Document:

ex4-2

 

EXHIBIT 4.2

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
STATE LAWS, AND NO INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED,
OFFERED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS
COVERING ANY SUCH TRANSACTION OR SUCH TRANSACTION IS EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF SUCH ACT AND LAWS.

SERIES “Y” COMMON STOCK PURCHASE WARRANT

Bioject Medical Technologies Inc.

     THIS CERTIFIES that for good and valuable consideration received, Leerink
Swann & Company, or registered assigns, is entitled, upon the terms and subject
to the conditions hereinafter set forth, to acquire from Bioject Medical
Technologies Inc., an Oregon corporation (the “Corporation”) up to 17,500 fully
paid and nonassessable shares of common stock, without par value, of the
Corporation (“Warrant Stock”) at a purchase price per share (the “Exercise
Price”) of $12.10.

	1.	  	Term of Warrant

     Subject to the terms and conditions set forth herein, this Warrant shall
be exercisable, in whole or from time to time part, at any time on or after the
date hereof and at or prior to 11:59 p.m., Pacific Standard Time, on December 19,
2006 (the “Expiration Time”).

	2.	  	Exercise of Warrant

     The purchase rights represented by this Warrant are exercisable by the
registered holder hereof, in whole or in part, at any time and from time to
time at or prior to the Expiration Time by the surrender of this Warrant and
the Notice of Exercise form attached hereto duly executed to the office of the
Corporation at 7620 S.W. Bridgeport Road, Portland, Oregon 97224 (or such
other office or agency of the Corporation as it may designate by notice in
writing to the registered holder hereof at the address of such holder appearing
on the books of the Corporation), and upon payment of the Exercise Price for
the shares thereby purchased (by cash or by check or bank draft payable to the
order of the Corporation or by cancellation of indebtedness of the Corporation
to the holder hereof, if any, at the time of exercise in an amount equal to the
purchase price of the shares thereby purchased); whereupon the holder of this
Warrant shall be entitled to receive from the Corporation a stock certificate
in proper form representing the number of shares of Warrant Stock so purchased.

	3.	  	Issuance of Shares; No Fractional Shares of Scrip

     Certificates for shares purchased hereunder shall be delivered to the
holder hereof by the Corporation’s transfer agent at the Corporation’s expense
as promptly as practicable, but in any event within five (5) business days,
after the date on which this Warrant shall have been exercised in accordance
with the terms hereof. Each certificate so delivered shall be in such
denominations as may be requested by the holder hereof and shall be registered
in the name of such holder or, subject to applicable laws, other name as shall
be requested by such holder. If, upon exercise of this Warrant, fewer than all
of the shares of Warrant Stock evidenced by this Warrant are purchased prior to
the Expiration Time, one or more new warrants substantially in the form of, and
on the terms in, this Warrant will be issued for the remaining number of shares
of Warrant Stock not purchased upon exercise of this Warrant. The Corporation
hereby represents and warrants that all shares of Warrant Stock which may be
issued upon the exercise of this Warrant will, upon such exercise, be duly and
validly authorized and issued, fully paid and nonassessable and free from all
taxes, liens and charges in respect of the issuance thereof (other than liens
or charges created by or imposed upon the holder of the Warrant Stock). The
Corporation agrees that the shares so

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issued shall be and be
deemed to be issued to such holder as the record owner of such shares as of the
close of business on the date on which this Warrant shall have been surrendered
for exercise in accordance with the terms hereof. 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.

	4.	  	Charges, Taxes and Expenses

     Issuance of certificates for shares of Warrant Stock 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 Corporation,
and such certificates shall be issued in the name of the holder of this Warrant
or in such name or names as may be directed by the holder of this Warrant;
provided, however, that in the event certificates for shares of Warrant Stock
are to be issued in a name other than the name of the holder of this Warrant,
this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the holder hereof.

	5.	  	No Rights as Shareholders

     This Warrant does not entitle the holder hereof to any voting rights or
other rights as a shareholder of the Corporation prior to the exercise hereof.
Notwithstanding the foregoing, if: (i) the Corporation shall declare a dividend
(or any other distribution) on its Common Stock; or (ii) the Corporation shall
declare a special nonrecurring cash dividend on or a redemption of its Common
Stock; or (iii) the Corporation shall authorize the granting to all holders of
the Common Stock rights or warrants to subscribe for or purchase any shares of
capital stock of any class or of any rights; or (iv) the approval of any
stockholders of the Corporation shall be required in connection with any
reclassification of the Common Stock, any consolidation or merger to which the
Corporation is a party, any sale or transfer of all or substantially all of the
assets of the Corporation, or any compulsory share exchange whereby the Common
Stock is converted into other securities, cash or property; or (v) the
Corporation shall authorize the voluntary dissolution, liquidation or winding
up of the affairs of the Corporation, then the Corporation shall cause to be
mailed to each Holder at their last addresses as they shall appear upon the
Warrant Register, at least 20 calendar days prior to the applicable record or
effective date hereinafter specified, a notice stating (x) the date on which a
record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or
share exchange is expected to become effective or close, and the date as of
which it is expected that holders of Common Stock of record shall be entitled
to exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer,
share exchange, dissolution, liquidation or winding up; provided,
however, that
the failure to mail such notice or any defect therein or in the mailing thereof
shall not affect the validity of the corporate action required to be specified
in such notice.

	6.	  	Registration Rights

     This Warrant is a Series “Y” Warrant identified in the Registration Rights
Agreement dated as of December 19, 2001 between the Corporation and the parties
listed on the signature pages thereto and is entitled to the benefits thereof.
A transferee of this Warrant may become a “Holder” as defined in such agreement
upon compliance with the requirements of such agreement.

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	7.	  	Exchange and Registry of Warrant

     This Warrant is exchangeable, upon the surrender hereof by the registered
holder at the above-mentioned office or agency of the Corporation, for a new
Warrant of like tenor and dated as of such exchange. The Corporation shall
maintain at the above-mentioned 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 Corporation, and the Corporation shall be
entitled to rely in all respects, prior to written notice to the contrary, upon
such registry.

	8.	  	Loss, Theft, Destruction or Mutilation of Warrant

     Upon receipt by the Corporation 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 Corporation of all reasonable expenses
incidental thereto, and upon surrender and cancellation of this Warrant, if
mutilated, the Corporation will make and deliver a new Warrant of like tenor
and dated as of such cancellation, in lieu of this Warrant.

	9.	  	Saturdays, Sundays and Holidays

     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 Saturday, Sunday or legal
holiday.

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	10.	  	Merger, Sale of Assets, Etc.

     If at any time the Corporation proposes to merge or consolidate with or
into any other corporation, effect any reorganization, or sell or convey all or
substantially all of its assets to any other entity, then, as a condition of
such reorganization, consolidation, merger, sale or conveyance, the Corporation
or its successor, as the case may be, shall enter into a supplemental agreement
to make lawful and adequate provision whereby the holder shall have the right
to receive, upon exercise of the Warrant, the kind and amount of equity
securities which would have been received upon such reorganization,
consolidation, merger, sale or conveyance by a holder of a number of shares of
common stock equal to the number of shares issuable upon exercise of the
Warrant immediately prior to such reorganization, consolidation, merger, sale
or conveyance. If the property to be received upon such reorganization,
consolidation, merger, sale or conveyance is not equity securities, the
Corporation shall give the holder of this Warrant twenty (20) business days
prior written notice of the proposed effective date and a brief statement of
the facts of such transaction (including the consideration to be paid), and if
this Warrant has not been exercised by or on the effective date of such
transaction, it shall terminate.

	11.	  	Subdivision, Combination, Reclassification, Conversion, Etc.

     If the Corporation at any time shall pay a stock dividend or otherwise
make a distribution on shares of its common stock or on any other class of
capital stock payable in shares of its common stock (any such event hereafter
referred to as a “common stock distribution”), or by subdivision, combination,
reclassification of securities or otherwise, change the Warrant Stock into the
same or a different number of securities of any class or classes, this Warrant
shall thereafter entitle the holder to acquire such number and kind of
securities as would have been issuable in respect of the Warrant Stock (or
other securities which were subject to the purchase rights under this Warrant
immediately prior to such common stock distribution, subdivision, combination,
reclassification or other change) as the result of such change if this Warrant
had been exercised in full for cash immediately prior to such change. The
Exercise Price hereunder shall be adjusted if and to the extent necessary to
reflect such change. If the Warrant Stock or other securities issuable upon
exercise hereof are subdivided or combined into a greater or smaller number of
shares of such security, the number of shares issuable hereunder shall be
proportionately increased or decreased, as the case may be, and the Exercise
Price shall be proportionately reduced or increased, as the case may be, in
both cases according to the ratio which the total number of shares of such
security to be outstanding immediately after such event bears to the total
number of shares of such security outstanding immediately prior to such event.
The Corporation shall give the holder prompt written notice of any change in
the type of securities issuable hereunder, any adjustment of the Exercise Price
for the securities issuable hereunder, and any increase or decrease in the
number of shares issuable hereunder.

	12.	  	Transferability; Compliance with Securities Laws

     (a)  This Warrant may not be transferred or assigned in whole or in part
without compliance with all applicable federal and state securities laws by the
transferor and transferee (including the delivery of investment representation
letters and legal opinions reasonably satisfactory to the Corporation, if
requested by the Corporation). Subject to such restrictions, prior to the
Expiration Time, this Warrant and all rights hereunder are transferable by the
holder hereof, in whole or in part, at the office or agency of the Corporation
referred to in Section 1 hereof. Any such transfer shall be made in person or
by the holder’s duly authorized attorney, upon surrender of this Warrant
together with the Assignment Form attached hereto properly endorsed.

     (b)  The Holder of this Warrant, by acceptance hereof, acknowledges that
this Warrant and the Warrant Stock issuable upon exercise hereof are being
acquired solely for the holder’s own account and not as a nominee for any other
party, and for investment, and that the holder will not offer, sell or
otherwise dispose of this Warrant or any shares of Warrant Stock to be issued
upon exercise hereof except under circumstances that will not result in a
violation of the Securities Act of 1933, as amended, or any state securities
laws. Upon exercise of this Warrant, the holder shall, if requested by the
Corporation, confirm in writing, in a form satisfactory to the Corporation,
that the shares of Warrant Stock so purchased are being acquired solely for
holder’s own account and not as a nominee for any other party, for investment,
and not with a view toward distribution or resale except under circumstances
that will not result in a violation of the Securities Act of 1933, as amended,
or any state securities laws.

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     (c)  The Warrant Stock has not been registered under the Securities Act of
1933, as amended, and this Warrant may not be exercised except by (i) the
original purchaser of this Warrant from the Corporation or (ii) an “accredited
investor” as defined in Rule 501(a) under the Securities Act of 1933, as
amended. If then required by applicable securities laws, each certificate
representing the Warrant Stock or other securities issued in respect of the
Warrant Stock upon any stock split, stock dividend, recapitalization, merger,
consolidation or similar event, shall be stamped or otherwise imprinted with a
legend substantially in the following form (in addition to any legend required
under applicable securities laws):

     THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER UNITED
STATES FEDERAL OR STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD
OR OTHERWISE TRANSFERRED OR ASSIGNED FOR VALUE, DIRECTLY OR INDIRECTLY, NOR MAY
THE SECURITIES BE TRANSFERRED ON THE BOOKS OF THE CORPORATION, WITHOUT
REGISTRATION OF SUCH SECURITIES UNDER ALL APPLICABLE UNITED STATES FEDERAL OR
STATE SECURITIES LAWS OR COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM.

	13.	  	Representations and Warranties

     The Corporation hereby represents and warrants to the holder hereof that:

     (a)  during the period this Warrant is outstanding, the Corporation will
reserve from its authorized and unissued common stock a sufficient number of
shares to provide for the issuance of Warrant Stock upon the exercise of this
Warrant;

     (b)  the issuance of this Warrant shall constitute full authority to the
Corporation’s officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for the shares of
Warrant Stock issuable upon exercise of this Warrant;

     (c)  the Corporation has all requisite legal and corporate power to execute
and deliver this Warrant, to sell and issue the Warrant Stock hereunder, to
issue the common stock issuable upon exercise of the Warrant Stock and to carry
out and perform its obligations under the terms of this Warrant;

     (d)  all corporate action on the part of the Corporation, its directors and
shareholders necessary for the authorization, execution, delivery and
performance of this Warrant by the Corporation, the authorization, sale,
issuance and delivery of the Warrant Stock, the grant of registration rights as
provided herein and the performance of the Corporation’s obligations hereunder
has been taken;

     (e)  the Warrant Stock, when issued in compliance with the provisions of
this Warrant, will be validly issued, fully paid and nonassessable, and free of
all taxes, liens or encumbrances with respect to the issue thereof, and will be
issued in compliance with all applicable federal and state securities laws; and

     (f)  the issuance of the Warrant Stock will not be subject to any
preemptive rights, rights of first refusal or similar rights.

	14.	  	Corporation

     The Corporation will not, by amendment of its Articles of Incorporation or
through any reorganization, recapitalization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or any other
action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed hereunder by the Corporation, but will at all
times in good faith assist in the carrying out of all the provisions of this
Warrant and in the taking of all such action as may be necessary or appropriate
in order to protect the rights of the holder of the Warrant against impairment.

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	15.	  	Governing Law

     This Warrant shall be governed by and construed in accordance with the
laws of the State of Oregon.

     IN WITNESS WHEREOF, the Corporation has caused this Warrant to be executed
by its duly authorized officers.

Dated: December 19, 2001

BIOJECT MEDICAL TECHNOLOGIES INC.

	 	   	 	 
	By:	 	 
	 	 	

	Name:	 	
Christine M. Farrell
	Title:	 	
Controller & Secretary

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NOTICE OF EXERCISE

To: Bioject Medical Technologies Inc.

     (1)  The undersigned hereby elects to purchase ________________ shares of common
stock of Bioject Medical Technologies 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 payable by the undersigned pursuant
to the Warrant, if any.

     (2)  In exercising this Warrant, the undersigned hereby confirms and
acknowledges that the shares of common stock to be issued upon exercise hereof
are being acquired solely for the account of the undersigned and not as a
nominee for any other party, and for investment, and that the undersigned will
not offer, sell or otherwise dispose of any such shares of common stock except
under circumstances that will not result in a violation of the Securities Act
of 1933, as amended, or any state securities laws.

     (3)  Please issue a certificate or certificates representing said shares of
common stock in the name of the undersigned or in such other name as is
specified below:

(Name)

(Address)

     (4)  The undersigned represents that (a) he, she or it is the original
purchaser from the Corporation of the attached Warrant or an “accredited
investor” within the meaning of Rule 501(a) under the Securities Act of 1933,
as amended and (b) the aforesaid shares of common stock 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 except under
circumstances that will not result in a violation of the Securities Act of
1933, as amended, or any state securities laws.

	 	 	 
	

(Date)	 	

(Signature)

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ASSIGNMENT FORM

(To assign the foregoing Warrant, execute this form and supply required
information. Do not use this form to purchase shares.)

     FOR VALUE RECEIVED, the undersigned registered owner of this Warrant
hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under the within Warrant, with respect to the number
of shares of common stock of Bioject Medical Technologies Inc. set forth below:

	 	 	 	 	 	 	 	 	 	 	 
	Name of Assignee	 	Address	 	No. of Shares
	
	 	
	 	

	 
	 

and does hereby irrevocably constitute and appoint Attorney _____________________________ to make such transfer on the books of Bioject Medical
Technologies Inc., maintained for the purpose, with full power of substitution
in the premises.

     The undersigned also represents that, by assignment hereof, the Assignee
acknowledges that this Warrant and the shares of stock to be issued upon
exercise hereof are being acquired for investment and that the Assignee will
not offer, sell or otherwise dispose of this Warrant or any shares of stock to
be issued upon exercise hereof except under circumstances which will not result
in a violation of the Securities Act of 1933, as amended, or any state
securities laws. Further, the Assignee shall, if requested by the Corporation,
confirm in writing, in a form satisfactory to the Corporation, that the shares
of stock so purchased are being acquired for investment and not with a view
toward distribution or resale.

	 	 	 	 	 
	 	 	
Dated:
	 	 
	 	 	
	

	 
	 	 	Holder’s Signature:	 
	 	 	
	 	

	 
	 	 	Holder’s Address:	 
	 
	 	 	

	 
	 	 	

Guaranteed Signature:

NOTE: The signature to this Assignment Form must correspond with the name as
it appears on the face of the Warrant, without alteration or enlargement or any
change whatever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative
capacity should file proper evidence of authority to assign the foregoing
Warrant.

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EXHIBIT 4.3

REGISTRATION RIGHTS AGREEMENT

     This Agreement is made as of December 19, 2001 by and among BIOJECT
MEDICAL TECHNOLOGIES INC., an Oregon corporation (the “Corporation”), and
Leerink Swann & Company (“Leerink”).

RECITALS

     Simultaneously herewith, the Corporation has issued a Series “Y” Common
Stock Purchase Warrant to Leerink to purchase up to an aggregate of 17,500
shares of the Corporation’s Common Stock (the “Warrant”).

AGREEMENT

     NOW, THEREFORE, it is hereby agreed as follows:

1. Certain Definitions

     As used in this Agreement, the following terms shall have the following
respective meanings:

          “Common Stock” shall mean shares of common stock, without par value, of
the Corporation.

          “Commission” shall mean the Securities and Exchange Commission.

          “Holder” shall mean the holders of Registrable Securities and any person
holding such securities to whom the rights under this Agreement have been
transferred in accordance with Section 2.8 hereof.

          “Registrable Securities” means (i) all shares of the Corporation’s Common
Stock issued and/or issuable upon exercise of the Warrant (the “Shares”), and
(ii) any Common Stock or other securities of the Corporation issued or issuable
with respect to, or in exchange for or in replacement of the Shares or such
additional shares upon any stock split, stock dividend, recapitalization, or
similar event; provided, however, that shares of Common Stock or other
securities shall only be treated as Registrable Securities for the purposes of
Section 2 hereof if and so long as they have not been sold pursuant to Rule 144
under the Securities Act or pursuant to an effective Registration Statement
under the Securities Act, or otherwise to or through a broker or dealer or
underwriter in a public distribution or a public securities transaction.

          The terms “register,” “registered” and “registration” refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement.

          “Registration Expenses” shall mean all expenses, except as otherwise
stated below, incurred by the Corporation in complying with Section 2 hereof,
including, without limitation, all registration, qualification and filing fees,
printing expenses, escrow fees, fees and disbursements of counsel for the
Corporation and one special counsel to the selling Holders, blue sky fees and
expenses, fees to Nasdaq to list the Shares or American Stock Transfer and
Trust Company to issue the Shares, and the expense of any special audits
incident to or required by any such registration.

          “Securities Act” shall mean the Securities Act of 1933, as amended, or any
similar federal statute and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time.

          “Selling Expenses” shall mean all underwriting discounts, selling
commissions and stock transfer taxes applicable to the securities registered by
the selling Holders that are incurred by the selling Holders.

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2. Registration Rights

     2.1 Company Registration

          (a) Notice of Registration. If at any time or from time to time the
Corporation shall determine to register any of its securities, either for its
own account or the account of a security holder or holders, other than a
registration relating solely to employee benefit plans or a registration
relating solely to a Commission Rule 145 transaction, the Corporation will:

               (i) promptly give to each Holder written notice thereof; and

               (ii) subject to Section 2.1(b), include in such registration (and any
related qualification under blue sky laws or other compliance), and in any
underwriting involved therein, all the Registrable Securities specified in a
written request or requests made within 20 days after receipt of such written
notice from the Corporation, by any Holder.

          (b) Underwriting. If the registration of which the Corporation gives
notice is for a registered public offering involving an underwriting, the
Corporation shall so advise the Holders as a part of the written notice given
pursuant to Section 2.1(a) hereof. In such event the right of any Holder to
registration pursuant to this Section 2.1 shall be conditioned upon such
Holder’s participation in such underwriting and the inclusion of Registrable
Securities in the underwriting to the extent provided herein. All Holders
proposing to distribute their securities through such underwriting shall
(together with the Corporation) enter into an underwriting agreement in
customary form with the managing underwriter selected for such underwriting by
the Corporation. Notwithstanding any other provision of this Section 2.1, if
the managing underwriter determines that marketing factors require a limitation
of the number of shares to be underwritten, the managing underwriter may limit
the Registrable Securities and other securities to be distributed through such
underwriting for the account of the requesting Holders (including persons other
than Holders with registration rights relating to the Corporation’s Common
Stock who have requested to participate in the underwritten offering (“Other
Holders”)) to 20% of the total number of shares to be distributed. The
Corporation shall so advise all Holders distributing their securities through
such underwriting of such limitations and the number of shares of Registrable
Securities, if any, that may be included in the registration (and underwriting,
if any) shall be allocated among all Holders (including the Other Holders) in
proportion, as nearly as practicable, to the respective amounts of Registrable
Securities and securities held by the Other Holders requested by such persons
to be included in such Registration Statement. To facilitate the allocation of
shares in accordance with the above provisions, the Corporation may round the
number of shares allocated to any Holder or holder to the nearest 100 shares.

          (c) Right to Terminate Registration. The Corporation shall have the right
to terminate or withdraw any registration initiated by it under this Section
2.1 prior to the effectiveness of such registration whether or not any Holder
has elected to include securities in such registration. The Registration
Expenses of such withdrawn registration shall be borne by the Corporation in
accordance with Section 2.3 hereof.

     2.2 Expenses of Registration

     All Registration Expenses incurred in connection with registration
pursuant to Section 2.1 shall be borne by the Corporation. All Selling
Expenses relating to securities registered on behalf of the Holders shall be
borne by the Holders of securities included in such registration pro rata,
severally and not jointly, among each other on the basis of the number of
shares so registered.

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     2.3 Registration Procedures

     In the case of each registration effected by the Corporation pursuant to
this Section 2, the Corporation will keep each Holder advised in writing as to
the initiation of each registration and as to the completion thereof. At its
expense the Corporation will:

          (a) Prepare and file with the Commission a registration statement with
respect to such securities and use its best efforts to cause such registration
statement to become and remain effective for at least two (2) years or, if
earlier, until the distribution described in the registration statement has
been completed;

          (b) Prepare and file with the Commission during the period specified in
Section 2.4(a) such amendments and supplements to such registration statement
and the prospectus used in connection with such registration statement as may
be necessary to comply with the provisions of the Securities Act with respect
to the disposition of all securities covered by such registration statement;

          (c) Furnish to the Holders participating in such registration and to the
underwriters of the securities being registered such reasonable number of
copies of the registration statement, preliminary prospectus, final prospectus
and such other documents as the Holders and such underwriters may reasonably
request in order to facilitate the public offering of such securities;

          (d) Furnish, at the request of any Holder requesting registration of
Registrable Securities at the time such securities are delivered to the
underwriters (if any) for sale in connection with a registration pursuant to
this Section 2, (i) an opinion, dated such date, of the counsel representing
the Corporation for the purposes of such registration, in form and substance as
is customarily given to underwriters in an underwritten public offering,
addressed to the underwriters and to the Holders requesting registration of
Registrable Securities and (ii) a letter dated the date of commencement of the
offering and a “bring-down” letter dated as of the closing date of such
offering, from the independent accountants of the Corporation, in form and
substance as is customarily given by independent accountants to underwriters in
an underwritten public offering, addressed to the underwriters, if any, and to
the Holders requesting registration of Registrable Securities;

          (e) Use its best efforts to register and qualify the securities covered by
such registration statement under such other securities or Blue Sky laws of
such jurisdictions as shall be reasonably requested by the Holders; provided
that the Corporation shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions, unless the Corporation
is already subject to service in such jurisdiction and except as may be
required by the Securities Act;

          (f) Notify each Holder of Registrable Securities covered by such
registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act as a result of the happening
of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing;

          (g) Cause all such Registrable Securities registered by such registration
statement to be listed on each securities exchange and quotations system on
which similar securities issued by the Corporation are then listed or quoted.

     2.4 Indemnification

          (a) The Corporation will indemnify each Holder and each person controlling
such Holder within the meaning of Section 15 of the Securities Act, with
respect to which registration has been effected pursuant to

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this Section 2, and each underwriter, if any, and each person who controls any
underwriter within the meaning of Section 15 of the Securities Act, against all
expenses, claims, losses, damages or liabilities (or actions in respect
thereof), including any of the foregoing incurred in settlement of any
litigation, commenced or threatened, arising out of or based on any untrue
statement (or alleged untrue statement) of a material fact contained in any
registration statement, prospectus, offering circular or other document, or any
amendment or supplement thereto, incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to
state therein a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances in which they were
made, not misleading, or any violation by the Corporation of the Securities Act
or any other applicable federal and state securities laws or any rules or
regulations promulgated thereunder in connection with any such registration,
qualification or compliance, and the Corporation will reimburse each such
Holder, each of its officers, directors, partners, and legal counsel and each
person controlling such Holder, each such underwriter and each person who
controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating, preparing or defending any such
claim, loss, damage, liability or action, provided that the Corporation will
not be liable in any such case to the extent that any such claim, loss, damage,
liability or expense arises out of or is based on any untrue statement or
omission or alleged untrue statement or omission, made in reliance upon and in
conformity with written information furnished to the Corporation by such
Holder, controlling person or underwriter and stated to be specifically for use
therein.

          (b) Each Holder will, if Registrable Securities held by such Holder are
included in the securities as to which such registration, qualification or
compliance is being effected, indemnify the Corporation, each of its directors
and officers, each underwriter, if any, of the Corporation’s securities covered
by such a registration statement, each person who controls the Corporation or
such underwriter within the meaning of Section 15 of the Securities Act, and
each other Holder, each of its officers and directors, and each person
controlling such Holder within the meaning of Section 15 of the Securities Act,
against all claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on any untrue statement (or alleged untrue
statement) of a material fact contained in any such registration statement,
prospectus, offering circular or other document, or any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will reimburse the
Corporation, such Holders, and such directors, officers, underwriters or
control persons for any legal or any other expenses reasonably incurred in
connection with investigating or defending any such claim, loss, damage,
liability or action, in each case to the extent, but only to the extent, that
such untrue statement (or alleged untrue statement) or omission (or alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Corporation by such Holder and stated to be specifically for
use therein. Notwithstanding the foregoing, the liability of each Holder under
this subsection (b) shall be limited to the proportion of any such loss, claim,
damage, liability or expense which is equal to the proportion that the public
offering price of the shares sold by such Holder under such registration
statement bears to the total public offering price of all securities sold
thereunder, but not to exceed the net proceeds received by such Holder from the
sale of Registrable Securities covered by such registration statement.

          (c) Each party entitled to indemnification under this Section 2.4 (the
“Indemnified Party”) shall give notice to the party required to provide
indemnification (the “Indemnifying Party”) promptly after such Indemnified
Party has actual knowledge of any claim as to which indemnity may be sought,
and shall permit the Indemnifying Party to assume the defense of any such claim
or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation
resulting therefrom, shall be approved by the Indemnified Party (whose approval
shall not unreasonably be withheld), and the Indemnified Party may participate
in such defense at such party’s expense, and provided further that the failure
of any Indemnified Party to give notice as provided herein shall not relieve
the Indemnifying Party of its obligations under this Section 2 unless the
failure to give such notice is materially prejudicial to an Indemnifying
Party’s ability to defend such action and provided further, that the
Indemnifying Party shall not assume the defense for matters as to which there
is a conflict of interest or separate and different defenses but shall bear the
expense of such defense nevertheless. Each Indemnified Party shall furnish
such information regarding itself or the claim in question as an Indemnifying
Party may reasonably request in writing and as shall be reasonably required in
connection with the defense of such claim and litigation resulting therefrom.
No

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Indemnifying Party, in the defense of any such claim or litigation, shall,
except with the consent of each Indemnified Party, consent to entry of any
judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation. Notwithstanding the other provisions of this Agreement, no
Indemnifying Party shall be obligated to indemnify any Indemnified Party for
amounts paid by the Indemnified Party in settlement of any loss, claim, damage,
liability or action if such settlement is effected without the consent of the
Indemnifying Party (which consent has not been unreasonably withheld).

          (d) If the indemnification provided for in paragraphs (a) through (c) of
this Section 2.4 is unavailable or insufficient to hold harmless an Indemnified
Party under such paragraphs in respect of any losses, claims, damages,
liabilities, expenses or actions in respect thereof referred to therein, then
each Indemnifying Party shall in lieu of indemnifying such Indemnified Party
contribute to the amount paid or payable by such Indemnified Party as a result
of such losses, claims, damages, liabilities or actions in such proportion as
appropriate to reflect the relative fault of the Corporation, the underwriters,
and the Holder of such Registrable Securities, respectively, in connection with
the statements or omissions which resulted in such losses, claims, damage,
liabilities, expenses or actions in respect thereof as well as any other
relevant equitable considerations, including the failure to give any notice
under paragraph (c). The relative fault shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a
material fact relates to information supplied by the Corporation, on the one
hand, or the underwriters or the Holders of such Registrable Securities, on the
other, and to the parties’ relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The
Corporation and each of the Holders agrees that it would not be just and
equitable if contributions pursuant to this paragraph were determined by pro
rata allocation (even if all of the Holders of such Registrable Securities were
treated as one entity for such purpose) or by any other method of allocation
which did not take account of the equitable considerations referred to above in
this paragraph. The amount paid or payable by an indemnified party as a result
of the losses, claims, damages, liabilities or action in respect thereof,
referred to above in this paragraph, shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the
provisions of this paragraph, no Holder shall be required to contribute any
amount in excess of the lesser of (i) the proportion that the public offering
price of shares sold by such Holder under such registration statement bears to
the total public offering price of all securities sold thereunder, but not to
exceed the proceeds received by such Holder for the sale of Registrable
Securities covered by such registration statement and (ii) the amount of any
damages which they would have otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission. No person guilty of fraudulent
misrepresentations (within the meaning of Section 11(f) of the Securities Act),
shall be entitled to contribution from any person who is not guilty of such
fraudulent misrepresentation.

          (e) Notwithstanding the foregoing, to the extent that the provisions on
indemnification and contribution contained in the underwriting agreement (if
any) entered into in connection with an underwritten public offering of the
Registrable Securities are in conflict with the foregoing provisions, the
provisions in such underwriting agreement shall control.

     2.5 Information by Holder

     The Holder or Holders of Registrable Securities included in any
registration shall furnish to the Corporation such information regarding such
Holder or Holders, the Registrable Securities held by them and the distribution
proposed by such Holder or Holders as the Corporation may reasonably request in
writing and as shall be required in connection with any registration,
qualification or compliance referred to in this Section 2.

     2.6 Rule 144 Reporting

     With a view to making available the benefits of certain rules and
regulations of the Commission which may at any time permit the sale of the
Registrable Securities to the public without registration, the Corporation
agrees to use its best efforts to:

5

 

          (a) At all times make and keep public information available, as those
terms are understood and defined in Rule 144 under the Securities Act;

          (b) File with the Commission in a timely manner all reports and other
documents required of the Corporation under the Securities Act and the
Securities Exchange Act of 1934, as amended;

          (c) So long as a Holder owns any Registrable Securities to furnish to the
Holder forthwith upon request a written statement by the Corporation as to its
compliance with the reporting requirements of said Rule 144, and of the
Securities Act and the Securities Exchange Act of 1934, a copy of the most
recent annual or quarterly report of the Corporation, and such other reports
and documents of the Corporation and other information in the possession of or
reasonably obtainable by the Corporation as a Holder may reasonably request in
availing itself of any rule or regulation of the Commission allowing a Holder
to sell any such securities without registration.

     2.7 Transfer of Registration Rights

     The rights to cause the Corporation to register securities granted to
Holders under this Section 2 may be assigned (a) to a transferee or assignee in
connection with any transfer or assignment of Registrable Securities by a
Holder of not less than 15,000 shares of Registrable Securities (as presently
constituted and subject to subsequent adjustments for stock splits, stock
dividends, reverse stock splits, and the like), or (b) to the estate of a
Holder, provided in each case that such transfer may otherwise be effected in
accordance with applicable securities laws and written notice of the transfer
is given to the Corporation at the time of or within a reasonable time after
such transfer or assignment, stating the name and address of the transferee or
assignee and identifying the Registrable Securities with respect to which such
registration rights are being transferred or assigned, and provided, further,
that the transferee or assignee of such rights agrees in writing to be bound by
the terms of this Agreement as if such transferee were a party hereto.

     2.8 Standoff Agreement

     Each Holder agrees, in connection with registered public offerings of the
Corporation’s securities for the account of the Corporation, upon request of
the Corporation or the underwriters managing any underwritten offering of the
Corporation’s securities, not to sell, make any short sale of or otherwise
dispose of any Registrable Securities (other than those included in the
registration) without the prior written consent of the Corporation or such
underwriters, as the case may be, for such period of time (not to exceed 180
days in the case of other public offerings) from the effective date of such
registration as may be requested by the underwriters, provided that the
officers and directors of the Corporation who own stock of the Corporation also
agree to such restrictions.

     2.9 Termination of Registration Rights

     The rights granted under this Section 2 shall terminate one (1) year from
the later of the exercise in full or termination of the Warrant.

     2.10 Delay of Registration

     No Holder or Holders shall have any right to take any action to restrain,
enjoin, or otherwise delay any registration as a result of any controversy that
might arise with respect to the interpretation or implementation of this
Section 2.

     2.11 Use of Form S-3

     With a view to maintaining its eligibility to use Form S-3, the
Corporation agrees to use its best efforts to file with the Commission in a
timely manner (i) all the material required to be filed pursuant to Sections
13, 14 or 15(d) of the Securities Exchange Act of 1934, as amended, and (ii)
all reports and other documents required to be filed by the

6

 

Corporation under
the Securities Act and the Securities Exchange Act of 1934, as amended;
provided, however, that
there can be no assurance that the Corporation will remain eligible for use of
Form S-3 or that any Form S-3 filed by the Corporation with respect to the
Registrable Securities will be declared effective.

3. Miscellaneous

     3.1 Waivers and Amendments

     With the written consent of both the Corporation and Holders of a majority
of outstanding Registrable Securities originally acquired by Leerink then held
by Holders (voting together as a class), the obligations of the Corporation and
the rights of such Holders of Registrable Securities under this Agreement may
be waived (either generally or in a particular instance, and either for a
specified period of time or indefinitely), and with the same consent the
Corporation, when authorized by resolution of its Board of Directors, may enter
into a supplementary agreement for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement.
Neither this Agreement nor any provisions hereof may be changed, waived,
discharged or terminated orally, other than by a signed statement in writing.

     3.2 Governing Law

     This Agreement shall be governed in all respects by the laws of the State
of Oregon as such laws are applied to agreements between Oregon residents
entered into and to be performed entirely within Oregon.

     3.3 Successors and Assigns

     Except as otherwise expressly provided herein, the Provisions hereof shall
inure to the benefit of, and be binding upon, the successors, assigns, heirs,
executors and administrators of the parties hereto.

     3.4 Entire Agreement

     This Agreement constitutes the full and entire understanding and agreement
between the parties with regard to the subjects hereof.

     3.5 Notices

     All notices and other communications required or permitted hereunder shall
be effective upon receipt and shall be in writing and may be delivered in
person, by telecopy, electronic mail, overnight delivery service or U.S. mail,
in which event it may be mailed by first class, postage prepaid, addressed (a)
if to Leerink, at the address set forth on the signature page hereto, or at
such other address as the Holder shall have furnished to the Corporation, or
(b) if to the Corporation, at 7620 SW Bridgeport Road, Portland, Oregon 97224,
Attention: President, or at such other address as shall have furnished to the
Holders in writing. Notwithstanding the foregoing, all notices and
communications to addresses outside the United States shall be given by
telecopier and confirmed in writing sent by overnight or two-day courier
service.

     3.6 Titles and Subtitles

     The titles of the paragraphs and subparagraphs of this Agreement are for
convenience of reference only and are not to be considered in construing this
Agreement.

7

 

     3.7 Litigation; Prevailing Party

     In the event of any litigation between the Corporation and Leerink with
regard to this Agreement, the prevailing party shall be entitled to
reimbursement from the nonprevailing party for all reasonable fees and expenses
of counsel for the prevailing party.

     3.8 Nominees

     Securities registered in the name of a nominee for a Holder shall, for
purposes of this Agreement, be treated as being owned by such Holder.

     3.9 Counterparts

     This Agreement may be executed in any number of counterparts, each of
which shall be an original, but all of which together shall constitute one
instrument. Delivery of a signed counterpart by and between telephone
facsimile transmission shall between effective as delivery of a manually signed
counterpart of this Agreement.

     IN WITNESS WHEREOF, the parties have executed this Registration Rights
Agreement as of the date set forth above.

	 	 	 
	 	BIOJECT MEDICAL TECHNOLOGIES INC.
	 
 
	 	By: 
	 	

	 	
Name: James C. O’Shea

Title: President and CEO

	 	 	 	 
	 	
Leerink Swann & Company
	 
	 	By:	 	 
	 	 	

	 	Name:	 	 
	 	 	

	 	Title:	 	 
	 	 	

	 	 	 
	 	Address:	
60 State Street

15th Floor

Boston, MA 02019

Attention: Stuart R. Barich

	 	 	 
	 	Telecopy: (617) 918-4724

8

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