Document:

Exhibit 4.2

Exhibit 4.2

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A
TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS
SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

COMMON STOCK PURCHASE WARRANT

FIBROCELL SCIENCE, INC.

PA-                    

			
	 	 	 
	Warrant Shares:                     
	 	Initial Exercise Date: October 13, 2009

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received,
                     (the “Holder”) is entitled, upon the terms and subject to the limitations on
exercise and the conditions hereinafter set forth, at any time on or after the date hereof (the
“Initial Exercise Date”) and on or prior to the close of business on the five year
anniversary of the Initial Exercise Date (the “Termination Date”) but not thereafter, to
subscribe for and purchase from Fibrocell Science, Inc., a Delaware corporation (the
“Company”), up to                      shares (the “Warrant Shares”) of Common Stock. The
purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 2(b).

Section 1. Definitions. Capitalized terms used and not otherwise defined
herein shall have the meanings set forth in that certain Securities Purchase Agreement (the
“Purchase Agreement”), dated October 13, 2009, among the Company and the purchasers
signatory thereto.

 

 

 

Section 2. Exercise.

a) Exercise of Warrant. Exercise of the purchase rights represented by this
Warrant may be made, in whole or in part, at any time or times on or after the Initial
Exercise Date and on or before the Termination Date by delivery to the Company (or such
other office or agency of the Company as it may designate by notice in writing to
the registered Holder at the address of the Holder appearing on the books of the
Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto;
and, within three (3) Trading Days of the date said Notice of Exercise is delivered to the
Company, the Company shall have received payment of the aggregate Exercise Price of the
 shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank
or, if available, pursuant to the cashless exercise procedure specified in Section 2(c)
below. Notwithstanding anything herein to the contrary, the Holder shall not be required to
physically surrender this Warrant to the Company until the Holder has purchased all of the
Warrant Shares available hereunder and the Warrant has been exercised in full, in which
case, the Holder shall surrender this Warrant to the Company for cancellation within three
(3) Trading Days of the date the final Notice of Exercise is delivered to the Company.
Partial exercises of this Warrant resulting in purchases of a portion of the total number of
Warrant Shares available hereunder shall have the effect of lowering the outstanding number
of Warrant Shares purchasable hereunder in an amount equal to the applicable number of
Warrant Shares purchased. The Holder and the Company shall maintain records showing the
number of Warrant Shares purchased and the date of such purchases. The Company shall
deliver any objection to any Notice of Exercise Form within 2 Business Days of receipt of
such notice. In the event of any dispute or discrepancy, the records of the Holder shall be
controlling and determinative in the absence of manifest error. The Holder and any assignee,
by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of
this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the
number of Warrant Shares available for purchase hereunder at any given time may be less than
the amount stated on the face hereof.

b) Exercise Price. The exercise price per share of the Common Stock under this
Warrant shall be $1.30, subject to adjustment hereunder (the “Exercise Price”).

c) Cashless Exercise. This Warrant may be exercised, in whole or in part, at
such time by means of a “cashless exercise” in which the Holder shall be entitled to receive
a certificate for the number of Warrant Shares equal to the quotient obtained by dividing
[(A-B) (X)] by (A), where:

	 	(A) =	 	the VWAP on the Trading Day immediately preceding the date
on which Holder elects to exercise this Warrant by means of a “cashless
exercise,” as set forth in the applicable Notice of Exercise;

	 	(B) =	 	the Exercise Price of this Warrant, as adjusted hereunder;
and

	 	(X) =	 	the number of Warrant Shares that would be issuable upon
exercise of this Warrant in accordance with the terms of this Warrant if such
exercise were by means of a cash exercise rather than a cashless exercise.

 

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Notwithstanding anything herein to the contrary, on the Termination Date, if permitted
under this Section, this Warrant shall be automatically exercised via cashless exercise
pursuant to this Section 2(c).

d) Mechanics of Exercise.

i. Delivery of Certificates Upon Exercise. Certificates for
 shares purchased hereunder shall be transmitted by the Transfer Agent to
the Holder by crediting the account of the Holder’s prime broker with the
Depository Trust Company through its Deposit Withdrawal Agent Commission
(“DWAC”) system if the Company is then a participant in such
system and either (A) there is an effective Registration Statement
permitting the issuance of the Warrant Shares to or resale of the Warrant
Shares by the Holder or (B) the shares are eligible for resale by the
Holder without volume or manner-of-sale limitations pursuant to Rule 144,
and otherwise by physical delivery to the address specified by the Holder
in the Notice of Exercise by the date that is three (3) Trading Days after
the latest of (A) the delivery to the Company of the Notice of Exercise
Form, (B) surrender of this Warrant (if required), and (C) payment of the
aggregate Exercise Price as set forth above (including by cashless
exercise, if permitted) (such date, the “Warrant Share Delivery
Date”). This Warrant shall be deemed to have been exercised on the
first date on which all of the foregoing have been delivered to the
Company. The Warrant Shares shall be deemed to have been issued, and
Holder or any other person so designated to be named therein shall be
deemed to have become a holder of record of such shares for all purposes,
as of the date the Warrant has been exercised, with payment to the Company
of the Exercise Price (or by cashless exercise, if permitted) and all
taxes required to be paid by the Holder, if any, pursuant to Section
2(d)(vi) prior to the issuance of such shares, having been paid. If the
Company fails for any reason to deliver to the Holder certificates
evidencing the Warrant Shares subject to a Notice of Exercise by the
second (2nd) Trading Day after such Warrant Share Delivery
Date, the Company shall pay to the Holder, in cash, as liquidated damages
and not as a penalty, for each $10,000 of Warrant Shares subject to such
exercise (based on the VWAP of the Common Stock on the date of the
applicable Notice of Exercise), $100 per Trading Day (increasing to $200
per Trading Day on the tenth Trading Day after such liquidated damages
begin to accrue) for each Trading Day after such second (2nd)
Trading Day after such Warrant Share Delivery Date until such certificates
are delivered or Holder rescinds such exercise.

ii. Delivery of New Warrants Upon Exercise. If this Warrant
shall have been exercised in part, the Company shall, at the request of a
Holder and upon surrender of this Warrant certificate, at the time of
delivery of the certificate or certificates representing Warrant Shares,
deliver to Holder a new Warrant evidencing the rights of Holder to
purchase the unpurchased Warrant Shares called for by this Warrant, which
new Warrant shall in all other respects be identical with this Warrant.

 

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iii. Rescission Rights. If, the Company fails to cause the
Transfer Agent to transmit to the Holder a certificate or the certificates
representing the Warrant Shares pursuant to Section 2(d)(i) by the seventh
(7th) Trading Day after such Warrant Share Delivery Date, then,
the Holder will have the right to rescind such exercise.

iv. Compensation for Buy-In on Failure to Timely Deliver
Certificates Upon Exercise. In addition to any other rights available
to the Holder, if the Company fails to cause the Transfer Agent to
transmit to the Holder a certificate or the certificates representing the
Warrant Shares pursuant to an exercise on or before the Warrant Share
Delivery Date, and if after such date the Holder is required by its broker
to purchase (in an open market transaction or otherwise) or the Holder’s
brokerage firm otherwise purchases, shares of Common Stock to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the
Holder anticipated receiving upon such exercise (a “Buy-In”), then
the Company shall (A) pay in cash to the Holder the amount, if any, by
which (x) the Holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased exceeds
(y) the amount obtained by multiplying (1) the number of Warrant Shares
that the Company was required to deliver to the Holder in connection with
the exercise at issue times (2) the price at which the sell order giving
rise to such purchase obligation was executed, and (B) at the option of
the Holder, either reinstate the portion of the Warrant and equivalent
number of Warrant Shares for which such exercise was not honored (in which
case such exercise shall be deemed rescinded) or deliver to the Holder the
number of shares of Common Stock that would have been issued had the
Company timely complied with its exercise and delivery obligations
hereunder. For example, if the Holder purchases Common Stock having a
total purchase price of $11,000 to cover a Buy-In with respect to an
attempted exercise of shares of Common Stock with an aggregate sale price
giving rise to such purchase obligation of $10,000, under clause (A) of
the immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In and,
upon request of the Company, evidence of the amount of such loss. Nothing
herein shall limit a Holder’s right to pursue any other remedies available
to it hereunder, at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief with respect to
the Company’s failure to timely deliver certificates representing shares
of Common Stock upon exercise of the Warrant as required pursuant to the
terms hereof.

 

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v. No Fractional Shares or Scrip. No fractional shares or
scrip representing fractional shares shall be issued upon the exercise of
this Warrant. As to any fraction of a share which the Holder would
otherwise be entitled to purchase upon such exercise, the Company
shall, at its election, either pay a cash adjustment in respect of such
final fraction in an amount equal to such fraction multiplied by the
Exercise Price or round up to the next whole share.

vi. Charges, Taxes and Expenses. Issuance of certificates
for Warrant Shares shall be made without charge to the Holder for any
issue or transfer tax or other incidental expense in respect of the
issuance of such certificate, all of which taxes and expenses shall be
paid by the Company, and such certificates shall be issued in the name of
the Holder or in such name or names as may be directed by the Holder;
provided, however, that in the event certificates for
Warrant Shares are to be issued in a name other than the name of the
Holder, this Warrant when surrendered for exercise shall be accompanied by
the Assignment Form attached hereto duly executed by the Holder and the
Company may require, as a condition thereto, the payment of a sum
sufficient to reimburse it for any transfer tax incidental thereto.

vii. Closing of Books. The Company will not close its
stockholder books or records in any manner which prevents the timely
exercise of this Warrant, pursuant to the terms hereof.

e) Holder’s Exercise Limitations. The Company shall not effect any
exercise of this Warrant, and a Holder shall not have the right to exercise any
portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that
after giving effect to such issuance after exercise as set forth on the applicable
Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other
Persons acting as a group together with the Holder or any of the Holder’s
Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation
(as defined below). For purposes of the foregoing sentence, the number of shares of
Common Stock beneficially owned by the Holder and its Affiliates shall include the
number of shares of Common Stock issuable upon exercise of this Warrant with respect
to which such determination is being made, but shall exclude the number of shares of
Common Stock which would be issuable upon (i) exercise of the remaining,
nonexercised portion of this Warrant beneficially owned by the Holder or any of its
Affiliates and (ii) exercise or conversion of the unexercised or nonconverted
portion of any other securities of the Company (including, without limitation, any
other Common Stock Equivalents) subject to a limitation on conversion or exercise
analogous to the limitation contained herein beneficially owned by the Holder or any
of its Affiliates. Except as set forth in the preceding sentence, for purposes of
this Section 2(e), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act and the rules and regulations promulgated
thereunder, it being acknowledged by the Holder that the Company is not representing
to the Holder that such calculation is in compliance with Section 13(d) of the
Exchange Act and the Holder is solely responsible for any schedules required to be
filed in accordance therewith. To the extent that the

 

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limitation contained in this
Section 2(e) applies, the determination of whether this Warrant is exercisable (in
relation to other securities owned by the Holder together with any Affiliates) and
of which portion of this Warrant is exercisable shall be in the sole discretion of
the Holder, and the submission of a Notice of Exercise shall be deemed to be the
Holder’s determination of whether this Warrant is exercisable (in relation to other
securities owned by the Holder together with any Affiliates) and of which portion of
this Warrant is exercisable, in each case subject to the Beneficial Ownership
Limitation, and the Company shall have no obligation to verify or confirm the
accuracy of such determination. In addition, a determination as to any group
status as contemplated above shall be determined in accordance with Section 13(d) of
the Exchange Act and the rules and regulations promulgated thereunder. For purposes
of this Section 2(e), in determining the number of outstanding shares of Common
Stock, a Holder may rely on the number of outstanding shares of Common Stock as
reflected in (A) the Company’s most recent periodic or annual report filed with the
Commission, as the case may be, (B) a more recent public announcement by the Company
or (C) a more recent written notice by the Company or the Transfer Agent setting
forth the number of shares of Common Stock outstanding. Upon the written or oral
request of a Holder, the Company shall within two Trading Days confirm orally and in
writing to the Holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company, including
this Warrant, by the Holder or its Affiliates since the date as of which such number
of outstanding shares of Common Stock was reported. The “Beneficial Ownership
Limitation” shall be 9.99% of the number of shares of the Common Stock
outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61
days’ prior notice to the Company, may decrease the Beneficial Ownership Limitation
provisions of this Section 2(e) and the provisions of this Section 2(e) shall
continue to apply. Any such decrease will not be effective until the
61st day after such notice is delivered to the Company. The provisions
of this paragraph shall be construed and implemented in a manner otherwise than in
strict conformity with the terms of this Section 2(e) to correct this paragraph (or
any portion hereof) which may be defective or inconsistent with the intended
Beneficial Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations
contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section 3. Certain Adjustments.

a) Stock Dividends and Splits. If the Company, at any time while this Warrant
is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions
on shares of its Common Stock or any other equity or equity equivalent securities payable in
 shares of Common Stock (which, for avoidance of doubt, shall not include any shares of
Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides
outstanding shares of Common Stock into a larger number of shares, (iii) combines (including
by way of reverse stock split) outstanding shares of
Common Stock into a smaller number of shares or (iv) issues by reclassification of
 shares of the Common Stock any shares of capital stock of the Company, then in each case the
Exercise Price shall be multiplied by a fraction of which the numerator shall be the number
of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before
such event and of which the denominator shall be the number of shares of Common Stock
outstanding immediately after such event, and the number of shares issuable upon exercise of
this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of
this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a)
shall become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become effective
immediately after the effective date in the case of a subdivision, combination or
re-classification.

b) Subsequent Equity Sales. If the Company or any Subsidiary thereof, as
applicable, at any time while this Warrant is outstanding, shall sell or grant any option to
purchase, or sell or grant any right to reprice, or otherwise dispose of or issue (or
announce any offer, sale, grant or any option to purchase or other disposition) any Common
Stock or Common Stock Equivalents entitling any Person to acquire shares of Common Stock, at
an effective price per share less than the then Exercise Price (such lower price, the
“Base Share Price” and such issuances collectively, a “Dilutive Issuance”)
(if the holder of the Common Stock or Common Stock Equivalents so issued shall at any time,
whether by operation of purchase price adjustments, reset provisions, floating conversion,
exercise or exchange prices or otherwise, or due to warrants, options or rights per share
which are issued in connection with such issuance, be entitled to receive shares of Common
Stock at an effective price per share that is less than the Exercise Price, such issuance
shall be deemed to have occurred for less than the Exercise Price on such date of the
Dilutive Issuance), then, the Exercise Price shall be reduced and only reduced to equal the
Base Share Price and the number of Warrant Shares issuable hereunder shall be increased such
that the aggregate Exercise Price payable hereunder, after taking into account the decrease
in the Exercise Price, shall be equal to the aggregate Exercise Price prior to such
adjustment. Such adjustment shall be made whenever such Common Stock or Common Stock
Equivalents are issued. Notwithstanding the foregoing, no adjustments shall be made, paid
or issued under this Section 3(b) in respect of an Exempt Issuance. The Company shall
notify the Holder, in writing, no later than the Trading Day following the issuance of any
Common Stock or Common Stock Equivalents subject to this Section 3(b), indicating therein
the applicable issuance price, or applicable reset price, exchange price, conversion price
and other pricing terms (such notice, the “Dilutive Issuance Notice”). For purposes
of clarification, whether or not the Company provides a Dilutive Issuance Notice pursuant to
this Section 3(b), upon the occurrence of any Dilutive Issuance, after the date of such
Dilutive Issuance the Holder is entitled to receive a number of Warrant Shares based upon
the Base Share Price regardless of whether the Holder accurately refers to the Base Share
Price in the Notice of Exercise.

 

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c) Subsequent Rights Offerings. If the Company, at any time while the Warrant
is outstanding, shall issue rights, options or warrants to all holders of Common Stock (and
not to the Holders) entitling them to subscribe for or purchase shares of
Common Stock at a price per share less than the VWAP on the record date mentioned
below, then, the Exercise Price shall be multiplied by a fraction, of which the denominator
shall be the number of shares of the Common Stock outstanding on the date of issuance of
such rights, options or warrants plus the number of additional shares of Common Stock
offered for subscription or purchase, and of which the numerator shall be the number of
 shares of the Common Stock outstanding on the date of issuance of such rights, options or
warrants plus the number of shares which the aggregate offering price of the total number of
 shares so offered (assuming receipt by the Company in full of all consideration payable upon
exercise of such rights, options or warrants) would purchase at such VWAP. Such adjustment
shall be made whenever such rights, options or warrants are issued, and shall become
effective immediately after the record date for the determination of stockholders entitled
to receive such rights, options or warrants.

d) Pro Rata Distributions. If the Company, at any time while this Warrant is
outstanding, shall distribute to all holders of Common Stock (and not to the Holders)
evidences of its indebtedness or assets (including cash and cash dividends) or rights or
warrants to subscribe for or purchase any security other than the Common Stock (which shall
be subject to Section 3(b)), then in each such case the Exercise Price shall be adjusted by
multiplying the Exercise Price in effect immediately prior to the record date fixed for
determination of stockholders entitled to receive such distribution by a fraction of which
the denominator shall be the VWAP determined as of the record date mentioned above, and of
which the numerator shall be such VWAP on such record date less the then per share fair
market value at such record date of the portion of such assets or evidence of indebtedness
or rights or warrants so distributed applicable to one outstanding share of the Common Stock
as determined by the Board of Directors in good faith. In either case the adjustments shall
be described in a statement provided to the Holder of the portion of assets or evidences of
indebtedness so distributed or such subscription rights applicable to one share of Common
Stock. Such adjustment shall be made whenever any such distribution is made and shall
become effective immediately after the record date mentioned above.

 

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e) Fundamental Transaction. If, at any time while this Warrant is outstanding,
(i) the Company, directly or indirectly, in one or more related transactions effects any
merger or consolidation of the Company with or into another Person, (ii) the Company,
directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance
or other disposition of all or substantially all of its assets in one or a series of related
transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer
(whether by the Company or another Person) is completed pursuant to which holders of Common
Stock are permitted to sell, tender or exchange their shares for other securities, cash or
property and has been accepted by the holders of 50% or more of the outstanding Common
Stock, (iv) the Company, directly or indirectly, in one or more related transactions effects
any reclassification, reorganization or recapitalization of the Common Stock or any
compulsory share exchange pursuant to which the Common Stock is effectively converted into
or exchanged for other securities, cash or property, (v) the Company, directly or
indirectly, in one or more related transactions consummates a stock or share purchase
agreement or other business combination (including, without limitation, a reorganization,
recapitalization, spin-off or scheme of arrangement) with another
Person whereby such other Person acquires more than 50% of the outstanding shares of
Common Stock (not including any shares of Common Stock held by the other Person or other
Persons making or party to, or associated or affiliated with the other Persons making or
party to, such stock or share purchase agreement or other business combination) (each a
“Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the
Holder shall have the right to receive, for each Warrant Share that would have been issuable
upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at
the option of the Holder (without regard to any limitation in Section 2(e) on the exercise
of this Warrant), the number of shares of Common Stock of the successor or acquiring
corporation or of the Company, if it is the surviving corporation, and any additional
consideration (the “Alternate Consideration”) receivable as a result of such
Fundamental Transaction by a holder of the number of shares of Common Stock for which this
Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such
exercise, the determination of the Exercise Price shall be appropriately adjusted to apply
to such Alternate Consideration based on the amount of Alternate Consideration issuable in
respect of one share of Common Stock in such Fundamental Transaction, and the Company shall
apportion the Exercise Price among the Alternate Consideration in a reasonable manner
reflecting the relative value of any different components of the Alternate Consideration.
If holders of Common Stock are given any choice as to the securities, cash or property to be
received in a Fundamental Transaction, then the Holder shall be given the same choice as to
the Alternate Consideration it receives upon any exercise of this Warrant following such
Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a
Fundamental Transaction that is (1) an all cash transaction, (2) a “Rule 13e-3 transaction”
as defined in Rule 13e-3 under the Exchange Act, or (3) a Fundamental Transaction involving
a person or entity not traded on a national securities exchange, which results in securities
that are not listed on a Trading Market being issued to the Holder, the Company or any
Successor Entity (as defined below) shall, at the Holder’s option, exercisable at any time
concurrently with, or within 30 days after, the consummation of the Fundamental Transaction,
purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the
Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the
consummation of such Fundamental Transaction. “Black Scholes Value” means the value
of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV”
function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation
of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a
risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the
time between the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date, (B) an expected volatility equal to the greater of 100% and the
100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day
immediately following the public announcement of the applicable Fundamental Transaction, (C)
the underlying price per share used in such calculation shall be the sum of the price per
share being offered in cash, if any, plus the value of any non-cash consideration, if any,
being offered in such Fundamental Transaction and (D) a remaining option time equal to the
time

 

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between the date of the public announcement of the applicable Fundamental Transaction
and the Termination Date. The Company shall cause any successor entity in a Fundamental
Transaction in which the Company is not the survivor (the “Successor Entity”) to
assume in writing all of the obligations of the Company under this Warrant and the other
Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to
written agreements in form and substance reasonably satisfactory to a majority in interest
of the Holders and approved by a majority in interest of the Holders (without unreasonable
delay) prior to such Fundamental Transaction and shall, at the option of the holder of this
Warrant, deliver to the Holder in exchange for this Warrant a security of the Successor
Entity evidenced by a written instrument substantially similar in form and substance to this
Warrant which is exercisable for a corresponding number of shares of capital stock of such
Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable
and receivable upon exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price
which applies the exercise price hereunder to such shares of capital stock (but taking into
account the relative value of the shares of Common Stock pursuant to such Fundamental
Transaction and the value of such shares of capital stock, such number of shares of capital
stock and such exercise price being for the purpose of protecting the economic value of this
Warrant immediately prior to the consummation of such Fundamental Transaction), and which is
reasonably satisfactory in form and substance to a majority in interest of the Holders. Upon
the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to,
and be substituted for (so that from and after the date of such Fundamental Transaction, the
provisions of this Warrant and the other Transaction Documents referring to the “Company”
shall refer instead to the Successor Entity), and may exercise every right and power of the
Company and shall assume all of the obligations of the Company under this Warrant and the
other Transaction Documents with the same effect as if such Successor Entity had been named
as the Company herein.

f) Calculations. All calculations under this Section 3 shall be made to the
nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this
Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a
given date shall be the sum of the number of shares of Common Stock (excluding treasury
 shares, if any) issued and outstanding.

g) Notice to Holder.

i. Adjustment to Exercise Price. Whenever the Exercise Price is
adjusted pursuant to any provision of this Section 3, the Company shall
promptly mail to the Holder a notice setting forth the Exercise Price after
such adjustment and setting forth a brief statement of the facts requiring
such adjustment. If the Company enters into a Variable Rate Transaction,
despite the prohibition thereon in the Purchase Agreement, the Company shall
be deemed to have issued Common Stock or Common Stock Equivalents at the
lowest possible conversion or exercise price at which such securities may be
converted or exercised.

 

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ii. Notice to Allow Exercise by Holder. If (A) the Company
shall declare a dividend (or any other distribution in whatever form) on the
Common Stock, (B) the Company shall declare a special nonrecurring cash
dividend on or a redemption of the Common Stock, (C) the Company shall
authorize the granting to all holders of the Common Stock rights or warrants
to subscribe for or purchase any shares of capital stock of any class or of
any rights, (D) the approval of any stockholders of the Company shall be
required in connection with any reclassification of the Common Stock, any
consolidation or merger to which the Company is a party, any sale or
transfer of all or substantially all of the assets of the Company, or any
compulsory share exchange whereby the Common Stock is converted into other
securities, cash or property, or (E) the Company shall authorize the
voluntary or involuntary dissolution, liquidation or winding up of the
affairs of the Company, then, in each case, the Company shall cause to be
mailed to the Holder at its last address as it shall appear upon the Warrant
Register of the Company, at least 20 calendar days prior to the applicable
record or effective date hereinafter specified, a notice stating (x) the
date on which a record is to be taken for the purpose of such dividend,
distribution, redemption, rights or warrants, or if a record is not to be
taken, the date as of which the holders of the Common Stock of record to be
entitled to such dividend, distributions, redemption, rights or warrants are
to be determined or (y) the date on which such reclassification,
consolidation, merger, sale, transfer or share exchange is expected to
become effective or close, and the date as of which it is expected that
holders of the Common Stock of record shall be entitled to exchange their
 shares of the Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale,
transfer or share exchange; provided that the failure to mail such notice or
any defect therein or in the mailing thereof shall not affect the validity
of the corporate action required to be specified in such notice. To the
extent that any notice provided hereunder constitutes, or contains,
material, non-public information regarding the Company or any of the
Subsidiaries, the Company shall simultaneously file such notice with the
Commission pursuant to a Current Report on Form 8-K. The Holder shall
remain entitled to exercise this Warrant during the period commencing on the
date of such notice to the effective date of the event triggering such
notice except as may otherwise be expressly set forth herein.

 

11

 

Section 4. Transfer of Warrant.

a) Transferability. Subject to compliance with any applicable securities laws
and the conditions set forth in Section 4(d) hereof and to the provisions of Section 4.1 of
the Purchase Agreement, this Warrant and all rights hereunder (including, without
limitation, any registration rights) are transferable, in whole or in part, upon surrender
of this Warrant at the principal office of the Company or its designated agent, together
with a written assignment of this Warrant substantially in the form attached hereto duly
executed by the Holder or its agent or attorney and funds sufficient to pay any transfer
taxes payable upon the making of such transfer. Upon such surrender and, if required,
such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of
the assignee or assignees, as applicable, and in the denomination or denominations specified
in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing
the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.
The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder
for the purchase of Warrant Shares without having a new Warrant issued.

b) New Warrants. This Warrant may be divided or combined with other Warrants
upon presentation hereof at the aforesaid office of the Company, together with a written
notice specifying the names and denominations in which new Warrants are to be issued, signed
by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any
transfer which may be involved in such division or combination, the Company shall execute
and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided
or combined in accordance with such notice. All Warrants issued on transfers or exchanges
shall be dated the original Issue Date and shall be identical with this Warrant except as to
the number of Warrant Shares issuable pursuant thereto.

c) Warrant Register. The Company shall register this Warrant, upon records to
be maintained by the Company for that purpose (the “Warrant Register”), in the name
of the record Holder hereof from time to time. The Company may deem and treat the
registered Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes, absent actual
notice to the contrary.

d) Transfer Restrictions. If, at the time of the surrender of this Warrant in
connection with any transfer of this Warrant, the transfer of this Warrant shall not be
either (i) registered pursuant to an effective registration statement under the Securities
Act and under applicable state securities or blue sky laws or (ii) eligible for resale
without volume or manner-of-sale restrictions or current public information requirements
pursuant to Rule 144, the Company may require, as a condition of allowing such transfer,
that the Holder or transferee of this Warrant, as the case may be, comply with the
provisions of Section 5.7 of the Purchase Agreement.

e) Representation by the Holder. The Holder, by the acceptance hereof,
represents and warrants that it is acquiring this Warrant and, upon any exercise hereof,
will acquire the Warrant Shares issuable upon such exercise, for its own account and not
with a view to or for distributing or reselling such Warrant Shares or any part thereof in
violation of the Securities Act or any applicable state securities law, except pursuant to
sales registered or exempted under the Securities Act.

 

12

 

Section 5. Miscellaneous.

a) No Rights as Stockholder Until Exercise. This Warrant does not entitle the
Holder to any voting rights, dividends or other rights as a stockholder of the Company prior
to the exercise hereof as set forth in Section 2(d)(i).

b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants
that upon receipt by the Company of evidence reasonably satisfactory to it of the loss,
theft, destruction or mutilation of this Warrant or any stock certificate relating to the
Warrant Shares, and in case of loss, theft or destruction, of indemnity or security
reasonably satisfactory to it (which, in the case of the Warrant, shall not include the
posting of any bond), and upon surrender and cancellation of such Warrant or stock
certificate, if mutilated, the Company will make and deliver a new Warrant or stock
certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or
stock certificate.

c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein shall not be
a Business Day, then, such action may be taken or such right may be exercised on the next
succeeding Business Day.

d) Authorized Shares.

The Company covenants that, during the period the Warrant is outstanding, it
will reserve from its authorized and unissued Common Stock a sufficient number of
 shares to provide for the issuance of the Warrant Shares upon the exercise of any
purchase rights under this Warrant. The Company further covenants that its issuance
of this Warrant shall constitute full authority to its officers who are charged with
the duty of executing stock certificates to execute and issue the necessary
certificates for the Warrant Shares upon the exercise of the purchase rights under
this Warrant. The Company will take all such reasonable action as may be necessary
to assure that such Warrant Shares may be issued as provided herein without
violation of any applicable law or regulation, or of any requirements of the Trading
Market upon which the Common Stock may be listed. The Company covenants that all
Warrant Shares which may be issued upon the exercise of the purchase rights
represented by this Warrant will, upon exercise of the purchase rights represented
by this Warrant and payment for such Warrant Shares in accordance herewith, be duly
authorized, validly issued, fully paid and nonassessable and free from all taxes,
liens and charges created by the Company in respect of the issue thereof (other than
taxes in respect of any transfer occurring contemporaneously with such issue).

 

13

 

Except and to the extent as waived or consented to by the Holder, the Company
shall not by any action, including, without limitation, amending its certificate of
incorporation or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms of this
Warrant, but will at all times in good faith assist in the carrying out of all such
terms and in the taking of all such actions as may be necessary or
appropriate to protect the rights of Holder as set forth in this Warrant
against impairment. Without limiting the generality of the foregoing, the Company
will (i) not increase the par value of any Warrant Shares above the amount payable
therefor upon such exercise immediately prior to such increase in par value, (ii)
take all such action as may be necessary or appropriate in order that the Company
may validly and legally issue fully paid and nonassessable Warrant Shares upon the
exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all
such authorizations, exemptions or consents from any public regulatory body having
jurisdiction thereof, as may be, necessary to enable the Company to perform its
obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of
Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the
Company shall obtain all such authorizations or exemptions thereof, or consents
thereto, as may be necessary from any public regulatory body or bodies having
jurisdiction thereof.

e) Jurisdiction. All questions concerning the construction, validity,
enforcement and interpretation of this Warrant shall be determined in accordance with the
provisions of the Purchase Agreement.

f) Restrictions. The Holder acknowledges that the Warrant Shares acquired upon
the exercise of this Warrant, if not registered and the Holder does not utilize cashless
exercise, will have restrictions upon resale imposed by state and federal securities laws.

g) Nonwaiver and Expenses. No course of dealing or any delay or failure to
exercise any right hereunder on the part of Holder shall operate as a waiver of such right
or otherwise prejudice Holder’s rights, powers or remedies, notwithstanding the fact that
all rights hereunder terminate on the Termination Date. If the Company willfully and
knowingly fails to comply with any provision of this Warrant, which results in any material
damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient
to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees,
including those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

h) Notices. Any notice, request or other document required or permitted to be
given or delivered to the Holder by the Company shall be delivered in accordance with the
notice provisions of the Purchase Agreement.

 

14

 

i) Limitation of Liability. No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant to purchase Warrant Shares, and no
enumeration herein of the rights or privileges of Holder, shall give rise to any liability
of Holder for the purchase price of any Common Stock or as a stockholder of the Company,
whether such liability is asserted by the Company or by creditors of the Company.

j) Remedies. The Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific performance of
its rights under this Warrant. The Company agrees that monetary damages would not be
adequate compensation for any loss incurred by reason of a breach by it of the provisions of
this Warrant and hereby agrees to waive and not to assert the defense in any action for
specific performance that a remedy at law would be adequate.

k) Successors and Assigns. Subject to applicable securities laws, this Warrant
and the rights and obligations evidenced hereby shall inure to the benefit of and be binding
upon the successors and permitted assigns of the Company and the successors and permitted
assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any
Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of
Warrant Shares.

l) Amendment. This Warrant may be modified or amended or the provisions hereof
waived with the written consent of the Company and the Holder.

m) Severability. Wherever possible, each provision of this Warrant shall be
interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Warrant shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provisions or the remaining provisions of this Warrant.

n) Headings. The headings used in this Warrant are for the convenience of
reference only and shall not, for any purpose, be deemed a part of this Warrant.

********************

(Signature Pages Follow)

 

15

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized as of the date first above indicated.

	 	 	 	 	 
	 	FIBROCELL SCIENCE, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	Declan Daly 	 
	 	 	Title:  	Chief Executive Officer 	 

 

16

 

NOTICE OF EXERCISE

TO: FIBROCELL SCIENCE, INC.

(1) The undersigned hereby elects to purchase                      Warrant Shares of the Company pursuant
to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of
the exercise price in full, together with all applicable transfer taxes, if any.

(2) Payment shall take the form of (check applicable box):

o in lawful money of the United States; or

o [if permitted] the cancellation of such number of Warrant Shares as is
necessary, in accordance with the formula set forth in subsection 2(c), to
exercise this Warrant with respect to the maximum number of Warrant Shares
purchasable pursuant to the cashless exercise procedure set forth in subsection
2(c).

(3) Please issue a certificate or certificates representing said Warrant Shares in the name of
the undersigned or in such other name as is specified below:

 

The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery
of a certificate to:

 

 

 

(4) Accredited Investor. The undersigned is an “accredited investor” as defined in
Regulation D promulgated under the Securities Act of 1933, as amended.

[SIGNATURE OF HOLDER]

Name of Investing Entity:                                                                 
                                                                              
 

Signature of Authorized Signatory of Investing Entity:                                                                      
                               

Name of Authorized Signatory:                                                                         
                                                               

Title of Authorized Signatory:                                                                           
                                                               

Date:                                                                               
                                                                          
                        

 

 

 

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information.

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, [          ] all of or [                    ] shares of the foregoing Warrant and all rights
evidenced thereby are hereby assigned to

                                                                    
                                             whose address is

                                                                    
                                                                        .

                                                                    
                                                                        

Dated:                     ,                     

	 	 	 	 	 	 	 	 	 	 
	 	Holder’s Signature:
	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	Holder’s Address:
	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 	 
	 	 
	 	 	 	 	 	 	 

Signature Guaranteed:                                                                  
                                                       

	 	 	 
	NOTE:	 	The signature to this Assignment Form must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatsoever, and must be
guaranteed by a bank or trust company. Officers of corporations and those acting in a fiduciary or
other representative capacity should file proper evidence of authority to assign the foregoing
Warrant.Exhibit 10.1

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (the “AGREEMENT”) is entered into effective as of September 3, 2009,
between Fibrocell Science Inc., a Delaware series limited liability company (the “Corporation” or
“Fibrocell Science”), and Declan Daly, an individual residing in and working out of Ireland (the
“Executive”).

WITNESSETH:

Fibrocell Science desires to offer employment to the Executive in order to have the benefits of his
expertise and knowledge. The Executive, in turn, desires to accept employment with Fibrocell
Science on the terms set forth in this Agreement. The parties, therefore, enter into this
Agreement to establish the terms and conditions of the Executive’s employment with Fibrocell
Science.

In consideration of the mutual covenants and representations contained in this Agreement, Fibrocell
Science and the Executive agree to as follows:

	 	1.	 	EMPLOYMENT OF EMPLOYEE; DUTIES: Fibrocell Science agrees to employ the Executive, and
the Executive agrees to be employed by Fibrocell Science, as a senior executive of the
Company with the title of Chief Operating Officer for the period specified in Section 2
(the “Employment Period”), subject to the terms and conditions of this Agreement. During
the Employment Period, as Chief Operating officer, the Executive shall perform all duties
and responsibilities which are consistent with the positions and such additional duties and
responsibilities consistent with such positions as may be from time to time be assigned to
the Executive by the Board of Directors.

The Executive shall devote substantially all of his working time to the business and affairs
of the Company other than during vacations of four weeks per year and periods of illness or
incapacity; provided, however, that nothing in this Agreement shall preclude the Executive
from devoting time required: (i) for serving as a director or officer of any organization or
entity not in a competing business with the Company, and any other businesses in which the
Company becomes involved; (ii) delivering lectures, writing articles or books, or fulfilling
speaking engagements; or (iii) engaging in charitable and community activities provided that
such activities do not interfere with the performance of his duties hereunder.

	 	2.	 	EMPLOYMENT PERIOD: The Employment Period shall begin on the date of this agreement and
shall continue until December 31, 2011. Within ninety (90) days of the expiration of this
Agreement, the Board of Directors shall review this Agreement, and either continue and
extend this Agreement, terminate this Agreement, and/or offer the Executive a different
agreement. The Executive will be notified of such action before the expiration of this
Agreement. This Agreement shall remain in effect until so terminated and/or modified by
the Board. Failure of the Board to take any action within the said ninety-day time period
shall be considered as an extension of this Agreement for an additional one-year period of
time. Notwithstanding anything to the contrary contained in this “sunset provision,” it is
agreed that if a Change of Control occurs while this Agreement is in effect, then this
Agreement shall not be subject to termination or modification under this “sunset
provision,” and shall remain in force for a period of two years after such Change of
Control.

 

 

 

	 	3.	 	SALARY: During the Employment Period, Fibrocell Science shall pay the Executive at a
monthly rate equal to an annual salary of Three Hundred Thousand Dollars (US$300,000.00)
(the “Salary”).
The Board of Directors may periodically review the Executive’s Salary and may determine to
increase (but not decrease) the Executive’s Salary, in accordance with such policies as the
Company may hereafter adopt from time to time, if it deems appropriate. The Salary shall be
payable in equal periodic installments which are not less frequent than the periodic
installments in effect for the salaries of other senior executives of Fibrocell Science.

	 
	 	4.	 	BONUS:

	 	a.	 	The Executive shall be entitled to a one-time bonus in the amount of
One hundred Thousand Dollars (US$100,000.00) (the “Signing Bonus”), payable to the
Executive within thirty (30) days of the execution of this agreement.

	 	b.	 	The Executive shall be entitled to receive an annual bonus (the “Annual
Bonus”), payable each year subsequent to the issuance of final audited financial
statements, but in no case later than 120 days after the end of the Company’s most
recently completed fiscal year. The final determination on the amount of the
Annual Bonus will be made by the Compensation Committee of the Board of Directors,
based primarily on mutually agreed upon criteria, established with respect to the
ensuing fiscal year, within thirty (30) days following the adoption by the Board of
Directors of a budget relating to the ensuing year. Criteria for the Annual Bonus
for 2009 shall be agreed upon prior to or within sixty (60) days after the
execution of this Agreement. The Compensation Committee may also consider other
more subjective factors in making its determination. The targeted amount of the
Annual Bonus shall be fifty percent (50%) of the Executive’s Salary. The actual
Annual Bonus for any given period may be higher or lower than fifty percent (50%).
For any fiscal year in which Executive is employed for less than the full year,
Executive shall receive a bonus which is prorated based on the number of full
months in the year which are worked. For the avoidance of doubt, there shall be no
proration with respect to the calendar year ended December 31, 2009.

	 	c.	 	Upon the Company’s successful completion of a capital raise in excess
of Six Million Dollars (US$6,000,000.00), or a series of capital raises that in
aggregate are in excess of US$6,000,000.00, the Executive shall be entitled to a
one-time bonus in the amount of fifty Thousand Dollars (US$50,000.00) (the “Special
Bonus”), payable to the Executive within thirty (30) days of the closing date of
the capital raise, or series of raises, provided that the Executive is the Chief
Operating Officer at the time of said event.

	 	d.	 	The Executive shall be entitled to receive a one-time bonus in the
amount of Fifty Thousand Dollars (US$50,000.00) (the “Milestone Bonus”) upon the
U.S. Food and Drug Administration’s (the “FDA”) approval of the Company’s Biologics
License Application filing, payable to the Executive within thirty (30) days of the
closing date of such FDA approval, provided that the Executive is the Chief
Operation Officer at the time of said event.

 

 

 

	 	5.	 	BENEFITS:

	 	a.	 	In addition to and except for the matters governed by this Agreement,
the Executive shall be entitled to employee benefits and perquisites, including but
not limited to pension, deferred compensation plans, incentive stock options, group
life insurance, disability, sickness and accident insurance and health benefits
under such plans and programs as provided to other Executives of the Company from
time to time. At the Executive’s option, in lieu of providing group medical
benefits, the Company will reimburse the Executive for health insurance premium
payments made pursuant to a private supplemental health insurance policy in Ireland
by the Executive (currently approximately $500 per month). The Company shall also
reimburse the Executive for a term life policy (currently approximately $200 per
month).

	 	b.	 	The executive shall receive four (4) weeks of vacation annually,
administered in accordance with the Company’s existing vacation policy.

	 	c.	 	The Executive shall be entitled to reimbursement for all reasonable
travel and entertainment expenses incurred by the Executive in connection with the
performance of his duties under this Agreement, including travel to the Company’s
various offices and facilities in the United States and abroad, reimbursement for
attending out-of-town meetings of the Board of Directors, and such other travel as
may be required or appropriate in Executive’s discretion, consistent with duly
approved Company budgets, to fulfill the responsibilities of his office, all in
accordance with such policies and procedures as the Company may from time to time
establish for senior officers and as required to preserve any deductions for
federal income taxation purposes to which the Company may be entitled and subject
to the Company’s normal requirements with respect to reporting and documentation of
such expenses. The Company shall also pay or reimburse Executive for all
membership fees and dues in appropriate professional associations and organizations
utilized by Executive in the course of his service for the Company, as well as all
expenses incurred by the Executive for Executive’s cellular telephone and portable
text messaging including monthly service charges, equipment maintenance and all
other ancillary charges including, but not limited to, text messaging, paging, and
wireless communications.

	 	6.	 	NON-DISCLOSURE; NON-COMPETITION:

	 	a.	 	EMPLOYEE NON-DISCLOSURE, NON-COMPETITION AND ASSIGNMENT OF INVENTIONS
AGREEMENT: As a condition to this Agreement, the Executive agrees to execute and
comply with the terms and conditions of the “Fibrocell Science Inc. Employee
Non-Disclosure, Non-Competition and Assignment of Inventions Agreement” attached as
Exhibit 1.

	 	b.	 	CONFIDENTIALITY: Executive covenants and agrees to keep this Agreement
and its terms confidential and to not discuss or disclose the terms of this
Agreement or any of the discussions or correspondence relating thereto with any
past, present or future employees of Fibrocell Science, and prospective employer
(s) or any representatives thereof, except as otherwise required by law
Notwithstanding the foregoing, the Executive may discuss the terms of this
Agreement with his attorney, financial advisors and immediate family members,
provided he first informs such individuals of their obligation to keep that
information confidential.

 

 

 

	 	7.	 	TERMINATION:

	 	a.	 	TERMINATION BY Fibrocell Science:

	 	i.	 	Fibrocell Science may terminate the Executive’s
employment under this Agreement without Cause (as defined in Section
7a(ii)), at any time by giving notice thereof to the Executive. The
Employment Period shall terminate as of the date of such termination of
the employment.

	 
	 	ii.	 	Fibrocell Science may terminate the Executive’s
employment under this Agreement for Cause at any time by notifying the
Executive of such termination. For all purposes of this Agreement, the
Employment Period shall end as of the date of such termination of
employment. “CAUSE” shall mean the Executive’s

	 	1)	 	Neglect, failure or refusal to timely
perform the duties of his employment (other than by reason of a
physical or mental illness or impairment), or his gross negligence
in the performance of his duties in any material respect.

	 	2)	 	Material breach of any agreements,
covenants and representations in any employment agreement or other
agreement with Fibrocell Science or any affiliate or subsidiary.

	 	3)	 	Material violation of any law, rule,
regulation or by-law of any governmental authority (state, federal
or foreign), any securities exchange or association or other
regulatory or self-regulatory body or agency applicable to Fibrocell
Science or any affiliate or subsidiary or any material general
policy or directive of Fibrocell Science or any affiliate or
subsidiary.

	 	4)	 	Conviction of, or plea of guilty or nolo
contenere to, a crime involving moral turpitude, dishonesty, fraud
or unethical business conduct, or a felony.

	 	5)	 	Violation of the Employee Non-Disclosure,
Non-Competition and Assignment of Inventions Agreement.

	 	6)	 	Giving or accepting undisclosed material
commissions or other payments in cash or kind in connection with the
affairs of Fibrocell Science or its clients.

	 	7)	 	Failure to obtain or maintain any
registration, license or other authorization or approval that
Fibrocell Science or any affiliate or subsidiary reasonably believes
is required in order for the Executive to perform his duties.

	 
	 	8)	 	Habitual abuse of alcohol or drugs.

 

 

 

	 	b.	 	TERMINATION BY THE EMPLOYEE: The Executive may terminate this
Agreement at any time, for any reason or for no reason at all, by giving notice
thereof to Fibrocell Science at least thirty (30) days before the effective date of
such termination. The Employment Period shall terminate as of the date of such
termination of employment.

	 
	 	c.	 	SEVERANCE BENEFITS:

	 	i.	 	Except as provided in 7c(ii), if the Executive’s
employment under this Agreement is terminated before the end of the
Employment Period by Fibrocell Science without Cause or if the Executive
dies or becomes totally disabled (as defined in Section 7d), Fibrocell
Science shall continue to pay to Executive the Base Salary (at a monthly
rate equal to the rate in effect immediately prior to such termination)
for the longer of (x) the remaining Term or (y) twelve (12) months from
the date of termination (the “Termination Payments”), when, as and if
such payments would have been made in the absence of Executive’s
termination. The Termination Payments shall be made regardless of
Executive’s subsequent re-employment as long as any new employment is not
in violation of Section 6 of this Agreement.

	 	ii.	 	If the Executive’s employment under this Agreement
is terminated by Fibrocell Science following a Change of Control without
Cause or by the Executive for Good Reason, Fibrocell Science shall pay
the Executive a lump sum cash payment, within thirty (30) days of the
date of such termination, equal to the greater of (x) the remaining Term
or (y) twelve (12) months from the date of termination (the “Termination
Payments”), when, as and if such payments would have been made in the
absence of Executive’s termination.

	 	iii.	 	If the Executive’s employment under this Agreement
is terminated by Fibrocell Science for Cause or by the Executive without
Good Reason, Fibrocell Science shall have no further obligations to
Executive under this Agreement, and any and all options granted hereunder
shall terminate according to their terms.

	 	iv.	 	“GOOD REASON” means:

	 	1)	 	Any material reduction in the Executive’s
authority, duties or responsibilities occurring after a Change in
Control.

	 	2)	 	Any material failure by Fibrocell Science
to pay or provide the compensation and benefits under this
Agreement; provided that, in each such event, the Executive shall
give Fibrocell Science notice thereof which shall specify in
reasonable detail the circumstances constituting Good Reason, and
there shall be no Good Reason with respect to any such circumstances
cured by Fibrocell Science within thirty (30) days after such
notice.

 

 

 

	 	3)	 	A “CHANGE IN CONTROL” which shall be
deemed to have occurred on:

	 	a.	 	The date of the
acquisition by any “person” (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act), excluding
Fibrocell Science or any of its subsidiaries or affiliates
or any employee benefit plan sponsored by any of the
foregoing, or beneficial ownership (within the meaning of
Rule 13d-3 under the Exchange Act) of 50.1% or more of
either (x) the membership units of Fibrocell Science or (y)
the then outstanding voting securities entitled to vote
generally in the election of directors; or

	 	b.	 	The date the individuals
who constitute the Board as of the date of Fibrocell
Science’s formation(or as emergence from Chapter 11
reorganization) (the “Incumbent Board”) cease for any reason
to constitute at least a majority of the members of the
Board, provided that any individual becoming a member
subsequent to the effective date of the formation whose
admittance was approved by a vote of at least a majority of
the directors then encompassing the Incumbent Board; or

	 	c.	 	The Consummation of a
merger, consolidation, recapitalization, reorganization,
sale or disposition of all or a substantial portion of
Fibrocell Science’s assets, a reverse stock split of
outstanding voting securities, the issuance of shares of
stock of Fibrocell Science in connection with the
acquisition of the stock or assets of another entity,
provided, however, that a Change in Control shall not occur
under this clause:

	 	i.	 	If
consummation of the transaction would result in at
least 51% of the total voting power represented by
the voting securities of Fibrocell Science (or, if
not Fibrocell Science, the entity that succeeds to
all or substantially all of Fibrocell Science’s
business) outstanding immediately after such
transaction being beneficially owned (within the
meaning of Rule 13d-3 promulgated pursuant to the
Exchange Act) by at least 75% of the holders of
outstanding voting securities of Fibrocell Science
immediately prior to the transaction, with the
voting power of each such continuing holders not
substantially altered in the transaction.

 

 

 

	 	4)	 	If the Executive is entitled to receive
payments or other benefits under this Agreement upon the termination
of his employment with Fibrocell Science, the Executive hereby
irrevocably waives the right to receive any payments or other
benefits under any other severance or similar plan maintained by
Fibrocell Science (“OTHER SEVERANCE PLAN”), provided, however, that
if the payments and other benefits provided under such Other
Severance Plan exceed the payments and other benefits under this
Agreement, the Executive, in his sole discretion, may elect to
receive the payments and benefits under such Other Severance Plan in
lieu of the payments and benefits under this Agreement upon his
termination of employment.

	 	d.	 	TERMINATION BY DEATH OR DISABILITY: Except for the right to the
payment of any unpaid Salary or Bonus, as provided in this Agreement, This
Agreement shall terminate automatically upon the Executive’s death. If Fibrocell
Science determines in good faith that the Executive has a “total disability”
(within the meaning of such term), Fibrocell Science may terminate his employment
under this Agreement by notifying the Executive thereof at least thirty (30) days
before the effective date of such termination.

	 	8.	 	NOTICES: Any notices, requests, demands and other communications provided for by this
Agreement shall be sufficient if in writing and if sent by registered or certified mail to
the Executive at the last address he has filed in writhing with Fibrocell Science or, in
the case of Fibrocell Science, to Fibrocell Science’s principal executive offices.

	 	9.	 	EQUITY GRANT: In connection with the restructuring of Fibrocell Science’s predecessor
corporation, Isolagen, Inc., the Executive shall be granted 5% of new equity of Fibrocell
Science issued pursuant to the restructuring agreement (the “Equity” or the “Shares”) prior
to the exit financing. The Equity shall be granted upon the earlier of (i) confirmation of
the restructuring plan, or (ii) the execution of this Agreement. One half (1/2) shall vest
upon entering into this Agreement and one fourth (1/4) shall vest on each successive one
year anniversary. In the event of changes in the structure of Fibrocell Science by reason
of any special dividend, spin-off, split-up, recapitalization, merger, consolidation,
business combination or exchange of such shares and the like, Fibrocell Science shall make
an equitable adjustment to the number of Shares to be granted hereunder. Fibrocell Science
shall make a gross-up payment with respect to the equity grant of 5% noted above. For
purposes of determining the amount of the tax gross-up payment, the Executive will be
deemed to pay federal/Irish income taxes at the highest marginal rate of income taxation in
the calendar year with respect to which the tax gross-up payment is to be made and state
and local (incl. Ireland) taxes at the at the highest marginal rates of taxation in the
state / locality (incl. Ireland) where taxes thereon are lawfully due. Such tax gross-up
payment shall be made during the year following the year with respect to which the
liability for the gross-up payment was incurred.

 

 

 

	 	 	 	In the event that the Executive is terminated without cause, or in the event that Fibrocell
Science does not renew this Agreement at the end of the Employment Period, or in the event
of a change in control, any unvested Shares shall automatically vest upon the earlier of (1)
the termination date or (2) the date of change in control. In the event the employee is
terminated with cause, any unvested
Shares shall be canceled upon the termination date. In the event that the Executive
voluntarily resigns from Fibrocell Science, or in the event that the Executive does not
renew this Agreement at the end of the Employment Period, all unvested Shares shall be
canceled upon the termination date.

	 	10.	 	HEADINGS OF NO EFFECT: The paragraph headings contained in this Agreement are for
reference purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

	 	11.	 	WITHHOLDING TAXES: To the extent that Fibrocell Science subsequently reclassifies the
Executive as an Executive of Fibrocell Science with respect to offering benefits, Fibrocell
Science shall have the right, to the extent permitted by law, to withhold from any payment
of any kind due to the Executive under this Agreement to satisfy the tax withholding
obligations of Fibrocell Science under applicable law.

	 	12.	 	BINDING AGREEMENT; WAIVER: This Agreement shall be binding upon the Executive and
Fibrocell Science on and after the date of this Agreement. The rights and obligations of
Fibrocell Science under this Agreement shall inure to the benefit of and shall be binding
upon Fibrocell Science and any successor of Fibrocell Science, and the benefits of this
Agreement shall inure to the benefit of the Executive’s estate and beneficiaries in the
event of the Executive’s death. Neither party may assign his or its duties or rights under
this Agreement without the prior written consent of the other party; provided, however
that:

	 	a.	 	Fibrocell Science may assign this Agreement to any subsidiary, parent
or affiliate, without the consent of the Executive, and such assignment shall not,
in and of itself, constitute a termination of the employment under this Agreement,
and

	 	b.	 	This Agreement may be assigned without consent in connection with any
sale of all or substantially all of Fibrocell Science’s assets or upon any merger,
consolidation or reorganization of Fibrocell Science with or into any other entity.

	 	13.	 	ENTIRE AGREEMENT; LAST AGREEMENT: This Agreement and the Fibrocell Science Executive
Non-Disclosure, Non-Competition and Assignment of Inventions Agreement constitute the
entire understanding of the Executive and Fibrocell Science with respect to the subject
matter hereof and supersedes and voids any and all prior agreements or understandings,
written or oral, regarding the subject matter hereof. This Agreement may not be changed,
modified, or discharged orally, but only by an instrument in writing signed by the parties.
The parties hereto agree that this Agreement shall not be renewed or renegotiated
following the Employment Period.

 

 

 

	 	14.	 	GOVERNING LAW AND SEVERABILITY: This Agreement shall be governed by the laws of the
Commonwealth of Pennsylvania (without giving effect to choice of law principles or rules
thereof that would cause the application of the laws of any jurisdiction other than the
Commonwealth of Pennsylvania) and the invalidity or unenforceability of any provision
hereof shall in no way affect the validity or enforceability of any other provision. Any
provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective only to the extent of such prohibition or
unenforceability without invalidating or affecting the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction.

	 	15.	 	ARBITRATION: Disputes regarding the Executive’s employment with Fibrocell Science,
including, without limitation, any dispute under this agreement which cannot be resolved by
negotiations between Fibrocell Science and the Executive, but excluding any disputes
regarding the Executive’s compliance with the restrictions of the Executive Non-Disclosure,
Non-Competition and Assignment of Inventions Agreement referred to in Section 6 of this
Agreement, shall be submitted to, and solely determined by, final and binding arbitration
conducted by JAMS/ENDISPUTE, INC.’s arbitration rules applicable to employment disputes,
and the parties agree to be bound by the final award of the arbitrator in any such
proceeding. The arbitrator shall apply the laws of the state of Delaware with respect to
the interpretation or enforcement of any matter relating to this Agreement; in all other
cases the arbitrator shall apply to the state specified in Fibrocell Science’s alternative
dispute resolution policy as in effect from time to time (if any). Arbitration may be held
in Delaware, Pennsylvania, or such other place as the parties hereto may mutually agree,
and shall be conducted solely by a former judge. Judgment upon the award by the arbitrator
may be entered in any court having jurisdiction thereof.

 

 

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed and
delivered by its authorized officers or individually, on the 3rd day of September, 2009.

	 	 	 	 	 
	 	EXECUTIVE

 	 
	 	/s/ Declan Daly
 	 
	 	Declan Daly 	 

	 	 	 	 	 
	 	POST-PETITION CREDITOR INSTRUCTING GROUP

 	 
	 	/s/ George Carris
 	 
	 	Name:  	 	 

 

 

 

Exhibit 1

EMPLOYEE NON-DISCLOSURE, NON-COMPETITION AND ASSIGNMENT OF INVENTIONS AGREEMENT

This Agreement is made between Fibrocell Science Inc., a Delaware corporation (“Fibrocell
Science”), and Declan Daly (the “EMPLOYEE”).

In consideration of the employment or the continued employment of the Employee by Fibrocell
Science, Fibrocell Science and the Employee agree as follows:

	 	1.	 	PROPRIETARY INFORMATION:

	 	a.	 	The Employee agrees that all information, whether or not in writing, of
a private, secret or confidential nature concerning Fibrocell Science’s business,
business relationships or financial affairs (collectively, “Proprietary
Information”) is and shall be the exclusive property of Fibrocell Science. By way
of illustration, but not limitation, Proprietary Information shall include the
source format of Fibrocell Science research reports, research fulfillment process,
information concerning the terms of Fibrocell Science’s strategic partnerships with
agents, service providers, and other business partners, and all inventions,
products, processes, methods, techniques, formulas, compositions, projects,
developments, plans, research data, financial data, personnel data, computer
programs, source and object codes, customer and supplier lists, know-how and
contacts and our knowledge of customers or prospective customers of Fibrocell
Science. The Employee will not disclose any Proprietary Information to any person
or use the same for any purposes (other than in the performance of his duties as an
employee of Fibrocell Science) without written approval by an officer of Fibrocell
Science, either during or after his employment with Fibrocell Science, unless and
until such Proprietary Information has become public knowledge without fault by the
Employee.

	 	b.	 	The Employee agrees that all files, letters, memoranda, reports,
records, data sketches, drawings, notebooks, program listings, or other written,
electronic, photographic, or other tangible material containing Proprietary
Information, whether created by the Employee or others, which shall come into his
custody or possession, shall be and are the exclusive property of the Fibrocell
Science to be used by the Employee only in the performance of his duties for
Fibrocell Science. All such materials or copies thereof and all tangible property
of Fibrocell Science in the custody or possession of the Employee shall be
delivered to Fibrocell Science upon the earlier of (i) a request by Fibrocell
Science or (ii) the termination of his employment. After such delivery, the
Employee shall not retain any such materials or copies thereof or any such tangible
property.

	 	c.	 	The Employee agrees that his obligation not to disclose or to use
information and materials of the types set forth in paragraphs (a) and (b) above,
and his obligation to return materials and tangible property, set forth in
paragraph (b) above, also extends to such types of information, materials and
tangible property of customers of Fibrocell Science or suppliers to Fibrocell
Science or other third parties who may have disclosed or entrusted the same to
Fibrocell Science or to the Employee.

 

 

 

	 	2.	 	DEVELOPMENTS:

	 	a.	 	If at any time or times during his employment, the Employee shall
(either alone or with others) make, conceive, create, discover, invent or reduce to
practice any invention, modification, discovery, design, development, improvement,
process, software program, work of authorship, documentation, formula, data,
technique, know-how, trade secret or intellectual property right whatsoever or any
interest therein (whether or not patentable or registerable under copyright,
trademark or similar statuettes or subject to analogous protection) (herein called
“Developments”) that (i) relates to the business of Fibrocell Science or any
customer of or supplier to Fibrocell Science in connection with such customer’s or
supplier’s activities with Fibrocell Science or any of the products or services
being developed, manufactured or sold by Fibrocell Science or which may be used in
relation therewith, (ii) results from tasks assigned to the Employee by Fibrocell
Science or (iii) results from the use of premises or personal property (whether
tangible or intangible) owned, leased or contracted for by Fibrocell Science, such
Developments and the benefits thereof are and shall immediately become the sole and
absolute property of Fibrocell Science and its assigns, as works made for hire or
otherwise, and the Employee shall promptly disclose to Fibrocell Science (or any
persons designated by it) each such Development and, as may be necessary to ensure
Fibrocell Science’s ownership of such Developments, the Employee hereby assigns any
rights, title and interest (including, but not limited to, any copyrights and
trademarks) in and to the Developments and benefits and/or rights resulting
therefrom to Fibrocell Science and its assigns without further compensation and
shall communicate, without cost or delay, and without disclosing to others the
same, all available information relating thereto (with all necessary plans and
models) to Fibrocell Science.

	 	b.	 	The Employee will, during his employment and at any time thereafter, at
the request and cost of Fibrocell Science, promptly sign, execute, make and do all
such deeds, documents, acts and things as Fibrocell Science and its duly authorized
agents may reasonably require: (i) to apply for, obtain, register and vest in the
name of Fibrocell Science alone (unless Fibrocell Science otherwise directs)
letters patent, copyrights, trademarks or other analogous protection in any country
throughout the world and when so obtained or vested to renew and restore the same;
and (ii) to defend any judicial, opposition or other proceedings in respect of such
applications and any judicial, opposition or other proceedings or petitions or
applications for revocation of such letters patent, copyright, trademark or other
analogous protection.

	 	3.	 	OTHER AGREEMENTS: The Employee hereby represents that, except as the Employee has
disclosed in writing to Fibrocell Science, the Employee is not bound by the terms of any
agreement with any previous employer or other party to refrain from using or disclosing any
trade secret or confidential or proprietary information in the course of his employment
with Fibrocell Science or to refrain from competing, directly or indirectly, with the
business of such previous employer or any other party. The Employee further represents
that, to the best of his knowledge, his performance of all the terms of this Agreement and
as an employee of Fibrocell Science does not and will not breach
any agreement to keep in confidence proprietary information, knowledge or data acquired by
the Employee in confidence or in trust prior to his employment with Fibrocell Science, and
the Employee will not knowingly disclose to Fibrocell Science or induce Fibrocell Science to
use any confidential or proprietary information or material belonging to any previous
employer or others.

 

 

 

	 	4.	 	OBLIGATIONS TO GOVERNMENT OR OTHER THIRD PARTIES: The Employee acknowledges that
Fibrocell Science from time to time may have agreements with the other persons or entities
or with the United States Government, foreign governments, or agencies thereof, which
impose obligations or restrictions on Fibrocell Science regarding inventions made during
the course of work under such agreements or regarding the sensitive nature of such work.
The Employee agrees to be bound by all such obligations and restrictions which are made
known to the Employee and to take all action necessary to discharge the obligations of
Fibrocell Science under such agreements.

	 	5.	 	NO EMPLOYMENT CONTRACT: The Employee understands that this Exhibit 1, by itself, does
not constitute a contract of employment and does not imply that his employment will
continue for any period of time.

	 	6.	 	NONCOMPETITION: During the period of the Employee’s employment with Fibrocell Science
and for a period of twelve (12) months after the termination or expiration thereof, the
Employee will not directly or indirectly (i) within any state or foreign jurisdiction in
which Fibrocell Science or any subsidiary of the Fibrocell Science is then providing
services or products or marketing its services or products (or engaged in active
discussions to provide such services), or within a fifty (50) mile radius of any such state
or foreign jurisdiction, directly or indirectly own any interest in, manage, control,
participate in, consult with, render services for, or in any manner engage in any business
engaged in by Fibrocell Science (unless the Board of Directors shall have authorized such
activity and the Company shall have consented thereto in writing), whether as an individual
proprietor, partner, stockholder, officer, employee, director, joint venture, investor,
lender, or in any other capacity whatsoever (other than as the holder of not more than one
percent (1%) of the total outstanding stock of a publicly-held company), to any business
that directly or indirectly competes with Fibrocell Science, or provides products or
services of the kind or type acquired, developed or being developed, produced, marketed,
distributed, planned, furnished or sold by Fibrocell Science while the Employee was
employed by Fibrocell Science; or (ii) recruit, solicit or induce, or attempt to induce,
any employee or employees of Fibrocell Science to terminate their employment with, or
otherwise cease their relationship with, Fibrocell Science; pr (iii) solicit, divert or
take away, or attempt to divert or take away, the business or patronage (with respect to
products or services of the kind or type developed, produced, marketed, furnished or sold
by Fibrocell Science) of any of the clients, customers or accounts, or prospective clients,
customers or accounts, of Fibrocell Science which were contacted, solicited or served by
the Employee while employed by Fibrocell Science.

	 
	 	 	 	The term “business engaged in by the Company” shall mean the development and
commercialization of autologous fibroblast system technology for application in, among other
therapies, dermatology, surgical and post-traumatic scarring, skin ulcers, cosmetic surgery,
periodontal disease, reconstructive dentistry, vocal chord injuries, urinary incontinence,
and digestive and gastroenterological disorders and other applications relating to the
market for autologous fibroblast or UMC cells and the five
derivative cell lines: osteoblast, chondroblast, fibroblast, adipocyte, and neuroectoderm.

 

 

 

	 	7.	 	OUTSIDE EMPLOYMENT: The Employee agrees not to undertake any other employment (whether
or not compensated) without the prior written consent of Fibrocell Science; provided
however, that nothing herein shall be construed to prevent the Employee from making
investments of his personal assets for from engaging in religious, charitable, community or
other similar activities, so long as such investments and activities do not violate the
provisions of Section 6 hereof or unreasonably interfere with the performance by the
Employee of his duties and responsibilities as an officer or employee of Fibrocell Science.

	 	8.	 	MISCELLANEOUS:

	 	a.	 	Each provision of this Agreement shall be treated as a separate and
independent clause, and the invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision of
this Agreement. Moreover, if one or more of the provisions contained in this
Agreement shall for any reason be held to be excessively broad as to scope,
activity, geography, time-period, subject, or otherwise so as to be unenforceable
at law, such provision or provisions shall be construed by the appropriate judicial
body by limiting or reducing it or them, so as to be enforceable to the maximum
extent compatible with the applicable law as it shall then appear.

	 	b.	 	This Agreement supersedes all prior agreements, written or oral,
between the Employee and Fibrocell Science relating to the subject matter of this
Agreement. This Agreement may not be modified, changed or discharged in whole or
in part, except by an agreement in writing signed by the Employee and Fibrocell
Science. The Employee agrees that any change or changes in his duties, salary or
compensation after the signing of this Agreement shall not affect the validity or
scope of this Agreement.

	 	c.	 	This Agreement will be binding upon the Employee’s heirs, executors and
administrators and will inure to the benefit of Fibrocell Science and its
successors and assigns.

	 	d.	 	No delay or omission by Fibrocell Science in exercising any right under
this Agreement will operate as a waiver of that or any other right. A waiver or
consent given by Fibrocell Science on any one occasion is effective only in that
instance and will not be construed as a bar to or waiver of any right on any other
occasion.

	 	e.	 	The Employee expressly consents to be bound by the provisions of this
Agreement for the benefit of Fibrocell Science or any subsidiary or affiliate
thereof to whose employ the Employee may be transferred without the necessity that
this Agreement be re-executed at the time of such transfer.

	 	f.	 	The restrictions contained in this Agreement are necessary for the
protection of the business and goodwill of Fibrocell Science and are considered by
the Employee to be reasonable for such purpose. The Employee agrees that any
breach of this Agreement is likely to cause Fibrocell Science substantial and
irrevocable damage and therefore, in the event of any such
breach, the Employee agrees that Fibrocell Science, in addition to such other
remedies which may be available, shall be entitled to specific performance and other
injunctive relief.

	 	g.	 	This Agreement is governed by and will be construed as a sealed
instrument under and in accordance with the laws of the State of Pennsylvania.

 

 

 

IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed and
delivered by its authorized officers or individually, on the 3rd day of September, 2009.

	 	 	 	 	 
	 	EMPLOYEE

 	 
	 	/s/ Declan Daly
 	 
	 	Declan Daly

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