Amendment to Line of Credit Agreement between Advanced Life Sciences, Inc. and The Leaders Bank
This letter amends the existing line of credit agreement between Advanced Life Sciences, Inc. and The Leaders Bank. The amendment sets the credit limit at $4,000,000 for a 24-month term, with the principal due in a lump sum on January 1, 2010. The interest rate is set at the bank's prime rate minus 0.75%, with a minimum of 6.25% and a maximum of 8%. The bank waives its right to demand repayment except in case of default. All other terms from the original agreement remain unchanged.
Exhibit 10.1
Michael T. Flavin, PhD
Chief Executive Officer
Advanced Life Sciences, Inc.
1440 Davey Rd.
Woodridge, IL. 60517
December 21, 2007
Dear Dr. Flavin:
Let this letter serve as an amendment to The Leaders Bank existing Line of Credit facility to Advanced Life Sciences, Inc. under the following terms and conditions:
| Amount: |
| $4,000,000 |
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| Term: |
| 24 Months. Principal shall be due and payable in one lump sum on Maturity Date (see below). The line of credit will include a revolving feature to it. In addition, the Leaders Bank hereby agrees to waive all rights to call this debt upon Demand except if an event of default exists as described in the loan documents. |
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| Maturity |
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| Date: |
| January 1, 2010 |
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| Interest |
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| Rate: |
| Leaders Bank Prime minus .75%, floating with a floor of 6.25% and a ceiling of 8%. |
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| Other: |
| All other terms and conditions (collateral, covenants, and subordinations) shall remain substantially the same as the terms agreed to in the current loan agreement scheduled to mature on 1-1-2008. |
If this amendment is acceptable to you, please indicate your approval by signing in the space provided below.
Sincerely,
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| /s/ James E. Lynch |
| Michael T. Flavin |
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| James E. Lynch |
| Michael T. Flavin, Ph.D. |
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| President & CEO |
| Advanced Life Sciences, Inc. |
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| The Leaders Bank |
| Chief Executive Officer |
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