Document:

Exhibit
10.37

 

REGISTRATION
RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT, dated as of
October 17, 2005 (this “Agreement”), is made by and among Sonus
Pharmaceuticals, Inc., a Delaware corporation, with headquarters located at
22026 20th Avenue S.E., Bothell, Washington 98021 (the “Company”), and
Schering AG, a German corporation (“Schering AG”), and Schering Berlin
Venture Corporation, a Delaware corporation (“SBVC”, and collectively
with Schering AG, the “Investor”).

 

RECITALS:

 

A.            In
connection with the Securities Purchase Agreement dated October 17, 2005
between the Investor and the Company (the “Purchase Agreement”), the
Company has agreed, upon the terms and subject to the conditions of the
Purchase Agreement, to issue and sell to the Investor 3,900,000 shares of the
Company’s Common Stock (the “Common Shares”) and a warrant to purchase
up to 975,000 shares of the Company’s Common Stock, subject to adjustment (the
“Warrant” and collectively with the Common Shares, the “Securities”).

 

B.            In order to
induce Investor to execute and deliver the Purchase Agreement, the Company has
agreed to provide certain registration rights under the Securities Act and
applicable state securities laws with respect to the Securities.

 

In consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and
Investor hereby agree as follows:

 

ARTICLE I

DEFINITIONS

 

Capitalized terms used and not otherwise defined
herein have the respective meanings given them set forth in the Purchase
Agreement.  In addition, as used in this
Agreement, the following terms have the following meanings:

 

1.1           “Closing
Date” means the date on which the purchase of the Securities is consummated
pursuant to the Purchase Agreement.

 

1.2           “Common
Shares” means the shares of Common Stock sold pursuant to the Purchase
Agreement.

 

1.3           “Investor”
means Investor and any of its transferees or assignees who agree to become
bound by the provisions of this Agreement in accordance with Article IX hereof.

 

1.4           “Registrable
Securities” means the Common Shares and the Warrant Shares, and any shares
of capital stock issued or issuable from time to time (with any adjustments) in
exchange for or otherwise with respect to the Common Shares or the Warrant
Shares (including shares issued pursuant to Section 2.2 hereof).

 

 

1.5           “Registration
Period” means the period between the date of this Agreement and the earlier
of (i) the date on which (x) all of the Registrable Securities have been sold
by the Investor pursuant to the Registration Statement and (y) are freely
tradable under the Securities Act (except that this clause (y) shall not apply
with respect to Shares sold to affiliates) and no further Registrable
Securities may be issued in the future, (ii) the second anniversary of the last
date on which Warrant Shares are purchased for cash under the Warrant, or (iii)
the date on which all the Registrable Securities may be immediately sold by the
Investor without registration and without restriction as to the number of
Registrable Securities to be sold, pursuant to Rule 144 or otherwise.

 

1.6           “Registration
Statement” means a Registration Statement of the Company filed under the
Securities Act.

 

1.7           The
terms “register,” “registered,” and “registration” refer
to a registration effected by preparing and filing a Registration Statement or
statements in compliance with the Securities Act and pursuant to Rule 415 and
the declaration or ordering of effectiveness of such Registration Statement by
the SEC.

 

1.8           “Rule
415” means Rule 415 under the Securities Act, or any successor Rule
providing for offering securities on a continuous basis, and applicable rules
and regulations thereunder.

 

1.9           “Securities”
means the Common Shares and the Warrant sold pursuant to the Purchase
Agreement.

 

1.10         “Warrant”
means the warrant to purchase shares of the Company’s Common Stock sold
pursuant to the Purchase Agreement.

 

1.11         “Warrant
Shares” means the shares of the Company’s Common Stock that may be
purchased upon exercise of the Warrant.

 

ARTICLE II

REGISTRATION

 

2.1           Demand
Registration. If at anytime prior to the expiration of the Registration
Period and after the six month anniversary of this Agreement, any Registrable
Securities shall not have been registered by the Company pursuant to Section
2.3 hereof, then Investor shall have the right by delivery of written notice to
the Company, to request that the Company effect a registration on Form S-3
covering the resale of the Registrable Securities not previously registered
pursuant to Section 2.3; provided, however, that the Company shall not be
obligated to effect any such registration if (i) Investor proposes to sell less
than all of the Registrable Securities held by Investor at an aggregate price
to the public of less than $5,000,000, (ii) during the period starting with the
date thirty (30) days prior to the Company’s good faith estimate of the date of
filing of, and ending on a date ninety (90) days after the effective date of, a
Company-initiated registration; provided that the Company is actively employing
in good faith all reasonable efforts to cause such registration statement to
become effective, (iii) in the event that the Company has, within the six (6)
month period preceding the date of such request, already effected a
registration on Form S-3 for Investor pursuant to this Section 2.1, or (iv) (A)
in the good faith judgment of the Board of Directors of the Company, such
registration would be seriously detrimental to the Company and the Board of
Directors of the Company concludes, as a result, that it is essential to defer
the filing of such registration statement at such time,

 

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and (B) the Company shall furnish to Investor a
certificate signed by the President of the Company stating that in the good
faith judgment of the Board of Directors of the Company, it would be seriously
detrimental to the Company for such registration statement to be filed in the
near future and that it is, therefore, essential to defer the filing of such
registration statement, then the Company shall have the right to defer such
filing for a period of not more than ninety (90) days after receipt of the
request of Investor, and, provided further, that the Company shall not defer
its obligation in this manner more than once in any twelve-month period.  The date on which the Company receives such
notice is referred to herein as the “Demand Date.”  In the event that Form S-3 is unavailable
and/or inappropriate for such a registration of all the Registrable Securities,
the Company shall use such other form or forms as are available and appropriate
for such a registration, subject to the consent of the Investor, which shall
not be unreasonably withheld.

 

2.2           Filing
and Effectiveness of the Registration Statement.  The Company will use its best efforts to file
with the SEC a Registration Statement registering all of the Registrable
Securities requested by Investor pursuant to Section 2.1 for resale within 20
days after the Demand Date and to cause the Registration Statement to be
declared effective by the SEC as soon as practicable after filing, and in any
event no later than the 90th day after the Demand Date (the “Required
Effective Date”).  However, so long
as the Company filed the applicable Registration Statement within 20 days after
the Demand Date, (a) if the SEC takes the position that registration of the
resale of the Registrable Securities by Investor is not available under
applicable laws, rules and regulation and that the Company must register the
offering of the Registrable Securities as a primary offering by the Company, or
(b) if a Registration Statement receives SEC review, then the Required
Effective Date will be the 120th day after the Demand Date.  In the case of an SEC response described in
clause (a), the Company will, within 40 business days after the date the
Company receives such SEC response, file a Registration Statement as a primary
offering.  The Company’s best efforts
will include, but not be limited to, promptly responding to all comments
received from the staff of the SEC.  If
the Company receives notification from the SEC that any Registration Statement
will receive no action or review from the SEC, then the Company will file with
the SEC a request for acceleration in accordance with Rule 461 promulgated
under the Securities Act and cause such Registration Statement to become
effective within five business days after such SEC notification.  Once a Registration Statement is declared
effective by the SEC, the Company will cause such Registration Statement to
remain effective throughout the Registration Period, except as permitted under
Section 3.

 

2.3           Piggyback
Registrations.

 

(a)           If,
at any time prior to the expiration of the Registration Period, (i) a
Registration Statement contemplated in Section 2.1 above is not declared
effective with respect to all of the Registrable Securities to which it applies
and the Company decides to register any of its securities for its own account or
for the account of others, or (ii) even if a Registration Statement
contemplated in Section 2.1 above is declared effective, if the Company decides
to register shares of Common Stock in an underwritten offering for its own
account, then the Company will promptly give Investor written notice thereof
and will use its best efforts to include in such registration all or any part
of the Registrable Securities requested by Investor to be included therein
(excluding any Registrable Securities previously included in a Registration
Statement which has been declared effective and has not been withdrawn, unless
the Company registration is an underwritten offering).  This requirement does not apply to Company
registrations on Form S-4 or S-8 or their equivalents relating to equity
securities to be issued solely in connection with an acquisition of any entity
or business or equity securities issuable in connection with stock option or
other employee benefit

 

3

 

plans.  Investor
must give its request for registration under this paragraph to the Company in
writing within 15 days after receipt from the Company of notice of such pending
registration.  If the registration for
which the Company gives notice is a public offering involving an underwriting,
the Company will so advise Investor as part of the above-described written
notice.  In that event, if the managing
underwriter(s) of the public offering impose a limitation on the number of
shares of Common Stock that may be included in the Registration Statement
because, in such underwriter(s)’ judgment, such limitation would be necessary
to effect an orderly public distribution, then the Company will be obligated to
include only such limited portion, if any, of the Registrable Securities with
respect to which Investor has requested inclusion hereunder.  Any exclusion of Registrable Securities will
be made pro rata among all holders of the Company’s securities seeking to
include shares of Common Stock in proportion to the number of shares of Common
Stock sought to be included by those holders. 
However, the Company will not exclude any Registrable Securities unless
the Company has first excluded all outstanding securities the holders of which
are not entitled by right to inclusion of such securities in such Registration
Statement or are not entitled pro rata inclusion with the Registrable
Securities.  No registration rights that
limit or subordinate the rights of Investor to register the Registrable
Securities will be granted by the Company until one or more registration
statements covering all of the Registrable Securities have become effective.

 

(b)           No
right to registration of Registrable Securities under this Section 2.3 limits
in any way the registration required under Section 2.1 above.  The obligations of the Company under this
Section 2.3 expire upon the earlier of (i) the effectiveness of the
Registration Statement filed pursuant to Section 2.1 above covering all of the
Registrable Securities, (ii) after the Company has afforded the opportunity for
Investor to exercise registration rights under this Section 2.3 for two
registrations (provided, however, that if Investor has had any Registrable
Securities excluded from any Registration Statement in accordance with this
Section 2.3, Investor may include in any additional Registration Statement
filed by the Company the Registrable Securities so excluded), (iii) when all of
the Registrable Securities held by any Investor may be sold by Investor under
Rule 144 without being subject to any volume restrictions, or (iv) the second
anniversary of the last date on which Warrant Shares are purchased for cash
under any then outstanding portion of the Warrant.

 

2.4           Eligibility
to use Form S-3.  The Company
represents and warrants that it meets the requirements for the use of Form S-3
for registration of the sale by the Investor of the Registrable
Securities.  The Company will file all
reports required to be filed by the Company with the SEC in a timely manner so
as to preserve its eligibility for the use of Form S-3.

 

ARTICLE III

ADDITIONAL OBLIGATIONS OF THE COMPANY

 

3.1           Continued
Effectiveness of Registration Statement. 
Subject to the limitations set forth in Section 3.6, the Company will
keep the Registration Statement covering the Registrable Securities effective
under Rule 415 at all times during the Registration Period.  In the event that the number of shares
available under a Registration Statement filed pursuant to this Agreement is
insufficient to cover all of the Registrable Securities issued, the Company
will (if permitted) amend the Registration Statement or file a new Registration
Statement (on the short form available therefor, if applicable), or both, so as
to cover all of the Registrable Securities. 
The Company will file such amendment or new Registration Statement as
soon as practicable, but in no event later than 20 business days after the
necessity therefor arises (based upon the market price of the Common Stock and
other relevant factors on which the Company reasonably elects to rely).  The Company will use its best efforts to
cause such amendment or new Registration Statement to become effective as soon

 

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as is practicable after the filing thereof, but in no
event later than 90 days after the date on which the Company reasonably first
determines the need therefor.

 

3.2           Accuracy
of Registration Statement.  Any
Registration Statement (including any amendments or supplements thereto and
prospectuses contained therein) filed by the Company covering Registrable
Securities will not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not
misleading.  The Company will prepare and
file with the SEC such amendments (including post-effective amendments) and
supplements to the Registration Statement and the prospectus used in connection
with the Registration Statement as may be necessary to permit sales pursuant to
the Registration Statement at all times during the Registration Period, and,
during such period, will comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities of the Company covered
by the Registration Statement until the termination of the Registration Period,
or if earlier, until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof as set forth in the Registration Statement.

 

3.3           Furnishing
Documentation.  The Company will
furnish to Investor, or to its legal counsel, (a) promptly after such document
is filed with the SEC, one copy of any Registration Statement filed pursuant to
this Agreement and any amendments thereto, each preliminary prospectus and
final prospectus and each amendment or supplement thereto; and (b) a number of
copies of a prospectus, including a preliminary prospectus, and all amendments
and supplements thereto, and such other documents as the Investor may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by the Investor.  The
Company will promptly notify by facsimile or email Investor of the
effectiveness of the Registration Statement and any post-effective amendment.

 

3.4           Additional
Obligations.  The Company will use
its best efforts to (a) register and qualify the Registrable Securities covered
by a Registration Statement under such other securities or blue sky laws of
such jurisdictions as Investor reasonably requests, (b) prepare and file in
those jurisdictions any amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain their effectiveness during the Registration Period, (c) take any other
actions necessary to maintain such registrations and qualifications in effect
at all times during the Registration Period, and (d) take any other actions
reasonably necessary or advisable to qualify the Registrable Securities for
sale in such jurisdictions. 
Notwithstanding the foregoing, the Company is not required, in
connection with such obligations, to (i) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3.4, (ii) subject itself to general taxation in any such jurisdiction,
(iii) file a general consent to service of process in any such jurisdiction,
(iv) provide any undertakings that cause material expense or material burden to
the Company, or (v) make any change in its charter or bylaws, which in each
case the Board of Directors of the Company determines to be contrary to the
best interests of the Company and its stockholders.

 

3.5           Underwritten
Offerings.  If Investor selects
underwriters reasonably acceptable to the Company for such offering, the
Company will enter into and perform its obligations under an underwriting
agreement in usual and customary form including, without limitation, customary
indemnification and contribution obligations, with the managing underwriter of
such offering.

 

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3.6           Suspension
of Registration.

 

(a)           The
Company will notify (by telephone and also by facsimile and reputable overnight
courier) Investor of the happening of any event of which the Company has
knowledge as a result of which the prospectus included in the Registration
Statement as then in effect includes an untrue statement of a material fact or
omits to state a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading.  The Company
will make such notification as promptly as practicable (but in no event more
than two business days) after the Company becomes aware of the event, will
promptly (but in no event more than ten business days) prepare and file a
supplement or amendment to the Registration Statement to correct such untrue
statement or omission, and will deliver a number of copies of such supplement
or amendment to each Investor as Investor may reasonably request.

 

(b)           Notwithstanding
the obligations under Section 3.6(a), if in the good faith judgment of the
Company, following consultation with legal counsel, it would be detrimental to
the Company and its stockholders for resales of Registrable Securities to be
made pursuant to the Registration Statement due to the existence of a material
development or potential material development involving the Company which the
Company would be obligated to disclose in the Registration Statement, but which
disclosure would be premature or otherwise inadvisable at such time or would
reasonably be expected to have a material adverse effect upon the Company and
its stockholders, the Company will have the right to suspend the use of the
Registration Statement for a period of not more than thirty (30) days,
provided, however, that the Company may so defer or suspend the use of the
Registration Statement no more than one time in any twelve-month period.

 

(c)           Subject
to the Company’s rights under this Section 3, the Company will use its best
efforts to prevent the issuance of any stop order or other suspension of
effectiveness of a Registration Statement and, if such an order is issued, will
use its best efforts to obtain the withdrawal of such order at the earliest
possible time and to notify Investor (or, in the event of an underwritten
offering, the managing underwriters) of the issuance of such order and the
resolution thereof.

 

(d)           Notwithstanding
anything to the contrary contained herein or in the Purchase Agreement, if the
use of the Registration Statement is suspended by the Company, the Company will
promptly (but in no event more than two business days) give notice of the
suspension to Investor, and will promptly (but in no event more than two
business days) notify Investor as soon as the use of the Registration Statement
may be resumed.  Notwithstanding anything
to the contrary contained herein or in the Purchase Agreement, the Company will
cause the Transfer Agent to deliver unlegended shares of Common Stock to a
transferee of Investor in accordance with the terms of the Purchase Agreement
in connection with any sale of Registrable Securities with respect to which
Investor has entered into a contract for sale prior to receipt of notice of
such suspension and for which Investor has not yet settled, unless otherwise
prohibited by law.

 

3.7           Review
by Investor.  The Company will permit
a single firm of legal counsel, designated by Investor (“Investor’s Counsel”),
to review the Registration Statement and all amendments and supplements thereto
(as well as all requests for acceleration or effectiveness thereof) a
reasonable amount of time (not to exceed three (3) days) prior to their filing
with the SEC, and will not file any document in a form to which such counsel
reasonably objects, unless otherwise required by law in the opinion of the
Company’s counsel.  The sections of any
such Registration Statement including information with respect to Investor,
Investor’s beneficial ownership of securities of the Company or Investor’s
intended method of disposition of Registrable Securities must conform to the
information provided to the Company by Investor or Investor’s Counsel.

 

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3.8           Comfort
Letter; Legal Opinion.  At the
request of Investor and on the date that Registrable Securities are delivered
to an underwriter for sale in connection with the Registration Statement, the
Company will furnish to Investor and the underwriters (i) a letter, dated such
date, from the Company’s independent certified public accountants, in form and
substance as is customarily given by independent certified public accountants
to underwriters in an underwritten public offering, addressed to the
underwriters; and (ii) an opinion, dated such date, from counsel representing
the Company for purposes of the Registration Statement, in form and substance
as is customarily given in an underwritten public offering, addressed to the
underwriters and Investor.

 

3.9           Due
Diligence; Confidentiality.

 

(a)           The
Company will make available for inspection by Investor any underwriter
participating in any disposition pursuant to the Registration Statement, and
any attorney, accountant or other agent retained by any Investor or underwriter
(collectively, the “Inspectors”), all pertinent financial and other
records, pertinent corporate documents and properties of the Company
(collectively, the “Records”), as each Inspector reasonably deems
necessary to enable the Inspector to exercise its due diligence
responsibility.  The Company will cause
its officers, directors and employees to supply all information that any
Inspector may reasonably request for purposes of performing such due diligence.

 

(b)           Each
Inspector will hold in confidence, and will not make any disclosure (except to
an Investor) of, any Records or other information that the Company determines
in good faith to be confidential, and of which determination the Inspectors are
so notified, unless (i) the disclosure of such Records is necessary to avoid or
correct a misstatement or omission in any Registration Statement, (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court or government body of competent jurisdiction, (iii) the information in
such Records has been made generally available to the public other than by
disclosure in violation of this or any other agreement (to the knowledge of the
relevant Inspector), (iv) the Records or other information was developed independently
by an Inspector without breach of this Agreement, (v) the information was known
to the Inspector before receipt of such information from the Company, or (vi)
the information was disclosed to the Inspector by a third party without
restriction.  The Company is not required
to disclose any confidential information in the Records to any Inspector unless
and until such Inspector has entered into a confidentiality agreement (in form
and substance reasonably satisfactory to the Company) with the Company with
respect thereto, substantially in the substance of this Section 3.9(b).  Each Investor will, upon learning that
disclosure of Records containing confidential information 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.  Nothing herein will be deemed to limit the
Investor’s ability to sell Registrable Securities in a manner that is otherwise
consistent with applicable laws and regulations.

 

(c)           The
Company will hold in confidence, and will not make any disclosure of,
information concerning Investor provided to the Company under this Agreement
unless (i) disclosure of such information is necessary to comply with federal
or state securities laws, (ii) the disclosure of such information is necessary
to avoid or correct a misstatement or omission in any Registration Statement,
(iii) the release of such information is ordered pursuant to a subpoena or
other order from a court or governmental body of competent jurisdiction, (iv)
information has been made generally available to the public other than by
disclosure in violation of this Agreement or any other agreement, (v) the
information was disclosed to the Company by a third party without restriction
or

 

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(vi) Investor consents to the form and content of any
such disclosure.  If the Company learns
that disclosure of such information concerning Investor is sought in or by a
court or governmental body of competent jurisdiction or through other means,
the Company will give prompt notice to Investor prior to making such disclosure
and allow Investor, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

 

3.10         Listing.  The Company will (i) cause all of the
Registrable Securities covered by each Registration Statement to be listed on
each national securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, or
(ii) to the extent the securities of the same class or series are not then
listed on a national securities exchange, secure the designation and quotation
of all of the Registrable Securities covered by each Registration Statement on
Nasdaq.

 

3.11         Transfer
Agent; Registrar.  The Company will
provide a transfer agent and registrar, which may be a single entity, for the
Registrable Securities not later than the effective date of the Registration
Statement.

 

3.12         Share
Certificates.  The Company will
cooperate with Investor and with the managing underwriter(s), if any, to
facilitate the timely preparation and delivery of certificates (not bearing any
restrictive legends) representing Registrable Securities to be offered pursuant
to a Registration Statement and will enable such certificates to be in such
denominations or amounts as the case may be, and registered in such names as
the Investor or the managing underwriter(s), if any, may reasonably request,
all in accordance with Article V of the Purchase Agreement.

 

3.13         Plan
of Distribution.  At the request of
Investor, the Company will promptly prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the
Registration Statement, and the prospectus used in connection with the
Registration Statement, as may be necessary in order to change the plan of
distribution set forth in such Registration Statement.

 

3.14         Securities
Laws Compliance.  The Company will
comply with all applicable laws related to any Registration Statement relating
to the offer and sale of Registrable Securities and with all applicable rules
and regulations of governmental authorities in connection therewith (including,
without limitation, the Securities Act, the Exchange Act and the rules and
regulations promulgated by the SEC).

 

3.15         Further
Assurances.  The Company will take
all other reasonable actions as any Investor or the underwriters, if any, may
reasonably request to expedite and facilitate disposition by Investor of the
Registrable Securities pursuant to the Registration Statement.

 

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ARTICLE IV

OBLIGATIONS OF THE INVESTOR

 

4.1           Investor
Information.  As a condition to the
obligations of the Company to complete any registration pursuant to this
Agreement with respect to the Registrable Securities of Investor, Investor will
furnish to the Company such information regarding itself, the Registrable
Securities held by it and the intended method of disposition of the Registrable
Securities held by it as is reasonably required by the Company to effect the
registration of the Registrable Securities. 
At least 10 business days prior to the first anticipated filing date of
a Registration Statement for any registration under this Agreement, the Company
will notify Investor of the information the Company requires from that Investor
if the Investor elects to have any of its Registrable Securities included in
the Registration Statement.  Such
information, including, without limitation, the Investor Questionnaire attached
hereto as Annex A, shall be delivered to the Company within five business days
of such request.  If, within three
business days prior to the filing date, the Company has not received the
requested information from an Investor, then the Company shall call the
Investor to notify Investor orally that the Company may exclude Investor’s
Registrable Securities and the Company may file the Registration Statement
without including Registrable Securities of Investor.

 

4.2           Further
Assurances.  Investor will cooperate
with the Company, as reasonably requested by the Company, in connection with
the preparation and filing of any Registration Statement hereunder, unless
Investor has notified the Company in writing of Investor’s election to exclude
all of Investor’s Registrable Securities from the Registration Statement.

 

4.3           Suspension
of Sales.  Upon receipt of any notice
from the Company of the happening of any event of the kind described in Section
3.6, Investor will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until it receives copies of the supplemented or amended prospectus
contemplated by Section 3.6.  If so
directed by the Company, Investor will deliver to the Company (at the expense
of the Company) or destroy (and deliver to the Company a certificate of
destruction) all copies in the Investor’s possession (other than a limited
number of file copies) of the prospectus covering such Registrable Securities that
is current at the time of receipt of such notice.

 

ARTICLE V

EXPENSES OF REGISTRATION

 

The Company will bear all expenses, other than
underwriting discounts and commissions, and transfer taxes, if any, incurred in
connection with registrations, filings or qualifications pursuant to Articles
II and III of this Agreement, including, without limitation, all registration,
listing and qualifications fees, printers and accounting fees, the fees and
disbursements of counsel for the Company, and the reasonable fees and
disbursements of one firm of legal counsel selected by the Investor pursuant to
Section 3.7 hereof not to exceed an aggregate of $10,000.

 

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ARTICLE VI

INDEMNIFICATION

 

In the event that any Registrable Securities are
included in a Registration Statement under this Agreement:

 

6.1           To
the extent permitted by law, the Company will indemnify, defend and hold
harmless Investor, and agents, employees, attorneys, accountants, underwriters
(as defined in the Securities Act) for Investor and any directors or officers
of Investor or such underwriter and any person who controls Investor or such
underwriter within the meaning of the Securities Act or the Exchange Act (each,
an “Investor Indemnified Person”) against any losses, claims, damages,
expenses or liabilities (collectively, and together with actions, proceedings
or inquiries by any regulatory or self-regulatory organization, whether
commenced or threatened in respect thereof, “Claims”) to which any of
them become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such Claims arise out of or are based upon any of the following
statements, omissions or violations in a Registration Statement filed pursuant
to this Agreement, any post-effective amendment thereof or any prospectus
included therein:  (a) any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement or any post-effective amendment thereof or the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, (b) any
untrue statement or alleged untrue statement of a material fact contained in
the prospectus or any preliminary prospectus (as it may be amended or
supplemented) or the omission or alleged omission to state therein any material
fact necessary to make the statements made therein, in light of the
circumstances under which the statements therein were made, not misleading, or
(c) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act or any other law, including without limitation any state
securities law or any rule or regulation thereunder (the matters in the
foregoing clauses (a) through (c) being, collectively, “Violations”).  Subject to the restrictions set forth in
Section 6.4 with respect to the number of legal counsel, the Company will
reimburse Investor and each such attorney, accountant, underwriter or
controlling person and each such other Investor Indemnified Person, promptly as
such expenses are incurred and are due and payable, for any legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any Claim.  Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6.1 (i) does not apply to a Claim by an Investor
Indemnified Person arising out of or based upon a Violation that occurs in
reliance upon and in conformity with information furnished in writing to the
Company by Investor Indemnified Person expressly for use in the Registration
Statement or any such amendment thereof or supplement thereto, if such
prospectus or supplement thereto was timely made available by the Company
pursuant to Section 3.3 hereof; and (ii) does not apply to amounts paid in
settlement of any Claim if such settlement is made without the prior written
consent of the Company, which consent will not be unreasonably withheld. This
indemnity obligation will remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Persons and will survive
the transfer of the Registrable Securities by the Investor under Article IX of
this Agreement.

 

6.2           In
connection with any Registration Statement in which Investor is participating,
absent any negligence or intentional misconduct of the Company, Investor will
indemnify and hold harmless, to the same extent and in the same manner set
forth in Section 6.1 above, the Company, each of its directors, each of its
officers who signs the Registration Statement, each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act, and any other stockholder selling securities pursuant to the Registration
Statement or any of its directors or officers or any person who controls such
stockholder within the meaning of the Securities Act or the Exchange Act (each
a “Company Indemnified Person”) against any Claim to which any of them
may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such Claim arises out of or is based upon any Violation, in each
case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished to the Company
by Investor expressly for use in such Registration Statement.  Subject to the restrictions set

 

10

 

forth in Section 6.4 with respect to the number of
legal counsel, Investor will promptly reimburse each Company Indemnified Person
for any legal or other expenses (promptly as such expenses are incurred and due
and payable) reasonably incurred by them in connection with investigating or
defending any such Claim.   However, the
indemnity agreement contained in this Section 6.2 does not apply to amounts
paid in settlement of any Claim if such settlement is effected without the
prior written consent of Investor, which consent will not be unreasonably
withheld, and no Investor will be liable under this Agreement (including this
Section 6.2 and Article VII) for the amount of any Claim that exceeds the net
proceeds actually received by Investor as a result of the sale of Registrable
Securities pursuant to such Registration Statement.  This indemnity will remain in full force and
effect regardless of any investigation made by or on behalf of a Company
Indemnified Party and will survive the transfer of the Registrable Securities
by the Investor under Article IX of this Agreement.

 

6.3           If
any proceeding shall be brought or asserted against any person entitled to
indemnity under Sections 6.1 or 6.2 hereof (an “Indemnified Party”),
such Indemnified Party promptly shall notify the person from whom indemnity is
sought (the “Indemnifying Party”) in writing, and the Indemnifying Party
shall assume the defense thereof, including the employment of counsel
reasonably satisfactory to the Indemnified Party and the payment of all
reasonable fees and expenses incurred in connection with defense thereof;
provided, however, that the failure of any Indemnified Party to give such
notice shall not relieve the Indemnifying Party of its obligations or
liabilities pursuant to this Agreement, except (and only) to the extent that it
shall be finally determined by a court of competent jurisdiction (which
determination is not subject to appeal or further review) that such failure
shall have proximately and materially adversely prejudiced the Indemnifying
Party.

 

6.4           An
Indemnified Party shall have the right to employ separate counsel in any such proceeding
and to participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Party or Indemnified
Parties unless: (i) the Indemnifying Party has agreed in writing to pay such
fees and expenses; (ii) the Indemnifying Party shall have failed promptly to
assume the defense of such proceeding and to employ counsel reasonably
satisfactory to such Indemnified Party in any such proceeding; or (iii) the
named parties to any such proceeding (including any impleaded parties) include
both such Indemnified Party and the Indemnifying Party, and such Indemnified
Party shall have been advised by counsel that a conflict of interest is likely
to exist if the same counsel were to represent such Indemnified Party and the
Indemnifying Party (in which case, if such Indemnified Party notifies the
Indemnifying Party in writing that it elects to employ separate counsel at the
expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the reasonable
expense of the Indemnifying Party; provided, however, that in no event shall
the Indemnifying Party be responsible for the fees and expenses of more than
one separate counsel).  The Indemnifying Party
shall not be liable for any settlement of any such proceeding effected without
its written consent, which consent shall not be unreasonably withheld.  No Indemnifying Party shall, without the
prior written consent of the Indemnified Party, effect any settlement of any
pending proceeding in respect of which any Indemnified Party is a party, unless
such settlement includes an unconditional release of such Indemnified Party
from all liability on Claims that are the subject matter of such proceeding.

 

6.5           Subject
to the foregoing, all reasonable fees and expenses of the Indemnified Party
(including fees and expenses to the extent incurred in connection with
investigating or preparing to defend such proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten (10) Business Days of written notice thereof to the
Indemnifying Party, which notice shall be delivered no more frequently than on
a monthly basis

 

11

 

(regardless of whether it is ultimately determined
that an Indemnified Party is not entitled to indemnification hereunder;
provided, that the Indemnifying Party may require such Indemnified Party to
undertake to reimburse all such fees and expenses to the extent it is finally
judicially determined that such Indemnified Party is not entitled to
indemnification hereunder).

 

ARTICLE VII

CONTRIBUTION

 

To the extent that any indemnification provided for
herein is prohibited or limited by law, the indemnifying party will make the
maximum contribution with respect to any amounts for which it would otherwise
be liable under Article VI to the fullest extent permitted by law.  However, (a) no contribution will be made under
circumstances where the maker would not have been liable for indemnification
under the fault standards set forth in Article VI (without giving effect to any
prohibition or limitation or indemnification under applicable law), (b) no
person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) will be entitled to contribution from any person
who was not guilty of such fraudulent misrepresentation, and (c) contribution
(together with any indemnification or other obligations under this Agreement)
by any seller of Registrable Securities will be limited in amount to the net
amount of proceeds received by such seller from the sale of such Registrable
Securities.

 

ARTICLE VIII

EXCHANGE ACT REPORTING

 

In order to make available to the Investor the
benefits of Rule 144 or any similar rule or regulation of the SEC that may at
any time permit Investor to sell securities of the Company to the public
without registration, the Company will:

 

(a)           File
with the SEC in a timely manner, and make and keep available, all reports and
other documents required of the Company under the Securities Act and the
Exchange Act so long as the Company remains subject to such requirements (it
being understood that nothing herein limits the Company’s obligations under
Section 4.3 of the Purchase Agreement) and file and make available of such
reports and other documents as required for the applicable provisions of Rule
144; and

 

(b)           Furnish
to Investor, so long as Investor holds Registrable Securities, promptly upon
the Investor’s request, (i) a written statement by the Company that it has
complied with the reporting requirements of Rule 144, the Securities Act and
the Exchange Act, (ii) a copy of the most recent annual or quarterly report of
the Company and such other reports and documents filed by the Company with the
SEC and (iii) such other information as may be reasonably requested to permit
the Investor to sell such securities pursuant to Rule 144 without registration.

 

ARTICLE IX

ASSIGNMENT OF REGISTRATION RIGHTS

 

The rights of Investor hereunder, including the right
to have the Company register Registrable Securities pursuant to this Agreement,
may be assigned by Investor to transferees or assignees of all or any portion
of the Registrable Securities, but only if (a) Investor agrees in
writing with the transferee or assignee to assign such rights, and a copy
of such agreement

 

12

 

is furnished
to the Company within a reasonable time after such assignment, (b) the Company
is, within a reasonable time after such transfer or assignment, furnished with
written notice of the name and address of such transferee or assignee and the
securities with respect to which such registration rights are being transferred
or assigned, (c) after such transfer or assignment, the further disposition of
such securities by the transferee or assignee is restricted under the
Securities Act and applicable state securities laws, (d) at or before the time
the Company received the written notice contemplated by clause (b) of this
sentence, the transferee or assignee agrees in writing with the Company to be
bound by all of the provisions contained herein, (e) such transfer is made in
accordance with the applicable requirements of the Purchase Agreement, and (f)
the transferee is an “accredited investor” as that term is defined in Rule 501
of Regulation D.

 

ARTICLE X

AMENDMENT OF REGISTRATION RIGHTS

 

This Agreement may be amended and the obligations
hereunder may be waived (either generally or in a particular instance, and
either retroactively or prospectively) only with the written consent of the
Company and Investor.  Any amendment or
waiver effected in accordance with this Article X is binding upon each Investor
and the Company.

 

ARTICLE XI

RESTRICTIVE PROVISIONS

 

11.1         Lock-Up
Agreement.

 

(a)           Investor
hereby agrees that it will not (i) offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, any Registrable Securities or
securities convertible into or exchangeable or exercisable for any Registrable
Securities, (ii) enter into a transaction which would have the same effect,
(iii) enter into any swap, hedge or other arrangement that transfers, in whole
or in part, any of the economic consequences of ownership of the Registrable
Securities, whether any such aforementioned transaction is to be settled by
delivery of the Registrable Securities or such other securities, in cash or
otherwise, or (iv) publicly disclose the intention to make any such offer,
sale, pledge or disposition, or to enter into any such transaction, swap, hedge
or other arrangement (unless, without in any way limiting the restrictions in
clauses (i) through (iii) above,  in the
reasonable judgment of Investor, such disclosure is required under Schedule 13D
under the Exchange Act, or by other legal or regulatory requirement).

 

(b)           The
restrictions set forth in Article XI, Section 11.1(a) shall lapse on the six
(6) month anniversary of the Closing Date.

 

11.2         Standstill
Agreement.  For a period commencing
with the date of this Agreement and ending on the earlier of (i) the date two
(2) years after the date of this Agreement or (ii) the Termination Date (as
defined below) (the “Standstill Period”), Investor shall not, without the prior
written consent of the Company or the Company’s Board of Directors:  (a) acquire, offer to acquire, or agree to
acquire, directly or indirectly, by purchase or otherwise, voting securities or
direct or indirect rights to acquire any voting securities (A) during such time
that Investor beneficially owns (for purposes of Section 13(d) of the Exchange
Act) five percent (5%) or more of the voting power of the Company, or (B) which
when added to the Shares then owned by Investor and its subsidiaries, would
result in Investor and its subsidiaries beneficially owning (for purposes of
Section 13(d) of the Exchange Act) of more than five percent (5%) of the voting
power of the Company; (b) make, or in

 

13

 

any way participate, directly or indirectly, in any
“solicitation” of “proxies” to vote (as such terms are used in the Exchange
Act), or seek to advise or influence any person or entity with respect to the
voting of any voting securities of the Company; (c) make any public
announcement with respect to, or submit a proposal for, or offer of (with or
without conditions) any merger, business combination, recapitalization,
restructuring or other extraordinary transaction involving the Company or any
of its securities or material assets; (d) form, join or in any way participate
in a “group” as defined in Section 13(d)(3) of the Exchange Act in connection
with any of the foregoing; (e) otherwise act or seek to control or influence
the management, Board of Directors or policies of the Company; (f) take any
action that could reasonably be expected to require the Company to make a
public announcement regarding the possibility of any of the events described in
clauses (a) through (e) above; or (g) publicly request the Company, directly or
indirectly, to amend or waive any provision of this paragraph.  For the purposes of this paragraph, the
“Termination Date” shall mean the earliest of (i) the date on which the Company
(A) enters into a definitive agreement with an unaffiliated third party or
parties to merge, consolidate or otherwise combine, with such third party or
parties in a transaction where the holders of the Company’s outstanding shares
immediately prior to such merger or consolidation would hold,  in the aggregate, securities possessing less
than fifty percent (50%) of the total combined voting power of the combined or
surviving entity immediately after such merger or consolidation, or to sell
substantially all of the Company’s business or assets or securities
representing a majority of the then outstanding voting power of the Company’s
securities, or (B) makes a public announcement that it is negotiating a
transaction with an unaffiliated third party or parties covered by the
foregoing clause (A), or (ii) the date a third party or group (as defined
above) (X) acquires beneficial ownership of voting securities (including those
convertible or exchangeable into such voting securities) of the Company
representing fifteen percent (15%) or more of the then outstanding voting
securities of the Company; or (Y) announces or commences a tender or exchange
offer to acquire voting securities of the Company which, if successful, would
result in such person or group owning, when combined with any other voting
securities of the Company owned by such person or group, fifteen percent (15%)
or more of the then outstanding voting securities of the Company.

 

11.3         Underwritten
Offerings.  Investor agrees that in
the event the Company proposes to file a Registration Statement for an
underwritten public offering of its securities, upon the request of the
underwriters managing such public offering, provided Investor beneficially owns
five percent (5%) or more of the Company’s Common Stock as of the date of such
request, Investor will execute a customary lock-up agreement, whereby Investor
shall agree not to sell or otherwise dispose the Registrable Shares without the
prior written consent of the underwriters for a period not to exceed ninety
(90) days from the effective date of the Registration Statement.

 

ARTICLE XII

MISCELLANEOUS

 

12.1         Conflicting
Instructions.  A person or entity is
deemed to be a holder of Registrable Securities whenever such person or entity
owns of record such Registrable Securities. 
If the Company receives conflicting instructions, notices or elections
from two or more persons or entities with respect to the same Registrable
Securities, the Company will act upon the basis of instructions, notice or
election received from the registered owner of such Registrable Securities.

 

12.2         Notices.  Any notices required or permitted to be given
under the terms of this Agreement will be given as set forth in the Purchase
Agreement.

 

14

 

12.3         Waiver.  Failure of any party to exercise any right or
remedy under this Agreement or otherwise, or delay by a party in exercising
such right or remedy, does not operate as a waiver thereof.

 

12.4         Governing
Law.  This Agreement will be governed
by and interpreted in accordance with the laws of the State of New York without
regard to the principles of conflict of laws. 
The parties hereto hereby submit to the exclusive jurisdiction of the
United States federal and state courts located in the State of New York with
respect to any dispute arising under this Agreement, the agreements entered
into in connection herewith or the transactions contemplated hereby or thereby.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT THAT IT MAY HAVE TO, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR
IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY.

 

12.5         Severability.  If any provision of this Agreement is invalid
or unenforceable under any applicable statute or rule of law, then such
provision will be deemed modified in order to conform with such statute or rule
of law.  Any provision hereof that may
prove invalid or unenforceable under any law will not affect the validity or
enforceability of any other provision hereof.

 

12.6         Entire
Agreement.  This Agreement and the
Purchase Agreement (including all schedules and exhibits thereto) constitute
the entire agreement among the parties hereto with respect to the subject
matter hereof and thereof.  There are no
restrictions, promises, warranties or undertakings, other than those set forth
or referred to herein or therein.  This
Agreement supersedes all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof.

 

12.7         Successors
and Assigns.  Subject to the
requirements of Article IX hereof, this Agreement inures to the benefit of and is
binding upon the successors and assigns of each of the parties hereto.  Notwithstanding anything to the contrary
herein, including, without limitation, Article IX, the rights of an Investor
hereunder are assignable to and exercisable by a bona fide pledgee of the
Registrable Securities in connection with an Investor’s margin or brokerage
accounts.

 

12.8         Headings.  The headings of this Agreement are for
convenience of reference only, are not part of this Agreement and do not affect
its interpretation.

 

12.9         Counterparts.  This Agreement may be executed in two or more
counterparts, each of which is deemed an original but all of which constitute
one and the same agreement.  This
Agreement, once executed by a party, may be delivered to the other party hereto
by facsimile transmission, and facsimile signatures are binding on the parties
hereto.

 

12.10       Further
Assurances.  Each party will do and
perform, or cause to be done and performed, all such further acts and things,
and will execute and deliver all other agreements, certificates, instruments
and documents, as another party may reasonably request in order to carry out
the intent and accomplish the purposes of this Agreement and the consummation
of the transactions contemplated hereby.

 

15

 

12.11       Consents.  Unless otherwise provided in this Agreement,
all consents and other determinations to be made by the Investor pursuant to
this Agreement will be made by the Investor holding a majority in interest of
the Registrable Securities.

 

12.12       No
Strict Construction.  The language
used in this Agreement is deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be
applied against any party.

 

16

 

IN WITNESS WHEREOF, the undersigned Investor and the
Company have caused this Registration Rights Agreement to be duly executed as
of the date first above written.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  SONUS
  PHARMACEUTICALS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael A. Martino

  	
   

  
	
   

  	
  Name:

  	
  Michael A. Martino

  	
   

  
	
   

  	
  Title:

  	
   President and
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  INVESTOR:

  
	
   

  	
   

  
	
   

  	
  SCHERING
  AG

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Hubertus Erlen

  	
   

  
	
   

  	
  Name:

  	
  Hubertus Erlen

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ulrich Koestlin

  	
   

  
	
   

  	
  Name:

  	
  Ulrich Koestlin

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SCHERING
  BERLIN VENTURE

  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Lutz Lingnau

  	
   

  
	
   

  	
  Name:

  	
  Lutz Lingnau

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
								

 

17

 

ANNEX
A

 

Sonus
Pharmaceuticals, Inc.

 

Selling
Securityholder Notice and Questionnaire

 

The undersigned beneficial owner of common stock,
$.001 par value per share (the “Common Stock”), of Sonus
Pharmaceuticals, Inc. (the “Company”), (the “Registrable Securities”)
understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”) a registration statement on
Form S-3 (the “Registration Statement”) for the registration and resale
under Rule 415 of the Securities Act of 1933, as amended (the “Securities
Act”), of the Registrable Securities, in accordance with the terms of the
Registration Rights Agreement, dated as of October 17, 2005 (the “Registration
Rights Agreement”), among the Company and the Investor named therein.  A copy of the Registration Rights Agreement
is available from the Company upon request at the address set forth below.  All capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Registration Rights
Agreement.

 

Certain legal consequences arise from being named as a
selling securityholder in the Registration Statement and the related
prospectus.  Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Registration Statement and the related
prospectus.

 

NOTICE

 

The undersigned beneficial owner (the “Selling
Securityholder”) of Registrable Securities hereby elects to include the
Registrable Securities owned by it and listed below in Item 3 (unless otherwise
specified under such Item 3) in the Registration Statement.

 

18

 

The undersigned
hereby provides the following information to the Company and represents and
warrants that such information is accurate:

 

QUESTIONNAIRE

 

1.             Name.

 

(a)           Full Legal
Name of Selling Securityholder

	
   

  	
   

  
	
   

  	
                                                                                                             

  

 

(b)           Full
Legal Name of Registered Holder (if not the same as (a) above) through which
Registrable Securities Listed in Item 3 below are held:

	
   

  
	
   

  

 

(c)           Full
Legal Name of Natural Control Person (which means a natural person who directly
or indirectly alone or with others has power to vote or dispose of the securities
covered by the questionnaire):

	
   

  
	
   

  

 

2.             Address for Notices to Selling
Securityholder:

	
   

  
	
   

  
	
   

  
	
  Telephone:                                                                                                               

  
	
  Fax:                                                                                                                       

  
	
  Contact Person:                                                                                                          

  

 

3.             Beneficial Ownership of Registrable Securities:

 

(a)           Type and
Amount of Registrable Securities beneficially owned:

	
   

  
	
   

  
	
   

  
	
   

  

 

19

 

4.             Broker-Dealer Status:

 

(a)           Are you a
broker-dealer?

 

Yes  o    No  o

 

Note:      If
yes, the Commission’s staff has indicated that you should be identified as an
underwriter in the Registration Statement.

 

(b)           Are you an
affiliate of a broker-dealer?

 

Yes  o    No  o

 

(c)           If
you are an affiliate of a broker-dealer, do you certify that you bought the
Registrable Securities in the ordinary course of business, and at the time of
the purchase of the Registrable Securities to be resold, you had no agreements
or understandings, directly or indirectly, with any person to distribute the
Registrable Securities?

 

Yes  o    No  o

 

Note:      If
no, the Commission’s staff has indicated that you should be identified as an
underwriter in the Registration Statement.

 

5.             Beneficial Ownership of Other Securities
of the Company Owned by the Selling Securityholder.

 

Except as set forth below in this
Item 5, the undersigned is not the beneficial or registered owner of any
securities of the Company other than the Registrable Securities listed above in
Item 3.

 

(a)           Type and
Amount of Other Securities beneficially owned by the Selling Securityholder:

	
   

  
	
   

  
	
   

  

 

20

 

6.             Relationships with the Company:

 

Except as set forth below, neither
the undersigned nor any of its affiliates, officers, directors or principal
equity holders (owners of 5% of more of the equity securities of the
undersigned) has held any position or office or has had any other material
relationship with the Company (or its predecessors or affiliates) during the
past three years.

 

State any exceptions here:

	
   

  
	
   

  
	
   

  

 

The undersigned agrees to promptly notify the Company
of any inaccuracies or changes in the information provided herein that may
occur subsequent to the date hereof at any time while the Registration
Statement remains effective.

 

By signing below, the undersigned consents to the
disclosure of the information contained herein in its answers to Items 1
through 6 and the inclusion of such information in the Registration Statement
and the related prospectus.  The
undersigned understands that such information will be relied upon by the
Company in connection with the preparation or amendment of the Registration
Statement and the related prospectus.

 

IN WITNESS WHEREOF the undersigned, by authority duly
given, has caused this Notice and Questionnaire to be executed and delivered
either in person or by its duly authorized agent.

 

	
  Dated:

  	
   

  	
   

  	
  Beneficial
  Owner:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
								

 

21Exhibit 10.333

 

AMENDMENT NO. 7 TO

AGREEMENT

 

This Amendment No. 7 (“Amendment No. 7”)
is entered into effective as of May       , 2005
(the “Amendment Effective Date”), pursuant to
and amending that certain Agreement between Gen-Probe Incorporated, a Delaware
corporation (“Gen-Probe”) and Chiron
Corporation, a Delaware corporation (“Chiron”).
Capitalized terms used but not defined herein shall have the meanings set forth
in the Agreement.

 

Recitals

 

A. The parties entered into the Agreement as of June 1, 1998 pursuant
to which, among other things, the parties described their respective rights and
obligations with respect to the development, manufacture, marketing and
distribution of Products in the Blood Screening and Clinical Diagnostic Fields.

 

B. The Agreement has been previously amended and supplemented
by further written agreements of the parties.

 

C. Subsequent to the execution of the Agreement, Chiron
assigned its rights and obligations with respect to Clinical Diagnostic
Products to Chiron Diagnostics Corporation (“CDC”), and sold the common stock
of CDC to Bayer Corporation (CDC, Bayer Corporation, and Bayer Corporation’s
affiliates being collectively referred to as “Bayer”). Chiron retained all
rights and obligations under the Agreement with respect to Blood Screening
Products. This amendment is effective as between Chiron and Gen-Probe with
respect to Blood Screening Products only, and nothing herein shall affect any
rights or obligations of Gen-Probe or Bayer with respect to Clinical Diagnostic
Products.

 

D. The parties have discussed a revision to and clarification
of their respective rights and obligations with respect to Section 1.29, and
have agreed to make certain changes to the Agreement in connection therewith,
in accordance with the provisions of this Amendment No. 7.

 

Agreement

 

NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements set forth in this Amendment No. 7, the parties agree as follows:

 

1. Definition of First Commercial Sale.
Section 1.29 of the Agreement shall be and is hereby amended to read as
follows:

 

1.29 “First Commercial Sale” shall mean, with respect to any
Product, the first sale of such Product in the United States, for use by a
Third Party, after FDA license approval or clearance of such Product (and
without considering product transfers made pursuant to an Investigational New
Drug application).

 

1

 

2. No Other Amendment.
Except as is expressly set forth in this Amendment No. 7, all other terms and conditions
of the Agreement shall continue in full force and effect.

 

3. Counterparts. This Amendment No. 7 may be executed in counterparts, each
of which shall be an original, and all of which together shall constitute one
and the same instrument.

 

IN WITNESS WHEREOF, the parties have caused
this Amendment No. 7 to be executed and the persons signing below warrant that
they are duly authorized to sign for and on behalf of the respective parties.

 

 

	
  Gen-Probe:

  	
  Chiron:

  
	
   

  	
   

  
	
   

  	
   

  
	
  GEN-PROBE INCORPORATED,

  	
  CHIRON CORPORATION,

  
	
   

  	
   

  
	
  a
  Delaware corporation

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
  By:

  	
  /s/ Hank
  Nordhoff

  	
   

  	
  By:

  	
  /s/ Gene
  W. Walther

  	
   

  
	
  Its:
  President & Chief Executive Officer

  	
  Its:
  President, Chiron Blood Testing

  
	
  Date: May
  16, 2005

  	
  Date: May
  20, 2005

  
						

 

 

 

2

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