Document:

exv4w7

 

Exhibit 4.7

Confidential

EXECUTION VERSION

AMENDED AND RESTATED

CLASS D WARRANT AGREEMENT

     This AMENDED AND RESTATED CLASS D WARRANT AGREEMENT (this “Warrant Agreement”) is dated and
made as of February 24, 2006 and amended and restated as of June 30, 2006 (the “Restatement Date”),
by and between ORTHOLOGIC CORP., a Delaware corporation (the “Company”), and PHARMABIO DEVELOPMENT
INC., a North Carolina corporation, doing business as NovaQuest (“NovaQuest”).

     WHEREAS, the Company and NovaQuest have entered into the Common Stock and Warrant Purchase
Agreement (the “Purchase Agreement”), dated as of February 24, 2006, pursuant to which the Company
granted to NovaQuest the rights set forth in that certain Class D Warrant Agreement (the “Prior
Warrant Agreement”), dated as of February 24, 2006 (the “Prior Warrant Issuance Date”), and the
Registration Rights Agreement (the “Registration Rights Agreement”), dated as of February 24, 2006;

     WHEREAS, the Company and Quintiles, Inc. (“Quintiles”), an affiliate of NovaQuest, have
entered into a Master Services Agreement also dated as February 24, 2006 (the “Services
Agreement”);

     WHEREAS, pursuant to the Purchase Agreement, as modified by that certain letter agreement
between NovaQuest and the Company of even date herewith regarding a waiver of blocking events, the
parties desire to amend and restate the Prior Warrant Agreement as set forth in this Warrant
Agreement;

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties, the parties agree as follows:

     1. The Warrant.

          (a) The Company hereby agrees to issue and sell to NovaQuest, its designee or assigns (the
“Holder”) 80,000 shares (the “Warrant Shares”) of the Company’s Common Stock, $0.0005 par value per
share (“Common Stock”), at an exercise price of One Dollar and Ninety-One Cents ($1.91) per share
(the “Exercise Price”) (such Exercise Price was calculated as follows: the average of the closing
prices of the shares of Common Stock for the 15 trading days prior to the Restatement Date,
multiplied by 115%), upon the terms and conditions herein set forth, including the vesting schedule
set forth in this Section 1. The Exercise Price and the number of Warrant Shares purchasable upon
exercise of this Warrant Agreement are subject to adjustment from time to time as provided in
Section 4 of this Warrant Agreement.

          (b) Upon **** (the “Milestone”), the Joint Development Committee (as defined in the Services
Agreement) shall promptly and in good faith determine an appropriate vesting schedule for the
Warrant Shares, based on ****, and having a vesting structure generally

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

 

 

similar to the Class B and Class C Warrant Agreements between the Company and PharmaBio. Upon the
determination of such vesting schedule by the Joint Development Committee, the parties hereto
promptly shall enter into an appropriate amendment to this Warrant Agreement reflecting such
vesting schedule.

          (c) In the event that the vesting schedule determined under Section 1(b) above fails to be
achieved, or fails to be achievable, and such failure is not caused solely by Quintiles, then the
Joint Development Committee (as defined in the Services Agreement) shall promptly and in good faith
review the existing vesting schedule and the events and circumstances that caused or resulted in
such failure; and the Joint Development Committee shall determine a new vesting schedule that shall
extend each date within the existing vesting schedule by the duration of the events or
circumstances that caused or resulted in such failure, up to one year; provided that the vesting
schedule shall be extended pursuant to this Section 1(c) only once. The parties hereto promptly
shall enter into an appropriate amendment to this Warrant Agreement reflecting such extension.

          (d) Notwithstanding Section 1(b), the Holder’s right to exercise this Warrant Agreement will
vest upon a Change of Control. “Change of Control” means the occurrence of any of the following:
(a) any “person” or “group” (as such terms are defined in Section 13(d) and Section 14(d) of the
Securities Exchange Act of 1934, as amended, or any successor provisions (the “Exchange Act”))
becomes the “beneficial owner” (as determined in accordance with Rule 13d-3 under the Exchange
Act), directly or indirectly, of shares of voting securities of the Company representing 50% or
more of the total voting power of all outstanding voting securities of the Company; (b) the sale,
lease, license, exchange or other transfer (in one or a series of transactions) of all or
substantially all of the assets of the Company, or all or substantially all of the assets relating
to TP508; or (c) any merger, consolidation, share exchange, business combination or similar
transaction in which the Company is not the surviving entity or in which the holders of the
outstanding shares of stock of the Company immediately prior to such transaction hold, immediately
after such transaction, less that 51% of the total voting power of the outstanding securities of
the surviving or resulting entity in such transaction.

     2. Expiration Date. This Warrant Agreement, and the Holder’s right to purchase any of
the Warrant Shares, will expire at 5:00 p.m. Eastern Time on the tenth anniversary of the Prior
Warrant Issuance Date (the “Expiration Date”).

     3. Exercise of this Warrant Agreement. (a) The Holder may exercise this Warrant
Agreement, on any Business Day, at any time from and after the date hereof and prior to the
Expiration Date, in whole or in part, as adjusted from time to time as provided in Section 4 of
this Warrant Agreement, by: (a) the surrender of this Warrant Agreement, with the Exercise Form
substantially in the form attached hereto as Annex A properly completed and executed, at the
principal office of the Company, and (b) upon payment by the delivery of a certified check or
official bank check or wire transfer of immediately available funds, payable to the order of the
Company in an amount equal to the aggregate purchase price for the Warrant Shares being purchased
upon such exercise. Upon receipt thereof by the Company, the Holder will be deemed to be the
holder of record of the Warrant Shares issuable upon such exercise as of the close of

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

2

 

business on the date of such receipt by the Company, and the Company will promptly execute or cause
to be executed and delivered to the Holder, a certificate or certificates representing the
aggregate number of Warrant Shares specified in the Exercise Form. If this Warrant Agreement is
exercised only in part, the Company will, at the time of delivery of said stock certificate or
certificates, deliver to the Holder a new Warrant Agreement of like tenor evidencing the right of
the Holder to purchase the remaining Warrant Shares then covered by this Warrant Agreement.
“Business Day” shall mean any day, other than a Saturday, Sunday or legal holiday during which
banks in North Carolina, United States are open for the conduct of their banking business.

          (b) In lieu of exercising this Warrant Agreement, the Holder may elect to receive shares equal
to the value of this Warrant Agreement (or the portion of the Warrant Shares hereunder being
cancelled or surrendered) by sending written notice of such election to the Company, in which event
the Company shall deliver to the Holder a stock certificate representing a number of shares of
Common Stock computed using the following formula:

                                             X=Y(A-B)

                                                     A

Where:

X = the number of shares of Common Stock to be issued to the Holder

Y = the number of shares of Common Stock purchasable under this Warrant Agreement
as to which the Holder is then exercising this Warrant Agreement

A = the fair market value of one share of Common Stock

B = the Exercise Price (as adjusted to the date of such calculations)

          (c) For purposes of this Section, “fair market value” of one share of Common Stock shall mean
the closing price reported on the Nasdaq National Market or the principal exchange on which the
Common Stock is listed, or the average of the closing bid and asked prices of the Common Stock
quoted in the Over-The-Counter market, whichever is applicable, in each such case averaged over a
period of fifteen (15) consecutive trading days immediately preceding the date that the Exercise
Form is delivered to the Company. If the Common Stock is not traded on such market or exchange, or
Over-The-Counter, the fair market value of the Common Stock will be the price per share which the
Company could obtain from a willing buyer for shares sold by the Company from authorized but
unissued shares, as agreed upon by the Company and the Holder in good faith or, absent such
agreement, as shall be determined by arbitration instituted by either party under the rules of the
American Arbitration Association.

          (d) If this Warrant Agreement has not been exercised prior to the Expiration Date, the Holder
shall be deemed to have elected, prior to the close of business on the Expiration Date, to receive
shares pursuant to this Section 3.

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

3

 

     4. Certain Adjustments. The Exercise Price at which Warrant Shares may be purchased
and the number of Warrant Shares to be purchased upon exercise of this Warrant Agreement are
subject to change or adjustment from time to time as follows:

          (a) Merger, Sale of Assets, etc. If at any time while this Warrant Agreement, or any
portion hereof, is outstanding and unexpired there shall be (i) a reorganization (other than a
combination, reclassification, exchange or subdivision of shares otherwise provided for herein),
(ii) a merger or consolidation of the Company with or into another corporation or entity in which
the Company is not the surviving entity, or a reverse triangular merger or share exchange in which
the Company is the surviving entity but the shares of the Company’s capital stock outstanding
immediately prior to the merger or share exchange are exchanged or converted by virtue of the
merger or share exchange into other property, whether in the form of securities, cash, or
otherwise, or (iii) a sale, lease, license or other transfer of all or substantially all of the
Company’s properties or assets to any other person or entity, then, as a part of such
reorganization, merger, consolidation, exchange or other transfer, lawful provision shall be made
so that the Holder shall thereafter be entitled to receive upon exercise of this Warrant Agreement,
during the period specified herein and upon payment of the Exercise Price then in effect, the
number of shares of stock or other securities or property resulting from such reorganization,
merger, consolidation, exchange or other transfer that a holder of the shares deliverable upon
exercise of this Warrant Agreement would have been entitled to receive in such reorganization,
merger, consolidation, exchange or other transfer if this Warrant Agreement had been exercised
immediately before the record date of (or the date of, if no record date is fixed) such
reorganization, merger, consolidation, exchange or other transfer, all subject to further
adjustment as provided in this Section 4. The foregoing provisions of this Section 4(a) shall
similarly apply to successive reorganizations, mergers, consolidations, exchanges or other
transfers and to the stock or securities of any other corporation that are at the time receivable
upon the exercise of this Warrant Agreement. If the per-share consideration payable to the Holder
hereof for shares in connection with any such transaction is in a form other than cash or
marketable securities, then the value of such consideration shall be reasonably determined in good
faith by the Company’s Board of Directors. In all events, appropriate adjustment (as reasonably
determined in good faith by the Company’s Board of Directors) shall be made in the application of
the provisions of this Warrant Agreement with respect to the rights and interests of the Holder
after any of the above-referenced transactions, to the end that the provisions of this Warrant
Agreement shall be applicable after such event, as near as reasonably may be, in relation to any
shares or other property deliverable after such event upon exercise of this Warrant Agreement.

          (b) Reclassification, etc. If the Company, at any time while this Warrant Agreement,
or any portion hereof, remains outstanding and unexpired, by reclassification of securities or
otherwise, shall change any of the securities as to which purchase rights under this Warrant
Agreement exist into the same or a different number of securities of any other class or classes,
this Warrant Agreement shall thereafter represent the right to acquire such number and kind of
securities as the Holder would have received if this Warrant Agreement had been exercised in full
immediately prior to such reclassification or other change or immediately prior to the record date
with respect thereto and the Exercise Price therefor shall be appropriately

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

4

 

adjusted, all subject to further adjustment as provided in this Section 4. The foregoing
provisions of this Section 4(b) shall similarly apply to successive reclassifications or other
changes.

          (c) Split, Subdivision or Combination of Shares. If the Company, at any time while
this Warrant Agreement, or any portion hereof, remains outstanding and unexpired, shall split,
subdivide or combine the securities as to which purchase rights under this Warrant Agreement exist,
into a different number of securities of the same class, the Exercise Price for such securities
shall be proportionately decreased in the case of a split or subdivision or proportionately
increased in the case of a combination. Upon each adjustment in the Exercise Price pursuant to
this subsection, the number of shares of such securities purchasable hereunder shall be adjusted,
to the nearest whole share, to the product obtained by multiplying the number of shares purchasable
immediately prior to such adjustment in the Exercise Price by a fraction, the numerator of which
shall be the Exercise Price immediately prior to such adjustment and the denominator of which shall
be the Exercise Price immediately thereafter.

          (d) Certificate as to Adjustments. Upon the occurrence of each adjustment pursuant to
this Section 4, the Company at its expense shall promptly compute such adjustment in accordance
with the terms hereof and furnish to any Holder of this Warrant Agreement a certificate signed by
its Chief Financial Officer setting forth such adjustment and showing in detail the event requiring
the adjustment, the amount of such adjustment, the method by which such adjustment was calculated,
the Exercise Price at the time in effect, and the number of shares and the amount, if any, of the
property that at the time would be received upon the exercise of this Warrant Agreement, together
with the facts upon which such adjustment is based. The Company shall, upon the written request,
at any time, of any Holder, promptly furnish or cause to be furnished to such Holder a like
certificate setting forth: (i) all such previous adjustments; (ii) the Exercise Price at the time
in effect; and (iii) the number of shares and the amount, if any, of other property that at the
time would be received upon the exercise of this Warrant Agreement.

          (e) No Dilution or Impairment. The Company will not, by amendment of its certificate
of incorporation or through any reorganization, recapitalization, reclassification, transfer of
assets, consolidation, merger, business combination, or dissolution, avoid or seek to avoid the
intent of this Section 4 or the observance or performance of any of the terms to be observed or
performed by the Company under this Warrant Agreement, but will at all times in good faith assist
in the carrying out of all the provisions of this Section 4 and in the taking of all such action as
may be necessary or appropriate in order to protect the rights of the holder of this Warrant
Agreement against impairment.

          (f) Conformity with Warrant Agreement. In the event that at any time, as a result of
any adjustment made pursuant to this Section 4, the Holder thereafter shall become entitled to
receive any shares of capital stock of the Company other than Common Stock, thereafter the number
of such other shares so receivable upon exercise of the Warrant Agreement shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Common Stock contained in this Section 4.

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

5

 

     5. Fractional Shares. Fractional shares will not be issued upon the exercise of this
Warrant Agreement, but in any case where the Holder would, except for the provisions of this
Section, be entitled under the terms of this Warrant Agreement to receive a fractional share upon
the exercise of this Warrant Agreement, the Company will, upon the exercise of this Warrant
Agreement for the largest number of whole shares then called for, pay a sum in cash equal to the
excess of the fair market value of such fractional share (determined in such reasonable manner as
may be prescribed by the Board of Directors of the Company in its discretion) over the proportional
part of the per share purchase price represented by such fractional share.

     6. Notices of Certain Events. In case:

          (a) the Company shall take a record of the holders of its Common Stock (or other stock or
securities at the time receivable upon the exercise of this Warrant Agreement) for the purpose of
entitling them to receive any dividend or other distribution, or stock subdivision or combination,
or any right to subscribe for or purchase any shares of stock of any class or any other securities,
or to receive any other right, or

          (b) of any reorganization or recapitalization of the Company, any reclassification of the
capital stock of the Company, any consolidation, merger, share exchange or other business
combination of the Company with or into another corporation or entity, or any sale, lease, license
or other transfer of all or substantially all of the assets of the Company to another corporation
or entity, or

          (c) of any voluntary dissolution, liquidation or winding-up of the Company,

then, and in each such case, the Company will cause written notice thereof to be delivered to the
Holder specifying, as the case may be, (i) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, and stating the amount and character of such
dividend, distribution or right or (ii) the date on which such reorganization, recapitalization,
reclassification, consolidation, merger, share exchange, business combination, transfer,
dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of
which the holders of record of Common Stock (or such stock or securities at the time receivable
upon the exercise of this Warrant Agreement) shall be entitled to exchange their shares of Common
Stock (or such other stock or securities) for securities or other property deliverable upon such
reorganization, reclassification, recapitalization, consolidation, merger, share exchange, business
combination, transfer, dissolution, liquidation or winding-up. Such notice shall be delivered at
least ten (10) Business Days prior to the date required to be specified therein pursuant to this
Section 6.

     7. No Rights as Stockholder; Limitation of Liability. This Warrant Agreement, as
distinct from the shares for which this Warrant Agreement is exercisable, will not entitle the
Holder to any of the rights of a stockholder of the Company. No provision of this Warrant
Agreement, prior to the exercise of this Warrant Agreement, and no mere enumeration herein of the
rights or privileges of the Holder, will give rise to any liability of the Holder for the purchase

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

6

 

price or as a stockholder of the Company, whether such liability is asserted by the Company or by
creditors of the Company.

     8. Miscellaneous.

          (a) Representations by the Company. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware. The Company has
all necessary corporate power and authority to carry on its business as now conducted. The
Company has all necessary corporate power and authority to execute and deliver this Warrant
Agreement and to consummate the transactions contemplated hereby. The execution and delivery of
this Warrant Agreement and consummation of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of the Company and no other corporate
proceedings on the part of the Company are necessary to authorize this Warrant Agreement or to
consummate the transactions contemplated hereby. No further approval or authority of the board of
directors or stockholders of the Company will be required for the issuance and sale of the Warrant
Shares to be issued by the Company as contemplated herein. This Warrant Agreement has been duly
and validly executed and delivered by the Company and constitutes a valid, legal and binding
agreement of the Company, enforceable against the Company in accordance with its terms.

          (b) Successors and Assigns. This Warrant Agreement shall be binding on and inure to
the benefit of the Holder and the Company and their respective successors and assigns.

          (c) Amendments and Waivers. This Warrant Agreement and any provision hereof may be
amended, changed, waived, discharged or terminated only by an instrument in writing signed by both
parties hereto.

          (d) Loss, Theft, Destruction or Mutilation. Upon receipt by the Company of evidence
reasonably satisfactory to it that this Warrant Agreement has been lost, stolen, destroyed or
mutilated, and in the case of any lost, stolen or destroyed Warrant Agreement, an indemnity
reasonably satisfactory to the Company, or in the case of a mutilated Warrant Agreement, upon
surrender and cancellation hereof, the Company will execute and deliver in the name of the
registered holder of this Warrant Agreement, in exchange and substitution for the Warrant Agreement
so lost, stolen, destroyed or mutilated, a new Warrant Agreement of like tenor and amount.

          (e) Warrant Exchangeable for Different Denominations. This Warrant Agreement is
exchangeable, upon the surrender hereof by the Holder at the principal office of the Company for
new Warrant Agreements of like tenor representing in the aggregate the right to purchase the number
of shares which may be purchased hereunder, each of such new Warrant Agreements to represent the
right to purchase such number of Warrant Shares as shall be designated by said Holder hereof at the
time of such surrender.

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

7

 

          (f) Law Governing. This Warrant Agreement will be governed by, and construed and
enforced in accordance with, the laws of the State of North Carolina, without regard to
conflicts-of-laws principles that would require the application of any other law.

          (g) Entire Agreement. This Warrant Agreement, together with the Purchase Agreement,
the Registration Rights Agreement, and the other transaction documents referred to therein or
contemplated thereby, constitutes the full and entire understanding and agreement among the parties
with regard to the subject matter of this Warrant Agreement, and supersedes all prior agreements,
understandings, inducements or conditions, express or implied, oral or written, with respect to the
subject matter of this Warrant Agreement, including, without limitation, the Prior Warrant
Agreement, which is hereby terminated in its entirety.

          (h) Notices. Unless otherwise provided herein, all notices, requests, demands and
other communications required or permitted under this Warrant Agreement shall be in writing and
will be deemed to have been duly made and received: (i) upon personal delivery; (ii) three (3)
Business Days after deposit with the United States Post Office, by registered or certified mail or
by first class mail, postage prepaid, addressed as set forth below; or (iii) one (1) Business Day
after deposit with a nationally recognized, overnight courier (for next business day delivery),
shipping prepaid, addressed as set forth below:

	 	 	 	 	 
	 

	 	If to Company:
	 	OrthoLogic Corp.
	 

	 	 	 	1275 West Washington Street
	 

	 	 	 	Tempe, Arizona 85281
	 

	 	 	 	Attn: Chief Executive Officer
	 

	 	 	 	Facsimile: (602) 470-7080
	 
	 	 	 	 
	 

	 	With a copy to	 	 
	 

	 	(which shall not	 	 
	 

	 	constitute notice):
	 	Quarles & Brady Streich Lang llp
	 

	 	 	 	One Renaissance Square
	 

	 	 	 	Two North Central Avenue
	 

	 	 	 	Phoenix, Arizona 85004
	 

	 	 	 	Attn: Steven P. Emerick
	 

	 	 	 	Facsimile: (602) 417-2980
	 
	 	 	 	 
	 

	 	If to Purchaser:
	 	PharmaBio Development Inc.
	 

	 	 	 	(d/b/a NovaQuest)
	 

	 	 	 	4709 Creekstone Drive
	 

	 	 	 	Suite 200 Riverbirch Building
	 

	 	 	 	Durham, NC 27703
	 

	 	 	 	Attn: President
	 

	 	 	 	Facsimile: (919) 998-2090

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

8

 

	 	 	 	 	 
	 

	 	With a copy to	 	 
	 

	 	(which shall not	 	 
	 

	 	constitute notice):
	 	Smith, Anderson, Blount, Dorsett
	 

	 	 	 	Mitchell & Jernigan, L.L.P.
	 

	 	 	 	2500 Wachovia Capitol Center
	 

	 	 	 	Raleigh, NC 27601
	 

	 	 	 	Attn: Christopher B. Capel
	 

	 	 	 	Facsimile: (919) 821-6800

Either party may change the address to which communications are to be sent by giving five (5)
Business Days’ advance notice of such change of address to the other party in conformity with the
provisions of this Section.

          (i) Execution; Counterparts. This Warrant Agreement and any amendment hereto may be
executed in counterparts, each of which when executed and delivered shall be deemed to be an
original and all of which counterparts taken together shall constitute but one and the same
instrument. The exchange of copies of this Warrant Agreement or amendments thereto and of
signature pages by facsimile transmission or by email transmission in portable digital format, or
similar format, shall constitute effective execution and delivery of such instrument(s) as to the
parties and may be used in lieu of the original Warrant Agreement or amendment for all purposes.
Signatures of the parties transmitted by facsimile or by email transmission in portable digital
format, or similar format, shall be deemed to be their original signatures for all purposes.

[signature page follows]

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

9

 

[Signature Page to Amended and Restated Class D Warrant Agreement]

     IN WITNESS WHEREOF, the parties have caused this Warrant Agreement to be duly executed and
delivered as of the day and year first written above.

	 	 	 	 	 	 	 
	 	 	ORTHOLOGIC CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Les M. Taeger	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Les M. Taeger	 	 
	 

	 	Title:
	 	CFO	 	 
	 
	 	 	 	 	 	 
	 	 	PHARMABIO DEVELOPMENT INC

(D/B/A NOVAQUEST)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Patrick B. Jordan	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Patrick B. Jordan	 	 
	 

	 	Title:
	 	Vice President, Corporate Development	 	 

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

10

 

ANNEX A

EXERCISE FORM

TO BE EXECUTED BY THE REGISTERED HOLDER

TO EXERCISE THE ATTACHED

AMENDED AND RESTATED CLASS D WARRANT AGREEMENT OF

ORTHOLOGIC CORP.

     The undersigned, [                                        ], pursuant to the provisions of the Class D Warrant
Agreement between OrthoLogic Corp. (the “Company”) and PharmaBio Development Inc. dated as of
February 24, 2006, as amended and restated on June ___, 2006 (the “Warrant Agreement”), hereby
elects to exercise the Warrant Agreement by agreeing to subscribe for and purchase
[                                        ] shares (the “Warrant Shares”) of Common Stock, $0.0005 par value per share, of
the Company, and hereby makes payment of $[                    ] by certified or official bank check or wire
transfer of immediately available funds payable to the order of the Company in payment of the
exercise price therefor.

     The undersigned acknowledges that the sale, transfer, assignment or hypothecation of the
Warrant Shares to be issued upon exercise of this Warrant Agreement is subject to the terms and
conditions of the Warrant Agreement.

	 	 	 	 	 	 	 
	 	 	PharmaBio Development Inc.

(d/b/a NovaQuest)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 
	 

	 	Address:
	 	4709 Creekstone Drive
	 

	 	 	 	Suite 200 Riverbirch Building
	 

	 	 	 	Durham, NC 27703
	 
	 	 	 	 
	Dated:                                         ,                     
	 	 	 	 

 

			
	****	 	Text has been omitted pursuant to a confidentiality request. Omitted text has been filed with the Securities and Exchange Commission.

11exv10w4

 

Exhibit 10.4

Confidential

EXECUTION VERSION

AMENDMENT NO. 1

TO

REGISTRATION RIGHTS AGREEMENT

     THIS AMENDMENT NO. 1 TO REGISTRATION RIGHTS AGREEMENT (this “Amendment”), is dated and
entered into as of June 30, 2006, between PharmaBio Development Inc., a North Carolina
corporation, doing business as NovaQuest (the “Investor”) and OrthoLogic Corp., a
Delaware corporation (the “Company”).

W I T N E S S E T H:

          WHEREAS, pursuant to that certain Common Stock and Warrant Purchase Agreement by and between
the Company and the Investor dated as of February 24, 2006 (the “Agreement”), as modified
by that certain letter agreement between the Investor and the Company regarding a waiver of
blocking events of even date herewith (the “Waiver”), the parties desire that, upon the
terms and subject to the conditions thereof, the Company shall issue to the Investor, and, subject
to the terms and conditions thereof, the Investor shall purchase from the Company, from time to
time as provided in the Agreement, shares of the Company’s common stock, par value $0.0005 per
share (“Common Shares”), and Warrants to purchase shares of such Common Shares as described
therein (the “Warrant Shares” and, together with the Common Shares, the “Common
Stock”);

     WHEREAS, pursuant to the terms of, and in partial consideration for, the Investor’s commitment
to enter into the Agreement, the Company provided the Investor with certain registration rights
with respect to the Common Stock as set forth in that certain Registration Rights Agreement dated
as of February 24, 2006 (the “Rights Agreement”); and

     WHEREAS, in connection with the Waiver, the Investor and the Company desire to amend the
Rights Agreement pursuant to Section 9(a) thereof as described herein.

AGREEMENT

     NOW THEREFORE, the parties agree as follows:

     1. Defined Terms. All initially capitalized terms used but not defined in this
Amendment shall have the meanings assigned to them in the Rights Agreement.

     2. Amendments to Prior Rights Agreement. The Rights Agreement is hereby amended as
follows:

          a. Section 2(a) of the Rights Agreement is deleted in its entirety and replaced with the
following new Section 2(a):

 

 

“(a) Subject to the terms and conditions of this Rights Agreement,
the Company shall, upon the earlier of (i) 10 business days
following the Third Closing Date (as defined in Section 2.02(b) of
the Purchase Agreement) or (ii) 10 Business Days following the
Company’s failure to deliver not less than 10 Business Days before
the Third Closing Date written notice of its intent to sell the
Common Stock associated with the Third Closing Date as contemplated
by Section 2.02(b) of the Purchase Agreement (the “Filing
Deadline”), file with the Commission an appropriate registration
statement on Form S-3 (or any successor or other appropriate form)
under the Securities Act for the registration of the Common Stock
(the “Registration Statement”), and thereafter shall use its
best efforts to cause such Registration Statement to be declared
effective as promptly as practicable. Furthermore, at the time of
filing of the Registration Statement, the Company shall file (A)
such blue sky filings as shall have been requested by the Investor;
and (B) any required filings with the National Association of
Securities Dealers, Inc. or exchange or market where the Common
Stock is traded.”

          b. The following Section 2(c) is added to the provisions of the Rights Agreement:

“(c) Notwithstanding anything herein to the contrary, if the Company is not
permitted to register for resale under the Securities Act the Warrant Shares
issuable under the Class B Warrant, the Class C Warrant and/or the Class D
Warrant (the “Unvested Warrant Shares”), then: (i) the Company’s obligations
hereunder to register the Common Stock for resale initially shall apply only
to Common Stock other than the Unvested Warrant Shares; (ii) the Company
shall be required hereunder to register the Unvested Warrant Shares for
resale as and to the extent that such shares may then be acquired upon
exercise of the relevant warrant agreements and upon receipt of a written
request from the Investor for such registration; and (iii) the Filing
Deadline in respect of any portion of the Unvested Warrant Shares shall be
45 days following the Company’s receipt from the Investor of a written
request for registration of such portion of the Unvested Warrant Shares
which Investor is then entitled to purchase under the relevant warrant
agreement.”

          c. The following Section 2(d) is added to the provisions of the Rights Agreement:

“(d) If the Registration Statement is not filed within thirty (30)
days following the Third Closing Date (a “Registration
Default”), the Company shall make cash payments (as liquidated
damages and not as a penalty) to Investor equal to one percent (1%)
of the aggregate purchase price paid by Investor for the Common
Stock

2

 

for each thirty (30) day period (pro rated for partial periods) in
which a Registration Default exists, up to a maximum of six percent
(6%) of the aggregate purchase price paid by Investor for the Common
Stock. Each such payment required to be made under this Section
2(d) shall be made within five (5) Business Days following the last
day of each calendar month in which a Registration Default exists.
Any such payment made following such five (5) Business Day window
shall be subject to interest at the lower of twelve percent (12%)
and the maximum rate permitted by applicable law. Any such payment
shall be in addition to any other remedies available to Investor at
law or in equity, whether pursuant to the terms hereof, the
Agreement or otherwise.”

     3. Representations of the Company. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware. The Company has
all necessary corporate power and authority to carry on its business as now conducted. The
Company has all necessary corporate power and authority to execute and deliver this Amendment and
to consummate the transactions contemplated hereby and by the Rights Agreement. The execution and
delivery of this Amendment and consummation of the transactions contemplated hereby and by the
Rights Agreement have been duly authorized by all necessary corporate action on the part of the
Company and no other corporate proceedings on the part of the Company are necessary to authorize
this Amendment or to consummate the transactions contemplated hereby or by the Rights Agreement.
This Amendment has been duly and validly executed and delivered by the Company and constitutes a
valid, legal and binding agreement of the Company, enforceable against the Company in accordance
with its terms.

     4. No Other Amendments. The Rights Agreement, as amended by this Amendment, is and
shall continue to be in full force and effect and is hereby in all respects ratified and confirmed.

     5. Headings. The section headings herein are for convenience of reference only and
shall not affect the interpretation of this Amendment. All paragraph references herein are to
sections of this Amendment unless specified otherwise.

     6. Governing Law. This Amendment, including, without limitation, the interpretation,
performance, enforcement, breach or termination thereof and any remedies relating thereto, shall be
governed by and construed in accordance with the laws of the State of North Carolina, as applied to
agreements executed and performed entirely in the State of North Carolina, without regard to
conflicts of law rules.

[signature page follows]

3

 

[Signature Page to Amendment No. 1 to Registration Rights Agreement]

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 
	OrthoLogic Corp.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Les M. Taeger	 	 
	 

	 	 	 	 
	 

	 	Name: Les M. Taeger	 	 
	 

	 	Title: CFO	 	 
	 
	 	 	 	 
	PharmaBio Development Inc.

(D/B/A NovaQuest)	 	 
	 
	 	 	 	 
	By:

	 	/s/ Patrick B. Jordan	 	 
	 

	 	 	 	 
	 

	 	Name: Patrick B. Jordan	 	 
	 

	 	Title: Vice President, Corporate Development

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]