EXHIBIT 10.4 AMENDMENT NO. 1 TO TRANSACTION DOCUMENTS

 

                                                                    EXHIBIT 10.4

                    AMENDMENT NO. 1 TO TRANSACTION DOCUMENTS

 

     Amendment No. 1 to Transaction  Documents  ("Amendment No. 1"), dated as of

November 26, 2004,  between  PROVECTUS  PHARMACEUTICALS, INC. ("Provectus")  and

GRYFFINDOR   CAPITAL  PARTNERS  I,  L.L.C.   ("Gryffindor").

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                                    RECITALS

 

A.   Provectus,  Gryffindor  and others are  parties  to a  Convertible  Secured

     Promissory  Note and Warrant  Purchase  Agreement  dated as of November 26,

     2002 (the "Original Purchase Agreement"),  pursuant to which Provectus sold

     to  Gryffindor,  and  Gryffindor  purchased  from  Provectus,  a Note and a

     Warrant.

 

B.   To secure its obligations under the Note,  Provectus executed and delivered

     to  Gryffindor  a  Security  Agreement,  a  Trademark  Collateral  Security

     Agreement,  a Patent and License Security  Agreement,  a Copyright Security

     Agreement and a Stock Pledge Agreement,  each dated as of November 26, 2002

     (collectively the "Provectus Security Documents").

 

C.   To  further  secure  Provectus'   obligations   under  the  Note,   Xantech

     Pharmaceuticals,  Inc., a wholly owned subsidiary of Provectus ("Xantech"),

     executed and delivered to  Gryffindor a Guaranty,  dated as of November 26,

     2002 (the "Guaranty"), guarantying the obligations of Provectus under or in

     connection with the Note, any  Transaction  Document and any other document

     or instrument executed in connection therewith.

 

D.   To  secure  its  obligations  under  its  Guaranty,  Xantech  executed  and

     delivered  to  Gryffindor  a Security  Agreement,  a  Trademark  Collateral

     Security Agreement, a Patent and License Security Agreement and a Copyright

     Security  Agreement,  each  dated as of  November  26,  2002  (the  Xantech

     Security Documents, and together with the Provectus Security Documents, the

     "Security Documents").

 

E.   Provectus and Gryffindor also entered into a Registration Rights Agreement,

     and  Provectus,   Gryffindor  and  others  entered  into  a   Shareholders'

     Agreement,  each dated as of November 26, 2002,  which,  together  with the

     other documents referred to in the Original Purchase Agreement are referred

     to herein as the "Transaction Documents".

 

F.   Provectus desires to amend the Note to extend the maturity date thereof and

     to add the accrued interest thereon to the principal thereof and Gryffindor

     is willing to agree to an extension of the maturity date of the Note and to

     add the accrued interest thereon to the principal  thereof on the terms and

     subject to the conditions hereinafter set forth.  Accordingly,  the parties

     hereto agree as follows:

 

1.   Definitions.  Capitalized terms used but not otherwise defined herein shall

     have the meaning ascribed thereto in the Original Purchase Agreement.

 

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2.   Amendments.   Effective  as  of  the  date  hereof,   but  subject  to  the

     satisfaction of the conditions precedent set forth in Section 3 hereof, the

     following Transaction Documents are hereby amended as follows:

 

2.1. Note.  The Note is amended and  restated as set forth in Exhibit A attached

     hereto and made a part hereof.

 

2.2. Registration Rights Agreement. The Registration Rights Agreement is amended

     as follows:

 

     (a)  For the  avoidance of doubt,  the defined term  "Transactions"  in the

          Registration   Rights   Agreement  shall  be  deemed  to  include  the

          transactions  pursuant to Amendment  No. 1 to  Transaction  Documents,

          dated as of November 26, 2004,  between Provectus and Gryffindor,  and

          the documents executed and delivered in connection therewith.

 

     (b)  The  definition  "Shelf  Registration  Statement" in the  Registration

          Rights Agreement shall be amended and restated as follows:

 

          "Shelf  Registration  Statement"  shall mean a Registration  Statement

          filed  pursuant  to Rule 415 of  Regulation  C  promulgated  under the

          Securities Act (or any successor rule).

 

     (c)  The  definition  of "Warrants" in the  Registration  Rights  Agreement

          shall be amended and restated as follows:

 

          "Warrants"  shall mean those  warrants  to acquire  additional  Common

          Shares granted to Holder as part of the Transactions,  including,  but

          not limited to, the Warrants issued pursuant to the Original  Purchase

          Agreement and the Warrants issued and issuable  pursuant to the Second

          Amended and Restated Senior Secured  Convertible  Note, dated November

          26, 2004, in the principal amount of $1,185,959, made by Provectus and

          payable to the order of Gryffindor.

 

     (d)  Section  2(a) of the  Registration  Rights  Agreement  is amended  and

          restated as follows:

 

          "2.  Demand Registration.

 

               (a)  Request for Registration.

 

                    Immediately  following  the earlier of (i) the date on which

               the Company shall become eligible to use a Registration Statement

               on Form S-3 (or any  successor  form  thereto)  to  register  its

               securities and/or those of a selling  stockholder,  and (ii) July

               1, 2003, Holder may make written requests for registration  under

               the Securities Act (each, a "Demand

 

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               Registration")  of all  or  part  of  such  Holder's  Registrable

               Securities.  Each written  request  shall  specify the  aggregate

               number  of  Registrable  Securities  to  be  registered  and  the

               intended  method  of  disposition.  The  Company  shall,  at  the

               election of the Holder,  file such Demand Registration as a shelf

               registration  pursuant to Rule 415 of  Regulation  C  promulgated

               under the Securities Act (or any successor rule). Thereafter, the

               Company  may elect to  include  in such  registration  additional

               Common Shares to be issued by the Company, to the extent that the

               inclusion of such  additional  Common  Shares does not  adversely

               affect the completion of Holder's  intended  distribution  of its

               Common Shares,  in its reasonable  discretion.  The Company shall