Document:

ex10one.htm

     

     

    
      

      

    

     

    
 

    THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY
STATE.  THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT
BE SOLD OR TRANSFERRED FOR VALUE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
THEREOF UNDER THE SECURITIES ACT OF 1933 AND/OR THE SECURITIES ACT OF ANY STATE
HAVING JURISDICTION, OR AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION
THAT SUCH REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR ACTS.

     

    
    

     

    
      	 No.
      __________	$______________ 
	 	Tustin,
      California 

    

    

    

    [FORM
OF REG D NOTE]

    AMDL,
INC.

    12%
SENIOR PROMISSORY NOTE

    DUE:
_________, 2010

     

    FOR VALUE
RECEIVED, AMDL, Inc., a Delaware corporation (the “Company”) with an
address at 2492 Walnut Avenue, Tustin, California  92780, USA,
hereby promises to pay to the order of _____________________________________
(the “Holder”),
or his or its registered assigns, the sum of
______________________________________ Dollars ($_________) or such lesser
amount as shall then be outstanding hereunder.

     

    The
entire outstanding principal amount of this Senior Promissory Note (“Note”)
shall be due and payable, together with all interest accrued hereon, on a date
(the “Maturity Date”) which shall be the earlier to
occur of (i) _________ __, 2010, or (ii) the completion of the closing
of a credit facility or loans by the Company or its subsidiaries with a
financial institution or bank of not less than Eight Million Dollars
($8,000,000) or more in a transaction or series of transactions (“Bank
Financing”).

     

    Payment
for all amounts of cash or securities due hereunder shall be made by mail to the
registered address of the Holder.  The Holder has received and has
executed, in connection with the purchase hereof, a Securities (Note) Purchase
Agreement dated as of November 19, 2008 (the “Purchase Agreement”)
and a subscription and purchaser representation letter (the “Representation
Letter”), Exhibit A to the Purchase
Agreement.  Capitalized terms used but not defined herein shall
have the meanings assigned to them in the Purchase Agreement.

     

    The
following is a statement of the rights of the Holder of this Note and the
conditions to which this Note is subject, and to which the Holder hereof, by the
acceptance of this Note, agrees:

     

    1.           Definitions.  As
used in this Note, the following terms, unless the context otherwise requires,
have the following meanings:

     

    1.1.           “Business Day” shall
mean any day of the week, other than Saturday, Sunday or any other day in which
national banks in the United States is not open for business.

     

     

     

    EXHIBIT "B"

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    1.2.           “Company” includes any
corporation that may succeed to or assume the obligations of the Company under
this Note.

     

    1.3.           “Holder,” when the
context refers to a Holder of this Note, shall mean any person who shall at the
time be the registered Holder of this Note.

     

    2.           Interest.  This
Note shall bear interest at the annual rate of twelve percent (12%) which shall
accrue and all accrued interest shall be payable semi-annually June 1st and
December 1st of
each year after the issuance of this Note.  Any unpaid interest shall
be payable on the Maturity Date, or earlier in the event of a prepayment of all
or a portion of this Note.  Notwithstanding the foregoing, if this
Note shall not be paid or satisfied in full on the Maturity Date, this Note
shall bear interest, commencing on the Maturity Date, at the rate of eighteen
percent (18%) per annum, payable on the last day of each month following the
Maturity Date, until such time as the entire unpaid principal amount of this
Note, together with all interest accrued hereon shall have been paid in
full.

     

    3.           Prepayment.  The Company shall
have the right, at any time upon not less than ten (10) Business Days prior
written notice (the “Prepayment Notice”) given to the Holder of this Note to
prepay in cash all or any portion of the outstanding principal amount of this
Note together with all accrued interest hereon and thereon without prepayment
penalty or premium of any kind.

     

    4.           Events of
Default.

     

    (i)           If
any of the events specified in this Section 4 shall occur (herein
individually referred to as an “Event of Default”)
and shall not have been cured within ten (10) Business Days after written notice
of such default has been given by the Holder to the Company, the Holder of the
Note may, so long as such condition exists, declare the entire principal and
unpaid accrued interest thereon immediately due and payable:

     

    (ii)           Default
in the payment of the principal amount of this Note when due on the Maturity
Date; or

     

    (iii)           A
breach by the Company of any material representation or warranty contained in
the Purchase Agreement; or

     

    (iv)           The
issuance of notes or evidence of indebtedness by the Company having rights
senior to this Note; provided, however, the Company shall be specifically
permitted to issue additional notes or evidences of indebtedness in the
aggregate principal amount of $2,500,000 which are of equal priority and pari passu with this Note and
all other Notes issued pursuant the Purchase Agreement (which $2,500,000 of
additional notes or obligations specifically do not include the $2,510,000 of
the 10% convertible notes issued in September 2008 or the exchange of those
notes into any other securities of the Company); or

     

    (v)           Any
(A) merger, consolidation of the Company with or into any other entity, or
the sale or all or substantially all of the assets of the Company to any other
entity, in each case where the ability to elect the members of the board of
directors of the Company or its successor in interest shall be vested in persons
who are not presently stockholders of the Company (a “Sale of Control”), or
(B) dissolution or termination of existence of the Company; or

     

     

     

    
      
        
        

      

      
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    (vi)           A
final judgment or judgments for the payment of money in excess of an aggregate
of (US) $500,000 are rendered against one or more of the Company and its
subsidiaries, which judgments are not, within sixty (60) days after entry
thereof, bonded, discharged or stayed pending appeal, or are not discharged
within sixty (60) days after the expiration of such stay; or

     

    (vii)           The
institution by the Company of proceedings to be adjudicated as bankrupt or
insolvent, or the consent by it to institution of bankruptcy or insolvency
proceedings against it or the filing by it of a petition or answer or consent
seeking reorganization or release under the federal Bankruptcy Act, or any other
applicable federal or state law, or the consent by it to the filing of any such
petition or the appointment of a receiver, liquidator, assignee, trustee or
other similar official of the Company, as applicable, or of any substantial part
of its property, or the making by it of an assignment for the benefit of
creditors, or the taking of corporate action by the Company in furtherance of
any such action; or

     

    (viii)           If,
within sixty (60) days after the commencement of an action against the Company
(and service of process in connection therewith on the Company) seeking any
bankruptcy, insolvency, reorganization, liquidation, dissolution or similar
relief under any present or future statute, law or regulation, such action shall
not have been resolved in favor of the Company, as applicable, or all orders or
proceedings thereunder affecting the operations or the business of the Company,
as applicable, stayed, or if the stay of any such order or proceeding shall
thereafter be set aside, or if, within sixty (60) days after the appointment
without the consent or acquiescence of the Company, as applicable, of any
trustee, receiver or liquidator of the Company, as applicable, or of all or any
substantial part of the properties of the Company, such appointment shall not
have been vacated; or

     

    (ix)           The
cessation of the Company’s business for more than thirty (30) days.

     

    4.2.           If
an Event of Default with respect to the Company described in paragraphs (i)
through (ix) of Section 4.1 has occurred and has not been cured, this Note shall
automatically become immediately due and payable.  Upon this Note
becoming due and payable under this Section 4, whether automatically or by
declaration (a “Default”), such Note
will forthwith mature and the entire unpaid principal amount of such Note, plus
all accrued and unpaid interest thereon shall all be immediately due and
payable, in each and every case without presentment, demand, protest or further
notice, all of which are hereby waived.  If any Default or Event of
Default has occurred and is continuing, and irrespective of whether any
Additional Notes have become or have been declared immediately due and payable,
the Holder of this Note may proceed to protect and enforce the rights of such
Holder by an action at law, suit in equity or other appropriate proceeding,
whether for the specific performance of the Purchase Agreement, the Registration
Rights Agreement or this Note, or for an injunction against a violation of any
of the terms hereof or thereof, or in aid of the exercise of any power granted
hereby or thereby or by law or otherwise.

     

     

    
      
        
        

      

      
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    5.           Treatment of
Note.  To the extent permitted by generally accepted accounting
principles, the Company will treat, account and report the Note as debt and not
equity for accounting purposes and with respect to any returns filed with
federal, state or local tax authorities.

     

    6.           No Stockholder
Rights.  Nothing contained in this Note shall be construed as
conferring upon the Holder or any other person the right to vote or to consent
or to receive notice as a stockholder in respect of meetings of stockholders for
the election of directors of the Company or any other matters or any rights
whatsoever as a stockholder of the Company.  This limitation does not
apply to or in any way restrict a Holder’s rights as a stockholder in connection
with any shares of common stock of the Company otherwise held by the
Holder.

     

    7.           Assignment.  Subject
to the restrictions on transfer described in Section 13 below, the rights
and obligations of the Company and the Holder of this Note shall be binding upon
and benefit the successors, assigns, heirs, administrators and transferees of
the parties.

     

    8.           Waiver and
Amendment.  Any provision of this Note may be amended, waived
or modified upon the written consent of the Company and the Holders of at least
a majority of the face amount of all then outstanding Notes issued pursuant to
the Purchase Agreement.

     

    9.           Transfer of This
Note.  With respect to any offer, sale or other disposition of
this Note, the Holder will give written notice to the Company prior thereto,
describing briefly the manner thereof, together with a written opinion of such
Holder’s counsel reasonably acceptable to the Company, to the effect that such
offer, sale or other distribution may be effected without registration or
qualification (under any federal or state law then in
effect).  Promptly upon receiving such written notice and reasonably
satisfactory opinion, if so requested, the Company shall notify such Holder that
such Holder may sell or otherwise dispose of this Note, all in accordance with
the terms of the notice delivered to the Company.  If a determination
has been made pursuant to this Section 13 that the opinion of counsel for
the Holder is not reasonably satisfactory to the Company, the Company shall so
notify the Holder promptly after such determination has been
made.  Each Note thus transferred and each certificate representing
the securities thus transferred shall bear a legend as to the applicable
restrictions on transferability in order to ensure compliance with the
Securities Act, unless in the opinion of counsel for the Company such legend is
not required.  The Company may issue stop transfer instructions to its
transfer agent in connection with such restrictions.

     

    10.           Notices.  Any
notice, request or other communication required or permitted hereunder shall be
in writing and shall be deemed to have been duly given on the date of service if
personally served on the party to whom such notice is to be given, on the date
of transmittal of service via telecopy to the party to whom notice is to be
given (with a confirming copy delivered within 24 hours thereafter), or on the
third day after mailing if mailed to the party to whom notice is to be given, by
first class mail, registered or certified mail, postage prepaid, or via a
recognized overnight courier providing a receipt for delivery and properly
addressed at the respective addresses of the parties as set forth
herein.  Any party hereto may by notice so given change its address
for future notice hereunder.

     

     

    
      
        
        

      

      
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    11.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, excluding that body of law
relating to conflict of laws.

     

    12.           Heading;
References.  All headings used herein are used for convenience
only and shall not be used to construe or interpret this Note.  Except
where otherwise indicated, all references herein to Sections refer to Sections
hereof.

     

    IN
WITNESS WHEREOF, the Company has caused this Note to be executed this ______ day
of ____________ 2008.

     

    
    

     

    
      	 	 AMDL,
      INC.	 
	 	 	 
	 	 	 
	 	 By:____________________________________	 
	 	 	 Akio Ariura,
      Chief Financial Officer       	 

    

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        5ex10three.htm

     

     

    
      

      

    

     

    
 

    EXCHANGE
AGREEMENT

     

    This
Exchange Agreement (this “Agreement”) is dated as of [  ] (the
“Effective Date”), by and among Radient Pharmaceuticals Corporation., a Delaware
corporation (the “Company”) with an address at 2492 Walnut Ave. Suite 100
Tustin, CA 92780-6953 and each of the Note Holders of the 12% Senior Note issued
in December 2008 and January 30, 2009 (the “Series 1 Note Holders”) and each of
the Note Holders of the 12% Series 2 Senior Promissory Note issued in May
and June 2009 (the “Series 2 Note Holders, together with the Series 1 Note
Holders, the “Note Note Holders”) whose names are set forth on Exhibit A and Exhibit B
hereto.

     

    Recitals:

     

    WHEREAS,
in December 2008 and January 2009, the Company completed two closings pursuant
to which is issued an aggregate of $1,757,500 in 12% Series 1 Senior Notes (the
“Series 1 Notes”) and Warrants to purchase up to 1,406,000 shares of common
stock (the “ Series 1 Warrants”) to the Series 1 Note Holders as set forth on
Exhibit A;

    

    WHEREAS,
the Series 1 Notes bear interest at a rate of 12% per annum, payable
semi-annually on June 1st and
December 1st of
each year after issuance (the “Senior Note Interest”);

    

    WHEREAS,
in May and June 2009, the Company completed two closings pursuant to which it
received an aggregate of $1,796,000 in 12%  Series 2 Senior Notes (the
“Series 2 Notes,” together with the Series 1 Notes, the “Notes”) and warrants to
purchase up to 2,873,200 shares (“Series 2 Warrants to the Series 2 Note Holders
as set forth on Exhibit B;

    

    WHEREAS,
the Series 2 Notes bear interest at the annual rate of 12% and all accrued
interest on the outstanding unpaid principal amount is payable quarterly on June
1st, September 1st, December 1st, and March 1st of each year after the
issuance (the “Series 2 Interest, together with the Senior Note Interest, the
“Interest Payments”);

    

     WHEREAS, subject to the
terms and conditions set forth herein, the Company and the Series 1 and Series 2
Note Holders desire to cancel and terminate the Notes in full and exchange the
indebtededness represented thereby for shares of the  Company’s common
stock, par value $0.001 per share (the “Common Stock”) and other consideration
as set forth herein.

    

     

    NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby agreed and acknowledged, the parties hereto hereby agree as
follows:

     

    AGREEMENT:

     

    1.           Cancellation of Debt in
Full.

     

    (a)           In
consideration of and in express reliance upon the representations, warranties,
covenants, terms and conditions of this Agreement, the Note Holders and the
Company agree to the payment in full of the Notes in exchange for the
following:

     

    
      	
               
      

            	
              i.

            	
              Principal.

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              a.

            	
              At
      any time on or after February 1, 2010, each Note Holder may, at its sole
      option, elect to exchange the principal amount of such Note Holder’s Note;
      provided however, that the minimum amount that may be exchanged at any one
      time shall be $10,000; and provided further, that if the principal amount
      of a Note Holder’s Note exceeds $10,000, such Note Holder may only
      exchange one-tenth (1/10th)
      of the principal amount of such person’s Note in any one month thereafter
      (each, an “Exchange”).

            

    

     

    
      	
               
      

            	
              b.

            	
              Upon
      the exchange of any Principal into shares of Common Stock (the “Principal
      Shares”), the number of shares of Common Stock to be issued to the Note
      Holder shall be an amount equal to the quotient of: the amount of
      principal sought to be exchanged divided by seventy percent (70%) of the
      VWAP (as defined below) for the five (5) trading days immediately
      preceding the date of the exchange request, in the form attached hereto as
      Exhibit C, (the “Exchange Notice”); provided however,  in no
      event shall the exchange price be less than $0.28 (the “Principal Exchange
      Price”).

            

    

     

    
      	
               
      

            	
              c.

            	
              In
      order to effect a Exchange, a Note Holder shall fax (or otherwise deliver)
      a copy, and confirm the Company’s receipt of same the next business day,
      of the fully executed Exchange Notice to the Company (Attention:
      Secretary).  Upon the Company’s receipt, the Company (itself, or
      through its transfer agent, as appropriate) shall, no later than the fifth
      (5th) Business Day following the Exchange Date (the "Delivery
      Period"), issue and deliver (i e., deposit with a nationally
      recognized overnight courier service portage prepaid) to the Note Holder
      or its nominee (x) that number of shares of Common Stock issuable upon
      exchange of such Note and (y) a new note representing the amount of
      principal not being exchanged, if any.  Notwithstanding the
      foregoing, the Note Holder shall, for all purposes, be deemed to be a
      record owner of that number of shares of Common Stock issuable upon
      exchange of the Note set forth in the Exchange Notice as at the date of
      such Exchange Notice.  In addition, if the Corporation's
      transfer agent is participating in the Depository Trust Corporation
      ("DTC")
      Fast Automated Securities Transfer program, and so long as the
      certificates therefor do not bear a legend and the Note Holder thereof is
      not then required to return such certificate for the placement of a legend
      thereon, the Company shall cause its transfer agent to promptly
      electronically transmit the Common Stock issuable upon exchange to the
      Note Holder by crediting the account of the Note Holder or its nominee
      with DTC through its Deposit Withdrawal Agent Commission system ("DTC
      Transfer").  If the aforementioned conditions to a DTC
      Transfer are not satisfied, the Company shall deliver as provided above to
      the Note Holder physical certificates representing the Common Stock
      issuable upon exchange. Further, a Holder may instruct the Company to
      deliver to the Note Holder physical certificates representing the Common
      Stock issuable upon exchange in lieu of delivering such shares by way of
      DTC Transfer.

            

    

     

     

     

    
      
        
        

      

      
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              d.

            	
              If
      any principal remains after the Exchange Notice, the Company may, at its
      sole option, elect to pay such balance in
cash.

            

    

     

    
      	
               
      

            	
              ii.

            	
              Interest.

            

    

     

    
      	
               
      

            	
              a.

            	
              Beginning
      with the December 1, 2009 interest payment owed on the Series 1 and Series
      2 Note, all interest shall have accrued and continue to accrue at the rate
      of 18% per annum (“Interest
Payments”);

            

    

     

    
      	
               
      

            	
              b.

            	
              The
      Company maintains the right to pay any and all Interest, at its sole
      option, in shares of Company Common Stock or in cash (the “Interest Share
      Right”).  The Interest Share Right shall apply to all interest
      due between December 1, 2009 through and including June 30, 2010 (the
      “Interest Share Right Period);

            

    

     

    
      	
               
      

            	
              c.

            	
              Upon
      the payment of any Interest in shares of Common Stock (the “Interest
      Shares”), the number of shares of Common Stock to be issued to the Note
      Holder shall be an amount equal to the quotient of: the amount of interest
      sought to be exchanged divided by $0.28 (the “Interest Exchange Price,”
      together with the Principal Exchange Price, the “Exchange
      Price”);

            

    

     

    
      	
               
      

            	
              d.

            	
              Any
      interest due after the Interest Share Period, shall be paid in cash if the
      market price of the Company’s common stock on the date interest is due on
      the dates set forth in the Notes is below $0.28 per share; if however, the
      market price of the Company’s common stock on such date is equal to or
      above $0.28 per share, the Company maintains the right to pay such
      interest in shares of its common stock at the Principal Exchange
      Price;

            

    

     

     

     

     

     

    
      
        
        

      

      
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              e.

            	
              The
      Company shall file a registration statement on Form S-3 (or if the Company
      is not then eligible to register such shares on Form S-3 such registration
      shall be on another appropriate form in accordance herewith) (the
      “Registration Statement”) as soon as practicable to register all shares of
      Common Stock that can be issued if all interest due during the Interest
      Share Right Period is paid in shares of common stock at the Interest
      Exchange Price.  Any shares of common stock issued pursuant to
      Section 1(a)(ii)(d) shall have piggy back registration
      rights.  The Company also agrees to issue a blanket opinion to
      its transfer agent regarding all such shares of common stock issued
      pursuant to this Agreement once the related registration statement is
      declared effective.

            

    

     

    
      	
               
      

            	
              f.

            	
              The
      Company shall issue and deliver the Interest Shares to the Note Holder as
      soon as possible after the date of this Agreement, but in no event more
      than five (5) business days after such date. The Company shall deliver all
      other shares issued pursuant to this Agreement within five (5) business
      days after the date such shares are calculated pursuant to the terms
      stated herein.

            

    

     

    
      	
               
      

            	
              iii.

            	
              The
      exercise price of the Series 1Warrants and the Series 2 Warrants shall
      each be adjusted to $0.28 per share, and there shall be no other changes
      to any of the other terms or conditions of the Series 1 Warrants or Series
      2 Warrants (the “Warrant Adjustment”) (the shares of common stock
      underlying the Warrants, the “Warrant Shares,” together with the Principal
      Shares and the Interest Shares, the
  “Securities”).

            

    

     

    
      	
               
      

            	
              iv.

            	
              VWAP means a fraction,
      the numerator of which is the sum of the product of (i) the closing
      trading price for the Common Stock on the applicable National Securities
      Exchange for each Trading Day during such five day period and (ii) the
      volume of the Common Stock on the applicable National Securities Exchange
      for each such day, and the denominator of which is the total volume of the
      Common Stock on the applicable National Securities Exchange during such
      five day period, each as reported by Bloomberg Reporting Service or other
      recognized stock market price reporting
service.

            

    

     

    
      	
               
      

            	
              v.

            	
              Trading Day means a day
      on which any of the following markets or exchanges on which the Common
      Stock is listed or quoted for trading on the date in question: the NYSE
      AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq
      Global Select Market, the New York Stock Exchange or the OTC Bulletin
      Board (or any successors to any of the foregoing), is open for
      trading.

            

    

     

     

     

    
      
        
        

      

      
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    (b)           By
executing this Agreement, the Note Holder waives all defaults under his/her Note
unless, and only unless the Company fails to pay or issue any principal or
interest pursuant to the terms of this Agreement or if the Company does not
receive Shareholder Approval (as hereinafter defined) on or before the Final
Meeting (as hereinafter defined);

     

    (c)           The
closing under this Agreement (the “Closing”) shall take
place at the offices of Leser Hunter Taubman & Taubman, 17 State Street,
Suite 2000, New York, New York 1004 upon the satisfaction of each of the
conditions set forth in Sections 4 and 5 hereof (the “Closing
Date”).  At the Closing, the Company shall issue to the Note
Holders the shares of Common Stock.

     

    2.           Representations,
Warranties and Covenants of the Note Holders.  Each Note Holders
hereby makes the following representations and warranties to the Company, and
covenants for the benefit of the Company:

     

    (a)           This
Agreement has been duly authorized, validly executed and delivered by Note
Holders and is a valid and binding agreement and obligation of the Note Holders
enforceable against the Note Holders in accordance with its terms, subject to
limitations on enforcement by general principles of equity and by bankruptcy or
other laws affecting the enforcement of creditors’ rights generally, and Note
Holders has full power and authority to execute and deliver the Agreement and
the other agreements and documents contemplated hereby and to perform its
obligations hereunder and thereunder.

     

    (b)           Each
Note Holder understands that the Securities are being offered and sold to it in
reliance on specific provisions of Federal and state securities laws and that
the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of Note Holders set
forth herein for purposes of qualifying for exemptions from registration under
the Securities Act of 1933, as amended (the “Securities Act”) and
applicable state securities laws. Note Holders understands that no United States
federal or state agency or any government or governmental agency has passed upon
or made any recommendation or endorsement of the Securities. Further, Each Note
Holder understands and acknowledges that the shares of Common Stock issuable
upon the exchange contemplated hereby are not registered under the Securities
Act and will bear the following legend:

     

    “THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), NOR QUALIFIED UNDER ANY APPLICABLE STATE SECURITIES LAWS AND
MAY NOT BE PLEDGED, SOLD, ASSIGNED OR TRANSFERRED UNLESS (I) A REGISTRATION
STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAW REQUIREMENTS HAVE BEEN MET OR (II) RADIENT
PHARMACEUTICALS CO., INC. RECEIVES AN OPINION OF COUNSEL REASONABLY ACCEPTABLE
TO RADIENT PHARMACEUTICALS CO., INC. THAT EXEMPTIONS FROM THE REGISTRATION
REQUIREMENTS UNDER THE SECURITIES ACT AND THE REGISTRATION OR QUALIFICATION
REQUIREMENTS OF APPLICABLE STATE SECURITIES LAWS ARE AVAILABLE.”

     

     

     

    
      
        
        

      

      
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    (c)           Each
Note Holder understands that the shares of Common Stock issuable pursuant to
this Agreement are not liquid and are transferable only under limited
conditions.  Each Note Holder acknowledges that such securities must
be held indefinitely unless they are subsequently registered under the
Securities Act or an exemption from such registration is
available.  Each Note Holder is aware of the provisions of
Rule 144 promulgated under the Securities Act, which permits limited resale
of restricted securities subject to the satisfaction of certain conditions and
that such Rule is not now available and, in the future, may not become available
for resale of the shares of Common Stock issuable hereunder.

     

    (d)           Each
Note Holder is an “accredited investor” (as defined in Rule 501 of Regulation
D), and each Note Holder has such experience in business and financial matters
that it is capable of evaluating the merits and risks of an investment in the
Securities.  None of the Note Holders are required to be registered as
a broker-dealer under Section 15 of the Securities Exchange Act of 1934, as
amended, and none of the Note Holders are a broker-dealer.  Each Note
Holder acknowledges that an investment in the Securities is speculative and
involves a high degree of risk.

     

    (e)           Each
Note Holder is acquiring the Securities solely for its own account and not with
a view to or for sale in connection with distribution.  None of the
Note Holders have any present intention to sell any of the Securities, nor a
present arrangement (whether or not legally binding) or intention to effect any
distribution of any of the Securities to or through any person or entity;
provided, however, that by making the representations herein, none of the Note
Holders agree to hold the Securities for any minimum or other specific term and
reserves the right to dispose of the Securities at any time in accordance with
Federal and state securities laws applicable to such
disposition.  Each Note Holder acknowledges that it (i) has such
knowledge and experience in financial and business matters such that Note Holder
is capable of evaluating the merits and risks of Note Holders' investment in the
Company, (ii) is able to bear the financial risks associated with an investment
in the Securities and (iii) has been given full access to such records of the
Company and its subsidiaries and to the officers of the Company and the
subsidiaries as it has deemed necessary or appropriate to conduct its due
diligence investigation.

     

    (f)           The
offer and sale of the Securities is intended to be exempt from registration
under the Securities Act, by virtue of Sections 3(a)(9) and 4(2)
thereof.  Each Note Holder understands that the Securities purchased
hereunder have not been, and may never be, registered under the Securities Act
and that none of the Securities can be sold or transferred unless they are first
registered under the Securities Act and such state and other securities laws as
may be applicable or the Company receives an opinion of counsel reasonably
acceptable to the Company that an exemption from registration under the
Securities Act is available (and then the Securities may be sold or transferred
only in compliance with such exemption and all applicable state and other
securities laws).  Each Note Holder acknowledges that it is familiar
with Rule 144 of the rules and regulations of the Commission, as amended,
promulgated pursuant to the Securities Act ("Rule 144"), and that
each Note Holder has been advised that Rule 144 permits resales only under
certain circumstances.  Each Note Holder understands that to the
extent that Rule 144 is not available, the Note Holders will be unable to sell
any Securities without either registration under the Securities Act or the
existence of another exemption from such registration requirement.

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (g)           The
Note Holders have not employed any broker or finder or incurred any liability
for any brokerage or investment banking fees, commissions, finders’ structuring
fees, financial advisory fees or other similar fees in connection with any of
the transactions contemplated by this Agreement and no person is receiving any
remuneration with respect to the transactions contemplated hereby.

     

    (h)           Each
Note Holder acknowledges that the Securities were not offered to the Note
Holders by means of any form of general or public solicitation or general
advertising, or publicly disseminated advertisements or sales literature,
including (i) any advertisement, article, notice or other communication
published in any newspaper, magazine, or similar media, or broadcast over
television or radio, or (ii) any seminar or meeting to which the Note Holders
was invited by any of the foregoing means of communications.  Each
Note Holder, in making the decision to purchase the Securities, has relied upon
independent investigation made by it and the representations, warranties and
agreements set forth in this Agreement and the other transaction documents and
has not relied on any information or representations made by third
parties.

     

    (i)           
Each Note Holder has relied on its own counsel and/or tax advisors regarding the
state and federal income tax consequences of the exchange and cancellation of
indebtedness under this Agreement.

     

    

    3.           Representations,
Warranties and Covenants of the Company.  The Company
represents and warrants to Note Holders, and covenants for the benefit of Note
Holders, as follows:

     

    (a)           Other
than as disclosed in the Company’s forms or reports filed with the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as amended,
prior to the Effective Date, the  Company has been duly incorporated
and is validly existing and in good standing under the laws of the State of
Delaware, with full corporate power and authority to own, lease and operate its
properties and to conduct its business as currently conducted, and is duly
registered and qualified to conduct its business and is in good standing in each
jurisdiction or place where the nature of its properties or the conduct of its
business requires such registration or qualification, except where the failure
to register or qualify would not have a Material Adverse Effect.  For
purposes of this Agreement, “Material Adverse
Effect” shall mean (i) any event affecting the business, results of
operations, prospects, assets or financial condition of the Company or its
subsidiaries that is material and adverse to the Company and its consolidated
subsidiaries, when taken as a whole, and/or (ii) any condition, circumstance, or
situation that would prohibit or otherwise materially interfere with the ability
of the Company from entering into and performing any of its obligations under
this Agreement in any material respect.

     

    (b)           The
Securities have been duly authorized by all necessary corporate action and, when
paid for or issued in accordance with the terms hereof, the Securities shall be
validly issued and outstanding, fully paid and nonassessable, free and clear of
all liens, encumbrances and rights of refusal of any kind.

     

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (c)           This
Agreement has been duly authorized, validly executed and delivered on behalf of
the Company and is a valid and binding agreement and obligation of the Company
enforceable against the Company in accordance with its terms, subject to
limitations on enforcement by general principles of equity and by bankruptcy or
other laws affecting the enforcement of creditors’ rights generally, and the
Company has full power and authority to execute and deliver the Agreement and
the other agreements and documents contemplated hereby and to perform its
obligations hereunder and thereunder.

     

    (d)           The
execution and delivery of the Agreement and the consummation of the transactions
contemplated by this Agreement by the Company, will not (i) conflict with or
result in a breach of or a default under any of the terms or provisions of, (A)
the Company’s articles of incorporation or by-laws, or (B) of any material
provision of any indenture, mortgage, deed of trust or other material agreement
or instrument to which the Company is a party or by which it or any of its
material properties or assets is bound, (ii) result in a violation of any
provision of any law, statute, rule, regulation, or any existing applicable
decree, judgment or order by any court, Federal or state regulatory body,
administrative agency, or other governmental body having jurisdiction over the
Company, or any of its material properties or assets or (iii) result in the
creation or imposition of any material lien, charge or encumbrance upon any
material property or assets of the Company or any of its subsidiaries pursuant
to the terms of any agreement or instrument to which any of them is a party or
by which any of them may be bound or to which any of their property or any of
them is subject except in the case of clauses (i)(B), (ii) or (iii) of this
Section 3(d) for any such conflicts, breaches, or defaults or any liens,
charges, or encumbrances which would not have a Material Adverse
Effect.

     

    (e)           The
delivery and issuance of the Securities in accordance with the terms of and in
reliance on the accuracy of each Note Holders’s representations and warranties
set forth in this Agreement will be exempt from the registration requirements of
the Securities Act.

     

    (f)           
No consent, approval or authorization of or designation, declaration or filing
with any governmental authority on the part of the Company is required in
connection with the valid execution and delivery of this Agreement or the offer,
sale or issuance of the Securities or the consummation of any other transaction
contemplated by this Agreement (other than any filings which may be required to
be made by the Company with the Secretary of State of Delaware or the Securities
and Exchange Commission (the “Commission”) or
pursuant to any state or “blue sky” securities laws subsequent to the
Closing).

     

    (g)           There
is no action, suit, claim, investigation or proceeding pending or, to the
knowledge of the Company, threatened against the Company which questions the
validity of this Agreement or the transactions contemplated hereby or any action
taken or to be taken pursuant thereto.  There is no action, suit,
claim, investigation or proceeding pending or, to the knowledge of the Company,
threatened, against or involving the Company or any subsidiary, or any of their
respective properties or assets which, if adversely determined, is reasonably
likely to result in a Material Adverse Effect.

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (h)           The
Company has complied and will comply with all applicable federal and state
securities laws in connection with the offer, issuance and delivery of the
Securities hereunder.  Neither the Company nor anyone acting on its
behalf, directly or indirectly, has or will sell, offer to sell or solicit
offers to buy any of the Securities, or similar securities to, or solicit offers
with respect thereto from, or enter into any preliminary conversations or
negotiations relating thereto with, any person, or has taken or will take any
action so as to bring the issuance and sale of any of the Securities under the
registration provisions of the Securities Act and applicable state securities
laws.  Neither the Company nor any of its affiliates, nor any person
acting on its or their behalf, has engaged in any form of general solicitation
or general advertising (within the meaning of Regulation D under the Securities
Act) in connection with the offer or sale of any of the Securities.

     

    (i)           The
Company has not employed any broker or finder or incurred any liability for any
brokerage or investment banking fees, commissions, finders’ structuring fees,
financial advisory fees or other similar fees in connection with any of the
transactions contemplated by this Agreement.

     

                                      
(j)           The Company
acknowledges that the obligations of each Note Holder under this Agreement are
several and not joint with the obligations of any other Note Holder, and no Note
Holder shall be responsible in any way for the performance of the obligations of
any other Note Holder under this Agreement.  The Company acknowledges
that the decision of each Note Holder to exchange the Note pursuant to this
Agreement has been made by such Note Holder independently of any other purchase
and independently of any information, materials, statements or opinions as to
the business, affairs, operations, assets, properties, liabilities, results of
operations, condition (financial or otherwise) or prospects of the Company or of
its Subsidiaries which may have made or given by any other Note Holder or by any
agent or employee of any other Note Holder, and no Note Holder or any of its
agents or employees shall have any liability to any Note Holder (or any other
person) relating to or arising from any such information, materials, statements
or opinions.  The Company acknowledges that nothing contained herein,
and no action taken by any Note Holder pursuant hereto, shall be deemed to
constitute the Note Holders as a partnership, an association, a joint venture or
any other kind of entity, or create a presumption that the Note Holders are in
any way acting in concert or as a group with respect to such
obligations.  The Company acknowledges that each Note Holder shall be
entitled to independently protect and enforce its rights, including without
limitation, the rights arising out of this Agreement and it shall not be
necessary for any other Note Holder to be joined as an additional party in any
proceeding for such purpose.  The Company acknowledges that it has
elected to provide all Note Holders with the same terms for the convenience of
the Company and not because it was required or requested to do so by the Note
Holders.  The Company acknowledges that such procedure in no way
creates a presumption that the Note Holders are in any way acting in concert or
as a group with respect to the transactions contemplated hereby.

     

    4.           Conditions
Precedent to the Obligation of the Company to Issue the Common
Stock.  The obligation hereunder of the Company to issue and
deliver the Common Stock to the Note Holders is subject to the satisfaction or
waiver, at or before the Closing Date, of each of the conditions set forth
below.  These conditions are for the Company’s sole benefit and may be
waived by the Company at any time in its sole discretion.

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (a)           The
Note Holders shall have executed and delivered this Agreement.

     

    (b)           Each
of the representations and warranties of the Note Holders in this Agreement
shall be true and correct in all material respects (except for those
representations and warranties that are qualified by materiality or Material
Adverse Effect, which shall be true and correct in all respects) as of the date
when made and as of the Closing Date as though made at that time, except for
representations and warranties that are expressly made as of a particular date,
which shall be true and correct in all material respects (except for those
representations and warranties that are qualified by materiality or Material
Adverse Effect, which shall be true and correct in all respects) as of such
date.

     

    (c)           The
Company’s Board of Directors and stockholders shall have authorized and approved
the issuance of the Securities pursuant to the terms and conditions set forth in
this Agreement (the “Shareholder Approval”).  The Company shall seek
Shareholder Approval pursuant to a Definitive Information Statement on Schedule
14A that the Company shall file with the Securities and Exchange Commission no
later than March 17, 2010 and hold the related special shareholder meeting no
later than May 7, 2010 (the “Initial Meeting”).  If Shareholder
Approval is not received at the Initial Meeting, the Company may seek to obtain
it at a second scheduled special shareholder meeting, which shall not be held
later than September 15, 2010 (the “Final Meeting”).  If, and only if,
the Company does not receive Shareholder Approval on or before the Final
Meeting, then the Company shall once again be in default of the Series 1 and
Series 2 Notes and this Agreement shall not be of any further force or
effect.

     

    (d)           The
Company shall have obtained the written approval of the NYSE AMEX for the
listing of the Securities.

     

    

     

    5.                          Fees and
Expenses.  Each party shall pay the fees and expenses of its
advisors, counsel, accountants and other experts, if any, and all other
expenses, incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement.

     

    6.                          Governing
Law; Consent to Jurisdiction.  This Agreement
shall be governed by and construed in accordance with the laws of and in the
State of New Jersey.  Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by binding
arbitration.  The arbitration will be conducted in accordance with the
rules of the American Arbitration Association (the “AAA”) then in effect (“AAA
Rules”) and the procedures in this document.  In the event of a
conflict, the provisions of this document will control.  The
arbitration will be conducted before a single arbitrator, and in accordance with
the expedited arbitration procedures of the AAA regardless of the size of the
dispute.  Any issue concerning the extent to which any dispute is
subject to arbitration, or concerning the applicability, interpretation, or
enforceability of these procedures, including any contention that all or part of
these procedures are invalid or unenforceable, shall be governed by the Federal
Arbitration Act and resolved by the arbitrator.  Unless provided
otherwise in this Agreement, the arbitrators may not award damages inconsistent
with the Agreement or punitive damages or any other damages not measured by the
prevailing party's actual damages, and the parties expressly waive their right
to obtain such damages in arbitration. In no event, even if any other portion of
these provisions is held to be invalid or unenforceable, shall the arbitrators
have power to make an award or impose a remedy that could not be made or imposed
by a court deciding the matter in the same jurisdiction.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

    7.                         Notices.  All notices and
other communications provided for or permitted hereunder shall be made in
writing by hand delivery, express overnight courier, registered first class
mail, or telecopier (provided that any notice sent by telecopier shall be
confirmed by other means pursuant to this Section 10), initially to the address
set forth below, and thereafter at such other address, notice of which is given
in accordance with the provisions of this Section.

     

    (a)           if
to the Company:

     

    
      	 	
              Radient
      Pharmaceuticals Corp.

              2492
      Walnut Ave., Suite 100

              Tustin,
      CA 92780-6953

              Attn:
      Douglas C. MacLellan

              Tel.
      No.: 714.505.4460

              Fax
      No.: 714.505.4464

               

              With
      a copy to, which shall not constitute notice:

               

              Leser,
      Hunter, Taubman and Taubman

              17
      State Street, Floor 20

              New
      York, NY 10004

              Attn:
      Louis E. Taubman

              Tel.
      No.: (212) 732-7184

              Fax
      No.: (212) 202-6380

            

    

     

    (b)           if
to the Note Holders:

     

                             At
the address set forth above on Exhibit A and Exhibit B attached
hereto.

     

    All such
notices and communications shall be deemed to have been duly given: when
delivered by hand, if personally delivered; when receipt is acknowledged, if
telecopied; or when actually received or refused if sent by other
means.

     

    8.           Entire
Agreement.  This Agreement,
constitutes the entire understanding and agreement of the parties with respect
to the subject matter hereof and supersedes all prior and/or contemporaneous
oral or written proposals or agreements relating thereto all of which are merged
herein.  This Agreement may not be amended or any provision hereof
waived in whole or in part, except by a written amendment signed by both of the
parties.

     

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

                          
9.          Counterparts.  This Agreement
may be executed by facsimile signature and in counterparts, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

     

    
 

    IN
WITNESS WHEREOF, this Agreement was duly executed on the date first written
above.

     

    
      	 	
              RADIENT
      PHARAMCEUTICALS CORPORATION

            
	 	
              By:______________________________________

              Name:

              Title:

            
	 	
              NOTE
      HOLDER:

               

            
	 	
              By:_____________________________________

              Name:

              Title:

            

    

    

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Exhibit
A

    Series 1 Note
Holders

    

    
      	
              Note Holder Name and
Address

            	
              Amount of Note

            	
              Amount of Common Stock to be issued in Exchange
      for the Note

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    Exhibit
B

    Series 2 Note
Holders

    

    
      	
              Note Holder Name and
Address

            	
              Amount of Note

            	
              Amount of Common Stock to be issued in Exchange
      for the Note

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      

    

    

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    NOTICE OF
EXCHANGE

    

    (To be
Executed by the Registered Holder

    in order
to Exchange the Note)

    

    The
undersigned hereby irrevocably elects to exchange $_________ of the principal
amount of its Series __ Note (the "Exchange"), into shares of common stock
("Common Stock") of Radient Pharmaceutical Co., Inc. (the "Corporation")
according to the conditions of the Exchange Agreement (“Exchange Agreement”), as
of the date written below.   If securities are to be issued in
the name of a person other than the undersigned, the undersigned will pay all
transfer taxes payable with respect thereto.  No fee will be charged
to the Note Holder for any exchange, except for transfer taxes, if
any.

    

    Except as
may be provided below, the Corporation shall electronically transmit the Common
Stock issuable pursuant to this Exchange Notice to the account of the
undersigned or its nominee (which is  ________________________) with
DTC through its Deposit Withdrawal Agent Commission System ("DTC
Transfer").  In the event of partial exchange, please reissue a new
note for the amount of principal which shall not have been
exchanged.

    

    The
undersigned acknowledges and agrees that all offers and sales by the undersigned
of the securities issuable to the undersigned upon exchange of Series ___ Note
have been or will be made only pursuant to an effective registration of the
transfer of the Common Stock under the Securities Act of 1933, as amended (the
"Act"), or pursuant to an exemption from registration under the Act

    

    In lieu
of receiving the shares of Common Stock issuable pursuant to this Exchange
Notice by way of DTC Transfer, the undersigned hereby requests that the
Corporation issue and deliver to the undersigned physical certificates
representing such shares of Common Stock to the address listed
below.

    

    

    Date of
Exchange:

    

    

    Signature:

    Name:

    Address
for mailing physical certificate:

    

    

    
      
         

      

      
        16

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