Document:

EXHIBIT
10.3

 

REGISTRATION
RIGHTS AGREEMENT

 

REGISTRATION RIGHTS AGREEMENT (this “Agreement”),
dated as of April 29, 2008, by and between ARRAY BIOPHARMA INC., a Delaware corporation (the “Company”),
DEERFIELD PRIVATE DESIGN FUND, L.P. (“Deerfield
Design”) and DEERFIELD PRIVATE DESIGN INTERNATIONAL, L.P.
(“Deerfield Design International” and together with Deerfield Design,
the “Buyer”).

 

WHEREAS:

 

A. In connection with the Facility Agreement by and
between the parties hereto of even date herewith (the “Facility Agreement”),
the Company has agreed, upon the terms and subject to the conditions contained
therein, to issue and sell to the Buyer Warrants in the amount described in the
Facility Agreement, where each of the Warrants is exercisable into shares of the
Company’s common stock, par value $0.001 per share (the “Common Stock”),
upon the terms and conditions and subject to the limitations and conditions set
forth in the Warrants, all subject to the terms and conditions of the Facility
Agreement; and

 

B. To induce the Buyer to execute and deliver the
Facility Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the “Securities
Act”), and applicable state securities laws,

 

NOW, THEREFORE, 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
the Buyer hereby agree as follows:

 

1. DEFINITIONS.

 

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

 

(i) “Buyer” means the purchaser of
Warrants pursuant to the Facility Agreement specified on the signature page hereof,
and any permitted transferee or assignee who agrees to become bound by the
provisions of this Agreement in accordance with Section 10 hereof.

 

(ii) “Filing Deadline,” for each
Registration Statement required to be filed hereunder, shall mean a date that
is thirty (30) calendar days following the date the Warrants are issued.

 

(iii) “Registration Deadline” shall mean
the earlier of (i) the date that is ninety (90) days after the date that
the Registration Statement is actually filed or (ii) the date that is
ninety (90) days after the Filing Deadline.

 

(iv) “Warrant(s)” means the warrants
issued by the Company pursuant to the Facility Agreement.

 

(v) “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 under the Securities Act or any successor rule providing
for offering securities on a continuous basis, and the declaration or ordering
of effectiveness of such Registration Statement by the United States Securities
and Exchange Commission (the “SEC”).

 

 

(vi) “Registrable Securities,” for a given
Registration, means (a) any shares of Common Stock (the “Warrant Shares”)
issued or issuable upon exercise of or otherwise pursuant to the Warrants
(without giving effect to any limitations on exercise set forth in the
Warrants), (b) any shares of capital stock issued or issuable as a
dividend on or in exchange for or otherwise with respect to any of the
foregoing, (c) any additional shares of Common Stock issuable in
connection with any anti-dilution provisions in the Warrants, (d) any
other warrants or shares of Common Stock issued pursuant to the terms of the
Facility Agreement, the Warrants or this Registration Rights Agreement, and (e) any
securities issued or issuable upon any stock split, dividend or other
distribution, recapitalization or similar event with respect to the foregoing.
Securities will cease to be Registrable Securities when (A) they have been
effectively registered under the Securities Act and disposed of in accordance
with the registration statement covering them; (B) they are transferred
pursuant to Rule 144 or an exemption from registration under the
Securities Act; or (C) they have been otherwise transferred and new
certificates for them not bearing a restrictive legend have been issued by the
Company and the Company shall not have a “stop transfer” instructions against
them.

 

(vii) “Registration Statement(s)” means a
registration statement(s) of the Company under the Securities Act required
to be filed hereunder.

 

2. REGISTRATION.

 

a. Mandatory
Registration.
Following the date Warrants are issued pursuant to the Facility Agreement (the “Issuance
Date”), the Company shall prepare, and, on or prior to the applicable
Filing Deadline file with the SEC a Registration Statement (the “Mandatory
Registration Statement”) on Form S-3 (or, if Form S-3 is not then
available, on such form of Registration Statement as is then available to effect
a registration of the Registrable Securities, subject to the consent of the
Buyer, which consent will not be unreasonably withheld) covering the resale of
the Registrable Securities issued on the applicable Issuance Date, which
Registration Statement, to the extent allowable under the Securities Act and
the rules and regulations promulgated thereunder (including Rule 416),
shall state that such Registration Statement also covers such indeterminate
number of additional shares of Common Stock as may become issuable upon
exercise of or otherwise pursuant to the Warrants to prevent dilution resulting
from stock splits, stock dividends or similar transactions. The number of
shares of Common Stock initially included in such Registration Statement shall
be no less than the aggregate number of Warrant Shares that are then issuable
upon exercise of or otherwise pursuant to the Warrants issued on the Issuance
Date (as defined herein), without regard to any limitation on the Buyer’s
ability to exercise the Warrants, respectively. The Company acknowledges that
the number of shares initially included in the Registration Statement
represents a good faith estimate of the maximum number of shares issuable upon
exercise of or otherwise pursuant to the Warrants issued on the Issuance Date
and shall be amended if not sufficient. The Registration Statement (and each
amendment or supplement thereto, and each request for acceleration of
effectiveness thereof) shall be provided to (and subject to the approval, which
shall not be unreasonably withheld, of) the Buyer and its counsel prior to its
filing or other submission.

 

b.  Piggy-Back Registrations. 
Subject to the last sentence of this Section 2(b), if at any time
prior to the expiration of the Registration Period (as hereinafter defined) the
Company shall determine to file with the SEC a Registration Statement relating
to an offering for its own account or the account of others under the
Securities Act of any of its equity securities (other than on Form S-8 or
its then equivalent relating to equity securities to be issued solely in
connection with equity securities issuable in connection with stock option,
stock purchase or other employee benefit plans or a registration statement
relating to any acquisition of any entity or business), the Company shall send
to Buyer written notice of such determination and, if within fifteen (15) days
after the effective date of such notice, the Buyer shall so request in writing,
the Company shall include in such Registration Statement all or any part of the
Registrable Securities the Buyer requests to be registered, except that if, in
connection with any 

 

2

 

underwritten public offering for the account of the
Company, the managing underwriter(s) thereof shall impose a limitation on
the number of Registrable Securities which may be included in the Registration
Statement because, in such underwriter(s)’ judgment, marketing or other factors
dictate such limitation is necessary to facilitate public distribution, then
the Company shall be obligated to include in such Registration Statement only
such limited portion of the Registrable Securities with respect to which the
Buyer has requested inclusion hereunder as the underwriter shall permit;

 

PROVIDED, HOWEVER, that the Company shall not exclude any
Registrable Securities unless the Company has first excluded all outstanding
securities, the holders of which are not entitled by contract to inclusion of
such securities in such Registration Statement or are not entitled to pro rata
inclusion with the Registrable Securities; and

 

PROVIDED, FURTHER, HOWEVER, that, after giving effect to the
immediately preceding proviso, any exclusion of Registrable Securities shall be
made pro rata with holders of other securities having the contractual right to
include such securities in the Registration Statement other than holders of
securities entitled to inclusion of their securities in such Registration
Statement by reason of demand registration rights. No right to registration of
Registrable Securities under this Section 2(b) shall be construed to
limit any registration required under Section 2(a) hereof. If an
offering in connection with which the Buyer is entitled to registration under
this Section 2(b) is an underwritten offering, then the Buyer shall,
unless otherwise agreed by the Company, offer and sell such Registrable
Securities in an underwritten offering using the same underwriter or
underwriters and, subject to the provisions of this Agreement and the underwriting
agreement in such offering, on the same terms and conditions as other shares of
Common Stock included in such underwritten offering (including, without
limitation, execution of an agreement with the managing underwriter or agent
limiting the sale or distribution such Buyer may make of shares of Common Stock
or any securities convertible or exchangeable or exerciseable for such shares
of the Company, except as part of such registration). Notwithstanding anything
to the contrary set forth herein, the registration rights of the Buyer pursuant
to this Section 2(b) shall only be available in the event the Company
fails to timely file, obtain effectiveness or maintain effectiveness of any
Registration Statement to be filed pursuant to Section 2(a) in
accordance with the terms of this Agreement.

 

3. OBLIGATIONS OF THE COMPANY. In connection with the registration of the
Registrable Securities, the Company shall have the following obligations:

 

a. The Company shall prepare promptly, and file with
the SEC as soon as practicable after the Issuance Date (but no later than the
Filing Deadline), a Registration Statement with respect to the number of
Registrable Securities provided in Section 2(a), and thereafter use its
reasonable best efforts to cause each such Registration Statement relating to
Registrable Securities to become effective as soon as possible after such
filing, but in any event shall cause such Registration Statement relating to
Registrable Securities to become effective no later than the Registration Deadline,
and shall keep the Registration Statement current and effective pursuant to Rule 415
at all times until such date as is the earlier of (i) the date on which
all of the Registrable Securities for such Registration Statement have been
sold and (ii) the date on which all of the Registrable Securities for such
Registration Statement (in the opinion of counsel to the Buyer) may be
immediately sold to the public without registration or restriction (including
without limitation as to volume by each holder thereof) under the Securities
Act (the “Registration Period”), which Registration Statement (including
any amendments or supplements thereto and prospectuses contained therein) shall
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
not misleading.

 

b. The Company shall 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 keep the Registration Statement
current and effective at 

 

3

 

all times during the Registration Period, and,
during such period, 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 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. In the event that on any Trading Day (as defined below) (the “Registration
Trigger Date”) the number of shares available under the Registration
Statements filed pursuant to this Agreement is insufficient to cover all of the
Registrable Securities issued or issuable upon exercise of or otherwise
pursuant to the Warrants, without giving effect to any limitations on the Buyer’
ability to exercise the Warrants, the Company shall amend the Registration
Statement, or file a new Registration Statement (on the short form available
therefor, if applicable), or both, so as to cover the total number of
Registrable Securities so issued or issuable (without giving effect to any
limitations on exercise contained in the Warrants or limitations on conversion
or exercise) as of the Registration Trigger Date as soon as practicable, but in
any event within thirty (30) days after the Registration Trigger Date, or as
promptly as practicable if the Company is required to increase its authorized
shares (based on the Exercise Price (as defined in the Warrants) of the
Warrants, and other relevant factors on which the Company reasonably elects to
rely). The Company shall use its reasonable best efforts to cause such
amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof, but in any event the Company shall
cause such amendment and/or new Registration Statement to become effective
within sixty (60) days of the Registration Trigger Date or as promptly as
practicable in the event the Company is required to increase its authorized
shares.  “Trading Day” shall mean
any day on which the Common Sock is traded for any period on the NASDAQ Global
Market, or on the principal securities exchange or other securities market on
which the Common Stock is then being traded.

 

c. The Company shall furnish to the Buyer and its
legal counsel (i) promptly after the same is prepared and publicly
distributed, filed with the SEC, or received by the Company, one copy of the
Registration Statement and any amendment thereto, each preliminary prospectus
and prospectus and each amendment or supplement thereto, and, in the case of a
Registration Statement referred to in Section 2(a), each letter written by
or on behalf of the Company to the SEC or the staff of the SEC, and each item
of correspondence from the SEC or the staff of the SEC, in each case relating
to such Registration Statement (other than any portion of any thereof which
contains information for which the Company has sought confidential treatment),
and (ii) such number of copies of a prospectus, including a preliminary
prospectus, and all amendments and supplements thereto and such other documents
as the Buyer may reasonably request in order to facilitate the disposition of
the Registrable Securities owned by the Buyer. The Company will immediately
notify the Buyer by facsimile of the effectiveness of each Registration Statement
or any post-effective amendment. The Company will promptly respond to any and
all comments received from the SEC, with a view towards causing each
Registration Statement or any amendment thereto to be declared effective by the
SEC as soon as practicable and shall file an acceleration request as soon as
practicable, but no later than three (3) business days, following the
resolution or clearance of all SEC comments or, if applicable, following
notification by the SEC that any such Registration Statement or any amendment
thereto will not be subject to review.

 

d. The Company shall use reasonable best efforts to (i) register
and qualify the Registrable Securities covered by the Registration Statements
under such other securities or “blue sky” laws of such jurisdictions in the
United States as the Buyer shall reasonably request, (ii) prepare and file
in those jurisdictions such amendments (including post-effective amendments)
and supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations and
qualifications in effect at all times during the Registration Period, and (iv) take
all other actions reasonably necessary or advisable to qualify the Registrable
Securities for sale in such jurisdictions; PROVIDED, HOWEVER, that the Company
shall not be required in connection therewith or as a condition thereto to (x) qualify
to do business in any jurisdiction where it would not otherwise be required 

 

4

 

to qualify but for this Section 3(d), (y) subject
itself to general taxation in any such jurisdiction, or (z) file a general
consent to service of process in any such jurisdiction.

 

e. As promptly as practicable after becoming aware
of such event, the Company shall notify the Buyer 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 not misleading, and
use its reasonable best efforts promptly to prepare a supplement or amendment
to the Registration Statement to correct such untrue statement or omission, and
deliver such number of copies of such supplement or amendment to the Buyer as
the Buyer may reasonably request.

 

f. The Company shall use its reasonable best efforts
to prevent the issuance of any stop order or other suspension of effectiveness
of the Registration Statement, and, if such an order is issued, to obtain the
withdrawal of such order at the earliest possible moment and to notify the Buyer
who holds Registrable Securities being sold (or, in the event of an
underwritten offering, the managing underwriters) of the issuance of such order
and the resolution thereof.

 

g. The Company shall permit a single firm of counsel
designated by the Buyer to review such Registration Statement and all
amendments and supplements thereto (as well as all requests for acceleration or
effectiveness thereof), at Buyer’s own cost, a reasonable period of time prior
to their filing with the SEC (not less than five (5) business days but not
more then eight (8) business days) and not file any document in a form to
which such counsel reasonably objects and will not request acceleration of such
Registration Statement without prior notice to such counsel.

 

h. The Company shall hold in confidence and not make
any disclosure of information concerning the Buyer provided to the Company
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, or (iv) such information has been made generally available
to the public other than by disclosure in violation of this or any other
agreement. The Company agrees that it shall, upon learning that disclosure of
such information concerning the Buyer is sought in or by a court or
governmental body of competent jurisdiction or through other means, give prompt
notice to the Buyer prior to making such disclosure, and allow the Buyer, at
its expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, such information.

 

i. The Company shall use its reasonable best efforts
to cause all the Registrable Securities covered by the Registration Statement
to be listed on each 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,
and, if listed on a national exchange, to arrange for at least two market
makers to register with the National Association of Securities Dealers, Inc.
(“NASD”) as such with respect to such Registrable Securities.

 

j. The Company shall 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.

 

k. The Company shall cooperate with the Buyer who
holds Registrable Securities being offered and the managing underwriter or
underwriters as reasonably requested by them with respect to a Registration
Statement, if any, to facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legends) representing Registrable
Securities to be offered pursuant to such Registration Statement and enable
such certificates to be in such denominations or amounts, as the case may be,
as the 

 

5

 

managing underwriter or underwriters, if any, or the
Buyer may reasonably request and registered in such names as the managing
underwriter or underwriters, if any, or the Buyer may request, and, within
three (3) business days after a Registration Statement which includes
Registrable Securities is ordered effective by the SEC, the Company shall
deliver, and shall cause legal counsel selected by the Company to deliver, to
the transfer agent for the Registrable Securities (with copies to the Buyer) an
appropriate instruction and an opinion of such counsel in the form required by
the transfer agent in order to issue the Registrable Securities free of
restrictive legends.

 

l. At the request of the Buyer, the Company shall
prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to a Registration Statement and any 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.

 

m. The Company shall not, and shall not agree to,
allow the holders of any securities of the Company to include any of their
securities in a Registration Statement under Section 2(a) hereof or
any amendment or supplement thereto under Section 3(b) hereof without
the consent of the Buyer. In addition, the Company shall not offer any
securities for its own account or the account of others in a Registration
Statement under Section 2(a) hereof or any amendment or supplement
thereto under Section 3(b) hereof without the consent of the Buyer.

 

n. The Company shall take all other reasonable
actions necessary to expedite and facilitate disposition by the Buyer of
Registrable Securities pursuant to a Registration Statement.

 

o. The Company shall use reasonable best efforts to
comply with all applicable laws related to a Registration Statement and
offering and sale of securities and all applicable rules and regulations
of governmental authorities in connection therewith (including without
limitation the Securities Act and the Exchange Act and the rules and
regulations promulgated by the SEC).

 

p. NASD Rule 2710 Filing; Broker
Compensation. If required by the National Association of Securities Dealers, Inc.
Corporate Financing Department, the Company shall promptly effect a filing with
the NASD pursuant to NASD Rule 2710 with respect to the public offering
contemplated by resales of securities under the Registration Statement (an “Issuer
Filing”), and pay the filing fee required by such Issuer Filing. The
Company shall use commercially reasonable efforts to pursue the Issuer Filing
until the NASD issues a letter confirming that it does not object to the terms
of the offering contemplated by the Registration Statement.

 

q. Notwithstanding anything to the contrary herein,
at any time after the Registration Statement has been declared effective by the
SEC, the Company may delay or suspend the effectiveness of any Registration
Statement or the use of any prospectus forming a part of the Registration
Statement due to the non-disclosure of material, non-public information
concerning Company the disclosure of which at the time is not in its best
interest, in the good faith opinion of the Company (a “Grace Period”);
provided, that the Company shall promptly notify the Buyer in writing of the
existence of a Grace Period in conformity with the provisions of this Section 3(q) and
the date on which the Grace Period will begin (such notice, a “Commencement
Notice”); and, provided further, that no Grace Period shall exceed
30 days, and such Grace Periods shall not exceed an aggregate total of
60 days during any 360-day period. For purposes of determining the length
of a Grace Period above, the Grace Period shall begin on and include the date
specified by the Company in the Commencement Notice and shall end on and
include the date the Buyer receives written notice of the termination of the
Grace Period by the Company (which notice may be contained in the Commencement
Notice).  The provisions of Section 3(e) hereof
shall not be applicable during any Grace Period. Upon expiration of the Grace
Period, the Company shall again be bound by 

 

6

 

Section 3(e) with respect to the
information giving rise thereto unless such material, non-public information is
no longer applicable.

 

r. Notwithstanding anything to the contrary herein,
a delay in the effectiveness of a Registration Statement caused solely by the
filing of a request for confidential treatment shall not be deemed a breach of
the Company’s obligations set forth herein and in such event the Registration Deadline shall be
deemed extended to the date that is ten Business Days after the date the
SEC agrees to allow confidential treatment pursuant to such request or the date
such request is withdrawn by the Company, as applicable.

 

4. OBLIGATIONS OF THE BUYER. In connection with the registration of the
Registrable Securities, the Buyer shall have the following obligations:

 

a. It shall be a condition precedent to the
obligations of the Company to complete the registration pursuant to this
Agreement with respect to the Registrable Securities of the Buyer that the
Buyer shall 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 shall be reasonably required to effect the
registration of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request. At
least five (5) business days prior to the first anticipated filing date of
the Registration Statement, the Company shall notify the Buyer of the
information the Company requires from each Buyer.  The Buyer must provide such information to
the Company at least three (3) Business Days prior to the first
anticipated filing date of such Registration Statement if such Buyer elects to
have any Registrable Securities included in the Registration Statement.

 

b. The Buyer, by the Buyer’s acceptance of the
Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of a
Registration Statement hereunder, unless the Buyer has notified the Company in
writing of the Buyer’s election to exclude all of the Buyer’s Registrable
Securities from such Registration Statement.

 

c. In the event of an underwritten offering pursuant
to Section 2(b) in which any Registrable Securities are to be
included, the Buyer agrees to enter into and perform the Buyer’s 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 and take such other actions as
are reasonably required in order to expedite or facilitate the disposition of
the Registrable Securities, unless the Buyer has notified the Company in
writing of the Buyer’s election to exclude all of the Buyer’s Registrable
Securities from such Registration Statement.

 

d. The Buyer agrees that, upon receipt of any notice
from the Company of the happening of any event of the kind described in Section 3(e) or
3(f) or the commencement of a Grace Period, the Buyer will immediately
discontinue disposition of Registrable Securities pursuant to the Registration
Statement covering such Registrable Securities until the Buyer’s receipt of the
copies of the supplemented or amended prospectus contemplated by Section 3(e) or
3(f) and, if so directed by the Company, the Buyer shall 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 Buyer’s possession, of the
prospectus covering such Registrable Securities current at the time of receipt
of such notice.

 

e. The Buyer agrees that it will not effect any
disposition or other transfer of the Registrable Securities that would
constitute a sale within the meaning of the Securities Act other than
transactions exempt from the registration requirements of the Securities Act or
pursuant to, and as contemplated in, the Registration Statement, and that it
will promptly notify the Company of any material changes in the information set
forth in the Registration Statement furnished by or regarding the Buyer or its
plan of distribution.

 

7

 

5. REGISTRATION FAILURE.  In the event of a Registration
Failure (as defined in the Warrants), the Buyer shall be entitled to Failure
Payments (as defined in the Warrants) and such other rights as set forth in the
Warrants.

 

6. EXPENSES OF REGISTRATION. All reasonable expenses, other than
underwriting discounts and commissions, incurred in connection with
registrations, filings or qualifications pursuant to Sections 2 and 3,
including, without limitation, all registration, listing and qualification
fees, printers and accounting fees, and the fees and disbursements of counsel
for the Company (but not including fees and disbursements for counsel for the
Buyer) shall be borne by the Company.

 

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

 

a. The Company will indemnify, hold harmless and
defend (i) the Buyer, and (ii) the directors, officers, partners,
managers, members, employees, agents and each person who controls any Buyer
within the meaning of the Securities Act or the Exchange Act, (iii) any
underwriter (as defined in the Securities Act) for the Buyer in connection with
an underwritten offering pursuant to Section 2(b) hereof, and (iv) the
directors, officers, partners, employees and each person who controls any such
underwriter within the meaning of the Securities Act or the Exchange Act, if
any (each, an “Indemnified Person”), against any joint or several
losses, claims, damages, liabilities or expenses (collectively, 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 may become subject insofar as such Claims arise out of or
are based upon:  (i) any untrue
statement or alleged untrue statement of a material fact in a Registration
Statement or the omission or alleged omission to state therein a material fact
required to be stated or necessary to make the statements therein not
misleading; (ii) any untrue statement or alleged untrue statement of a
material fact contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) 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 (iii) any violation or alleged violation by the
Company of the Securities Act, the Exchange Act, any other law, including,
without limitation, any state securities law, or any rule or regulation
thereunder relating to the offer or sale of the Registrable Securities (the
matters in the foregoing clauses (i) through (iii) being,
collectively, “Violations”).  The
Company shall reimburse the Indemnified Person, promptly as such expenses are
incurred and are due and payable, for any reasonable legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 7(a) shall
not apply (A)(i) to a Claim arising out of or based upon a Violation to
the extent that such Violation occurs in reliance upon and in conformity with
information furnished in writing to the Company by any Indemnified Person for
use in connection with the preparation of such Registration Statement or any
such amendment thereof or supplement thereto, or (ii) to the extent due to
the failure of Buyer to timely deliver any prospectus, including any corrected
prospectus, timely made available by the Company pursuant to Section 3(d);
or (B) to any amounts paid in settlement of any Claim effected without the
prior written consent of the Company, which consent shall not be unreasonably
withheld.  Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of
the Indemnified Person and shall survive the transfer of the Registrable Securities
by the Buyer pursuant to Section 10.

 

b. The Buyer will indemnify, hold harmless and
defend (i) the Company, and (ii) the directors, officers, partners,
managers, members, employees, or agents of the Company, if any (each, a “Company
Indemnified Person”), against any Claims to which any of them may become
subject insofar as such 

 

8

 

Claims arise out of or are based upon any Violation
which occurs due to the inclusion by the Company in a Registration Statement of
false or misleading information about the Buyer, where such information was
furnished in writing to the Company by the Buyer expressly for the purpose of
inclusion in such Registration Statement. The Buyer shall reimburse the Company
Indemnified Person, promptly as such expenses are incurred and are due and
payable, for any reasonable legal fees or other reasonable expenses incurred by
them in connection with investigating or defending any such Claim, provided
however, that the indemnity agreement contained in this Section 7(b) and
the agreement with respect to contribution contained in Section 8 shall
not apply to amounts paid in settlement of any Claim if such settlement is
effected without the prior written consent of the Buyer which consent shall not
be unreasonably withheld or delayed; PROVIDED, FURTHER, HOWEVER, that the Buyer
shall be liable under this Section 7(b) for only that amount of a
Claim as does not exceed the net amount of proceeds received by Buyer as a
result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Company Indemnified Person.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 7(b) with respect to any
preliminary prospectus shall not inure to the benefit of any Company
Indemnified Person if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected on a timely basis in the
prospectus, as then amended or supplemented.

 

c. Promptly after receipt by a Non-Company
Indemnified Person or a Company Indemnified Person (each an “Indemnified
Person”) under this Section 7 of notice of the commencement of any
action (including any governmental action), such Indemnified Person shall, if a
Claim in respect thereof is to be made against the Company or the Buyer (each
an “Indemnifying Person”) under this Section 7, deliver to the
Indemnifying Person a written notice of the commencement thereof enclosing a
copy of all relevant documents, including all papers served and claims made,
but the failure to deliver written notice to the Indemnifying Person within a
reasonable time of the commencement of any such action shall not relieve the
Indemnifying Person of any liability to the Indemnified Person under this Section 7,
except to the extent that the Indemnifying Person is actually prejudiced in its
ability to defend such action. The indemnification required by this Section 7
shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as such expense, loss, damage or liability is
incurred and is due and payable.

 

d. In the event a Claim is made against an
Indemnified Person and it shall notify the applicable Indemnifying Person of
the commencement thereof as provided by Section 7(c), such Indemnifying
Person shall be entitled to participate in, and provided such Claim is solely
for money damages and does not seek an injunction or other equitable relief
against the Indemnified Person and is not a criminal or regulatory action, to
assume the defense of, such Claim with counsel reasonably satisfactory to such
Indemnified Person, and after notice from such Indemnifying Person to such
Indemnified Person of such Indemnifying Person’s election so to assume the
defense thereof and the failure by such Indemnified Person to object to such
counsel within ten (10) business days following its receipt of such
notice, such Indemnifying Person shall not be liable to such Indemnified Person
for legal or other expenses related to such Claim incurred after such notice of
election to assume such defense except as provided below and except for the
reasonable costs of investigating, monitoring or cooperating in such defense
subsequently incurred by such Indemnified Person reasonably necessary in
connection with the defense thereof. Such Indemnified Person shall have the
right to employ its counsel in any such Claim, but the reasonable fees and
expenses of such counsel shall be at the expense of such Indemnified Person
unless:

 

(i) the engagement of
counsel by such Indemnified Person at the expense of the applicable
Indemnifying Person has been authorized in writing by such Indemnifying Person;

 

9

 

(ii) such Indemnified Person
shall have reasonably concluded in its good faith (which conclusion shall be
determinative unless a court determines that such conclusion was not reached
reasonably and in good faith) that there is or may be a conflict of interest
between the applicable Indemnifying Person and such Indemnified Person in the
conduct of the defense of such Claim or that there are or may be one or more
different or additional defenses, claims, counterclaims, or causes of action
available to such Indemnified Person (it being agreed that in any case referred
to in this clause (ii) such Indemnifying Person shall not have the right
to direct the defense of such Claim on behalf of the Indemnified Person);

 

(iii) the applicable
Indemnifying Person shall not have engaged counsel reasonably acceptable to the
Indemnified Person, to assume the defense of such Claim within a reasonable
time after notice of the commencement thereof, provided however, this clause
shall not be deemed to constitute a waiver of any conflict of interest that may
arise with respect to any such counsel); or

 

(iv) any counsel engaged by
the applicable Indemnifying Person shall fail to timely commence or diligently
conduct the defense of such Claim and such failure has materially prejudiced
(or, in the reasonable judgment of the Indemnified Person, is in danger of
materially prejudicing) the outcome of such Claim;

 

In each instance of (i) through
(iv) above, the reasonable fees and expenses of counsel for such
Indemnified Person shall be at the expense of such Indemnifying Person. Only
one counsel shall be retained by all Indemnified Persons with respect to any
Claim, unless counsel for any Indemnified Person reasonably concludes in good
faith (which conclusion shall be determinative unless a court determines that
such conclusion was not reached reasonably and in good faith) that there is or
may be a conflict of interest between such Indemnified Person and one or more
other Indemnified Persons in the conduct of the defense of such Claim or that
there are or may be one or more different or additional defenses, claims,
counterclaims, or causes or action available to such Indemnified Person.

 

8. CONTRIBUTION. To the extent any indemnification by the
Company or Buyer is prohibited or limited by law, each of the Company and the
Buyer agrees to make the maximum contribution with respect to any amounts for
which it would otherwise be liable under Section 7 to the fullest extent
permitted by law, based upon a comparative fault standard; PROVIDED, HOWEVER,
that (i) no Person that is guilty of fraudulent misrepresentation (within
the meaning Section 11(f) of the Securities Act) in connection with
such sale shall be entitled to contribution from any Person who was not guilty
of fraudulent misrepresentation; and (ii) contribution by the Buyer of
Registrable Securities shall be limited in amount to the net amount of proceeds
received by the Buyer from the sale of such Registrable Securities pursuant to
such Registration Statement.

 

9. REPORTS UNDER THE 1934 ACT. With a view to making available to the Buyer
the benefits of Rule 144 promulgated under the Securities Act or any other
similar rule or regulation of the SEC that may at any time permit the
Buyer to sell securities of the Company to the public without registration the
Company agrees to:

 

a. make and keep public information available, as
those terms are understood and defined in Rule 144;

 

b. file with the SEC in a timely manner 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 and
the filing of such reports and other documents is required for the applicable
provisions of Rule 144; and

 

c. furnish to the Buyer so long as the Buyer owns
Registrable Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of the
Securities 

 

10

 

Act and the Exchange Act as required for applicable
provisions of Rule 144, (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed
by the Company, and (iii) such other information as may be reasonably
requested to permit the Buyers to sell such securities pursuant to Rule 144
without registration.

 

The Buyer shall at all times comply with the
restrictions on transfer contained in Section 8 of the Warrant, which
provisions are hereby incorporated by reference and made a part hereof.

 

10. ASSIGNMENT OF REGISTRATION
RIGHTS. The rights
under this Agreement shall be automatically assignable by the Buyers to any
transferee of all or any portion of the Registrable Securities if: (i) the
Buyer agrees in writing with the transferee or assignee to assign such rights,
and a copy of such agreement is furnished to the Company within a reasonable
time after such assignment, (ii) the Company is, within a reasonable time
after such transfer or assignment, furnished with written notice of (a) the
name and address of such transferee or assignee, and (b) the securities
with respect to which such registration rights are being transferred or
assigned, and (iii) at or before the time the Company receives the written
notice contemplated by clause (ii) of this sentence, the transferee or
assignee agrees in writing with the Company to be bound by all of the
provisions contained herein. In the event that the Buyer transfers all or any
portion of its Registrable Securities pursuant to this Section, the Company
shall have at least ten (10) business days to file any amendments or
supplements necessary to keep the Registration Statement current and effective
pursuant to Rule 415, and the commencement date of any Event of Failure
(as defined in the Warrants) or Event of Default (as defined in the Warrants)
under the Warrants caused thereby will be extended by ten (10) business
days.

 

11. AMENDMENT OF REGISTRATION
RIGHTS; TERMINATION.
Provisions of this Agreement may be amended and the observance thereof may be
waived (either generally or in a particular instance and either retroactively
or prospectively), only with written consent of the Company and the Buyer (to
the extent such Buyer still owns Registrable Securities). Any amendment or
waiver effected in accordance with this Section 11 shall be binding upon
the Buyer and the Company.

 

12. MISCELLANEOUS.

 

a. A person or entity is deemed to be a holder of
Registrable Securities whenever such person or entity owns of record or
beneficially through a “street name” holder 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 shall act upon the basis of instructions, notice or election received
from the registered owner of such Registrable Securities.

 

b. Any notices required or permitted to be given
under the terms hereof shall be sent by certified or registered mail (return
receipt requested) or delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile and shall be effective
five days after being placed in the mail, if mailed by regular United States
mail, or upon receipt, if delivered personally or by courier (including a
recognized overnight delivery service) or by facsimile, in each case addressed
to a party.  The addresses for such
communications shall be:

 

If to the Company:

 

Array BioPharma Inc.

3200 Walnut Street

Boulder, Colorado 80301

Attention: 
John R. Moore

Vice President, General Counsel

 

11

 

Facsimile: 
(303) 386-1290

 

With a copy to:

 

Hogan & Hartson LLP

1470 Walnut Street, Suite 200

Boulder, Colorado 80302

Attention: 
Carin M. Kutcipal

Facsimile: 
(702) 406-5301

 

If to a Buyer:

 

c/o Deerfield Capital, L.P.

780 Third Avenue, 37th Floor

New York, New York 10017

Fax:  (212)
599-1248

Attn: 
Alexander Karnal

 

With a copy to:

 

Katten Muchin Rosenman LLP

575 Madison Avenue

New York, New York 10022

Fax:  (212)
940-8776

Attn:  Mark I.
Fisher, Esq.

         
Elliot
Press, Esq.

 

Each party shall provide notice to the other party
of any change in address.

 

c. 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, shall not operate as a waiver thereof.

 

d. Governing Law. All questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by and construed and enforced in accordance with the internal laws
of the State of New York, without regard to the principles of conflicts of law
thereof. Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Agreement (whether brought against a party hereto or its respective
affiliates, directors, officers, shareholders, employees or agents) shall be
commenced exclusively in the state and federal courts sitting in the City of
New York. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the City of New York, borough of
Manhattan for the adjudication of any dispute hereunder or in connection
herewith or with any transaction contemplated hereby or discussed herein, and
hereby irrevocably waives, and agrees not to assert in any suit, action or
proceeding, any claim that it is not personally subject to the jurisdiction of
any such court, that such suit, action or proceeding is improper or is an
inconvenient venue for such proceeding. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such
suit, action or proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party
at the address in effect for notices to it under this Agreement and agrees that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any other manner permitted by law. The parties hereby waive
all rights to a trial by jury. If either party shall commence an action or
proceeding to enforce any provision of this Agreement, then the prevailing
party in such action 

 

12

 

or proceeding shall be reimbursed by the other party
for its reasonable attorneys’ fees and other costs and expenses incurred with
the investigation, preparation and prosecution of such action or proceeding.

 

e. This Agreement, the Warrants and the Facility
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 and therein. This Agreement,
the Warrants and the Facility Agreement supersede all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof and thereof.

 

f. Subject to the requirements of Section 10
hereof, this Agreement shall inure to the benefit of and be binding upon the
successors and assigns of each of the parties hereto.

 

g. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

 

h. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. This Agreement, once executed by a
party, may be delivered to the other party hereto by facsimile transmission of
a copy of this Agreement bearing the signature of the party so delivering this
Agreement.

 

i. Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other 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.

 

j. The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Buyer by vitiating
the intent and purpose of the transactions contemplated hereby. Accordingly,
the Company acknowledges that the remedy at law for breach of its obligations
hereunder will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of any of the provisions hereunder, that the Buyer shall
be entitled, in addition to all other available remedies in law or in equity,
to an injunction or injunctions to prevent or cure breaches of the provisions
of this Agreement and to enforce specifically the terms and provisions hereof,
without the necessity of showing economic loss and without any bond or other
security being required.

 

k. The language used in this Agreement will be
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.

 

l. In the event that any provision of this Agreement
is invalid or unenforceable under any applicable statute or rule of law,
then such provision shall be deemed inoperative to the extent that it may
conflict therewith and shall be deemed modified to conform with such statute or
rule of law. Any provision hereof which may prove invalid or unenforceable
under any law shall not affect the validity or enforceability of any other
provision hereof.

 

m. In the event a Buyer shall sell or otherwise
transfer any of such holder’s Registrable Securities, each transferee shall be
allocated a pro rata portion of the number of Registrable Securities included
in a Registration Statement for such transferor.

 

n. There shall be no oral modifications or
amendments to this Agreement. This Agreement may be modified or amended only in
writing.

 

13

 

[Remainder of page left
intentionally blank]

 

[Signature page follows]

 

14

 

IN WITNESS WHEREOF, the undersigned Buyer and the
Company have caused this Agreement to be duly executed as of the 29TH
day of April, 2008.

 

 

	
  COMPANY:

  	
   

  	
  BUYER:

  
	
  ARRAY BIOPHARMA INC.

  	
   

  	
  DEERFIELD PRIVATE DESIGN FUND,

  
	
   

  	
   

  	
   

  	
  L.P.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ R.
  Michael Carruthers

  	
   

  	
  By:

  	
    /s/ James Flynn

  
	
   

  	
  Name: R. Michael Carruthers

  	
   

  	
   

  	
  Name:  James
  Flynn

  
	
   

  	
  Title: Chief Financial Officer

  	
   

  	
   

  	
  Title:  General
  Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DEERFIELD PRIVATE DESIGN

  INTERNATIONAL, L.P.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
    /s/ James Flynn

  
	
   

  	
   

  	
   

  	
   

  	
  Name: James Flynn

  
	
   

  	
   

  	
   

  	
   

  	
  Title: General Partner

  
							

 

15ex_5-1.htm

    
      

      

    

     Exhibit
5.1 

     de
Castro, p.c. 

    

      
        

      

    

     Attorneys
& Counselors 

    

     VIA
FACSIMILE & U.S. MAIL 

    

     May 2,
2008 

    

     Mr.
Timothy J. Koziol 

     General
Environmental Management, Inc. 

     3191
Temple Avenue, Suite 250 

     Pomona,
California 91768 

    

     Re:           Form
S-1A 

    

     Ladies
& Gentlemen: 

    

     We
have acted as counsel for General Environmental Management, Inc., a Nevada
corporation (the "Company"), in connection with the preparation of the Form S-1A
Registration Statement (the "Registration Statement") to be filed by the Company
with the Securities and Exchange Commission under the Securities Act of 1933, as
amended (the "Securities Act"), relating to the resale by certain existing
shareholders of 3,119,174 shares of common stock, .001 par value, issuable upon
the exercise of warrants, and 805,593 shares of common stock, .001 par value,
issuable  upon the conversion of convertible notes, as described in
the Registration Statement. This opinion letter is rendered pursuant to Item 16
of Form S-1 and Item 601(b)(5) of Regulation S-K. 

    

     We
have examined and are familiar with the Articles of Incorporation of the Company
filed with the Secretary of State of the State of Nevada, Bylaws of the Company,
proceedings of the Board of Directors of the Company, and a Certificate of
Officer, and such other records and documents of the Company, certificates of
public officials and such other documents as we have deemed appropriate as a
basis for the opinions set forth in this opinion letter. 

    

     Based
on the foregoing, it is our opinion that the shares of common stock covered by
the Registration Statement, and when issued in accordance with the terms and
conditions of the warrants and convertible notes, as applicable, will be duly
and validly issued, fully paid and non-assessable. 

    

     We
have attorneys admitted in New York and California, but not admitted to practice
in the State of Nevada.  However, we are generally familiar with the
General Corporation Law of the State of Nevada and have made such inquiries with
respect thereto as we consider necessary to render this opinion with respect to
a Nevada corporation. 

    

     This
opinion letter is provided to you for your benefit and for the benefit of the
Securities and Exchange Commission, in each case, solely with regard to the
Registration Statement, may be relied upon by you and the Commission only in
connection with the Registration Statement. We hereby consent to the inclusion
of this opinion as Exhibit 5.1 in the Registration Statement. and with such
state regulatory agencies in such states as may require such filing in
connection with the registration of the stock for offer and sale in those
states, and further consent to statements made in the Registration Statement
regarding our firm and use of our name under the heading "Legal Matters" in the
Prospectus constituting a part of such Registration Statement. In giving this
consent, we do not thereby admit that we come within the category of persons
whose consent is required under Section 7 of the Securities Act of 1933, as
amended, or the rules or regulations of the Commission promulgated
thereunder. 

    

     Yours
truly, 

     

    
      	
               /s/
      Audie J. de Castro 

            	  
      	  
      	  
      	  
      
	
               Audie
      J. de Castro 

               de
      Castro, P. C. 

            	  
      	  
      	  
      	  
      

    

    
 

      309 Laurel Street - San Diego, CA
92101 - Telephone: (619) 702-8690 - Facsimile: (619)
702-9401 

     www.decastropc.com

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]