definiens: Registered Shares " means shares ofcommon stockthathavebeenregistered undertheSecurities Actof1933,asamended . andthatarefreely tradable . Ll.9IL2Loan Option . Within fifteen ( 1 - 5)daysfollowing theApproval Date, BMPI may Iirrevocably electtoreceive creditagainst . thefirstthreemilestone payments referred toinISection 4.4oftheAgreement ( butnotthe411Ipayment, which shallremain dueandpayable inaccordance therewith ), inexchange fortheissuance ofasecured promissory InotetoChiron inthesumofThree Million Seven Hundred FiftyThousand Dollars(S3,750.ooo ) ( the ) . TheNoteshallbeissued onthefollowing tenns and Iconditions, inaddition tothosecustomarily contained inpromissory notesofasimilar~~ IPrincipal, -\ccruine [ mere, t Accrual Da!~Sccurity fortheNoteshallbealienonallassets ofBMPl . withpriority overallotherlobligations ofBMP\. .Annual interest atthelesserofTwelve Percent ( 12 % ) orthemaximum raleallowed byla'.\·,compounded semi·anuually . shallaccrue oneachofthethreeprincipal amounts shoMilestone Equi\'alent'Accrual Datc " ) undcontinuing ur.:ilsuchp!inclp::l : : ~'lmml hasbc::::n !, ; ' ! idinfell . IIIDateoftheNote < f1.25MillioE :X Milestone EquivalentAJmiversary ofDateoftheNote € 5 Millio!y<)12ndAnniversary ofDateoftheNote & 25MilIioJi):)1Payment ofallprincipal andaccrued interest owing ontheNoteshallbedueupontheearlier of(a)thirty - seven ( 37)months following theApproval Date(the ) . ( b)aninitial public offering ofshares ofBMP ! common stock(an )