Document:

Exhibit
10.2

 

AMENDED AND RESTATED

DEBT EXCHANGE AGREEMENT

 

THIS AMENDED AND RESTATED DEBT
EXCHANGE AGREEMENT (this “Agreement”) is entered into as of
this 15th day of June, 2010 by and between ADVANCED  LIFE SCIENCES HOLDINGS, INC., a Delaware corporation (the
“Company”), and Michael T. Flavin (the “Maker”).

 

RECITALS

 

WHEREAS, the Company and the Maker have entered into that
certain Third Amended & Restated Promissory Note dated as of January 4,
2010 (the “Note”) relating to indebtedness of the Company to Maker in
the outstanding principal amount of $2.0 million (the “Indebtedness”);

 

WHEREAS, the Company has filed with the Securities and
Exchange Commission a Registration Statement on Form S-1, Registration No. 333-165388
(as amended, the “Registration Statement”) relating to a proposed
registered public offering by the Company (“Offering”) of units (the “Units”),
with each unit consisting of a specified number of shares of common stock,
warrants to purchase common stock (the “Stock Warrants”) and warrants to
purchase additional units consisting of shares of common stock and Stock
Warrants (the “Unit Warrants”);

 

WHEREAS, pursuant to that certain Debt Exchange Agreement
dated as of May 10, 2010 (the “Original Agreement”) the Maker has
agreed with the Company (acting through the independent audit committee of the
Company’s board of directors) to exchange the Note for Units on the terms and
conditions described therein; and

 

WHEREAS, the Maker and the Company (acting through the
independent audit committee of the Company’s board of directors) have agreed to
amend and restate the Original Agreement in its entirety upon the terms and
subject to the conditions of this Agreement.

 

NOW, THEREFORE, in consideration of the foregoing Recitals
and the mutual agreements and covenants contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Maker and the Company hereby agree as follows:

 

ARTICLE I

DEBT EXCHANGE

 

1.1           Debt Exchange.  Within fifteen (15) days following
effectiveness of the Charter Amendment (as defined below) under the laws of the
State of Delaware, the Maker shall deliver the Note to the Company for
cancellation and retirement in full of the Indebtedness and, in exchange,
receive from the Company a number of Units determined by dividing (a) $2,000,000
by (b) the price per Unit at which the Units were issued and sold to the
public in the Offering, rounded down to the nearest whole Unit with any
fractional Unit being paid by the Company in cash (the “Exchange”).  The Units issuable to Maker in the Exchange
are referred to herein as the “Exchange Units.”

 

1.2           Stockholder Approval.  Within sixty (60) days following the sale of
Units by the Company in the Offering, the Company shall schedule and provide
written notice to stockholders of a special meeting at which the Company shall
request stockholders to approve an amendment to the Company’s certificate of
incorporation (the “Charter Amendment”) providing for an increase in the
authorized shares of the Company’s common stock by an amount sufficient (taking
into account all shares of the Company’s common stock then outstanding or
reserved for issuance) to allow for the issuance of (a) shares of common
stock contained in 

 

 

the Exchange Units, (b) shares
of common stock underlying Stock Warrants contained in the Exchange Units and (c) shares
of common stock underlying Stock Warrants that are issuable upon the exercise
of the Unit Warrants contained in the Exchange Units.  If the Charter Amendment is approved by
stockholders representing the requisite percentage of the Company’s common
stock required under Delaware law, then the Company shall file the Charter
Amendment with the Secretary of State of the State of Delaware and take such
further action as reasonably necessary for the Charter Amendment to become
effective.

 

1.2           Accrued Interest.  On the date of the Exchange, the Company
shall make a cash payment to the Maker in satisfaction of accrued and unpaid
interest on the Indebtedness to but excluding the date of the Exchange.

 

1.3           Restricted Securities.  The Maker understands that the Units to be
issued by the Company pursuant to this Agreement, the shares of common stock
and warrants underlying such Units and the shares of common stock underlying such
warrants (collectively, the “Securities”) are characterized as “restricted
securities” under the federal securities laws inasmuch as they will be acquired
in a transaction not involving a public offering, and that under such laws and
applicable regulations such securities may be resold without registration under
the federal securities laws only in certain limited circumstances.  The certificates for the Securities shall be
subject to a legend or legends restricting transfer under the federal
securities laws and referring to restrictions on transfer herein, such legend
to be substantially as follows:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE BEEN ISSUED
AND SOLD IN RELIANCE UPON EXEMPTIONS FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “1933 ACT”), AND APPROPRIATE EXEMPTIONS FROM
REGISTRATION UNDER THE SECURITIES LAWS OF OTHER APPLICABLE JURISDICTIONS. THE
SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD OR TRANSFERRED OTHER THAN
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION FROM THE
REGISTRATION REQUIREMENTS UNDER THE 1933 ACT AND THE APPLICABLE SECURITIES LAWS
OF ANY OTHER JURISDICTION.  THE ISSUER
SHALL BE ENTITLED TO REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO
IT WITH RESPECT TO COMPLIANCE OF THE PROPOSED SALE OR TRANSFER WITH THE
REGISTRATION REQUIREMENTS OF THE 1933 ACT OR EXEMPTION THEREFROM.

 

ARTICLE II

MISCELLANEOUS

 

2.1           Changes. 
This Agreement may be modified, amended or waived only pursuant to a
written instrument signed by the Company and the Maker.

 

2.2           Headings.  The headings of the various sections of this
Agreement have been inserted for convenience of reference only and shall not be
deemed to be part of this Agreement.

 

2.3           Governing Law.  This Agreement shall be interpreted and the
rights and liabilities of the parties hereto determined in accordance with the
internal laws and decisions of the State of Illinois, without giving affect to
the conflict of laws principals thereof. 
Whenever possible, each provision of this Agreement shall be interpreted
in such a manner as to be effective and valid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or by the remaining
provisions of this Agreement.

 

2

 

2.4           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which,
when taken together, shall constitute but one instrument, and shall become
effective when one or more counterparts have been signed by each party hereto
and delivered to the other party.

 

2.5           Entire Agreement.  This Agreement constitutes the entire
agreement between the parties hereto with respect to the Exchange and
supersedes any prior understandings or agreements with respect thereto.

 

2.6           Term and Termination.  This Agreement shall terminate upon the
earliest to occur of (a) the Registration Statement being terminated or
withdrawn with no Units being issued by the Company thereunder, (b) the
Company stockholders declining to approve the Charter Amendment by the
requisite percentage under Delaware law, as reflected in certified special
meeting voting results or (c) consummation of the Exchange.

 

[signature page follows]

 

3

 

IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date first written above.

 

	
   

  	
  ADVANCED LIFE SCIENCES
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Mark Caputo

  
	
   

  	
   

  	
  Name: Mark Caputo

  
	
   

  	
   

  	
  Title: Vice President
  Accounting and Controller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MICHAEL T. FLAVIN

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Michael T. Flavin

  

 

4Exhibit
10.1

 

AMENDED AND RESTATED

PLAN OF DISSOLUTION

OF CLST HOLDINGS, INC.

 

This
Plan of Dissolution (the “Plan of Dissolution”) is intended to accomplish the
complete liquidation and dissolution of CLST Holdings, Inc., f/k/a
CellStar Corporation, a Delaware corporation (“CellStar” or the “Company”), in
accordance with the Delaware General Corporation Law (the “DGCL”) and Sections
331 and 336 of the Internal Revenue Code of 1986, as amended, as follows:

 

1.    
EFFECTIVE DATE.  The board of directors of the Company has adopted
this Plan of Dissolution and called a Special Meeting of the Company’s
stockholders. The purpose of the Special Meeting is to consider proposals to
approve the U.S. Sale Agreement(1) and the Mexico Sale Agreement, the
proposal to approve this Plan of Dissolution, and the proposal to amend the
Company’s certificate of incorporation. If stockholders holding a Majority
(defined as 50% + 1) of the Company’s outstanding Common Stock vote for the
adoption of this Plan of Dissolution at the Special Meeting, the Plan of
Dissolution shall constitute the adopted Plan of Dissolution of the Company as
of the date of the Meeting, or such later date on which the stockholders may
approve the Plan of Dissolution if the Meeting is adjourned to a later date
(the “Adoption Date”).

 

2.    
IMPLEMENTATION.  The implementation of the Plan of Dissolution is
conditioned upon stockholder approval and consummation of the U.S. Sale. If the
U.S. Sale is consummated, but the Mexico Sale is not, the Company will implement
the Plan of Dissolution, and will seek to sell, otherwise dispose of, or wind
down and liquidate its Mexico operations as part of the plan.

 

3.    
CESSATION OF BUSINESS ACTIVITIES.  After the Adoption Date, the
Company shall not engage in any business activities except to the extent
necessary to preserve the value of its assets, wind up its business affairs,
and distribute its assets in accordance with this Plan of Dissolution. No later
than thirty (30) days following the Adoption Date, the Company shall file
Form 966 with the Internal Revenue Service.

 

4.    
CONTINUING EMPLOYEES AND CONSULTANTS.  For the purpose of effecting
the dissolution of the Company, the Company shall hire or retain, at the
discretion of the board of directors, such employees and consultants as the
board of directors deems necessary or desirable to supervise the dissolution.

 

5.    
LIQUIDATION PROCESS.  From and after the Adoption Date, the Company
shall complete the following corporate actions:

 

(a)    LIQUIDATION OF ASSETS.  Approval
of the Plan of Dissolution shall constitute approval (to the extent that such
approval is required) of any additional agreements for the sale of assets
entered into prior to the effectiveness of the Plan of Dissolution. The Company’s
assets and properties not subject to the U.S. and Mexico Sales may be sold in
bulk to one buyer or a small number of buyers or on a piecemeal basis to
numerous buyers. The specific terms of such sales shall be determined by the
board of directors and may be conducted by competitive bidding or privately
negotiated sales. The Company will not be required to obtain appraisals or
other third party opinions as to the value of its properties and assets in
connection with the liquidation. In connection with such collection, sale,
exchange and other disposition, the Company shall collect or make provision for
the collection of all accounts receivable, debts and claims owing to the
Company.

 

(b)   PAYMENT OF OBLIGATIONS.  The
Company, as determined by the board of directors, shall set aside a Contingency
Reserve consisting of assets which the Company believes are sufficient to pay
or make reasonable provision to pay all claims and obligations of the Company,
including all contingent, conditional or unmatured contractual claims known to
the Company. Furthermore, the

 

(1)             Terms not otherwise defined in the Plan of
Dissolution have their meaning as defined in the CellStar Corporation Proxy
Statement.

 

1

 

Company,
as determined by the board of directors, shall otherwise (i) make such
provisions as will be reasonably likely to be sufficient to provide
compensation for any claim against the Company that is the subject of a pending
action, suite or proceeding to which the Company is a party, and (ii) make
such provision as will be reasonably likely to be sufficient to provide
compensation for claims that have not been made known to the Company or that
have not arisen but that, based on facts known to the Company, are likely to
arise or to become known to the Company within ten years after the date of
dissolution.

 

(c)    CONTINGENT CLAIMS.  Without
limiting the flexibility of the board of directors, the board of directors may,
at its option, cause the Company to follow the procedures set forth in Sections
280 and 281(a) of the DGCL.

 

Notwithstanding
the foregoing, the Company shall not be required to follow the procedures
described in Section 280 of the DGCL, and the adoption of the Plan of
Dissolution by the Company’s stockholders shall constitute full and complete
authority for the board of directors and the officers of the Company, without
further stockholder action, to proceed with the dissolution and liquidation of
the Company in accordance with Section 281(b) of the DGCL.

 

(d)   DISTRIBUTIONS TO
STOCKHOLDERS.  The Company may, from time to time, make liquidating
distributions of the remaining funds and unsold assets of the Company, if any,
in cash or in kind, to the holders of record of Common Stock at the close of
business on the Dissolution Date (as defined below in Section 6). Except
as contemplated in Section 23(d) of that certain Rights Agreement,
dated as of February 13, 2009 by and between the Company and Mellon
Investor Services LLC, as Rights Agent, as amended to date (the “Plan”) (which Section 23(d) and
the authority granted the board of directors therein are incorporated into this
Plan of Dissolution by reference) permitting the board of directors to adjust
liquidating distributions to holders of the Common Stock payable under the
Plan, such liquidating distributions, if any, will be made to the holders of
Common Stock on a pro rata basis; all determinations as to the time for and the
amount and kind of distributions will be made by the board of directors in its
absolute discretion and in accordance with Section 281 of the DGCL. No
assurances can be given that available cash and amounts received on the sale of
assets will be adequate to provide for the Company’s obligations, liabilities,
expenses and claims, and to make any cash distributions to stockholders.

 

The
Company shall close its stock transfer books and discontinue recording
transfers of shares of Common Stock on the Dissolution Date (as defined below
in Section 6), at which time the Company’s capital stock and stock certificates
evidencing the Common Stock shall not be assignable or transferable on the
books of the Company.

 

The
Company shall not make any distributions until such time, as determined by the
board of directors, as the pending SEC investigation against the Company is
concluded. Once this determination has been made, the board of directors shall
determine the amount of the Contingency Reserve.

 

6.    
CANCELLATION OF STOCK.  The distributions to the stockholders
pursuant to the terms of this Plan of Dissolution shall be in complete
cancellation of all of the outstanding Common Stock of the Company. As a
condition to receipt of any distribution to the stockholders, the board of
directors, in its absolute discretion, may require the stockholders to
(i) surrender their certificates evidencing the Common Stock to the
Company or its agents for recording of such distributions thereon or
(ii) furnish the Company with evidence satisfactory to the board of
directors the loss, theft or destruction of their certificates evidencing the
Common Stock, together with such surety bond or other security or indemnity as
may be required by and satisfactory to the board of directors. The Company will
finally close its stock transfer books and discontinue recording transfers of
Common Stock on the date on which the Company files its Certificate of
Dissolution under the DGCL (the “Dissolution Date”) and thereafter certificates
representing Common Stock will not be assignable or transferable on the books
of the Company except by will, intestate succession, or operation of law.

 

7.    
ABANDONED PROPERTY.  If any distribution to a stockholder cannot be
made, whether because the stockholder cannot be located, has not surrendered
its certificates evidencing the Common Stock as required hereunder or for any
other reason, the distribution to which such stockholder is entitled shall be
transferred, at such time as the final liquidating distribution is made by the
Company, to the official of such state or other jurisdiction authorized by
applicable law to receive the proceeds of such distribution. The proceeds of
such distribution shall thereafter be held solely for the benefit of and for
ultimate distribution to such stockholder as the sole equitable owner thereof
and shall be treated as abandoned property and escheat to the applicable state
or other jurisdiction in 

 

2

 

accordance
with applicable law. In no event shall the proceeds of any such distribution
revert to or become the property of the Company.

 

8.    
CERTIFICATE OF DISSOLUTION.  After the Adoption Date, the officers of
the Company shall, at such time as the board of directors, in its absolute
discretion, deems necessary, appropriate or desirable, obtain any certificates
required from the Delaware tax authorities and, upon obtaining such
certificates, the Company shall file with the Secretary of State of the State
of Delaware a certificate of dissolution (the “Certificate of Dissolution”) in
accordance with the DGCL. The dissolution of the Company will become effective
in accordance with Section 275 of the DGCL, upon proper filing of the
Certificate of Dissolution with the Secretary of State or upon such later date
as may be specified in the Certificate of Dissolution, but in no event later
than ninety (90) days after the filing. In no event shall the Company wait
longer than three years after the Adoption Date to file the Certificate of
Dissolution.

 

9.    
STOCKHOLDER CONSENT TO SALE OF ASSETS.  Adoption of this Plan of
Dissolution by holders of a Majority of the outstanding Common Stock shall
constitute the approval of the stockholders of the sale, exchange or other
disposition in liquidation of all of the property and assets of the Company,
whether such sale, exchange or other disposition occurs in one transaction or a
series of transactions, and shall constitute ratification of all contracts for
sale, exchange or other disposition which are conditioned on adoption of this
Plan of Dissolution.

 

10.  
EXPENSES OF DISSOLUTION.  In connection with and for the purposes of
implementing and assuring completion of this Plan of Dissolution, the Company
may, in the absolute discretion of the board of directors, pay any brokerage,
agency, professional and other fees and expenses of persons rendering services
to the Company in connection with the collection, sale, exchange or other
disposition of the Company’s property and assets and the implementation of this
Plan of Dissolution.

 

11.  
COMPENSATION.  In connection with and for the purpose of implementing
and assuring completion of this Plan of Dissolution, the Company may, in the
absolute discretion of the board of directors, pay the Company’s officers,
directors, employees, agents and representatives, or any of them, compensation
or additional compensation above their regular compensation, including pursuant
to severance and retention agreements, in money or other property, in
recognition of the efforts they, or any of them, will be required to undertake,
or actually undertake, in connection with the implementation of this Plan of
Dissolution. Adoption of this Plan of Dissolution by a Majority of the
outstanding Common Stock shall constitute the approval of the Company’s
stockholders of the payment of any such compensation.

 

12.  
INDEMNIFICATION.  The Company shall continue to indemnify its
officers, directors, employees, agents and representatives in accordance with
its Certificate of Incorporation, as amended, and the Amended and Restated
Bylaws and any contractual arrangements, for the actions taken in connection
with this Plan of Dissolution and the winding up of the affairs of the Company.
The board of directors, in its absolute discretion, is authorized to obtain and
maintain insurance as may be necessary or appropriate to cover the Company’s
obligation hereunder, including seeking an extension of time and coverage of
the Company’s insurance policies currently in effect. Furthermore, the board of
directors, in its absolute discretion, may authorize the payment of a retainer
fee to a law firm or law firms selected by the board of directors for legal
fees and expenses of the Company, including, among other things, to cover any
costs payable pursuant to the indemnification of the Company’s officers or
members of the board of directors provided by the Company pursuant to its
Certificate of Incorporation and Amended and Restated Bylaws or the DGCL or
otherwise. In addition, in connection with and for the purpose of implementing
and assuring completion of the Plan of Dissolution, the Company may, in the absolute
discretion of the board of directors, pay any brokerage, agency and other fees
and expenses of persons rendering services to the Company in connection with
the collection, sale, exchange or other disposition of the Company’s property
and assets and the implementation of the Plan of Dissolution.

 

13.  
CONDUCT OF THE COMPANY FOLLOWING ADOPTION OF THE PLAN OF
DISSOLUTION.  Upon approval of the Plan of Dissolution, the Company
shall continue the process of scaling back its operations and winding up its affairs.
Following the Dissolution Date, the Company’s activities will be limited to
winding up its affairs, taking such action as may be necessary to preserve the
value of its assets and distributing its assets in accordance with the Plan of
Dissolution. The Company will seek to distribute or liquidate all of its assets
in such manner and upon such terms as the board of directors determines to be
in the best interests of the Company’s creditors and stockholders.

 

3

 

Under
the U.S. Sale Agreement, the Company has agreed that, following the closing of
the U.S. Sale, it will not liquidate or dissolve until seven months after
closing. The Company will not file the Certificate of Dissolution any earlier
than after the closing date of the U.S. Sale.

 

The
Company shall take all steps necessary to reduce the Company’s operating
expenses through the termination of employees and other cost-cutting measures.

 

14.  
MODIFICATION OR ABANDONMENT OF THE PLAN OF DISSOLUTION.  Under the Plan of Dissolution, the board of
directors may modify, amend or abandon the Plan of Dissolution, notwithstanding
stockholder approval, to the extent permitted by the DGCL. The Company will not
amend or modify the Plan of Dissolution under circumstances that would require
additional stockholder solicitations under the DGCL or the federal securities
laws without complying with the DGCL and the federal securities laws. The
Company has no present plan or intention to modify, amend or abandon the Plan
of Dissolution.

 

15.  
LISTING AND TRADING OF THE COMMON STOCK.  The board of directors
shall cause the Company to close its stock transfer books on the Dissolution
Date and at such time shall cease recording stock transfers and issuing stock
certificates (other than replacement certificates). The Company shall make a
public announcement on the anticipated filing date of the Certificate of
Dissolution at least 10 business days in advance of the filing.

 

16.  
ABSENCE OF APPRAISAL RIGHTS.  Holders of the Company’s Common Stock
are not entitled to appraisal rights in connection with the proposed sales or
the proposed liquidation and dissolution under the DGCL, Delaware State law,
the Company’s Certificate of Incorporation or the Company’s Amended and
Restated Bylaws.

 

17.  
AUTHORIZATION.  The board of directors of the Company is hereby
authorized, without further action by the stockholders, to do and perform or
cause the officers of the Company, subject to approval of the board of
directors, to do and perform, any and all acts, and to make, execute, deliver
or adopt any and all agreements, resolutions, conveyances, certificates and
other documents of every kind which are deemed necessary, appropriate or
desirable, in the absolute discretion of the board of directors, to implement
this Plan of Dissolution and the transaction contemplated hereby, including,
without limiting the foregoing, all filings or acts required by any state or
federal law or regulation to wind up its affairs.

 

Amendment of this Plan of Dissolution was approved by the Board on June 17,
2010.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]