Exhibit 10.40 

 

**Biovest International, Inc.**

 

**EMPLOYMENT AGREEMENT**

 

**THIS EMPLOYMENT AGREEMENT** (“Agreement”) is made and enteredinto as of this                      day of                     2003, by and between Biovest International, Inc. (the “Company”) and Richard Sakowicz (“Employee”).

 

**R E C I T A L S:**

 

**WHEREAS,** the Company is a biotechnology company that develops,manufactures and markets cell culture systems and is the holder of a Cooperative Research and Development Agreement with the National Cancer Institute for the commercialization of a personalized biologic cancer vaccine for treatment of non-Hodgkinslymphoma. (the “Business”); 

 

**WHEREAS,** theCompany wishes to enter into this Employment Agreement with Employee, to set forth and govern the terms, conditions and duties of employment of Employee with the Company; and 

 

**WHEREAS,** the Company and the Employee are desirous of selling forth in this definitive Employment Agreement theirrespective rights and obligations with respect to Employee’s employment with the Company. 

 

**NOW, THEREFORE,** in consideration of the mutual promises in this Agreement and for additional good and valuable consideration, the receipt and sufficiency of which is acknowledged by the parties hereto, theCompany and the Employee agree as follows: 

 

**1. Employmentand Term.** On the terms and subject to the conditions of this Agreement, the Company agrees to employ the Employee and the Employee accepts such employment. This Agreement shall commence on July 1, 2003, (the “Commencement Date”)and shall continue in effect for a period of two years from the date hereof. This Agreement shall terminate at the end of said two-year period (the “Termination Date”) unless earlier terminated pursuant to Paragraph 4 below. 

 

**2. Duties.** Beginning on the Commencement Date, Employee will beemployed by the Company to perform the duties, as specified from time to time by the Board of Directors and set forth on Exhibit “A” which is attached hereto, incorporated herein and made a part hereof (“Duties”). 

 

**3. Compensation.** During the Term of this Agreement, ascompensation for Employee performing the Duties, the Company shall pay Employee the compensation, as set forth on Exhibit “B” which is attached hereto, incorporated herein and made a part hereof (“Compensation”). 

 

**4. Termination of Employment.** Either Employee or Employer may terminate this Agreement upon30 days’ written notice. In the event of termination by Employer, Termination Payments shall be made as herein provided. The Termination Payment to be paid by Employer shall be in an amount equal to Employee’s Base Salary as provided inExhibit B hereto for the lesser of: (i) one year following notice of termination or (ii) the term of this Agreement remaining following notice of termination, whichever is shorter (the “Termination Payment Term”). The termination paymentshall be paid in cash in monthly increments over the Termination Payment Term. 

 

**5. Non-Competition.** Simultaneously with his execution of this Agreement, Employee shall execute a Covenant Not to Compete Agreement with the Company, as set forth on Exhibit “C” which isattached hereto, incorporated herein and made a part hereof. 

 

**6. Confidentiality/Waiver of Interest.** Simultaneously with the execution of this Agreement, Employee shall execute a Confidentiality/Waiver of Interest Agreement with the Company, as set forth on Exhibit “D” which isattached hereto, incorporated herein and made a part hereof and which shall be effective from the date of execution. 

 

**7. Notices.** Any notice provided for in this Agreement must be in writing and must be either personally delivered or mailed by certifiedmail, return receipt required, to the recipient at the address indicated below: 

 

**To the Company:**
 **To the Employee:**
Biovest International, lnc.
 Richard Sakowicz
8500 Evergreen Blvd.

Minneapolis, MN 55433
  
 

or such other addresses or to theattention of such other person as the recipient party shall have specified by prior written notice to the sending party. 

 

**8. Severability.** In the event that any provision of this Agreement shall be held to be unreasonable, invalid, or unenforceable for anyreason whatsoever, the parties agree that: (i) such invalidity or unenforceability shall not affect any other provision of this Agreement and the remaining covenants, restrictions, and provisions hereof shall remain in full force and effect; and(ii) any court of competent jurisdiction may so modify the objectionable provision as to make it valid, reasonable, and enforceable, and such provision, as so modified, shall be valid and binding as though the invalid, unreasonable, or unenforceableportion thereof had not been included therein. 

 

**9.Complete Agreement.** This Agreement contains the entire agreement of the parties and supersedes and preempts any prior understandings, agreements or representations between Employee and the Company regarding the employment of Employee.

 

**10. Counterparts.** This Agreement may besimultaneously executed in two counterparts, each of which shall be an original, and all of which shall constitute but one and the same instrument. 

 

**11. Choice of Law.** This Agreement shall be governed by and construed in accordance with the laws of the State of Florida. 

 

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**12. Attorney’s Fees.** In the event that either party to this Agreement shall be forcedto retain the services of any attorney to enforce any of the provisions hereof, then the prevailing party in any ensuing litigation shall be entitled to recover from the non-prevailing party the prevailing party’s reasonable attorney’sfees, court costs or other expenses of litigation, whether incurred at trial or upon appeal. 

 

**13. Amendments/Waivers.** This Agreement may only be modified, amended, or waived by a writing duly authorized and executed by all parties. 

 

**IN WITNESS WHEREOF,** the parties have executed this Agreement on the day and year first above written. 

 
  
**THE COMPANY:**

Biovest International, Inc.
     **EMPLOYEE:**By: 
/s/ S. ALLARD
     
/s/ Richard Sakowicz
     
Its
 
S. ALLARD
     
Richard Sakowicz
        
8-1-03

 

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**Exhibit “A”**

 

**Employment Agreement**

**between**

**Biovest International, Inc.**

**and**

**Richard Sakowicz**

 

In accordance with Paragraph 2, Employee shall perform the following duties:

 

The duties of Chief Operating Officer (COO) or such other oradditional duties as may be assigned from time to time by the Board of Directors. 

 

**Exhibit “B”**

 

**Employment Agreement**

**between Biovest International, Inc.**

**and**

**Richard Sakowicz**

 

In accordance with Paragraph 3. Employee shall be paid the following Compensation which shall be paid as set forth below: 

 

**1.** $180,000 annual base salary, payable monthly (the “BaseSalary”); 

 

**2.** Annual Bonuses up to 20% of BaseSalary if 80% of the Biovest Bonus Goal as determined in the discretion of the Biovest Board of Directors based on revenue and profitability targets as established from time to time by the Biovest Board of Directors (the Biovest Bonus Goal”) isachieved. 30% of Base Salary if 100% of Biovest Bonus Goal is achieved, and 40% of Base Salary if 120% of Biovest Bonus Goal is achieved (the “Bonus”); and 

 

**3.** Options to purchase a number of shares of Biovest Common Stock of the Company (the “Option”) to besubsequently determined by Biovest. The Option shall vest in equal quantity increments over the term of this Agreement. The Option shall have an exercise period of seven years following the date of grant. The exercise price for each share under theOption shall be $0.50 per share. 

 

**Biovest International, Inc.**

 

**Covenant Not to Compete**

 

This Covenant Not to Compete is made and entered into by and between Biovest International, Inc., (hereinafter referred to as the “Company”),and Richard Sakowicz (hereinafter referred to as the “Second Party”). 

 

**R E C I T A L S:**

 

**WHEREAS,** the Company is a biotechnology company that develops, manufactures and markets cell culture systems and is the holder of a Cooperative Research and Development Agreement with the National Cancer Institute for thecommercialization of a personalized biologic cancer vaccine for treatment of non-Hodgkins lymphoma (the “Business”); 

 

**WHEREAS,** Second Party has executed an Employment Agreement with the Company; 

 

**WHEREAS,** Second Party acknowledges that the Company’s Business activities extend throughout the United Statesand around the world; 

 

**WHEREAS,** Second Partyacknowledges that through such employment he has and/or may acquire a special knowledge of the Company’s Business; and the clients, accounts, business lists, prospects, records, corporate policies, operational methods and techniques and otheruseful information and trade secrets of the Company (hereinafter all collectively referred to and defined as “Confidential Information”); 

 

**WHEREAS,** Second Party acknowledges that the Company’s legitimate business interests include the Confidential Information and theCompany’s customer goodwill (hereinafter referred to and defined as the “Company’s Legitimate Business Interests”) and that the Company’s Legitimate Business Interests would be harmed if Second Party engaged in competitiveactivities with the Company anywhere in the world; and 

 

**WHEREAS,** the Company and Second Party, pursuant to the provisions of this Agreement, wish to enter into an agreement as embodied herein whereby Second Party will refrain from owning, managing, or in any manner or capacity working ina Business that is similar to or competitive with the Business and from soliciting customers of the Company and employees of the Company for competitive purposes as defined herein during Second Party’s employment with the Company and during theperiod of one year after Second Party’s cessation of employment with the Company in the geographical location of anywhere in the world. 

 

**NOW, THEREFORE,** in consideration of the premises and the respective covenants and agreements of the parties herein contained, and for additionalgood and valuable consideration the receipt and sufficiency of which is acknowledged by the parties, including, but not limited to, the Second Party’s employment with the Company and the continuation of the Second Party’s employment withthe Company, the parties mutually agree as follows: 

 

**1.Confirmation of Recitals****–** The foregoing recitals are true and correct and are hereby ratified and confirmed by the parties and made an integral part of this Agreement; as such, the recitals shall be used in any constructionof this Agreement, especially as it relates to the intent of the parties. 

 

**2. Definition of Competition****–** For purposes of this Agreement “CompetitiveActivity” shall mean the development, manufacture or marketing of cell culture systems or any development, manufacture, marketing or other commercialization of a personalized biologic cancer vaccine for treatment of non-Hodgkins lymphoma.

 

**3. Non-Compete****–** The Second Partywill not do, or intend to do, any of the following, either directly or indirectly, during Second Party’s employment with the Company and during the period of one (1) year after Second Party’s cessation of employment with the Company,anywhere in the world: 

 

**a.** Own, manage,operate, control, consult for, be an officer or director of, work for, or be employed in any capacity by any company or any other business, entity, agency or organization which conducts an activity that is similar or competitive with the Business;or 

 

**b.** Solicit prior or currentcustomers of the Company for any purpose in competition (as defined herein) with the Company; or 

 

**c.** Solicit any then current employees employed by the Company without the Company’s consent. 

 

The Second Party and Company agree that the phrase“Second Party’s cessation of employment with the Company” as used in this Agreement, refers to any separation of Second Party from his employment at the Company either voluntarily or involuntarily, either with cause or without cause,or whether the separation is at the behest of the Company or the Second Party (hereinafter referred to and defined as “Second Party’s Cessation of Employment”). 

 

**4. Injunction and Damages -** Second Party agrees that this Agreement is important, material, confidential, andgravely affects the effective and successful conduct of the Business of the Company, and it effects its reputation and good will and is necessary to protect the Company’s legitimate Business interests. Second Party recognizes and agrees thatthe Company will suffer irreparable injury in the event of Second Party’s breach of any covenant or agreement contained herein and cannot be compensated by monetary damages alone, and Second Party therefore agrees that the Company, in additionto and without limiting any other remedies or rights that it may have, either under this Agreement or otherwise, shall have the right to obtain injunctive relief, both temporary and permanent, against the Second Party from any court of competentjurisdiction. Second Party further agrees that in the event of Second Party’s breach of any covenant or agreement contained herein, the Company, in addition to its right to obtain injunctive relief, shall further be entitled to seek damages,including, but not limited to, compensatory, incidental, consequential, exemplary, and lost profits damages. Second Party agrees to pay the Company’s reasonable attorney’s fees and costs for enforcement of this Agreement, if the SecondParty breaches this Agreement. 

 

**5. Miscellaneous-** Wherever used in this Agreement, the phrase “directly or indirectly” includes, but is not limited to Second Party acting through Second Party’s wife, children, parents, brothers, sisters, or any other relatives, friends,trustees, agents, associates or entities with which Second Party is affiliated with in any capacity. The Company may waive a provision of this Agreement only in a writing signed by a representative of the Board of Directors of the Company andspecifically stating what is waived. The rights of the Company under this 

 

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the covenants, warranties, and obligations of the Second Party cannot be assigned without the prior written approval of the Company. The title of thisAgreement and the paragraph headings of tills Agreement are not substantive parts of this Agreement and shall not limit or restrict this Agreement in any way. This Agreement survives after the Second Party’s Cessation of Employment. No change,addition, deletion, or amendment of this Agreement shall be valid or binding upon Second Party or the Company unless in writing and signed by Second Party and the Company. In the event a court of competent jurisdiction determines any covenant setforth herein to be too broad to be enforceable or determines this Agreement to be unreasonable, then said court may reduce the geographical area and/or the length of time provisions herein, in order to make this Agreement enforceable and reasonable.In construing this Agreement, neither of the parties hereto shall have any term or provision construed against such party solely by reason of such party having drafted same as each provision of this Agreement is deemed by the parties to have beenjointly drafted by the Company and Second Party. 

 

**6.Supersedes Prior Agreement -** This Covenant Not to Compete shall commence upon the date hereof. This Agreement shall, upon its commencement, supersede any prior Covenants Not to Compete between Second Party and the Company. 

 

**7. Second Party Acknowledgment -** The Second Party acknowledgesthat he has voluntarily and knowingly entered into this Agreement and that this Agreement encompasses the full and complete agreement between the parties with respect to the matters set forth herein. 

 

Executed on this      day of                     2003. 

 
**BIOVEST INTERNATIONAL, INC.**     **SECOND PARTY**By: 
/s/ S. ALLARD
     
/s/ Richard Sakowicz
     
Its
 
S. ALLARD
     
Richard Sakowicz
        
8-1-03

 

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**CONFIDENTIALITY AGREEMENT**

 

**THIS CONFIDENTIALITYAGREEMENT** is made and entered into this          day of                    , 2003, by and between Biovest International, lnc. (the “Company”) and Richard Sakowicz (the“Recipient”). 

 

In consideration of the opportunity ofthe Recipient to review certain proprietary materials of the Company in connection with the potential opportunity for the Recipient to invest in, perform services for, or otherwise do business with the Company (the “Business Opportunity”),and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties intending to be legally bound, hereby agree as follows: 

 

**1. CONFIDENTIALITY.** The parties hereby acknowledge that in connection withdiscussions relating to the Business Opportunity, the Recipient will likely acquire, or may assimilate, or have access to, certain trade secrets and information of the Company, including but not limited to products, formulas, concepts, inventions,methods, processes, costs, operations, product uses, customers and purchasers which have not been publicly disclosed or are not matters of common knowledge in the fields of work of the Company (“Confidential Information”). The Recipientagrees that both during and after the evaluation by the parties of entering into a Business Opportunity, and regardless of whether any such Business Opportunity is actually consummated, the Recipient will not, without prior written consent of theCompany, in any fashion, form or manner, either intentionally or otherwise, or directly or indirectly, divulge, disclose or communicate any of the Confidential Information to any third person, partnership, joint venture, company, corporation orother organization or use such Confidential Information for any purpose other than in connection with evaluating the Business Opportunity, nor shall the Recipient so divulge, disclose or communicate any other information of any kind, nature ordescription concerning any matters affecting or relating to the business of the Company, without regard to whether any or all of the foregoing matters would be deemed confidential. 

 

**2. RECIPIENT’S ASSOCIATES.** The Recipientagrees to use all reasonable means to ensure that any such Confidential Information will not be used or disclosed by any other party, including partners, associates, affiliates, employees or agents of the Recipient to the detriment of the Company,or to the advantage of any third party, partnership, joint venture company, corporation or other organization. 

 

**3. DISCLOSURETO THE COMPANY.** The Recipient agrees to discloseexclusively to the Company all ideas, products, formulas, methods, plans, developments, improvements or patentable inventions which relate directly or indirectly to the business of the Company and which are known, made or discovered in whole or inpart by the Recipient alone or with others at any time during the evaluation by the Recipient of the Business Opportunity, or during the existence of the Business Opportunity. All disclosures are to be made promptly after conception or discovery ofthe idea, product, formula, method, plan, development, improvement or invention. Any idea, product, formula, method, plan, development, improvement or invention which the Recipient is obligated to disclose to the Company under this Section 3 shallbe the property of the Company (unless a separate agreement such as a joint-development agreement is in force), regardless of whether it is actually disclosed by the Recipient to the Company. The Recipient 

 

agrees to provide any and all necessary assistance to the Company in making any patent applications or other applications for obtaining exclusive rights, andwill do all other things (including but not limited to testifying in any proceedings or suit, and executing any and all applications, assignments, or other documents or instruments) that may be reasonably necessary’ to vest in the Company orthe Company’ assigns all of the rights and interest in, and to apply for, obtain and protect any patent or letters patent, trademark or trade name in the United States and any foreign country, as well as any state or other subdivision thereoffor or relating to, the ideas, products, formulas, methods, plans, developments, improvements or inventions. 

 

**4. DELIVERY OF MATERIALS TO THECOMPANY.** Upon termination of the discussions relating to the Business Opportunity, the Recipient agrees that the Recipient will deliver to the Company all books, records, products, formulas, manuals, letters,notes, memoranda, notebooks, sketches, drawings, plans and all other documents or materials of a confidential nature or otherwise relating to the Company’ business, and also all copies of any of the foregoing, which are in the Recipient’spossession or under the Recipient’s control. 

 

**5.INDEMNIFICATION.** The Recipient agrees that the Recipient will indemnify the Company in respect of any and all claims, losses, costs, liabilities and expenses (including reasonable attorneys’ and legalassistants’ fees) directly or indirectly resulting from or arising out of any breach or claimed breach of this Agreement. 

 

**6. TERM.** This Agreement shall commence as of the date first above written and shall continue in full force andeffect thereafter for all time until the parties agree in writing to the contrary. 

 

**7. REMEDIES.** The Recipient agrees that damages at law will be an insufficient remedy to the Company if the Recipient violates the terms of this Agreement and that theCompany would suffer irreparable damage as a result of such violation. Accordingly, it is agreed that the Company shall be entitled, upon application to a court of competent jurisdiction, to obtain injunctive relief to enforce the provisions of thisAgreement, which injunctive relief shall be in addition to any other rights or remedies available to the Company. 

 

**8. COST OF ENFORCEMENT.** If the Company engages the services of an attorney orany other third party or in any way initiates legal action to enforce its rights under this Agreement, the Recipient agrees to pay to the Company all costs and expenses incurred by the Company relating to the enforcement of this Agreement (includingreasonable attorneys’ and legal assistants’ fees before, at and after trial and in appellate proceedings), Such costs and expenses shall be in addition to monies otherwise due it under this Agreement. 

 

**9. MISCELLANEOUS.** This Agreementshall be interpreted under the laws of the State of Florida, with venue for any action to be in Sarasota County, Florida. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid, but ifany provision of this Agreement shall be prohibited by or invalid under applicable law, such provisions shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remainingprovisions of this Agreement. The Recipient’s obligations under this Agreement shall be binding upon the Recipient’s successors, assigns and 

 

other legal representatives. This Agreement shall be construed equally with reference to both parties regardless of which party may have been the draftsman.This Agreement may be executed in multiple counterparts with each counterpart being deemed an original, and altogether constituting one instrument, and facsimile signatures shall be deemed originals. 

 
  BIOVEST INTERNATIONAL, INC.By: 
/s/ S. ALLARD
 
Printed Name:
 
S. ALLARD
     
RECIPIENT
By: 
/s/ Richard Sakowicz
 
Printed Name:
 
Richard Sakowicz
  
8-1-03

 

**Biovest International, Inc.**

 

**EMPLOYEE INVENTIONS AGREEMENT**

 

This inventions Agreement (the “Agreement”) is made this          day of                    , 2003 by and between Richard Sakowicz (“Employee”) and Biovest International, Inc., its subsidiaries,affiliates and related entities (collectively, the “Company”). In consideration of Employee’s employment and/or continued employment and other good and valuable consideration, receipt of which Employee hereby acknowledges. Employeeagrees, as follows: 

 

1. Assigning of Inventions.Employee shall assign and transfer to the Company his/her entire right, title and interest in and to all Inventions (as used in this Agreement, “Inventions” shall include, but not be limited to, ideas, improvements, designs anddiscoveries), whether or not patentable and whether or not reduced to practice, made or conceived by Employee (whether made solely by employee or jointly with others) during the period Employee performs services for the Company which relate in anymanner to the actual or anticipated business, work, or research and development of the Company or its affiliates, or result from or are suggested by any task assigned to Employee or any work performed by Employee for or on behalf of the Company orany of its affiliates. All Inventions are the sole property of the Company. 

 

2. Disclosure of Inventions: Patents. In connection with Inventions: 

 

(a) Employee will disclose all Inventions promptly in writing to the person to whom Employee reports at the Company, with a copy to thePresident of the Company, in order to permit the Company to enjoy rights to which it may be entitled under this Agreement; 

 

(b) Employee will, at the Company’s request, promptly execute a written assignment of title to the Company for any Invention, andEmployee will preserve any Invention as confidential information of the Company; and 

 

(c) Upon request, Employee will assist the Company or its nominee (at the Company’s expense) during and at any time subsequent toEmployee’s performance of services for the Company in every reasonable way in obtaining for its own benefit patents and copyrights for Inventions in any and all countries, which Inventions shall be and remain the sole and exclusive property ofthe Company or its nominee, whether or not patented or copyrighted. Employee will execute such papers and perform such lawful acts as the Company deems to be necessary to allow it to exercise all rights, title and interest in such patents andcopyrights. 

 

3. Execution of Documents. In connectionwith Paragraph 4(c), Employee will execute, acknowledge and deliver to the Company or its nominee upon request and at its expense all such documents, including applications for patents and copyrights and assignments of Inventions, patents andcopyrights to be issued therefore, as the Company may determine necessary or desirable to apply for and obtain letters patent and copyrights on Inventions in any and all countries and/or to protect the interest of the Company or its nominee inInventions, patents and copyrights and to vest title thereto in the Company or its nominee. 

 

4. Maintenance of Records. Employee will keep and maintain adequate and current written records ofall Inventions made by Employee (in the form of notes, sketches, drawings and as may be specified by the Company), which records shall be available to and remain the sole property of the Company at all times. 

 

5. Prior Inventions. It is understood that all Inventions, if any,patented or unpatented, which Employee made prior to the time the Company and Employee began to consider Employee’s possible performance of services are excluded from the scope of this Agreement. To preclude any possible uncertainty, Employeehave set forth on Exhibit A attached hereto a complete list of all such prior inventions, including numbers of all patents and patent applications, and a brief description of all unpatented inventions which are not the property of anotherparty (including, without limitation, a current or previous contracting party). The list is complete and if no items are included on Exhibit A, Employee has no such prior inventions. Employee will notify the Company in writing before he/shemakes any disclosure or perform any work on behalf of the Company which appears to threaten or conflict with proprietary rights Employee claims in any such Invention or idea. In the event of the Employee’s failure to give such notice, Employeewill make no claim against the Company with respect to any such inventions or ideas. 

 

6. Other Obligations. (a) Employee acknowledges that the Company from time to time may have agreements with other persons or with the U.S. Government, or agencies thereof, which impose obligations orrestrictions on the Company regarding inventions made during the course of work there under or regarding the confidential nature of such work. Employee will be bound by all such obligations and restrictions and will take all action necessary todischarge the obligations of the Company there under. 

 

7.Trade Secrets of Others. Employee represent that Employee’s performance of all the terms of this Agreement and as a consultant or employee to the Company does not and will not breach any agreement to keep in confidence proprietaryinformation, knowledge or data acquired by me in confidence or in trust, and Employee will not disclose to the Company, or induce the Company to use, any confidential or proprietary information or material belonging to any other person or entity.Employee will not enter into any agreement, either written or oral, in conflict herewith. 

 

8. Injunctive Relief. Employee acknowledges that any breach or attempted breach by Employee of this Agreement or any provision hereof shall cause the Company irreparable harm for which any adequate monetaryremedy does not exist. Accordingly, in the event of any such breach or threatened breach, the Company shall be entitled to obtain injunctive relief, without the necessity of posting a bond or other surety, restraining such breach or threatenedbreach. 

 

9. Modification. This Agreement may not bechanged, modified, released, discharged, abandoned, or otherwise amended, in whole or in part, except by an instrument in writing, signed by Employee and by the Company. Any subsequent change or changes in Employee’s consulting relationshipwith the Company or Employee’s compensation shall not affect the validity or scope of this Agreement. 

 

10. Term. This Agreement shall commence simultaneously with the commencement of Employee’sEmployment Agreement with Biovest and shall continue for the term of the Employment Agreement and any extension thereof for a period of one years thereafter. 

 

11. Entire Agreement. Employee acknowledges receipt of this Agreement, and agrees that with respect to the subject matter thereof it isEmployee’s entire agreement with the Company, superseding any previous oral or written communications, representations, understandings, or agreements with the Company or any officer or representative thereof. 

 

11. Severability. In the event that any paragraph or provision of thisAgreement shall be held to be illegal or unenforceable, and the entire Agreement shall not fail on account thereof, but shall otherwise remain in full force and effect, and such paragraph or provision shall be enforced to the maximum extentpermissible. 

 

12. Successors and Assigns. This Agreementshall be binding upon Employee’s heirs, executors, administrators or other legal representatives and is for the benefit of the Company, its successors and assigns. 

 

13. Governing Law. This Agreement shall be governed by the laws of the State of Florida except for any conflicts oflaw rules thereof which might direct the application of the substantive laws of another state. 

 

14. Counterparts. This Agreement may be signed in two counterparts, each of which shall be deemed an original and both of which shall together constitute one agreement. 

 

EXECUTED under seal as of the date set forth below. 

 

Dated: 7/31/03
          
/s/ Richard Sakowicz
    
Witness
     
Richard Sakowicz
      
8-1-03

Accepted and Agreed:
      
Biovest International, Inc.
      By:               
Name:
        
Title: