Document:

Exhibit 10.9

 

AMENDED
AND RESTATED COMMERCIAL PLEDGE AGREEMENT

 

	
  Borrower:

  	
  Advanced
  Life Sciences, Inc.

  1440 Davey Road

  Woodridge, IL 60517

  	
  Lender:

  	
  THE
  LEADERS BANK

  2001 YORK ROAD, SUITE 150

  OAK BROOK, IL  60523

  
	
   

  	
   

  	
   

  	
   

  
	
  Grantor:

  	
  ALS
  Ventures, LLC

  1440 Davey Rd

  Woodridge, IL 60517

  	
   

  	
   

  

 

THIS AMENDED AND RESTATED COMMERCIAL PLEDGE AGREEMENT dated October 23,
2008, is made and executed by and among ALS Ventures, LLC, a Delaware limited
liability company (“Grantor”), Advanced Life Sciences, Inc., an Illinois
corporation (“Borrower”), and THE LEADERS BANK (“Lender”).  This Agreement amends and restates in its
entirety that certain Commercial Pledge Agreement, dated April 18, 2006,
by and among Grantor, Borrower and Lender (“Original Pledge Agreement”).  The security interest evidenced by the
Original Pledge Agreement is a continuing security interest evidenced by this
Agreement, and nothing contained herein shall be deemed to constitute a release
or otherwise adversely affect any lien, mortgage or security interest represented
by the Original Pledge Agreement.  This
Agreement is entered into pursuant to that certain Amended and Restated
Business Loan Agreement, dated as of even date herewith, by and between the
Borrower and the Lender (“Loan Agreement”), whereby the Lender has agreed to
lend Ten Million and 00/100 Dollars to the Borrower subject to the terms and
conditions of the Loan Agreement.

 

GRANT OF SECURITY INTEREST.  For
valuable consideration, Grantor grants to Lender a security interest in the
Collateral to secure the Indebtedness and agrees that Lender shall have the
rights stated in this Agreement with respect to the Collateral in addition to
all other rights which Lender may have by law.

 

COLLATERAL DESCRIPTION.  The word “Collateral” as used
in this Agreement means all of Grantor’s property (however owned if more than
one), in the possession of Lender (or in the possession of a third party
subject to the control of Lender), whether existing now or later and whether
tangible or intangible in character, including without limitation, the
following:

 

2,540,000 shares of common stock of Advanced Life Sciences Holdings, Inc.,
a Delaware corporation.

 

In
addition, the word “Collateral” includes all of Grantor’s property (however
owned), in the possession of Lender (or in the possession of a third party
subject to the control of Lender), whether now or hereafter existing and
whether tangible or intangible in character, including, without limitation,
each of the following:

 

(A) All property to which Lender acquires title
or documents of title.

 

(B) All property assigned to Lender.

 

(C) All promissory notes, bills of exchange,
stock certificates, bonds, savings passbooks, time certificates of deposit,
insurance policies, and all other Instruments and evidences of an obligation.

 

(D) All records relating to any of the property
described in this COLLATERAL DESCRIPTION section, whether in the form of a
writing, microfilm, microfiche, or electronic media.

 

(E) All Income and Proceeds from the Collateral
as defined herein.

 

GRANTOR’S REPRESENTATIONS AND WARRANTIES. 
Grantor warrants that: (A) this Agreement is executed at Borrower’s
request and not at the request of Lender; (B) Grantor has the full right,
power and authority to enter into this Agreement and to pledge the Collateral
to Lender; (C) Grantor has established adequate means of obtaining from
Borrower on a continuing basis information about Borrower’s financial
condition; and (D) Lender has made no representation to Grantor about
Borrower or Borrower’s creditworthiness.

 

1

 

GRANTOR’S WAIVERS.  Grantor waives all requirements
of presentment, protest, demand, and notice of dishonor or non-payment to
Borrower or Grantor, or any other party to the Indebtedness or the Collateral.  Lender may do any of the following with
respect to any obligation of Borrower, without first obtaining the consent of
Grantor: (A) grant any extension of time for any payment, (B) grant
any renewal, (C) permit any modification of payment terms or other terms,
or (D) exchange or release any Collateral or other security.  No such act or failure to act shall affect
Lender’s rights against Grantor or the Collateral.

 

RIGHT OF SETOFF.  To the extent permitted by applicable law,
Lender reserves a right of setoff in all Grantor’s accounts with Lender
(whether checking, savings, or some other account).  This includes all accounts Grantor holds
jointly with someone else and all accounts Grantor may open in the future; provided,
however, this does not include any IRA or Keogh accounts, or any trust
accounts for which setoff would be prohibited by law.  Grantor authorizes Lender, to the extent
permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts, and, at Lender’s option, to
administratively freeze all such accounts to allow Lender to protect Lender’s
charge and setoff rights provided in this RIGHT OF SETOFF section.

 

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. 
Grantor represents and warrants to Lender that:

 

Ownership.  Grantor is the lawful owner of the Collateral
free and clear of all security interests, liens, encumbrances and claims of
others except as disclosed to and accepted by Lender in writing prior to
execution of this Agreement.

 

Right to Pledge.  Grantor has the full right, power and
authority to enter into this Agreement and to pledge the Collateral.

 

Authority; Binding Effect.  Grantor has the full right,
power and authority to enter into this Agreement and to grant a security
interest in the Collateral to Lender. 
This Agreement is binding upon Grantor as well as Grantor’s successors
and assigns, and is legally enforceable in accordance with its terms.  The foregoing representations and warranties,
and all other representations and warranties contained in this Agreement, are
and shall be continuing in nature and shall remain in full force and effect
until such time as this Agreement is terminated or cancelled as provided
herein.

 

No Further Assignment.  Grantor has not, and shall not,
sell, assign, transfer, encumber or otherwise dispose of any of Grantor’s
rights in the Collateral except as provided in this Agreement.

 

No Defaults.  There are no defaults existing under the
Collateral, and there are no offsets or counterclaims to the same.  Grantor will strictly and promptly perform
each of the terms, conditions, covenants and agreements, if any, contained in
the Collateral which are to be performed by Grantor.

 

No Violation.  The execution and delivery of this Agreement
will not violate any law or agreement governing Grantor or to which Grantor is
a party, and its membership agreement does not prohibit any term or condition
of this Agreement.

 

Financing Statements.  Grantor authorizes Lender to
file a UCC financing statement, or alternatively, a copy of this Agreement to
perfect Lender’s security interest.  At
Lender’s request, Grantor additionally agrees to sign all other documents that
are necessary to perfect, protect, and continue Lender’s security interest in
the Property.  Grantor will pay all
filing fees, title transfer fees, and other fees and costs involved unless
prohibited by law or unless Lender is required by law to pay such fees and
costs.  Grantor irrevocably appoints
Lender to execute documents necessary to transfer title if there is a
default.  Lender may file a copy of this
Agreement as a financing statement.  If
Grantor changes Grantor’s name or address, or the name or address of any person
granting a security interest under this Agreement changes, Grantor will
promptly notify the Lender of such change.

 

LENDER’S RIGHTS AND OBLIGATIONS WITH RESPECT TO THE COLLATERAL. 
Lender may hold the Collateral until all indebtedness has been paid and
satisfied.  Thereafter, Lender may
deliver the Collateral to 

 

2

 

Grantor
or to any other owner of the Collateral. 
Lender shall have the following rights in addition to all other rights
Lender may have by law:

 

Maintenance and Protection of Collateral. 
Lender may, but shall not be obligated to, take such steps as it deems
necessary or desirable to protect, maintain, insure, store, or care for the
Collateral, including paying any liens or claims against the Collateral.  This may include such things as hiring other
people, such as attorneys, appraisers or other experts.  Lender may charge Grantor for any cost
incurred in so doing.  When applicable
law provides more than one method of perfection of Lender’s security interest,
Lender may choose the method(s) to be used.  If the Collateral consists of stock, bonds or
other Investment Property for which no certificate has been issued, Grantor
agrees, at Lender’s request, either to request issuance of an appropriate
certificate or to give instructions on Lender’s forms to the issuer, transfer
agent, mutual fund company, or broker, as the case may be, to record on its
books or records Lender’s security interest in the Collateral.  Grantor also agrees to execute any additional
documents, including but not limited to, a control agreement or any other
documents necessary to perfect Lender’s security interest as Lender may desire.

 

Income and Proceeds from the Collateral. 
Lender may receive all Income and Proceeds and add it to the
Collateral.  Grantor agrees to deliver to
Lender immediately upon receipt, in the exact form received and without
commingling with other property, all Income and Proceeds which may be received
by, paid, or delivered to Grantor or for Grantor’s account, whether as an
addition to, in discharge of, in substitution of, or in exchange for any of the
Collateral.

 

Application of Cash.  At Lender’s option, Lender may
apply any cash, whether included in the Collateral or received as Income and
Proceeds or through liquidation, sale, or retirement, of the Collateral, to the
satisfaction of the indebtedness or such portion thereof as Lender shall
choose, whether or not matured.

 

Transactions with Others.  Lender may (A) extend time
for payment or other performance, (B) grant a renewal or change in terms
or conditions, or (C) compromise, compound or release any obligation, with
anyone or more Obligors, endorsers, or guarantors of the indebtedness as Lender
deems advisable, without obtaining the prior written consent of Grantor, and no
such act or failure to act shall affect Lender’s rights against Grantor or the
Collateral.

 

All Collateral Secures Indebtedness.  All
Collateral shall be security for the indebtedness, whether the Collateral is
located at one or more offices or branches of Lender.  This will be the case whether or not the
office or branch where Borrower obtained Borrower’s loan knows about the
Collateral or relies upon the Collateral as security.

 

Collection of Collateral.  Lender, at Lender’s option,
may, but need not, collect the Income and Proceeds directly from the Obligors.  Grantor authorizes and directs the Obligors,
if Lender decides to collect the Income and Proceeds, to pay and deliver to
Lender all Income and Proceeds from the Collateral and to accept Lender’s
receipt for the payments.

 

Power of Attorney.  Grantor irrevocably appoints
Lender as Grantor’s attorney-in-fact, with full power of substitution, (A) to
demand, collect, receive, receipt for, sue and recover all Income and Proceeds
and other sums of money and other property which may now or hereafter become
due, owing or payable from the Obligors in accordance with the terms of the
Collateral; (B) to execute, sign and endorse any and all instruments,
receipts, checks, drafts and warrants issued in payment for the Collateral; (C) to
settle or compromise any and all claims arising under the Collateral, and in
the place and stead of Grantor, execute and deliver Grantor’s release and
acquittance for Grantor; (D) to file any claim or claims or to take any
action or institute or take part in any proceedings, either in Lender’s own
name or in the name of Grantor, or otherwise, which in the discretion of Lender
may seem to be necessary or advisable; and (E) to execute in Grantor’s
name and to deliver to the Obligors on Grantor’s behalf, at the time and in the
manner specified by the Collateral, any necessary instruments or documents.

 

Perfection of Security Interest. 
Upon Lender’s
request, Grantor will deliver to Lender any and all of the documents evidencing
or constituting the Collateral.  When
applicable law provides more than one method 

 

3

 

of perfection of Lender’s security interest, Lender
may choose the method(s) to be used. 
Upon Lender’s request, Grantor will sign and deliver any writings
necessary to perfect Lender’s security interest.  If any of the Collateral consists of
securities for which no certificate has been issued, Grantor agrees, at Lender’s
option, either to request issuance of an appropriate certificate or to execute
appropriate instructions on Lender’s forms instructing the issuer, transfer
agent, mutual fund company, or broker, as the case may be, to record on its
books or records, by book-entry or otherwise, Lender’s security interest in the
Collateral.  Grantor hereby appoints
Lender as Grantor’s irrevocable attorney-in-fact for the purpose of executing
any documents necessary to perfect, amend, or to continue the security interest
granted in this Agreement or to demand termination of filings of other secured
parties.  This is a continuing Security
Agreement and will continue in effect even though all or any part of the
Indebtedness is paid in full and even though for a period of time Borrower may
not be indebted to Lender.

 

LENDER’S EXPENDITURES.  If any action or proceeding is commenced that
would materially affect Lender’s interest in the Collateral or if Grantor fails
to comply with any provision of this Agreement or any Related Documents,
including but not limited to Grantor’s failure to discharge or pay when due any
amounts Grantor is required to discharge or pay under this Agreement or any
Related Documents, Lender on Grantor’s behalf may (but shall not be obligated
to) take any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on the Collateral and paying all
costs for insuring, maintaining and preserving the Collateral.  All such expenditures incurred or paid by
Lender for such purposes will then bear interest at the rate charged under the
Note from the date incurred or paid by Lender to the date of repayment by
Grantor.  All such expenses will become a
part of the Indebtedness and, at Lender’s option, will (A) be payable on
demand; (B) be added to the balance of the Note and be apportioned among
and be payable with any installment payments to become due during either (1) the
term of any applicable insurance policy or (2) the remaining term of the
Note; or (C) be treated as a balloon payment which will be due and payable
at the Note’s maturity.  The Agreement
also will secure payment of these amounts. 
Such rights shall be in addition to all other rights and remedies to
which Lender may be entitled upon Default.

 

LIMITATIONS ON OBLIGATIONS OF LENDER. 
Lender shall
use ordinary reasonable care in the physical preservation and custody of the
Collateral in Lender’s possession, but shall have no other obligation to
protect the Collateral or its value.  In
particular, but without limitation, Lender shall have no responsibility for (A) any
depreciation in value of the Collateral or for the collection or protection of
any Income and Proceeds from the Collateral, (B) preservation of rights
against parties to the Collateral or against third persons, (C) ascertaining
any maturities, calls, conversions, exchanges, offers, tenders, or similar
matters relating to any of the Collateral, or (D) informing Grantor about
any of the above, whether or not Lender has or is deemed to have knowledge of
such matters.  Except as provided above,
Lender shall have no liability for depreciation or deterioration of the
Collateral.

 

REINSTATEMENT OF SECURITY INTEREST. 
If payment is
made by Borrower, whether voluntarily or otherwise, or by guarantor or by any
third party, on the Indebtedness and thereafter Lender is forced to remit the
amount of that payment (A) to Borrower’s trustee in bankruptcy or to any
similar person under any federal or state bankruptcy law or law for the relief
of debtors, (B) by reason of any judgment, decree or order of any court or
administrative body having jurisdiction over Lender or any of Lender’s
property, or (C) by reason of any settlement or compromise of any claim
made by Lender with any claimant (including without limitation, Borrower), the
Indebtedness shall be considered unpaid for the purpose of enforcement of this
Agreement and this Agreement shall continue to be effective or shall be
reinstated, as the case may be, notwithstanding any cancellation of this
Agreement or of any note or other instrument or agreement evidencing the
Indebtedness and the Collateral will continue to secure the amount repaid or
recovered to the same extent as if that amount never had been originally
received by Lender, and Grantor shall be bound by any judgment, decree, order,
settlement or compromise relating to the Indebtedness or to this Agreement.

 

DEFAULT.  Each of the following shall constitute an
Event of Default under this Agreement:

 

Payment Default.  Borrower falls to make any payment when due
under the Indebtedness.

 

Note Default.  The occurrence of an Event of Default under
the Note.

 

4

 

Loan Agreement Default.  The occurrence of an Event of Default under
the Loan Agreement or any of the Loan Documents (as defined in the Loan
Agreement).

 

Other Defaults.  Borrower or Grantor fails to comply with or
to perform any other term, obligation, covenant or condition contained in this
Agreement or in any of the Related Documents or to comply with or to perform
any term, obligation, covenant or condition contained in any other agreement
between Lender and Borrower or Grantor.

 

Default In Favor of Third Parties. 
Should
Borrower, Grantor or any guarantor, endorser, surety, or accommodation party of
any of the Indebtedness default under any Loan, extension of credit, security
agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Borrower’s property
or Borrower’s or any Grantor’s ability to repay the Indebtedness or perform
their respective obligations under this Agreement or any of the Related
Documents.

 

False statements.  Any warranty, representation or statement
made or furnished to Lender by Borrower or Grantor or on Borrower’s or Grantor’s
behalf under this Agreement or the Related Documents is false or misleading in
any material respect, either now or at the time made or furnished or becomes
false or misleading at any time thereafter.

 

Defective Collateralization.  This Agreement or any of the Related Documents
ceases to be in full force and effect (including failure of any collateral
document to create a valid and perfected security interest or lien) at any time
and for any reason.

 

Insolvency.  The dissolution or termination of Borrower’s
or Grantor’s existence as a going business, the Insolvency of Borrower or
Grantor, the appointment of a receiver for any part of Borrower’s or Grantor’s
property, any assignment for the benefit of creditors, any type of creditor
workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Borrower or Grantor.

 

Creditor or Forfeiture Proceedings. 
Commencement
of foreclosure or forfeiture proceedings, whether by judicial proceeding,
self-help, repossession or any other method, by any creditor of Borrower or
Grantor or by any governmental agency against any collateral securing the
Indebtedness.  This includes garnishment
of any of Borrower’s or Grantor’s accounts, including deposit accounts, with
Lender.  However, this Event of Default
shall not apply if (A) there is a good faith dispute by Borrower or
Grantor as to the validity or reasonableness of the claim which is the basis of
the creditor or forfeiture proceeding, and (B) if Borrower or Grantor
gives Lender written notice of the creditor or forfeiture proceeding and
deposits, with Lender, monies or a surety bond for the creditor or forfeiture
proceeding in an amount determined by Lender, in its sale discretion, as being
an adequate reserve or bond for the dispute.

 

Insufficient Market Value of Collateral.  The market value of the Collateral falls below $1,016,000.00, and as a
result of the deterioration of the market value of the Collateral, Grantor does
not, by the close of business on the next business day after Grantor has received
notice from Lender of the deterioration, either (A) reduce the amount of
the Indebtedness in this loan as required by Lender or (B) pledge or grant
an additional security interest to increase the value of the Collateral as
required by Lender.

 

Events Affecting Guarantor.  Any of the preceding events occurs with
respect to any guarantor, endorser, surety, or accommodation party of any of
the Indebtedness or guarantor, endorser, surety, or accommodation party dies or
becomes incompetent or revokes or disputes the validity of, or liability under,
any Guaranty of the Indebtedness.

 

Adverse Change.  A material adverse change occurs in Borrower’s
or Grantor’s financial condition, or Lender believes the prospect of payment or
performance of the Indebtedness is impaired.

 

Insecurity.   Lender, in good faith, believes itself
insecure.

 

5

 

RIGHTS AND REMEDIES ON DEFAULT.  If an Event of Default occurs under this
Agreement, at any time thereafter, Lender may exercise anyone or more of the
following rights and remedies:

 

Accelerate Indebtedness.  Declare all Indebtedness, including any
prepayment penalty which Borrower would be required to pay, immediately due and
payable, without notice of any kind to Borrower or Grantor.

 

Collect the Collateral.  Collect any of the Collateral and, at Lender’s
option and to the extent permitted by applicable law, retain possession of the
Collateral while suing on the Indebtedness.

 

Sell the Collateral.  Sell the Collateral, at Lender’s discretion,
as a unit or in parcels, at one or more public or private sales.  Unless the Collateral is perishable or
threatens to decline speedily in value or is of a type customarily sold on a
recognized market, Lender shall give or mail to Grantor, and other persons as
required by law, notice at least ten (10) days in advance of the time and
place of any public sale, or of the time after which any private sale may be
made; provided, however, no notice need be provided to any person
who, after an Event of Default occurs, enters into and authenticates an
agreement waiving that person’s right to notification of sale.  Grantor agrees that any requirement of
reasonable notice as to Grantor is satisfied if Lender malls notice by ordinary
mall addressed to Grantor at the last address Grantor has given Lender in
writing.  If a public sale is held, there
shall be sufficient compliance with all requirements of notice to the public by
a single publication in any newspaper of general circulation in the county
where the Collateral is located, setting forth the time and place of sale and a
brief description of the property to be sold. 
Lender may be a purchaser at any public sale.

 

Sell Securities.  Sell any securities included in the
Collateral in a manner consistent with applicable federal and state securities
laws.  If, because of restrictions under
such laws, Lender is unable or believes it is unable to sell the securities in
an open market transaction, Grantor agrees that (A) Lender will have no
obligation to delay sale until the securities can be registered, and (B) Lender
may make a private sale to one or more persons or to a restricted group of
persons, even though such sale may result in a price that is less favorable
than might be obtained in an open market transaction.  Such a sale will be considered commercially
reasonable.  If any securities held as
Collateral are “restricted securities” as defined in the Rules of the
Securities and Exchange Commission (such as Regulation D or Rule 144) or
the rules of state securities departments under state “Blue Sky” laws, or
if Grantor or any other owner of the Collateral is an affiliate of the issuer
of the securities, Grantor agrees that neither Grantor, nor any member of
Grantor’s family, nor any other person signing this Agreement will sell or
dispose of any securities of such Issuer without obtaining Lender’s prior
written consent.

 

Rights and Remedies with Respect to Investment Property, Financial
Assets and Related Collateral.  In addition to other rights and remedies granted
under this Agreement and under applicable law, Lender may exercise any or all
of the following rights and remedies: (A) register with any issuer or
broker or other securities intermediary any of the Collateral consisting of
investment property or financial assets (collectively, “Investment Property”)
in Lender’s sole name or in the name of Lender’s broker, agent or nominee; (B) cause
any issuer, broker or other securities intermediary to deliver to Lender any of
the Collateral consisting of securities or Investment Property capable of being
delivered; (C) enter into a control agreement or power of attorney with
any issuer or securities intermediary with respect to any Collateral consisting
of investment property, on such terms as Lender may deem appropriate, in its
sole discretion, including without limitation, an agreement granting to Lender
any of the rights provided hereunder without further notice to or consent by
Grantor; (D) execute any such control agreement on Grantor’s behalf and in
Grantor’s name, and Grantor hereby irrevocably appoints Lender as agent and
attorney-in-fact, coupled with an interest, for the purpose of executing such
control agreement on Grantor’s behalf; (E) exercise any and all rights of
Lender under any such control agreement or power of attorney; (F) exercise
any voting, conversion, registration, purchase, option, or other rights with
respect to any Collateral; (G) collect, with or without legal action, and
issue receipts concerning any notes, checks, drafts, remittances or distributions
that are paid or payable with respect to any Collateral consisting of
Investment Property.  Any control
agreement entered with respect to any Investment Property shall contain the
following provisions:

 

6

 

(1)  At Lender’s
discretion, Lender shall be authorized to instruct the issuer, broker or other
securities intermediary to take or to refrain from taking such actions with
respect to the Investment Property as Lender may instruct, without further
notice to or consent by Grantor.  Such
actions may include without limitation the issuance of entitlement orders,
account instructions, general trading or buy or sell orders, transfer and
redemption orders, and stop loss orders.

 

(2)  Lender shall
be further entitled to instruct the issuer, broker or securities intermediary
to sell or to liquidate any Investment Property, or to pay the cash surrender
or account termination value with respect to any and all Investment Property,
and to deliver all such payments and liquidation proceeds to Lender.

 

Additionally, any such control agreement shall
contain such authorizations as are necessary to place Lender in “control” of
such investment collateral, as contemplated under the provisions of the Uniform
Commercial Code of the State of Illinois (the “UCC”), and shall fully authorize
Lender to issue “entitlement orders” concerning the transfer, redemption,
liquidation or disposition of investment collateral, in conformance with the
provisions of the UCC.

 

Foreclosure.  Maintain a judicial suit for foreclosure and
sale of the Collateral.

 

Transfer Title.  Effect transfer of title upon sale of all or
part of the Collateral.  For this
purpose, Grantor irrevocably appoints Lender as Grantor’s attorney-in-fact to
execute endorsements, assignments and instruments in the name of Grantor and
each of them (if more than one) as shall be necessary or reasonable.

 

Other Rights and Remedies.  Have and exercise any or all of the rights
and remedies of a secured creditor under the provisions of the UCC, at law, in
equity, or otherwise.

 

Application of Proceeds.  Apply any cash which is part of the
Collateral, or which is received from the collection or sale of the Collateral,
to reimbursement of any expenses, including any costs for registration of
securities, commissions incurred in connection with a sale, attorneys’ fees and
court costs, whether or not there is a lawsuit and including any fees on
appeal, incurred by Lender in connection with the collection and sale of such
Collateral and to the payment of the indebtedness of Borrower to Lender, with
any excess funds to be paid to Grantor as the interests of Grantor may
appear.  Borrower agrees, to the extent
permitted by law, to pay any deficiency after application of the proceeds of the
Collateral to the indebtedness.

 

Election of Remedies.  Except as may be prohibited by applicable
law, all of Lender’s rights and remedies, whether evidenced by this Agreement,
the Related Documents, or by any other writing, shall be cumulative and may be
exercised singularly or concurrently. 
Election by Lender to pursue any remedy shall not exclude pursuit of any
other remedy, and an election to make expenditures or to take action to perform
an obligation of Grantor under this Agreement, after Grantor’s failure to
perform, shall not affect Lender’s right to declare a default and exercise its
remedies.

 

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of this Agreement:

 

Amendments.  This Agreement, together with any Related Documents,
constitutes the entire understanding and agreement of the parties as to the
matters set forth in this Agreement.  No
alteration of or amendment to this Agreement shall be effective unless given in
writing and signed by the party or parties sought to be charged or bound by the
alteration or amendment.

 

Attorneys’ Fees; Expenses.  Grantor agrees to pay upon demand all of
Lender’s costs and expenses, Including Lender’s attorneys’ fees and Lender’s
legal expenses, incurred in connection with the enforcement of this Agreement
upon any Event of Default.  Lender may
hire or pay someone else to help enforce this Agreement, and Grantor shall pay
the costs and expenses of such enforcement. 
Costs and expenses include Lender’s attorneys’ fees and legal expenses
whether or not there is a lawsuit, including attorneys’ fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any 

 

7

 

automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. 
Grantor also shall pay all court costs and such additional fees as may
be directed by the court.

 

Caption Headings.  Caption headings in this Agreement are for
convenience purposes only and are not to be used to interpret or define the
provisions of this Agreement.

 

Governing Law.  This Agreement will be governed by federal
applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Illinois without regard to its conflicts of law
provisions.  This Agreement has been
accepted by Lender in the State of Illinois.

 

Choice of Venue.  If there is a lawsuit, Grantor agrees upon
Lender’s request to submit to the jurisdiction of the courts of DuPage County,
State of Illinois.

 

Joint and Several Liability.  All obligations of Borrower and Grantor under
this Agreement shall be joint and several, and all references to Grantor shall
mean each and every Grantor, and all references to Borrower shall mean each and
every Borrower.  This means that each
Borrower and Grantor signing below is responsible for all obligations in this
Agreement.  Where any one or more of the
parties is a corporation, partnership, limited liability company or similar
entity, it is not necessary for Lender to inquire into the powers of any of the
officers, directors, partners, members, or other agents acting or purporting to
act on the entity’s behalf, and any obligations made or created in reliance
upon the professed exercise of such powers shall be guaranteed under this Agreement.

 

No Waiver by Lender.  Lender shall not be deemed to have waived any
rights under this Agreement unless such waiver is given in writing and signed
by Lender.  No delay or omission on the
part of Lender in exercising any right shall operate as a waiver of such right
or any other right.  A waiver by Lender
of a provision of this Agreement shall not prejudice or constitute a waiver of
Lender’s right otherwise to demand strict compliance with that provision or any
other provision of this Agreement.  No
prior waiver by Lender, nor any course of dealing between Lender and Grantor,
shall constitute a waiver of any of Lender’s rights or of any of Grantor’s
obligations as to any future transactions. 
Whenever the consent of Lender is required under this Agreement, the
granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and
in all cases such consent may be granted or withheld in the sole discretion of
Lender.

 

Notices.  Any notice required to be given under this
Agreement shall be given in writing, and shall be effective when actually
delivered, when actually received by facsimile (unless otherwise required by
law), when deposited with a nationally recognized overnight courier, or, if
mailed, when deposited in the United States man, as first class, certified or
registered mail postage prepaid, directed to the addresses shown near the
beginning of this Agreement.  Any party
may change its address for notices under this Agreement by giving formal
written notice to the other parties, specifying that the purpose of the notice
is to change the party’s address.  For
notice purposes, Grantor agrees to keep Lender informed at all times of Grantor’s
currant address.  Unless otherwise
provided or required by law, if there are more than one Grantor, any notice
given by lender to any Grantor is deemed to be notice given to all Grantors.

 

Severability.  If a court of competent jurisdiction finds
any provision of this Agreement to be illegal, invalid, or unenforceable as to
any circumstance, that finding shall not make the offending provision illegal,
invalid, or unenforceable as to any other circumstance.  If feasible, the offending provision shall be
considered modified so that it becomes legal, valid and enforceable.  If the offending provision cannot be so
modified, it shall be considered deleted from this Agreement.  Unless otherwise required by law, the
illegality, invalidity, or unenforceability of any provision of this Agreement
shall not affect the legality, validity or enforceability of any other
provision of this Agreement.

 

Successors and Assigns.  Subject to any limitations stated in this
Agreement on transfer of Grantor’s interest, this Agreement shall be binding
upon and inure to the benefit of the parties, their successors and
assigns.  If ownership of the Collateral
becomes vested in a person other than Grantor, Lender, without notice to
Grantor, may deal with Grantor’s successors with reference to this Agreement
and the 

 

8

 

indebtedness by way of forbearance or extension
without releasing Grantor from the obligations of this Agreement or liability
under the indebtedness.

 

Time Is of the Essence.  Time is of the essence in the performance of
this Agreement.

 

Waive Jury.  All parties to this Agreement hereby waive
the right to any jury trial in any action, proceeding, or counterclaim brought
by any party against any other party.

 

DEFINITIONS.  The following capitalized words and terms
shall have the following meanings when used in this Agreement.  Unless specifically stated to the contrary,
all references to dollar amounts shall mean amounts in lawful money of the
United States of America.  Words and
terms used in the singular shall include the plural, and the plural shall
include the singular, as the context may require.  Words and terms not otherwise defined in this
Agreement shall have the meanings attributed to such terms in the UCC:

 

Agreement. The
word “Agreement” means this Amended and Restated Commercial Pledge Agreement,
as this Amended and Restated Commercial Pledge Agreement may be amended or
modified from time to time, together with all exhibits and schedule’s attached
to this Amended and Restated Commercial Pledge Agreement from time to time.

 

Borrower.  The word “Borrower” means Advanced Life
Sciences, Inc. and includes all co-signers and co-makers signing the Note
and all their successors and assigns.

 

Collateral:  The word “Collateral” means all of Grantor’s
right, title and interest in and to all the Collateral as described in the
Collateral Description section of this Agreement.

 

Default:  The word “Default” means the Default set
forth in the DEFAULT section of this Agreement.

 

Event of Default:  The words “Event of Default” mean any of the
events of default set forth in this Agreement in the DEFAULT section of this
Agreement.

 

Grantor.  The word “Grantor” means ALS Ventures, LLC.

 

Guaranty.  The word “Guaranty” means the guaranty from
any guarantor, endorser, surety, or accommodation party to Lender, including
without limitation a guaranty of all or part of the Note.

 

Income and Proceeds.  The words “Income and Proceeds” mean all
present and future income, proceeds, earnings, increases, and substitutions
from or for the Collateral of every kind and nature, including without
limitation all payments, interest, profits, distributions, benefits, rights,
options, warrants, dividends, stock dividends, stock splits, stock rights,
regulatory dividends, subscriptions, monies, claims for money due and to become
due, proceeds of any insurance on the Collateral, shares of stock of different
par value or no par value issued in substitution or exchange for shares
included in the Collateral, and all other property Grantor is entitled to
receive on account of such Collateral, including accounts, documents,
instruments, chattel paper, and general intangibles.

 

Indebtedness.  The word “Indebtedness” means the
indebtedness evidenced by the Note or Related Documents, including all principal
and interest together with all other indebtedness and costs and expenses for
which Borrower is responsible under this Agreement or under any of the Related
Documents.

 

Lender. The
word “Lender” means THE LEADERS BANK, its successors and assigns.

 

Note.  The word “Note” means that certain Amended
and Restated Note, dated as of even date herewith, executed by Borrower in
favor of the Lender in the principal amount of Ten Million and 00/100 Dollars
($10,000,000.00), together with all renewals of, extensions of, modifications
of, refinancings of, consolidations of, and substitutions for the Note.

 

9

 

Obligor.  The word “Obligor” means, without limitation,
any and all persons obligated to pay money or to perform some other act under
the Collateral.

 

Property.  The word “Property” means all of Grantor’s
right, title and interest in and to all the property as described in the
COLLATERAL DESCRIPTION section of this Agreement.

 

Related Documents.  The words “Related Documents” mean all
promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds,
collateral mortgages, and all other instruments, agreements and documents, whether
now or hereafter existing, executed In connection with the Indebtedness.

 

UCC.  The word “UCC” means the Uniform Commercial
Code of the State of Illinois, as amended.

 

[SIGNATURE PAGE FOLLOWS]

 

10

 

BORROWER
AND GRANTOR HAVE READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL
PLEDGE AGREEMENT AND AGREE TO ITS TERMS.

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
by their respective authorized officers as of the date first written above.

 

 

	
  GRANTOR:

  	
   

  
	
   

  	
   

  
	
  ALS VENTURES, LLC

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michael T. Flavin

  	
   

  
	
   

  	
  Michael T. Flavin, Manager

  	
   

  
	
   

  	
   

  
	
  BORROWER:

  	
   

  
	
   

  	
   

  
	
  ADVANCED LIFE SCIENCES, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John L. Flavin

  	
   

  
	
   

  	
  John L. Flavin, President

  	
   

  
	
   

  	
   

  
	
  LENDER:

  	
   

  
	
   

  	
   

  
	
  THE LEADERS BANK

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ John Prosia

  	
   

  
	
   

  	
  John Prosia, Executive
  Vice President

  	
   

  

 

[Signature Page to Amended and Restated Commercial Pledge Agreement]Exhibit 10.10

 

AGREEMENT
TO PROVIDE INSURANCE

 

	
  Grantor:

  	
  Advanced
  Life Sciences, Inc.

  1440 Davey Drive

  Woodridge, IL 60517

  	
  Lender:

  	
  THE
  LEADERS BANK

  2001 YORK ROAD, SUITE 150

  OAK BROOK, IL 60523

  

 

INSURANCE REQUIREMENTS.  Grantor, Advanced Life Sciences, Inc.
(“Grantor”), understands that insurance coverage is required in connection with
the extending of a loan or the providing of other financial accommodations to
Grantor by Lender.  These requirements
are set forth in the security documents for the loan.  The following minimum insurance coverages
must be provided on the following described collateral (the “Collateral”):

 

Collateral:                                     All Inventory, equipment,
accounts (including but not limited to all health-care-insurance receivables),
chattel paper, instruments (including but not limited to all promissory notes),
letter-of-credit rights, letters of credit, documents, deposit accounts,
investment property, money, other rights to payment and performance, and
general intangibles (including but not limited to all software and all payment
intangibles); all attachments, accessions, accessories, fittings, increases,
tools, parts, repairs, supplies, and commingled goods relating to the foregoing
property, and all additions, replacements of and substitutions for all or any
part of the foregoing property; all insurance refunds relating to the foregoing
property; all good will relating to the foregoing property; all records and
data and embedded software relating to the foregoing property, and all
equipment, inventory and software to utilize, create, maintain and process any
such records and data on electronic media; and all supporting obligations
relating to the foregoing property; all whether now existing or hereafter
arising, whether now owned or hereafter acquired or whether now or hereafter
subject to any rights in the foregoing property; and all products and proceeds
(including but not limited to all insurance payments) of or relating to the
foregoing property.

 

Type: All risks, including fire, theft and
liability.

Amount: Full Insurable Value.

Basis: Replacement Value.

Endorsements:
The Leaders Bank, as loss payee; and further stipulating that coverage will not
be cancelled or diminished without a minimum of 30 days prior written notice to
Lender.

Latest Delivery Date: By the loan closing date.

 

INSURANCE COMPANY. Grantor may obtain insurance from any insurance company Grantor may
choose that is reasonably acceptable to Lender. 
Grantor understands that credit may not be denied solely because
insurance was not purchased through Lender.

 

INSURANCE MAILING ADDRESS.  All documents and other
materials relating to insurance for this loan should be mailed, delivered or
directed to the following address:

 

The Leaders Bank

Post Office Box 3516

Oak Brook, IL 60522-3516

 

FAILURE TO PROVIDE INSURANCE.  Grantor agrees to deliver to
Lender, on the latest delivery date stated above, proof of the required
insurance as provided above, with an effective date of October 23, 2008,
or earlier. UNLESS GRANTOR PROVIDES LENDER WITH EVIDENCE
OF THE INSURANCE COVERAGE REQUIRED BY GRANTOR’S AGREEMENT WITH LENDER, LENDER MAY PURCHASE
INSURANCE AT GRANTOR’S EXPENSE TO PROTECT LENDER’S INTERESTS IN THE
COLLATERAL.  THIS INSURANCE MAY, BUT NEED
NOT, PROTECT GRANTOR’S INTERESTS.  THE
COVERAGE THAT LENDER PURCHASES MAY NOT PAY ANY CLAIM THAT GRANTOR MAKES,
OR ANY CLAIM THAT IS MADE AGAINST GRANTOR IN CONNECTION WITH THE COLLATERAL.
GRANTOR

 

 

AGREEMENT TO PROVIDE INSURANCE

(Continued)

 

MAY LATER CANCEL ANY INSURANCE PURCHASED BY LENDER, BUT ONLY AFTER
PROVIDING LENDER WITH EVIDENCE THAT GRANTOR HAS OBTAINED INSURANCE AS REQUIRED
BY THEIR AGREEMENT.  IF LENDER PURCHASES
INSURANCE FOR THE COLLATERAL, GRANTOR WILL BE RESPONSIBLE FOR THE COSTS OF THAT
INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES LENDER MAY IMPOSE IN
CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE
CANCELLATION OR EXPIRATION OF THE INSURANCE. 
THE COSTS OF THE INSURANCE MAY BE ADDED TO GRANTOR’S TOTAL
OUTSTANDING BALANCE OR OBLIGATION.  THE
COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE GRANTOR MAY BE
ABLE TO OBTAIN ON GRANTOR’S OWN.

 

IN
ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY
DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL
RESPONSIBILITY LAWS.

 

AUTHORIZATION.  For purposes of insurance coverage on the
Collateral, Grantor authorizes Lender to provide to any person (including any
insurance agent or company) all information Lender deems appropriate, whether
regarding the Collateral, the loan or other financial accommodations, or both.

 

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT
TO PROVIDE INSURANCE AND AGREES TO ITS TERMS. 
THIS AGREEMENT IS DATED OCTOBER 23, 2008.

 

 

	
  GRANTOR:

  
	
   

  
	
  ADVANCED LIFE SCIENCES, INC.

  
	
   

  
	
   

  
	
  By:

  	
  /s/ John L. Flavin

  	
   

  
	
   

  	
  John L. Flavin, President of Advanced

  
	
   

  	
  Life Sciences, Inc.

  

 

2

 

AGREEMENT TO PROVIDE INSURANCE

(Continued)

 

FOR LENDER USE ONLY

INSURANCE VERIFICATION

 

	
  DATE:                                 

  	
   

  	
  PHONE

  
	
   

  	
   

  	
   

  
	
  AGENT’S NAME:

  	
   

  
	
  AGENCY:

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
   

  
	
  INSURANCE COMPANY:

  	
   

  	
   

  
	
  POLICY NUMBER:

  	
   

  	
   

  
	
  EFFECTIVE DATES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  COMMENTS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

3

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