Document:

Exhibit 4.7

 

REGISTRATION RIGHTS AGREEMENT

 

Registration Rights Agreement (the “Agreement”), dated as of January 18, 2011, by and between Advanced Life Sciences Holdings, Inc., a corporation organized under the laws of Delaware, USA (the “Company”), and Dutchess Opportunity Fund, II, LP, a Delaware Limited Partnership (the “Investor”).

 

Whereas, in connection with the Investment Agreement by and between the Company and the Investor of this date (the “Investment Agreement”), the Company has agreed to issue and sell to the Investor, from time to time, shares of the Company’s Common Stock, $0.01 par value per share (the “Common Stock”), to be purchased pursuant to the terms and subject to the conditions set forth in the Investment Agreement; and

 

Whereas, to induce the Investor to execute and deliver the Investment Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the “1933 Act”), and applicable state securities laws, with respect to the shares of Common Stock issuable pursuant to the Investment Agreement.

 

Now therefore, in consideration of the foregoing promises and the mutual covenants contained hereinafter and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

Section 1.              DEFINITIONS.

 

As used in this Agreement, the following terms shall have the following meanings:

 

“Execution Date” means the date of this Agreement set forth above.

 

“Person” means a corporation, a limited liability company, an association, a partnership, an organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency.

 

“Principal Market” shall mean Nasdaq Capital Market, the NYSE Amex, the New York Stock Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market or the OTC Bulletin Board, whichever is the principal market on which the Common Stock of the Company is listed or quoted.

 

“Register,” “Registered,” and “Registration” refer to the Registration effected by preparing and filing one (1) or more Registration Statements in compliance with the 1933 Act and pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous basis (“Rule 415”), and the declaration or ordering of effectiveness of such Registration Statement(s) by the United States Securities and Exchange Commission (the “SEC”).

 

“Registrable Securities” means (i) the shares of Common Stock issued or issuable pursuant to the Investment Agreement, (ii) the Commitment Shares, and (ii) any shares of capital stock issued or issuable with respect to such shares of Common Stock, if any, as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, which have not been (x) included in the Registration Statement that has been declared effective by the

 

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SEC, or (y) sold under circumstances meeting all of the applicable conditions of Rule 144 (or any similar provision then in force) under the 1933 Act.

 

“Registration Statement” means the registration statement or statements of the Company filed under the 1933 Act covering the Registrable Securities.

 

All capitalized terms used in this Agreement and not otherwise defined herein shall have the same meaning ascribed to them as in the Investment Agreement.

 

Section 2.              REGISTRATION.

 

(a)           Subject to Section 3(g), the Company shall, within twenty-one (21) days after the date of this Agreement, file with the SEC the Registration Statement or Registration Statements (as is necessary) on Form S-1 (or, if such form is unavailable for such a registration, on such other form as is available for such registration), covering the resale of all of the Registrable Securities, which Registration Statement(s) shall state that, in accordance with Rule 416 promulgated under the 1933 Act, such Registration Statement also covers such indeterminate number of additional shares of Common Stock as may become issuable upon stock splits, stock dividends or similar transactions; provided that in no event shall the Company be required to file a Registration Statement providing for the resale of Registrable Securities in an amount exceeding one-third of the Company’s public float on the date of such filing.

 

(b)           Intentionally Omitted.

 

(c)           The Company agrees not to include any other securities in the Registration Statement covering the Registrable Securities without the Investor’s prior written consent which the Investor may withhold in its sole discretion.

 

Section 3.              RELATED OBLIGATIONS.

 

At such time as the Company is obligated to prepare and file the Registration Statement with the SEC pursuant to Section 2(a), the Company shall have the following obligations with respect to the Registration Statement:

 

(a)           The Company shall use all commercially reasonable efforts to cause such Registration Statement relating to the Registrable Securities to become effective within ninety (90) days after the date that the Registration Statement is filed and shall keep such Registration Statement effective until the earlier to occur of the date on which (A) the Investor shall have sold all the Registrable Securities; or (B) the Company has no right to sell any additional shares of Common Stock under the Investment Agreement (the “Registration Period”).  The Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.  The Investor agrees to provide all information which it is required by law to provide to the Company, including the intended method of disposition of the Registrable Securities, and the Company’s obligations set forth above shall be conditioned on the receipt of such information.

 

(b)           The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to

 

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Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective during the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the Investor thereof as set forth in such Registration Statement.

 

(c)           The Company shall make available to the Investor whose Registrable Securities are included in any Registration Statement and its legal counsel without charge, to the extent such information is not available via EDGAR, (i) if requested by the Investor, promptly after the same is prepared and filed with the SEC at least one (1) copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits, the prospectus included in such Registration Statement (including each preliminary prospectus) and, with regards to such Registration Statement(s), to the extent such materials do not constitute material non-public information, any correspondence by or on behalf of the Company to the SEC or the staff of the SEC and any correspondence from the SEC or the staff of the SEC to the Company or its representatives; and (ii) upon the effectiveness of any Registration Statement, the Company shall make available copies of the prospectus, via EDGAR, included in such Registration Statement and all amendments and supplements thereto.

 

(d)           The Company shall use commercially reasonable efforts to (i) register and qualify the resale of the Registrable Securities covered by the Registration Statement under such other securities or “blue sky” laws of such states in the United States as the Investor reasonably requests; (ii) prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof during the Registration Period; (iii) take such other actions as may be necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(d), or (y) subject itself to general taxation in any such jurisdiction.  The Company shall promptly notify the Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

 

(e)           As promptly as practicable after becoming aware of such event, the Company shall notify the Investor in writing of the happening of any event as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (“Registration Default”) and use all diligent efforts to promptly prepare a supplement or amendment to such Registration Statement and take any other necessary steps to cure the Registration Default (which, if such Registration Statement is on Form S-3, may consist of a document to be filed by the Company with the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as defined below) and to be incorporated by reference in the prospectus) to correct such untrue statement or omission, and make available copies of such supplement or amendment to the Investor. The Company shall also promptly notify the Investor

 

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(i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when the Registration Statement or any post-effective amendment has become effective; (ii) of any request by the SEC for amendments or supplements to the Registration Statement or related prospectus or related information, (iii) of the Company’s reasonable determination that a post-effective amendment to the Registration Statement would be appropriate, (iv) in the event the Registration Statement is no longer effective, or (v) if the Registration Statement is stale as a result of the Company’s failure to timely file reports under the 1934 Act or otherwise. If a Registration Default occurs during the period commencing on the Put Notice Date and ending on the Closing Date, the Company acknowledges that its failure to cure such a Registration Default within ten (10) business days will cause the Investor to suffer damages in an amount that will be difficult to ascertain.

 

(f)            The Company shall use all commercially reasonable efforts to prevent the issuance of any stop order or other suspension of effectiveness of the Registration Statement, or the suspension of the qualification of any of the Registrable Securities for resale in any jurisdiction and, if such an order or suspension is issued,  to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify the Investor holding Registrable Securities being sold of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding concerning the effectiveness of the Registration Statement.

 

(g)           The Company shall permit the Investor and one (1) legal counsel, designated by the Investor, to review and comment upon the Registration Statement and all amendments and supplements thereto at least one (1) calendar day prior to their filing with the SEC.  However, any postponement of a filing of a Registration Statement or any postponement of a request for acceleration or any postponement of the effective date or effectiveness of a Registration Statement by written request of the Investor (collectively, the “Investor’s Delay”) shall not act to trigger any penalty of any kind, or any cash amount due or any in-kind amount due the Investor from the Company under any and all agreements of any nature or kind between the Company and the Investor.  The event(s) of an Investor’s Delay shall act to suspend all obligations of any kind or nature of the Company under any and all agreements of any nature or kind between the Company and the Investor.

 

(h)           Intentionally Omitted.

 

(i)            The Company shall hold in confidence and not make any disclosure of information concerning the Investor unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement, or (v) the Investor has consented to such disclosure.  The Company agrees that it shall, upon learning that disclosure of such information concerning the Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to the Investor and allow the Investor, at the Investor’s expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order covering such information.

 

(j)            The Company shall use all commercially reasonable efforts to maintain designation and quotation of all the Registrable Securities covered by any Registration

 

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Statement on the Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(j).

 

(k)           Intentionally Omitted.

 

(l)            The Company shall provide a transfer agent for all the Registrable Securities not later than the effective date of the first Registration Statement filed pursuant hereto.

 

(m)          If reasonably requested by the Investor, the Company shall (i) as soon as reasonably practical incorporate in a prospectus supplement or post-effective amendment such information as the Investor reasonably determines should be included therein relating to the resale and distribution of Registrable Securities, including, without limitation, information with respect to the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective amendment as soon as reasonably possible after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement if reasonably requested by the Investor.

 

(n)           Intentionally Omitted.

 

(o)           The Company shall otherwise use all commercially reasonable efforts to comply with all applicable rules and regulations of the SEC in connection with any registration hereunder.

 

(p)           Within one (1) business day after the Registration Statement which includes Registrable Securities is declared effective by the SEC, the Company shall deliver to the transfer agent for such Registrable Securities, with copies to the Investor, a written notification that such Registration Statement has been declared effective by the SEC.

 

Section 4.              OBLIGATIONS OF THE INVESTOR.

 

(a)           At least five (5) calendar days prior to the first anticipated filing date of the Registration Statement the Company shall notify the Investor in writing of the information the Company requires from the Investor for the Registration Statement.  It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with respect to the Registrable Securities and the Investor agrees to furnish to the Company that information regarding itself, the Registrable Securities and the intended method of disposition of the Registrable Securities as shall reasonably be required to effect the registration of the resale of such Registrable Securities and the Investor shall execute such documents in connection with such registration as the Company may reasonably request. The Investor covenants and agrees that, in connection with any sale of Registrable Securities by it pursuant to the Registration Statement, it shall comply with the “Plan of Distribution” section of the then current prospectus relating to such Registration Statement.

 

(b)           The Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder.

 

(c)           The Investor agrees that, upon receipt of written notice from the Company of the happening of any event of the kind described in Section 3(f) or the first sentence of Section 3(e), the Investor will immediately discontinue disposition of Registrable Securities pursuant to any

 

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Registration Statement(s) covering the resale of such Registrable Securities until the Investor’s receipt of the copies of the supplemented or amended prospectus contemplated by Section 3(f) or the first sentence of Section 3(e).

 

Section 5.              EXPENSES OF REGISTRATION.

 

All reasonable expenses, other than underwriting discounts and commissions and other than as set forth in the Investment Agreement, incurred in connection with Registration, including comments, filings or qualifications pursuant to Section 2 and Section 3, including, without limitation, all registration, listing and qualifications fees, printing and accounting fees, and fees and disbursements of counsel for the Company, shall be paid by the Company.

 

Section 6.              INDEMNIFICATION.

 

In the event any Registrable Securities are included in the Registration Statement under this Agreement:

 

(a)           To the fullest extent permitted by law, the Company, under this Agreement, will, and hereby does, indemnify, hold harmless and defend the Investor, the directors, officers, partners, employees, counsel, agents, representatives of, and each Person, if any, who controls, the Investor within the meaning of the 1933 Act or the Securities Exchange Act of 1934, as amended (the “1934 Act”) (each, an “Indemnified Person”), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys’ fees, amounts paid in settlement or expenses, joint or several (collectively, “Claims”), incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto (“Indemnified Damages”), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in the Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other “blue sky” laws of any jurisdiction in which the Investor has requested in writing that the Company register or qualify the Shares (“Blue Sky Filing”), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which the statements therein were made, not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus for the offer of the Registrable Securities (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading, or (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to the Registration Statement (the matters in the foregoing clauses (i) through (iii) being, collectively, “Violations”). Subject to the restrictions set forth in Section 6(c) the Company shall reimburse each Indemnified Person, promptly as such expenses are incurred and are due and payable, for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim arising out of or based upon a Violation which is due to the inclusion in the Registration

 

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Statement of the information furnished to the Company by any Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto; (ii) shall not be available to the extent such Claim is based on (A) a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company; (B) the Indemnified Person’s use of an incorrect prospectus despite being promptly advised in advance by the Company in writing not to use such incorrect prospectus; (C) the manner of sale of the Registrable Securities by the Investor or of the Investor’s failure to register as a dealer under applicable securities laws; (D) any omission of the Investor to notify the Company of any material fact that should be stated in the Registration Statement or prospectus relating to the Investor or the manner of sale; and (E) any amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld, conditioned or delayed.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the resale of the Registrable Securities by the Investor pursuant to the Registration Statement; and (iii) shall not be available to the extent the Claim arises out of the gross negligence, bad faith or willful misconduct of the Indemnified Person.

 

(b)           In connection with any Registration Statement in which the Investor is participating, the Investor agrees to severally and jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, officers, employees, counsel, agents and representatives and each Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act (each, an “Indemnified Party”), against any Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation is due to (i) the inclusion in the Registration Statement of the written information furnished to the Company by the Investor expressly for use in connection with such Registration Statement; (ii) a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company or the Investor’s use of an incorrect prospectus despite being timely advised by the Company in writing not to use such incorrect prospectus; (iii) the Investor’s failure to register as a dealer under applicable securities laws; (iv) the Investor’s gross negligence, bad faith or willful misconduct; or (v) any omission of the Investor to notify the Company of any material fact that should be stated in the Registration Statement or prospectus relating to the Investor or the manner of sale; and, subject to Section 6(c), the Investor will reimburse any legal or other expenses reasonably incurred by them in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor, which consent shall not be unreasonably withheld, conditioned or delayed.  Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the resale of the Registrable Securities by the Investor pursuant to the Registration Statement.

 

(c)           Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying

 

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party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party, as the case may be, shall have the right to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party, the representation by counsel of the Indemnified Person or Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding.  The indemnifying party shall pay for only one (1) separate legal counsel for the Indemnified Persons or the Indemnified Parties, as applicable, and such counsel shall be selected by the Investor, if the Investor is entitled to indemnification hereunder, or the Company, if the Company is entitled to indemnification hereunder, as applicable.  The Indemnified Party or Indemnified Person shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or Claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding affected without its written consent; provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim.  Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made.  The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

 

(d)           The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

 

Section 7.              CONTRIBUTION.

 

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no contribution shall be made under circumstances where the indemnifying party would not have been liable for indemnification under the fault standards set forth in Section 6; (ii) no seller of Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the sale of such Registrable Securities.

 

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Section 8.              REPORTS UNDER THE 1934 ACT.

 

With a view to making available to the Investor the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public without registration (“Rule 144”), provided that the Investor holds any Registrable Securities which are eligible for resale under Rule 144 and such information is necessary in order for the Investor to sell such Securities pursuant to Rule 144, the Company agrees to:

 

(a)           make and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)           file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements (it being understood that nothing herein shall limit the Company’s obligations under Section 5(c) of the Investment Agreement) and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and

 

(c)           furnish to the Investor, promptly upon request, (i) a written statement by the Company that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act applicable to the Company, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration.

 

Section 9.              NO ASSIGNMENT OF REGISTRATION RIGHTS.

 

This Agreement and the rights, agreements or obligations hereunder may not be assigned, by operation of law, merger or otherwise, and without the prior written consent of the other party hereto, and any purported assignment by a party without prior written consent of the other party will be null and void and not binding on such other party.  Subject to the preceding sentence, all of the terms, agreements, covenants, representations, warranties and conditions of this Agreement are binding upon, and inure to the benefit of and are enforceable by, the parties and their respective successors and assigns.

 

Section 10.            AMENDMENT OF REGISTRATION RIGHTS.

 

The provisions of this Agreement may be amended only with the written consent of the Company and the Investor.

 

Section 11.            MISCELLANEOUS.

 

(a)           Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile or e-mail with the signed document attached in PDF format (provided a confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall be:

 

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If to the Company:

 

Advanced Life Sciences Holdings, Inc.

1440 Davey Road
 Woodridge, IL 60517

Telephone: (630) 754-4343

Facsimile:

E-mail: jflavin@advancedlifesciences.com

Attention: John L. Flavin

 

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

 

Winston & Strawn LLP

35 West Wacker Drive

Chicago, IL 60601

Telephone: (312) 558-6376

Facsimile: (312) 558-5700

E-mail: tbloomquist@winston.com

Attention: Todd M. Bloomquist

 

If to the Investor:

 

Dutchess Opportunity Fund, II, LP

50 Commonwealth Ave, Suite 2

Boston, MA 02116

Telephone: (617) 301-4700

Facsimile: (617) 249-0947

E-mail:

Attention:

 

Each party shall provide five (5) business days prior notice to the other party of any change in address, phone number, facsimile number or e-mail address.

 

(b)           Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

 

(c)           This Agreement and the Investment Agreement constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein.

 

(d)           This Agreement and the Investment Agreement supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

 

(e)           The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.  Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall include the feminine.  This

 

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Agreement shall not be construed as if it had been prepared by one of the parties, but rather as if all the parties had prepared the same.

 

(f)            This Agreement may be executed in two or more identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement.  This Agreement, once executed by a party, may be delivered to the other party hereto by facsimile transmission or by e-mail delivery of a PDF format of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

 

(g)           Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

(h)           In case any provision of this Agreement is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Agreement will not in any way be affected or impaired thereby.

 

Section 12.            DISPUTES SUBJECT TO ARBITRATION GOVERNED BY MASSACHUSETTS LAW.

 

All disputes arising under this agreement shall be governed by and interpreted in accordance with the laws of the Commonwealth of Massachusetts, without regard to principles of conflict of laws.  The parties to this agreement will submit all disputes arising under this agreement to arbitration in Boston, Massachusetts before a single arbitrator of the American Arbitration Association (“AAA”).  The arbitrator shall be selected by application of the rules of the AAA, or by mutual agreement of the parties, except that such arbitrator shall be an attorney admitted to practice law in the Commonwealth of Massachusetts.  No party to this agreement will challenge the jurisdiction or venue provisions as provided in this section. Nothing contained herein shall prevent the party from obtaining an injunction.

 

*.*.*

 

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SIGNATURE PAGE OF REGISTRATION RIGHTS AGREEMENT

 

Your signature on this Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement and the Registration Rights Agreement as of the date first written above.

 

The undersigned signatory hereby certifies that he has read and understands the Registration Rights Agreement, and the representations made by the undersigned in this Registration Rights Agreement are true and accurate, and agrees to be bound by its terms.

 

	
 
    	
DUTCHESS   OPPORTUNITY FUND, II, LP,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Douglas H. Leighton
    
	
 
    	
Douglas   H. Leighton
    
	
 
    	
Managing   Member of:
    
	
 
    	
Dutchess   Capital Management, II, LLC
    
	
 
    	
General   Partner to:
    
	
 
    	
Dutchess   Opportunity Fund, II, LP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ADVANCED   LIFE SCIENCES HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael T. Flavin
    
	
 
    	
Michael   T. Flavin, Ph.D.
    
	
 
    	
Chairman   of the Board and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John L. Flavin
    
	
 
    	
John   L. Flavin
    
	
 
    	
President   and Chief Financial Officer
    

 

Signature Page to Registration Rights AgreementExhibit 10.22

 

EXECUTION COPY

 

FORBEARANCE AGREEMENT

 

THIS FORBEARANCE AGREEMENT (the “Forbearance”), dated as of November 23, 2010 is among ADVANCED LIFE SCIENCES, INC. (“Borrower”), ADVANCED LIFE SCIENCES HOLDINGS, INC. (“Holdings”) and MICHAEL FLAVIN (“Flavin” and together with Holdings, the “Guarantors”) and THE LEADERS BANK (“Lender”).

 

WITNESSETH

 

WHEREAS, on September 9, 2010, the Borrower and Guarantors entered into that certain Second Amended and Restated Loan Agreement (the “Loan Agreement”), pursuant to which Lender agreed to continue extending financial accommodations to the Borrower in the form of a term loan in the principal amount of $8,500,000 (the “Loan”);

 

WHEREAS, in furtherance of the Loan, Borrower executed the Second Amended and Restated promissory note in the principal amount of $8,500,000 in favor of the Lender (the “Note”) on September 9, 2010;

 

WHEREAS, to secure the Borrower’s obligations under the Note and Loan Agreement, Borrower also executed an Amended and Restated Security Agreement dated September 9, 2010 (the “Borrower’s Security Agreement”) in favor of Lender pursuant to which Borrower granted a security interest in all of Borrower’s assets;

 

WHEREAS, as further security for the Loan, each Guarantor executed a guaranty dated September 9, 2010 (together, the “Guaranties”);

 

WHEREAS, Holdings also executed an Amended and Restated Security Agreement (“Holdings Security Agreement”), Amended and Restated Pledge Agreement (“Pledge Agreement”), and Collateral Assignment of Abbott License (“Collateral Assignment”, and together with the Security Agreement, Holdings Security Agreement, the Pledge Agreement, the “Collateral Documents”) on September 9, 2010, each in favor of Lender, as further security for the Loan;

 

WHEREAS, pursuant to Section 3.3 of the Loan Agreement, Borrower was required to make a mandatory prepayment of $1,500,000 in full on October 1, 2010 (the “Mandatory Prepayment”);

 

WHEREAS, failure to make a payment constitutes an Event of Default under the Note and Loan Agreement (the “Existing Default”);

 

WHEREAS, notwithstanding the existence of this continuing Event of Default, Borrower has requested that Lender forbear from enforcing its rights and remedies under the Note, Loan Agreement and the other Collateral Documents relating to this Existing Default for a specified period of time, provided that the Borrower and each Guarantor executes this Agreement and performs and meets the conditions of the forbearance set forth herein;

 

 

NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and subject to the terms and conditions hereof, Borrower, each Guarantor and Lender agree as follows:

 

1.             Incorporation of Recitals.  The Recitals set forth above are incorporated herein, are acknowledged by Borrower to be true and correct and are made a part hereof.

 

2.             Definitions.

 

2.1          All capitalized terms used but not otherwise defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement, as amended by this Forbearance.

 

2.2          The following terms used in this Forbearance shall have the meaning set forth below:

 

“Collateral Documents” shall have the meaning set forth in the recitals.

 

“Existing Default” shall have the meaning set forth in the recitals.

 

“Guarantors” shall have the meaning set forth in the recitals.

 

“Forbearance Default” shall mean (a) the occurrence of any default or event of default under the Loan Documents (other than the Existing Default), (b) the failure of Borrower to comply with any term, condition, or covenant set forth in this Forbearance within the time frame set forth, (c) any representation made by Borrower under or in connection with this Forbearance shall prove to be materially false as of the date when made, (d) the occurrence of a Material Creditor Action, (e) failure of Borrower to comply with its obligations under Section 3 of this Forbearance, (f) the failure of either Guarantor to execute a Reaffirmation of Guaranty, or (g) the filing of any petition (voluntary or involuntary) by Borrower or either Guarantor under the insolvency or bankruptcy laws of the United States or any state.

 

“Forbearance Period” shall mean the period of time between the date of this Amendment and the Forbearance Termination Date, inclusive.

 

“Forbearance Termination Date” shall mean the earlier to occur of (a) January 3, 2011 (b) immediately upon the occurrence of a Material Creditor Action, or (c) the date upon which any Borrower receives a written notice from Lender that a Forbearance Default (other than a Material Creditor Action) has occurred.

 

“Loan” shall have the meaning set forth in the recitals.

 

“Loan Agreement” shall have the meaning set forth in the recitals.

 

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“Loan Documents” shall mean, collectively, the Note, the Loan Agreement, the Guaranties, the Collateral Documents and the Forbearance.

 

“Note” shall have the meaning set forth in the recitals.

 

“Material Creditor Action”  shall have the meaning set forth in Section 9 hereof.

 

3.             Borrower’s Obligations.  Borrower shall make the remainder of the Mandatory Prepayment in the amount of $1,080,000 on or before January 3, 2011.  Borrower shall also engage Waypoint Advisors and Waypoint Capital (“Waypoint”) on or before November 19, 2010, pursuant to an engagement letter defining the scope of services reasonably acceptable to Lender and providing for payment to Waypoint of its fees in a manner acceptable to Lender, for the purposes of reviewing the Borrower’s current business plan and financial statements and making recommendations to Borrower about proposed changes to the business plan, methods for reducing expenditures and proposed budgets for the Borrower.   On or before December 15, 2010, Borrower will submit for Lender’s review a business plan created with the assistance of Waypoint that outlines its future capital operating and capital expenditure budgets and plans for future equity raises.  On or before December 3, 2010 Borrower and Holdings shall transfer its principal operating accounts to the Lender.   Failure by the Borrower to complete any of the above listed tasks on or before the date specified will be a Forbearance Default.

 

4.             The Existing Default.  Borrower acknowledges and agrees that it failed to make the Mandatory Prepayment required under Section 3.3 of the Loan Agreement on or before October 1, 2010. Borrower and each Guarantor hereby acknowledge and agree that the Loan Documents are, and as of the date hereof, valid and binding agreements and obligations of the parties thereto, and that neither Borrower nor either Guarantor has any defense, offset or counterclaim against Lender or the exercise of remedies by any Lender with respect to the Loan. Borrower and each Guarantor hereby waives and releases, to the extent that any such defense, offset or counterclaim may exist, each and every such defense, offset, and counterclaim, including, without limitation, all those arising by reason of (a) any and all amendments and modifications of any Loan Document, (b) any and all alterations, accelerations, extensions, or other changes in the time or manner of payment or performance of Borrower’s or either Guarantor’s obligations, (c) any and all increases or decreases in the rate of interest or other charges, (d) the release, substitution, or addition of any collateral or any guaranties, (e) any failure of Lender to give notice of default to Borrower or either Guarantor, (f) any failure of Lender to pursue Borrower or any of its property with due diligence, and (g) any failure of Lender to resort to collateral or to remedies which may be available to it.  Borrower and each Guarantor waive any notice of a Forbearance Default, and neither Borrower nor either Guarantor shall assert any defense to an action, suit or proceeding initiated by the Lender to enforce the Loan Documents after the Forbearance Termination Date, and, in the event Borrower or either Guarantor does, or attempts to do so, this Forbearance may be interposed as a complete bar to such defense.

 

5.             Forbearance.  Subject to the terms and conditions set forth herein, and provided that no Forbearance Default occurs, effective as of the “Effective Date” (as defined below) Lender agrees to forbear from (a) exercising any of its rights and remedies under any Loan Document that may exist by virtue of the Existing Defaults until the earlier of (i) January 3, 2011

 

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or (ii) the occurrence of a Forbearance Default (the “Forbearance Termination Date”).  From and after the Forbearance Termination Date, the agreement of the Lender to forbear as set forth in this Forbearance shall automatically and without further notice or other action terminate and be of no force and effect.  However, nothing in this agreement shall be construed to be a waiver or acquiescence in the Existing Default and such Existing Default shall continue in existence, subject only to Lender’s agreement, as set forth herein, not to enforce it’s remedies for a limited period of time.

 

6.             Material Creditor Action.  Lender’s obligation to forbear hereunder is conditioned upon the creditor or creditors of Borrower refraining from taking any Material Creditor Action during the term of this Forbearance.  In the event that any such creditor or creditors takes a Material Creditor Action all of Lender’s obligations hereunder shall terminate without notice.  For purposes of this Section 6, a Material Creditor Action is an action by a creditor or creditors to accelerate a debt or to reduce, limit, alter the terms of or terminate credit made available to Borrower involving the economic equivalent value of $25,000 or more in the aggregate.

 

7.             Conditions to Effectiveness.  This Forbearance shall be effective as of November 23, 2010 provided that the following conditions are met, in form and substance satisfactory to Lender, prior to November 23, 2010:

 

7.1          Delivery of Documents.  The following shall have been delivered to Lender, each duly authorized and executed and each in form and substance satisfactory to Lender:

 

(a)           this Forbearance;

 

(b)           such other instruments, documents, certificates, consents, waivers and opinions as Lender reasonably may request.

 

7.2          Performance; No Default.  The Borrower shall have performed and complied with all agreements and conditions contained in the Loan Documents to be performed by or complied with by it, and no Event of Default shall exist other than the Existing Event of Default.

 

In the event that all conditions set forth in this Section 7 shall not have been satisfied on or before the close of business on November 23, 2010, this Forbearance shall be null and void and Lender shall have the right to proceed to exercise all of its remedies under the Loan Documents.

 

8.             Representations and Warranties.  Borrower and Guarantor each represents and warrants to Lender that:

 

8.1          As of the close of business November 16, 2010, the principal amount of the Loan, in addition to accrued and unpaid interest with respect to the Loan, is $8,080,000.00 and;

 

8.2          Borrower and each Guarantor has fully and accurately disclosed its/his financial condition to Lender as of the date hereof;

 

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8.3          There are no other known Defaults other than the Existing Default as of the date hereof;

 

8.4          Upon the execution and delivery hereof, this Forbearance will be valid, binding and enforceable upon Borrower and Guarantors in accordance with its terms.

 

9.             No Default by, or Claims Against, Lender.  Borrower and each Guarantor agree with Lender that (a) Lender has not defaulted in the observance or performance of any of Lender’s obligations under the Loan Documents or with respect to the Loan, (b) Lender is not liable to any Borrower or either Guarantor in any way for any thing whatsoever, whether or not relating to the Loan, and that neither Borrower nor either Guarantor has any claims or causes of action against Lender of any nature whatsoever whether or not relating to the Loan Or the Loan Documents, and (c) to the extent that any may exist, Borrower and each Guarantor hereby releases, remises, acquits and forever discharges Lender and Lender’s employees, agents, representatives, consultants, attorneys, fiduciaries, servants, officers, directors, partners, predecessors, successors and assigns, subsidiary corporations, parent corporation, and related corporate divisions (all of the foregoing hereinafter called the “Released Parties”), from any and all action and causes of action, judgments, executions, suits, debts, claims, demands, liabilities, obligations, damages and expenses of any and every character, known or unknown, direct and/or indirect, at law or in equity, of whatsoever kind or nature, now existing, for or because of any matter or things done, omitted or suffered to be done by any of the Released Parties prior to and including the date of execution hereof, and in any way directly or indirectly arising out of or in any way connected to this Forbearance and the Loan Documents (all of the foregoing hereinafter called the “Released Matters”).  Borrower and each Guarantor acknowledge that the agreements in this paragraph are intended to be in full satisfaction of all or any alleged injuries or damages arising in connection with the Released Matters.  Borrower and each Guarantor represents and warrants to Lender that he/it has not purported to transfer, assign or otherwise convey any right, title or interest in any Released Matter to any other person or entity and that the foregoing constitutes a full and complete release of all Released Matters.

 

10.          No Waiver by, or Imposition of Liability on, Lender.  Borrower and each Guarantor acknowledges and agrees that neither the execution of this Forbearance by Lender nor the acceptance of payments hereunder by Lender, nor any other matter relating to the execution, delivery or performance of this Forbearance by Lender shall, or shall be deemed to, in any way, forgive, reinstate, extend maturity, waive, alter or release any Borrower’s obligations or either Guarantor’s obligations with respect to the Loan or under any of the Loan Documents, or affect or modify or derogate in any way any of Lender’s rights or remedies with respect to defaults of Borrower, or impose any liability on Lender.  Borrower and each Guarantor acknowledges and agrees that interest and other charges shall continue to accrue on the remaining indebtedness of the Loan until all such remaining indebtedness and all interest and other charges accruing thereon or payable in connection therewith have been paid in full.

 

11.          Lender’s Attorneys’ Fees.  Contemporaneously with the execution of this Forbearance by Lender, Borrower shall pay or cause to be paid to Lender all of Lender’s attorneys’ fees incurred in connection with the negotiation and documentation of this Forbearance, all recording fees and charges, title insurance charges and premiums, appraisal fees, and all other expenses, charges, costs and fees necessitated by or otherwise relating to this

 

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Forbearance shall be paid as other fees and expenses spent by the Bank to enforce its rights under the Note.

 

12.          Effect and Construction of Agreement.  Except as provided herein, the Loan Documents previously executed shall remain in full force and effect in accordance with their respective terms, and this Agreement shall not be construed to (i) waive or impair any rights, power or remedies of Lender under the Loan Documents upon termination of the Forbearance Period with respect to the Existing Default or otherwise; (ii)  constitute an agreement by Lender or require Lender to extend the Forbearance Period, or grant additional forbearance periods, or extend time for payment of any of the obligations; or (iii) make any Loans or other extensions of credit to Borrower after termination of the Forbearance Period.  Each Guarantor hereby reaffirms his/its guaranty in connection with this Forbearance.  In the event of any inconsistency between the terms of this Agreement and the Loan Documents executed prior the date of this Forbearance, this Forbearance shall govern.  Borrower and each Guarantor acknowledge that it/he has consulted with counsel and with other experts and advisors as it has deemed necessary in connection with the negotiation, execution and delivery of this Forbearance.  This Forbearance shall be construed without any regard to any presumption or rule requiring that it be construed against the party causing this Forbearance or any part hereof to be drafted.

 

13.          References.  From and after the Effective Date, (i) all terms used which are defined in the Loan Documents shall be deemed to refer to such terms as amended by this Forbearance, (ii) all references in Loan Documents to any Loan Document shall be deemed to refer to such Loan Document as amended by this Forbearance, and (iii) the defined term “Loan Documents” shall be understood to include all documents, instruments, agreements and certificates which such defined term encompassed under the Notes, Loan Agreement, Guaranties and Collateral Documents.

 

14.          No Waiver or Other Forbearance.  Except as otherwise expressed herein, the execution, delivery and effectiveness of this Forbearance shall not operate as a waiver of or forbearance with respect to any right, power or remedy of Lender under any of the Loan Documents, nor constitute a waiver of or forbearance with respect to any other provision of the Loan Documents.

 

15.          No Further Amendments; Ratification of Liability.  Except as amended hereby, the Loan Documents shall remain in full force and effect in accordance with its respective terms.  Borrower and each Guarantor hereby ratifies and confirms its liabilities, obligations and agreements under each of the Loan Documents, as applicable, each as amended by this Forbearance, and acknowledges that (i) it has no, claims or set-offs to the enforcement by Lender of such liabilities, obligations and agreements, (ii) Lender has fully performed all obligations to Borrower which it may have had or has on and as of the date hereof and (iii) other than as specifically set forth herein, Lender (A) expressly reserves and preserves all of its rights and remedies under the Loan Documents and (B) does not waive, diminish or limit any term or condition contained in the Loan Documents.  Lender’s agreement to the terms of this Forbearance or any other amendment of the Loan Documents shall not be deemed to establish or create a custom or course of dealing between Lender and Borrower or Lender and either Guarantor.  The Loan Documents, as amended by this Forbearance, contain the entire agreement

 

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between Lender, Borrower and each Guarantor with respect to the transactions contemplated hereby.

 

16.          No Partnership.  The relationship between Borrower and Lender is that of a debtor and creditor.  Nothing contained in this Forbearance shall be deemed to create a partnership or joint venture or other relationship between Lender and Borrower or between Lender and any other party, or to cause Lender to be liable or responsible in any way for the actions, liabilities, debts or obligations of the Borrower or any other party.

 

17.          Applicable Law.  This Forbearance and the rights and obligations of the parties hereto and all other aspects hereof shall be deemed to be made under, shall be governed by, and shall be construed and enforced in accordance with, the internal laws (as opposed to the conflict of laws provision) and decisions of the State of Illinois.

 

18.          Counterparts.  This Forbearance may be executed in one or more counterparts, each of which shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument.

 

19.          Further Assurances.  Borrower and each Guarantor covenants and agrees that it/he will at any time and from time to time do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and delivered, all such further acts, documents and instruments as reasonably may be required by Lender in order to effectuate fully the intent of this Forbearance.

 

20.          Severability.  If any term or provision of this Forbearance or the application thereof to any party or circumstance shall be held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the validity, legality and enforceability of the remaining terms and provisions of this Forbearance shall not in any way be affected or impaired thereby, and the affected term or provision shall be modified to the minimum extent permitted by law so as most fully to achieve the intention of this Forbearance.

 

21.          Notices.  Any notice to any party hereto shall be given in the manner and to the party at the address of such party in accordance with the provisions of the Loan Documents.  The notice address for the each of the parties shall be as follows:

 

	
to the Borrowers:

 

Advanced   Life Sciences, Inc.
   1440 Davey Road 
   Woodridge, Illinois 60517 
   Attn: John Flavin 

 

with a copy to:

 

John   Glassgow 
   Lathrop & Gage LLP 
   100 North Riverside Plaza 
    	
 
    	
to   the Lender:

 

The   Leaders Bank 
   2001 York Road 
   Suite 150 
   Oak Brook, Illinois 60523

with   a copy to:

 

Freeborn &   Peters LLP 
   311 South Wacker Drive 
   Suite 3000 
   Chicago, Illinois 60606 
    Attn: Joel Cooper, Esq.
    

 

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Suite 2100   
   Chicago, Illinois 60606 

 

to the Guarantors: 

 

Advanced   Life Sciences Holdings, Inc. 
   1440 Davey Road 
   Woodridge, Illinois 60517 
   Attn: John Flavin 

 

Michael   Flavin 
   Royal Swan Lane 
   Darien, Illinois 60561
    	
 
    	
 
    

 

22.          Captions.  The captions in this Forbearance are inserted for convenience of reference only and in no way define, describe or limit the scope or intent of this Forbearance or any of the provisions hereof.

 

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IN WITNESS WHEREOF, this Forbearance has been executed and delivered on the date first set forth above.

 

 

	
 
    	
BORROWER
    	
ADVANCED   LIFE SCIENCES, INC. 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   John L. Flavin  
    
	
 
    	
 
    	
Its:
    	
President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
GUARANTORS
    	
 
    	
 
    
	
 
    	
 
    	
/s/   Michael T. Flavin 
    
	
 
    	
 
    	
MICHAEL   FLAVIN  
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
ADVANCED   LIFE SCIENCES HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   John L. Flavin 
    
	
 
    	
 
    	
Its:
    	
President &   Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
LENDER
    	
THE   LEADERS BANK 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:  
    	
/s/William   E. Navolio
    
	
 
    	
 
    	
Title:
    	
EVP   and General Counsel
    

 

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