Document:

Exhibit 10.2

 

Registration Rights Agreement

 

This
Registration Rights Agreement (the “Agreement”) is made and entered into as of
the 15th day of November 2004 (the “Effective Date”) between Bioject Medical
Technologies Inc., an Oregon corporation (the “Company”), and the parties set forth on
the signature page and Exhibit A hereto (each, a “Purchaser” and collectively,
the “Purchasers”).

 

R e c i t a l s:

 

A.                                   The
Purchasers have purchased shares of the Company’s Preferred Stock and Warrants
(as defined below) pursuant to the Purchase Agreement of even date herewith
(the “Purchase Agreement”) by and
between the Company and each Purchaser.

 

B.                                     The
Company and the Purchasers desire to set forth the registration rights to be
granted by the Company to the Purchasers.

 

Now, Therefore, in consideration of the mutual
promises, representations, warranties, covenants, and conditions set forth
herein and in the Subscription Agreements, the parties mutually agree as
follows:

 

A g r e e m e n t:

 

1.                                       Certain
Definitions.  As used in this
Agreement, the following terms shall have the following respective meanings:

 

“Approved
Market” means the Nasdaq National Market, the Nasdaq SmallCap Market, the
New York Stock Exchange, Inc., or the American Stock Exchange, Inc.

 

“Business
Day” means any day of the year, other than a Saturday, Sunday, or other day
on which the Commission is required or authorized to close.

 

“Closing
Date” means November 15, 2004, or such other time as is mutually agreed
between the Company and the Purchasers for the closing of the sale referred to
in Recital A above.

 

“Commission”
means the Securities and Exchange Commission or any other federal agency at the
time administering the Securities Act.

 

“Common
Stock” means the common stock, no par value, of the Company and any and all
shares of capital stock or other equity securities of: (i) the Company which
are added to or exchanged or substituted for the Common Stock by reason of the
declaration of any stock dividend or stock split, the issuance of any distribution
or the reclassification, readjustment, recapitalization or other such
modification of the capital structure of the Company; and (ii) any other
corporation, now or hereafter organized under the laws of any state or other
governmental authority, with which the Company is merged, which results from
any consolidation or reorganization to which the Company is a party, or to
which is sold all or substantially all of the shares or assets of the Company,
if immediately after such merger, consolidation, reorganization or sale, the
Company or the stockholders of the Company own equity securities having in the
aggregate more than 50% of the total voting power of such other corporation.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder.

 

“Family
Member” means (a) with respect to any individual, such individual’s spouse,
any descendants (whether natural or adopted), any trust all of the beneficial
interests of which are owned by any of such individuals or by any of such
individuals together with any organization described in Section 501(c)(3) of
the Internal Revenue

 

1

 

Code of 1986, as amended, the estate of any such
individual, and any corporation, association, partnership or limited liability
company all of the equity interests of which are owned by those above described
individuals, trusts or organizations and (b) with respect to any trust, the
owners of the beneficial interests of such trust.

 

“Form
S-3” means such form under the Securities Act as in effect on the date
hereof or any registration form under the Securities Act subsequently adopted
by the Commission, which permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the
Commission.

 

“Holder”
means each Purchaser, or any of such Purchaser’s respective successors and
Permitted Assigns who acquire rights in accordance with this Agreement with
respect to the Registrable Securities directly or indirectly from a Purchaser,
including from any Permitted Assignee.

 

“Inspector”
means any attorney, accountant, or other agent retained by a Purchaser for the
purposes provided in Section 4(j).

 

“Majority
Holders” means at any time Holders of a majority of the Registrable
Securities.

 

“Offering
Price” means $1.15 (as adjusted for any stock split, reverse stock split,
stock dividend, recapitalization, and the like).

 

“Permitted
Assignee” means (a) with respect to a partnership, its partners or
former partners in accordance with their partnership interests, (b) with
respect to a corporation, its shareholders in accordance with their interest in
the corporation, (c) with respect to a limited liability company, its
members or former members in accordance with their interest in the limited
liability company, (d) with respect to an individual party, any Family
Member of such party, (e) an entity that is controlled by, controls, or is
under common control with a transferor, or (f) a party to this Agreement.

 

“Preferred
Stock” means the Series D Preferred Stock, no par value, of the Company.

 

The
terms “register,” “registered,” and “registration” refers
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.

 

“Registrable
Securities” means shares of Common Stock issued or issuable to each
Purchaser upon conversion of the Preferred Stock or exercise of the Warrants
issued to each pursuant to the Purchase Agreement, excluding (i) any
Registrable Securities that have been publicly sold or may be sold immediately
without registration under the Securities Act either pursuant to Rule 144 of
the Securities Act or otherwise; (ii) any Registrable Securities sold by a
person in a transaction pursuant to a registration statement filed under the
Securities Act or (iii) any Registrable Securities that are at the time subject
to an effective registration statement under the Securities Act.

 

“Registration
Default Date” means the date which is 270 days following the Closing
Date; provided, however, (i) if the 270h
day following the Closing Date falls during an S-3 Blackout Period, the
Registration Default Date shall be the date immediately following the last day
of such S-3 Blackout Period, and (ii) if the Registration Statement is subject
to review by the SEC staff and the Company is unable to file necessary
pre-effective amendments to the Registration Statement with the SEC because of
an S-3 Blackout Period, the Registration Default Date shall be extended by the
number of calendar days that the Company is unable to file any such
pre-effective amendment during any such S-3 Blackout Period that occurs prior
to the end of the 365-day period.

 

“Registration
Default Period” means the period following the Registration Default Date
during which any Registration Event occurs and is continuing.

 

“Registration
Event” means the occurrence of any of the following events:

 

(a)                                  the Company fails to file with the SEC the
Registration Statement on or before the Registration Filing Date pursuant to
Section 3(a),

 

2

 

(b)                                 the Registration Statement covering
Registrable Securities is not declared effective by the Commission on or before
the Registration Default Date, or

 

(c)                                  after the SEC Effective Date, sales cannot be
made pursuant to the Registration Statement for any reason (including without
limitation by reason of a stop order, or the Company’s failure to update the
Registration Statement) but except as excused pursuant to Section 3(a).

 

“Registration
Statement” means the registration statement required to be filed by the
Company pursuant to Section 3(a).

 

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

 

“SEC
Effective Date” means the date the Registration Statement is declared
effective by the Commission.

 

“S-3
Blackout Period” means, with respect to a registration, a period in each
case commencing on the day immediately after the Company notifies the
Purchasers that they are required, pursuant to Section 4(f), to suspend offers
and sales of Registrable Securities during which the Company, in the good faith
judgment of its Board of Directors, determines (because of the existence of, or
in anticipation of, any acquisition, financing activity, or other transaction
involving the Company, or the unavailability for reasons beyond the Company’s
control of any required financial statements, disclosure of information which
is in its best interest not to publicly disclose, or any other event or condition
of similar significance to the Company) that the registration and distribution
of the Registrable Securities to be covered by such registration statement, if
any, would be seriously detrimental to the Company and its shareholders and
ending on the earlier of (1) the date upon which the material non-public
information commencing the S-3 Blackout Period is disclosed to the public or
ceases to be material and (2) such time as the Company notifies the selling
Holders that the Company will no longer delay such filing of the Registration
Statement, recommence taking steps to make such Registration Statement
effective, or allow sales pursuant to such Registration Statement to resume; provided, however, that (a) the Company
shall limit its use of S-3 Blackout Periods, in the aggregate, to 30 Trading
Days in any 12-month period and (b) no S-3 Blackout Period may commence sooner
than 60 days after the end of a prior S-3 Blackout Period.

 

“Trading
Day” means a day on whichever (a) the national securities exchange, (b) the
Nasdaq Stock Market, or (c) such other securities market, in any such case
which at the time constitutes the principal securities market for the Common
Stock, is open for general trading of securities.

 

“Warrants”
means the warrants to purchase common stock issued by the Company to the
Purchasers pursuant to the Purchase Agreement.

 

2.                                       Term.  This Agreement shall continue in full force
and effect for a period of two (2) years from the Effective Date.

 

3.                                       Registration.

 

(a)                                  Registration
on Form S-3.  As promptly as
reasonably practicable after the date hereof, but in any event not later than
180 days after the Closing Date (the “Registration Filing Date”), the Company shall
use its commercially reasonable efforts to file with the Commission a shelf
registration statement on Form S-3 relating to the resale by the Holders of all
of the Registrable Securities; provided,
however, that the Company shall not be obligated to effect any such
registration, qualification, or compliance pursuant to this Section 3(a), or
keep such registration effective pursuant to Section 4: (i) in any particular
jurisdiction in which the Company would be required to qualify to do business
as a foreign corporation or as a dealer in securities under the securities or
blue sky laws of such jurisdiction or to execute a general consent to service
of process in effecting such registration, qualification or compliance, in each
case where it has not already done so; or (ii) during any S-3 Blackout Period,
in which case the Registration Filing Date shall be extended to the date
immediately following the last day of such S-3 Blackout Period.

 

3

 

(b)                                 Piggyback
Registration.  If the Company shall
determine to register for sale for cash any of its Common Stock, for its own
account or for the account of others (other than the Holders) pursuant to the
exercise of demand registration rights, other than (i) a registration relating
solely to employee benefit plans or securities issued or issuable to employees,
consultants (to the extent the securities owned or to be owned by such
consultants could be registered on Form S-8) or any of their Family Members
(including a registration on Form S-8) or (ii) a registration relating solely
to a Commission Rule 145 transaction, a registration on Form S-4 in connection
with a merger, acquisition, divestiture, reorganization, or similar event, the
Company shall promptly give to the Holders written notice thereof (and in no
event shall such notice be given less than 20 calendar days prior to the filing
of such registration statement), and shall, subject to Section 3(c), include in
such registration (and any related qualification under blue sky laws or other
compliance) (a “Piggyback Registration”), all
of the Registrable Securities specified in a written request or requests, made
within 10 calendar days after receipt of such written notice from the Company,
by any Holder or Holders.  However, the
Company may, without the consent of the Holders, withdraw such registration statement
prior to its becoming effective if the Company or such other shareholders have
elected to abandon the proposal to register the securities proposed to be
registered thereby.

 

(c)                                  Underwriting.  If a Piggyback Registration is for a
registered public offering involving an underwriting, the Company shall so
advise the Holders in writing or as a part of the written notice given pursuant
to Section 3(b).  In such event the right
of any Holder to registration pursuant to Section 3(b) shall be conditioned upon
such Holder’s participation in such underwriting and the inclusion of such
Holder’s Registrable Securities in the underwriting to the extent provided
herein.  All Holders proposing to
distribute their securities through such underwriting shall (together with the
Company and any other shareholders of the Company distributing their securities
through such underwriting) enter into an underwriting agreement in customary
form with the underwriter or underwriters selected for such underwriting by the
Company or selling shareholders, as applicable. 
Notwithstanding any other provision of this Section 3(c), if the
underwriter or the Company determines that marketing factors require a
limitation of the number of shares to be underwritten, the underwriter may exclude
some or all Registrable Securities from such registration and
underwriting.  The Company shall so
advise all Holders (except those Holders who failed to timely elect to
distribute their Registrable Securities through such underwriting or have
indicated to the Company their decision not to do so), and the number of shares
of Registrable Securities that may be included in the registration and
underwriting, if any, shall be allocated among such Holders as follows:

 

(i)                                     In the event of a Piggyback Registration that
is initiated by the Company, the number of shares that may be included in the
registration and underwriting shall be allocated first to the Company and then,
subject to obligations and commitments existing as of the date hereof, to all
selling shareholders, including the Holders, who have requested to sell in the
registration on a pro rata basis according to the number of shares requested to
be included; and

 

(ii)                                  In the event of a Piggyback Registration that
is initiated by the exercise of demand registration rights by a shareholder or
shareholders of the Company (other than the Holders), then the number of shares
that may be included in the registration and underwriting shall be allocated
first to such selling shareholders who exercised such demand and then, subject
to obligations and commitments to all other selling shareholders, including the
Holders, who have requested to sell in the registration, on a pro rata basis
according to the number of shares requested to be included.

 

No
Registrable Securities excluded from the underwriting by reason of the
underwriter’s marketing limitation shall be included in such registration.  If any Holder disapproves of the terms of any
such underwriting, such Holder may elect to withdraw therefrom by written notice
to the Company and the underwriter.  The
Registrable Securities and/or other securities so withdrawn from such
underwriting shall also be withdrawn from such registration; provided, however, that, if by the
withdrawal of such Registrable Securities a greater number of Registrable
Securities held by other Holders may be included in such registration (up to
the maximum of any limitation imposed by the underwriters), then the Company
shall offer to all Holders who have included Registrable Securities in the
registration the right to include additional Registrable Securities pursuant to
the terms and limitations set forth herein in the same proportion used above in
determining the underwriter limitation.

 

(d)                                 Other
Registrations.  Prior to the SEC
Effective Date the Company will not, without the prior written consent of the
Majority Holders, file or request the acceleration of any other registration
statement filed with the Commission, and during any time subsequent to the SEC
Effective Date when the Registration Statement for any reason is not available
for use by any Holder for the resale of any Registrable Securities, the Company
shall not,

 

4

 

without the prior written consent of the Majority
Holders, file any other registration statement or any amendment thereto with
the Commission under the Securities Act or request the acceleration of the
effectiveness of any other registration statement previously filed with the
Commission, other than (A) any registration statement on Form S-8 or Form S-4
and (B) any registration statement or amendment which the Company is required
to file or as to which the Company is required to request acceleration pursuant
to any obligation in effect on the date of execution and delivery of this
Agreement.

 

(e)                                  Failure
to File Registration Statement. If a Registration Event occurs, then the
Company will make payments to each Purchaser, as liquidated damages for the
minimum amount of damages to the Qualified Purchaser by reason thereof, and not
as a penalty, at a rate equal to one percent (1%) of the Offering Price per
share of Preferred Stock or, one tenth of one percent (0.1%) of the Offering
Price for each share of Common Stock acquired upon exercise of a Warrant, held
by such Purchaser per month, for each calendar month of the Registration
Default Period (pro rated for any period less than 30 days); provided, however,
if a Registration Event occurs (or is continuing) on a date more than one-year
after the Purchaser acquired the Registrable Securities (and thus the one-year
holding period under Rule 144(d) has elapsed), liquidated damages shall be paid
only with respect to that portion of a Purchaser’s Registrable Securities that
cannot then be immediately resold in reliance on Rule 144. Each such payment
shall be due and payable within five days after the end of each calendar month
of the Registration Default Period until the termination of the Registration
Default Period and within five days after such termination.  Such payments shall be in partial
compensation to the Purchaser, and shall not constitute the Purchaser’s
exclusive remedy for such events. The Registration Default Period shall
terminate upon (i) the filing of the Registration Statement in the case of
clause (a) of the definition of “Registration Event,” (ii) the SEC Effective
Date in the case of clause (b) of the definition of “Registration Event,” (iii)
the ability of the Purchaser to effect sales pursuant to the Registration
Statement in the case of clause (c) of the Definition of “Registration Event,”
and (iv) in the case of the events described in clauses (b) and (c) of the
definition of “Registration Event,” the earlier termination of the Registration
Default Period.  The amounts payable as
liquidated damages pursuant to this paragraph shall be payable in lawful money
of the United States.  Amounts payable as
liquidated damages to each Purchaser hereunder with respect to each share of
Registrable Securities shall cease when the Purchaser no longer holds such
share of Registrable Securities or such share of Registrable Securities can be
immediately sold by the Purchaser in reliance on Rule 144.

 

4.                                       Registration
Procedures.  In the case of each
registration, qualification, or compliance effected by the Company pursuant to
Section 3 hereof, the Company will keep each Holder including securities
therein reasonably advised in writing (which may include e-mail) as to the
initiation of each registration, qualification, and compliance and as to the
completion thereof.  At its expense with
respect to any registration statement filed pursuant to Section 3, the Company
will use its commercially reasonable efforts to:

 

(a)                                  prepare
and file with the Commission with respect to such Registrable Securities, a
registration statement on Form S-3 or any other form for which the Company then
qualifies or which counsel for the Company shall deem appropriate, and which
form shall be available for the sale of the Registrable Securities in
accordance with the intended method(s) of distribution thereof, and use its
commercially reasonable efforts to cause such registration statement to become
and remain effective at least for a period ending with the first to occur of
(i) the sale of all Registrable Securities covered by the registration
statement, (ii) the availability under Rule 144 for the Holder to immediately,
freely resell without restriction all Registrable Securities covered by the
registration statement, and (iii) one year after expiration of the term of the
Warrants (in either case, the “Effectiveness Period”);
provided, however, if at the end
of such one-year period, any Holder is not able to immediately, freely resell
all Registrable Securities that it owns, the Effectiveness Period shall
continue until terminated pursuant to clause (i) or (ii); provided that no
later than two business days before filing with the Commission a registration
statement or prospectus or any amendments or supplements thereto, the Company
shall (i) furnish to one special counsel (“Holders Counsel”) selected by the Company for
the benefit of the Holders (which Holders Counsel initially shall be John T.
Unger of Thompson & Knight LLP, Houston, Texas), copies of all such
documents proposed to be filed (excluding any exhibits other than applicable
underwriting documents), in substantially the form proposed to be filed, which
documents shall be subject to the review of such Holders Counsel, and (ii)
notify each Holder of Registrable Securities covered by such registration
statement of any stop order issued or threatened by the Commission and take all
reasonable actions required to prevent the entry of such stop order or to
remove it if entered;

 

5

 

(b)                                 if
a registration statement is subject to review by the Commission, promptly respond
to all comments and diligently pursue resolution of any comments to the
satisfaction of the Commission;

 

(c)                                  prepare
and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may
be necessary to keep such registration statement effective during the
Effectiveness Period (but in any event at least until expiration of the 90-day
period referred to in Section 4(3) of the Securities Act and Rule 174, or any
successor thereto, thereunder, if applicable), and comply with the provisions
of the Securities Act with respect to the disposition of all securities covered
by such registration statement during such period in accordance with the
intended method(s) of disposition by the sellers thereof set forth in such
registration statement;

 

(d)                                 furnish,
without charge, to each Holder of Registrable Securities covered by such
registration statement (i) a reasonable number of copies of such registration
statement (including any exhibits thereto other than exhibits incorporated by
reference), each amendment and supplement thereto as such Holder may request,
(ii) such number of copies of the prospectus included in such registration
statement (including each preliminary prospectus and any other prospectus filed
under Rule 424 under the Securities Act) as such Holders may request, in
conformity with the requirements of the Securities Act, and (iii) such other
documents as such Holder may reasonably request in order to facilitate the disposition
of the Registrable Securities owned by such Holder, but only during the
Effectiveness Period;

 

(e)                                  use
its commercially reasonable efforts to register or qualify such Registrable
Securities under such other applicable securities or blue sky laws of such
jurisdictions as any Holder of Registrable Securities covered by such
registration statement reasonably requests as may be necessary for the
marketability of the Registrable Securities (such request to be made by the
time the applicable registration statement is deemed effective by the
Commission) and do any and all other acts and things which may be reasonably
necessary or advisable to enable such Holder to consummate the disposition in
such jurisdictions of the Registrable Securities owned by such Holder; provided
that the Company shall not be required to (i) qualify generally to do business
in any jurisdiction where it would not otherwise be required to qualify but for
this paragraph (e), (ii) subject itself to taxation in any such jurisdiction,
or (iii) consent to general service of process in any such jurisdiction;

 

(f)                                    as
promptly as practicable after becoming aware of such event, notify each Holder
of such Registrable Securities at any time when a prospectus relating thereto
is required to be delivered under the Securities Act of the happening of any
event which comes to the Company’s attention if as a result of such event the
prospectus included in such registration statement contains an untrue statement
of a material fact or omits to state any material fact required to be stated
therein or necessary to make the statements therein not misleading and the
Company shall promptly prepare and furnish to such Holder a supplement or
amendment to such prospectus (or prepare and file appropriate reports under the
Exchange Act) so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus shall not contain an untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading, unless
suspension of the use of such prospectus otherwise is authorized herein or in
the event of an S-3 Blackout Period, in which case no supplement or amendment
need be furnished (or Exchange Act filing made) until the termination of such
suspension or S-3 Blackout Period;

 

(g)                                 comply,
and continue to comply during the period that such registration statement is
effective under the Securities Act, in all material respects with the
Securities Act and the Exchange Act and with all applicable rules and
regulations of the Commission with respect to the disposition of all securities
covered by such registration statement.

 

(h)                                 as
promptly as practicable after becoming aware of such event, notify each Holder
of Registrable Securities being offered or sold pursuant to the Registration
Statement of the issuance by the Commission of any stop order or other
suspension of effectiveness of the Registration Statement at the earliest
possible time;

 

(i)                                     permit
the Holders of Registrable Securities being included in the Registration
Statement and their legal counsel, at such Holders’ sole cost and expense
(except as otherwise specifically provided in Section 6) to review and have a
reasonable opportunity to comment on the Registration Statement and all
amendments and supplements thereto at least two Business Days prior to their
filing with the Commission and shall not file any such document to which the
Majority Holders reasonably object;

 

6

 

(j)                                     make
available for inspection by any Holder and any Inspector retained by such
Holder, at such Holder’s sole expense, all Records as shall be reasonably
necessary to enable such Holder to exercise its due diligence responsibility,
and cause the Company’s officers, directors, and employees to supply all
information which such Holder or any Inspector may reasonably request for
purposes of such due diligence; provided, however, that
such Holder shall hold in confidence and shall not make any disclosure of any
record or other information which the Company determines in good faith to be
confidential, and of which determination such Holder is so notified at the time
such Holder receives such information, unless (i) the disclosure of such record
is necessary to avoid or correct a misstatement or omission in the Registration
Statement and a reasonable time prior to such disclosure the Holder shall have
informed the Company of the need to so correct such misstatement or omission
and the Company shall have failed to correct such misstatement of omission,
(ii) the release of such record is ordered pursuant to a subpoena or other
order from a court or governmental body of competent jurisdiction or (iii) the
information in such record has been made generally available to the public
other than by disclosure in violation of this or any other agreement.  The Company shall not be required to disclose
any confidential information in such records to any Inspector until and unless
such Inspector shall have entered into a confidentiality agreement with the
Company with respect thereto, substantially in the form of this Section 4(j),
which agreement shall permit such Inspector to disclose records to the Holder
who has retained such Inspector.  Each
Holder agrees that it shall, upon learning that disclosure of such Records is
sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt notice to the Company and allow the Company,
at the Company’s expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, the records deemed confidential.  The Company shall hold in confidence and
shall not make any disclosure of information concerning a Holder provided to
the Company pursuant to this Agreement unless (i) disclosure of such
information is necessary to comply with federal or state securities laws, (ii)
disclosure of such information to the Staff of the Division of Corporation
Finance is necessary to respond to comments raised by the Staff in its review
of the Registration Statement, (iii) disclosure of such information is
necessary to avoid or correct a misstatement or omission in the Registration
Statement, (iv) release of such information is ordered pursuant to a subpoena
or other order from a court or governmental body of competent jurisdiction, or
(v) such information has been made generally available to the public other than
by disclosure in violation of this or any other agreement.  The Company agrees that it shall, upon
learning that disclosure of such information concerning a Holder is sought in
or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to such Holder and allow such Holder, at such
Holder’s expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information;

 

(k)                                  use
its commercially reasonable efforts to cause all the Registrable Securities
covered by the Registration Statement to be quoted on the Nasdaq Stock Market
or such other principal securities market on which securities of the same class
or series issued by the Company are then listed or traded;

 

(l)                                     provide
a transfer agent and registrar, which may be a single entity, for the
Registrable Securities at all times;

 

(m)                               cooperate
with the Holders of Registrable Securities being offered pursuant to the
Registration Statement to facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legends) representing Registrable
Securities sold pursuant to the Registration Statement and enable such
certificates to be in such denominations or amounts as the Holders may
reasonably request and registered in such names as the Holders may request;

 

(n)                                 during
the Effectiveness Period, refrain from bidding for or purchasing any Common
Stock or any right to purchase Common Stock or attempting to induce any Person
to purchase any such security or right if such bid, purchase or attempt would
in any way limit the right of the Holders to sell Registrable Securities by
reason of the limitations set forth in Regulation M under the 1934 Act; and

 

(o)                                 take
all other reasonable actions necessary to expedite and facilitate disposition
by the Holders of the Registrable Securities pursuant to the Registration
Statement.

 

5.                                       Suspension
of Offers and Sales.  Each Holder of
Registrable Securities agrees that, upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 4(f) hereof or
of the commencement of an S-3 Blackout Period, such Holder shall discontinue
disposition of Registrable Securities pursuant to the registration statement
covering such Registrable Securities until such Holder’s receipt of the copies

 

7

 

of the supplemented or amended prospectus contemplated
by Section 4(f) hereof or notice of the end of the S-3 Blackout Period, and, if
so directed by the Company, such Holder shall deliver to the Company (at the
Company’s expense) all copies (including, without limitation, any and all
drafts), other than permanent file copies, then in such Holder’s possession, of
the prospectus covering such Registrable Securities current at the time of
receipt of such notice.  In the event the
Company shall give any such notice, the period mentioned in Section 4(a)(iii)
hereof shall be extended by the greater of (i) ten business days or (ii) the
number of days during the period from and including the date of the giving of
such notice pursuant to Section 4(f) hereof to and including the date when each
Holder of Registrable Securities covered by such registration statement shall
have received the copies of the supplemented or amended prospectus contemplated
by Section 4(f) hereof.

 

6.                                       Registration
Expenses.  The Company shall pay all
expenses in connection with any registration, including, without limitation,
all registration, filing, stock exchange fees, printing expenses, all fees and
expenses of complying with securities or blue sky laws, the fees and
disbursements of counsel for the Company and of its independent accountants,
and the reasonable fees and disbursements of a Holders Counsel (not to exceed
$5,000); provided that, in any underwritten registration, each party shall pay
for its own underwriting discounts and commissions and transfer taxes. Except
as provided above in this Section 6 and Section 9, the Company shall not be
responsible for the expenses of any attorney or other advisor employed by a
Holder of Registrable Securities.

 

7.                                       Assignment
of Rights. No Holder may assign its rights under this Agreement to any
party without the prior written consent of the Company; provided, however, that a Holder may
assign its rights under this Agreement without such restrictions to a Permitted
Assignee as long as (a) such transfer or assignment is effected in accordance
with applicable securities laws; (b) such transferee or assignee agrees in
writing to become subject to the terms of this Agreement; and (c) the Company
is given written notice by such Holder of such transfer or assignment, stating
the name and address of the transferee or assignee and identifying the
Registrable Securities with respect to which such rights are being transferred
or assigned.

 

8.                                       Information
by Holder.  The Holder or Holders of
Registrable Securities included in any registration shall furnish to the
Company such information regarding such Holder or Holders and the distribution
proposed by such Holder or Holders as the Company may request in writing.

 

9.                                       Indemnification.

 

(a)                                  In
the event of the offer and sale of Registrable Securities held by Holders under
the Securities Act, the Company shall, and hereby does, indemnify and hold
harmless, to the fullest extent permitted by law, each Holder, its directors,
officers, partners, and each other person, if any, who controls or is under
common control with such Holder or any such underwriter within the meaning of
Section 15 of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, and expenses to which the Holder or any such
director, officer, partner or underwriter or controlling person may become
subject under the Securities Act or otherwise, insofar as such losses, claims,
damages, liabilities or expenses (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon any untrue
statement or alleged untrue statement of any material fact contained in any
registration statement under which such shares were registered under the
Securities Act, any preliminary prospectus, final prospectus or summary
prospectus contained therein, or any amendment or supplement thereto, or 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, and the Company shall
reimburse the Holder, and each such director, officer, partner, and controlling
person for any legal or any other expenses reasonably incurred by them in
connection with investigating, defending or settling any such loss, claim,
damage, liability, action or proceeding; provided that the Company shall not be
liable in any such case (i) to the extent that any such loss, claim, damage,
liability (or action or proceeding in respect thereof) or expense arises out of
or is based upon an untrue statement or alleged untrue statement in or omission
or alleged omission from such registration statement, any such preliminary
prospectus, final prospectus, summary prospectus, amendment or supplement in
reliance upon and in conformity with written information furnished to the
Company by or on behalf of such Holder or (ii) if the person asserting any such
loss, claim, damage, liability (or action or proceeding in respect thereof) who
purchased the Registrable Securities that are the subject thereof did not
receive a copy of an amended preliminary prospectus or the final prospectus (or
the final prospectus as amended or supplemented) at or prior to the written
confirmation of the sale of such Registrable Securities to such person because
of the failure of such Holder or underwriter to so provide such amended
preliminary or final prospectus and the untrue statement or alleged untrue
statement or omission or alleged omission of a material fact made in such

 

8

 

preliminary prospectus was corrected in the amended
preliminary or final prospectus (or the final prospectus as amended or
supplemented). Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of the Holders, or any such director,
officer, partner, underwriter or controlling person and shall survive the
transfer of such shares by the Holder.

 

(b)                                 As
a condition to including any Registrable Securities to be offered by a Holder
in any registration statement filed pursuant to this Agreement, each such
Holder agrees to be bound by the terms of this Section 9 and to indemnify and
hold harmless, to the fullest extent permitted by law, the Company, its
directors and officers, and each other person, if any, who controls the Company
within the meaning of Section 15 of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, to which the Company or any
such director or officer or controlling person may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions or proceedings, whether commenced or threatened, in
respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement in or omission or alleged omission from such registration
statement, any preliminary prospectus, final prospectus or summary prospectus
contained therein, or any amendment or supplement thereto, if such statement or
alleged statement or omission or alleged omission was made in reliance upon and
in conformity with written information about such Holder as a Holder of the
Company furnished to the Company, and such Holder shall reimburse the Company,
and each such director, officer, and controlling person for any legal or other
expenses reasonably incurred by them in connection with investigating,
defending, or settling and such loss, claim, damage, liability, action, or
proceeding; provided, however,
that such indemnity agreement found in this Section 9(b) shall in no event
exceed the gross proceeds from the offering received by such Holder.  Such indemnity shall remain in full force and
effect, regardless of any investigation made by or on behalf of the Company or
any such director, officer or controlling person and shall survive the transfer
by any Holder of such shares.

 

(c)                                  Promptly
after receipt by an indemnified party of notice of the commencement of any
action or proceeding involving a claim referred to in Section 9(a) or (b)
hereof (including any governmental action), such indemnified party shall, if a
claim in respect thereof is to be made against an indemnifying party, give
written notice to the indemnifying party of the commencement of such action;
provided that the failure of any indemnified party to give notice as provided
herein shall not relieve the indemnifying party of its obligations under
Section 9(a) or (b) hereof, except to the extent that the indemnifying party is
actually prejudiced by such failure to give notice.  In case any such action is brought against an
indemnified party, unless in the reasonable judgment of counsel to such
indemnified party a conflict of interest between such indemnified and
indemnifying parties may exist or the indemnified party may have defenses not available
to the indemnifying party in respect of such claim, the indemnifying party
shall be entitled to participate in and to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party and, after notice
from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party shall not be liable to such
indemnified party for any legal or other expenses subsequently incurred by the
latter in connection with the defense thereof, unless in such indemnified
party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties arises in respect of such claim after the assumption of
the defenses thereof or the indemnifying party fails to defend such claim in a
diligent manner, other than reasonable costs of investigation.  Neither an indemnified nor an indemnifying
party shall be liable for any settlement of any action or proceeding effected
without its consent.  No indemnifying
party shall, without the consent of the 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 of such claim or
litigation.  Notwithstanding anything to
the contrary set forth herein, and without limiting any of the rights set forth
above, in any event any party shall have the right to retain, at its own
expense, counsel with respect to the defense of a claim.

 

(d)                                 In
the event that an indemnifying party does not or is not permitted to assume the
defense of an action pursuant to Section 9(c) or in the case of the expense
reimbursement obligation set forth in Section 9(a) and (b), the indemnification
required by Section 9(a) and (b) hereof shall be made by periodic payments of
the amount thereof during the course of the investigation or defense, as and
when bills received or expenses, losses, damages, or liabilities are incurred.

 

(e)                                  If
the indemnification provided for in this Section 9 is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect
to any loss, liability, claim, damage or expense referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party hereunder,
shall (i) contribute to the amount paid or payable by such indemnified party as
a result of such loss, liability, claim, damage or expense as is

 

9

 

appropriate to reflect the proportionate relative
fault of the indemnifying party on the one hand and the indemnified party on
the other (determined by reference to, among other things, whether the untrue
or alleged untrue statement of a material fact or omission relates to
information supplied by the indemnifying party or the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission), or (ii) if the
allocation provided by clause (i) above is not permitted by applicable law or
provides a lesser sum to the indemnified party than the amount hereinafter
calculated, not only the proportionate relative fault of the indemnifying party
and the indemnified party, but also the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other, as
well as any other relevant equitable considerations.  No indemnified party guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any indemnifying party who was not
guilty of such fraudulent misrepresentation.

 

(f)                                    Other
Indemnification.  Indemnification
similar to that specified in the preceding subsections of this Section 9 (with
appropriate modifications) shall be given by the Company and each Holder of
Registrable Securities with respect to any required registration or other
qualification of securities under any federal or state law or regulation or
governmental authority other than the Securities Act.

 

10.                                 Miscellaneous

 

(a)                                  Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Oregon and the United States of America, both
substantive and remedial. Any judicial proceeding brought against either of the
parties to this agreement or any dispute arising out of this Agreement or any
matter related hereto may be brought in the courts of the State of Oregon or in
the United States District Court for the District of Oregon and, by its
execution and delivery of this agreement, each party to this Agreement accepts
the jurisdiction of such courts. The foregoing consent to jurisdiction shall
not be deemed to confer rights on any person other than the parties to this
Agreement.

 

(b)                                 Successors
and Assigns.  Except as otherwise
provided herein, the provisions hereof shall inure to the benefit of, and be
binding upon, the successors, Permitted Assigns, executors and administrators
of the parties hereto.  In the event the
Company merges with, or is otherwise acquired by, a direct or indirect
subsidiary of a publicly traded company, the Company shall condition the merger
or acquisition on the assumption by such parent company of the Company’s
obligations under this Agreement.

 

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

 

(d)                                 Notices,
etc. All notices or other communications which are required or permitted
under this Agreement shall be in writing and sufficient if delivered by hand,
by facsimile transmission, by registered or certified mail, postage pre-paid,
by electronic mail, or by courier or overnight carrier, to the persons at the
addresses set forth below (or at such other address as may be provided
hereunder), and shall be deemed to have been delivered as of the date so
delivered:

 

	
  If
  to the Company:

  	
  Bioject
  Medical Technologies Inc.

  
	
   

  	
  211
  Somerville Road (Route 202 North)

  
	
   

  	
  Bedminster,
  New Jersey 07921

  
	
   

  	
  Attention:
  Chief Financial Officer

  
	
   

  	
  Facsimile:
  (908) 470-2800

  
	
   

  	
  e-mail:
  jgandolfo@bioject.com

  

 

10

 

	
  If
  to the Purchasers:

  	
  To
  each Purchaser at the address

  
	
   

  	
  set
  forth on Exhibit A

  
	
   

  	
   

  
	
   

  	
   

  
	
  with
  a copy to:

  	
  LOF
  Partners, LLC

  
	
   

  	
  c/o
  Sanders Morris Harris Inc.

  
	
   

  	
  126
  East 56th Street, 24th Floor

  
	
   

  	
  New
  York, New York 10022

  
	
   

  	
  Attention:
  Chief Investment Officer

  
	
   

  	
  Facsimile:
  (212)-419-3900

  
	
   

  	
  e-mail:
  james.gale@smhgroup.com

  

 

or
at such other address as any party shall have furnished to the other parties in
writing.

 

(e)                                  Delays
or Omissions.  No delay or omission
to exercise any right, power or remedy accruing to any Holder of any
Registrable Securities, upon any breach or default of the Company under this
Agreement, shall impair any such right, power or remedy of such Holder nor
shall it be construed to be a waiver of any such breach or default, or an
acquiescence therein, or of or in any similar breach or default thereunder
occurring; nor shall any waiver of any single breach or default be deemed a
waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of
any kind or character on the part of any Holder of any breach or default under
this Agreement, or any waiver on the part of any Holder of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing.  All remedies, either under this Agreement, or
by law or otherwise afforded to any holder, shall be cumulative and not
alternative.

 

(f)                                    Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be enforceable against the parties
actually executing such counterparts, and all of which together shall
constitute one instrument.

 

(g)                                 Severability.
In the case any provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

(h)                                 Amendments.
The provisions of this Agreement may be amended at any time and from time to
time, and particular provisions of this Agreement may be waived, with and only
with an agreement or consent in writing signed by the Company and by the
holders of an 80% majority of the number of shares of Registrable Securities
outstanding as of the date of such amendment or waiver. The Purchasers
acknowledge that by the operation of this Section 10(h), the holders of an 80%
majority of the outstanding Registrable Securities may have the right and power
to diminish or eliminate all rights of the Purchasers under this Agreement.

 

(i)                                     Limitation
on Subsequent Registration Rights. 
After the date of this Agreement, the Company shall not, without the
prior written consent of the Holders of at least a majority of the Registrable
Securities then outstanding, enter into any agreement with any holder or
prospective holder of any securities of the Company that would grant such
holder registration rights senior to those granted to the Holders hereunder.

 

11

 

This
Registration Rights Agreement is hereby executed as of the date first above
written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  BIOJECT
  MEDICAL TECHNOLOGIES

  
	
   

  	
   INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ John P. Gandolfo

  	
   

  
	
   

  	
  Its:

  	
  CFO

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  LIFE
  SCIENCES OPPORTUNITIES FUND II, L.P.

  
	
   

  	
  LIFE
  SCIENCES OPPORTUNITIES FUND II (INSTITUTIONAL), L.P.

  
	
   

  	
   

  
	
   

  	
  By: LOF PARTNERS, LLC, general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James C. Gale

  	
   

  
	
   

  	
  Its: Manager

  

 

12Exhibit 10.3

 

NEITHER
THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON ITS EXERCISE HAVE
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD,
OR OTHERWISE TRANSFERRED, PLEDGED, OR HYPOTHECATED UNLESS (I) PURSUANT TO
REGISTRATION UNDER THE SECURITIES ACT OR (II) IN COMPLIANCE WITH AN EXEMPTION
THEREFROM AND ACCOMPANIED, IF REQUESTED BY BIOJECT MEDICAL TECHNOLOGIES INC.,
WITH AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
TRANSFER IS IN COMPLIANCE WITH AN EXEMPTION THEREFROM.

 

	
  Warrant No. BB-      

  	
  Number of Shares:           

  
	
   

  	
  (subject to adjustment)

  
	
  Date of Issuance: November 15, 2004

  	
   

  

 

WARRANT

 

To Purchase Common Stock of

 

BIOJECT MEDICAL TECHNOLOGIES INC.

 

Expiring on November 14, 2008

 

THIS
IS TO CERTIFY THAT, for value received,                                           ,
a                            
(the “Registered Holder”), or its permitted assigns, is entitled to purchase
from BIOJECT MEDICAL TECHNOLOGIES INC., an Oregon corporation (the “Company”),
at the place where the Warrant Office designated pursuant to Section 2.1 is
located, at a purchase price per share of $1.15 (as adjusted pursuant to the
terms of this Warrant, the “Exercise Price”),                   
shares of duly authorized, validly issued, fully paid and nonassessable shares
of Common Stock, no par value per share (“Common Stock”), of the
Company, and is entitled also to exercise the other appurtenant rights, powers
and privileges hereinafter set forth. The number of shares of the Common Stock
purchasable hereunder and the Exercise Price are subject to adjustment in
accordance with Article III hereof. This Warrant shall expire at 5:00 p.m., New
York time, on November 14, 2008.

 

Certain Terms used in this Warrant are defined in
Article IV.

 

ARTICLE
I

 

Exercise
of Warrant

 

1.1           Method of Exercise.  This Warrant may be exercised by the
Registered Holder as a whole or in part from time to time until November 14,
2008, at which time this Warrant shall expire and be of no further force or
effect; provided, however, that the minimum number of Warrant Shares that may
be purchased on a single exercise shall be 10,000 or the entire number of
shares remaining available for exercise hereunder, whichever is less.  To exercise this Warrant, the Registered
Holder or permitted assignees of all rights of the Registered Holder shall
deliver to the Company, at the Warrant Office designated in Section 2.1(a), a
written notice in the form of the Purchase Form attached as Exhibit A hereto,
stating therein the election of the Registered Holder or such permitted
assignees of the Registered Holder to exercise this Warrant in the manner
provided in the Purchase Form, (b) payment in full of the Exercise Price (in
the manner described below) for all Warrant Shares purchased hereunder, and (c)
this Warrant.  Subject to compliance with
Section 3.1(a)(vii), this Warrant shall be deemed to be exercised on the date
of receipt by the Company of the Purchase Form, accompanied by payment for the
Warrant Shares to be purchased and surrender of this Warrant, as aforesaid, and
such date is referred to herein as the “Exercise Date.”  Upon such exercise (subject as aforesaid),
the Company shall issue and deliver to the Registered Holder a certificate for
the full number of the Warrant Shares purchasable by the Registered Holder
hereunder, against the receipt by the Company of the total Exercise Price
payable hereunder for all such Warrant Shares, in cash or by certified or

 

1

 

cashier’s check.  The Person in
whose name the certificate(s) for Common Stock is to be issued shall be deemed
to have become a holder of record of such Common Stock on the Exercise Date.

 

1.2           Fractional Shares.  No fractional shares of Common Stock shall be
issued upon exercise of this Warrant. Instead of any fractional shares of
Common Stock that would otherwise be issuable upon exercise of this Warrant,
the Company shall pay a cash adjustment in respect of such fractional interest
equal to the fair market value of such fractional interest as determined in
good faith by the Board of Directors.

 

1.3           Purchase of
Warrants by the Company.  The Company
shall have the right, except as limited by law, other agreement, or herein, to
purchase or otherwise acquire Warrants at such time, in such manner, and for
such consideration as it may deem appropriate.

 

1.4           Early Termination
of Warrants by the Company.  In the
event that, at any time prior to November 14, 2008, when a registration
statement with respect to the Warrant Shares is effective and the VWAP of the
Common Stock exceeds $2.25 per share for any period of 20 consecutive Trading
Days, the Company will have the right, by giving written notice within five
days of the end of such 20-day period to the Registered Holder of this Warrant,
to provide that the Warrants not exercised on or before a date not less than 30
days following the date of such notice shall expire and cease to have any rights
whatsoever; provided that a registration statement with respect to the Warrant
Shares is continuously effective from the first of such 20 consecutive Trading
Days until the date fixed for expiration of the Warrants.

 

1.5           Cancellation of
Warrants.  In the event the Company
shall purchase or otherwise acquire the Warrants, the same shall thereupon be
cancelled by it and retired.

 

ARTICLE II

 

Warrant Office; Transfer

 

2.1           Warrant Office.  The Company shall maintain an office for
certain purposes specified herein (the “Warrant Office”), which office
shall initially be the Company’s office at 211 Somerville Road, Route 202
North, Bedminster, New Jersey 07921, and may subsequently be such other office
of the Company or of any transfer agent of the Common Stock in the continental
United States of which written notice has previously been given to the
Registered Holder.  The Company shall
maintain, at the Warrant Office, a register for the Warrant in which the
Company shall record the name and address of the Registered Holder, as well as
the name and address of each permitted assignee of the rights of the Registered
Holder.

 

2.2           Ownership of
Warrant.  The Company may deem and
treat the Registered Holder as the holder and owner hereof (notwithstanding any
notations of ownership or writing hereon made by anyone other than the Company)
for all purposes and shall not be affected by any notice to the contrary, until
presentation of this Warrant for registration of transfer as provided in this
Article II.

 

2.3           Transfer of
Warrants.  The Company agrees to
maintain at the Warrant Office books for the registration and transfer of this
Warrant.  Subject to the restrictions on
transfer of Warrants in Section 2.8, the Company, from time to time, shall
register the transfer of this Warrant in such books upon surrender of this
Warrant at the Warrant Office, properly endorsed, together with a written
assignment of this Warrant, substantially in the form of the Assignment
attached as Exhibit B hereto. Upon any such transfer, a new Warrant
shall be issued to the transferee, and the Company shall cancel the surrendered
Warrant.  The Registered Holder shall pay
all taxes and all other expenses and charges payable in connection with the
transfer of Warrants pursuant to this Section 2.3.

 

2.4           Registration
Rights.  The Company agrees (a) that
the Warrant Shares shall be “Registrable Securities” under the
Registration Rights Agreement (the “Registration Rights Agreement”)
between the Company and the purchasers of shares of Series D Preferred Stock of
the Company issued and sold pursuant to the terms of the Purchase Agreement
dated as of November 15, 2004, between the Company and the purchasers of such
shares. and (b) that the Registered Holder shall have the rights and
obligations of a Holder set forth on the Registration Rights Agreement.

 

2

 

2.5           Acknowledgement
of Rights.  The Company will, at the
time of exercise of this Warrant in accordance with the terms hereof, upon
request of the Registered Holder, acknowledge in writing its continuing
obligation to afford to such holder any rights (including without limitation,
any right to registration of the Warrant Shares) to which such holder shall
continue to be entitled after such exercise in accordance with the provisions
of this Warrant, provided that if the holder of this Warrant shall fail to make
any such request, such failure shall not affect the continuing obligation of
the Company to afford to such holder any such rights.

 

2.6           No Rights as Shareholder
Until Exercise.  This Warrant does
not entitle the Registered Holder to any voting rights or other rights as a
shareholder of the Company prior to the exercise hereof.  Upon the surrender of this Warrant and the
payment of the aggregate Exercise Price, the Warrant Shares so purchased shall
be and be deemed to be issued to the Registered Holder as the record owner of
such shares as of the close of business on the Exercise Date.

 

2.7           Expenses of
Delivery of Warrants.  Except as
provided in Section 2.3 above, the Company shall pay all reasonable expenses,
taxes (other than transfer taxes), and other charges payable in connection with
the preparation, issuance and delivery of Warrants and related Warrant Shares
hereunder.

 

2.8           Compliance with Securities Laws.  The Registered Holder (and its transferees
and assigns), by acceptance of this Warrant, covenants and agrees that such
Registered Holder is acquiring the Warrants evidenced hereby, and, upon
exercise hereof, the Warrant Shares, for its own account as an investment and
not with a view to distribution thereof. 
Neither this Warrant nor the Warrant Shares issuable hereunder have been
registered under the Securities Act or any state securities laws and no transfer
of this Warrant or any Warrant Shares shall be permitted unless the Company has
received notice of such transfer in the form of the assignment attached hereto
as Exhibit B, accompanied, if requested by the Company, by an opinion of
counsel reasonably satisfactory to the Company that an exemption from
registration of such Warrant or Warrant Shares under the Securities Act is
available for such transfer, except that no such opinion shall be required with
respect to the Warrant Shares after the registration for resale of the Warrant
Shares has become effective if the Warrant Shares are sold pursuant to the
registration statement.  Upon any
exercise of the Warrants prior to effective registration for resale or except
as in accordance with Rule 144 under the Securities Act, certificates
representing the Warrant Shares shall bear a restrictive legend substantially
identical to that set forth as follows:

 

“The
securities represented by this certificate have not been registered under the
Securities Act of 1933, as amended, or the securities laws of any state
(collectively, the “Acts”).  Neither the
shares nor any interest therein may be offered, sold, transferred, pledged, or
otherwise disposed of in the absence of an effective registration statement
with respect to the shares under all of the applicable Acts, or an opinion of
counsel satisfactory to Bioject Medical Technologies Inc. to the effect that
such registrations are not required.”

 

(c)           Any purported transfer of the Warrant
or Warrant Shares not in compliance with the provisions of this section shall
be null and void.  Stop transfer
instructions have been or will be imposed with respect to the Warrant Shares so
as to restrict resale or other transfer thereof, subject to this Section 2.8.

 

ARTICLE
III

 

Anti-Dilution
Provisions

 

3.1           Adjustment of Exercise Price and
Number of Warrant Shares.  The
Exercise Price shall be subject to adjustment from time to time as hereinafter
provided in this Article III.  Upon each
adjustment of the Exercise Price, except pursuant to Sections 3.1(a)(iii) and
(iv), the Registered Holder shall thereafter be entitled to purchase, at the
Exercise Price resulting from such adjustment, the number of shares of the
Common Stock obtained by multiplying the Exercise Price in effect immediately
prior to such adjustment by the number of shares of the Common Stock
purchasable pursuant hereto immediately prior to such adjustment and dividing
the product thereof by the Exercise Price resulting from such adjustment.

 

(a)           Exercise Price Adjustments.  The Exercise Price shall be subject to
adjustment from time to time as follows:

 

3

 

(i)            Adjustment for Stock Splits and
Combinations. If the Company shall, at any time or from time to time after
the date hereof (the “Original Issue Date”) while this Warrant remains
outstanding, effect a subdivision of the outstanding Common Stock, the Exercise
Price in effect immediately before such subdivision shall be proportionately
decreased.  Conversely, if the Company shall
at any time or from time to time after the Original Issue Date combine the
outstanding shares of Common Stock into a smaller number of shares, the
Exercise Price in effect immediately before such combination shall be
proportionately increased.  Any adjustment
under this Section 3.1(a)(i) shall become effective at the close of business on
the date the subdivision or combination becomes effective.

 

(ii)           Adjustment for Common Stock
Dividends and Distributions.  If the
Company, at any time or from time to time after the Original Issue Date while
this Warrant remains outstanding makes, or fixes a record date for the
determination of holders of Common Stock entitled to receive, a dividend or
other distribution payable in additional shares of Common Stock, in each such
event the Exercise Price that is then in effect shall be decreased as of the
time of such issuance or, in the event such record date is fixed, as of the
close of business on such record date, by multiplying the Exercise Price then
in effect by a fraction (i) the numerator of which is the total number of
shares of Common Stock issued and outstanding immediately prior to the time of
such issuance or the close of business on such record date, and (ii) the
denominator of which is the total number of shares of Common Stock issued and
outstanding immediately prior to the time of such issuance or the close of
business on such record date plus the number of shares of Common Stock issuable
in payment of such dividend or distribution; provided, however,
that if such record date is fixed and such dividend is not fully paid or if
such distribution is not fully made on the date fixed therefor, the Exercise
Price shall be recomputed accordingly as of the close of business on such
record date, and thereafter the Exercise Price shall be adjusted pursuant to
this Section 3.1(a)(ii) to reflect the actual payment of such dividend or
distribution.

 

(iii)          Adjustment for Reclassification,
Exchange, and Substitution.  If at
any time or from time to time after the Original Issue Date while this Warrant
remains outstanding, the Common Stock is changed into the same or a different
number of shares of any class or classes of stock, whether by recapitalization,
reclassification, or otherwise (other than an Acquisition, Asset Transfer,
subdivision or combination of shares, stock dividend, reorganization, merger,
consolidation, or sale of assets provided for elsewhere in this Section
3.1(a)), in any such event the Registered Holder shall have the right
thereafter to convert such stock into the kind and amount of stock and other
securities and property receivable upon such recapitalization, reclassification
or other change by holders of the maximum number of shares of Common Stock into
which such shares of Common Stock could have been converted immediately prior
to such recapitalization, reclassification or change, all subject to further
adjustment as provided herein or with respect to such other securities or
property by the terms thereof.

 

(iv)          Reorganizations, Mergers,
Consolidations, or Sales of Assets. 
If at any time or from time to time after the Original Issue Date while
this Warrant remains outstanding, there is a capital reorganization of the
Company, an Acquisition, an Asset Transfer (other than a recapitalization, or
subdivision, combination, reclassification, exchange, or substitution of shares
provided for elsewhere in this Section 3.1(a)), as a part of such capital
reorganization, Acquisition, or Asset Transfer, provision shall be made so that
the Registered Holder shall thereafter be entitled to receive upon exercise
hereof the number of shares of stock or other securities or property to which a
holder of the number of shares of Common Stock deliverable upon exercise
immediately prior to such event would have been entitled as a result of such
capital reorganization, subject to adjustment in respect of such stock or
securities by the terms thereof.  In any
such case, appropriate adjustment shall be made in the application of the
provisions of this Section 3.1(a) with respect to the rights of the Registered
Holder after the capital reorganization, Acquisition, or Asset Transfer to the
end that the provisions of this Section 3.1(a) (including adjustment of the
Exercise Price then in effect and the number of shares issuable upon exercise)
shall be applicable after that event and be as nearly equivalent as
practicable.

 

(v)           Distributions of Securities.  In case of any distribution of any security
(including rights or warrants to subscribe for any such secur­ities) of the
Company (except Common Stock), evidences of its indebtedness, cash, or other
assets to all of the holders of its Common Stock, then in each such case the
Exercise Price in effect thereafter shall be determined by multiplying the
Exercise Price in effect immediately prior thereto by a fraction, the numerator
of which shall be the total number of outstanding

 

4

 

shares
of Common Stock multiplied by the Current Market Price on the record date
mentioned below, less the fair market value (as determined in good faith by the
Board of Directors) of the securities, evidences of indebtedness, cash, or
other assets distributed by the Company, and the denominator of which shall be
the total number of outstanding shares of Common Stock multiplied by the
Current Market Price; such adjustment shall become effective as of the record
date for the determination of shareholders entitled to receive such
distribution. The subdivision or combination of shares of Common Stock issuable
upon exercise of this Warrant at any time outstanding into a greater or lesser
number of shares of Common Stock shall not be deemed to be a reclassifica­tion
of the Common Stock of the Company of this clause (v).

 

(vi)          Rounding of Calculations; Minimum
Adjustment.  All calculations under
this Section 3.1(a) and under Section 3.1(b) shall be made to the nearest
cent.  Any provision of this Section 3.1
to the contrary notwithstanding, no adjustment in the Exercise Price shall be
made if the amount of such adjustment would be less than one percent, but any
such amount shall be carried forward and an adjustment with respect thereto
shall be made at the time of and together with any subsequent adjustment which,
together with such amount and any other amount or amounts so carried forward,
shall aggregate one percent or more.

 

(vii)         Timing of Issuance of Additional
Common Stock Upon Certain Adjustments. 
In any case in which the provisions of this Section 3.1(a) shall require
that an adjustment shall become effective immediately after a record date for
an event, the Company may defer until the occurrence of such event issuing to
the Registered Holder after such record date and before the occurrence of such
event the additional shares of Common Stock or other property issuable or
deliverable upon exercise by reason of the adjustment required by such event
over and above the shares of Common Stock or other property issuable or
deliverable upon such exercise before giving effect to such adjustment; provided,
however, that the Company upon request shall deliver to such Registered
Holder a due bill or other appropriate instrument evidencing such Registered
Holder’s right to receive such additional shares or other property, and such
cash, upon the occurrence of the event requiring such adjustment.

 

(viii)        Voluntary Adjustment by the Company.  The Company may at any time during the term
of this Warrant, reduce the then current Exercise Price to any amount and for
any period of time deemed appropriate by the Board of Directors, in its sole
discretion.

 

(b)           Statement Regarding Adjustments.  Whenever the Exercise Price shall be adjusted
as provided in Section 3.1(a), and upon each change in the number of shares of
the Common Stock issuable upon exercise of this Warrant, the Company shall
forthwith file, at the office of any transfer agent for this Warrant and at the
principal office of the Company, a statement showing in detail the facts
requiring such adjustment and the Exercise Price and new number of shares
issuable that shall be in effect after such adjustment, and the Company shall
also cause a copy of such statement to be given to the Registered Holder.  Each such statement shall be signed by the
Company’s chief financial or accounting officer.  Where appropriate, such copy may be given in
advance and may be included as part of a notice required to be mailed under the
provisions of Section 3.1(c).

 

(c)           Notice to Holders.  In the event the Company shall propose to
take any action of the type described in clause (iii) or (iv) of Section
3.1(a), the Company shall give notice to the Registered Holder, in the manner
set forth in Section 6.6, which notice shall specify the record date, if any,
with respect to any such action and the approximate date on which such action
is to take place.  Such notice shall also
set forth such facts with respect thereto as shall be reasonably necessary to
indicate the effect of such action (to the extent such effect may be known at
the date of such notice) on the Exercise Price and the number, kind or class of
shares or other securities or property which shall be deliverable upon exercise
of this Warrant.  In the case of any
action which would require the fixing of a record date, such notice shall be
given at least 10 days prior to the date so fixed, and in case of all other
action, such notice shall be given at least 15 days prior to the taking of such
proposed action.  Failure to give such
notice, or any defect therein, shall not affect the legality or validity of any
such action.

 

3.2           Costs.  The Registered Holder shall pay all
documentary, stamp, transfer or other transactional taxes attributable to the
issuance or delivery of the Warrant Shares upon exercise of this Warrant.  Additionally, the Company shall not be
required to pay any taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificate for such Warrant
Shares.  The Registered Holder shall
reimburse the Company for any such taxes assessed against the Company.

 

5

 

3.3           Reservations of Shares.  The Company shall reserve at all times so
long as this Warrant remains outstanding, free from preemptive rights, out of
its authorized but unissued shares of Common Stock, solely for the purpose of
effecting the exercise of this Warrant, sufficient shares of Common Stock to
provide for the exercise hereof.

 

3.4           Valid Issuance.  All shares of Common Stock which may be
issued upon exercise of this Warrant will upon issuance by the Company be duly
and validly issued, fully paid and nonassessable and free from all taxes, liens
and charges with respect to the issuance thereof attributable to any act or
omission by the Company, and the Company shall take no action which will cause
a contrary result (including without limitation, any action which would cause
the Exercise Price to be less than the par value, if any, of the Common Stock).

 

ARTICLE IV

 

Terms Defined

 

As used in
this Warrant, unless the context otherwise requires, the following terms have
the respective meanings set forth below or in the Section indicated:

 

Acquisition means the acquisition of the
Company by another person or entity or group of affiliated persons or entities
by means of any transaction or series of related transactions (including,
without limitation, any reorganization, merger, or consolidation but excluding
any merger effected exclusively for the purpose of changing the domicile of the
Company) that results in the transfer of more than 50% of the outstanding
voting power of the Company.

 

Asset Transfer means the sale, lease, or other
transfer of all or substantially all of the assets of the Corporation

 

Board of Directors means the Board of
Directors of the Company.

 

Common Stock means the Company’s authorized
Common Stock, no par value per share.

 

Company means Bioject Medical Technologies Inc.,
an Oregon corporation, and any other corporation assuming or required to assume
the obligations undertaken in connection with this Warrant.

 

Current Market Price means the arithmetic
average of the daily VWAPs per share of the Common Stock on the Principal
Market for the 20 consecutive Trading Days ending on and including the
Trading Day immediately prior to the date in question. If the Current Market
Price cannot be determined under the foregoing method, the Current Market Price
shall mean the fair value per share of Common Stock on such date as determined
by the Board of Directors in good faith, irrespective of any accounting
treatment.

 

Exchange Act means the Securities and Exchange
Act of 1934, as amended.

 

Exercise Date is defined in Section 1.1.

 

Exercise Price is defined in the Preamble.

 

Majority Holders means at any time Registered
Holders of Warrant Shares which shares constitute a majority of the outstanding
Warrant Shares.

 

Original Issue Date is defined in Section
3.1(a)(i).

 

Outstanding means when used with reference to
Common Stock at any date, all issued shares of Common Stock (including, but
without duplication, shares deemed issued pursuant to Article III) at such
date.

 

Person means any individual, corporation,
partnership, trust, organization, association or other entity.

 

6

 

Principal Market means whichever of (a) the
national securities exchange, (b) the Nasdaq Stock Market, or (c) such other
securities market on which the Common Stock is listed for trading which at such
time constitutes the principal securities market for the Common Stock.

 

Registered Holder is defined in the Preamble.

 

Securities Act means the Securities Act of
1933 and the rules and regulations promulgated thereunder, all as the same
shall be in effect at the time.

 

Trading Day means a day on whichever of (a)
the national securities exchange, (b) the Nasdaq Stock Market, or (c) such
other securities markets, in any case which at the time constitutes the
Principal Market for the Common Stock, is open for general trading of
securities.

 

VWAP of the Common Stock on any Trading Day
means the volume-weighted average price of the Common Stock on the Principal
Market, as reported by Bloomberg Financial, L.P. (based on a Trading Day from
9:30 a.m., Eastern Time, to 4:00 p.m., Eastern Time, using the AQR function,
for such Trading Day; provided, however, if the volume-weighted average price
of the Common Stock on the Principal Market is not reported by Bloomberg
Financial, L.P., it will be determined by (a) using all regular way trades
(including sold sales and late sales) reported by the appropriate reporting
authority from 9:30 a.m., Eastern Time, to 4:00 p.m., Eastern Time, (b)
multiplying each respective reported price by the total number of shares traded
at that price, (c) adding together each of these calculated values to compile
an aggregate sum, and (d) dividing the aggregate sum by the total number of
reported shares that appear in the prints included in step (a); and provided,
further, during any period the VWAP is being determined, the VWAP shall be
subject to equitable adjustments form time to time on terms consistent with
Section 3.1(a) and otherwise reasonably acceptable to the Majority Holders for
(s) stock splits, (t) stock dividends, (u) combinations, (v) capital
reorganizations, (w) issuance to all holders of Common Stock of rights or
warrants to purchase shares of Common Stock, (x) distribution by the Company to
all holders of Common Stock of evidences of indebtedness of the Company or cash
(other than regular quarterly dividends), (y) tender offers by the Company or
any subsidiary for, or other repurchases of shares of, Common Stock in one or
more transactions which, individually or in the aggregate, result in the purchase
of more than ten percent of the Common Stock outstanding, and (z) similar
events relating to the Common Stock, in each case which occur, or with respect
to which “ex-” trading of the Common Stock begins, during such period. If on
any Trading Day there is no reported sale of Common Stock, the VWAP will not be
determinable for such day.

 

Warrant means this Warrant and any successor
or replacement Warrant delivered in accordance with Section 2.3 or 6.8.

 

Warrant Office is defined in Section 2.1.

 

Warrant Shares means the shares of Common
Stock purchased or purchasable by the Registered Holder, or the permitted
assignees of such Registered Holder, upon exercise of this Warrant pursuant to
Article I hereof.

 

ARTICLE V

 

Covenant of the Company

 

The Company
covenants and agrees that this Warrant shall be binding upon any corporation
succeeding to the Company by merger, consolidation, or acquisition of all or
substantially all of the Company’s assets.

 

ARTICLE VI

 

Miscellaneous

 

6.1           Entire Agreement.  This Warrant and the Registration Rights
Agreement contain the entire agreement between the Registered Holder and the
Company with respect to the Warrant Shares that it can purchase upon exercise
hereof and the related transactions and supersedes all prior arrangements or
understanding with respect thereto.

 

7

 

6.2           Governing Law.  This Warrant shall be governed by and
construed in accordance with the internal laws of the State of Oregon, without
regard to its conflict of law provisions.

 

6.3           Waiver and Amendment.  Any term or provision of this Warrant may be
waived at any time by the party which is entitled to the benefits thereof, and
any term or provision of this Warrant may be amended or supplemented at any
time by written consent of the parties (it being agreed that an amendment to or
waiver under any of the provisions of Article III of this Warrant shall not be
considered an amendment of the number of Warrant Shares or the Exercise Price).  No waiver by any party of
any default, misrepresentation, or breach of warranty or covenant hereunder,
whether intentional or not, shall be deemed to extend to any prior or
subsequent default, misrepresentation, or breach of warranty or covenant
hereunder or affect in any way any rights arising because of any prior or
subsequent such occurrence.

 

6.4           Illegality.  In the event that any one or more of the
provisions contained in this Warrant shall be determined to be invalid, illegal
or unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in any other respect and the remaining
provisions of this Warrant shall not, at the election of the party for whom the
benefit of the provision exists, be in any way impaired.

 

6.5           Copy of Warrant.  A copy of this Warrant shall be filed among
the records of the Company.

 

6.6           Notice.  Any notice or other document required or
permitted to be given or delivered to the Registered Holder shall be delivered
at, or sent by certified or registered mail to such Registered Holder at, the
last address shown on the books of the Company maintained at the Warrant Office
for the registration of this Warrant or at any more recent address of which the
Registered Holder shall have notified the Company in writing.  Any notice or other document required or
permitted to be given or delivered to the Company, other than such notice or
documents required to be delivered to the Warrant Office, shall be delivered
at, or sent by certified or registered mail to, the office of the Company at
211 Somerville Road, Route 202 North, Bedminster, New Jersey 07921 or any other
address within the continental United States of America as shall have been
designated in writing by the Company delivered to the Registered Holder.

 

6.7           Limitation of Liability; Not
Stockholders.  Subject to the
provisions of Article III, until the exercise of this Warrant, the Registered
Holder shall not have or exercise any rights by virtue hereof as a stockholder
of the Company, including, without limitation, the right to vote, to receive
dividends and other distributions, or to receive notice of, or attend meetings
of stockholders or any other proceedings of the Company.  Until the exercise of this Warrant, no
provision hereof, and no mere enumeration herein of the rights or privileges of
the Registered Holder, shall give rise to any liability of such Registered
Holder for the purchase price of any shares of Common Stock or as a stockholder
of the Company, whether such liability is asserted by the Company or by
creditors of the Company.

 

6.8           Exchange, Loss, Destruction, etc.
of Warrant.  Upon receipt of evidence
satisfactory to the Company (an affidavit of the Registered Holder shall be
satisfactory evidence) of the loss, theft, mutilation or destruction of this
Warrant, and, in the case of any such loss, theft or destruction, upon delivery
of a bond of indemnity in such form and amount as shall be reasonably
satisfactory to the Company, or, in the event of such mutilation upon surrender
and cancellation of this Warrant, the Company will make and deliver a new
Warrant of like tenor, in lieu of such lost, stolen, destroyed or mutilated
Warrant; provided, however, that the original Registered Holder
of this Warrant shall not be required to provide any such bond of indemnity and
may in lieu thereof provide his agreement of indemnity.  Any Warrant issued under the provisions of
this Section 6.8 in lieu of any Warrant alleged to be lost, destroyed or
stolen, or in lieu of any mutilated Warrant, shall constitute an original
contractual obligation on the part of the Company.  This Warrant shall be promptly canceled by
the Company upon the surrender hereof in connection with any exchange or
replacement.  The Registered Holder of
this Warrant shall pay all taxes (including securities transfer taxes) and all
other expenses and charges payable in connection with the preparation,
execution and delivery of replacement Warrant(s) pursuant to this Section 6.8.

 

6.9           Headings.  The Article and Section and other headings
herein are for convenience only and are not a part of this Warrant and shall
not affect the interpretation thereof.

 

6.10         Successors and Assigns.  Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the benefit
of and be binding upon the successors of the Company and

 

8

 

the successors and permitted
assigns of Registered Holder.  The
provisions of this Warrant are intended to be for the benefit of all Registered
Holders from time to time of this Warrant and shall be enforceable by any such
Registered Holder or holder of Warrant Shares.

 

IN
WITNESS WHEREOF, the Company has caused this Warrant to be signed in its name.

 

Dated:
November 15, 2004

 

	
   

  	
  BIOJECT
  MEDICAL TECHNOLOGIES INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

9

 

Exhibit
A

 

PURCHASE FORM

 

	
  To:

  	
  Bioject Medical Technologies Inc.

  	
   

  	
  Dated:                ,
  200    

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  211 Somerville Road, Route 202 North

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Bedminster, New Jersey 07921

  	
   

  	
   

  

 

The undersigned,
pursuant to the provisions set forth in the attached Warrant (No.         ),
hereby irrevocably elects to purchase                 
shares of the Common Stock covered by such Warrant.

 

The
undersigned herewith makes payment of the full exercise price for such shares
at the price per share provided for in such Warrant, which is $          
per share in lawful money of the United States.

 

 

	
   

  	
  [                                                                          ]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
					

 

10

 

Exhibit
B

 

ASSIGNMENT

 

For
value received,                                              ,
hereby sells, assigns and transfers unto                                                 
the within Warrant, together with all right, title and interest therein and
does hereby irrevocably constitute and appoin                                                  
attorney, to transfer said Warrant on the books of the Company, with full power
of substitution.

 

 

	
   

  	
   

  
	
  Dated:
                          ,
  200    

  	
   

  
	
   

  	
   

  

 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]