Document:

Unassociated Document

    

      APEX
        BIOVENTURES ACQUISITION CORPORATION

      

      INSIDER
        WARRANT PURCHASE AGREEMENT

      

      THIS
        INSIDER WARRANT PURCHASE AGREEMENT (this “Agreement”) is made as of _______,
        2006 between Apex Bioventures Acquisition Corporation, a Delaware corporation
        (the “Company”), and each of the individuals and entities set forth on
Exhibit
        A
        hereto
        and a signatory hereof (each, a “Purchaser” and collectively, the “Purchasers”).
        Except as otherwise indicated herein, capitalized terms used herein are defined
        in Section 10 hereof.

      

      WHEREAS,
        the Purchasers are, or entities affiliated with, officers and/or directors
        of
        the Company; and

      

      WHEREAS,
        in furtherance of the Company’s plan to obtain funding through an initial public
        offering (the “Offering”) of its units (the “Units”), each Unit consisting of
        one share of common stock (“Common Stock”), par value $0.0001 per share, of the
        Company (the “Unit Common Stock”) and one warrant to purchase one share of
        Common Stock (each, a “Unit Warrant” and collectively, the “Unit Warrants”), and
        to demonstrate their commitment to this plan, the Purchasers desire to make
        an
        investment in the Company by purchasing 1,250,000 warrants (each, an “Insider
        Warrant” and collectively, the “Insider Warrants” ) on the terms and conditions
        described herein.

      

      NOW
        THEREFORE, the parties to this Agreement hereby agree as follows:

      

      Section
        1. Authorization,
        Purchase and Sale; Terms of the Insider Warrants.
        

      

      A. Authorization
        of the Insider Warrants. The
        Company has authorized, and hereby ratifies such authorization by execution
        hereof, the issuance and sale to the Purchasers of an aggregate of 1,250,000
        Insider Warrants. Each Insider Warrant shall, upon exercise and payment of
        the
        exercise price specified therein, entitle the holder to purchase one share
        of
        the Company’s Common Stock.

      

      B. Purchase
        and Sale of the Insider Warrants.
        The
        Company shall sell to each of the Purchasers, and subject to the terms and
        conditions set forth herein, the Purchasers shall severally purchase from
        the
        Company, prior to the effectiveness of the Registration Statement, an aggregate
        of 1,250,000 Insider Warrants. Each Purchaser shall purchase that number
        of the
        Insider Warrants as is set forth opposite his name in the table contained
        in
Exhibit
        A
        hereto.
        The purchase price of each Insider Warrant shall be $1.00 per warrant (the
        “Purchase Price”), which shall be paid in immediately available funds through
        wire transfers to the trust account (the “Trust Account”) to be established
        pursuant to that certain Investment Management Trust Agreement by and between
        the Company and Continental Stock Transfer & Trust Company
        (“Continental”). The Purchase Price shall be wired to the Trust Account by the
        Purchasers so as to be on deposit in the Trust Account not less than 24 hours
        prior to the effectiveness of the Registration Statement. Amounts so received
        in
        the Trust Account shall be credited against the respective purchase obligations
        of the Purchasers as set forth on Exhibit
        A
        hereto.

      
        
          
          

        

        
          
          

          
            

          

        

         

      

       

      C. Terms
        of the Insider Warrants.
        The
        Insider Warrants shall carry rights and terms identical to those possessed
        by
        the Unit Warrants described in the Registration Statement, subject to the
        following exceptions: the Insider Warrants (i) will not be
        transferable or salable by the Purchasers until (A) the later of __________,
        2007 and the consummation of a Business Combination, or (B) any time after
        six
        months from the consummation of a Business Combination if the volume weighted
        average price of the Common stock equals or exceeds $11.50 per share for
        any 20
        trading days within any 30 trading day period following, (ii) will be
        non-redeemable so long as the Purchasers hold such warrants following their
        issuance by the Company to such Purchasers, and (iii) together with the
        shares of Common Stock underlying the Insider Warrants, are and will be entitled
        to registration rights under the registration rights agreement (the
“Registration Rights Agreement”) to be signed contemporaneously herewith between
        the Purchasers (referred to as the Investors in the Registration Rights
        Agreement) and the Company. The transfer restriction set forth in (i) above
        shall not apply (a) with respect to a Purchaser that is an entity, to dividend,
        distribution or contribution to any individual or entity controlling, controlled
        by, or under common control with such Purchaser, or to any stockholder, member,
        partner or limited partner of such Purchaser, for which no or nominal
        consideration is received, and (b), with respect to a Purchaser who is an
        individual, (i) to a member of such Purchaser’s immediate family or to a trust,
        the beneficiary of which is such Purchaser or a person related to such Purchaser
        by blood, marriage or adoption, or (ii) by virtue of the laws of descent
        and
        distribution upon death of such Purchaser (each, a “Permitted Transferees” and
        collectively, the “Permitted Transferees”), provided, that, prior to such
        transfer, each Permitted Transferee or the trustee or legal guardian therefor,
        agrees in writing to be bound by the terms of this Agreement. Should any
        of the
        Purchasers transfer or sell Insider Warrants to persons other than Permitted
        Transferees after the Company has completed a Business Combination, then
        such
        Insider Warrants shall on the date of such transfer immediately become
        redeemable under the same terms as the Unit Warrants. Further, the Insider
        Warrants may be exercised on a cashless basis in accordance with Section
        3.3.1
        of the Warrant Agreement. Except as specifically provided in this
        Agreement, the terms of the Insider Warrants shall in all other respects
        be as
        set forth in the Warrant Agreement relating to the Unit Warrants by and between
        the Company and Continental. In the event of any conflict between this Agreement
        and the Warrant Agreement, the terms and provisions of which are incorporated
        herein by reference, this Agreement shall control.

      

      Section
        2. The
        Closing.
        The
        closing of the purchase and sale of the Insider Warrants to the Purchasers
        (the
“Closing”) shall take place at the offices of CRT Capital Group LLC (“CRT”)
        prior to the effectiveness of the Registration Statement. At the Closing,
        the
        Company shall deliver warrant certificates evidencing the Insider Warrants
        to be
        purchased by the Purchasers hereunder, registered in each Purchaser’s name, upon
        the payment of the aggregate purchase price therefor, by wire transfer of
        immediately available funds to the Trust Account.

      

      Section
        3. Representations
        and Warranties of the Company.
        As a
        material inducement to the Purchasers to enter into this Agreement and purchase
        the Insider Warrants, the Company hereby represents and warrants
        that:

      

      A. Organization
        and Corporate Power.
        The
        Company is a corporation duly organized, validly existing and in good standing
        under the laws of the State of Delaware and is qualified to do business in
        California, which is the only jurisdiction in which the failure to so qualify
        would reasonably be expected to have a material adverse effect on the financial
        condition, operating results or assets of the Company (a “Company Material
        Adverse Effect”). The Company possesses all requisite corporate power and
        authority necessary to carry out the transactions contemplated by this
        Agreement.

      
        
          
          

        

        
          2

          
            

          

        

         

      

       

      B. Authorization;
        No Breach. 

      

      (i) The
        execution, delivery and performance of this Agreement will have been duly
        authorized by the Company as of the Closing. This Agreement constitutes a
        valid
        and binding obligation of the Company, enforceable in accordance with its
        terms
        upon its execution.

      

      (ii) The
        execution and delivery by the Company of this Agreement, the sale and issuance
        of the Insider Warrants hereunder, the issuance of the Common Stock upon
        exercise of the Insider Warrants (except, with respect thereto, any filings
        required under Federal or state securities laws or issuance of one or more
        legal
        opinions in form and content reasonably satisfactory to the Company pertaining
        to the availability of one or more exemptions with respect to the issuance
        of
        the Insider Warrants under applicable securities laws) and the fulfillment
        of
        and compliance with the respective terms hereof and thereof by the Company,
        do
        not, and will not as of the Closing, (A) conflict with or result in
        a
        breach
        of the terms, conditions or provisions of, (B) constitute a default under,
        (C) result in the creation of any lien, security interest, charge or
        encumbrance upon the Company’s capital stock or assets pursuant to,
        (D) result in a violation of, or (E) require any authorization,
        consent, approval, exemption or other action by or notice or declaration
        to, or
        filing with, any court or administrative or governmental body or agency pursuant
        to the Company’s Certificate of Incorporation, as amended, or Bylaws, or any
        law, statute, rule or regulation to which the Company is subject, or any
        agreement, order, judgment or decree to which the Company is subject, except
        for
        any filings required after the date hereof under Federal or state securities
        laws or as would not reasonably be expected to result in a Company Material
        Adverse Effect.

      

      C. Title
        to Securities.
        Upon
        issuance in accordance with, and payment pursuant to, the terms hereof, the
        Insider Warrants to be purchased hereunder and, upon exercise of the Insider
        Warrants, payment of the exercise price set forth therein and conformance
        with
        the other provisions relating to the exercise thereto, the Common Stock issuable
        upon exercise of such Insider Warrants will be duly and validly issued, fully
        paid and nonassessable, and the Purchasers will have or receive good title
        to
        such securities, free and clear of all liens, claims and encumbrances of
        any
        kind, other than (i) transfer restrictions hereunder and under the other
        agreements contemplated hereby, (ii) transfer restrictions under federal
        and state securities laws, and (iii) liens, claims or encumbrances imposed
        due to the actions of the Purchaser.

      

      D. Disclosure. 

      

      (i) The
        Company has provided each Purchaser with a copy of the Registration Statement
        and each Amendment to the Company’s Registration Statement, or informed each
        Purchaser of the filing thereof and instructed or requested the Purchasers
        to
        review the Registration Statement and each such Amendment on the Commission’s
        website. The Company will provide the Purchasers with a copy of any and all
        amendments to the Registration Statement filed by the Company with the
        Commission prior to the Closing.

      
        
          
          

        

        
          3

          
            

          

        

         

      

       

      (ii) To
        the
        best of the Company’s knowledge as of the date hereof, neither this Agreement
        nor the Registration Statement, taken as a whole, contains any untrue statement
        of a material fact or omits to state a material fact necessary to make the
        statements herein or therein not misleading in light of the circumstances
        under
        which such statements were made.

      

      Section
        4. Representations,
        Warranties and Covenants of Purchasers. As
        a
        material inducement to the Company to enter into this Agreement and issue
        and
        sell the Insider Warrants to the Purchasers, each Purchaser hereby severally
        and
        not jointly represents, warrants and covenants to the Company (as to himself,
        herself or itself only) that:

      

      A. Capacity
        and State Law Compliance.
        Such
        Purchaser, if an individual, is over the age of 21 years with the legal capacity
        to execute and perform the obligations imposed on such Purchaser hereunder.
        If
        such Purchaser is an entity, (i) it is a corporation, limited liability company,
        limited partnership or other legal entity, duly organized, validly existing
        and
        in good standing under the laws of the jurisdiction of its organization and
        is
        qualified to do business in every jurisdiction in which the failure to so
        qualify would reasonably be expected to have a material adverse effect on
        the
        financial condition, operating results or assets of such Purchaser, and (ii)
        the
        execution, delivery and performance of this Agreement by such Purchaser will
        have been duly authorized by such Purchaser as of Closing. To such Purchaser’s
        knowledge, such Purchaser has engaged in the transactions contemplated by
        this
        Agreement within a state in which the offer and sale of the Insider Warrants
        is
        permitted under applicable securities laws. Such Purchaser understands and
        acknowledges that the purchase of Common Stock upon exercise of the Insider
        Warrants may require the registration of such Common Stock under Federal
        and/or
        state securities laws or the availability of an exemption from such registration
        requirements.

      

      B. Authorization;
        No Breach. 

      

      (i) This
        Agreement constitutes a valid and binding obligation of such Purchaser,
        enforceable in accordance with its terms.

      

      (ii) The
        execution and delivery by such Purchaser of this Agreement, and the fulfillment
        of and compliance with the terms hereof, by such Purchaser do not, and shall
        not
        as of the
        Closing,
        conflict with or result in a breach of the terms, conditions or provisions
        of
        any other agreement, instrument, order, judgment or decree to which such
        Purchaser is subject.

      

      C. Investment
        Representations. 

      

      (i) Such
        Purchaser is acquiring Insider Warrants and, upon exercise thereof, will
        acquire
        the Common Stock issuable upon such exercise (collectively, the “Securities”),
        for his own account, for investment only and not with a view towards, or
        for
        resale in connection with, any public sale or distribution thereof.

      

      (ii) Such
        Purchaser is an “accredited investor” as defined in Rule 501(a)(3) of Regulation
        D.

      
        
          
          

        

        
          4

          
            

          

        

         

      

       

      (iii) Such
        Purchaser understands that the Securities are being offered and sold to him,
        her
        or it in reliance on specific exemptions from the registration requirements
        of
        United States federal and state securities laws and that the Company is relying
        in part upon the truth and accuracy of, and such Purchaser’s compliance with,
        the representations, warranties and agreements of such Purchaser set forth
        herein in order to determine the availability of such exemptions and the
        eligibility of such Purchaser to acquire such Securities.

      

      (iv) Such
        Purchaser did not decide to enter into this Agreement, as a result of any
        general solicitation or general advertising within the meaning of Rule 502(c)
        under the Securities Act of 1933, as amended (the “Securities Act”), including
        the filing of the Registration Statement.

      

      (v) By
        virtue
        of such Purchaser’s position as an officer and/or director of the Company or by
        virtue of such Purchaser’s affiliation with an officer and/or director of the
        Company, such Purchaser has access to all materials relating to the business,
        finances and operations of the Company and materials relating to the offer
        and
        sale of the Securities. Such Purchaser has been afforded the opportunity
        to ask
        questions of the other executive officers and directors of the Company. Such
        Purchaser understands that his, her or its investment in the Securities involves
        a high degree of risk. Such Purchaser has sought such accounting, legal and
        tax
        advice as such Purchaser has considered necessary to make an informed investment
        decision with respect to his, her or its acquisition of the Securities. Such
        Purchaser has received and reviewed a copy of the Registration Statement,
        including without limitation, the language therein under the caption “Risk
        Factors.”

      

      (vi) Such
        Purchaser understands that no United States federal or state agency or any
        other
        government or governmental agency has passed on, or made any recommendation
        or
        endorsement of, the Securities or the fairness or suitability of the investment
        in the Securities nor have such authorities passed upon or endorsed the merits
        of the offering of the Securities.

      

      (vii) Such
        Purchaser understands that: (A) the Securities have not been registered
        under the Securities Act or any state securities laws, and may not be offered
        for sale, sold, assigned or transferred unless (x) subsequently registered
        thereunder or (y) sold in reliance on an exemption therefrom; and
        (B) except as specifically set forth in the Registration Rights Agreement,
        neither the Company nor any other person is under any obligation to register
        such securities under the Securities Act or any state securities laws or
        to
        comply with the terms and conditions of any exemption thereunder. In this
        regard, such Purchaser represents that he, she or it is familiar with Rule
        144
        adopted pursuant to the Securities Act, and understands the resale limitations
        imposed thereby and by the Securities Act. Such Purchaser is able to bear
        the
        economic risk of his, her or its investment in the Securities for an indefinite
        period of time.

      

      (viii) Such
        Purchaser is an investor in securities of companies in the development stage
        and
        acknowledges that he, she or it has knowledge and experience in financial
        and
        business matters, knows of the high degree of risk associated with
        investments
        generally and particularly investments in the securities of companies in
        the
        development stage such as the Company, is capable of evaluating the merits
        and
        risks of an investment in the Securities and is able to bear the economic
        risk
        of an investment in the Securities in the amount contemplated hereunder.
        Such
        Purchaser has adequate means of providing for his, her or its current financial
        needs and contingencies and will have no current or anticipated future needs
        for
        liquidity which would be jeopardized by the investment in the Securities.
        Such
        Purchaser can afford a complete loss of his, her or its investment in the
        Securities.

      
        
          
          

        

        
          5

          
            

          

        

         

      

       

      (ix) Without
        in any way limiting the representations set forth above, such Purchaser agrees
        not to make any disposition of the Securities (or any part thereof) unless
        and
        until:

      

      (A) There
        is
        then in effect a registration statement under the Securities Act covering
        such
        proposed disposition and such disposition is made in accordance with such
        registration statement; or

      

      (B) (i)
        Such
        Purchaser shall have notified the Company of the proposed disposition and
        shall
        have furnished the Company with a detailed statement of the circumstances
        surrounding the proposed disposition, and if reasonably requested by the
        Company, such Purchaser shall have furnished the Company with an opinion
        of
        counsel, reasonably satisfactory to the Company, that such disposition will
        not
        require registration of such Securities under the Securities Act.
        Notwithstanding the foregoing, such Purchaser also understands and acknowledges
        that the transfer or exercise of the Insider Warrants is subject to the specific
        conditions to such transfer or exercise as outlined herein, as to which such
        Purchaser specifically assents by his, her or its execution hereof.

      

      D. No
        Group. By
        virtue
        of such Purchaser’s purchase of the Insider Warrants under this Agreement, such
        participation shall not be construed so as to make such Purchaser part of,
        or a
        participant in, a “group” as defined in Rule 13d-5 of the Exchange Act with
        respect to any securities of the Company.

      

      E. Rescission
        Right Waiver and Indemnification. 

      

      (i) Such
        Purchaser understands and acknowledges that an exemption from the registration
        requirements of the Securities Act requires that there be no general
        solicitation of purchasers of the Insider Warrants. In this regard, if the
        Offering were deemed to be a general solicitation with respect to the Insider
        Warrants, the offer and sale of such Insider Warrants might not be exempt
        from
        registration and, if not, each of the Purchasers would have a prima facie
        claim,
        subject to applicable defenses, to rescind his, her or its purchase of the
        Insider Warrants. In order to facilitate the completion of the Offering and
        in
        order to protect the Company, its stockholders and the Trust Account from
        claims
        that may adversely affect the Company or the interests of its stockholders,
        such
        Purchaser hereby agrees to waive, to the maximum extent permitted by applicable
        law, any claims, right to sue or rights in law or arbitration, as the case
        may
        be, to seek rescission of his, her or its purchase of the Insider Warrants.
        Such
        Purchaser acknowledges and agrees that this waiver is being made in order
        to
        induce the Company to sell the Insider Warrants to the Purchasers. Such
        Purchaser further agrees that the foregoing waiver of rescission rights shall,
        to the extent permitted under applicable law, apply to any and all known
        or
        unknown actions, causes of action, suits, claims, or proceedings (collectively,
        “Claims”) and related losses, costs, penalties, fees, liabilities and damages,
        whether compensatory, consequential or exemplary, and expenses in connection
        therewith (collectively, “Losses and Expenses”), including, without limitation,
        reasonable attorneys’ and expert witness fees and disbursements and all other
        expenses reasonably incurred in investigating, preparing or defending against
        any Claims, whether pending or threatened, in connection with any present
        or
        future actual or asserted right to rescind the purchase of the Insider Warrants
        hereunder or relating to the purchase of the Insider Warrants and the
        transactions contemplated hereby.

      
        
          
          

        

        
          6

          
            

          

        

         

      

       

      (ii) Such
        Purchaser agrees not to seek recourse against the Trust Account for any reason
        whatsoever in connection with his, her or its purchase of the Insider Warrants
        or any Claim that may arise now or in the future.

      

      (iii) Such
        Purchaser agrees to severally indemnify and hold harmless the Company and
        the
        Trust Account against any and all Losses and Expenses whatsoever to which
        the
        Company and the Trust Account may become subject as a result of the purchase
        of
        the Insider Warrants by any one or more Purchasers, including, but not limited
        to, any Claim by any Purchaser of the Insider Warrants, but only to the extent
        necessary to ensure that such Losses and Expenses do not reduce the amount
        in
        the Trust Account. Further, such Purchaser agrees to severally indemnify
        and
        hold harmless CRT against any and all Losses and Expenses whatsoever to which
        CRT may become subject as a result of the purchase of the Insider Warrants
        by
        any one or more Purchasers, including, but not limited to, any Claim by any
        Purchaser of the Insider Warrants, without limitation. To the extent that
        the
        foregoing several and not joint indemnification obligations may be unenforceable
        for any reason, such Purchaser agrees to make the maximum contribution
        permissible by applicable law to the payment and satisfaction of any Losses
        and
        Expenses relating to Claims that may or will otherwise reduce the amount
        in the
        Trust Account. Notwithstanding anything contained herein or in the Registration
        Statement to the contrary, any Losses and Expenses indemnified or contributed
        to
        hereunder by such Purchaser will be paid based on the number of Insider Warrants
        purchased by such Purchaser relative to the total number of Insider Warrants
        purchased by all Purchasers hereunder, except to the extent that such Claims
        are
        brought by any of the Purchasers, in which case the foregoing indemnity and
        contribution obligations shall only be that of the Purchaser making the Claim,
        it being the understanding and agreement of the Purchasers that each of them
        shall be held harmless by the other as to any Claims, Losses and
        Expenses.

      

      (iv) Such
        Purchaser acknowledges and agrees that the stockholders of the Company,
        including those who purchase the Units in the Offering, are and shall be
        third-party beneficiaries of the foregoing provisions of Section 5G of this
        Agreement.

      

      (v) Such
        Purchaser agrees that to the extent any waiver of rights under this
        Section 5G is ineffective as a matter of law, such Purchaser has offered
        such waiver for the benefit of the Company as an equitable right that shall
        survive any statutory disqualification or bar that applies to a legal right.
        Such Purchaser further acknowledges the receipt and sufficiency of consideration
        received from the Company hereunder in this regard.

      
        
          
          

        

        
          7

          
            

          

        

         

      

       

      Section
        5. Conditions
        Precedent to Closing.
        

      

      A. The
        obligation of each Purchaser to purchase and pay for such Insider Warrants
        as is
        set forth on Exhibit A hereto is subject to the fulfillment, at or before
        the
        Closing, of each of the following conditions:

      

      (i) Representations
        and Warranties.
        The
        representations and warranties of the Company contained in Section 3,
        except for those stated to be made as of the date hereof, shall be true and
        correct in all material respects at and as of the Closing as though then
        made,
        except to the extent of changes caused by the transactions expressly
        contemplated herein or in the prospectus contained in the Registration
        Statement.

      

      (ii) Performance.
        The
        Company shall have performed and complied with all agreements, obligations
        and
        conditions contained in this Agreement that are required to be performed
        or
        complied with by it on or before the Closing.

      

      B. The
        obligations of the Company to each of the Purchasers under this Agreement
        are
        subject to the fulfillment on or before the Closing of each of the following
        conditions:

      

      (i) Representations
        and Warranties.
        The
        representations and warranties of each of the Purchasers contained in
        Section 4 shall be true at and as of the Closing as though then
        made.

      

      (ii) Performance.
        Each of
        the Purchasers shall have performed and complied with all agreements,
        obligations and conditions contained in this Agreement that are required
        to be
        performed or complied with by them on or before the Closing.

      

      (iii) Corporate
        Consents.
        The
        Company shall have obtained the consent of its Board of Directors authorizing
        the execution, delivery and performance of this Agreement and the issuance
        and
        sale of the Insider Warrants hereunder.

      

      C. This
        Agreement evidences the several and not joint agreements between the Company,
        on
        the one hand, and each of the Purchasers, on the other hand. Accordingly,
        (i)
        each Purchaser may (but shall not be required to) waive any closing condition
        with respect to his, her or its obligation (but not the obligation of any
        other
        Purchaser) to close the transactions contemplated hereby; provided, that,
        a
        majority in interest of the Purchasers (based on the relative number of Insider
        Warrants to be purchased), may (but shall not be required to) waive any closing
        condition with respect to all (but not less than all) of the Purchasers’
obligations to close the transactions contemplated hereby, and (ii) the Company
        may (but shall not be required to) waive any closing condition with respect
        to
        all of the Purchasers or any one or more of them and the waiver of a closing
        condition with respect to a particular Purchaser shall not be deemed applicable
        to any other Purchaser unless so determined by the Company.

      

      Section
        6. Termination. This
        Agreement may be terminated by agreement of the Company and at least a
        majority-in-interest of the Purchasers at any time prior to the consummation
        of
        the Closing if the Offering is not closed within the time periods described
        in
        the Underwriting Agreement after the Registration Statement is declared
        effective and this Agreement shall automatically terminate without any further
        action by any party and thereafter be null and void upon termination of the
        Underwriting Agreement or the Company’s initial public
        offering.

      
        
          
          

        

        
          8

          
            

          

        

         

      

       

      Section
        7. Survival.
        All of
        the representations, warranties, covenants and agreements contained in Sections
        4(C)(ix) and 4(E) shall survive the Closing for a period of six (6) months
        except as otherwise specifically provided herein.

      

      Section
        8. Definitions.
        For the
        purposes of this Agreement, the following terms have the meanings set forth
        below:

      

      “Affiliate”
        of any particular Person means any other Person controlling, controlled by
        or
        under common control with such particular Person, where “control” means the
        possession, directly or indirectly, of the power to direct the management
        and
        policies of a Person whether through the ownership of voting securities,
        contract or otherwise.

      

      “Business
        Combination” means a merger, stock exchange, asset acquisition, stock purchase
        or similar business combination of the Company with a target business or
        businesses that is its initial business combination and which meets the size,
        timing and other criteria outlined in the Registration Statement.

      

      “Commission”
        means the United States Securities and Exchange Commission.

      

      “Common
        Stock” means the Company’s Common Stock, par value $0.0001 per
        share.

      

      “Exchange
        Act” means the Securities Exchange Act of 1934, as amended.

      

      “Person”
        means any individual, partnership, corporation, limited liability company,
        association, joint stock company, trust, joint venture, unincorporated
        organization or governmental entity or any department, agency or political
        subdivision thereof.

      

      “Registration
        Statement” means the Company’s registration statement on Form S-1 (File No.
        333-135755), as the same has been and may be amended from time to time hereafter
        (the “Registration Statement”) and filed with the Commission.

      

      “Securities
        Act” means the Securities Act of 1933, as amended.

      

      Section
        9. Miscellaneous.
        

      

      A. Legends.
        

      

      (i) The
        certificates evidencing the Insider Warrants will include the legend set
        forth
        below:

      

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT
        OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAW, AND MAY NOT BE OFFERED,
        SOLD,
        TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES
        ACT
        OF 1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION
        FROM SUCH REGISTRATION IS AVAILABLE. THESE SECURITIES ARE ALSO SUBJECT TO
        INVESTMENT REPRESENTATIONS AND RESTRICTIONS ON TRANSFER OR SALE PURSUANT
        TO AN
        INSIDER WARRANT PURCHASE AGREEMENT DATED ________, 2006 WHICH RESTRICTS THE
        TRANSFER THEREOF AS PROVIDED IN THE PURCHASE
        AGREEMENT, A COPY OF WHICH CAN BE OBTAINED FROM THE COMPANY AT ITS EXECUTIVE
        OFFICES.

      
        
          
          

        

        
          9

          
            

          

        

         

      

       

      (ii) By
        accepting the certificates bearing the aforesaid legend, each Purchaser agrees
        (on behalf of himself, herself or itself), prior to any permitted transfer
        of
        the Insider Warrants represented by the certificates and subject to the
        restrictions contained herein, to give written notice to the Company expressing
        his, her or its desire to effect such transfer and describing briefly the
        proposed transfer. Upon receiving such notice, the Company shall present
        copies
        thereof to its counsel and the following provisions shall apply:

      

      (x) subject
        to the transfer restrictions contained elsewhere in this Agreement, if, in
        the
        reasonable opinion of counsel to the Company, the proposed transfer of such
        Insider Warrants may be effected without registration under the Securities
        Act
        and applicable state securities acts, the Company shall promptly thereafter
        notify the transferring Purchaser, whereupon the transferring Purchaser shall
        be
        entitled to transfer such Insider Warrants, all in accordance with the terms
        of
        the notice delivered by the transferring Purchaser and upon such further
        terms
        and conditions as shall be required to ensure compliance with the Securities
        Act
        and the applicable state securities acts, and, upon surrender of the certificate
        evidencing such Insider Warrants, in exchange therefor, a new certificate
        not
        bearing a legend of the character set forth above if such counsel reasonably
        believes that such legend is no longer required under the Securities Act
        and the
        applicable state securities acts; and

      

      (y) subject
        to the transfer restrictions contained elsewhere in this Agreement, if, in
        the
        reasonable opinion of counsel to the Company, the proposed transfer of such
        Insider Warrants may not be effected without registration under the Securities
        Act or the applicable state securities acts, a copy of such opinion shall
        be
        promptly delivered to the transferring Purchaser, and such proposed transfer
        shall not be made unless such registration is then in effect.

      

      (iii) The
        Company may, from time to time, make stop transfer notations in its records
        and
        deliver stop transfer instructions to its transfer agent to the extent its
        counsel considers it necessary to ensure compliance with the Securities Act
        and
        the applicable state securities acts.

      
        
          
          

        

        
          10

          
            

          

        

         

      

       

      B. Successors
        and Assigns.
        Except
        as otherwise expressly provided herein, all covenants and agreements contained
        in this Agreement by or on behalf of any of the parties hereto shall bind
        and
        inure to the benefit of the respective successors and permitted assigns of
        the
        parties hereto whether so expressed or not. Notwithstanding the foregoing
        or
        anything to the contrary herein, the parties may not assign this
        Agreement.

      

      C. Severability.
        Whenever
        possible, each provision of this Agreement shall be interpreted in such manner
        as to be effective and valid under applicable law, but if any provision of
        this
        Agreement is held to be prohibited by or invalid under applicable law, such
        provision shall be ineffective only to the extent of such prohibition or
        invalidity, without invalidating the remainder of this Agreement.

      

      D. Counterparts.
        This
        Agreement may be executed simultaneously in two or more counterparts, any
        one of
        which need not contain the signatures of more than one party, but all such
        counterparts taken together shall constitute one and the same Agreement.
        Facsimile signatures shall be deemed originals for all purposes
        hereunder.

      

      E. Descriptive
        Headings; Interpretation.
        The
        descriptive headings of this Agreement are inserted for convenience only
        and do
        not constitute a substantive part of this Agreement. The use of the word
        “including” in this Agreement shall be by way of example rather than by
        limitation.

      

      F. Governing
        Law.
        The
        general corporation law of the State of Delaware shall govern all issues
        and
        questions concerning the construction, validity, enforcement and interpretation
        of this Agreement, without giving effect to any choice of law or conflict
        of law
        rules or provisions that would cause the application of the laws of any
        jurisdiction other than the State of Delaware.

      

      G. Notices.
        All
        notices, demands or other communications to be given or delivered under or
        by
        reason of the provisions of this Agreement shall be in writing and shall
        be
        deemed to have been given when delivered personally to the recipient, sent
        to
        the recipient by reputable overnight courier service (charges prepaid) or
        mailed
        to the recipient by certified or registered mail, return receipt requested
        and
        postage prepaid. Such notices, demands and other communications shall be
        sent:

      

      if
        to the
        Company, to:

      

      Apex
        Bioventures Acquisition Corporation

      18
        Farm
        Lane

      Hillsborough,
        California 94010

      Attn:
        Chief Executive Officer

      

      with
        a
        copy (which shall not constitute notice) to:

      

      Mintz
        Levin Cohn Ferris Glovsky and Popeo, P.C.

      666
        Third
        Avenue, 25th Floor 

      New
        York,
        New York 10017 

      Attn:
        Joel I. Papernik, Esq. and Jeffrey P. Schultz, Esq.

      
        
          
          

        

        
          11

          
            

          

        

         

      

       

      and
        if to
        any Purchaser:

      

      at
        the
        address of such Purchaser as set forth in

      the
        records of the Company.

      

      or
        in any
        case to such other address or to the attention of such other 

      person
        as
        the recipient party has specified by prior written notice to 

      the
        sending party.

      

      H. No
        Strict Construction.
        The
        parties hereto have participated jointly in the negotiation and drafting
        of this
        Agreement. In the event an ambiguity or question of intent or interpretation
        arises, this Agreement shall be construed as if drafted jointly by the parties
        hereto, and no presumption or burden of proof shall arise favoring or
        disfavoring any party by virtue of the authorship of any of the provisions
        of
        this Agreement.

      

      {Remainder
        of page left intentionally blank. Signature page(s) to
        follow}

      
        
          
          

        

        
          12

          
            

          

        

         

      

      IN
        WITNESS WHEREOF, the undersigned have executed this Insider Warrant Purchase
        Agreement as of the date first written above. 

       

      
        	 	 	 
	COMPANY:	APEX
                BIOVENTURES ACQUISITION CORPORATION
	 
 	 
 	 
 
	 	By:  	 
	 	
                

                K.
                  Michael Forrest, Chief Executive
                  Officer

              

      

       

      
        	 	  
	 INITIAL
                STOCKHOLDERS:	
                
K.
                MICHAEL FORREST
	 	 
	 	
                
JOHN
                J. CHANDLER
	 	 
	 	
                
NANCY
                T. CHANG

      

       

      
        	 	 	 
	 	EASTON
                ASSOCIATES LLC
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Robert
                J. Easton, Chairman

      

       

      
        	 	 	 
	 	
                INVIVOS
                  LIMITED PARTNERS

                By: Invivos
                  Partners, Ltd., its general partner

              
	 
 	 
 	 
	 	By:	 
	 	
                
Darrel
                J. Elliott, President

      

      
      

       

      
        	 	 	 
	 	TREASURE
                ROAD PARTNERS, LTD.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Gary
                E. Frashier, Manager

      

       

      
        	
              	  
	 	
                
ANTHONY
                J. SINSKEY
	 	 
	 	
                

                ROBERT
                  L. VAN NOSTRAND

              

      

      
        
          
          

        

        
          
          

          
            

          

        

         

      

      EXHIBIT
        A

      

      TO

      

      INSIDER
        WARRANT PURCHASE AGREEMENT

       

      
        	
                 

                Name
                  and Address of
                  Purchaser  

              	 	
                Number
                  of

                Insider
                  Warrants

              	 	
                Aggregate

                Purchase
                  Price

              	 
	
                K.
                  Michael Forrest

                18
                  Farm Lane

                Hillsborough,
                  CA 94010

              	 	 	
                225,000

              	 	
                $

              	
                225,000

              	 
	 	 	 	 	 	 	 	 
	
                John
                  J. Chandler

                467
                  Winged Foot Road

                Half
                  Moon Bay, CA 94019

              	 	 	
                50,000

              	 	
                $

              	
                50,000

              	 
	 	 	 	 	 	 	 	 
	
                Nancy
                  T. Chang

                10301
                  Stella Link

                Houston,
                  TX 77025

              	 	 	
                100,000

              	 	
                $

              	
                100,000

              	 
	 	 	 	 	 	 	 	 
	
                Easton
                  Associates, LLC

                555
                  Fifth Avenue

                New
                  York, NY 10017

              	 	 	
                225,000

              	 	
                $

              	
                225,000

              	 
	 	 	 	 	 	 	 	 
	
                Invivos
                  Limited Partners

                1763
                  Orkney Place

                North
                  Vancouver, BC V7H 2Z1

              	 	 	
                225,000

              	 	
                $

              	
                225,000

              	 
	 	 	 	 	 	 	 	 
	
                Treasure
                  Road Partners, Ltd.

                215
                  West Bandera Road, Suite 114

                Boerne,
                  TX 78006

              	 	 	
                225,000

              	 	
                $

              	
                225,000

              	 
	 	 	 	 	 	 	 	 
	
                Anthony
                  J. Sinskey

                Department
                  of Biology, Room 68-30A

                Massachusetts
                  Institute of Technology

                Cambridge,
                  MA 02139

              	 	 	
                100,000

              	 	
                $

              	
                100,000

              	 
	 	 	 	 	 	 	 	 
	
                Robert
                  L. Van Nostrand

                Mariners
                  Circle

                West
                  Islip, NY 11795

              	 	 	
                100,000

              	 	
                $

              	
                100,000

              	 

      

       

      
        
          
          

        

        
          A-1Unassociated Document

    APEX
      BIOVENTURES
      ACQUISITION
      CORPORATION

    18
FARM
      LANE

    HILLSBOROUGH,
      CA
      94010

    

    ____________,
      2006

     

    To
      Each of the Initial Stockholders

    Listed
      on the Signature Page Hereto

    

    RE:
      DIVIDEND SHARE REPURCHASE RIGHT

     

    Ladies
      and Gentlemen:

     

    This
      letter agreement (this “Agreement”)
      is
      being delivered to you in connection with the Registration Statement on Form
      S-1
      (File No. 333-135755) (as it may be amended and supplemented from time to time,
      the “Registration Statement”) filed by the undersigned, APEX Bioventures
      Acquisition Corporation, a Delaware corporation (the “Company”),
      with
      the Securities and Exchange Commission (the “SEC”)
      on
      July 12, 2006, relating to an initial public offering (the “IPO”)
      of the
      Company’s units (the “Units”).
      Each
      Unit is comprised of one share of the Company’s common stock, par value $0.0001
      per share (the “Common Stock”), and one warrant exercisable for one share of
      Common Stock (each, a “Warrant”)
      to be
      underwritten by CRT Capital Group LLC (the “Underwriter”).

     

    The
      stockholders of the Company listed as “Initial
      Stockholders”
on
      the
      signature page hereto (the “Initial
      Stockholders”)
      purchased an aggregate of 2,434,750 shares of Common Stock at an aggregate
      purchase price of $25,000 (the “Purchased Shares”) and have received an
      aggregate of 351,562 shares of Common Stock issued by the Company in a stock
      dividend on ____________, 2006 (such Common Stock is referred to herein as
      the
“Dividend
      Shares”;
      the
      Dividend Shares and the Purchased Shares are referred to collectively herein
      as
      the “Insider Shares”). The number of Dividend Shares held by each Initial
      Stockholder as of the date hereof is set forth opposite such Initial
      Stockholder’s name on Schedule I hereto.

     

    In
      order
      to ensure that the Insider Shares collectively owned by the Initial Stockholders
      constitute no more or no less than twenty percent (20%) of the Company’s
      outstanding Common Stock immediately after the date on which the
      Underwriter’s
      option (“Over-Allotment option”) to purchase up to 1,406,250
      Units to
      cover
      any over-allotments has been exercised in full or all or any portion thereof
      has
      expired or been terminated, the
      parties hereto agree that the Company shall have the right (“Dividend
      Share Repurchase Right”)
      to
      purchase, at a price of $0.0001 per share (the “Repurchase
      Price”)
      some
      or all of the Dividend Shares in accordance with the terms, and subject to
      the
      conditions, set forth below.

     

    I.  Dividend
      Share Repurchase Right.

     

    A.  Pre-Effective
      Date.
      The
      Company shall have a Dividend Share Repurchase Right (but not the obligation)
      to
      purchase, at the Repurchase Price, all (but not less than all) of the Dividend
      Shares upon determination by the Company’s Board of Directors, in its sole
      discretion, that such repurchase is in the best interests of the Company;
      provided, that, such right must be exercised, if at all, by giving each Initial
      Stockholder notice of the same at any time on or before the date as of which
      the
      Registration Statement is declared effective by the SEC.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    B.  Post-Effective
      Date.
      In the
      event that the Underwriter purchases less than all
      of the
      Option Units
      that are
      subject to the Over-Allotment Option, the Company shall have a Dividend Share
      Repurchase Right (and obligation) to purchase, at the Repurchase Price, such
      number of Dividend Shares from the Initial Stockholders as is determined in
      accordance with Paragraph I.C. below, which right shall be exercised by giving
      each Initial Stockholder notice of the same within two Business Days following
      the date of the expiration or termination (other than by exercise in full by
      the
      Underwriter) of all or any portion of the Over-Allotment Option in accordance
      with the terms thereof (“Expiration
      Date”).
      The
      Dividend Shares determined to be subject to repurchase in accordance with
      Paragraph I.C.
      below
      are
      referred to herein as the “Repurchase
      Shares”.

     

    C.  Repurchase
      Shares.
      The
      total number of Repurchase Shares shall be equal to 351,562 minus 25% of the
      number of Option Units purchased by the Underwriters pursuant to its
      Over-Allotment Option, or:

     

    Repurchase
      Shares = 351,562 - (Option Units purchased x 25%)

     

    The
      portion of the total number of Repurchase Shares each Initial Stockholder shall
      be obligated to sell to the Company upon exercise of its Dividend Share
      Repurchase Right shall be proportionate to their respective ownership percentage
      of Dividend Shares. All calculations resulting in fractional shares shall be
      rounded up to the next whole share.

     

    II.  Escrow;
      Settlement.
      By the
      Effective Date, each Initial Stockholder shall deposit the certificates
      representing their respective Dividend Shares, together with a stock power
      duly
      endorsed in blank for up to the number of shares set forth opposite such Initial
      Stockholders name on Schedule I hereto, with the Escrow Agent pursuant to
the
      Stock
      Escrow Agreement relating to the IPO, by and among the Company and the
      undersigned (the “Stock
      Escrow Agreement”).
      If
      the Company exercises its Dividend Share Repurchase Right, the Repurchase Shares
      shall be transferred on the books of the Company and released to the Company
      from escrow, pursuant to the Stock Escrow Agreement, and the Company shall
      tender payment to each of the Initial Stockholders of the Repurchase Price
      in
      respect of their Repurchase Shares, within five (5) business days of the
      Expiration Date.

     

    III.  Miscellaneous.

     

    A.  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Delaware.

     

    B.  Successors
      and Assigns.
      This
      Agreement shall be binding on each of the undersigned and its successors and
      assigns.

     

    C.  Amendments.
      This
      Agreement may only be amended by a written instrument executed by each of the
      parties hereto.

     

    D.  Entire
      Agreement.
      This
      Agreement (together with the other agreements and documents being delivered
      pursuant to or in connection with this Agreement) constitutes the entire
      agreement of the parties hereto with respect to the subject matter hereof,
      and
      supersedes all prior agreements and understandings of the parties, oral and
      written, with respect to the subject matter hereof.

    
      
        
        

      

      
        
        

        
          

        

      

       

    

     

    E.  Execution
      in Counterparts.
      This
      Agreement may be executed in one or more counterparts, and by the different
      parties hereto in separate counterparts, each of which shall be deemed to be
      an
      original, but all of which taken together shall constitute one and the same
      agreement, and shall become effective when one or more counterparts has been
      signed by each of the parties hereto and delivered to each of the other parties
      hereto. Facsimile signatures shall be deemed originals for all purposes
      hereunder.

     

    [REMAINDER
      OF THIS PAGE LEFT INTENTIONALLY BLANK..]

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    If
      the
      foregoing correctly sets forth our agreement, please sign the enclosed copy
      of
      this Agreement in the space provided below and return it to us.

     

    
      	 	 	 
	 	
              Very
                truly yours,

               

              
                APEX
                  BIOVENTURES ACQUISITION

                CORPORATION

              

            
	 
 	 
 	 
 
	 	By:  	 
	 	
               

              Name:

              Title:

            	
              

            

    

     

    Accepted
      and Agreed by each of the undersigned

    Initial
      Stockholders of the Company as of the date

    first
      set forth above:

    

    FOR
      INDIVIDUALS:

     

     

      
        

      

    

    Print
      Name of Individual

     

     

      
        

      

    

    Signature

    

    FOR
      ENTITIES:

     

     

      
        

      

    

    Print
      Name of Entity

     

     

      
        

      

    

    Signature
      of Authorized Signatory

     

    
       

        
          

        

      

    

    Print
      Name and Title of Authorized Signatory

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    SCHEDULE
      I

    

    
      	
              Initial
                Stockholder

            	 	
              #
                of Dividend Shares

            	 	
              Percentage
                of Total # of Dividend Shares

            	 
	
              K.
                Michael Forrest

            	 	 	
              89,738

            	 	 	
              25.5255

            	
              %

            
	
              John
                J. Chandler

            	 	 	
              22,887

            	 	 	
              6.5101

            	
              %

            
	
              Nancy
                T. Chang

            	 	 	
              21,270

            	 	 	
              6.050

            	
              %

            
	
              Easton
                Associates, LLC

            	 	 	
              57,605

            	 	 	
              16.3855

            	
              %

            
	
              Invivos
                Limited Partners

            	 	 	
              53,064

            	 	 	
              15.0938

            	
              %

            
	
              Treasure
                Road Partners Limited

            	 	 	
              57,605

            	 	 	
              16.3855

            	
              %

            
	
              Anthony
                J. Sinskey

            	 	 	
              21,270

            	 	 	
              6.050

            	
              %

            
	
              Robert
                L. Van Nostrand

            	 	 	
              28,125

            	 	 	
              8.0000

            	
              %

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]