Document:

EXHIBIT 10.2

WARRANT

THIS WARRANT (THE “WARRANT”)
IS ISSUED PURSUANT TO THE TERMS OF THE PROVISIONS OF A WARRANT PURCHASE
AGREEMENT (THE “AGREEMENT”) BETWEEN BIOJECT MEDICAL TECHNOLOGIES INC. (THE “COMPANY”)
AND THE INITIAL WARRANT HOLDER.  A COPY
OF SUCH AGREEMENT IS ON FILE AT THE OFFICE OF THE  CORPORATE SECRETARY OF THE COMPANY.  THIS SECURITY WAS SOLD IN A PRIVATE
PLACEMENT, WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY BE 
OFFERED OR SOLD ONLY IF REGISTERED UNDER THE SECURITIES ACT OR IF AN
EXEMPTION FROM REGISTRATION IS AVAILABLE.

	
  Company:

  	
   

  	
  Bioject Medical Technologies, Inc., an Oregon
  corporation (BJCT: NASDAQ)

  
	
  Number of Shares:

  	
   

  	
  71,429

  
	
  Class of Shares:

  	
   

  	
  Common, no par value

  
	
  Exchange Price:

  	
   

  	
  $1.40

  
	
  Issue Date:

  	
   

  	
  August 31, 2007

  
	
  Expiration Date:

  	
   

  	
  August 30, 2014

  

 

The
term “Holder” shall initially refer to Partners for Growth, L.P., a Delaware
limited partnership, which is the initial holder of this Warrant and shall
further refer to any subsequent permitted holder of this Warrant from time to
time.

The
Holder is subject to certain restrictions as set forth in the Agreement.

The
Company does hereby certify and agree that, for the agreed sum of $873.00 and
for other good and valuable consideration, the Holder, or its permitted
successors and assigns, hereby is entitled to exchange this Warrant from Bioject
Medical Technologies, Inc. (the “Company”) for Seventy-One Thousand Four
Hundred Twenty-Nine (71,429) duly authorized, validly issued, fully paid and
non-assessable shares of its Common Stock, no par value, upon the terms and
subject to the provisions of this Warrant. The shares of Common Stock issuable
upon exchange of this Warrant are referred to herein as the “Warrant Stock,”
and the Warrant and the Warrant Stock are sometimes together referred to as the
“Securities.”

Section
1.                          Term,
Price and Exchange of Warrant.

1.1                 Term
of Warrant. This Warrant shall be exchangeable for a period of seven (7) years
after the date hereof (hereinafter referred to as the “Expiration Date”).

1.2                 Exchange
Price.  The price per share at which
the Warrant Stock is issuable upon exchange of this Warrant shall be One Dollar
and Forty Cents ($1.40), subject to adjustment from time to time as set forth
herein (the “Exchange Price”).

1.3                 Exchange of
Warrant.

(a)                  This
Warrant may be exchanged or converted, in whole or in part, upon surrender to
the Company at its then principal offices in the United States of this Warrant
to be exchanged, together with the form of election to exchange attached hereto
as Exhibit A duly completed and executed, and upon payment to the Company of
the Exchange Price for the number of shares of Warrant Stock in respect of
which this Warrant is then being exchanged.

(b)                 Payment
of the aggregate Exchange Price may be made (i) in cash or by cashier’s or bank
check or (ii) by converting this Warrant through a Cashless Exchange (as
defined herein).  Upon a

“Cashless Exchange” the Holder shall receive Warrant Stock on a net basis such that, without the payment of any funds, the Holder shall surrender this Warrant in exchange for the number of shares of Warrant Stock equal to “X” (as defined below), computed using the following formula:

	
  

  	
   

  	
  Y * (A-B)

  
	
  X

  	
  =

  	
   

  	
   

  
	
   

  	
   

  	
  A

  

 

Where

	
  X

  	
  =

  	
   

  	
  the number of shares of Warrant Stock to be issued
  to Holder.

  
	
  Y

  	
  =

  	
   

  	
  the number of shares of Warrant Stock to be
  exchanged under this Warrant

  
	
  A

  	
  =

  	
   

  	
  the Fair Market Value of one share of Common Stock.

  
	
  B

  	
  =

  	
   

  	
  the Exchange Price (as adjusted to the date of such
  calculations).

  

 

(c)                  For
purposes of this Warrant, the “Fair Market Value” of one share of Warrant Stock
shall be (i) if the Company’s common stock (the “Common Stock”) is or becomes
listed on a national stock exchange or the Nasdaq SmallCap Market, the product
of (A) the highest closing sale price reported on such exchange or market for
the 90-day period prior to the earlier of the day Holder delivers its Election
of Exchange to the Company or the date of determination of Fair Market Value
and (B) the number of shares of Common Stock into which a share of Warrant Stock
is convertible at the time of such exchange, or (ii) if the Common Stock is
traded over-the-counter, the product of (A) the highest closing bid price for
the Common Stock over the 90-day period immediately prior to the earlier of the
day Holder delivers its Election of Exchange to the Company or the date of
determination of Fair Market Value and (B) the number of shares of Common Stock
into which one share of Warrant Stock is convertible at the time of such exchange.  If the Common Stock is not traded as
contemplated in clauses (i) or (ii), above, the Fair Market Value of the
Company’s Warrant Stock shall be the price per share which the Company could
obtain from a willing buyer for shares of Warrant Stock sold by the Company
from its authorized but unissued shares, as the Board of Directors of the
Company shall determine in its reasonable good faith judgment.  In the event that Holder elects to convert
the Warrant Stock through Cashless Exchange in connection with a transaction in
which the Warrant Stock is converted into or exchanged for another security,
Holder may effect a Cashless Exchange directly into such other security.  Notwithstanding the right of the Holder to
effect a Cashless Exchange, the Company may require Holder to exchange this
Warrant for cash if the Warrant Stock is registered under the Securities Act of
1933, may be traded by Holder without restriction under SEC rules and
regulations and applicable law and such freely-tradable Common Stock issuable
upon exchange of this Warrant is delivered within three (3) Business Days of
Holder’s exchange.

(d)                 Subject
to Section 2 hereof, upon surrender of this Warrant, and the duly completed and
executed form of election to exchange, and payment of the Exchange Price or
conversion of this Warrant through Cashless Exchange, the Company shall issue and
deliver within three (3) business days to the Holder or such other person as
the Holder may designate in writing a certificate or certificates for the number
of shares of Warrant Stock so purchased upon the exchange or conversion of this
Warrant. Such certificate or certificates shall be deemed to have been issued
and any person so designated to be named therein shall be deemed to have become
a holder of record of such Warrant Stock as of the date of the surrender of
this Warrant, and the duly completed and executed form of election to exchange,
and payment of the Exchange Price or conversion of this Warrant through
Cashless Exchange; provided, that if the date of surrender of this Warrant and
payment of the Exchange Price is not a business day, the certificates for the Warrant
Stock shall be issued as of the next business day (whether before or after the
Expiration Date), and, until such date, the Company shall be under no duty to
cause to be delivered any certificate for such Warrant Stock or for shares of
such other class of capital stock.  If
this Warrant is exchanged or converted in part, a new warrant of the same tenor
and for the number of shares of Warrant Stock not exchanged or converted shall
be executed by the Company.

 2
 

1.4                 Fractional
Interests. The Company shall not be required to issue fractions of shares
of Warrant Stock upon the exchange of this Warrant.  If any fraction of a share of Common Stock would
be issuable upon the exchange of this Warrant (or any portion thereof), the
Company shall purchase such fraction for an amount in cash equal to the same
fraction of the last  reported sale price
of the Common Stock on the NASDAQ National Market System or any other national
securities exchange or market on which the Common Stock is then listed or
traded.

1.5                 Automatic
Exchange upon Expiration.  In the
event that, upon the Expiration Date, the fair market value of one share of
Common Stock (or other security issuable upon the exchange hereof) as
determined in accordance with Section 1.3 above is greater than the Exchange
Price in effect on such date, then this Warrant shall automatically be deemed
on and as of such date to be converted pursuant to Section 1.2 above as to all Warrant
Stock (or such other securities) for which it shall not previously have been exchanged
or converted, and the Company shall promptly deliver a certificate representing
the Warrant Stock (or such other securities) issued upon such conversion to the
Holder.

Section
2.                          Exchange
and Transfer of Warrant.

(a)                  This
Warrant may be transferred, in whole or in part, without restriction, subject
to (i) the Holder’s delivery of an opinion of counsel in customary form that
such transfer is in compliance with applicable securities laws and (ii) the
transferee holder of the new Warrant assumes in writing the obligations of the
Holder set forth in the Agreement.  A
transfer may be registered with the Company by submission to it of this
Warrant, together with the annexed Assignment Form attached hereto as Exhibit B
duly completed and executed. After the Company’s receipt of this Warrant and
the Assignment Form so completed and executed, the Company will issue and
deliver to the transferee a new warrant (representing the portion of this
Warrant so transferred) at the same Exchange Price per share and otherwise
having the same terms and provisions as this Warrant, which the Company will
register in the new holder’s name.  In
the event of a partial transfer of this Warrant, the Company shall concurrently
issue and deliver to the transferring holder a new warrant that entitles the
transferring holder to purchase the balance of this Warrant not so transferred
and that otherwise is upon the same terms and conditions as this Warrant.  Upon the due delivery of this Warrant for
transfer, the transferee holder shall be deemed for all purposes to have become
the holder of the new warrant issued for the portion of this Warrant so
transferred, effective immediately prior to the close of business on the date
of such delivery, irrespective of the date of actual delivery of the new
warrant representing the portion of this Warrant so transferred.

(b)                 In
the event of the loss, theft or destruction of this Warrant, the Company shall
execute and deliver an identical new warrant to the Holder in substitution
therefor upon the Company’s receipt of (i) evidence reasonably satisfactory to
the Company of such event and (ii) if requested by the Company, an indemnity
agreement reasonably satisfactory in form and substance to the Company.  In the event of the mutilation of or other
damage to the Warrant, the Company shall execute and deliver an identical new
warrant to the Holder in substitution therefor upon the Company’s receipt of
the mutilated or damaged warrant.

(c)                  The
Company shall pay all costs and expenses incurred in connection with the
exercise, exchange, transfer or replacement of this Warrant, including, without
limitation, the costs of preparation, execution and delivery of a new warrant
and of share certificates representing all Warrant Stock; provided, that the
Holder shall pay all stamp and other transfer taxes payable in connection with
the transfer or replacement of this Warrant.

Section 3.                          Certain
Covenants.

(a)                  The
Company shall at all times reserve for issuance and keep available out of its
authorized and unissued Common Stock, solely for the purpose of providing for
the exchange of this Warrant, such number of shares of Common Stock as shall
from time to time be sufficient therefor.

(b)                 The
Company will not, by amendment of its Articles of Incorporation or Bylaws or
through reorganization, consolidation, merger, amalgamation, sale of assets or otherwise,
avoid or seek to avoid the

 3
 

observance
or performance of any of the terms of this Warrant.  Without limiting the foregoing, the Company
(i) will not increase the par value of any shares receivable upon the exchange
of this Warrant above the amount payable therefor upon such exchange and (ii)
will take all such action as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares upon
the exchange of this Warrant.

Section 4.                          Adjustments
to Exchange Price and Number of Shares of Warrant Stock.

4.1                 Adjustments.
In order to prevent dilution of the rights granted hereunder, the Exchange
Price shall be subject to adjustment from time to time in accordance with this
Section 4. Upon each adjustment of the Exchange Price pursuant to this Section
4, the Holder shall thereafter be entitled to acquire upon exchange, at the Exchange
Price resulting from such adjustment, the number of shares of Common Stock of
the Company obtainable by multiplying the Exchange Price in effect immediately
prior to such adjustment by the number of shares of Common Stock acquirable
immediately prior to such adjustment and dividing the product thereof by the new
Exchange Price resulting from such adjustment.

4.2                 Subdivisions,
Combinations and Share Dividends. If the Company shall at any time
subdivide by split-up or otherwise, its outstanding Common Stock into a greater
number of shares, or issue additional Common Stock as a dividend, bonus issue or
otherwise with respect to any Common Stock, the Exchange Price in effect
immediately prior to such subdivision or share dividend or bonus issue shall be
proportionately reduced. Conversely, in case the outstanding Common Stock of
the Company shall be combined into a smaller number of shares, the Exchange
Price in effect immediately prior to such combination shall be proportionately
increased.

4.3.              Reorganization,
Reclassification, Consolidation, Merger or Sale of Assets. If any capital
reorganization or reclassification of the Common Stock, or consolidation,
amalgamation or merger of the Company with another corporation, or the sale of
all or substantially all of its assets to another corporation shall be effected
in such a way that holders of Common Stock shall be entitled to receive shares,
securities, cash or other property with respect to or in exchange for Common
Stock, then, as a condition of such reorganization, reclassification,
consolidation, amalgamation, merger or sale, lawful and adequate provision
shall be made whereby the Holder shall have the right to acquire and receive
upon exchange of this Warrant (or at the option of the Holder, shall have the
right to receive a new and equivalent Warrant for) such shares, securities,
cash or other property issuable or payable (as part of the reorganization,
reclassification, consolidation, amalgamation, merger or sale) with respect to
or in exchange for such number of outstanding shares of Common Stock as would
have been received upon exchange of this Warrant at the Exchange Price then in
effect. The Company will not effect any such consolidation, amalgamation, merger
or sale unless, prior to the consummation thereof, the successor corporation
(if other than the Company) resulting from such consolidation or merger or the
corporation purchasing such assets shall assume by written instrument the
obligation to deliver such shares, securities or assets that the Holder may be
entitled to purchase in accordance with the foregoing provisions.  If a purchase, tender or exchange offer is
made to and accepted by the holders of more than 50% of the outstanding Common
Stock of the Company, the Company shall not effect any consolidation, amalgamation,
merger or sale with the person having made such offer or with any Affiliate of
such person, unless prior to the consummation of such consolidation, merger or
sale the Holder shall have been given a reasonable opportunity to then elect to
receive upon the exchange of this Warrant either the shares, securities or assets
then issuable with respect to the Common Stock of the Company or the shares,
securities or assets, or the equivalent, issued to previous holders of the Common
Stock in accordance with such offer. For purposes hereof the term “Affiliate”
with respect to any given person shall mean any person controlling, controlled
by or under common control with the given person.

4.4.              Notices
of Record Date, Etc.  In the event
that:

(1)                          declare or propose to declare any dividend upon its capital stock, whether payable in cash, property, stock or other securities and whether or not a regular cash dividend, or

 4
 

(2)                          offer for sale any additional shares of any class or series of the Company’s capital stock or securities exchangeable for or convertible into such capital stock to the holders of such class or series, generally, or
(3)                          effect or approve any reclassification, exchange, substitution or recapitalization of the capital stock of the Company, including any subdivision or combination of its outstanding capital stock, or consolidation or merger of the Company with, or sale of all or substantially all of its assets to, another corporation,  or to liquidate, dissolve or wind up (including an assignment for the benefit of creditors), or
(4)                          offer holders of registration rights the opportunity to participate in any public offering of the Company’s securities,
then, in connection with such event, the Company shall give to Holder:
(i) at least ten (10) days prior written notice of the date on which the books of the Company shall close or a record shall be taken for such a dividend or offer in respect of the matters referred to in (1) or (2) above, or for determining rights to vote in respect of the matters referred to in (3) above; and
(ii) in the case of the matters referred to in (3) above, at least ten (10) days prior written notice of the date when the same shall take place. Such notice in accordance with the foregoing clause (i) shall also specify, in the case of any such dividend, the date on which the holders of capital stock shall be entitled thereto and the terms of such dividend, and such notice in accordance with this clause (ii) shall also specify the date on which the holders of capital stock shall be entitled to exchange their capital stock for securities or other property deliverable upon such reorganization, reclassification, exchange, substitution, consolidation, merger or sale, as the case may be, and the terms of such exchange. Each such written notice shall be given by first class mail, postage prepaid, addressed to the holder of this Warrant at the address of Holder; and
(iii)  in the case of the matter referred to in (4) above, the same notice as is given or required to be given to the holders of such registration rights.

4.5.              Adjustment
by Board of Directors. If any event occurs as to which, in the opinion of
the Board of Directors of the Company, the provisions of this Section 4 are not
strictly applicable or if strictly applicable would not fairly protect the
rights of the Holder in accordance with the essential intent and principles of
such provisions, then the Board of Directors shall make an adjustment in the
application of such provisions, in accordance with such essential intent and
principles, so as to protect such rights, but in no event shall any adjustment
have the effect of increasing the Exchange Price as otherwise determined
pursuant to any of the provisions of this Section 4, except in the case of a
combination of shares of a type contemplated in Section 4.2 and then in no
event to an amount larger than the Exchange Price as adjusted pursuant to Section
4.2.

4.6.              Officers’
Statement as to Adjustments. Whenever the Exchange Price and/or number of shares
of Warrant Stock subject to the Warrant is required to be adjusted as provided
in Section 4, the Company shall forthwith file at each office designated for
the exchange of this Warrant a statement, signed by the Chief Executive
Officer, Chief Financial Officer or any Managing Director of the Company,
showing in reasonable detail the facts requiring such adjustment, the Exchange
Price and number of issuable shares that will be effective after such
adjustment; provided, however, such statement shall not be required to the
extent the information requested in this Section 4.6 is available through the
Company’s reports filed with the Securities and Exchange Commission. If the
information described in this Section 4.6 is readily available through the
Company’s reports filed with the Securities and Exchange Commission, the
Company shall not be required to provide a separate notice of adjustment to the
Holder; provided, however, if such information is not readily available through
the Company’s reports filed with the Securities Exchange Commission and made
public, the Company shall cause a notice setting forth any such adjustments to
be sent by mail, first class, postage prepaid, to the record Holder of this
Warrant at its address appearing herein.  If such notice relates to an adjustment
resulting from an event referred to in Section 4.3, such

 5
 

notice
shall be included as part of the notice required to be mailed or published
under the provisions of Section 4.3.

4.7                 Issue
of Securities other than Common Stock. 
In the event that at any time, as a result of any adjustment made
pursuant to Section 4, the Holder thereafter shall become entitled to receive
any shares of the Company, other than Common Stock, thereafter the number of
such other shares so receivable upon exchange of this Warrant 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 Section
4.

Section
5.                          Rights
and Obligations of the Warrant Holder.

This
Warrant shall not entitle the Holder to any rights of a holder of Common Stock in
the Company.  The Holder shall have the
specific “piggyback” registration rights set forth in Exhibit C attached hereto
and made a part hereof.  Capitalized
terms not otherwise defined in Exhibit C shall have the meanings set forth
herein.

Section 6.                          Restrictive
Stock Legend.

This
Warrant and the Warrant Stock have not been registered under any securities
laws.  Accordingly, any share
certificates issued pursuant to the exchange of this Warrant shall (until
receipt of an opinion of counsel in customary form that such legend is no
longer necessary) bear the following legend:

THIS WARRANT AND THE
WARRANT STOCK ISSUABLE UPON EXCHANGE HEREOF HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE “ACT”), AND HAVE BEEN ACQUIRED FOR INVESTMENT AND
NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OF DISTRIBUTION THEREOF. NO
SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN CUSTOMARY FORM THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE ACT.

Section 7.                          Notices.

Any
notice or other communication required or permitted to be given here shall be
in writing and shall be effective (a) upon hand delivery or delivery by e-mail
or facsimile at the address or number designated below (if delivered on a
business day during normal business hours where such notice is to be received)
or the first business day following such delivery (if delivered other than on a
business day during normal business hours where such notice is to be received),
or (b) on the third business day following the date of mailing by express
courier service, fully prepaid, addressed to such address, or upon actual
receipt of such mailing, whichever shall first occur. The addresses for such
communication shall be:

if to Holder, at

Partners for Growth, L.P.

180 Pacific Avenue

San Francisco, California
94111

Attention:  Lorraine Nield

Fax:  (415) 781-0510

lorraine@pfgrowth.com

with a copy to

Benjamin Greenspan, Esq.

620 Laguna Road

Mill Valley, CA 94941

Fax: (415) 358-4780

 6
 

Email: bg2@greenspan.org

or
if to the Company, at

Bioject Medical
Technologies Inc.

Attn:  Chris Farrell

20245 S.W. 95th Ave.

Tualatin, OR   97062

Phone: 503. 692.8001

Fax: 503.692.6698

Email: cfarrell@bioject.com

with a copy to:

Stoel Rives, LLP

Attn:  Todd A. Bauman

900 SW 5th Avenue

Suite 2600

Portland, OR 97204

(503) 294-9812 Direct

(503) 220-2480 Fax

tabauman@stoel.com

Each party hereto
may from time to time change its address for notices under this Section 7 by
giving at least 10 calendar days’ notice of such changes address to the other
party hereto.

Section 8.                          Amendments
and Waivers.

This
Warrant and any term hereof may be changed, waived, discharged or terminated
only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought.

 7

Section 9.                          Applicable
Law; Severability.

This
Warrant shall be governed by and construed and enforced in accordance with the
laws of the State of Oregon.  If any one
or more of the provisions contained in this Warrant, or any application of any
provision thereof, shall be invalid, illegal, or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein and all other applications of any provision thereof shall not in any way
be affected or impaired thereby.

Section 10.                   Construction.

The
terms of the Warrant Purchase Agreement to which this Warrant is attached as
Exhibit 1 are incorporated by reference herein. Terms used but not defined herein
have the meaning set forth in the Warrant Purchase Agreement.

IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed on the
day and year first above written.

COMPANY:

Bioject Medical
Technologies Inc.

	
  By:

  	
  /s/ Jerald S. Cobbs

  	
   

  
	
   

  
	
  Name: Jerald S. Cobbs

  
	
   

  
	
  Title: Chairman and Interim President and Chief
  Executive Officer

  

 

ACKNOWLEDGED AND AGREED:

HOLDER:

Partners for Growth, L.P.

	
  By:

  	
  /s/ Andrew Kahn

  	
   

  
	
   

  	
  Andrew Kahn

  
	
   

  	
  Manager of

  
	
   

  	
  Partners for Growth,
  LLC,

  
	
   

  	
  Its General Partner

  

 

Signature Page Bioject – PFG
Warrant

Exhibit A

To:                              Bioject Medical Technologies Inc.

ELECTION TO EXCHANGE

1.                                       The undersigned hereby exchanges its right to subscribe for and purchase                            fully paid, validly issued and nonassessable Shares covered by the attached Warrant and tenders payment herewith in the amount of $                       in accordance with the terms thereof.

1.                                       The
undersigned hereby elects to convert the attached Warrant into fully paid,
validly issued and nonassessable Shares by Cashless Exchange in the manner
specified in Section 1.3 of the attached Warrant. This conversion is exchanged
with respect to                       
of shares.

[Strike the paragraph above that does not apply.]

, and requests that certificates for such shares be issued in the name of, and delivered to:

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
      [Holder]

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
											

 

Exhibit B

ASSIGNMENT FORM

To:                              Bioject
Medical Technologies Inc.

The undersigned
hereby assigns and transfers this Warrant to

	
  

  	
   

  
	
  (Insert assignee’s social security or tax
  identification number)

  
	
   

  
	
   

  	
   

  
	
  (Print or type assignee’s name, address and postal
  code)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
			

 

and irrevocably
appoints                                                                               
to transfer this Warrant on the books of the Company.

	
  Date:

  	
   

  	
  Partners For Growth, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
  , Manager of

  
	
   

  	
  Partners for Growth, LLC, Its General Partner

  
										

 

EXHIBIT C

PIGGYBACK REGISTRATION
RIGHTS

1.          PIGGYBACK REGISTRATION
RIGHTS.

1.1                 Piggyback
Rights. If (but without any obligation to do so) the Company proposes to
register any of its equity securities under the United States Securities Act of
1933 (the “Act”) in connection with the public offering of such shares (other
than (i) a registration relating solely to the sale of securities to
participants in a Company equity option or stock incentive or share rights or share
purchase plan, (ii) a registration relating to a corporate reorganization or
other transaction under Rule 145 of the Act, or (iii) a registration relating
to the offer and sale of debt securities, (iv) a registration on any
registration form that does not permit secondary sales, or (v) a registration on
any form that does not include substantially the same information as would be required
to be included in a registration statement covering the sale of the Warrant
Stock), the Company shall, at such time, promptly give the Holder written
notice of such registration. Upon the written request of the Holder given
within ten (10) business days after mailing of such notice by the Company, the Company
shall, subject to the provisions of Section 1.4 of this Exhibit C, use all commercially
reasonable efforts to cause a registration statement to become effective, which
includes all of the Warrant Stock that the Holder requests to be registered by
such notice and for which the Holder (or its individual members) is then the
shareholder of record (or would be the shareholder of record upon the exchange
of its Warrant).

1.2                 Right
to Terminate Registration. The Company shall have the right to terminate or
withdraw any registration initiated by it under this Section 1 prior to the
effectiveness of such registration whether or not the Holder has elected to
include securities in such registration.

1.3                 Expenses
of Registration. All expenses other than underwriting discounts and
commissions incurred in connection with registrations, filings or
qualifications pursuant to this Section, including without limitation all
registration, filing and qualification fees (including Blue Sky fees), printers’
and accounting fees, and fees and disbursements of counsel for the Company and
the reasonable fees and disbursements for one counsel for the Holder shall be
borne by the Company (which shall not exceed $2,000). Any fees or disbursements
of counsel for the Holder (other than the single counsel referenced above) shall
be borne by the Holder.

1.4                 Underwriting
Requirements. In connection with any offering involving an underwriting of Common
Stock of the Company, the Company shall not be required under this Section to
include any of the Warrant Stock in such underwriting unless the Holder accepts
the terms of the underwriting as agreed upon between the Company and the
underwriters selected by it (or by other persons entitled to select the
underwriters) and enters into an underwriting agreement in customary form with
an underwriter or underwriters selected by the Company. If the total amount of
securities, including Warrant Stock, requested by shareholders or other
securities holders to be included in such offering exceeds the amount of
securities sold other than by the Company that the underwriters determine in their
sole discretion is compatible with the success of the offering, then the Company
shall be required to include in the offering only that number of such securities,
including Warrant Stock, that the underwriters determine in their sole discretion
will not  jeopardize the success of the
offering (the securities so included to be apportioned pro rata among the
selling shareholders, including Holder, according to the total amount of
securities entitled to be included therein owned by each selling shareholder or
in such other proportions as may be mutually agreed to by such selling shareholders).

1.5                 Information
from the Holder. It shall be a condition precedent to the obligations of
the Company to take any action pursuant to this Section 1 with respect to the Warrant
Stock that the Holder shall furnish to the Company such information regarding
itself and its individual members, the Warrant Stock held by Holder or its
members, and the intended method of disposition of such securities as shall be
reasonably required to effect the registration of the Warrant Stock.

1.6                 No
Delay of Registration. The Holder shall not have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 1.

2.          INDEMNIFICATION

In
the event any shares of Warrant Stock are included in a registration statement under
Section 1 of this Exhibit C:

2.1                 The
Company Indemnity. To the extent permitted by law, the Company will
indemnify, defend and hold harmless the Holder, its partners or officers,
directors, shareholders, legal counsel and accountants for the Holder, any
underwriter (as defined in the Act) for the Holder and each person, if any, who
controls the Holder or underwriter, within the meaning of the Securities Act or
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (each an “Indemnified
Person”), against any losses, claims, damages or liabilities (joint or several)
to which they may become subject under the Securities Act, the Exchange Act or
any state securities laws, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
of the following statements, omissions or violations (collectively a “Violation”):
(i) any untrue statement or alleged untrue statement of a material fact
contained in such registration statement, including any preliminary prospectus
or final prospectus contained therein or any amendments or supplements thereto,
(ii) the omission or alleged omission to state therein a material fact required
to be stated therein, or necessary to make the statements therein not
misleading, or (iii) any violation or alleged violation by the Company of the
Securities Act, the Exchange Act, any state securities laws or any rule or
regulation promulgated under the Securities Act, the Exchange Act or any state
securities laws in connection with such registration; and the Company will
reimburse each  Indemnified Person for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action as
such expenses are incurred; provided however that the indemnity agreement
contained in this Section 2.1 shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Company (which consent shall not be
unreasonably withheld), nor shall the Company be liable in any such case for
any such loss, claim, damage, liability or action to the extent that it arises
out of or is based upon a Violation that occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by any Indemnified Person; provided further, however,
that the  foregoing indemnity agreement
with respect to any preliminary prospectus shall not inure to the benefit of
any Indemnified Person from whom the person asserting any such losses, claims, damages
or liabilities purchased Warrant Stock in the offering, if a copy of the
prospectus (as then amended or supplemented if the Company shall have furnished
any amendments or supplements thereto) was not sent or given by or on behalf of
such Indemnified Person to such person, if required by law so to have been
delivered, at or prior to the written confirmation of the sale of the shares to
such person, and if the prospectus (as so amended or supplemented) would have
cured the defect giving rise to such loss, claim, damage or liability.

2.2                 Holder
Indemnity. To the extent permitted by law, the Holder will defend and hold
harmless the Company, each of its directors, each of its officers, each of its
partners, each person, if any, who controls the Company within the meaning of
the Securities Act, legal counsel and accountants for the Company, any
underwriter, any other shareholder selling securities in such registration statement
and any controlling person of any such  underwriter
or other shareholder, against any losses, claims, damages or liabilities (joint
or several) to which any of the foregoing persons may become subject, under the
Securities Act, the Exchange Act or any state securities laws, insofar as such losses,
claims, damages or liabilities (or actions in respect thereto) arise out of or
are based upon any Violation (but excluding clause (iii) of the definition thereof),
in each case to the extent (and only to the extent) that such Violation occurs
in reliance upon and in conformity with written information furnished by the Holder
expressly for use in connection with such registration; and the Holder will
reimburse any person intended to be indemnified pursuant to this Section 2.2
for any legal or other expenses reasonably incurred by such person in
connection with investigating or defending any such loss, claim, damage,
liability or action; provided however that the indemnity agreement contained in
this Section 2.2 shall not apply to amounts paid in settlement of any such

loss,
claim, damage, liability or action if such settlement is effected without the
consent of the Holder (which consent shall not be unreasonably withheld).

2.3                 Prompt
Notice Required. Promptly after receipt by an indemnified party under this
Section 2 of actual knowledge of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect
thereof is to be made against any indemnifying party under this Section 2,
deliver to the indemnifying party a written notice of the commencement thereof
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires,  jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided however that an indemnified party
(together with all other indemnified parties that may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by
such counsel in such proceeding.  The
failure to deliver written notice to the indemnifying party within a reasonable
time of the commencement of any such action, if prejudicial to its ability to
defend such action, shall relieve such indemnifying party of any liability to
the indemnified party under this Section 2 to the extent of such prejudice, but
the omission to so deliver written notice to the indemnifying party will not relieve
it of any liability that it may have to any indemnified party otherwise than
under this Section 2.3.

2.4                 Alternative
Relief. If the indemnification provided for in this Section 2 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any loss, liability, claim, damage or expense referred to herein,
then the indemnifying party, in lieu of indemnifying such indemnified party
hereunder, shall contribute to the amount paid or payable by such indemnified
party as a result of such loss, liability, claim, damage or expense in such
proportion as is appropriate to reflect the relative fault of and the relative
benefits received by the indemnifying party on the one hand and of the
indemnified party on the other in connection with the statements or omissions
that resulted in such loss, liability, claim, damage or expense, as well as any
other relevant equitable considerations, provided that no person guilty of
fraud shall be entitled to contribution. The relative fault of the indemnifying
party and of the indemnified party shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative
intent, knowledge, access to information, and opportunity to correct or prevent
such statement or omission.  The relative
benefits received by the indemnifying party and the indemnified party shall be
determined by reference to the net proceeds and underwriting discounts and
commissions from the offering received by each such party.

2.5                 Underwriting
Agreement. Notwithstanding the foregoing, to the extent that the provisions
on indemnification and contribution contained in the underwriting agreement
entered into in connection with the underwritten public offering are in
conflict with the foregoing provisions of this Section 2, the provisions in the
underwriting agreement shall control.

2.6                 Survival.
The obligations of the Company and the Holder under this Section 2 shall
survive the completion of any offering of the Warrant Stock in a registration
statement under Section 1 of this Exhibit C.

3.          ASSIGNMENT

The
rights to cause the Company to register Warrant Stock pursuant to Section 1 of
this  Exhibit C may be assigned (but only
with all related obligations) by Holder to 
a transferee or assignee of such securities provided; (a) the Company
is, within a reasonable time after such transfer, furnished with written notice
of  the name and address of such
transferee or assignee and the securities with 
respect to which such registration rights are being assigned and (b)
such  transferee or assignee agrees in
writing to be bound by and subject to the 
terms and conditions of the Agreement.

4.          TERMINATION OF
REGISTRATION RIGHTS

The
Holder shall not be entitled to exercise any right provided for in Section 1 of
this Exhibit C after such time at which all Warrant Stock of the relevant holder
can be sold in any three (3) month period without registration in compliance
with Rule 144 of the Act.Exhibit 10.1

THIRD
AMENDMENT TO AGREEMENT BETWEEN

EXACT SCIENCES CORPORATION

AND

LABORATORY CORPORATION OF AMERICA HOLDINGS

This Third Amendment (this “Amendment”) is made and effective as of
August 31, 2007, by and between LABORATORY CORPORATION OF AMERICA HOLDINGS (“LabCorp”)
and EXACT SCIENCES CORPORATION (“EXACT”).

WHEREAS, LabCorp and EXACT entered into an Agreement dated June 26,
2002, which was amended pursuant to a First Amendment dated January 19, 2004
and further amended pursuant to a Second Amendment dated June 27, 2007 (as
amended, the “Agreement”); and

WHEREAS, the parties desire to amend certain provisions of the
Agreement.

NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the parties agree to the following amendments to the
Agreement, to be effective as of the date of execution of this Amendment:

1.             Milestones.

a.             A new Milestone 4
(and the associated Milestone License Fee) is hereby added to Schedule 4 of the
Agreement as follows:

LabCorp shall pay
EXACT $2.5 million in milestone payments following the date of the occurrence
of the later of the following (such later date being hereinafter referred to as
the “Milestone 4 Trigger Date”):  (i)
approval of reimbursement for stool-based DNA screening including, without
limitation, coverage for both PV1 and PV2, from the Centers for Medicare and
Medicaid Services pursuant to a National Coverage Determination at a
reimbursement rate of at least [********];
and (ii) acceptance of stool-based DNA screening in the publicly reported
guidelines of the American Cancer Society or the American Gastroenterological
Association for screening for colorectal cancer.  The foregoing payment shall not be due until
sixty (60) days following the end of the [********]
period following the Milestone 4 Trigger Date in which the number of
Assays performed by LabCorp using EXACT’s Technology increases by at least [********] over the number of such Assays
performed by LabCorp during the [********]
immediately prior to the Milestone 4 Trigger Date.

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Exchange Act; [*] denotes omissions.

 

2.                                       Launch
of PV2 Test.  Section 3.6 of the
Agreement shall be deleted and replaced with the following:

On or before [********],  EXACT shall provide LabCorp with access to the data
associated with [********], and
(iii) the overall sensitivity and specificity as a standalone dataset (the “PV2
Sample Data”), to attest the clinical sensitivity and specificity of PV2 claims
stated in the following article:  Steven
H. Itzkowitz et al., Improved Fecal DNA Test
for Colorectal Cancer Screening, 5 CLINICAL
GASTROENTEROLOGY AND HEPATOLOGY 111 (2007). All such data provided to
LabCorp pursuant to this provision shall be considered Confidential Information
of EXACT.  EXACT agrees that it will not
unreasonably withhold approval for the PV2 Sample Data to be used by LabCorp to
promote or describe PV2 in support of a PV2 commercial launch.  Notwithstanding the foregoing, PV2 Sample
Data that fails to meet the sensitivity/specificity targets described in
Section 11.9 of this Agreement shall be treated as Confidential Information of
EXACT.

3.             Expenses.  Section 7.3 of the Agreement shall be deleted
in its entirety and replaced with the following:

LabCorp will be
solely responsible, at its expense, for all of LabCorp’s commercial activities
including marketing, sales, and reimbursement, related to LabCorp’s stool-based
DNA testing service.

For the purpose of
clarification, Sections 6.6 and 6.7 of the Agreement remain in full force and
effect.

4.             Rights of Termination.

a.             Section 11.7 of the
Agreement shall be deleted in its entirety and replaced with the following:

11.7                           This
Agreement may be terminated by LabCorp upon written notice in the event
stool-based colorectal cancer screening has not been accepted as a Standard of
Care on or before [********].

b.             Section 11.8 of the
Agreement shall be deleted in its entirety and replaced with the following:

11.8                           This
Agreement may be terminated by LabCorp upon written notice in the event PV2 is
not commercially launched (meaning made generally available to LabCorp’s

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Exchange Act; [*] denotes omissions.

 2
 

 

customers) on or before [********], provided the reason for delay
in commercial launch can be attributed in whole or in part to EXACT.  Without limiting the foregoing, the parties
acknowledge that either of the following shall give rise to LabCorp’s right to
terminate the Agreement pursuant to this Section 11.8:  (i) any failure of EXACT to provide all of
the PV2 Sample Data described in Section 3.6 on or before [********], or (ii) any failure of
EXACT to fulfill its obligations with respect to [********] on or before any of the deadlines to be mutually
agreed upon by the parties in writing.

5.             Personnel.

a.             A new Section 7.6 is hereby added to the Agreement as
follows:

7.6           Personnel.

7.6.1        LabCorp agrees to offer at-will
employment, subject to LabCorp’s standard employment eligibility requirements,
to the personnel of EXACT as set forth on Schedule 7, at annual salaries no
less than those listed therein and inclusive of LabCorp’s standard employee
benefits; provided, however, that these personnel will be subject to all of
LabCorp’s usual and customary terms, conditions and policies of employment.
LabCorp agrees that
for a period beginning on August 31, 2007 and continuing for one year from the
date of termination of this Agreement none of the employees or agents of
LabCorp (or any of its subsidiaries or any person acting on its or their
behalf) who have had interaction with EXACT in connection with this Agreement
will directly or indirectly solicit for employment or employ at LabCorp or its
subsidiaries any person, other than the personnel set forth on Schedule 7, who
as of August 31, 2007 is employed by EXACT without obtaining EXACT’s prior
written consent.  The parties
agree that the restrictions set forth in this Paragraph shall not apply to (i)
any solicitation directed to the public in general print, mail, radio,
television, internet or website advertisements or solicitations available to
the public in general (or any employment resulting from an EXACT employee’s
response to such solicitation to the public in general), (ii) any person whose
employment with EXACT was terminated by EXACT prior to the solicitation by
LabCorp, or (iii) or any contact or employment which LabCorp can demonstrate
through written records was initiated by such employee.  In addition to the foregoing, this
restriction (and the foregoing exceptions) on solicitation, hiring and
retention, shall expressly apply to [********] as
of the effective date of the Third Amendment to this Agreement, except that (1)
LabCorp may engage [********] as
contemplated by Section 6.6 of this Agreement [********],

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Exchange Act; [*] denotes omissions.

 

 3
 

and (2) in the event [********] seeks to be hired by LabCorp and LabCorp wishes
to hire [********] under any of the exceptions
in clauses (i) through (iii) of the prior sentence, LabCorp agrees to notify
EXACT prior to hiring [********].  Any permission granted by EXACT for LabCorp
to hire any such employees or consultant, shall be expressly limited in scope
to the permission granted and shall not be deemed a waiver by EXACT of this
provision.

7.6.2        Effective with the employment by LabCorp
of the personnel of EXACT as set forth on Schedule 7, EXACT will release all
EXACT personnel set forth on Schedule 7 from all non-competition and
non-solicitation agreements. For the avoidance of doubt, any former EXACT
employees who accept employment with LabCorp owe their complete duty of loyalty
to LabCorp and not to EXACT.

b.                                      Schedule
7 attached to this Amendment is hereby deemed added to the Agreement.

6.             Except as expressly modified
herein, the Agreement and all of its terms and conditions shall continue in
full force and effect.

IN WITNESS WHEREOF, the
duly authorized representatives of the parties have executed this Amendment as
of the date first above written.

	
  Laboratory Corporation of America Holdings:

  	
   

  	
  EXACT Sciences Corporation:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Bradford T. Smith

  	
   

  	
  By:

  	
  /s/ Charles R. Carelli, Jr.

  
	
   

  	
  Bradford T. Smith

  	
   

  	
   

  	
  Charles R. Carelli Jr.

  
	
   

  	
  Printed Name

  	
   

  	
   

  	
  Printed Name

  
	
   

  	
  Title: Executive Vice President

  	
   

  	
   

  	
  Title: Chief Financial Officer

  

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Exchange Act; [*] denotes omissions.

 4
 

Schedule 7

Personnel

Name                                                      Annual Salary

Don Hardison

[********]                                           [********]

[********]                                           [********]

[********]                                           [********]

[********]                                           [********]

 

 

 

Portions
of this Exhibit were omitted and have been filed separately with the Secretary
of the Commission pursuant to the Company’s application requesting confidential
treatment under Rule 24b-2 of the Exchange Act; [*] denotes omissions.

 5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]