EXHIBIT 10.16
ADVANCED BIOTHERAPY, INC.
AMENDED INVESTOR RIGHTS AGREEMENT
This Amended Investor Rights Agreement (the "Agreement") is made as of the ____
day of May, 2005, by and among Advanced Biotherapy, Inc., a Delaware corporation
(the "Company"), and the holders of 2003 Subordinated Convertible Pay-In-Kind
Notes due September 30, 2007 and holders of 2005 Subordinated Convertible
Pay-In-Kind Notes due September 30, 2009, of the Company (each of whom is
sometimes herein referred to as an "Investor," and collectively as the
"Investors") who have executed, or may from time to time execute, an Investors
Rights Agreement Joinder, generally in the form attached hereto as Attachment A.
The Investors are identified on Schedule A hereto, which will be amended from
time to time to update the parties to this Agreement.
RECITALS
A. The undersigned Investors have subscribed for the Company's 2003 Subordinated
Convertible Pay-In-Kind Notes due September 30, 2007 ("2003 Convertible Notes
Due 2007") and the Company's 2005 Subordinated Convertible Pay-In-Kind Notes Due
September 30, 2009 ("2005 Convertible Notes Due 2009"). The Company and the
Investors desire to enter into this Agreement in order to provide the Investors
with certain rights to register shares of the Company's common stock, par value
$0.001 ("Common Stock") underlying the Convertible Notes. The 2003 Convertible
Notes Due 2007 and the 2005 Convertible Notes Due 2009 are sometimes referred to
herein collectively as the "Convertible Notes."
B. The Investors and the Company desire to amend the Investor Rights Agreement
dated as of October 1, 2003 between the Company and the holders of 2003
Convertible Notes Due 2007 ("2003 Investor Rights Agreement").
C. The undersigned Investors hold a majority of the Company's 2003 Convertible
Notes Due 2007 issued and outstanding as of the date hereof.
AGREEMENT
The parties hereby agree as follows:
1. Registration Rights The Company and the Investors covenant and agree as
follows:
1.1. Definitions. For purposes of this Agreement:
(a) The terms "register," "registered," and"registration" refer to a
registration effected by preparing and filing a registration statement or
similar document in compliance with the Securities Act of 1933, as amended, or
successor
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statute, and applicable rules and regulations thereunder (the "Securities Act"),
and the declaration or ordering of effectiveness of such registration statement
or document;
(b) The term "Registrable Securities" means (i) the shares of Common
Stock issuable or issued pursuant to the conversion of the Company's Convertible
Notes and (ii) any other shares of the Company's Common Stock issued as (or
issuable upon the conversion or exercise of any Convertible Notes, warrant,
right or other security which is issued as) a dividend or other distribution
with respect to, or in exchange for or in replacement of, the shares listed in
(i); provided, however, that the foregoing definition shall exclude in all cases
any Registrable Securities sold by a person in a transaction in which such
person's rights under this Agreement are not assigned. Notwithstanding the
foregoing, neither the Companys Common Stock nor its other securities shall be
treated as Registrable Securities if they have been (A) sold to or through a
broker or dealer or underwriter in a public distribution or a public securities
transaction, or (B) sold in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act under Section 4(1)
thereof so that all transfer restrictions, and restrictive legends with respect
thereto, if any, are removed upon the consummation of such sale;
(c) The number of shares of "Registrable Securities then
outstanding" shall be determined by the number of shares of Common Stock
outstanding which are, and the number of shares of Common Stock issuable
pursuant to then exercisable or convertible securities which are, Registrable
Securities;
(d) The term "Holder" means any person owning, or having the right
to acquire, Registrable Securities or any assignee thereof in accordance with
Section 1.11 of this Agreement;
(e) The term "SEC" means the Securities and Exchange Commission; and
1.2 Company Registration. The Company shall notify all Holders in writing
at least fifteen (15) days prior to the filing of a registration statement under
the Securities Act for purposes of a public offering of securities of the
Company (including, but not limited to, registration statements relating to
secondary offerings of securities of the Company, but excluding registration
statements relating to employee benefit plans or debt securities, with respect
to corporate reorganizations or other transactions under Rule 145 of the
Securities Act or a registration on any registration form that does not permit
secondary sales) and will afford each such Holder an opportunity to include in
such registration statement all or part of such Registrable Securities held by
such Holder. Each Holder desiring to include in any such registration statement
all or any part of the Registrable Securities by it shall, within fifteen (15)
days after the above-described notice from the Company, so notify the Company in
writing. Such notice shall state the intended method of disposition of the
Registrable Securities by such Holder. If a Holder decides not to include all of
its Registrable Securities in any registration statement thereafter filed by the
Company,
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such Holder shall nevertheless continue to have the right to include any
Registrable Securities in any subsequent registration statement or registration
statements as may be filed by the Company with respect to offerings of its
securities, all upon the terms and conditions set forth herein. The Company
shall have the right to terminate or withdraw any registration initiated by it
under this Section 1.2 prior to the effectiveness of such registration whether
or not any Holder has elected to include securities in such registration. The
registration expenses of such withdrawn registration shall be borne by the
Company in accordance with Section 1.6 hereof.
1.3 Form S-3 Registration. In the event that the Company shall receive,
from any Holder or Holders of not less than fifty percent (50%) of the
Registrable Securities then outstanding, a written request or requests that the
Company effect a registration on Form S-3 with respect to all or a part of the
Registrable Securities owned by such Holder or Holders, the Company shall:
(a) promptly give written notice of the proposed registration, and
any related qualification or compliance, to all other Holders; and
(b) as soon as practicable, effect such registration and all such
qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Holder's or
Holders' Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other Holder or Holders
joining in such request as are specified in a written request given within
fifteen (15) days after receipt of such written notice from the Company;
provided, however, that the Company shall not be obligated to effect any such
registration, qualification or compliance, pursuant to this Section 1.3:
(i) if Form S-3 is not available for such offering by the
Holders;
(ii) if the Holders, together with the holders of any other
securities of the Company entitled to inclusion in such registration, propose to
sell Registrable Securities and such other securities (if any) at an aggregate
price to the public before deducting any underwriters' discounts or commissions)
of less than $500,000;
(iii) if the Company shall furnish to the Holders a
certificate signed by the President of the Company stating that in the good
faith judgment of the Board of Directors of the Company, it would be seriously
detrimental to the Company and its stockholders for such Form S-3 registration
to be effected at such time, in which event the Company shall have the right to
defer the filing of the Form S-3 registration statement for a period of not more
than 180 days after receipt of the request of the Holder or Holders under this
Section 1.3; provided, however, that the Company shall not utilize this right
more than once in any twelve (12) month period pursuant to this Section
1.3(b)(iii);
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(iv) if within thirty (30) days of receipt of a written
request from Initiating Holders pursuant to Section 1.3, the Company gives
notice to the Holders of the Company's intention to make a public offering
within ninety (90) days;
(v) if the Company has, within the twelve (12) month period
preceding the date of such request, effected a registration on Form S-3 for the
Holders pursuant to this Section 1.3;
(vi) in any particular jurisdiction in which the Company would
be required to qualify to do business or to execute a general consent to service
of process in effecting such registration, qualification or compliance; or
(vii) after the Company has effected one (1) registration
pursuant to Section 1.2 and such registration has been declared effective or
ordered effective.
(c) Subject to the foregoing, the Company shall file a registration
statement covering the Registrable Securities so requested to be registered as
soon as practicable after receipt of the request or requests of the Holders.
1.4 Obligations of the Company. When required under this Section 1 to
effect the registration of any Registrable Securities, the Company shall, as
expeditiously as reasonably possible:
(a) Prepare and file with the SEC a registration statement with
respect to such Registrable Securities and use its reasonable best efforts to
cause such registration statement to become effective, and, upon the request of
the Holders of a majority of the Registrable Securities registered thereunder,
keep such registration statement effective up to one (1) year following the date
that such registration statement shall become effective, but in no event later
than (i) the stated maturity date of the Convertible Notes, respectively, or
(ii) the date that the Registrable Securities shall be transferable pursuant to
Rule 144 of the Securities Act ("Expiration Date"). The Company shall be
required to file, cause to become effective or maintain the effectiveness of any
registration statement that contemplates a distribution of securities on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act,
subject to such Expiration Date.
(b) Prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement through the Expiration Date, inclusive.
(c) Furnish to the Holders such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
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Securities Act, and such other documents as they may reasonably request in order
to facilitate the disposition of Registrable Securities owned by them.
(d) Use its reasonable best efforts to register and qualify the
securities covered by such registration statement under such other securities or
Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Holders holding a majority of the Registrable Securities then outstanding,
provided that the Company shall not be required in connection therewith or as a
condition thereto to qualify to do business or to file a general consent to
service of process in any such states or jurisdictions.
(e) Notify each Holder of Registrable Securities at any time when a
prospectus relating thereto is required to be delivered under the Securities Act
of the happening of any event as a result of which the prospectus included in
such registration statement, as then in effect, includes an untrue statement of
a material fact or omits to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the
circumstances then existing, such obligation to continue through the Expiration
Date, inclusive.
(f) Cause all such Registrable Securities registered pursuant to
such registration statement to be listed on any securities exchange on which
similar securities issued by the Company are then listed.
(g) Provide a transfer agent and registrar for all Registrable
Securities registered pursuant to such registration statement and a CUSIP number
for all such Registrable Securities, in each case not later than the effective
date of such registration.
1.5 Furnish Information. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to this Section 1 with
respect to the Registrable Securities of any selling Holder that such Holder
shall furnish to the Company such information regarding itself, the Registrable
Securities held by it, and the intended method of disposition of such securities
as shall be required to effect the registration of such Holder's Registrable
Securities.
1.6 Expenses of Registration.
(a) Company Registration. All expenses, other than underwriting
discounts and commissions, incurred in connection with registrations, filings or
qualifications of Registrable Securities pursuant to Section 1.2 for each Holder
(which right may be assigned as provided in Section 1.11 below), including
(without limitation) all registration, filing, and qualification fees, printers'
and accounting fees, fees and disbursements of counsel for the Company and the
reasonable fees and disbursements of one counsel for the selling Holder or
Holders selected by them with the approval of the Company, which approval shall
not be unreasonably withheld, shall be borne by the Company.
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(b) Registration on Form S-3. All expenses other than underwriting
discounts and commissions incurred in connection with two (2) registrations
requested pursuant to Section 1.3, including (without limitation) all
registration, filing, qualification, printers' and accounting fees and the fees
and disbursements of counsel for the Company shall be borne by the Company.
(c) Notwithstanding anything to the contrary herein, the Holders
shall bear full responsibility for all costs and expenses of any kind occurred
in connection with any underwriting, distribution, offer, sale or other
transfers of Registrable Securities, including, without limitation, underwriting
discounts and commissions.
1.7 Underwriting Requirements. In connection with any offering involving
an underwriting of shares of the Company's capital stock, the Company shall not
be required under Sections 1.2 or 1.3 to include any of the Holders' securities
in such underwriting unless they accept the terms of the underwriting as agreed
upon between the Company and the underwriters selected by it (or by other
persons entitled to select the underwriters), and then only in such quantity as
the underwriters determine in their sole discretion will not jeopardize the
success of the offering by the Company. If the total amount of securities,
including Registrable Securities, requested by stockholders to be included in
such offering exceeds the amount of securities sold other than by the Company
that the underwriters determine in their sole discretion is compatible with the
success of the offering, then the Company shall be required to include in the
offering only that number of such securities, including Registrable Securities,
which the underwriters determine in their sole discretion will not jeopardize
the success of the offering (the securities so included to be first taken from
the Holders of Registrable Securities and apportioned pro rata among the selling
stockholders according to the total amount of securities entitled to be included
therein owned by each selling stockholder or in such other proportions as shall
mutually be agreed to by such selling stockholders, but in no event shall any
shares being sold by a stockholder exercising registration rights pursuant to
Section 1.3 be excluded from such offering. For purposes of the preceding
sentence concerning apportionment, for any Holder which is a partnership or
corporation, the partners, retired partners and stockholders of such Holder, or
the estates and family members of any such partners and retired partners and any
trusts for the benefit of any of the foregoing persons, shall be deemed to be a
single "selling stockholder," and any pro-rata reduction with respect to such
"selling stockholder" shall be based upon the aggregate amount of shares
carrying registration rights owned by all entities and individuals included in
such "selling stockholder," as defined in this sentence.
1.8 Delay of Registration. No Holder shall have any right to obtain or
seek an injunction restraining or otherwise delaying any such registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Section 1.
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1.9 Indemnification. In the event any Registrable Securities are included
in a registration statement under this Section 1:
(a) To the extent permitted by law, the Company will indemnify and
hold harmless each Holder and, if applicable, any underwriter (as defined in the
Securities Act) for such Holder and each person, if any, who controls such
Holder, or underwriter within the meaning of the Securities Act or the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), against any
losses, claims, damages, or liabilities (joint or several) to which they may
become subject under the Securities Act, the Exchange Act or other federal or
state law, insofar as such losses, claims, damages, or liabilities (or actions
in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively a "Violation"): (i) any untrue
statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any
violation or alleged violation by the Company of the Securities Act, the
Exchange Act, any state securities law or any rule or regulation promulgated
under the Securities Act, the Exchange Act or any state securities law; and the
Company will pay to each such Holder, underwriter or controlling person, as
incurred, any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damage, liability, or
action; provided, however , that the indemnity agreement contained in this
subsection 1.9(a) shall not apply to amounts paid in settlement of any such
loss, claim, damage, liability, or action if such settlement is effected without
the consent of the Company (which consent shall not be unreasonably withheld),
nor shall the Company be liable to any Holder, underwriter or controlling person
for any such loss, claim, damage, liability, or action to the extent that it
arises out of or is based upon a Violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by any such Holder, underwriter or controlling person.
(b) To the extent permitted by law, each selling Holder will
indemnify and hold harmless the Company, each of its directors, its officers and
each person who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the Securities Act, any underwriter,
any other Holder selling securities in such registration statement and any
controlling person of any such underwriter or other Holder against any losses,
claims, damages, or liabilities (joint or several) to which any of the foregoing
persons may become subject, under the Securities Act, the Exchange Act or other
federal or state law, insofar as such losses, claims, damages, or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such
Holder will pay, as incurred, any legal or other expenses reasonably
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incurred by any person intended to be indemnified pursuant to this subsection
1.9(b), in connection with investigating or defending any such loss, claim,
damage, liability, or action; provided, however, that the indemnity agreement
contained in this subsection 1.9(b) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the consent of the Holder which consent shall not
be unreasonably withheld; provided, further, that in no event shall the amounts
payable in indemnity by a Holder under this subsection 1.9(b) in respect of a
Violation exceed the net proceeds received by such Holder in the registered
offering out of which such Violation arises.
(c) Promptly after receipt by an indemnified party under this
Section 1.9 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 1.9, 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 party so desires, jointly with any other indemnifying party
similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party
(together with all other indemnified parties which may be represented without
conflict by one counsel) shall have the right to retain one separate counsel,
with the reasonable fees and expenses to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding. The failure to deliver written notice to the
indemnifying party within a reasonable time of the commencement of any such
action shall relieve such indemnifying party of liability to the indemnified
party under this Section 1.9 to the extent that the indemnifying party has been
prejudiced thereby, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this Section 1.9.
(d) If the indemnification provided for in this Section 1.9 is held
by a court of competent jurisdiction to be unavailable to an indemnified party
with respect to any loss, liability, claim, damage or expense referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage, or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense as well as any other relevant equitable
considerations; provided, that in no event shall the amounts payable in
contribution by a Holder under this subsection 1.9(d) in respect of a Violation
exceed the net proceeds received by such Holder in the registered offering out
of which Violation arises. The relative fault of the indemnifying party and of
the indemnified party shall be determined by reference to, among other things,
whether the untrue or
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alleged untrue statement of a material fact or the omission to state a material
fact relates to information supplied by the indemnifying party or by the
indemnified party and the parties' relative intent, knowledge, access to
information, and opportunity to correct or prevent such statement or omission.
(e) The obligations of the Company and Holders under this Section
1.9 shall survive the completion of any offering of Registrable Securities in a
registration statement under this Section 1, and otherwise.
1.10 Reports Under Securities Exchange Act of 1934. With a view to making
available to the Holders the benefits of Rule 144 promulgated under the
Securities Act and any other rule or regulation of the SEC that may at any time
permit a Holder to sell securities of the Company to the public without
registration, the Company agrees to:
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(a) make and keep public information available, as those terms are
understood and defined in SEC Rule 144, so long as the Company remains subject
to the periodic reporting requirements under Sections 13 or 15(d) of the
Exchange Act;
(b) file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;
and
(c) furnish to any Holder, so long as accurate and so long as the
Holder owns any Registrable Securities, forthwith upon request a written
statement by the Company that it has complied with the reporting requirements of
SEC Rule 144, the Securities Act and the Exchange Act, and such information as
may be reasonably requested in availing any Holder of any rule or regulation of
the SEC which permits the selling of any such securities without registration or
pursuant to such form.
1.11 Assignment of Registration Rights. The rights to cause the Company to
register Registrable Securities pursuant to this Section 1 may be assigned (but
only with all related obligations and together with the Registrable Securities
and related Convertible Notes as permitted pursuant to and in accordance with
the Convertible Notes), provided (i) the Company is, within ten (10) days after
such transfer, furnished with written notice of the name and address of such
transferee or assignee and the securities with respect to which such
registration rights are being assigned and (ii) such transferee agrees in
writing to be subject to all restrictions set forth in this Agreement; provided,
further, that such assignment shall be effective only if immediately following
such transfer the further disposition of such securities by the transferee or
assignee is restricted under the Securities Act.
1.12 Termination of Registration Rights. No Holder shall be entitled to
exercise any right provided for in this Section 1 (i) on or after September 30,
2007, or (ii) during such times as Rule 144 (or another similar exemption under
the Securities Act) is available for the sale of all of such Holder's shares
during a three (3) month period without registration.
2. Arbitration. In the event of any controversy, dispute or claim arising out of
or related to this Agreement, the Subscription Agreement or the Convertible
Notes, or the interpretation, breach, termination or validity hereof or thereof,
the parties shall submit such controversy, dispute or claim to binding
arbitration hereunder. All arbitration proceedings pursuant to this Section
shall take place in Los Angeles County, State of California, and shall be before
a retired judge of the United States District Court for the Central District of
California, Los Angeles Division, or the Los Angeles County Superior Court or
such other arbitrator as the parties shall mutually agree upon. In the event
that the parties are unable to agree upon the selection of an arbitrator, any
party may request the presiding judge of the United States District Court for
the Central District of California, Los Angeles Division, or the Los Angeles
County Superior Court to appoint such arbitrator. Arbitration of the dispute
shall commence no later than thirty (30) days after the selection or appointment
of such
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arbitrator. The arbitrator shall be bound by the express terms of this Agreement
and shall endeavor to reach his or her decision as quickly as possible, which
decision shall be final and binding on the parties to this Agreement. The
arbitrator shall also have the power to award costs and expenses (including,
without limitation, reasonable attorneys' fees) to the prevailing party.
Application to enforce the arbitrator's decision can be made in any court or
other tribunal of competent jurisdiction; any other application or dispute shall
be submitted to the United States District Court for the Central District of
California, Los Angeles Division, or the Los Angeles County Superior Court for
determination. The rules of discovery then pertaining to the United States
District Court for the Central District of California, Los Angeles Division, or
a California Court of Law, as the case may be, shall apply to any such
arbitration, including, without limitation, Sections 1283.01 and 1283.05 of the
California Code of Civil Procedure, the provisions of which are hereby
incorporated herein and made a part hereof by reference. TO THE MAXIMUM EXTENT
PERMITTED BY LAW, THE PARTIES HEREBY IRREVOCABLY WAIVE ANY RIGHT THEY MAY HAVE
TO JURY TRIAL OR TO APPEAL THE ARBITRATOR'S DECISION OR TO ASSERT THE DOCTRINE
OF INCONVENIENT FORUM OR TO OBJECT TO VENUE TO THE EXTENT ANY ACTION SUIT,
ARBITRATION OR OTHER PROCEEDING IS BROUGHT IN THE COUNTY OF LOS ANGELES, STATE
OF CALIFORNIA.
3. Miscellaneous.
3.1 Successors and Assigns. Except as otherwise provided in this
Agreement, the terms and conditions of this Agreement shall inure to the benefit
of and be binding upon the respective permitted successors and assigns of the
parties (including transferees of any Common Stock issued upon conversion or
exercise thereof). Nothing in this Agreement, express or implied, is intended to
confer upon any party other than the parties hereto or their respective
successors and assigns any rights, remedies, obligations, or liabilities under
or by reason of this Agreement, except as expressly provided in this Agreement.
3.2 Amendments and Waivers. Any term of this Agreement may be amended or
waived only with the written consent of the Company and the holders of at least
a majority of the Registrable Securities then outstanding. Any amendment or
waiver effected in accordance with this paragraph shall be binding upon each
holder of any Registrable Securities then outstanding, each future holder of all
such Registrable Securities, and the Company.
3.3 Notices. Unless otherwise provided, any notice required or permitted
by this Agreement shall be in writing and shall be deemed sufficient upon
delivery, when delivered personally or one (1) day after delivery by overnight
courier or sent by facsimile, or electronic mail provided that in each case, the
sender retains proof of receipt, or four (4) days after being deposited in the
U.S. mail, as certified or registered mail, with postage prepaid, addressed to
the party to be notified at such party's address as set forth on the signature
pages hereto or as subsequently modified by written notice.
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3.4 Severability. If one or more provisions of this Agreement are held to
be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (a) such
provision shall be excluded from this Agreement, (b) the balance of the
Agreement shall be interpreted as if such provision were so excluded and (c) the
balance of the Agreement shall be enforceable in accordance with its terms.
3.5 Governing Law. This agreement and all acts and transactions pursuant
hereto shall be governed, construed and interpreted in accordance with the laws
of the State of California, without giving effect to principles of conflicts of
laws.
3.6 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
3.7 Recovery of Fees and Costs. Subject to Section 2 above as to mandatory
arbitration, in the event that any legal, equitable, arbitration or other
proceeding is brought for the enforcement of this Agreement, or because of an
alleged dispute, breach, default, termination or invalidity in connection with
any provision of this Agreement, the successful or prevailing party shall be
entitled to recover reasonable attorneys' fees and costs incurred in such
proceeding, in addition to any other relief to which such party may be entitled.
3.8 Drafting Presumption. It is acknowledged that the parties and their
respective agents have participated in an arms'-length negotiation in the
preparation of this Agreement. As a consequence, the parties agree that no
presumption shall be applied in any interpretation of this Agreement that the
terms hereof shall be more strictly construed against one party by reason of any
rule or construction that a document is to be construed more strictly against
the party who prepared the same, whether through such party's agents or
otherwise and the parties expressly waive the application of Section 1654 of the
California Civil Code.
3.9 Entire Agreement. This Agreement and the documents referred to herein,
constitute the entire agreement between the parties hereto pertaining to the
subject matter hereof and any and all other written or oral agreements existing
between the parties hereto are expressly canceled, including, without
limitation, the 2003 Investor Rights Agreement.
3.10 Titles and Subtitles. The titles and subtitles used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.
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The parties hereto have executed this Investor Rights Agreement as of the date
first written above.
COMPANY: INVESTORS:
ADVANCED BIOTHERAPY, INC. WITH RESPECT TO THE INVESTORS,
a Delaware corporation THE SIGNATURE PAGE TO THIS
AGREEMENT CONSISTS OF THE
INVESTOR RIGHTS AGREEMENT
By: JOINDER, WHICH, IN SOME CASES,
------------------------------- WILL BE INCLUDED AS PART OF THE
Xxxxxx X. Xxxxxxxxxx, President SUBSCRIPTION AGREEMENT SIGNATURE
and Chief Executive Officer PAGE. ATTACHMENT A TO AMENDED
INVESTOR RIGHTS AGREEMENT
Address: Advanced Biotherapy Concepts, Inc.
0000 Xxxxxxx Xxxxxx Xxxxxxxxx
Xxxxx 000
Xxxxxxxx Xxxxx, XX 00000
Facsimile: 000-000-0000
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ATTACHMENT A
TO AMENDED INVESTOR RIGHTS AGREEMENT
AMENDED INVESTOR RIGHTS AGREEMENT JOINDER
By signing and returning this Amended Investor Rights Agreement Joinder,
the undersigned agrees to be a party to that certain Amended Investor Rights
Agreement, by and between the Company and the Investors identified therein, a
copy of which has been presented to the undersigned along with the Amended
Investor Rights Agreement Joinder. The undersigned shall have all rights, and
shall observe all the obligations, applicable to an "Investor" as set forth in
the Amended Investor Rights Agreement. In order to give effect to this
transaction, please add the undersigned to the list of "Investors" as set forth
in Schedule A to the Amended Investor Rights Agreement effective upon execution
of this Investor Rights Agreement Joinder and acceptance by the Company of the
undersigned's subscription.
Date:
-----------------------
INVESTOR:
-----------------------------
[Signature]
-----------------------------
Address:
-----------------------------
Social Security Number:
-----------------------------
Facsimile Number:
-----------------------------
15
SCHEDULE A
TO AMENDED INVESTOR RIGHTS AGREEMENT
INVESTORS
Name of Investor Maximum Principal Amount of Convertible Notes
---------------- ---------------------------------------------
-------------------------- $
----------------------------
16
