Document:

Exhibit 10.4

 

FIRST
AMENDMENT TO EMPLOYMENT AGREEMENT

 

This FIRST AMENDMENT TO EMPLOYMENT AGREEMENT
(this “Amendment”) is entered into as of this 10th day of March, 2006 by
and between Advanced Life Sciences, Inc., an Illinois corporation (“ALS”),
and R. Richard Wieland, II (the “Executive”) to amend the terms of that
certain Employment Agreement dated April 11, 2005 between ALS and the Executive
(the “Agreement”).

 

WHEREAS, ALS and the Executive entered into
the Agreement on April 11, 2005;

 

WHEREAS, the parties wish to amend the
Agreement as provided herein.

 

NOW, THEREFORE, in consideration of the
foregoing recitals, the parties hereto, intending to be legally bound, agree as
follows:

 

1.     Incorporation
of the Agreement. All capitalized terms which are not defined herein shall
have the same meanings as set forth in the Agreement, and the Agreement, to the
extent not inconsistent with this Amendment, is incorporated herein by this
reference as though the same was set forth in its entirety. To the extent any terms
and provisions of the Agreement are inconsistent with the amendments set forth
in Paragraph 2 below, such terms and provisions shall be deemed superseded
hereby. Except as specifically set forth herein, the Agreement shall remain in
full force and effect and its provisions shall be binding on the parties
hereto.

 

2.               Amendment of
the Agreement. The Agreement is hereby amended as
follows:

 

a.               Section 4(a) of the
Agreement shall be deleted in its entirety and replaced with the following
language:

 

“Salary. The Company shall pay to the
Executive an annual base salary of $190,000 (“Base Salary”), payable in
substantially equal installments no less frequently than monthly in accordance
with the Company’s applicable payroll practices. The amount of Base Salary
shall be reviewed annually by the Chief Executive Officer to determine whether
to increase the Base Salary on a prospective basis and may be increased by the
Compensation Committee of the Board without amendment to the Agreement. The
Executive’s Base Salary shall not be reduced after any increase, without the
Executive’s consent.”

 

b.              Section 4(b) of the
Agreement shall be deleted in its entirety and replaced with the following
language:

 

“Bonus. The Executive shall be
eligible to participate throughout the Term in the Company’s annual bonus plan or
any similar or successor bonus plan (“Bonus Plan”) in accordance with
the Company’s compensation practices and the terms and provisions of the Bonus
Plan. During the 2006 fiscal year of the Company, the maximum bonus that the
Executive may receive is $48,000. The maximum bonus amount shall be reviewed
annually by the Chief Executive Officer to determine whether to increase the
maximum bonus amount on a prospective basis and may be increased by the
Compensation Committee of the Board without amendment to the Agreement.”

 

3.               Effectuation. Except as
amended by this Amendment, the provisions of the Agreement shall continue for
all purposes without interruption and the Agreement shall remain in full force
and 

 

 

effect. The amendment to the Agreement
contemplated by this Amendment shall be deemed effective as of March 10, 2006.

 

4.               Counterparts. This
Amendment may be executed in two or more counterparts, each of which shall be
deemed to be an original, but all of which together shall constitute one and
the same instrument.

 

[Signature
Page Follows]

 

 

[Signature
Page to First Amendment to Employment Agreement]

 

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

 

 

	
  EXECUTIVE

  	
  ADVANCED LIFE SCIENCES, INC.

  
	
   

  	
   

  
	
  By

  	
  : /s/ Richard Wieland

  	
   

  	
  By

  	
  : /s/ John L. Flavin

  	
   

  
	
  Name: R. Richard Wieland, II

  	
  Name:

  	
  John L. Flavin

  
	
   

  	
  Title:

  	
  President

  
							

 

 

Employment Agreement

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) made effective as of the
11th  day of April 2005(the “Effective
Date”), by and between Advanced Life Sciences, Inc., an Illinois corporation
(the “Company”), and R. Richard Wieland, II (the “Executive”).

 

WHEREAS,
the Company and the Executive previously entered into an employment contract
(the “Existing Employment Contract”); and

 

WHEREAS,
the Company and the Executive desire to enter into this Agreement, effective as
of the Effective Date, to replace the Existing Employment Contract; and

 

WHEREAS, the Company desires to employ the Executive in accordance with
the terms and conditions hereinafter set forth and the Executive desires to be
so employed; and

 

WHEREAS, the Company has agreed with the Executive that this Agreement
shall set forth the terms and conditions of the Executive’s employment with the
Company;

 

NOW, THEREFORE, in consideration of the mutual covenants contained
herein, the Company and the Executive agree as follows:

 

1.             Term.
The employment of the Executive by the Company pursuant to this Agreement shall
begin as of the Effective Date and shall expire on the third anniversary of the
Effective Date (the “Term”), unless extended, as set forth below, or otherwise
terminated pursuant to the provisions of this Agreement; provided, however,
that commencing on the third anniversary of the Effective Date and on each
anniversary thereafter, the Term of this Agreement shall automatically be
extended for one additional year unless, not later than 90 days prior to such
anniversary, the Executive or the Company shall have given notice in writing
that he or it does not wish to extend this Agreement.

 

2.             Position
and Duties. The Executive shall serve as the Executive Vice President and
Chief Financial Officer of the Company, and shall have such responsibilities,
duties and authority as are assigned by the Chief Executive Officer of the
Company and are customarily associated with such position,
including but not limited to, those he may have as of the Effective Date. The
Executive shall report to the Chief Executive Officer of the Company. The
Executive shall devote such time to the performance of his duties as is
necessary to satisfactorily perform his responsibilities and duties.

 

3.             Place
of Performance. In connection with the Executive’s employment by the
Company, the Executive shall be based at the principal executive offices of the
Company currently in Woodridge, Illinois, except for
required travel on the Company’s business.

 

4.             Compensation
and Related Matters. During the Term of the Executive’s employment, as
compensation and consideration for the performance by the Executive of the
Executive’s duties, responsibilities and covenants pursuant to this Agreement,
the Company shall pay the Executive and the
Executive agrees to accept in full payment for such performance the amounts and
benefits set forth below.

 

(a)           Salary.
The Company shall pay to the Executive an annual base salary of $140,000 (“Base
Salary”), payable in substantially equal installments no less frequently than
monthly in accordance with the Company’s applicable payroll practices. The
amount of Base Salary shall be reviewed annually by the Chief Executive Officer
(with the first review to occur prior to the first anniversary of the Effective
Date) to determine whether to increase the Base 

 

 

Salary
on a prospective basis. The Executive’s Base Salary shall not be reduced after
any increase, without the Executive’s consent.

 

(b)           Bonus. The Executive shall be
eligible to participate throughout the Term in the Company’s annual bonus plan or
any similar or successor bonus plan (“Bonus Plan”)
in accordance with the Company’s compensation practices and the terms and
provisions of the Bonus Plan. During the 2005
fiscal year of the Company, if the Executive achieves a financing milestone
event as may be established in the Bonus Plan, the Executive’s Base Salary
shall increase up to a maximum annual Base Salary of $180,000 and the Severance
Period (as defined in Section 6(d) of this Agreement) shall increase to twelve
(12) months concurrent with the achievement of such a financing milestone event.
Further and in addition to any increase in Base Salary, during the 2005 fiscal
year of the Company, the Executive is eligible for up to a maximum bonus that
the Executive may receive under the Bonus Plan is $175,000.

 

(c)           Stock Incentive
Plan. As of the Effective Date, the Executive shall
be shall
be eligible to receive additional awards of the Company’s
common stock under the Stock Incentive Plan or under any other equity plan of
the Company as determined by the Board of Directors of the
Company (the “Board”) in its discretion.

 

(d)           Other
Benefits and Perquisites. During the Term of the Executive’s employment
hereunder:

 

(i)    Benefit
Plans. The Executive shall be entitled to participate in or receive
benefits under any employee pension or welfare benefit plan
or arrangement made available by the Company at any time during his employment
hereunder to its employees (collectively the “Benefit Plans”), including
without limitation each qualified retirement plan, life insurance and accident
plan, medical, dental insurance plans, and disability plan, subject to and on a
basis consistent with the terms, conditions and overall administration of such
plans and arrangements, as they may be amended from time to time.

(ii)   Vacation.
The Executive shall be entitled to not less than 25 days of paid vacation in
each calendar year, in accordance with the Company’s vacation policy.

(iii)          Expense Reimbursement. The
Executive shall be entitled to receive reimbursement for all reasonable
business, travel or other out-of-pocket expenses incurred by the Executive in
fulfilling the Executive’s duties and responsibilities hereunder, provided that
such expenses are incurred and accounted for in accordance with the policies
and procedures established by the Company. Additionally, the Company will
reimburse the Executive upon expense receipt submission, the annual expenses of
membership in two (2) financial groups and the annual costs of a health club
membership and physical examination up to an amount of $2,000 of total expenses
per year.

 

5.             Termination.

 

(a)           The Executive’s employment hereunder may be terminated
under the following circumstances:

 

(i)            The
death of the Executive;

 

(ii)           By
the Company for “Cause”, which shall mean any of the following:, as
determined by the Board in its discretion:  (A) conviction of or plea of guilty or nolo contendere to any criminal violation
involving dishonesty or fraud; (B) engagement in 

 

 

conduct
that is injurious to the Company; (C) engagement in any act of dishonesty or
misconduct that results in damage to the Company or its business or reputation
or that the Board determines to adversely affect the value, reliability or performance of
the Executive to the Company; (D) refusal or failure to
substantially comply with the Company’s human resources rules, policies,
directions and/or restrictions relating to harassment and/or discrimination, or
with compliance or risk management rules, policies, directions and/or
restrictions; (E) unauthorized use or disclosure of Confidential
Information (as defined below) or other trade secrets of
the Company; (F) loss of any license or registration that is
necessary for the Executive to perform his duties to the Company, or commission
of any act that could result in the legal disqualification of the Executive
from being employed by the Company or any of its affiliates; (G) failure to
cooperate with the Company or any of its affiliates in any internal
investigation or administrative, regulatory or judicial proceeding; or (H)
continuous failure by the Executive to perform his duties to the Company (which
may include any sustained and unexcused absence of the Executive from the
performance of such duties, which absence has not been certified in writing as
due to physical or mental illness or disability), after a written demand for
performance has been delivered to the Executive identifying the manner in which
the Executive has failed to substantially perform such duties. The application
of any part of the definition of Cause set forth in clauses (A) through (H)
above to the Executive shall not preclude or prevent the reliance by the
Company or the Board on any other part of the definition that also may be
applicable. In addition, the Executive’s employment shall be deemed to have
terminated for Cause if, after the Executive’s employment has terminated, facts
and circumstances are discovered that would have justified a termination for
Cause.

 

(iii)          By
mutual agreement between the Company and the Executive; or

 

(iv)          By the Executive or the Company for
any reason other than as stated in Sections 5(a)(i) through 5(a)(iii) above,
upon providing a Notice of Termination (as defined in Section 5(b)).

 

(b)           Notice
of Termination. Any termination of the Executive’s employment by the
Company or by the Executive (other than a termination pursuant to Section
5(a)(i) above) shall be communicated by written Notice of Termination to the
other party hereto in accordance with Section 10. For
purposes of this Agreement, a “Notice of Termination” shall mean a notice that
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive’s employment under the
provision so indicated.

 

(c)           “Date
of Termination” shall mean (i) if the Executive’s employment is terminated
pursuant to Section 5(a)(i) above, the date of his death; (ii) if the Executive’s
employment is terminated pursuant to Section 5(a)(ii) or 5(a)(iv) above, the
date such Notice of Termination is given (or such later date as provided
therein); (iii) if the Executive’s employment is terminated pursuant to Section
5(a)(iii) above, the date mutually agreed to by the parties; (iv) the date the
Term of this Agreement expires, if either the Company or the Executive provides
notice in accordance with Section 1; or (v) if the Executive terminates his
employment and fails to provide written notice to the Company of such
termination, the date of such termination.

 

6.             Compensation Upon Termination.

 

(a)           The
following payments shall be made upon the Executive’s termination of employment
for any reason:  (i) earned but unpaid
Base Salary through the Executive’s Date of 

 

 

Termination;
(ii) any accrued but unpaid vacation; (iii) unreimbursed business expenses owed
pursuant to Section 4(d)(iii); and (iv) any amounts payable under any of the
Company’s Benefit Plans in accordance with the terms of those plans. All
amounts under clauses (i) through (iii) shall be paid in a lump sum on the
Executive’s Date of Termination or as soon as administratively practicable
thereafter.

 

(b)           In the event the Executive’s
employment is terminated pursuant to Sections 5(a)(i) or 5(a)(ii), or by the
Executive for any reason pursuant
to Section 5(a)(iv), above, the Company shall have no further obligation to the
Executive under this Agreement, other than the payments in Section 6(a).

 

(c)           If the Executive’s employment is
terminated by the parties pursuant to Section 5(a)(iii) above, the Executive shall
be entitled to receive the compensation the parties specify in any written
agreement that the Company and the Executive execute regarding the Executive’s
termination.

 

(d)           In addition to the payments made
under Section 6(a), if the Executive’s employment is terminated by the Company
without Cause pursuant to Section 5(a)(iv) above, the Company shall, for
a period of nine (9) months (the “Severance Period”) following the Date of
Termination, (i) provide to Executive salary continuation, at Executive’s Base
Salary rate then in effect, and (ii) continue the Executive’s coverage under
the Benefit Plans in which the Executive participated immediately prior to the
Date of Termination, provided, however, that if the Company cannot continue
such coverage, the Company shall provide or arrange to provide, at its expense,
similar coverage to the Executive. Notwithstanding the forgoing, vacation days
shall not accrue during the Severance Period.

 

(e)           The
Executive shall not be required to mitigate the amount of any payment provided
for in this Section 6 by seeking other employment or otherwise, nor shall the
amount of any payment or benefit provided for in this Section 6 be reduced by
any compensation earned by the Executive as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

 

(f)            The
obligations of the Company to make payments and provide benefits under this
Section 6 shall survive the termination of this Agreement.

 

7.             Change in Control.

 

(a)           Payments
and Benefits Upon Employment Termination Upon a Change in Control. If the
Executive’s employment is terminated other than for Cause within 24 months
after a Change in Control (as defined below), the Company shall provide the
following payments and benefits to the Executive, in lieu of those payments and
benefits provided under Sections 6(d), but in addition to the amounts payable
under Section 6(a):

 

(i)            The
Company shall pay the Executive a lump sum cash amount equal to two (2) times
the sum of (A) the Executive’s Base Salary as in effect on the date of the
Executive’s termination of employment and (B) the Executive’s target bonus
amount for the fiscal year in which the Executive’s employment is terminated OR
an amount equal to the annual bonus paid to the Executive during the fiscal
year immediately preceding the Executive’s termination of employment.

 

(ii)           The
Company shall continue the Executive’s coverage under the Benefit Plans in
which the Executive participated immediately prior to the Executive’s 

 

 

termination of employment for a period of 24
months, provided, however, that if the Company cannot continue such coverage,
the Company shall provide or arrange to provide, at its expense, similar
coverage to the Executive.

 

(b)           Timing
of Payment. All payments under Section 7(a) shall be made in a lump sum cash
payment as soon as practicable, but in no event more than 10 days after the
Executive’s termination of employment.

 

(c)           Definitions.
For purposes of this Agreement, the following terms shall have the following
definitions:

 

(i)    “Change in Control” means the occurrence of
any one or more of the following:

 

(A)    Any
“person” (as such term is defined in Section 3(a)(9) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and as used in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act), including a “group” (as defined in Section
13(d)(3) of the Exchange Act), other than (I) the Company, (II) any
wholly-owned subsidiary of the Company, (III) any employee benefit plan (or
related trust) sponsored or maintained by the Company or any of its affiliates,
or (IV) a “Permitted Holder” (as defined below), becomes a “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company having fifty percent (50%) or more of the combined
voting power of the then-outstanding securities of the Company that may be cast
for the election of directors of the Company (other than as a result of an
issuance of securities initiated by the Company in the ordinary course of
business) (the “Company Voting Securities”); provided, however, that the event
described in this Section 7(c)(i) shall not be deemed to be a Change in Control
by virtue of any underwriter temporarily holding securities pursuant to an
offering of such securities;

 

(B)           During
any period of two consecutive years, individuals who at the beginning of any
such period constitute the Board (the “Incumbent Directors”) cease for any
reason to constitute at least a majority of the Board, unless the election, or
the nomination for election by the stockholders of the Company, of each new
director of the Company during such period was approved by a vote of at least
two-thirds of the Incumbent Directors then still in office;

 

(C)           As
the result of, or in connection with, any cash tender or exchange offer, merger
or other business combination, sale of all or substantially all of the Company’s
assets or contested election, or any combination of the foregoing transactions,
less than a majority of the combined voting power of the then-outstanding
securities of the Company or any successor corporation or entity entitled to
vote generally in the election of the directors of the Company or such other
corporation or entity after such transaction is held in the aggregate by the
holders of the securities of the Company entitled to vote generally in the
election of directors of the Company immediately prior to such transaction; or

 

(D)          The
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company.

 

Notwithstanding the foregoing, a Change in
Control shall not be deemed to occur solely because any person acquires
beneficial ownership of more than fifty percent (50%) of the Company Voting
Securities as a result of the 

 

 

acquisition
of Company Voting Securities by the Company which reduces the number of Company
Voting Securities outstanding; provided, however, that if after such
acquisition by the Company such person becomes the beneficial owner of
additional Company Voting Securities that increases the percentage of
outstanding Company Voting Securities beneficially owned by such person, a
Change in Control transaction shall then occur.

 

Further notwithstanding the foregoing, unless
a majority of the Incumbent Directors determines otherwise, no Change in
Control shall be deemed to have occurred with respect to the Executive if the
Change in Control results from actions or events in which the Executive is a
participant in a capacity other than solely as an officer, employee or director
of the Company or any of its affiliates.

 

(ii)           “Permitted
Holders” means (A) Michael T. Flavin (the “Principal”), (B) the spouse or any
immediate family member of the Principal and any child or spouse of any spouse
or immediate family member of the Principal, (C) a trust, corporation,
partnership or other entity, the beneficiaries, stockholders, partners, owners
or persons beneficially holding, directly or indirectly, a controlling interest
of which consists of the Principal and/or such other persons referred to in the
immediately preceding clause (B), or (D) the trustees of any trust referred to
in clause (D).

 

(d)           Treatment of Parachute Payments.

(i)            Notwithstanding any other provisions
of this Agreement, and except as set forth below, in the event that any payment
or benefit received or to be received by the Executive in connection with a
Change in Control or the termination of the Executive’s employment (whether
pursuant to the terms of this Agreement or any other plan, arrangement or
agreement with the Company, any person whose actions result in a Change in
Control or any person affiliated with the Company or such person) (all such
payments and benefits, including payments under Section 7(a) above, being
hereinafter called “Total Payments”) is determined to be an “excess parachute
payment” pursuant to Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), or any successor or substitute provision of the Code,
with the effect that the Executive is liable for the payment of the excise tax
described in Code Section 4999 or any successor or substitute provision of the
Code (the “Excise Tax”), then, after taking into account any reduction in the
Total Payments provided by reason of Code Section 280G in such other plan,
arrangement or agreement, the cash payments provided in Section 7(a)(i) of this
Agreement shall first be reduced, and the noncash payments and benefits shall
thereafter be reduced, to the extent necessary so that no portion of the Total
Payments is subject to the Excise Tax; provided, however, that the Executive
may elect (at any time prior to the payment of any Total Payment under this
Agreement) to have the noncash payments and benefits reduced (or eliminated)
prior to any reduction of the cash payments under this Agreement.

(b)           All determinations required to be
made under this Section 7(d), and the assumptions to be utilized in arriving at
such determination, shall be made by the certified public accounting firm used
for auditing purposes by the Company immediately prior to the date of the
Executive’s termination of employment or, if the parties determine that such
certified public accounting firm cannot make such determination because of
legal restrictions, the parties shall agree on a different certified public
accounting firm (such certified public accounting firm is hereinafter referred
to as the “Accounting Firm”), which shall provide detailed supporting
calculations both to the Company and the 

 

 

Executive not later than 5 days prior to the
date of the Executive’s termination of employment. The Company shall pay all
fees and expenses of the Accounting Firm. Any determination by the Accounting
Firm shall be binding upon the Company and the Executive, except as provided in
paragraph (c) below.

(c)           As a result of the uncertainty in the
application of Code Sections 280G and 4999 at the time of the initial
determination by the Accounting Firm hereunder, it is possible that the
Internal Revenue Service (the “IRS”) or other agency will claim that an Excise
Tax, or a greater Excise Tax, is due. If the Executive is required to make a
payment of any such Excise Tax, the Company will promptly pay the Executive an
additional amount equal to the amount, or greater amount, of Excise Tax the
Executive is required to pay (plus a gross up payment for any income taxes,
interest, penalties or additional Excise Tax payable by Executive with respect
to such Excise Tax or additional payment), as determined by the Accounting Firm.
The Executive will notify the Company in writing of any claim by the IRS or
other agency that, if successful, would require payment by the Company of the
additional payments under this paragraph. The Executive and the Company shall
each reasonably cooperate with the other in connection with any administrative
or judicial proceedings concerning the existence or amount of liability for
Excise Tax with respect to the Total Payments. The Company shall pay all fees
and expenses of the Executive relating to a claim by the IRS or other agency.

 

8.             Restrictive Covenants.

 

(a)           Trade
Secrets. The Executive acknowledges that he has had and shall have access to
confidential information of the Company, whether or not reduced to writing and
whether in paper, electronic, digital, analog or other format (including, but
not limited to, trade secrets, know-how, Inventions (as defined below), new
product and product development information, research results, marketing and
sales programs, customer and supplier information, financial data, employee
records, cost information, pricing information, sales and marketing strategies,
the identity of customers, information received by the Company under an
obligation of confidentiality to customers, and all information generated by
the Company for customers) relating to the past, present or planned business,
customers, clients, contacts, prospects and assets of the Company that is
unique, valuable and has not purposefully been made generally known to the
public by the Company (“Confidential Information”). Confidential Information
shall not include any information that: (i) is now, or hereafter becomes,
through no act or failure to act on the part of the Executive that constitutes
a breach of this Section 8, generally known or available to the public; (ii) is
hereafter furnished without restriction on disclosure to the Executive by a
third party, other than an employee or agent of the Company, who is not under
any obligation of confidentiality to the Company; (iii) is disclosed with the
written approval of the Company; or (iv) is required to be disclosed or
provided by law, court order, or similar compulsion, including pursuant to or
in connection with any legal proceeding involving the parties hereto; provided,
however, that such disclosure shall be limited to the extent so required or
compelled; and provided further, however, that if the Executive is required to
disclose such Confidential Information, the Executive shall give the Company
notice of such disclosure and cooperate in seeking suitable protections. The
Executive acknowledges that all Confidential Information, and all documents,
files, reports, drawings, designs, specifications, formulae, samples, data,
writings, tools, equipment, memory devices or any other tangible objects that
incorporate, contain, refer to or embody any Confidential Information (“Items”),
acquired by the Executive in connection with the Executive’s employment with
the Company are the property of the Company. Other than in the course of
performing services for the Company or otherwise authorized in writing by the
Company, the Executive shall not, at any time, directly or indirectly use,
divulge, furnish or make accessible to any person any Confidential Information,
but instead shall keep all Confidential Information strictly and absolutely confidential.
The Executive shall deliver promptly to the 

 

 

Company,
at the termination of his employment or at any other time at the request of the
Company, without retaining any copies, all Items and any other documents or
materials in the Executive’s possession relating, directly or indirectly, to
any Confidential Information.

 

(b)           Non-competition.
Beginning on the Effective Date and for a period of  twelve (12) months following Executive’s Date
of Termination (the “Restricted Period”), Executive shall not directly or
indirectly, alone or in conjunction with any other party, own any interest in,
operate, control, engage in or participate as a partner, director, principal,
officer, employee, independent contractor or agent of, act as a consultant to,
perform any services for, or assist in any way any company, person, or entity
in the United States that is engaged in “Competing Services” (as defined
herein). Competing Services shall mean chemistry and biology research and
development relating to, arising from, connected with, or competitive with or
intended to be competitive with, any product or research project as to which
the Executive performed services for the Company, or about which the Executive
received access to Confidential Information while employed by the Company. If
the Executive obtains other employment during the twelve-month period after the
Executive’s Date of Termination, the Executive agrees to notify the Company in
writing of the name and address of such employer. The Executive understands, and
the Company agrees, that the Company shall pay to the Executive a monthly
amount equal to one month of the Executive’s final Base Salary if the Executive
is unable to secure other employment as a direct result of this Section 8(b). The
Executive agrees and acknowledges that (i) the Company shall be obligated to
make such payment only upon a written request by the Executive containing
sufficient information for the Company to make a determination that this
Section 8(b) caused the Executive’s inability to secure other employment, and
(ii) the Company shall be released from the obligation to make such payment if
the Company provides the Executive a written release from this Section 8(b). The
Company’s obligation to make payments under this Section 8(b) shall be made
only for the period beginning with the Executive’s inability to secure other
employment as a result of this Section 8(b) and ending no later than the
expiration of the twelve-month period following the Executive’s Date of
Termination.

 

(c)           Non-Solicitation
of Employees. During the Restricted Period, the Executive shall not, directly
or indirectly solicit or induce, or attempt to solicit or induce, any current
employee of the Company, or any individual who becomes an employee during the
Restricted Period, to leave his or her employment with the Company or join or
become affiliated with any other business or entity, hire any employee of the
Company or in any way interfere with the relationship between any employee and
the Company.

 

(d)           Non-Solicitation
of Customers. During the Restricted Period, the Executive shall not, directly
or indirectly, solicit or induce, or attempt to solicit or induce, any
customer, supplier, licensee, licensor or other business relation of the
Company to terminate its relationship or contract with the Company, to cease
doing business with the Company, or in any way interfere with the relationship
between any such customer, supplier, licensee or business relation and the
Company (including making any negative statements or communications concerning
the Company or their employees).

 

(e)           Inventions.
The Executive acknowledges all inventions of the Company (including, but not
limited to, procedures, systems, machines, methods, processes, uses,
apparatuses, compositions of matter, designs, or configurations of any kind,
discovered, conceived, reduced to practice, developed, made or produced) (“Inventions”)
that (i) relate to the present or planned business of the Company or the work
performed by the Company for its customers, and (ii) are conceived or reduced
to practice by the Executive, either alone or with others, during the Executive’s
employment with the Company or during a period of 120 days after the Executive’s
Date of Termination, whether or not done during the Executive’s regular working

 

 

hours, are the sole property of the
Company, including, without limitation, all domestic and foreign patent rights,
rights of registration or other protection under the copyright laws, or other
rights pertaining to the Inventions. For purposes of this Agreement, Inventions
shall include any improvements to an Invention and shall not be limited to the
definition of a patentable invention or copyrightable work of authorship as
contained in the United States patent or copyright laws. The Executive shall
disclose promptly and fully in writing to the Company each Invention, whether
or not reduced to practice, that the Executive conceives or learns (either
alone or jointly with others) during the Term of Employment. The Executive
hereby assigns to the Company, or its nominee, all of the Executive’s right,
title and interest, including international priority rights, in and to all
Inventions (other than any Invention that was developed entirely on the
Executive’s own time and for which no equipment, supplies, facilities or trade
secret information of the Company was used, unless such Invention relates
directly to the Company’s business or to the Company’s actual or demonstrably
anticipated research or development), and in and to all United States or foreign
patents, copyrights and other proprietary rights granted thereon or resulting
therefrom, and in and to all applications for United States or foreign
copyrights, patents and other proprietary rights. The Executive shall execute
all papers, perform all lawful acts or assist the Company in any way the
Company deems necessary or advisable (at the Company’s expense) for the
preparation, filing, prosecution, issuance, procurement, maintenance or
enforcement of patents applications and patents of the United States and
foreign countries, and for obtaining and enforcing copyright protection and
registration, of any Invention. To that end, the Executive shall at the Company’s
request and without limitation, testify in any suit or other proceeding
involving any of the Inventions, execute all documents that the Company
reasonably determines to be necessary or convenient for use in applying for and
obtaining patent or copyright protection and registration on any of the
Inventions and enforcement of that protection and registration, and execute all
necessary documents and papers required to vest title in and assign to the
Company (or its nominee) patent or copyright protection and registration. The
Executive’s obligation to assist the Company in obtaining and enforcing patent
or copyright protection and registration for the Inventions shall continue
following termination of this Agreement, but Company shall compensate the
Executive following the expiration or termination of this Agreement at a rate
of $10 for the execution of each document and $150 per day for each day or
portion thereof spent at the Company’s request in rendering assistance, plus
reimbursement for the reasonable out-of-pocket expenses incurred by the
Executive for such assistance. The Executive hereby irrevocably appoints the
Company and its duly authorized officers and agents as his agent and
attorney-in-fact to act for and on behalf of the Executive in filing all patent
applications, applications for copyright protection and registration amendments,
renewals and all other appropriate documents in any way related to the
Inventions.

 

(f)            Survival.
The provisions set forth in this Section 8 shall survive termination of this
Agreement.

 

(g)           Scope
Limitations. If the scope, period of time or area of restriction specified in
this Section 8 are or would be judged to be unreasonable in any court
proceeding, then the period of time, scope or area of restriction shall be
reduced or limited in the manner and to the extent necessary to make the
restriction reasonable, so that the restriction may be enforced in those areas,
during the period of time and in the scope that are or would be judged to be
reasonable.

 

9.             Binding Agreement;
Successors. This Agreement and all rights of the Executive hereunder shall
inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive should die while any amounts would
still be payable to him hereunder if he had continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this 

 

 

Agreement to the Executive’s devisee, legatee, or other designee or, if
there be no such designee, to the Executive’s estate. This Agreement shall be
binding upon, and inure to the benefit of, any successors or assigns of the
Company. This Agreement is not intended to confer upon any person other than
the parties hereto (and the Executives’ Spouse and dependents) any rights or
remedies, except as specifically provided in this Section 9.

 

10.           Notice. Notices, demands and
all other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered, if delivered personally,
or (unless otherwise specified) when received, if mailed
by United States certified or registered mail, return receipt requested,
postage prepaid, by Federal Express or other reputable overnight
courier service or by facsimile, addressed as follows:

 

If to the Executive:

 

R. Richard Wieland

10Ambrose Lane

Barrington, IL  60010

 

If to the Company:

 

Advanced Life Sciences, Inc.

1440 Davey
Road

Woodridge,
Illinois 60517

Attn: Chief Executive Officer

 

or to such other address as
any party may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

 

11.           General Provisions. No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing signed by the
Executive and such officer of the Company as may be specifically designated by
the Company’s Board. No waiver by either party hereto at any time of any breach
by the other party hereto of, or compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, express
or implied, with respect to the subject matter hereof have been made by either
party that are not set forth expressly in this Agreement.

 

12.           Validity. The invalidity or
unenforceability of any provision or provisions of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect. If any provision of this Agreement
is found to be invalid or unenforceable, in whole or in part, then it shall be
deemed to be modified or restricted to the extent and in the manner necessary
to render it valid and enforceable, or shall be deemed excised from this
Agreement, as the case may require, and this Agreement shall be construed and
enforced to the maximum extent permitted by law, as if the provision had been
originally incorporated herein as so modified or restricted, or as if it had
not originally been incorporated herein, as the case may be.

 

13.           Counterparts. This Agreement
may be executed in one or more counterparts, each of which shall be deemed to
be an original but all of which together shall
constitute one and the same instrument.

 

14.           Entire Agreement. This
Agreement sets forth the entire agreement of the parties hereto in respect of
the subject matter contained herein and supersedes all prior agreements,
promises, covenants, 

 

 

arrangements,
communications, representations or warranties, whether oral or written, by any
officer, employee or representative of any party hereto; and any prior
agreement of the parties hereto in respect of the subject matter contained
herein is hereby terminated and canceled. For the avoidance of doubt, the
Company and the Executive hereby agree that this Agreement shall replace and
supercede the Existing Employment Contract and govern the relationship of the
parties.

 

15.           Irreparable Harm. The
Executive acknowledges that: (i) the Executive’s compliance with this Agreement
is necessary to preserve and protect the proprietary rights, Confidential
Information and the goodwill of the Company and its subsidiaries as going
concerns; (ii) any failure by the Executive to comply with the provisions of
this Agreement shall result in irreparable and
continuing injury for which there will be no adequate remedy at law; and (iii)
in the event that the Executive should fail to comply with the terms and
conditions of this Agreement, the Company shall be entitled, in addition to
such other relief as may be proper, to all types of equitable relief
(including, but not limited to, the issuance of an injunction and/or temporary
restraining order) as may be necessary to cause the Executive to comply with
this Agreement, to restore to the Company its property, and to make the Company
whole.

 

16.           Consent to Jurisdiction and Forum;
Legal Fees and Costs. The Company and the Executive hereby expressly and
irrevocably agree that any action, whether at law or in equity, arising out of
or based upon this Agreement or the Executive’s employment by the Company shall
only be brought in a federal or state court located in Cook
County, Illinois. The Executive hereby irrevocably consents to personal
jurisdiction in such court and to accept service of process in accordance with
the provisions of such court. In connection with any dispute arising out of or
based upon this Agreement or the Executive’s employment by the Company, each
party shall be responsible for its or his own legal fees and expenses and all
court costs shall be shared equally by the Company and the Executive unless the
court apportions such legal fees or court costs in a different manner.

 

17.           Withholding. All payments made
to the Executive pursuant to this Agreement shall be subject to applicable
withholding taxes, if any, and any amount so withheld shall be deemed to have
been paid to the Executive for purposes of amounts due to the Executive under
this Agreement.

 

18.           Governing Law. This Agreement
is governed by and is to be construed and enforced in accordance with the laws
of the State of Illinois, without regard to its conflict of law provisions.

 

IN
WITNESS WHEREOF, the parties have executed this Agreement on the date and year
first above written.

 

	
  EXECUTIVE

  	
  ADVANCED LIFE SCIENCES, INC.

  
	
   

  	
   

  
	
  By

  	
  : /s/ Richard Wieland

  	
   

  	
  By

  	
  : /s/ Michael T. Flavin

  	
   

  
	
  Name: R. Richard Wieland, II

  	
  Name:

  	
  Michael T. Flavin

  
	
   

  	
  Title:

  	
  Chief Executive OfficerExhibit 10.10

 

PROMISSORY NOTE

 

	
  Borrower:

  	
   

  	
  Advance Life
  Sciences, Inc.

  	
   

  	
  Lender:

  	
   

  	
  THE LEADERS BANK

  
	
   

  	
   

  	
  1440 Davey Road

  	
   

  	
   

  	
   

  	
  2001 YORK ROAD, SUITE
  150

  
	
   

  	
   

  	
  Woodridge, IL 60517

  	
   

  	
   

  	
   

  	
  OAK BROOK, IL 60523

  

 

	
  Principal
  Amount: $1,000,000.00

  	
  Initial Rate: 7.000%

  	
  Date of Note: May 31, 2005

  

 

 

PROMISE TO PAY.  Advance Life Sciences, Inc.
(“Borrower”) promises to pay to THE LEADERS BANK (“Lender”), or order, in
lawful money of the United States of America, the principal amount of One
Million & 00/100 Dollars ($1,000,000.00) or so much as may be
outstanding, together with interest on the unpaid outstanding principal balance
of each advance.  Interest shall be
calculated from the date of each advance until repayment of each advance.

 

PAYMENT.  Borrower
will pay this loan in full immediately upon Lender’s demand.  If no demand is made, Borrower will pay this
loan in one payment of all outstanding principal plus all accrued unpaid interest
on December 21, 2006.  In
addition, Borrower will pay regular monthly payments of all accrued unpaid interest
due as of each payment date, beginning June 30, 2005, with all subsequent interest
payments to be due on the last day of each month after that.  Unless otherwise agreed or required by
applicable law, payments will be applied first to any accrued unpaid interest;
then to principal; then to any unpaid collection costs; and then to any late
charges.  The annual interest rate for
this Note is computed on a 365/360 basis; that is, by applying the ratio of the
annual interest rate over a year of 360 days, multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal
balance is outstanding.  Borrower will
pay Lender at Lender’s address shown above or at such other place as Lender may
designate in writing.

 

VARIABLE INTEREST RATE.  The interest rate on this Note is subject to change from time to time
based on changes in an index which is the Leaders Bank Index Rate as
periodically announced by The Leaders Bank (the “Index”).  The Index is not necessarily the lowest rate
charged by Lender on its loans and is set
by Lender in its sole discretion.  If the
Index becomes unavailable during the term of this loan, Lender may designate a
substitute index after notifying Borrower.  Lender will tell Borrower the current Index
rate upon Borrower’s request.  The
interest rate change will not occur more often than each day.  Borrower understands that Lender may make
loans based on other rates as well.  The Index currently is 6.000% per annum.  The interest rate to be applied to the unpaid
principal balance of this Note will be at a rate of 1.000 percentage point over
the Index, resulting in an initial rate of 7.000% per annum.  NOTICE: 
Under no circumstances will the interest rate on this Note be more than
the maximum rate allowed by applicable law.

 

PREPAYMENT.  Borrower agrees that all loan fees and other
prepaid finance charges are earned fully as of the date of the loan and will
not be subject to refund upon early payment (whether voluntary or as a result
of default), except as otherwise required by law.  Except for the foregoing, Borrower may pay
without penalty all or a portion of the amount owed earlier than it is due.  Early payments will not, unless agreed to by
Lender in writing, relieve Borrower of Borrower’s obligation to continue to
make payments of accrued unpaid interest.  Rather, early payments will reduce the
principal balance due.  Borrower agrees
not to send Lender payments marked “paid in full”, “without recourse”, or
similar language.  If Borrower sends such
a payment, Lender may accept it without losing any of Lender’s rights under
this Note, and Borrower will remain obligated to pay any further amount owed to
Lender.  All written communications
concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes “payment in full” of the amount
owed or that is tendered with other conditions or limitations or as full
satisfaction of a disputed amount must be mailed or delivered to: The Leaders
Bank, Post Office Box 3516 Oak Brook, IL 60522-3516.

 

LATE CHARGE.  If a payment is 10 days or more late, Borrower
will be charged 5.000% of the regularly scheduled payment or
$10.00, whichever is greater.

 

INTEREST AFTER DEFAULT.  Upon default, including failure to pay upon final maturity, Lender, at
its option, may, if permitted under applicable law, increase the variable interest
rate on this Note to 5.000 percentage points over the Index.  The interest rate will not exceed the maximum
rate permitted by applicable law.

 

DEFAULT.  Each of the following shall
constitute an event of default (“Event of Default”) under this Note:

 

Payment Default.  Borrower fails to make any payment when
due under this Note.

 

Other Defaults.  Borrower fails to comply with or to
perform any other term, obligation, covenant or condition contained in this
Note 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.

 

Default in Favor of Third Parties.  Borrower
or any Grantor defaults 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 ability to repay this Note or perform Borrower’s obligations
under this Note or any of the related documents.

 

False Statements.  Any warranty, representation or
statement made or furnished to Lender by Borrower or on Borrower’s behalf under
this Note 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.

 

Insolvency.  The dissolution or termination of Borrower’s
existence as a going business, the insolvency of Borrower, the appointment of a receiver
for any part of Borrower’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.

 

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 by
any governmental agency against any collateral securing the loan.  This includes a garnishment of any of
Borrower’s accounts, including deposit accounts, with Lender.  However, this Event of Default shall not apply
if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Borrower 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
sole discretion, as being an adequate reserve or bond for the dispute.

 

Events Affecting Guarantor.  Any of the preceding events
occurs with respect to any Guarantor of any of indebtedness or any Guarantor
dies or becomes incompetent, or revokes or disputes the validity of, or
liability under, any guaranty of the indebtedness evidenced by this Note.

 

Change in Ownership.  Any change in ownership of
twenty-five percent (25%) or more of the common stock of Borrower.

 

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

 

Insecurity.  Lender in good faith believes itself
insecure.

 

LENDER’S
RIGHTS.  Upon default, Lender may declare the entire
unpaid principal balance on this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

ATTORNEYS’ FEES; EXPENSES.  Lender may hire or pay someone else to help collect this Note if
Borrower does not pay.  Borrower will pay
Lender

 

 

that amount.  This includes, subject to any limits under
applicable law, Lender’s attorneys’ fees and Lender’s legal expenses, whether
or not there is a lawsuit, including attorneys’ fees, expenses for bankruptcy
proceedings (including efforts to modify or vacate any automatic stay or injunction),
and appeals.  If not prohibited by
applicable law, Borrower also will pay any court costs, in addition to all
other sums provided by law.

 

JURY
WAIVER.  Lender and Borrower hereby waive
the right to any jury trial in any action, proceeding, or counterclaim brought
by either Lender or Borrower against the other.

 

GOVERNING
LAW.  This Note will be governed by
federal law 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 Note has been accepted
by Lender in the State of Illinois.

 

CHOICE OF
VENUE.  If there is a lawsuit, Borrower agrees upon
Lender’s request to submit to the jurisdiction of the courts of DU PAGE County,
State of Illinois.

 

CONFESSION
OF JUDGMENT.  Borrower hereby irrevocably authorizes and
empowers any attorney-at-law to appear in any court of record and to confess
judgment against Borrower for the unpaid amount of this Note as evidenced by an
affidavit signed by an officer of Lender setting forth the amount then due,
attorneys’ fees plus costs of suit, and to release all errors, and waive all
rights of appeal.  If a copy of this
Note, verified by an affidavit, shall have been filed in the proceeding, it
will not be necessary to file the original as a warrant of attorney.  Borrower waives the right to any stay of
execution and the benefit of all exemption laws now or hereafter in effect.  No single exercise of the foregoing warrant
and power to confess judgment will be deemed to exhaust the power, whether or
not any such exercise shall be held by any court to be invalid, voidable, or
void; but the power will continue undiminished and may be exercised from time
to time as Lender may elect until all amounts owing on this Note have been paid
in full.  Borrower hereby waives and
releases any and all claims or causes of action which Borrower might have
against any attorney acting under the terms of authority which Borrower has
granted herein arising out of or connected with the confession of judgement
hereunder.

 

RIGHT OF
SETOFF.  To the extent permitted by applicable law, Lender
reserves a right of setoff in all Borrower’s accounts with Lender (whether
checking, savings, or some other account).  This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.  However, this does not include any IRA or
Keogh accounts, or any trust accounts for which setoff would be prohibited by
law.  Borrower 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 paragraph.

 

COLLATERAL.
 Borrower acknowledges this Note is secured by
a Commercial Security Agreement from Borrower to Lender dated December 21,
2004 pledging all corporate assets; a Junior Mortgage dated December 21,
2004 on the property commonly known as 1440 Davey Road, Woodridge, IL and held
in the name of BioStart Property Group, LLC; a Commercial Pledge Agreement
dated December 21, 2004 pledging all Advanced Life Sciences Holdings, Inc.
 Common Stock held by Flavin Ventures,
LLC; a Sub-License of the Licensing Agreement between Abbott Laboratories and
Advanced Life Sciences Holdings, Inc.; a Commercial Pledge Agreement from
ALS Ventures, LLC to Lender dated May 31, 2005 pledging 1,800,000 shares
of common stock in Advanced Life Sciences Holdings, Inc..

 

LINE OF
CREDIT.  This Note evidences a straight line of credit.
 Once the total amount of principal has
been advanced, Borrower is not entitled to further loan advances.  Advances under this Note may be requested
orally by Borrower or as provided in this paragraph.  All oral requests shall be confirmed in
writing on the day of the request.  All
communications, Instructions, or directions by telephone or otherwise to Lender
are to be directed to Lender’s office shown above.  The following persons currently are authorized
to request advances and authorize payments under the line of credit until
Lender receives from Borrower, at Lender’s address shown above, written notice
of revocation of their authority: John L. Flavin; and
Michael T. Flavin. Borrower agrees to be liable for all sums either:
(A) advanced in accordance with the instructions of an authorized person
or (B) credited to any of Borrower’s accounts with Lender.  The unpaid principal balance owing on this
Note at any time may be evidenced by endorsements on this Note or by Lender’s
internal records, including daily computer print-outs.  Lender will have no obligation to advance
funds under this Note if: (A) Borrower or any guarantor is in default
under the terms of this Note or any agreement that Borrower or any guarantor
has with Lender, including any agreement made in connection with the signing of
this Note; (B) Borrower or any guarantor ceases doing business or is insolvent;
(C) any guarantor seeks, claims or otherwise attempts to limit, modify or
revoke such guarantor’s guarantee of this Note or any other loan with Lender;
(D) Borrower has applied funds provided pursuant to this Note for purposes
other than those authorized by Lender; or (E) Lender in good faith
believes itself insecure.

 

LOAN FEES,
CHARGES AND EXPENSES.  Borrower will pay Lender a $15,000.00 loan
Origination Fee due at loan funding

 

DEPOSIT
REQUIREMENT.  Borrower will deposit 50% of the proceeds of
the Public Offering of Advance Life Sciences Holdings, Inc. with The Leaders
Bank.

 

CROSS-COLLATERALIZAT1ON.
 This loan is Cross-Collateralized and
Cross-Defaulted with all existing loans to this and/or other related entities.

 

SUCCESSOR
INTERESTS.  The terms of this Note shall be binding upon
Borrower, and upon Borrower’s heirs, personal representatives, successors and
assigns, and shall inure to the benefit of Lender and its successors and
assigns.

 

NOTIFY US
OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES.  Please notify us if we report any inaccurate information about your
account(s) to a consumer reporting agency.  Your written notice describing the specific
inaccuracy(ies) should be sent to us at the following address: The Leaders Bank
P.O. Box 3516 Oak Brook, IL 60522-3516.

 

GENERAL
PROVISIONS.  This Note is payable on demand.  The inclusion of specific default provisions
or rights of Lender shall not preclude Lender’s right to declare payment of
this Note on its demand.  Lender may
delay or forgo enforcing any of its rights or remedies under this Note without
losing them.  Borrower and any other
person who signs, guarantees or endorses this Note, to the extent allowed by
law, waive presentment, demand for payment, and notice of dishonor.  Upon any change in the terms of
this Note, and unless otherwise expressly stated in writing, no party who signs
this Note, whether as maker, guarantor, accommodation maker or endorser, shall
be released from liability.  All such
parties agree that Lender may renew or extend (repeatedly and for any length of
time) this loan or release any party or guarantor or collateral; or impair,
fail to realize upon or perfect Lender’s security interest in the collateral;
and take any other action deemed necessary by Lender without the consent of or
notice to anyone.  All such parties also
agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made.  The obligations under this Note are joint and
several.

 

ILLINOIS
INSURANCE NOTICE.  Unless Borrower provides Lender
with evidence of the insurance coverage required by Borrower’s agreement with
Lender, Lender may purchase insurance at Borrower’s expense to protect Lender’s
interests in the collateral.  This insurance
may, but need not, protect Borrower’s interests.  The coverage that Lender purchases may not pay
any claim that Borrower makes or any claim that is made against Borrower in
connection with the collateral.  Borrower
may later cancel any insurance purchased by Lender, but only after providing
Lender with evidence that Borrower has obtained insurance as required by their
agreement.  If Lender purchases insurance
for the collateral, Borrower 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 Borrower’s total outstanding balance or
obligation.  The costs of the insurance
may be more than the cost of insurance Borrower may be able to obtain on
Borrower’s own.

 

2

 

PRIOR TO SIGNING THIS NOTE,
BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE
VARIABLE INTEREST RATE PROVISIONS.  BORROWER
AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES
RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

BORROWER:

 

 

	
  ADVANCE LIFE SCIENCES,
  INC.

  
	
   

  
	
  By:

  	
            /s/
  John L. Flavin

  	
   

  
	
   

  	
  John L. Flavin, President
  of Advance Life Sciences, Inc.

  	
   

  
	
   

  	
  Secretary

  	
   

  

 

3

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