Document:

Exhibit 10.15  

[BANK OF SCOTLAND CORPORATE BANKING LETTERHEAD] 

To:
The Directors

Global Healthcare Partners Limited

Nicon House

2nd Floor

21 Worship Street

London EC2A 2DW 

16
May 2001 

Dear
Sirs: 

Credit
agreement dated 6 April 2000 made between (1) Global Healthcare Partners Limited and (2) The Governor and Company of the Bank of Scotland (the  Credit Agreement). 

	1.
	We
refer to the Credit Agreement. Words and expressions defined in the Credit Agreement shall, unless otherwise defined herein, have the same meanings when used in this letter.
References to Clauses in this letter shall be construed as references to Clauses of the Credit Agreement.

	2.
	Notwithstanding
the terms of the Credit Agreement, this letter shall constitute a Financing Document for the purposes of the Credit Agreement.

	3.
	It
is hereby agreed that, with effect from the satisfaction of the conditions set out in paragraph 4 of this letter, the Credit Agreement shall be amended as follows:

	(a)
	the
following new definitions shall be inserted in Clause 1.1 in alphabetical order: 

"Amendment Letter means an amendment letter dated on or around 16 May 2001 between the Parties amending certain terms of this Agreement." 

"Second Fees Letter means the letter dated on or around the same date as the Amendment Letter from the Bank to Newco relating to certain fees payable to
the Bank in relation to this Agreement and the Amendment Letter, being described on its face as the "Second Fees Letter." " 

	(b)
	the
definition of "Financing Documents" in Clause 1.1 shall be amended by inserting the words "...the Amendment Letter, the Fees Letter, the Second Fees
Letter..." immediately after the words "this Agreement."

	(c)
	the
definition of "PBIDT" in Clause 1.1 shall be amended by:

	(i)
	deleting
the word "and" at the end of paragraph (h) thereof;

	(ii)
	inserting
the word "and" at the end of paragraph (i) thereof; and

	(iii)
	inserting
the following new paragraph (j) at the end of that definition: 

"(j)
any interest payable on the Loan Notes." 

	(d)
	A
new Clause 18.9 shall be inserted as follows:

	"18.9
	Newco
shall pay to the Bank an amendment fee in accordance with the terms of the Second Fees Letter. For the avoidance of debt, all liabilities and obligations of Newco under the
Second Fees Letter shall be deemed to be incurred under this Agreement and shall be secured by the Security Documents." 

	4.
	The
provisions of this letter shall not have any effect until the Bank has received each of the following in form and substance satisfactory to it:

	(a)
	this
letter duly countersigned by Newco; 

 

	(b)
	the
Second Fees Letter duly countersigned by Newco together with the fee payable thereunder; and

	(c)
	a
Certified Copy of a resolution of the Board of Directors of Newco approving and authorizing the execution, delivery and performance of this letter and the Second Fees Letter. 

	5.
	Save
as amended by this letter, the Credit Agreement shall continue in full force and effect in accordance with its terms.

	6.
	This
letter shall be governed by and construed in accordance with English law. 

Please
confirm your acceptance of the terms of this letter by signing and returning to the Bank the enclosed duplicate of this letter. 

Yours
faithfully, 

	/s/ Ian Mitchelmore
 For and on behalf of
 The Governor and Company of the Bank of Scotland

as Bank	 	 
	

We hereby accept and agree the terms of this letter
	

/s/ John M. Wotherspoon
 For and on behalf of
 Global Healthcare Partners Limited,

a company incorporated in England and Wales with

registered numbered 3952340	
 	

 

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Exhibit 10(vvv)  

        THIS
WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR EXEMPTION FROM REGISTRATION UNDER THE FOREGOING LAWS. 

        SUBJECT
TO THE PROVISIONS OF SECTION 1 HEREOF, THIS WARRANT SHALL BE VOID AFTER 5:00 P.M. EASTERN TIME ON JANUARY    , 2005 (the "EXPIRATION DATE"). 

No.
                                         
        

ALLIANCE PHARMACEUTICAL CORP.  

 
 

WARRANT TO PURCHASE [            ] SHARES OF
  COMMON STOCK, $.01 PAR VALUE PER SHARE    
  

        For VALUE RECEIVED, [            ] (the "Warrantholder"), is entitled to purchase, subject to the provisions of this Warrant,
from
Alliance Pharmaceutical Corp., a New York corporation ("Company"), at any time not later than 5:00 P.M., Eastern time, on the Expiration Date, at an exercise price per share equal to $3.38 (the
exercise price in effect being herein called the "Warrant Price"), [            ] shares (the "Warrant Shares") of the Company's Common Stock, par value $.01 per share (the
"Common Stock"). The number of Warrant Shares purchasable upon exercise of this Warrant and the Warrant Price shall be
subject to adjustment from time to time as described herein. Unless otherwise defined herein, capitalized terms are as defined in the Secured Note Purchase Agreement dated of even date herewith (the
"Secured Note Purchase Agreement"). 

        Section 1.    Registration.    The Company shall maintain books for the transfer and registration of the
Warrant. Upon the initial issuance of this Warrant, the Company shall issue and register the Warrant in the name of the Warrantholder. 

        Section 2.    Transfers.    As provided herein, this Warrant may be transferred only pursuant to a registration
statement filed under the Securities Act of 1933, as amended (the "Securities Act"), or an exemption from such registration. Subject to such restrictions, the Company shall transfer this Warrant from
time to time upon the books to be maintained by the Company for that purpose, upon surrender thereof for transfer properly endorsed or accompanied by appropriate instructions for transfer and such
other documents as may be reasonably required by the Company, including, if required by the Company, an opinion of its counsel to the effect that such transfer is exempt from the registration
requirements of the Securities Act, to establish that such transfer is being made in accordance with the terms hereof, and a new Warrant shall be issued to the transferee and the surrendered Warrant
shall be canceled by the Company. 

        Section 3.    Exercise of Warrant.    Subject to the provisions hereof, the Warrantholder may exercise this
Warrant in whole or in part at any time upon surrender of the Warrant, together with delivery of the duly executed Warrant exercise form attached hereto as Appendix A (the "Exercise Agreement")
and payment by cash, certified check or wire transfer of funds for the aggregate Warrant Price for that number of Warrant Shares then being purchased, to the Company during normal business hours on
any business day at the Company's principal executive offices (or such other office or agency of the Company as it may designate by notice to the holder hereof). The Warrant Shares so purchased shall
be deemed to be issued to the holder hereof or such holder's designee, as the record owner of such shares, as of the close of business on the date on which this Warrant shall have been surrendered (or
evidence of loss, theft or destruction thereof and security or indemnity satisfactory to the Company), 

1

 

the Warrant Price shall have been paid and the completed Exercise Agreement shall have been delivered. Certificates for the Warrant Shares so purchased, representing the aggregate number of shares
specified in the Exercise Agreement, shall be delivered to the holder hereof within a reasonable time, not exceeding three (3) business days, after this Warrant shall have been so exercised.
The certificates so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name of such holder or such other name as shall be designated by
such holder. If this Warrant shall have been exercised only in part, then, unless this Warrant has expired, the Company shall, at its expense, at the time of delivery of such certificates, deliver to
the holder a new Warrant representing the number of shares with respect to which this Warrant shall not then have been exercised. As used herein, "business day" means a day, other than a Saturday or
Sunday, on which banks in New York City are open for the general transaction of business. 

        Section 4.    Compliance with the Securities Act.    The Company may cause the legend set forth on the first
page of this Warrant to be set forth on each Warrant or similar legend on any security issued or
issuable upon exercise of this Warrant, unless counsel for the Company is of the opinion as to any such security that such legend is unnecessary. 

        Section 5.    Payment of Taxes.    The Company will pay any documentary stamp taxes attributable to the initial
issuance of Warrant Shares issuable upon the exercise of the Warrant; provided, however, that the Company shall not be required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issuance or delivery of any certificates for Warrant Shares in a name other than that of the registered holder of this Warrant in respect of which such shares are issued, and in such
case, the Company shall not be required to issue or deliver any certificate for Warrant Shares or any Warrant until the person requesting the same has paid to the Company the amount of such tax or has
established to the Company's reasonable satisfaction that such tax has been paid. The holder shall be responsible for income and gift taxes due under federal, state or other law, if any such tax is
due. 

        Section 6.    Mutilated or Missing Warrants.    In case this Warrant shall be mutilated, lost, stolen, or
destroyed, the Company shall issue in exchange and substitution of and upon cancellation of the mutilated Warrant, or in lieu of and substitution for the Warrant lost, stolen or destroyed, a new
Warrant of like tenor and for the purchase of a like number of Warrant Shares, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction of the
Warrant, and with respect to a lost, stolen or destroyed Warrant, reasonable indemnity or bond with respect thereto, if requested by the Company. 

        Section 7.    Reservation of Common Stock.    The Company hereby represents and warrants that there have been
reserved, and the Company shall at all applicable times keep reserved until issued (if necessary) as contemplated by this Section 7, out of the authorized and unissued Common Stock, sufficient
shares to provide for the exercise of the rights of purchase represented by this Warrant. The Company agrees that all Warrant Shares issued upon exercise of the Warrant shall be, at the time of
delivery of the certificates for such Warrant Shares upon the due exercise of this Warrant, duly authorized, validly issued, fully paid and non-assessable shares of Common Stock of the
Company. 

        Section 8.    Adjustments.    Subject and pursuant to the provisions of this Section 8, the Warrant
Price and number of Warrant Shares subject to this Warrant shall be subject to adjustment from time to time as set forth hereinafter. 

        (a)  (i) If
the Company shall, at any time or from time to time while this Warrant is outstanding, pay a dividend or make a distribution on its Common Stock in shares
of Common Stock, subdivide its outstanding shares of Common Stock into a greater number of shares or combine its outstanding shares of Common Stock into a smaller number of shares or issue by
reclassification of its outstanding shares of Common Stock any shares of its capital stock (including any such reclassification in connection with a consolidation or merger in which the Company is the
continuing corporation), then the number of Warrant Shares purchasable upon exercise of the 

2

 

Warrant and the Warrant Price in effect immediately prior to the date upon which such change shall become effective, shall be adjusted by the Company so that the Warrantholder thereafter exercising
the Warrant shall be entitled to receive the number of shares of Common Stock or other capital stock which the Warrantholder would have received if the Warrant had been exercised immediately prior to
such event with an inversely proportional adjustment in the Warrant Price. Such adjustments shall be made successively whenever any event listed above shall occur. 

	(ii)
	If
the Company shall, at any time or from time to time while this Warrant is outstanding, issue by reclassification of its outstanding shares of Common
Stock any shares of its capital stock (including any such reclassification in connection with a consolidation or merger in which the Company is the continuing corporation), then, as a condition of
such reclassification, lawful and adequate provision shall be made whereby each Warrantholder shall thereafter have the right to purchase and receive upon the basis and upon the terms and conditions
herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock, securities or assets as would have been issuable or payable with
respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable upon exercise of the Warrant, had such reclassification not taken place,
and in any such case appropriate provision shall be made with respect to the rights and interests of each Warrantholder to the end that the provisions hereof (including, without limitation, provision
for adjustment of the Warrant Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any shares of stock, securities or properties thereafter deliverable upon
the exercise thereof. The provisions of this sub-paragraph (ii) shall similarly apply to successive reclassifications. 

        (b)  If
any capital reorganization, reclassification of the capital stock of the Company, consolidation or merger of the Company with another corporation in which the Company
is not the survivor, or sale, transfer or other disposition of all or substantially all of the Company's assets to another corporation shall be effected, then, as a condition of such reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition, lawful and adequate provision shall be made whereby each Warrantholder shall thereafter have the right to purchase and
receive upon the basis and upon the terms and conditions herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock,
securities or assets as would have been issuable or payable with respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable upon
exercise of the Warrant, had such reorganization, reclassification, consolidation, merger, sale, transfer or other disposition not taken place, and in any such case appropriate provision shall be made
with respect to the rights and interests of each Warrantholder to the end that the provisions hereof (including, without limitation, provision for adjustment of the Warrant Price) shall thereafter be
applicable, as nearly equivalent as may be practicable in relation to any shares of stock, securities or properties thereafter deliverable upon the exercise thereof. The Company shall not effect any
such consolidation, merger, sale, transfer or other disposition unless prior to or simultaneously with the consummation thereof the successor corporation (if other than the Company) resulting from
such consolidation or merger, or the corporation purchasing or otherwise acquiring such assets or other appropriate corporation or entity shall assume the obligation to deliver to the holder of the
Warrant such shares of stock, securities or assets as, in accordance with the foregoing provisions, such holder may be entitled to purchase, and the other obligations under this Warrant. The
provisions of this paragraph (b) shall similarly apply to successive reorganizations, reclassifications, consolidations, mergers, sales, transfers or other dispositions. 

3

 

        (c)  In
case the Company shall fix a payment date for the making of a distribution to all holders of Common Stock (including any such distribution made in connection with a
consolidation or merger in which the Company is the continuing corporation) of evidences of indebtedness or assets (other than cash dividends or cash distributions payable out of consolidated earnings
or earned surplus or dividends or distributions referred to in Section 8(a)), or subscription rights or warrants, the Warrant Price to be in effect after such payment date shall be determined
by multiplying the Warrant Price in effect immediately prior to such payment date by a fraction, the numerator of which shall be the total number of shares of Common Stock outstanding multiplied by
the Market Price (as defined below) per share of Common Stock immediately prior to such payment date, less the fair market value (as determined by the Company's Board of Directors in good faith) of
said assets or evidences of indebtedness so distributed, or of such subscription rights or warrants, and the denominator of which shall be the total number of shares of Common Stock outstanding
multiplied by such Market Price per share of Common Stock immediately prior to such payment date. "Market Price" as of a particular date (the "Valuation Date") shall mean the following: (a) if
the Common Stock is then listed on a national stock exchange, the closing sale price of one share of Common Stock on such exchange on the last trading day prior to the Valuation Date; (b) if
the Common Stock is then quoted on the NASDAQ Stock Market, Inc. National Market System ("Nasdaq"), the closing sale price of one share of Common Stock on Nasdaq on the last trading day prior
to the Valuation Date or, if no such closing sale price is available, the average of the high bid and the low asked price quoted on Nasdaq on the last trading day prior to the Valuation Date; or
(c) if the Common Stock is not then listed on a national stock exchange or quoted on Nasdaq, the Fair Market Value of one share of Common Stock as of the Valuation Date, shall be determined in
good faith by the Board of Directors of the Company and the Warrantholder. The Board of Directors of the Company shall respond promptly, in writing, to an inquiry by the Warrantholder prior to the
exercise hereunder as to the Market Value of a share of Common Stock as determined by the Board of Directors of the Company. In the event that the Board of Directors of the Company and the
Warrantholder are unable to agree upon the Market Value in respect of subpart (c) hereof, the Company and the Warrantholder shall jointly select an appraiser, who is experienced in such
matters. The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne evenly by the Company and the Warrantholder. Such adjustment shall be made
successively whenever such a payment date is fixed. 

        (d)  For
the term of this Warrant, in addition to the provisions contained above, the Warrant Price shall be subject to adjustment as provided below. An adjustment to the
Warrant Price shall become effective immediately after the payment date in the case of each dividend or distribution and immediately after the effective date of each other event which requires an
adjustment. 

        (e)  In
the event that, as a result of an adjustment made pursuant to this Section 8, the holder of this Warrant shall become entitled to receive any shares of capital
stock of the Company other than shares of Common Stock, the number of such other shares so receivable upon exercise of this Warrant shall be subject thereafter to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the provisions with respect to the Warrant Shares contained in this Warrant. 

        (f)    Except
as provided in subsection (g) hereof, if and whenever the Company shall issue or sell, or is, in accordance with any of subsections (f)(l) through (f)(6)
hereof, deemed to have issued or sold, any shares of Common Stock for a consideration per share less than the Warrant Price in effect immediately prior to the time of such issue or sale, then and in
each such case (a "Trigger Issuance")
the then-existing Warrant Price, shall, at the option of the Majority Holders (as defined below) exercised by notice to the Company, be reduced, as of the close of business on the
effective date of the Trigger Issuance, to (A) the lowest price per share at which any share of Common 

4

 

Stock was issued or sold or deemed to be issued or sold in the Trigger Issuance if such Trigger Issuance occurs or is deemed hereunder to have occurred on or prior to July    , 2003, or
(B) 120% of the lowest price per share at which any share of Common Stock was issued or sold or deemed to be issued or sold in the Trigger Issuance if such Trigger Issuance occurs or is deemed
hereunder to have occurred after July    , 2003; provided, however, that in no event shall the Warrant Price after giving effect to such Trigger Issuance be greater than the Warrant Price
in effect prior to such Trigger Issuance. 

        For
purposes of this subsection (f), the following subsections (f)(l) to (f)(6) shall also be applicable (subject, in each such case, to the provisions of subsection (g) hereof)
and to each other subsection contained in this subsection (f): 

        (f)(1)
Issuance of Rights or Options. In case at any time the Company shall in any manner grant (directly and not by assumption in a merger or otherwise) any warrants or
other rights to subscribe for or to purchase, or any options for the purchase of, Common Stock or any stock or security convertible into or exchangeable for Common Stock (such warrants, rights or
options being called "Options" and such convertible or exchangeable stock or securities being called "Convertible Securities") whether or not such Options or the right to convert or exchange any such
Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon the exercise of such Options or upon the conversion or exchange of such Convertible
Securities (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount, if any, received or receivable by the Company as
consideration for the granting of such Options, plus (y) the aggregate amount of additional consideration payable to the Company upon the exercise of all such Options, plus (z), in the case of
such Options which relate to Convertible Securities, the aggregate amount of additional consideration, if any, payable upon the issue or sale of such Convertible Securities and upon the conversion or
exchange thereof, by (ii) the total maximum number of shares of Common Stock issuable upon the exercise of such Options or upon the conversion or exchange of all such Convertible Securities
issuable upon the exercise of such Options) shall be less than the Warrant Price in effect immediately prior to the time of the granting of such Options, then the total number of shares of Common
Stock issuable upon the exercise of such Options or upon conversion or exchange of the total amount of such Convertible Securities issuable upon the exercise of such Options shall be deemed to have
been issued for such price per share as of the date of granting of such Options or the issuance of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of
adjusting the Warrant Price. Except as otherwise provided in subsection 8(f)(3), no adjustment of the Warrant Price shall be made upon the actual issue of such Common Stock or of such Convertible
Securities upon exercise of such Options or upon the actual issue of such Common Stock upon conversion or exchange of such Convertible Securities. 

        (f)(2)
Issuance of Convertible Securities. In case the Company shall in any manner issue (directly and not by assumption in a merger or otherwise) or sell any Convertible
Securities, whether or not the rights to exchange or convert any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon such
conversion or exchange (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount
received or receivable by the Company as consideration for the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable to the
Company upon the conversion or exchange thereof, by (ii) the total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities) shall be less
than the Warrant Price in effect immediately prior to the time of such issue or sale, then the total maximum number 

5

 

of shares of Common Stock issuable upon conversion or exchange of all such Convertible Securities shall be deemed to have been issued for such price per share as of the date of the issue or sale of
such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Warrant Price, provided that (a) except as otherwise provided in subsection 8(f)(3),
no adjustment of the Warrant Price shall be made upon the actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities and (b) no further adjustment of the
Warrant Price shall be made by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase any such Convertible Securities for which adjustments of the Warrant Price
have been made pursuant to the other provisions of subsection 8(f). 

        (f)(3)
Change in Option Price or Conversion Rate. Upon the happening of any of the following events, namely, if the purchase price provided for in any Option referred to in
subsection 8(f)(l) hereof, the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in subsections 8(f)(l) or 8(f)(2), or the rate at
which Convertible Securities referred to in subsections 8(f)(l) or 8(f)(2) are convertible into or exchangeable for Common Stock shall change at any time (including, but not limited to, changes under
or by reason of provisions designed to protect against dilution), the Warrant Price in effect at the time of such event shall forthwith be readjusted to the Warrant Price which would have been in
effect at such time had such Options or Convertible Securities still outstanding provided for such changed purchase price, additional consideration or conversion rate, as the case may be, at the time
initially granted, issued or sold. On the termination of any Option for which any adjustment was made pursuant to this subsection 8(f) or any right to convert or exchange Convertible Securities for
which any adjustment was made pursuant to this subsection 8(f) (including without limitation upon the redemption or purchase for consideration of Convertible Securities by the Company), the Warrant
Price then in effect hereunder shall forthwith be changed to the Warrant Price which would have been in effect at the time of such termination had such Option or Convertible Securities, to the extent
outstanding immediately prior to such termination, never been issued. 

        (f)(4)
Consideration for Stock. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for cash, the consideration received therefor
shall be deemed to be the gross amount received by the Company therefor without deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed by the Company in
connection therewith. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a consideration other than cash, the amount of the consideration other than cash
received by the Company shall be deemed to be the fair value of such consideration as determined in good faith by the Board of Directors of the Company without deduction of any expenses incurred or
any underwriting commissions or concessions paid or allowed by the Company in connection therewith. In case any Options shall be issued in connection with the issue and sale of other securities of the
Company, together comprising one integral transaction in which no specific consideration is allocated to such Options by the parties thereto, such Options shall be deemed to have been issued for such
consideration as determined in good faith by the Board of Directors of the Company. 

        (f)(5)
Record Date. In case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (i) to receive a dividend or other
distribution payable in Common Stock, Options or Convertible Securities or (ii) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date shall be
deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date
of the granting of such right of subscription or purchase, as the case 

6

 

may be, provided, however, that any such adjustment in the Warrant Price shall be reversed or shall not become effective, as applicable, if the Company abandons the action to which the record date
pertains. 

        (f)(6)
Treasury Shares. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company or
any of its wholly-owned subsidiaries, and the disposition of any such shares (other than the cancellation or retirement thereof) shall be considered an issue or sale of Common Stock for the purpose of
this subsection (f). 

        (g)  Anything
herein to the contrary notwithstanding, the Company shall not be required to make any adjustment of the Warrant Price in the case of the issuance of
(A) capital stock, Options or Convertible Securities issued to directors, officers, employees or consultants of the Company in connection with their service as directors of the Company, their
employment by the Company or their retention as consultants by the Company pursuant to an equity compensation program approved by the Board of Directors of the Company or the compensation committee of
the Board of Directors of the Company, or (B) shares of Common Stock upon the conversion or exercise of Options or Convertible Securities issued prior to the date hereof, and (C) shares
of Common Stock issued or issuable by reason of a dividend, stock split or other distribution on shares of Common Stock (but only to the extent that such a dividend, split or distribution results in
an adjustment in the Warrant Price pursuant to the other provisions of this Warrant). 

        Section 9.    Fractional Interest.    The Company shall not be required to issue fractions of Warrant Shares
upon the exercise of the Warrant. If any fractional share of Common Stock would, except for the provisions of the first sentence of this Section 9, be delivered upon such exercise, the Company,
in lieu of delivering such fractional share, shall pay to the exercising holder of this Warrant an amount in cash equal to the Fair Market Value of such fractional share of Common Stock on the date of
exercise. As used in this Warrant, "Fair Market Value" of a share of Common Stock as of a particular date (the "Valuation Date") shall mean the following: (a) if the Common Stock is then listed
on a national stock exchange, the closing sale price of one share of Common Stock on such exchange on the last trading day prior to the Valuation Date; (b) if the Common Stock is then quoted on
Nasdaq, the closing sale price of one share of Common Stock on Nasdaq on the last trading day prior to the Valuation Date or, if no such closing sale price is available, the average of the high bid
and the low sales price quoted on Nasdaq on the last trading day prior to the Valuation Date; or (c) if the Common Stock is not then listed on a national stock exchange or quoted on Nasdaq, the
Fair Market Value of one share of Common Stock as of the Valuation Date, shall be determined in good faith by the Board of Directors of the Company. 

        Section 10.    Extension of Expiration Date.    If the Company fails to cause any Registration Statement
covering the Warrant Shares to be declared effective prior to the applicable dates set forth therein and the Blackout Period (whether alone, or in combination with any other Blackout Period) continues
for more than 60 days in any 12 month period, or for more than a total of 90 days, then the Expiration Date of this Warrant shall be extended one day for each day beyond the
60-day or 90-day limits, as the case may be, that the Blackout Period continues. 

        Section 11.    Benefits.    Nothing in this Warrant shall be construed to give any person, firm or corporation
(other than the Company and the Warrantholder) any legal or equitable right, remedy or claim, it being agreed that this Warrant shall be for the sole and exclusive benefit of the Company and the
Warrantholder. 

        Section 12.    Notices to Warrantholder.    Upon the happening of any event requiring an adjustment of the
Warrant Price, the Company shall promptly give written notice thereof to the Warrantholder at the address appearing in the records of the Company, stating the adjusted Warrant Price and the adjusted
number of Warrant Shares resulting from such event and setting forth in reasonable detail the 

7

 

method of calculation and the facts upon which such calculation is based. Failure to give such notice to the Warrantholder or any defect therein shall not affect the legality or validity of the
subject adjustment. 

        Section 13.    Identity of Transfer Agent.    The Transfer Agent for the Common Stock is American Stock
Transfer and Trust Company. Upon the appointment of any subsequent transfer agent for the Common Stock or other shares of the Company's capital stock issuable upon the exercise of the rights of
purchase represented by the Warrant, the Company will mail to the Warrantholder a statement setting forth the name and address of such transfer agent. 

        Section 14.    Notices.    Unless otherwise provided, any notice required or permitted under this Warrant shall
be given in writing and shall be deemed effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed given upon such delivery, (ii) if
given by telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed given upon
the earlier of (A) receipt of such notice by the recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an
internationally recognized overnight air courier, then such notice shall be deemed given one day after delivery to such carrier. All notices shall be addressed as follows: (i) if to the
Warrantholder, at its address as set forth in the Company's books and records and, if to the Company, at the address as follows, or at such other address as the Warrantholder or the Company may
designate by ten days' advance written notice to the other: 

        If
to the Company: 

Alliance
Pharmaceutical Corp.

3040 Science Park Road

San Diego, California 92121

Fax: (858) 410-5306

Attention: President 

        With
a copy to: 

Stroock &
Stroock & Lavan LLP

180 Maiden Lane

New York, New York 10038

Attention: Melvin Epstein, Esq.

Fax: (212) 806-6006 

        Section 15.    Registration Rights.    The initial holder of this Warrant is entitled to the benefit of certain
registration rights in respect of the Warrant Shares as provided in the Secured Notes Purchase Agreement, and any subsequent holder hereof may be entitled to such rights. 

        Section 16.    Successors.    All the covenants and provisions hereof by or for the benefit of the
Warrantholder shall bind and inure to the benefit of its respective successors and assigns hereunder. 

        Section 17.    Governing Law.    This Warrant shall be governed by, and construed in accordance with, the
internal laws of the State of New York, without reference to the choice of law provisions thereof. 

        Section 18.    Call Provision.    Notwithstanding any other provision contained herein to the contrary, in the
event that the closing bid price of a share of Common Stock as traded on Nasdaq (or such other exchange or stock market on which the Common Stock may then be listed or quoted) exceeds $7.00
(appropriately adjusted for any stock split, reverse stock split, stock dividend or other reclassification or combination of the Common Stock occurring after the date hereof) for twenty
(20) consecutive trading sessions and all of the Warrant Shares issuable hereunder either (i) are registered pursuant to an effective Registration Statement (as defined in the
Registration Rights Agreement) which is available 

8

 

for resale of the Warrant Shares at all times during the Notice Period (as defined below); (ii) sold pursuant to a Registration Statement or Rule 144 under the Securities Act; or
(iii) are eligible for sale by the Warrantholder pursuant to Rule 144(k) under the Securities Act, the Company, upon thirty (30) days prior written notice (the "Notice Period")
following such twenty (20) day period, to the Warrantholder, may call all, but not less than all, of the Warrants for redemption at a price equal to $.01 per Warrant. Notwithstanding any such
notice by the Company, the Warrantholder shall have the right to exercise this Warrant prior to the end of the Notice Period. 

        Section 19.    No Rights as Stockholder.    Prior to the exercise of this Warrant, the Warrantholder shall not
have or exercise any rights as a stockholder of the Company by virtue of its ownership of this Warrant. 

        Section 20.    Amendment; Waiver.    Any term of this Warrant may be amended or waived (including the
adjustment provisions included in Section 8 of this Warrant) upon the written consent of the Company and the Warrantholder. 

        Section 21.    Section Headings.    The section heading in this Warrant are for the convenience of the Company
and the Warrantholder and in no way alter, modify, amend, limit or restrict the provisions hereof. 

        IN
WITNESS WHEREOF, the Company has caused this Warrant to be duly executed, as of the 23rd day of July, 2002. 

	 	 	ALLIANCE PHARMACEUTICAL CORP.
	

 	
 	

By:	
 	

	 	 	Name:	 	Theodore D. Roth
	 	 	Title:	 	President and Chief Operating Officer

9

   APPENDIX A  

Alliance Pharmaceutical Corp.

WARRANT EXERCISE FORM  

To:
Alliance Pharmaceutical Corp. 

        The
undersigned hereby irrevocably elects to exercise the right of purchase represented by the within Warrant ("Warrant") for, and to purchase thereunder by the payment of the Warrant
Price and surrender of the Warrant,                        shares of Common Stock ("Warrant Shares") provided for therein, and
requests that certificates for the Warrant Shares be issued as follows: 

	 	 	
 Name	 	 
	

 	
 	

 Address	
 	

 
	

 	
 	

	
 	

 
	

 	
 	

 Federal Tax ID or Social Security No.	
 	

 
	

and delivered by	
 	

€ certified mail to the above address, or

€ electronically (provide DWAC instructions:                        ), or

€ other (specify:                        ).

and,
if the number of Warrant Shares shall not be all the Warrant Shares purchasable upon exercise of the Warrant, that a new Warrant for the balance of the Warrant Shares purchasable upon exercise of
this Warrant be registered in the name of the undersigned Warrantholder or the undersigned's Assignee as below indicated and delivered to the address stated below. 

	Dated:	 	 	 	,	 	 	 	 	 	 
	 	 	
	 	 	 	
	 	 	 	 
	

Note: The signature must correspond with the name of the registered holder as written on the first page of the Warrant in every particular, without alteration or enlargement or any change whatever, unless the Warrant has been assigned.	
 	

Signature:	
 	

	

 	
 	

 	
 	

 	
 	

 	
 	

 Name (please print)
	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	

 	
 	

 Address
	

 	
 	

 	
 	

 	
 	

 	
 	

 Federal Identification or

Social Security No.
	

 	
 	

 	
 	

 	
 	

 	
 	

Assignee:
	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	

 	
 	

	

 	
 	

 	
 	

 	
 	

 	
 	

II-1

QuickLinks

WARRANT TO PURCHASE [ ] SHARES OF COMMON STOCK, $.01 PAR VALUE PER SHARE

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