorser, surety or guarantor, the Bank may, without
notice, renew or extend the time for payment, accept partial payments, release
or impair any collateral security for the payment of this Note, or agree not to
sue any party liable on it.

 

19.         Warranties.  The Borrower makes the following warranties:
(A) This Note and the other Loan Documents are the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower in accordance
with their terms. (B) The execution, delivery and performance of this Note and
all other Loan Documents to which the Borrower is a party (i) are within the
borrower’s power; (ii) have been duly authorized by all appropriate entity
action; (iii) do not require the approval of any governmental agency; and (iv)
will not violate any law, agreement or restriction by which the Borrower is
bound. (C) If the Borrower is not an individual, the Borrower is validly
existing and in good standing under the laws of its state of organization, has
all requisite power and authority and possesses all licenses necessary to
conduct its business and own its properties.

 

20.         Waivers;
Relationship to Other Documents. 
All Borrowers, endorsers, sureties and guarantors waive presentment,
protest, demand, and notice of dishonor. No delay on the part of the Bank in
exercising any right, power or privilege hereunder or under any of the other
Loan Documents will operate as a waiver thereof, nor will any single or partial
exercise of any right, power or privilege hereunder preclude other or further
exercise thereof or the exercise of any other right, power or privilege. The
warranties, covenants and other obligations of the Borrower (and rights and
remedies of the Bank) in this Note and all related documents are intended to be
cumulative and to supplement each other.

 

21.         Expenses
and Attorneys’ Fees.  Upon demand,
the Borrower will immediately reimburse the Bank and any participant in the
Obligations (“Participant”) for
all attorneys’ fees and all other costs, fees and out-of-pocket disbursements
incurred by the Bank or any Participant in connection with the preparation,
execution, delivery, administration, defense and enforcement of this Note or
any of the other Loan Documents, including attorneys’ fees and all other costs
and fees (a) incurred before or after commencement of litigation or at trial,
on appeal or in any other proceeding, (b) incurred in any bankruptcy proceeding
and (c) related to any waivers or amendments with respect thereto (examples of
costs and fees include but are not limited to fees and costs for: filing,
perfecting or confirming the priority of the Bank’s lien, title searches or
insurance, appraisals, environmental audits and other reviews related to the
Borrower, any collateral or the loans, if requested by the Bank).  The Borrower will also reimburse the Bank
and any Participant for all costs of collection before and after judgment, and
the costs of preservation and/or liquidation of any collateral.

 

22.         Applicable
Law and Jurisdiction; Interpretation; Joint Liability; Severability. This
Note and all other Loan Documents shall be
governed by and interpreted in accordance with the internal laws of the State
of OREGON, except to the extent superseded by Federal law.  Invalidity of any provisions of this Note
shall not affect any other provision. 
THE BORROWER HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE
OR FEDERAL COURT SITUATED IN THE COUNTY OR FEDERAL JURISDICTION OF THE BANK’S
BRANCH WHERE THE LOAN WAS ORIGINATED, AND WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS, WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES OR PROCEEDINGS
RELATING TO THIS NOTE, THE COLLATERAL, ANY OTHER LOAN DOCUMENT, OR ANY
TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR INTERPRETATION OF ANY OF
THE FOREGOING. Nothing herein shall affect the Bank’s rights to serve process
in any manner permitted by law, or limit the Bank’s right to bring proceedings
against the Borrower in the competent courts of any other jurisdiction or
jurisdictions.  This Note, the other
Loan Documents and any amendments hereto (regardless of when executed) will be
deemed effective and accepted only upon the Bank’s receipt of the executed
originals thereof. If there is more than one Borrower, the liability of the
Borrowers shall be joint and several, and the reference to “Borrower” shall be
deemed to refer to all Borrowers. 
Invalidity of any provision of this Note shall not affect the validity
of any other provision.

 

3

 

23.         Participations/Guarantors/Successors.  The Bank may, at its option, sell all or any
interests in the Note and other Loan Documents to other financial institutions
(the “Participant”), and in
connection with such sales (and thereafter) disclose any financial information
the Bank may have concerning the Borrower to any such Participant or potential
Participant.  From time to time, the
Bank may, in its discretion and without obligation to the Borrower, any
Guarantor or any other third party, disclose information about the Borrower and
this loan to any Guarantor, surety or other accommodation party.  This provision does not obligate the Bank to
supply any information or release the Borrower from its obligation to provide
such information, and the Borrower agrees to keep all Guarantors advised of its
financial condition and other matters which may be relevant to the Guarantors’
obligations to the Bank.  The rights,
options, powers and remedies granted in this Agreement and the other Loan
Documents will extend to the Bank and to its successors and assigns, will be
binding upon the Borrower and its successors and assigns and will be applicable
hereto and to all renewals and/or extensions hereof.

 

24.         Copies;
Entire Agreement; Modification.  The
Borrower hereby acknowledges the receipt of a copy of this Note and all other
Loan Documents.  This Note is a
“transferable record” as defined in applicable law relating to electronic
transactions.  Therefore, the holder of
this Note may, on behalf of Borrower, create a microfilm or optical disk or
other electronic image of this Note that is an authoritative copy as defined in
such law.  The holder of this Note may
store the authoritative copy of such Note in its electronic form and then
destroy the paper original as part of the holder’s normal business
practices.  The holder, on its own
behalf, may control and transfer such authoritative copy as permitted by such
law.

 

IMPORTANT: READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ
CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING, EXPRESSING CONSIDERATION AND
SIGNED BY THE PARTIES ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT
CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. THE TERMS OF THIS
AGREEMENT MAY ONLY BE CHANGED BY ANOTHER WRITTEN AGREEMENT. THIS NOTICE SHALL
ALSO BE EFFECTIVE WITH RESPECT TO ALL OTHER CREDIT AGREEMENTS NOW IN EFFECT
BETWEEN BORROWER AND THE BANK.  A
MODIFICATION OF ANY OTHER CREDIT AGREEMENTS NOW IN EFFECT BETWEEN BORROWER AND
THE BANK, WHICH OCCURS AFTER RECEIPT BY BORROWER OF THIS NOTICE, MAY BE MADE
ONLY BY ANOTHER WRITTEN INSTRUMENT. 
ORAL OR IMPLIED MODIFICATIONS TO SUCH CREDIT AGREEMENTS ARE NOT
ENFORCEABLE AND SHOULD NOT BE RELIED UPON.

 

25.         Waiver of Jury Trial.  THE BORROWER AND THE BANK HEREBY JOINTLY AND
SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
RELATING TO ANY OF THE LOAN DOCUMENTS, THE OBLIGATIONS THEREUNDER, ANY
COLLATERAL SECURING THE OBLIGATIONS, OR ANY TRANSACTION ARISING THEREFROM OR
CONNECTED THERETO.  THE BORROWER AND THE
BANK EACH REPRESENTS TO THE OTHER THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND
VOLUNTARILY GIVEN.

 

26.         Attachments. All documents
attached hereto, including any appendices, schedules, riders, and exhibits to
this Installment or Single Payment Note, are hereby expressly incorporated by
reference.

 

 

	
  (Individual Borrower)

  	
   

  	
  BIOJECT MEDICAL TECHNOLOGIES INC.

  
	
   

  	
   

  	
  Borrower Name (Organization)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  a

  	
  OREGON Corporation

  
	
   

  	
   

  	
   

  
	
  Borrower Name

  	
  N/A

  	
   

  	
  By

  	
   /s/ Michael A. Temple

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name and Title 

  	
  MICHAEL A. TEMPLE, EXECUTIVE VICE PRESIDENT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
  Borrower Name

  	
  N/A

  	
   

  	
  Name and Title

  	
   

  
	
   

  	
   

  
	
  Borrower Address:

  	
  7620 SW BRIDGEPORT ROAD, PORTLAND, OR 97224

  
	
   

  
	
  Borrower Telephone No.:

  	
   

  	
   

  
													

 

4

 

CORPORATE RESOLUTION FOR BORROWING AND/OR
PLEDGING ASSETS

 

BIOJECT MEDICAL TECHNOLOGIES INC.

 

NAME OF CORPORATION

 

WHEREAS, this corporation may enter into financial transactions or
accommodations with U.S. BANK N.A. (the “Bank”)
from time to time;

 

NOW, THEREFORE, RESOLVED, that any 1 of the officers of this
corporation denoted below: [mark authorized
officers]

 

	
  o

  	
  Chairman of the Board

  	
  o

  	
  Treasurer

  	
  ý

  	
  Other:

  	
  EXECUTIVE VICE PRESIDENT

  
	
  o

  	
  President

  	
  o

  	
  Secretary

  	
  o

  	
  Other:

  	
   

  
	
  o

  	
  Any Vice President

  	
  o

  	
  Any Assistant Treasurer

  	
  o

  	
  Other:

  	
   

  
	
   

  	
   

  	
  o

  	
  Any Assistant Secretary

  	
  o

  	
  Other:

  	
   

  

 

is (are) authorized, on behalf of and in the name of this corporation,
(a) to borrow money from the time to time in such amounts as such officer(s)
shall deem advisable; (b) to make, execute, seal with the corporate seal, and
deliver to the Bank, from time to time, loan agreements, disbursing agreements,
notes, applications for letters of credit, and other evidence of or agreements
concerning such indebtedness, in such amounts with such maturities, at such
rates of interest, and upon such terms and conditions as said officer(s) shall
approve; (c) to pledge, assign, mortgage or otherwise grant a security interest
in any or all real property, fixtures, tangible or intangible personal
property, or any other assets of this corporation, to execute, seal with the
corporate seal, and deliver to the Bank such security agreements, chattel
mortgages, assignments, financing statements, real estate mortgages, deeds of
trust, lease or rental assignments, assignments of life insurance, agreements
not to encumber, or other agreements respecting any or all interests in real or
personal property now owned or hereafter acquired by this corporation as may be
requested by the Bank to secure any obligations of this corporation to the Bank
or to secure the obligations of a third party to the Bank, now existing or
hereafter arising, all upon such terms and conditions as said officer(s) shall
approve, and to perform such acts required of this corporation in such
agreements or otherwise to perfect such security interests; (d) to sell to the
Bank, with or without recourse, accounts, contract rights, general intangibles,
instruments, documents, chattel paper, equipment, inventory, insurance
policies, deposit accounts, rights in action or other personal property of this
corporation; (e) to endorse or assign and deliver such property to the Bank,
and from time to time to withdraw and make substitutions of such property, or
to sell such property to third persons and cause the proceeds of such sales to
be applied against the obligations of this corporation to the Bank; (f) to give
subordinations, guaranties or other financial accommodations to the Bank (it
being the judgment of the governing body of this corporation that any such
guaranties may reasonably be expected to benefit the corporation); and (g) to
endorse and deliver for discount with the Bank, notes, certificates of deposit,
bills of exchange, orders for the payment of money, chattel paper, commercial,
or other business paper, howsoever drawn, either belonging to or coming into
the possession of this corporation.  The
signature(s) of said officer(s) appearing on any of the foregoing instruments
shall be conclusive evidence of (his/her) (their) approval thereof.

 

FURTHER RESOLVED, that the authority granted to the officers of this
corporation shall continue in full force and effect, and said Bank may rely
thereon in dealing with such officers, unless and until written notice of any
change in or revocation of such authority shall be delivered to said Bank to
the attention of Commercial Loan Servicing by an officer or director of this
corporation, and any action taken by said officers and relied on by said Bank
pursuant to the authority granted herein prior to its receipt of such written
notice shall be fully and conclusively binding on this corporation.

 

FURTHER RESOLVED, that the actions of any officer of this corporation
heretofore taken in borrowing money from the Bank for and on behalf of this
corporation, and in securing such indebtedness in any manner authorized herein,
and in selling or assigning property of this corporation to the Bank with or
without recourse, and in discounting with the Bank commercial and other
business paper, be and the same hereby are in all respects ratified, confirmed
and approved.

 

FURTHER RESOLVED, that in consideration of any loans or other financial
accommodation made by the Bank to this corporation, this corporation shall be
authorized to and shall assume full responsibility for and hold the Bank
harmless from any and all payments made or any other actions taken by the Bank
in reliance upon the signatures, including facsimiles thereof, of any person or
persons holding the offices of this corporation designated above regardless of
whether or not the use of the facsimile signature was unlawful or unauthorized
and regardless of by whom or by what means the purported signature or facsimile
signature may have been affixed to any instrument if such signatures reasonably
resemble the specimen or facsimile signatures as provided to the Bank, or for
refusing to honor any signatures not provided to the Bank; and that this
corporation agrees to indemnify the Bank against any and all claims, demands,
losses, costs, damages or expenses suffered or incurred by the Bank resulting
from or arising out of any such payment or other action.  The foregoing indemnification shall be
effective and may be enforced by the Bank upon delivery to the Bank of a copy of
this resolution certified by the Secretary, Assistant Secretary or any other
officer of this corporation.

 

FURTHER RESOLVED, that the Secretary, Assistant Secretary or any other
officer of this corporation is authorized and directed to certify to the Bank
the foregoing resolutions and that the provisions thereof are in conformity
with the Articles of Incorporation and By-Laws of this corporation and to
certify to the Bank the names of the persons now holding the offices referred
to above and any changes hereafter in the persons holding said offices together
with specimens of the signatures of such present and future officers.

 

FURTHER RESOLVED, that all prior resolutions of this corporation
authorizing the borrowing of money from the Bank and the securing thereof, be
and they hereby are rescinded and superseded as to all borrowings from the Bank
and security transactions with respect thereto effected after the date of
adoption of these resolutions.

 

 

I HEREBY CERTIFY that I am the duly elected, qualified and acting
Secretary (or as otherwise designated below) and the custodian of the records
of the above-named corporation, a corporation organized and existing and in
good standing under the laws of the State of OREGON.  The foregoing resolutions (i) are true and correct copies of the
resolutions duly adopted in accordance with law and the Charter or Articles or
Certificate of Incorporation and By-Laws or Code of Regulations, as applicable,
of the corporation and that such resolutions are now in full force and effect
without modifications and are duly recorded in the minute book of the
corporation or (ii) are otherwise in conformity with existing resolutions, the
Charter or Articles or Certificate of Incorporation and By-Laws or Code of
Regulations, as applicable, of the corporation, and permit the officers
designated herein to undertake all the activities set forth above.

 

I FURTHER CERTIFY that set forth below are the true titles, names and
genuine signatures of the duly elected or appointed, qualified and acting
officers of said corporation presently holding such offices who are authorized
under the foregoing resolutions:

 

	
  Title

  	
   

  	
  Name*

  	
   

  	
  Signature*

  
	
   

  	
   

  	
   

  	
   

  
	
  Chairman of the Board

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  President

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Vice President

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Treasurer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Assistant Treasurer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Assistant Secretary

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MICHAEL A. TEMPLE

  	
   

  	
   

  
	
  Other

  	
   

  	
  EXECUTIVE VICE PRESIDENT

  	
   

  	
  /s/ Michael A. Temple

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  	
   

  
									

 

I FURTHER CERTIFY that copies of the Charter or Articles or Certificate
of Incorporation and By-Laws or Code of Regulations, as applicable, of the
corporation which have heretofore been delivered to the Bank or which are
delivered herewith are true and correct copies and that such Charter or
Articles or Certificate and By-Laws or Code of Regulations, as applicable, are
presently in full force and effect.

 

IN WITNESS WHEREOF, I have affixed my name in my official capacity and
have caused the corporate seal of the corporation to be hereunto affixed
on                                             .

 

 

	
  (CORPORATE SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Secretary

  

 

* Only the names and signatures of officers who will act in
transactions with the Bank need be inserted.

 

 

CORPORATE RESOLUTION FOR GUARANTY AND PLEDGE
OF ASSETS

 

BIOJECT INC.

CORPORATE NAME OF GUARANTOR

 

WHEREAS, BIOJECT MEDICAL TECHNOLOGIES INC., a OREGON Corporation (the “Borrower”) proposes to borrow from U.S.
BANK N.A. (the “Bank”); and

 

WHEREAS, Bank has required as a condition of making such loans to
Borrower that this corporation guarantee payment of such borrowing and of all
present and future indebtedness, obligations and liabilities of Borrower to
Bank; and

 

WHEREAS, this corporation is a parent corporation of the Borrower, does
business with Borrower, leases assets from the Borrower or will otherwise
derive a direct and substantial business benefit from the loans made to the
Borrower by the Bank, the governing body of this corporation has determined
that the guarantee of the Borrower’s obligations may reasonably be expected to
benefit this corporation, and it is in the best interests of this corporation
that the Borrower receive the loans from the Bank;

 

NOW, THEREFORE, RESOLVED, that any 1 of the officers of this
corporation denoted below: [mark authorized
officers]

 

	
  o

  	
  Chairman of the Board

  	
  o

  	
  Treasurer

  	
  ý

  	
  Other: EXECUTIVE VICE PRESIDENT

  
	
  o

  	
  President

  	
  o

  	
  Secretary

  	
  o

  	
  Other:

  
	
  o

  	
  Any Vice President

  	
  o

  	
  Any Assistant Treasurer

  	
  o

  	
  Other:

  
	
   

  	
   

  	
  o

  	
  Any Assistant Secretary

  	
  o

  	
  Other:

  

 

is (are) authorized and directed for and on behalf of and in the name
of this corporation (a) to execute and deliver to the Bank a guaranty agreement
pursuant to which the due and punctual payment of all Borrower’s present and
future debts, obligations and liabilities to the Bank are guaranteed by this
corporation and containing such other provisions including without limitation,
waivers of notice, provisions releasing the Bank from any duties to perfect or
realize on any collateral, and all such other provisions as the Bank may
require and such officers approve; (b) to pledge, assign, mortgage or otherwise
grant a security interest in any or all real property, fixtures, tangible or
intangible personal property, or any other assets of this corporation, to
execute, seal with the corporate seal, and deliver to the Bank such security
agreements, chattel mortgages, assignments, financing statements, real estate
mortgages, deeds of trust, lease or rental assignments, assignments of life
insurance, agreements not to encumber or other agreements respecting any or all
interests in real or personal property now owned or hereafter acquired by this
corporation as may be requested by the Bank to secure any obligation of this
corporation to the Bank or of the Borrower to the Bank, now existing or
hereafter arising pursuant to such guaranty agreement or otherwise, all on such
terms and conditions as said officer(s) shall approve, and to perform such acts
required of this corporation in such agreements or otherwise to perfect such
security interests; (c) to sell to the Bank, with or without recourse,
accounts, contract rights, general intangibles, instruments, documents, chattel
paper, equipment, inventory, insurance policies, deposit accounts, rights in
action or other personal property of this corporation; (d) to endorse or assign
and deliver such property to the Bank, and from time to time to withdraw and
make substitutions of such property, or to sell such property to third persons
and cause the proceeds of such sales to be applied against the obligations of
this corporation to the Bank pursuant to the guaranty agreement or the
obligations of the Borrower to the Bank; and (e) to give subordinations,
guaranties, or other financial understandings to the Bank. The approval by such
officer(s) shall be conclusively evidenced by (his/her) (their) execution of
any such instrument described above.

 

FURTHER RESOLVED, that the authority granted to the officers of this
corporation shall continue in full force and effect, and said Bank may rely
thereon in dealing with such officers, unless and until written notice of any
change in or revocation of such authority shall be delivered to said Bank to
the attention of Commercial Loan Operations by an officer or director of this
corporation, and any action taken by said officers and relied on by said Bank
pursuant to the authority granted herein prior to its receipt of such written
notice shall be fully and conclusively binding on this corporation.

 

FURTHER RESOLVED, that the actions of any officer of this corporation
heretofore taken in guarantying the indebtedness of the Borrower to the Bank
for and on behalf of this corporation, and in securing such guaranty in any
manner authorized herein, and in selling or assigning property of this corporation
to the Bank with or without recourse, be and the same hereby are in all
respects ratified, confirmed and approved.

 

FURTHER RESOLVED, that in consideration of any loans or other financial
accommodations made by the Bank to the Borrower or this corporation, this
corporation shall be authorized and shall assume full responsibility and hold
the Bank harmless from any and all payments made or any other actions taken by
the Bank in reliance upon the signatures, including facsimiles thereof, of any
person or persons holding the offices of this corporation designated above
regardless of whether or not the use of the facsimile signature was unlawful or
unauthorized and regardless of by whom or by what means the purported signature
or facsimile signature may have been affixed to any instrument if such
signatures reasonably resemble the specimen or facsimile signatures as provided
to the Bank or for refusing to honor any signatures not provided to the Bank;
and that this corporation agrees to indemnify the Bank against any and all
claims, demands, losses, costs, damages or expenses suffered or incurred by the
Bank resulting from or arising out of any such payment or other action. The
foregoing indemnification shall be effective and may be enforced by the Bank upon
delivery to the Bank of a copy of this resolution certified by the Secretary,
Assistant Secretary or any other officer of this corporation.

 

FURTHER RESOLVED, that the Secretary or Assistant Secretary or any
other officer of this corporation is authorized and directed to certify to the
Bank the foregoing resolutions and that the provisions thereof are in
conformity with the Articles of Incorporation or Bylaws of this corporation and
to certify to the Bank the names of the persons now holding the offices
referred to above and any changes hereafter in the persons holding said offices
together with specimens of the signatures of such present and future officers.

 

(CONTINUED ON REVERSE SIDE)

 

 

I HEREBY CERTIFY that I am the duly elected, qualified and acting
Secretary (or as otherwise designated below) and the custodian of the records
of the above-named corporation, a corporation organized and existing and in
good standing under the laws of the State of OREGON. The foregoing resolutions
(i) are true and correct copies of the resolutions duly adopted in accordance
with law and the Charter or Articles or Certificate of Incorporation and
By-Laws or Code of Regulations, as applicable, of the corporation and that such
resolutions are now in full force and effect without modifications and are duly
recorded in the minute book of the corporation or (ii) are otherwise in
conformity with existing resolutions, the Charter or Articles or Certificate of
Incorporation and By-Laws or Code of Regulations, as applicable, of the
corporation, and permit the officers designated herein to undertake all the
activities set forth above.

 

I FURTHER CERTIFY that set forth below are the true titles, names and
genuine signatures of the duly elected or appointed, qualified and acting officers
of said corporation presently holding such offices who are authorized under the
foregoing resolutions:

 

	
  Title

  	
   

  	
  Name*

  	
   

  	
  Signature*

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chairman of the Board

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  President

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vice President

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Treasurer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Secretary

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assistant Treasurer

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Assistant Secretary

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MICHAEL A. TEMPLE

  	
   

  	
   

  
	
  Other

  	
   

  	
  EXECUTIVE VICE PRESIDENT

  	
   

  	
  /s/ Michael A. Temple

  	
   

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name & Title

  	
   

  	
   

  

 

I FURTHER CERTIFY that copies of the Charter or Articles or Certificate
of Incorporation and Bylaws or Code of Regulations, as applicable, of the
corporation which have heretofore been delivered to the Bank or which are
delivered herewith are true and correct copies and that such Charter or
Articles or Certificate and Bylaws or Code of Regulations, as applicable, are
presently in full force and effect.

 

IN WITNESS WHEREOF, I have affixed my name in my official capacity and
have caused the corporate seal of the corporation to be hereunto affixed, on
                                                 .

 

 

	
   

  	
  (CORPORATE SEAL)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Secretary

  

 

* Only the names and signatures of officers who will act in
transactions with the Bank need be inserted.

 

 

COLLATERAL PLEDGE AGREEMENT

 

This Collateral Pledge Agreement (the “Agreement”)
is made and entered into by the undersigned borrower, guarantor and/or other
obligor/pledgor (the “Debtor”) in
favor of U.S. BANK N. A. (the “Bank”)
as of the date set forth on the last page of this Agreement.

 

ARTICLE I -  COLLATERAL PLEDGE; SECURITY INTEREST; DEFINITIONS

 

1.1  Grant of Security Interest/Collateral Pledge.  In consideration of any financial accommodation at any
time granted by Bank to Debtor and/or BIOJECT MEDICAL TECHNOLOGIES INC. (the “Borrower”) and to secure the Obligations
(as defined below) to Bank, Debtor hereby grants to Bank a security interest in
and collaterally assigns to Bank the Collateral (defined below).  The intent of the parties hereto is that the
Collateral secures all Obligations of Debtor and Borrower to Bank, whether or
not such Obligations exist under this Agreement or any other agreements between
Debtor and Bank (or Borrower and Bank), whether now or hereafter existing,
including, without limitation, any note, any loan or security agreement, any
lease, any mortgage, any deed of trust, any pledge of an interest in real or
personal property, any guaranty, any letter of credit or banker’s acceptance,
and any other agreement for services, financial accommodations or credit
extended by Bank to Debtor and/or Borrower even though not specifically
enumerated herein (together and individually, the “Loan Documents”).

 

1.2  “Collateral”  means all
of the following property whether now owned or existing or hereafter acquired
by Debtor (or by Debtor with spouse): investment property (including any
securities entitlements and/or securities accounts held by Debtor); securities;
certificates of deposit; instruments; notes; deposit accounts; monies; any
other property in the possession of Bank or under the control of Bank
(including any property held by a securities intermediary; or held by third
parties as possessory agent for Bank) now or hereafter; letter of credit rights;
all general intangibles related thereto; all renewals thereof, substitutions
therefor; and all proceeds and supporting obligations thereof (such as stock
splits, interest, dividends, profits and monies).

 

ý If box is checked, a
further description of the Collateral continues on Exhibit A hereto.

 

1.3  “Obligations”  means
all Debtor’s and Borrower’s debts (except for consumer credit if Debtor or
Borrower is a natural person), liabilities, obligations, covenants, warranties
and duties to Bank (plus its affiliates including any credit card debt, but
specifically excluding any type of consumer credit), whether now or hereafter
existing or incurred, whether liquidated or unliquidated, whether absolute or
contingent, whether arising out of the Loan Documents or otherwise, and all
other debts and obligations due Bank under any lease, agricultural, real estate
or other financing transaction and regardless of whether such financing is
related in time or type to the financing provided at the time of grant of this
security interest, and regardless of whether such Obligations arise out of
existing or future credit granted by Bank to any Debtor, to any Borrower, to
any Debtor or any Borrower and others, to others guaranteed, endorsed or
otherwise secured by any Debtor or any Borrower, or to any debtor-in-possession
or other successor-in-interestof any Debtor or any Borrower and includes
principal, interest, fees, expenses and charges relating to any of the
foregoing.

 

1.4  Other Definitions.  Unless
otherwise defined, the terms set forth in this Agreement shall have the
meanings set forth in the Uniform Commercial Code as adopted in the Loan
Documents and as amended from time to time. 
The defined terms hereunder shall be interpreted in a manner most
favorable to Bank.

 

ARTICLE II - WARRANTIES AND COVENANTS

 

In addition to all other warranties, representations and covenants in
the Loan Documents which are expressly incorporated herein (except those
dealing solely with Borrower described in the Loan Documents, if Debtor and
Borrower are different entities) as part of this Agreement and while any part
of the credit granted Debtor or Borrower under the Loan Documents is available
or any Obligations of Debtor or Borrower to Bank are unpaid or outstanding,
Debtor continuously warrants and agrees as follows:

 

2.1  Debtor’s Name, Location; Notice of Location Changes.  Except as indicated in the Article 9
Certificate executed by Debtor and made a part hereof, Debtor’s name and
organizational structure have remained the same during the past five (5)
years.  Debtor will continue to use only
the name set forth with Debtor’s signature unless Debtor gives Bank prior
written notice of any change. 
Furthermore, Debtor shall not do business under another name nor use any
trade name without giving ten (10) days prior written notice to Bank.  Debtor will not change its status or
organizational structure without the prior written consent of Bank.  Debtor will not change its location or
registration (if Debtor is a registered organization) to another state without
prior written notice to Bank.  The
address appearing in the Article 9 Certificate is Debtor’s chief
executive office (or residence if Debtor is a sole proprietor).

 

2.2 
Accuracy of Information/Verification. 
All information, certificates and statements given to Bank
pursuant to this Agreement will be accurate and complete when given.  Also, Bank may verify Collateral in any
manner and Debtor shall assist Bank in so doing.

 

2.3  Organization and Authority.  The
execution, delivery and performance of this Agreement and the other Loan
Documents to which Debtor is a party: (i) are within Debtor’s power; (ii) have
been duly authorized by proper corporate, partnership or limited liability
company action (if applicable); (iii) do not require the approval of any
governmental agency, other entity or person; and (iv) will not violate any law,
agreement or restriction by which Debtor is bound.  This Agreement is the legal, valid and binding obligation of Debtor,
and is enforceable against Debtor in accordance with its terms.

 

1

 

2.4  Warranty of Title/Status of Collateral. 
The Collateral is genuine and Debtor has good title to the
Collateral.  The Collateral which
evidences or constitutes third-party payment obligations to Debtor is fully
enforceable in accordance with its terms, and not subject to dispute, setoff,
adverse claims, defense, or adjustment by such third party (including any
securities intermediary or issuer) except as permitted in writing by Bank.  Debtor will promptly provide Bank with
written notice of anything that would impair the ability of any third-party
obligor as to the Collateral from making payment to Debtor when due.  The Collateral is not subject to any
restrictions on transfer and/or disposition by Debtor or Bank.  Debtor acknowledges that the Collateral
constitutes “cash collateral” for purposes of 11 U.S.C. § 363.

 

2.5  Ownership; Maintenance of Collateral; Restriction on Liens and
Dispositions.  Debtor is the
sole owner of the Collateral free of all liens, claims, other encumbrances and
security interests except as permitted in writing by Bank.  Debtor will: (i) maintain the Collateral,
and not permit its value to be impaired; (ii) not permit waste, removal or loss
of identity of the Collateral; (iii) keep the Collateral free from all liens,
adverse claims, executions, attachments, claims, encumbrances and security
interests (other than Bank’s sole and paramount security interest and those
interests permitted in writing by Bank); (iv) defend the Collateral against all
claims and legal proceedings by persons other than Bank; (v) pay and discharge
when due all taxes, levies and other charges or fees which may be assessed
against the Collateral (except for payment of taxes contested by Debtor in good
faith by appropriate proceedings so long as no levy or lien has been imposed
upon the Collateral); (vi) not sell or transfer the Collateral to any party;
(vii) not permit the Collateral to be used or owned in violation of any
applicable law, regulation or policy of insurance; (viii) preserve Bank’s
rights and security interest in the Collateral against all other parties; and
(ix) not make any instructions or entitlement orders which are contrary to the
terms of this Agreement.  Debtor will promptly
deliver to Bank a copy of any notices, statements or communications received by
Debtor regarding the Collateral.

 

2.6  Maintenance of Security Interest. 
Debtor will take any action requested by Bank to preserve the
Collateral and to perfect, establish the priority of, continue perfection and
enforce Bank’s interest in the Collateral and Bank’s rights under this
Agreement (including the delivery of any stock or bond powers and endorsements
deemed necessary by Bank); and Debtor will pay all costs and expenses related
thereto.  Debtor shall also cooperate
with Bank in obtaining control (for purposes of perfection under the Uniform
Commercial Code) of Collateral consisting of deposit accounts, investment
property, letter of credit rights, electronic chattel paper and any other
collateral where Bank may obtain perfection through control.  Debtor hereby authorizes Bank to take any
and all actions described above and in place of Debtor with respect to the
Collateral and hereby ratifies any such actions Bank has taken prior to the
date of this Agreement and hereafter, which actions may include, without
limitation, filing UCC financing statements and obtaining or attempting to
obtain control agreements from holders of the Collateral.

 

2.7  Insurance.  Debtor will
be responsible for maintaining insurance on the Collateral covering such risks
and with such insurers as is usual and customary; and Bank will not be
responsible for insuring the Collateral.

 

2.8  Delivery of Collateral; Proceeds

 

(a) 
Except as permitted in writing by Bank, all proceeds of, substitutions
for and distributions regarding the Collateral received by Debtor will be held
by Debtor in express trust for Bank, will not be commingled with any other
funds or property of Debtor, and will be turned over to Bank in precisely the
form received (but endorsed by Debtor, if necessary) not later than the
business day following the day of their receipt by Debtor; and all proceeds of,
substitutions for and distributions relating to the Collateral will be held by
Bank as Collateral hereunder.

 

(b) 
Notwithstanding the provisions of 2.8(a) above and absent a default
hereunder, Debtor may retain all regularly scheduled and/or announced cash
dividends or distributions paid to Debtor regarding the Collateral.

 

(c) 
Debtor will immediately deliver in trust to Bank all original security
certificates, safekeeping receipts and all other evidence of ownership and /or
title to the Collateral (“Certificates”).  Furthermore, Debtor agrees to direct, in
writing, that all banks and entities holding or controlling any Certificates
promptly and directly transmit all such Certificates to Bank.

 

2.9  Possessory Agency Agreements; Control Agreements; Collateral in “Street
Name”.  Upon the request of
Bank, Debtor will promptly obtain from any entity holding or controlling any
Collateral or Certificates such documents as Bank deems necessary to evidence
its security interest in and exclusive possession of such Collateral and
Certificates, including, without limitation, an exclusive possessory agency
agreement or control agreement satisfactory to Bank; or as to any securities
account(s) or security entitlement(s), nominate Bank as sole entitlement holder
with respect thereto. Debtor agrees that Bank has control over all investment
property pledged by Debtor and directs any securities intermediary (including
Bank) and/or issuer to comply with any instructions or entitlement orders of
Bank as to the Collateral without further consent of Debtor.  In the event Bank also acts in the capacity
of a securities Intermediary with respect to the Collateral, this Agreement
shall give Bank “control” of the Collateral, as that term is defined in the
Uniform Commercial Code.  If any
Collateral is not registered in Debtor’s legal name, Debtor will furnish Bank
with satisfactory written proof of Debtor’s bonafide ownership of same.  Upon request of Bank, Debtor will have any
Collateral registered in Debtor’s legal name at Debtor’s expense.

 

2.10  Book-Entry Government Securities; U.S. Savings Bonds.  As to any item of Collateral constituting a
book-entry U.S. Government security held under the “treasury direct” system or
any U.S. savings bond, such items of Collateral will not be deemed acceptable
Collateral.

 

2.11  Tax Forms.  If
requested by Bank, Debtor will complete and deliver to Bank IRS Form W-9
(Payer’s Request for Taxpayer Identification Number), or any successor form
thereto, for each item of Collateral pledged to Bank and any other
informational tax filings required by federal and state taxing authorities with
regard to the Collateral.

 

2

 

2.12  Minimum Collateral Coverage; Acceptable Collateral.  At all times, Debtor will
maintain with Bank acceptable Collateral having a market value (as determined
by Bank) equal to N/A% of the then
outstanding principal amount of the Obligations (the “Minimum Collateral Coverage”).  In the event Debtor fails to maintain the Minimum Collateral
Coverage, Debtor will deliver to Bank additional acceptable Collateral
necessary to restore the Minimum Collateral Coverage upon five (5) business days
prior written notice from Bank, or Bank may declare Debtor in default
hereunder.

 

2.13 Regulation U Forms.  If any Collateral is “margin
stock” under Regulation U of the Federal Reserve Board, Debtor will deliver to
Bank a completed Form U-I satisfactory to Bank upon request.

 

2.14 Holding Periods.  If any of the Collateral
constituting a “security” under any federal securities laws (“Securities Collateral”) does not qualify
under SEC Rule 144[k] as being held for two (2) years in the hands of Bank at
any time, such Securities Collateral will not be deemed to qualify as
acceptable Collateral hereunder unless agreed to in writing by Bank (and Bank
may require Debtor to provide Bank with Securities Collateral which will meet
such qualifications under SEC Rule 144[k]). 
Debtor will promptly furnish to Bank such information as Bank deems
necessary to comply with federal and/or state securities laws as to the holding
and disposition of any Collateral, and to determine the status of the
Collateral under federal and/or state securities laws (including, without
limitation, an opinion of counsel as to the status of the Collateral under
federal and state securities laws); all in form satisfactory to Bank and at
Debtor’s expense.

 

ARTICLE III - RIGHTS AND DUTIES OF BANK

 

In addition to all other rights (including setoff) of Bank under the
Loan Documents which are expressly incorporated herein as a part of this
Agreement, the following provisions will also apply:

 

3.1 Authority to Perform for
Debtor/Entitlement Holder.  To
facilitate Bank’s ability to preserve and dispose of the Collateral, Debtor
unconditionally appoints any officer of Bank as Debtor’s attorney-in-fact
(coupled with an interest and irrevocable while any Obligations remain unpaid)
to do any of the following upon default by Debtor hereunder (notwithstanding
any notice requirements or grace/cure periods under this or any other
agreements between Debtor and Bank): to file, endorse the name of Debtor on any
Collateral, financing statements, checks, drafts, money orders and insurance
claims or payments, and any documents needed to perfect, protect and/or realize
upon Bank’s interest in the Collateral; to nominate itself as entitlement
holder as to any or all of the Collateral; and to do all such other acts and
things necessary to carry out Debtor’s obligations under this Agreement and the
other Loan Documents.  All acts taken by
Bank pursuant to the above-described authority are hereby ratified and
approved, and Bank will not be liable to Debtor for any acts of commission or
omission, nor for any errors of judgment or mistakes in undertaking such
actions except for Bank’s willful misconduct. 
For good and valuable consideration, Debtor agrees not to assert any
claims against any third-party (including any issuer or any securities
intermediary) holding Collateral for complying with Bank’s requests hereunder,
and Debtor waives any claims against such third parties for actions taken at
the request of Bank.

 

3.2 Collateral Preservation.  Bank will use reasonable care as to any
Collateral in its physical possession but in determining such standard of
reasonable care, Debtor expressly acknowledges that Bank has no duty to: (i)
insure the Collateral against hazards; (ii) protect the Collateral from
seizure, levy, lien, claim or conversion by third parties, or acts of God;
(iii) give to Debtor any notices, account statements, proxies or communications
received by Bank regarding the Collateral; (iv) perfect or continue perfection
of any security interest in the Collateral in favor of Debtor; (v) inform
Debtor of any decline in the value of the Collateral or the existence of any
option or elections with respect to the Collateral; (vi) take any action to
invest or manage the Collateral; (vii) exercise, preserve or notify Debtor with
respect to any exchanges, puts, calls, redemptions, conversions, maturities,
offers, tenders and other rights or requirements regarding the Collateral or
Debtor’s interest therein; or (viii) sue or otherwise take action to preserve
Debtor’s or Bank’s interest in the Collateral. 
Notwithstanding any failure by Bank to use reasonable care in preserving
the Collateral, Debtor agrees that Bank will not be liable to Debtor for
consequential or special damages arising from such failure.  The foregoing also apply if Bank is deemed
entitlement holder as to any Collateral.

 

3.3 Setoff.  As additional security for the payment of the
Obligations, Debtor hereby grants to Bank a security interest in, a lien on and
an express contractual right to set off against all depository account
balances, cash and any other property of Debtor now or hereafter in the
possession of Bank and the right to refuse to allow withdrawals from any
account (collectively “Setoff”).  Bank may, at any time upon the occurrence of
a default hereunder (notwithstanding any notice requirements or grace/cure
periods under this or other agreements between Debtor or Borrower and Bank),
Setoff against the Obligations whether or not
the Obligations (including future installments) are then due or have been accelerated,
all without any advance or contemporaneous notice or demand of any kind to
Debtor, such notice and demand being expressly waived.

 

ARTICLE IV - DEFAULTS AND REMEDIES

 

4.1  Defaults.  Notwithstanding any
cure periods described below, Debtor will immediately notify Bank in writing
when Debtor obtains knowledge of the occurrence of any default specified in
this Agreement or any of the other Loan Documents.  A default shall occur hereunder if Debtor
and/or Borrower fails to comply with the terms of any Loan Documents (including
this Agreement or any guaranty by Debtor), a demand for payment is made under a
demand loan, or any other obligor fails to comply with the terms of any Loan
Documents for which Debtor has given Bank a guaranty or pledge.

 

4.2  Termination of Loans; Additional Bank Rights. Upon the
occurrence of any of the events identified in Section 4.1, Bank may at any
time (notwithstanding any notice requirements or grace/cure periods under this
or other agreements between Debtor or Borrower and Bank): (i) immediately
terminate its obligation, if any, to make additional loans to Debtor and/or
Borrower; (ii) Setoff; and/or (iii) take

 

3

 

such other steps to protect or preserve Bank’s interest in the
Collateral; all without demand or further notice of any kind, all of which are
hereby waived.  In addition to Bank’s
other rights, Debtor irrevocably appoints Bank as attorney-in-fact, with full
power of substitution and revocation, to exercise Debtor’s rights to take any
action respecting the Collateral or with regard to any issuer or transfer agent
of the Collateral thereof as fully as Debtor might do.  This proxy remains effective so long as any
of the Obligations are unpaid.

 

4.3  Acceleration of Obligations. 
Upon the occurrence of an event of default as provided in
Section 4.1 above and the passage of any applicable cure periods, Bank may
at any time thereafter, by written notice to Debtor, declare the unpaid
principal balance of any Obligations, together with the interest accrued
thereon and other amounts accrued hereunder and under the other Loan Documents,
to be immediately due and payable; and the unpaid balance will thereupon be due
and payable, all without presentation, demand, protest or further notice of any
kind, all of which are hereby waived, and notwithstanding anything to the
contrary contained herein or in any of the other Loan Documents.  Notwithstanding the above, to the extent any
of the Obligations referred to herein are payable upon demand, nothing herein
will restrict nor negate the demand nature of such Obligations.  Nothing
contained in Article IV will limit Bank’s right to Setoff as provided in
Sections 3.3 and 4.2.

 

4.4  Remedies.  After
maturity of any of the Obligations, or a default hereunder or under any of the
other Loan Documents, and without notice or demand of any kind, Bank may: (i)
transfer any of the Collateral into its name or that of its nominee, or deem
itself to be entitlement holder as to any Collateral without notice to or
consent of Debtor; (ii) in Debtor’s name or otherwise dispose of and/or collect
any Collateral by suit or otherwise; or surrender or exchange all or any part
of the Collateral; or compromise, extend, renew or modify any obligation
evidenced by the Collateral; (iii) exercise all of Debtor’s rights as an
entitlement holder and/or owner of the Collateral; (iv) dispose of the
Collateral as provided for herein and at law; and (v) notify any issuer,
transfer agent or securities intermediary, or holder of any Collateral or
Certificates of this pledge of the Collateral, and direct such issuer, transfer
agent or securities intermediary to comply with all instructions and
entitlement orders originated by Bank without further consent of Debtor, and/or
deliver directly in trust to Bank any Collateral, Certificates and subsequent
shares of stock, dividend payments or other distributions pertaining to the
Collateral or arising from Debtor’s ownership of the Collateral; and in each
case Debtor hereby unconditionally directs such parties to comply with Bank’s requests
in all respects.

 

4.5  Cumulative Remedies; Notice; Waiver. In addition to the
remedies set forth herein, Bank will have all other rights and remedies for
default provided by the Uniform Commercial Code, as well as any other
applicable law, INCLUDING, WITHOUT LIMITATION, THE RIGHT TO REPOSSESS AND
DISPOSE OF THE COLLATERAL WITHOUT JUDICIAL PROCESS.  The rights and remedies specified herein are cumulative and are
not exclusive of any rights or remedies which Bank would otherwise have.  With respect to such rights and remedies:

 

(a)  Notice of Disposition. Written notice, when
required by law, sent to any address of Debtor in this Agreement or otherwise
provided to Bank, at least five (5) calendar days (counting the day of sending)
before the date of a proposed disposition of the Collateral will be deemed
reasonable notice but less notice may be reasonable under the circumstances;

 

(b)  Possession of Collateral/Commercial Reasonableness.  Bank shall not, at any time, be obligated to
either take or retain possession or control of the Collateral.  With respect to Collateral in the possession
or control of Bank, Debtor and Bank agree that as a standard for determining
commercial reasonableness, (and in addition to the provisions of
Section 3.2 above) Bank need not liquidate, collect, sell or otherwise
dispose of any of the Collateral if Bank believes, in good faith, that
disposition of the Collateral would not be commercially reasonable, would
subject Bank to third-party claims or liability, would cause Bank to violate
federal or state securities laws, that other potential purchasers could be
attracted or that a better price could be obtained if Bank held the Collateral
for up to 2 years.  Bank may sell
Collateral without giving any warranties and may specifically disclaim any
warranties of title or the like. 
Furthermore, Bank may sell the Collateral on credit (and reduce the
Obligations only when payment is received from the buyer), at wholesale and/or
with or without an agent or broker; Bank need not register any securities
collateral under state or federal law; and Bank need not complete, process, or
otherwise prepare the Collateral prior to disposition.  If the purchaser fails to pay for the
Collateral, Bank may resell the Collateral and Debtor shall be credited with
the cash proceeds of the sale.  Bank may
comply with any applicable state or federal law requirements in connection with
a disposition of the Collateral and compliance will not be considered to
adversely affect the commercial reasonableness of any sale of the Collateral.

 

(c)  Waiver by Debtor.  Bank has no obligation and Debtor waives any obligation to
attempt to satisfy the Obligations by collecting the obligations from any third
parties and Bank may release, modify or waive any collateral provided by any
third party to secure any of the Obligations, all without affecting Bank’s
rights against Debtor.  Debtor further
waives any obligation on the part of Bank to marshal any assets in favor of
Debtor or in payment of the Obligations. 
Notwithstanding any provisions in this Agreement or any other agreement
between Debtor and Bank, Debtor does not waive any statutory rights except to
the extent that the waiver thereof is permitted by law.

 

(d)  Waiver by Bank.  Bank may permit Debtor to attempt to remedy any default without
waiving its rights and remedies hereunder, and Bank may waive any default
without waiving any other subsequent or prior default by Debtor.  Furthermore, delay on the part of Bank in
exercising any right, power or privilege hereunder or at law will not operate
as a waiver thereof, nor will any single or partial exercise of such right,
power or privilege preclude other exercise thereof or the exercise of any other
right, power or privilege.  No waiver or suspension will be deemed to have
occurred unless Bank has expressly agreed in writing to such waiver or
suspension.

 

ARTICLE V - MISCELLANEOUS

 

5.1  Relationship to Other Documents.  The warranties, representations, covenants and duties of Debtor
(and the rights and remedies of Bank) that are outlined in this Agreement and
the other Loan Documents are intended to supplement each other.  In the

 

4

 

event of any inconsistencies between the terms in the Loan Documents
and this Agreement, all such inconsistencies will be construed so as to give
Bank the most favorable rights. 
Furthermore, Debtor and Bank waive any presumption or rule requiring
construction of this Agreement against the drafter.

 

5.2  Notices.  Notice of any
record shall be deemed delivered when the record has been (a) deposited in the
United States Mail, postage pre-paid, (b) received by overnight delivery
service, (c) received by telex, (d) received by telecopy, (e) received through
the internet, or (f) when personally delivered.

 

5.3  Nature of Liability/Successors.  The rights, powers and remedies granted in this Agreement to Bank
will extend to Bank’s successors, Participants (as defined below) and assigns,
and the provisions of this Agreement will be binding upon Debtor and its
successors and assigns.  All Debtors are
jointly and severally liable under this Agreement.

 

5.4  Expenses and Attorneys’ Fees. 
Debtor will reimburse Bank and any participant in the Loan Documents
(the “Participant)’ for all fees
and out-of-pocket disbursements incurred by Bank and any Participant in
connection with: preparation of this Agreement; perfecting, establishing and
confirming the priority of Bank’s security interest in the Collateral; any
confirmations, audits or appraisals of Debtor’s business operations and the
Collateral; the amendment, administration, defense and enforcement of this
Agreement or of any of the other Loan Documents, and any waivers with respect
thereto.  Debtor also will reimburse
Bank and any Participant for all costs of collection, including all attorneys’
fees, before and after judgment, and all costs of preservation and/or
liquidation of the Collateral.

 

5.5  Applicable Law and Jurisdiction; Interpretation and Modification.  This Agreement and all other Loan Documents
will be governed by and interpreted in accordance with the laws of the State of
OREGON.  Invalidity of any provision of
this Agreement will not affect the validity of any other provision.  The provisions of this Agreement and the
other Loan Documents will not be altered, amended or waived without the express
written consent of Bank (and Debtor, when appropriate).  DEBTOR HEREBY CONSENTS TO THE EXCLUSIVE
JURISDICTION OF ANY STATE OR FEDERAL COURT SITUATED IN THE COUNTY OR FEDERAL
JURISDICTION OF BANK’S BRANCH WHERE THE LOAN WAS ORIGINATED, AND WAIVES ANY
OBJECTION BASED ON FORUM NON CONVENIENS, WITH REGARD TO ANY ACTIONS,
CLAIMS, DISPUTES OR PROCEEDINGS RELATING TO THIS AGREEMENT, THE COLLATERAL, ANY
OTHER LOAN DOCUMENT, OR ANY TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT
AND/OR INTERPRETATION OF ANY OF THE FOREGOING. 
Nothing herein will affect Bank’s rights to serve process in any manner
permitted by law, or limit Bank’s right to bring proceedings against Debtor in
the competent courts of any other jurisdiction or jurisdictions.  This Agreement and any amendments hereto
(regardless of when executed) will be deemed effective and accepted only at
Bank’s main office, and only upon Bank’s receipt of the executed originals
thereof.

 

5.6  Copies; Entire Agreement; Modification.  Debtor hereby acknowledges the receipt of a
copy of this Agreement and the other Loan Documents.

 

IMPORTANT: READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ
CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING, EXPRESSING CONSIDERATION AND
SIGNED BY THE PARTIES ARE ENFORCEABLE. 
NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT
MAY BE LEGALLY ENFORCED.  DEBTOR AND
BANK MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN
AGREEMENT.  THIS NOTICE WILL ALSO BE
EFFECTIVE WITH RESPECT TO ALL OTHER LOAN DOCUMENTS NOW IN EFFECT BETWEEN DEBTOR
AND/OR BORROWER AND BANK.  A
MODIFICATION OF ANY OTHER LOAN DOCUMENTS NOW IN EFFECT BETWEEN DEBTOR AND/OR
BORROWER AND BANK, WHICH OCCURS AFTER RECEIPT BY DEBTOR OF THIS NOTICE, MAY BE
MADE ONLY BY ANOTHER WRITTEN INSTRUMENT. 
ORAL OR IMPLIED MODIFICATIONS TO SUCH LOAN DOCUMENTS ARE NOT ENFORCEABLE
AND SHOULD NOT BE RELIED UPON.

 

5.7  Waiver of Jury Trial.  DEBTOR AND
BANK HEREBY JOINTLY AND SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY ACTION OR PROCEEDING RELATING TO ANY OF THE LOAN DOCUMENTS, THIS AGREEMENT,
THE OBLIGATIONS THEREUNDER, THE COLLATERAL OR ANY TRANSACTION ARISING THEREFROM
OR CONNECTED THERETO.  DEBTOR AND BANK
EACH REPRESENTS TO THE OTHER THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY
GIVEN.

 

5.8  Attachments.  All documents
attached hereto, including any appendices, schedules, riders, and exhibits to
this Agreement, are hereby expressly incorporated by reference.

 

 

[SIGNATURE(S) ON NEXT PAGE]

 

5

 

IN WITNESS WHEREOF, the undersigned has/have executed this Collateral
Pledge Agreement as of NOVEMBER 25, 2003.

 

	
   

  	
   

  	
  BIOJECT INC.

  
	
  (INDIVIDUAL DEBTOR)

  	
   

  	
  Debtor Name (Organization)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Seal)

  	
  a 

  	
  OREGON Corporation

  
	
   

  	
   

  	
   

  
	
  Debtor Name

  	
  N/A

  	
   

  	
  By

  	
  /s/ Michael A. Temple

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name and Title

  	
  MICHAEL A. TEMPLE, EXECUTIVE VICE PRESIDENT

  
	
   

  	
  (Seal)

  	
   

  
	
   

  	
   

  	
  By

  	
   

  
	
  Debtor Name

  	
  N/A

  	
   

  	
   

  
	
   

  	
   

  	
  Name and Title

  	
   

  
								

 

6

 

EXHIBIT A

 

DATED: 
NOVEMBER 25, 2003

 

	
  Description of Collateral

  (CDs, Notes, Bonds, etc.)

  	
   

  	
  Identification No./Renewal-Expiry Date

  
	
   

  	
   

  	
   

  
	
  U.S. BANK N.A. MONEY CENTER

  	
   

  	
  ACCOUNT  # 436000047

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Attach copy of each certificate, safekeeping
receipt, bond, stock certificate, etc., identified above.

 

 

LIMITED RECOURSE AGREEMENT

(Must be accompanied by Business Security
Agreement,

Collateral Pledge Agreement or Mortgage/Deed
of Trust)

 

1.  Pledge of Collateral. 
For value received,  and to
induce U.S. BANK N.A. (the “Bank”)
to extend credit or other financial accommodations now or in the future to
BIOJECT MEDICAL TECHNOLOGIES INC. (the “Borrower”),
the undersigned (the “Pledgor”)
hereby unconditionally jointly and severally pledges the collateral described
below to secure payment of the Obligations (as hereinafter defined).  Notwithstanding the provisions of any
separate security agreement or mortgage/deed of trust, the Bank may immediately
exercise its rights to realize upon the Collateral (as hereinafter defined)
whenever the Obligations become due, whether on demand, at maturity, by reason
of acceleration or if the Pledgor becomes the subject of any bankruptcy or
insolvency proceeding, and whether or not the Obligations are valid and
enforceable against the Borrower.

 

As used herein, the term “Obligations”
shall mean all loans, drafts, overdrafts, checks, notes and all other debts,
liabilities and obligations of every kind owing by the Borrower to the Bank,
whether direct or indirect, absolute or contingent, liquidated or unliquidated
whether of the same or a different nature and whether existing now or in the
future, including interest thereon; and all costs, expenses and attorneys’ fees
paid or incurred by the Bank at any time before or after judgment in attempting
to collect any of the foregoing, to realize on any collateral securing any of
the foregoing or this Agreement, and to enforce this Agreement, whether such
costs, expenses or fees are incurred before or after commencement of litigation
or at trial, on appeal, or in any other proceeding.  The definition of “Obligations” also includes the amount of any
payments made to the Bank or another on behalf of the Borrower (including
payments resulting from liquidation of collateral) which are recovered from the
Bank by a trustee, receiver, creditor or other party pursuant to applicable
Federal or state law (the “Surrendered
Payments”).  In the event
that the Bank makes any Surrendered Payments (including pursuant to a
negotiated settlement), the Surrendered Payments shall immediately be
reinstated as Obligations, regardless of whether the Bank has surrendered or
canceled this Agreement prior to returning the Surrendered Payments.

 

2.  Collateral Pledged.  To
secure prompt payment of the Obligations, the Pledgor hereby grants the Bank a
mortgage/deed of trust and security interest in the real estate, personal
property and other collateral (the “Collateral”)
described in the collateral documents executed by the Pledgor in favor of the
Bank whether presently existing or executed in the future, including but not
limited to the following documents [check all
that apply]:o
Security Agreement ý Collateral
Pledge Agreement  o
Mortgage/Deed of Trust o Other
                          (the
“Collateral Documents”).

 

3.  No Personal Liability.  The
Pledgor has no personal liability under this Agreement, except as outlined in
this paragraph.  In the event that the
Bank is entitled to proceed against the Pledgor under the terms of this
Agreement, the Bank’s sole recourse shall be against the Collateral, except to
the extent that the Bank suffers a loss or damage as a result of the willful
misconduct of the Pledgor, or the Pledgor’s failure to comply with the terms of
this Agreement or any Collateral Documents (collectively “Misconduct”).

 

4.  Consent to Bank Actions; No Discharge; Financial Condition.  The Pledgor agrees that the Bank
does not have to take any steps whatsoever to proceed against the Borrower or
any other pledgor, guarantor, surety or other collateral for the Obligations
either before or after proceeding against the Pledgor’s Collateral; and the
Pledgor waives any claim of marshalling of assets against the Bank or any
Collateral.  The Pledgor also agrees that the Bank may do or refrain from doing any of
the following without notice to, or the consent of, the Pledgor, without
reducing or discharging the Pledgor’s liability under this Agreement:  (i) renew, amend, extend, waive
or release any Obligations and/or any documents related thereto, and make
additional extensions of credit to the Borrower; (ii) settle, modify, release,
compromise or subordinate any Obligation, any collateral securing any Obligation
or this Agreement; (iii) apply payments on the Obligations in any manner that
the Bank elects; (iv) fail or delay in perfecting (or to continue perfection
of) any security interest, mortgage/deed of trust or other lien on any
collateral securing the Obligations or this Agreement,  or to fail to protect the value or condition
of any such collateral; or (v) fail to advise the Pledgor of the Borrower’s
financial condition (the Pledgor specifically acknowledging that the Pledgor
has examined the Borrower’s books and financial condition to the extent Pledgor
deems necessary and that the Pledgor has not relied upon nor will rely upon
representations, if any, by the Bank as to the Borrower’s financial condition).

 

5.  Waivers.  The Pledgor
expressly waives all rights of setoff and counterclaims, as well as diligence
in collection or prosecution, presentment, demand of payment or performance,
protest, notice of dishonor, nonpayment or nonperformance of any
Obligation.  The Pledgor also expressly
waives notice of acceptance of this Agreement, and the right to receive all
other notices and demands of any kind relating to the Obligations or this
Agreement.  The Pledgor agrees that any
right of subrogation as to payment or enforcement of any security interest
securing the Obligations should not be enforceable by any Pledgor until the
Bank is paid in full.

 

1

 

6.  Duration of Agreement; Revocation; Continuing Obligations.  This is a continuing pledge and shall not be
revoked by death, dissolution, merger, bankruptcy, incompetency or insolvency
of the Pledgor.  This Agreement shall
remain in full force and effect with respect to the Pledgor until the Bank
receives written notice from the Pledgor revoking this Agreement as to the Pledgor.  In the event that this Agreement is revoked
by the Pledgor, said revocation shall have no effect on the continuing pledge
of the Collateral to secure unconditionally the prompt payment of all
Obligations which are contracted or incurred before the revocation becomes
effective, including such prior Obligations which are subsequently renewed,
modified or extended after the revocation becomes effective, as well as all
extensions of credit made after revocation pursuant to commitments made prior
to such revocation.

 

7.  Acceleration of Obligations; Successors; Multiple Pledgors.  If the Pledgor shall die, become the subject
of any incompetency proceedings, become the subject of any bankruptcy or
insolvency proceedings, or fail to comply with the terms of this Agreement, the
Collateral Documents, or any related document, the Bank shall have the
immediate right to liquidate the Collateral to pay the Obligations whether or
not the Obligations are then due and payable by the Borrower or any other third
party.  This Agreement shall inure to
the benefit of the Bank, its successors and assigns and of the holder and owner
of any of the Obligations, and shall be binding on heirs, executors,
administrators, successors and assigns of the Pledgor.  If there is more than one Pledgor, the
liability of the Pledgors shall be joint and several, and the reference to the
“Pledgor” shall be deemed to refer to all Pledgors.

 

8.  Copies; Entire Agreement; Modification.  The Pledgor hereby acknowledges the receipt
of a copy of this Agreement.

 

IMPORTANT: READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ
CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING, EXPRESSING CONSIDERATION AND
SIGNED BY THE PARTIES ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT
CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.  THE TERMS OF THIS AGREEMENT MAY ONLY BE
CHANGED BY ANOTHER WRITTEN AGREEMENT.

 

9.  Governing Law; Jurisdiction. This Agreement shall be governed
by the laws of the State of OREGON, except to the extent superseded by Federal
law. THE PLEDGOR HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR
FEDERAL COURT SITUATED IN THE COUNTY OR FEDERAL JURISDICTION OF THE BANK’S
BRANCH WHERE THE LOAN WAS ORIGINATED, AND WAIVES ANY OBJECTION BASED ON FORUM
NON CONVENIENS, WITH REGARD TO ANY ACTIONS, CLAIMS, DISPUTES, OR
PROCEEDINGS RELATING TO THIS AGREEMENT, THE COLLATERAL, ANY RELATED DOCUMENT,
OR ANY TRANSACTIONS ARISING THEREFROM, OR ENFORCEMENT AND/OR INTERPRETATION OF
ANY OF THE FOREGOING. Nothing herein shall affect the Bank’s right to serve
process in any manner permitted by law, or limit the Bank’s right to bring
proceedings against the Pledgor in the competent courts of any other
jurisdiction or jurisdictions.

 

10.  Waiver of Jury Trial.  THE PLEDGOR
AND THE BANK HEREBY JOINTLY AND SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT, ALL DOCUMENTS
RELATING TO THIS AGREEMENT, THE OBLIGATIONS HEREUNDER OR ANY TRANSACTION
ARISING HEREFROM OR CONNECTED HERETO. 
THE PLEDGOR AND THE BANK EACH REPRESENTS TO THE OTHER THAT THIS WAIVER
IS KNOWINGLY, WILLINGLY AND VOLUNTARILY GIVEN.

 

	
  Dated:

  	
    NOVEMBER 25, 2003

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BIOJECT INC.

  
	
   

  	
   

  	
  Pledgor Name (Corporation or Partnership)

  
	
  (Individual Pledgor)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (SEAL)

  	
  a

  	
  OREGON Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
  Pledgor Name

  	
  N/A

  	
   

  	
  By

  	
  /s/ Michael A. Temple

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (SEAL)

  	
  Name and Title

  	
  MICHAEL A. TEMPLE, EXECUTIVE VICE PRESIDENT

  
	
   

  	
   

  	
   

  	
   

  
	
  Pledgor Name

  	
  N/A

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name and Title

  	
   

  
										

 

2Exhibit 10.31.1

 

 

Commercial Banking

111 SW Fifth Avenue

Suite 400

Portland, OR 97204

 

 

February 13,
2004

 

 

Bioject Medical Technologies, Inc.

Attn: Chris Farrell

7620 SW Bridgeport Rd.

Portland, OR 97224

 

Dear Chris,

 

Per your request, the following description outlines Bioject Medical
Technologies Inc.’s credit facility with U.S. Bank, N.A.

 

As executed on December 2, 2003, Bioject’s credit facility is a
$1,500,000.00 non-revolving commitment, which has a 6-month interest only
drawdown period (period expires on May 31, 2004), after which the facility
coverts to a term loan.  At the time of
conversion, the term loan with have a 60 month maturity and 60 month amortization
with a fixed rate to be locked on or before May 31, 2004.  The rate will be locked at US Bank’s “60
month maturity/60 month amortization” cost of funds, plus 2.25%, and principal
and interest will then be due on a monthly basis.  For the entire term of the loan, a pledged US Bank Certificate of
Deposit from Bioject, Inc. will be held as collateral.

 

As we discussed, Bioject Medical Technologies has some flexibility as
to when you wish to terminate the interest only period of your credit
facility.  Seeing as how the full amount
of your availability has been advanced, US Bank can begin the term-out portion
of the note at any time, with the conversion not to occur after May 31, 2004.

 

If you have any questions, please feel free to give us a call at any time.

 

 

Sincerely,

 

 

	
  /s/ Elizabeth Jones

  	
   

  	
  /s/ Mark Stuart

  	
   

  
	
  Elizabeth Jones

  	
  Mark Stuart

  
	
  Relationship Manager

  	
  Vice President

  
	
  503-275-4282

  	
  503-275-5268

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