Document:

2003 Stock Option Plan

 Exhibit 10.23 
  
 ACCENTIA, INC. 
 2003 STOCK OPTION PLAN 
  

	1.	Purpose. The Accentia, Inc. 2003 Stock Option Plan (the “Plan”) is established to create an additional incentive for key employees, directors and consultants
or advisors of Accentia, Inc. and any successor corporations thereto (collectively referred to as the “Company”), and any present or future parent and/or subsidiary corporations of such corporation (all of whom along with the
Company being individually referred to as a “Participating Company” and collectively referred to as the “Participating Company Group”), to promote the financial success and progress of the Participating
Company Group. For purposes of the Plan, a parent corporation and a subsidiary corporation shall be as defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended (the “Code”). 

  

	2.	Administration. The Plan shall be administered by the Board of Directors of the Company (the “Board”) and/or by a duly appointed committee of the Board
having such powers as shall be specified by the Board. Any subsequent references herein to the Board shall also mean the committee if such committee has been appointed and, unless the powers of the committee have been specifically limited, the
committee shall have all of the powers of the Board granted herein, other than power to terminate or amend the Plan as provided in Paragraph 12 hereof, subject to the terms of the Plan and any applicable limitations imposed by law. All questions of
interpretation of the Plan or of any option granted under the Plan (an “Option”) shall be determined by the Board, and such determinations shall be final and binding upon all persons having an interest in the Plan and/or any Option.
Options may be either incentive stock options as defined in Section 422 of the Code (“Incentive Stock Options”) or nonqualified stock options. Any officer of a Participating Company shall have the authority to act on behalf of the
Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the officer has apparent authority with respect to such matter, right, obligation, or
election. 

  

	3.	Eligibility. The Options may be granted only to employees (including officers) and directors of the Participating Company Group or to individuals who are rendering services
as consultants, advisors or other independent contractors to the Participating Company Group. The Board, in its sole discretion, shall determine which persons shall be granted Options (an “Optionee”). A director of the Company shall
be eligible to be granted only a nonqualified stock option unless the director is also an employee of the Company. An individual who is rendering services as a consultant, advisor, or other independent contractor shall be eligible to be granted only
a nonqualified stock option. An Optionee may, if otherwise eligible, be granted additional Options. 

  

	4.	Shares Subject to Option. Options shall be options for the purchase of the authorized but unissued Common Stock of the Company (the “Common Stock”) and
authorized but unissued Series D Convertible Preferred Stock of the Company (the “Series D Preferred 

 Stock”), subject to adjustment as provided in Paragraph 10 below. The Common Stock and the
Series D Preferred Stock are collectively referred to herein as the “Stock.” The maximum number of shares of Common Stock which may be issued under the Plan is
                                        
(                    ) shares. The maximum number of shares of Series D Preferred Stock which may be issued under the Plan is
                                        
(                    ). In the event that any outstanding Option for any reason expires or is terminated or cancelled and/or shares of Stock
subject to repurchase are repurchased by the Company, the shares of Stock allocable to the unexercised portion of such Option, or such repurchased shares of Stock, may again be subject to an Option grant. It is intended that the Plan shall
constitute a written compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act of 1933, as amended (“Rule 701”), and that the Plan shall otherwise be administered in compliance with the
requirements of Rule 701. To ensure such compliance, the Board shall maintain a record of shares of Stock subject to outstanding Options under the Plan and the exercise price of such Options, plus a record of all shares of Stock issued upon the
exercise of such Options and the exercise price of such Options. 
  

	5.	Time for Granting Options. All Options shall be granted, if at all, within ten (10) years from the earlier of the date the Plan is adopted by the Board or the date the Plan
is duly approved by the stockholders of the Company. 

  

	6.	Terms, Conditions and Form of Options. Subject to the provisions of the Plan, the Board shall determine for each Option (which need not be identical) the number of shares of
Stock for which the Option is granted, whether the Option is to be treated as an Incentive Stock Option or as a nonqualified stock option and all other terms and conditions of the Option not inconsistent with the Plan. Options granted pursuant to
the Plan shall comply with and be subject to the following terms and conditions: 

  

	 	(a)	Option Price. The option price for each Option shall be established in the sole discretion of the Board; provided, however, that (i) the option price per share for an
Incentive Stock Option shall be not less than the fair market value of a share of Stock on the date of the granting of the Incentive Stock Option and (ii) the option price per share of an Incentive Stock Option granted to an Optionee who at the time
the Incentive Stock Option is granted owns stock possessing more than ten percent (10%) of the total combined voting power of all classes of stock of a Participating Company within the meaning of Section 422(b)(6) of the Code (a “Ten Percent
Owner Optionee”) shall be not less than one hundred ten percent (110%) of the fair market value of a share of Stock on the date the Option is granted. For this purpose, “fair market value” means the value assigned to the
stock for a given day by the Board, as determined pursuant to a reasonable method established by the Board that is consistent with the requirements of Sections 422 and 424 of the Code and the regulations thereunder (which method may be changed from
time to time). Notwithstanding the foregoing, an Option (whether an Incentive Stock Option or a nonqualified stock option) may be granted by the Board in its discretion with an exercise price lower than the minimum exercise price set forth above if
such Option is granted pursuant to an assumption or 

  

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 substitution for another option in a manner qualifying with the provisions of Section 424(a) of the Code.
Nothing hereinabove shall require that any such assumption or modification will result in the Option having the same characteristics, attributes or tax treatment as the Option for which it is substituted. 
  

	 	(b)	Exercise Period of Options. The Board shall have the power to set the time or times within which each Option shall be exercisable or the event or events upon the occurrence
of which all or a portion of each Option shall be exercisable and the term of each Option; provided, however, that (i) no Incentive Stock Option shall be exercisable after the expiration of ten (10) years after the date such Incentive Stock Option
is granted, (ii) no Incentive Stock Option granted to a Ten Percent Owner Optionee shall be exercisable after the expiration of five (5) years after the date such Incentive Stock Option is granted and (iii) no Incentive Stock Option shall be
exercisable after the date the Optionee’s employment with the Participating Company Group is terminated for cause (as determined by the Board in its sole discretion); and provided, further, an Option shall terminate and cease to be exercisable
no later than three (3) months after the date on which the Optionee terminates employment with the Participating Company Group, unless the Optionee’s employment with the Participating Company Group shall have terminated as a result of the
Optionee’s death or disability (within the meaning of Section 22(e)(3) of the Code), in which event the Option shall terminate and cease to be exercisable no later than twelve (12) months from the date on which the Optionee’s employment
terminated. For this purpose, an Optionee’s employment shall be deemed to have terminated on account of death if the Optionee dies within three (3) months following the Optionee’s termination of employment. 

  

	 	(c)	Payment of Option Price. Payment of the option price for the number of shares of Stock being purchased pursuant to any Option shall be made in cash, by check, cash equivalent
or in any other form as may be permitted by the Board in its sole discretion. 

  

	 	(d)	$100,000 Limitation. The aggregate fair market value, determined as of the date on which an Incentive Stock Option is granted, of the shares of Stock with respect to which
incentive stock options (determined without regard to this subparagraph) are first exercisable during any calendar year (under this Plan or under any other plan of the Participating Company Group) by any Optionee shall not exceed $100,000. If such
limitation would be exceeded with respect to an Optionee for a calendar year, the Incentive Stock Option shall be deemed a nonqualified stock option to the extent of such excess. 

  

	7.	Standard Form of Stock Option Agreement. All Options shall be evidenced by a written agreement substantially in the form of the nonqualified stock option agreement attached
hereto as Exhibit A or the incentive stock option agreement attached hereto as Exhibit B, as applicable, both of which are incorporated herein by reference (the “Standard Option Agreements”) or such other form as shall
be approved by the Board consistent with the terms of this Plan. 

  

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	8.	Transfer of Control. Upon a merger, consolidation, corporate reorganization, or any transaction in which all or substantially all of the assets or stock of the
Company are sold, leased, transferred or otherwise disposed of (other than a mere reincorporation transaction or one in which the holders of capital stock of the Company immediately prior to such merger or consolidations continue to hold at least a
majority of the voting power of the surviving corporation) (a “Transfer of Control”), then any unexercisable portion of an outstanding Option shall become immediately exercisable as of a date prior to the Transfer of Control, which
date shall be determined by the Board in its sole discretion. Notwithstanding the foregoing, an outstanding Option shall not so accelerate if and to the extent: (i) such Option is, in connection with a Transfer of Control, either to be assumed by
the successor corporation (or parent thereof) or to be replaced with a comparable option to purchase shares of the capital stock of the successor corporation (or parent thereof), (ii) such Option is to be replaced with a cash incentive program of
the successor corporation which preserves the spread existing on the unvested Option at the time of such Transfer of Control and provides for subsequent payout in accordance with the same vesting schedule applicable to such Option, or (iii) the
acceleration of such Option is subject to other limitations imposed by the Board at the time of the grant of the Option. The determination of option comparability under clause (i) above shall be made by the Board in its sole discretion, and its
determination shall be final, binding and conclusive. The exercise of any Option that was permissible solely by reason of this Paragraph 8 shall be conditioned upon the consummation of the Transfer of Control. The Board may further determine, in its
sole discretion to provide that any Options which became exercisable solely by reason of this Paragraph 8 and which are not exercised as of the date of the Transfer of Control shall terminate effective as of the date of the Transfer of
Control. 

  

	9.	Authority to Vary Terms. The Board shall have the authority from time to time to vary the terms of the Standard Option Agreements either in connection with the
grant of an individual Option or in connection with the authorization of a new standard form or forms; provided, however, that the terms and conditions of such revised or amended standard form or forms of stock option agreement shall be in
accordance with the terms of the Plan. Such authority shall include, but not be limited to, the authority to grant Options which are not immediately exercisable. 

  

	10.	Effect of Change in Stock Subject to Plan. The Board shall make appropriate adjustments in the number and class of shares of Stock subject to the Plan and to any outstanding
Options and in the option price of any outstanding Options in the event of a stock dividend, stock split, reverse stock split, combination, reclassification or like change in the capital structure of the Company. 

  

	11.	Options Non-Transferable. During the lifetime of the Optionee, the Option shall be exercisable only by the Optionee. No Option shall be assignable or transferable by the
Optionee, except by will or by the laws of descent and distribution. 

  

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	12.	Termination or Amendment of Plan. The Board may terminate or amend the Plan at any time; provided however, that without the approval of the Company’s stockholders, there
shall be (a) no increase in the total number of shares of Stock covered by the Plan (except by operation of the provisions of Paragraph 10 above), (b) no change in the class of persons eligible to receive Incentive Stock Options, and (c) no
extension of the period during which Incentive Stock Options may be granted beyond the date which is ten (10) years following the date the Plan is adopted by the Company or the date the Plan is approved by the stockholders of the Company. In any
event, no amendment may adversely affect any then outstanding Option or any unexercised portion thereof, without the consent of the Optionee, unless such amendment is required to enable an Option designated as an Incentive Stock Option to qualify as
an Incentive Stock Option. 

  

	13.	Miscellaneous. 

  

	 	(a)	Nothing in this Plan or any Option granted hereunder shall confer upon any Optionee any right to continue in the employ of the Participating Company Group, or to serve as a director
thereof, or interfere in any way with the right of a Participating Company to terminate his or her employment at any time. Unless specifically provided otherwise, no grant of an Option shall be deemed salary or compensation for the purpose of
computing benefits under any employee benefit plan or other arrangement of a Participating Company for the benefit of its employees unless the Participating Company shall determine otherwise. No Optionee shall have any claim to an Option until it is
actually granted under the Plan. To the extent that any person acquires a right to receive payments from the Company under the Plan, such right shall, except as otherwise provided by the Board, be no greater than the right of an unsecured general
creditor of the Company. All payments to be made hereunder shall be paid from the general funds of the Company, and no special or separate fund shall be established and no segregation of assets shall be made to assure payment of such amounts, except
as otherwise provided by the Committee. 

  

	 	(b)	The Plan and the grant of Options hereunder shall be subject to all applicable federal and state laws, rules, and regulations and to such approvals by any United States government
or regulatory agency as may be required. 

  

	 	(c)	The terms of the Plan shall be binding upon the Company, and its successors and assigns. 

  

	 	(d)	This Plan shall be governed by the laws of the State of Florida as such laws are applied to agreements entered into and performed entirely within the State of Florida and without
regard to the rules of such State regarding choice of laws. 

  

	 	(e)	With respect to any payments not yet made to an Optionee by the Company, nothing contained herein shall give any such Optionee any rights that are greater than those of a general
creditor of the Company. 

  

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	 	(f)	If any provision of this Plan or a Standard Option Agreement is or becomes or is deemed invalid, illegal or unenforceable in any jurisdiction, or would disqualify the Plan or any
Standard Option Agreement under any law deemed applicable by the Board, such provision shall be construed or deemed amended to conform to applicable laws or if it cannot be construed or deemed amended without, in the determination of the Board,
materially altering the intent of the Plan or the Standard Option Agreement, it shall be stricken and the remainder of the Plan or the Standard Option Agreement shall remain in full force and effect. 

  
 IN WITNESS WHEREOF, the undersigned Secretary of the Company certifies that
the foregoing Plan was duly adopted by the Board of Directors of the Company on February     , 2003 and by the stockholders of the Company on February     , 2003. 
  

			
	 By:
	 	  

	 	 	 Secretary

  

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 EXHIBIT A 
  

[Date] 
  
 Accentia, Inc. 
  
 _____________________________

  
 _____________________________ 
  
 Attn: President 
  

	 	Re:	Exercise of Incentive Stock Option 

  
 Dear Sirs: 
  
 Pursuant to the terms and conditions of the Incentive Stock Option Agreement dated as of              (the “Agreement”), between
                             (“Optionee”) and Accentia, Inc. (the
“Company”), Optionee hereby agrees to purchase              shares (the “Shares”) of the [Common Stock/Series D Convertible Preferred Stock] of the
Company and tender payment in full for such shares in accordance with the terms of the Agreement. 
  
 The Shares are being issued to Optionee in a transaction not involving a public offering and pursuant to an exemption from registration under the
Securities Act of 1933, as amended (the “1933 Act”). In connection with such purchase, Optionee represents, warrants and agrees as follows: 
  

	 	1.	The Shares are being purchased for the Optionee’s own account and not for the account of any other person, with the intent of holding the Shares for investment and not with the
intent of participating, directly or indirectly, in a distribution or resale of the Shares or any portion thereof. 

  

	 	2.	The Optionee is not acquiring the Shares based upon any representation, oral or written, by any person with respect to the future value of, or income from, the Shares, but rather
upon independent examination and judgment as to the prospects of the Company. 

  

	 	3.	The Optionee has had complete access to and the opportunity to review all material documents related to the business of the Company, has examined all such documents as the Optionee
desired, is familiar with the business and affairs of the Company and realizes that any purchase of the Shares is a speculative investment and that any possible profit therefrom is uncertain. 

  

	 	4.	The Optionee has had the opportunity to ask questions of and receive answers from the Company and its executive officers and to obtain all information necessary for the Optionee to
make an informed decision with respect to the investment in the Company represented by the Shares. 

	5.	The Optionee is able to bear the economic risk of any investment in the Shares, including the risk of a complete loss of the investment, and the Optionee acknowledges that he or she
may need to continue to bear the economic risk of the investment in the Shares for an indefinite period. 

  

	6.	The Optionee understands and agrees that the Shares are being issued and sold to the Optionee without registration under any state or federal laws relating to the registration of
securities, in reliance upon exemptions from registration under appropriate state and federal laws based in part upon the representations of the Optionee made herein. 

  

	7.	The Company is under no obligation to register the Shares or to comply with any exemption available for sale of the Shares by the Optionee without registration, and the Company is
under no obligation to act in any manner so as to make Rule 144 promulgated under the 1933 Act available with respect to any sale of the Shares by the Optionee. 

  

	8.	The Optionee has not relied upon the Company or an employee or agent of the Company with respect to any tax consequences related to exercise of this Option or the disposition of the
Shares. The Optionee assumes full responsibility for all such tax consequences and the filing of all tax returns and elections the Optionee may be required to or find desirable to file in connection therewith. 

  

	
	Very truly yours,
	
	  

	 Print Name:

	
	  

	  

	  

	(Address)

  

 2 

 FIRST AMENDMENT 
 TO ACCENTIA, INC. 
 2003 STOCK OPTION PLAN 
  
 THIS FIRST AMENDMENT of Accentia, Inc. Stock Option Plan is dated as of May
9th, 2003. 
  
 WHEREAS, the Board of Directors of Accentia, Inc.
(the “Company”) has adopted and the stockholders of the Company have approved the Accentia, Inc. 2003 Stock Option Plan (the “Plan”); and 
  
 WHEREAS, the Board of Directors deems it to be in the best interest of the Company to amend the Plan in order to increase the maximum number of shares of
Series D Convertible Preferred Stock issuable pursuant to options granted under the Plan from 648,871 to 762,571. 
  
 NOW, THEREFORE, the Plan shall be amended as follows: 
  
 1. The fourth sentence of Paragraph 4 of the Plan shall be deleted in its entirety and the following substituted in lieu thereof: 
  
 “The maximum number of shares of Series D Preferred Stock which may be
issued under the Plan is Seven Hundred Sixty Two Thousand Five Hundred Seventy One (762,571).” 
  
 2. Except as herein amended, the terms and provisions of the Plan shall remain in full force and effect as originally adopted and approved. 
  
 IN WITNESS WHEREOF, the undersigned hereby certifies that this First
Amendment was duly adopted by the Board of Directors and the stockholders of the Company as of the 9th day of May, 2003. 
  

			
	ACCENTIA, INC.
		
	By:	 	/S/    FRANK E. O’DONNELL, JR.,
M.D.        
	 	 	 Frank E. O’Donnell, Jr., M.D.
 Chairman

  

			
	ATTEST:
		
	By:	 	/S/    J. ROBERT TYLER,
III        
	 	 	J. Robert Tyler, III, Assistant Secretary

 EXHIBIT C 
  
 SECOND AMENDMENT 
 TO ACCENTIA, INC. 
 2003 STOCK OPTION PLAN 
 (adopted February 27, 2004) 
  
 THIS SECOND AMENDMENT of Accentia, Inc. 2003 Stock Option Plan is dated as of February 27, 2004. 
  
 WHEREAS, the Board of Directors of Accentia, Inc. (the “Company”) has adopted and the stockholders of the Company have approved the
Accentia, Inc. 2003 Stock Option Plan (the “Plan”); and 
  
 WHEREAS, the Board of Directors deems it to be in the best interest of the Company to amend the Plan to increase the number of Common Stock Options that may be granted under the Plan from Two Million Eight Hundred
Thirty-Two Thousand Nine Hundred Twenty-Nine (2,832,929) to Three Million Five Hundred Thousand (3,500,000). 
  
 NOW, THEREFORE, the Plan shall be amended as follows: 
  
 2. Paragraph 4 of the Plan is hereby deleted in its entirety and the following substituted in lieu thereof: 
  
 4. “Shares Subject to Plan. Options shall be options for the
purchase of the authorized but unissued Common Stock of the Company (the “Common Stock”) and authorized but unissued Series D Convertible Preferred Stock of the Company (the “Series D Preferred Stock”), subject to
adjustment as provided in Paragraph 10 below. The Common Stock and Series D Preferred Stock are collectively referred to herein as the “Stock.” The maximum number of shares of Common Stock which may be issued under the Plan is Three
Million Five Hundred Thousand (3,500,000) shares. The maximum number of shares of Series D Preferred Stock which may be issued under the Plan is Seven Hundred Sixty-Two Thousand Five Hundred Seventy-One (762,571) shares. In the event that any
outstanding Option for any reason expires or is terminated or cancelled and/or shares of Stock subject to repurchase are repurchased by the Company, the shares of Stock allocable to the unexercised portion of such Option, or such repurchased shares
of Stock, may again be subject to an Option grant. It is intended that the Plan shall constitute a written compensatory benefit plan within the meaning of Rule 701 promulgated under the Securities Act of 1933, as amended (“Rule
701”), and that the Plan shall otherwise be administered in compliance with the requirements of Rule 701. To ensure such compliance, the Board shall maintain a record of shares of Stock subject to outstanding Options under the Plan and the
exercise price of such Options, plus a record of all shares of Stock issued upon the exercise of such Options and the exercise price of such Options.” 

 3. Except as herein amended, the terms and provisions of the Plan shall remain in full force and effect
as originally adopted and approved. 
  
 IN WITNESS WHEREOF, the
undersigned hereby certifies that this Second Amendment was duly adopted by the Board of Directors and the stockholders of the Company as of February 27, 2004. 
  

			
	ACCENTIA, INC.
		
	By	 	  

	 	 	Frank E. O’Donnell, Jr., M.D.
	 	 	Chairman

  

 2Employment Agreement

  
 Exhibit 10.24

  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made
and entered into effective as of January 1 2005, (the “Effective Date”), by and between Accentia Biopharmaceuticals, Inc., a Florida corporation (the “Company”), and Frank O’Donnell, Jr., M.D., an individual
residing in the State of Florida (the “Employee”). 
  
 WITNESSETH: 
  
 WHEREAS, the Company
desires to employ the Employee, and the Employee desires to accept such employment, on the terms and subject to the conditions set forth in this Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the parties hereto covenant and agree as
follows: 
  
 1. Employment. The Company hereby
employs Employee, and the Employee hereby accepts such employment, upon the terms and conditions set forth in this Agreement. 
  
 2. Term. 
  
 (a) Subject to the terms and conditions of this Agreement, including, but not limited to, the provisions for termination set forth in
Section 5 hereof, the employment of the Employee under this Agreement shall commence on the Effective Date and shall continue for a term of five years from January 1, 2005 (the “Initial Term”). 
  
 (b) Upon the expiration of the Initial Term, the
Employee’s employment with the Company will continue on an “at-will” basis and may be terminated by Employee or the Company for any reason and at any time, provided that the terminating party shall provide at least thirty (30) days
prior written notice of the termination to the other party (unless the termination is pursuant to clause (2), (3), or (4) of Section 5(d) of this Agreement, in which case the Employee’s employment may be terminated immediately). 
  
 3. Duties. Employee will initially serve as Chief Executive
Officer of the Company. The Employee will devote Employee’s primary business time, attention, skill, and energy exclusively to the business of the Company, will use the Employee’s best efforts to promote the success of the Company’s
business, and will cooperate fully with the Board of Directors in the advancement of the best interests of the Company. Notwithstanding the foregoing, Company acknowledges that Employee shall be entitled to devote reasonable time to the management
of personal and family investments and business activities and to continue existing business and employment relationships, provided such activities do not interfere with Employees duties hereunder. Furthermore, the Employee shall assume and
competently perform such reasonable responsibilities and duties as may be assigned to the Employee from time to time by the Board of Directors of the Company. To the extent that the Company shall have any parent company, subsidiaries, affiliated
corporations, partnerships, or joint ventures (collectively “Related Entities”), the Employee shall perform such duties to promote these entities and their respective interests to the same extent as the interests of the Company
without additional compensation. At all times, the Employee agrees that the Employee has read and will abide by, and prospectively 

  

 
will read and abide by, any employee handbook, policy, or practice that the Company or Related Entities has or hereafter adopts with respect to its employees
generally. 
  
 4. Compensation.  
  
 (a) Annual Base Salary. As compensation for
Employee’s services and in consideration for the Employee’s covenants contained in this Agreement, the Company shall pay the Employee an annual base salary of one dollar ($1) (“Base Salary”). Such annual Base Salary shall be
subject to any tax and other withholdings or deductions required by applicable laws and regulations. For purposes of this Agreement, the term “Salary Year” means the twelve-month period that begins on the Effective Date and ends on
the first (1st) anniversary of the Effective Date and each successive twelve-month period thereafter that ends on an
anniversary of the Effective Date. For purposes hereof, “Compensation Committee” shall mean the appropriate committee of the Board of Directors that handles compensation matters or in the absence of such a committee the Board of Directors.

  
 (b) Other Benefits. During the term of
the Employee’s employment hereunder, the Employee shall be eligible to participate in such pension, life insurance, health insurance, disability insurance and other benefits plans, if any, which the Company may from time to time make available
to similar-level employees. In the event Employee elects not to participate in any insurance program made available by the Company to employees, the Company shall pay Employee an amount equal to the employer contribution that would be required if
Employee had elected to participate. 
  
 (c)
Vacation. The Employee shall be entitled to eight weeks paid vacation during each Salary Year during the term of the Employee’s employment hereunder. Unused vacation from a particular Salary Year will not carry over to succeeding Salary
Years, and the Employee will be paid for any unused vacation. 
  
 (d) Reimbursement of Expenses. The Employee shall be reimbursed for all reasonable and customary travel and other business expenses incurred by Employee in the performance of Employee’s duties hereunder,
provided that such reimbursement shall be subject to, and in accordance with, any expense reimbursement policies and/or expense documentation requirements of the Company that may be in effect from time to time. The reimbursement expense shall
include reasonable cost and expenses of required continuing education requirements, professional dues and memberships deemed appropriate. 
  
 5. Termination. 
  
 (a) Death. The Employee’s employment under this Agreement shall terminate immediately upon Employee’s death. In the event
of a termination pursuant to this Section 5(a), the Employee’s estate shall be entitled to receive any unpaid base salary owing to Employee up through and including the date of the Employee’s death. 
  
 (b) Disability. If, during the term of the
Employee’s employment hereunder, the Employee becomes physically or mentally disabled in accordance with the terms and conditions of any disability policy covering the Employee or, if due to any physical or mental 

  

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condition, the Employee becomes unable for a period of more than sixty (60) days during any six-month period to perform Employee’s duties hereunder on
substantially a full-time basis as determined by the Company in its sole discretion, the Company may, at its option, terminate the Employee’s employment upon not less than thirty (30) days written notice. In the event of a termination pursuant
to this Section 5(b), the Employee shall be entitled to receive the severance compensation as provided in Section 5(f) below. 
  
 (c) Termination By Company Without Cause. In addition to the other termination provisions of this Agreement, the Company may
terminate the Employee’s employment at any time without cause (a “Termination Without Cause”). In such event, Employee will be entitled to the severance compensation set forth in Section 5(f) below. 
  
 (d) Termination By Company With Cause. The Company
may terminate the Employee’s employment at any time with Cause. As used in this Agreement, “Cause” shall mean the following: (1) the Employee’s willful or intentional failure to perform Employee’s duties under this
Agreement; (2) dishonesty, misconduct, or unlawful acts that adversely affect the Company; (3) a material violation of the Company’s policies or practices which reasonably justifies immediate termination; (4) pleading guilty or no contest to,
or conviction of, a felony or any crime involving moral turpitude, fraud, dishonesty, or misrepresentation; (5) the intentional commission by the Employee of any act which could reasonably be expected to materially injure the reputation, business,
or business relationships of the Company or Related Entities; (6) the Employee’s inability to perform an essential function of Employee’s position; or (7) any material breach by Employee of this Agreement. The Company may terminate this
Agreement for Cause, as defined in clauses (1), (3), (5), (6) and (7) above, upon thirty days prior written notice (the “Cause Notification Period”) to Employee, but such termination shall only become effective in the event of
Employee’s failure to cure the applicable breach or violation, to the reasonable satisfaction of Company, prior to the end of the Cause Notification Period. The Company may terminate this Agreement for Cause, as defined in clauses (2) and (4)
above, at any time with no notice. In the event of a termination for Cause, the Company shall be relieved of all its obligations to the Employee provided for by this Agreement as of the effective date of termination, and all payments to the Employee
hereunder shall immediately cease and terminate as of such date, except that Employee shall be entitled to the annual base salary hereunder up to and including the effective date of termination and, except in the event of termination pursuant to (2)
or (4), the severance compensation as provide in Section 5(f) below. 
  
 (e) Termination for Good Reason. The Employee may terminate his employment at any time for Good Reason upon written notice to the Company. For this purpose, “Good Reason” shall mean any of the
following: (a) the Company’s material breach of this Agreement, which breach is not cured by the Company within thirty (30) calendar days after written notice to the Company specifying such breach and stating that such notice is being delivered
pursuant to this clause; (b) the assignment of the Employee without his consent to a position, responsibilities, or duties of a materially lesser status or degree of responsibility than his position, responsibilities, or duties at the Effective
Date; or (c) the relocation of the Company’s principal executive offices outside the metropolitan Tampa, Florida, area; or (d) the requirement by the Company that the Employee be based anywhere other than the Company’s principal executive
offices, in either case without the Employee’s consent. 
  

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 (f) Termination Pay. In the event of a termination by the Company Without Cause,
because of Disability, or For Cause except for termination pursuant to subsection (2) or (4) of Section 5(d) or termination by Employee for Good Reason, the Employee shall be entitled to receive only such compensation as is provided in this Section
5(f), and such compensation shall be in lieu of all other amounts and in settlement and complete release of all claims the Employee may have against the Employer (“Section 5(f) Termination”). Upon a Section 5(f) Termination, the Employee
shall continue to receive the Employee’s Base Salary (as then in effect) during the twelve month period immediately following the effective date of the Section 5(f) Termination (the “Severance Period”). In addition to the
severance pay described in the preceding sentence, the Employee shall continue to receive, during the Severance Period, all employee health and welfare benefits that Employee would have received during the Severance Period in the absence of such
termination. Employee agrees and acknowledges, however, that Employee will forfeit the right to receive Base Salary and benefits during the Severance Period immediately upon the Employee’s breach of any covenant set forth in Section 6 of this
Agreement. In the event of a Section 5(f) Termination, all options previously granted to Employee shall continue to vest during the Section 5(f) Severance Period. Notwithstanding the foregoing, the expiration of the Employee’s employment
pursuant to Section 2(a) of this Agreement or the termination of the Employee’s employment for any reason other than a Section 5(f) Termination shall not give rise to any severance payment or other benefits pursuant to this Section 5(f).

  
 6. Noncompetition, Nonsolicitation, and Nondisclosure
Covenants. 
  
 (a) Rationale for
Restrictions. Employee acknowledges that Employee’s services hereunder are of a special, unique, and extraordinary character, and Employee’s position with the Company places Employee in a position of confidence and trust with
customers, suppliers, and other persons and entities with whom the Company and its Related Entities have a business relationship. The Employee further acknowledges that the rendering of services under this Agreement will likely require the
disclosure to Employee of Confidential Information (as defined below) relating to the Company and/or Related Entities. As a consequence, the Employee agrees that it is reasonable and necessary for the protection of the goodwill and legitimate
business interests of the Company and Related Entities that the Employee make the covenants contained in this Section 6, that such covenants are a material inducement for the Company to employ the Employee and to enter into this Agreement, and that
the covenants are given as an integral part of and incident to this Agreement. 
  
 (b) Noncompetition and Nonsolicitation Covenants. As used herein, the term “Restrictive Period” means the time
period commencing on the Effective Date of this Agreement and ending on the second (2nd) anniversary of the date on
which the Employee’s employment by the Company (or any Related Entity) expires or is terminated. The Employee agrees that, during the Restrictive Period, the Employee will not utilize his or her knowledge of the business of the Company or his
or her relationships with investors, suppliers, customers, clients, or financial institutions to compete with the Company or any of the Related Entities in any business which is the same as, or similar to, any business conducted by the Company or
any of the Related Entities at any time during the Restrictive Period (a “Covered Business”). Additionally, the Employee agrees that the Employee will not engage in any of the following acts anywhere in the world during the
Restrictive Period: 
  

	 	(i)	directly or indirectly engage or invest in; own, manage, operate, finance, control, or participate in the ownership, management, operation, financing, or control of; be employed by,
associated with, or in any manner connected with; lend the Employee’s name or any similar name to; lend Employee’s credit to; or render services or advice to, any business which competes with, is engaged in, or carries on any aspect of a
Covered Business; 

  

 4 

	 	(ii)	directly or indirectly assist, promote or encourage any existing or potential employees, customers, clients, or vendors of the Company or any Related Entity, as well as any other
parties which have a business relationship with the Company or a Related Entity, to terminate, discontinue, or reduce the extent of their relationship with the Company or a Related Entity; 

  

	 	(iii)	directly or indirectly solicit business of the same or similar type as a Covered Business, from any person or entity known by the Employee to be a customer or client of the Company,
whether or not the Employee had contact with such person or entity during the Employee’s employment with the Company; 

  

	 	(iv)	disparage the Company, any Related Entities, and/or any shareholder, director, officer, employee, or agent of the Company or any Related Entity; and/or 

  

	 	(v)	engage in any practice the purpose of which is to evade the provisions of this Section 6 or commit any act which adversely affects the Company, any Related Entity, or their
respective businesses. 

  
 The Employee
acknowledges and agrees that, in light of the unique nature of the Company’s business, the Company will market its products on a worldwide basis and will compete with various companies and businesses across and world. Accordingly, the Employee
agrees that the geographic scope of the above covenants is a reasonable means of protecting the Company’s (and the Related Entities’) legitimate business interests. Notwithstanding the foregoing covenants, nothing set forth in this
Agreement shall prohibit the Employee from owning the securities of (i) corporations which are listed on a national securities exchange or traded in the national over-the-counter market in an amount which shall not exceed 5% of the outstanding
shares of any such corporation or (ii) any corporation, partnership, firm or other form of business organization which does not compete with, is not engaged in, and does not carry on any aspect of, either directly or indirectly through a subsidiary
or otherwise, any Covered Business. 
  
 (c)
Disclosure of Confidential Information. The Employee acknowledges that the inventions, innovations, software, trade secrets, business plans, financial strategies, finances, and all other confidential or proprietary information with respect to
the business and operations of the Company and Related Entities are valuable, special, and unique assets of the Company. Accordingly, the Employee agrees not to, at any time whatsoever either during or after the Employee’s term of employment
with the Company, disclose, directly or indirectly, to any person or entity, or use or authorize any person or entity to use, any confidential or proprietary 

  

 5 

 
information with respect to the Company or Related Entities without the prior written consent of the Company, including, without limitation, information as
to the financial condition, results of operations, identities of clients or prospective clients, products under development, acquisition strategies or acquisitions under consideration, pricing or cost information, marketing strategies or any other
information relating to the Company or any of the Related Entities which could be reasonably regarded as confidential (collectively referred to as “Confidential Information”). However, the term “Confidential Information”
does not include any information which is or shall become generally available to the public other than as a result of disclosure by the Employee or by any person or entity which the Employee knows (or which the Employee reasonably should know) has a
duty of confidentiality to the Company or a Related Entity with respect to such information. In addition to the foregoing, Company will be fully entitled to all of the protections and benefits afforded by the Florida Uniform Trade Secrets Act and
other applicable law. 
  
 (d) Removal and
Return of Proprietary Items. The Employee will not remove from the Company’s premises (except to the extent such removal is for purposes of the performance of the Employee’s duties at home or while traveling, or except as otherwise
specifically authorized by the Company) any document, record, notebook, plan, model, component, device, or computer software or code obtained from the Company or containing the Company’s Confidential Information, whether embodied in a disk or
in any other form (collectively, the “Proprietary Items”). The Employee recognizes that, as between the Company and the Employee, all of the Proprietary Items, whether or not developed by the Employee, are the exclusive property of
the Company. Upon termination of Employee’s employment with the Company by either party (regardless of the reason for termination), or upon the request of the Company during the term of employment, the Employee will return to the Company all of
the Proprietary Items in the Employee’s possession or subject to the Employee’s control, and the Employee shall not retain any copies, abstracts, sketches, or other physical embodiment of any of the Proprietary Items. 
  
 (e) Enforcement and Remedies. In the event of any
breach of any of the covenants set forth in this Section 6, the Employee recognizes that the remedies at law will be inadequate and that in addition to any relief at law which may be available to the Company for such violation or breach and
regardless of any other provision contained in this Agreement, the Company shall be entitled to equitable remedies (including an injunction) and such other relief as a court may grant after considering the intent of this Section 6. Additionally, the
period of time applicable to any covenant set forth in this Section 6 will be extended by the duration of any violation by Employee of such covenant. In the event a court of competent jurisdiction determines that any of the covenants set forth in
this Section 6 are excessively broad as to duration, geographic scope, prohibited activities or otherwise, the parties agree that this covenant shall be reduced or curtailed to the extent, but only to the extent, necessary to render it enforceable.

  

 6 

 7. Employee Inventions. 
  
 (a) Definition. For purposes of this Agreement,
“Employee Invention” means any idea, invention, technique, modification, process, or improvement (whether patentable or not), any industrial design (whether registerable or not), and any work of authorship (whether or not copyright
protection may be obtained for it) created, conceived, or developed by the Employee, either solely or in conjunction with others, during the Employee’s employment with the Company or during the six (6) month period following such employment,
that relates in any way to, or is useful in any manner in, the businesses then being conducted or proposed to be conducted by the Company or any Related Entity. 
  
 (b) Ownership of Employee Inventions. Employee agrees and acknowledges that all Employee Inventions
will belong exclusively to the Company and that all Employee Inventions are works made for hire and the property of the Company, including any copyrights, patents, semiconductor mask protection, or other intellectual property rights pertaining
thereto. If it is determined that any such works are not works made for hire, the Employee hereby assigns to the Company all of the Employee’s right, title, and interest, including all rights of copyright, patent, semiconductor mask protection,
and other intellectual property rights, to or in such Employee Inventions. The Employee covenants that the Employee will promptly: 
  

	 	(i)	disclose to the Company’s Board of Directrs in writing any Employee Invention; 

  

	 	(ii)	assign to the Company or to a party designated by the Company, at the Company’s written request (the “Company Request”) and without additional compensation, all of
the Employee’s right to the Employee Invention for the United States and all foreign jurisdictions. To preserve its rights under Section 7 in the disclosed invention, the Company shall deliver the Company Request to Employee within thirty days
of the disclosure pursuant to subsection (i) above; 

  

	 	(iii)	execute and deliver to the Company such applications, assignments, and other documents as the Company may request in order to apply for and obtain patents or other registrations
with respect to any Employee Invention in the United States and any foreign jurisdictions; 

  

	 	(iv)	sign all other papers necessary to carry out the above obligations; and 

  

	 	(v)	give testimony and render any other assistance in support of the Company’s rights to any Employee Invention. 

  
 8. Essential and Independent Covenants. The
Employee’s covenants in Sections 6 and 7 of this Agreement are independent covenants, and the existence of any claim by the Employee against the Company under this Agreement or otherwise will not excuse the Employee’s breach of any
covenant in Section 6 or 7. 
  
 9. Representations and
Warranties by The Employee. The Employee represents and warrants to the Company that the execution and delivery by the Employee of this Agreement 

  

 7 

 
do not, and the performance by the Employee of the Employee’s obligations hereunder will not, with or without the giving of notice or the passage of
time, or both: (a) violate any judgment, writ, injunction, or order of any court, arbitrator, or governmental agency applicable to the Employee, or (b) conflict with, result in the breach of any provisions of or the termination of, or constitute a
default under, any agreement to which the Employee is a party or by which the Employee is or may be bound, including, without limitation, any non-competition agreement or similar agreement. 
  
 10. Notices. For purposes of this Agreement, notices and all
other communications provided for herein shall be in writing and shall be deemed to have been duly given when hand-delivered, sent by facsimile transmission (as long as receipt is acknowledged), or mailed by United States certified or registered
mail, return receipt requested, postage prepaid, addressed to the address or facsimile number for each party set forth on the signature page hereto, or to such other address or facsimile number as either party may have furnished to the other in
writing in accordance herewith, except that a notice of change of address shall be effective only upon receipt. 
  
 11. Miscellaneous. No provision of this Agreement may be modified or waived unless such waiver or modification is agreed to in writing
signed by both of the parties hereto. No waiver by any party hereto of any breach by any other party hereto shall be deemed a waiver of any similar or dissimilar term or condition at the same or at any prior or subsequent time. This Agreement is the
entire agreement between the parties hereto with respect to the Employee’s employment by the Company, and there are no agreements or representations, oral or otherwise, expressed or implied, with respect to or related to the employment of the
Employee which are not set forth in this Agreement. This Agreement shall be binding upon, and inure to the benefit of, the Company, its respective successors and assigns, and the Employee and Employee’s heirs, executors, administrators and
legal representatives. The duties and covenants of the Employee under this Agreement, being personal, may not be delegated or assigned by the Employee without the prior written consent of the Company, and any attempted delegation or assignment
without such prior written consent shall be null and void and without legal effect. The parties agree that if any provision of this Agreement shall under any circumstances be deemed invalid or inoperative, the Agreement shall be construed with the
invalid or inoperative provision deleted and the rights and obligations of the parties shall be construed and enforced accordingly. 
  
 12. Governing Law; Resolution of Disputes. The validity, interpretation, construction, and performance of this Agreement shall be governed
by the laws of the State of Florida without regard to principles of choice of law or conflicts of law thereunder. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of, this Agreement may be brought
against either of the parties in the courts of the State of Florida, County of Hillsborough, or, if it has or can acquire jurisdiction, in the United States District Court located in Hillsborough County, Florida, and each of the parties consents to
the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and waives any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on
either party anywhere in the world. THE PARTIES HEREBY WAIVE A JURY TRIAL IN ANY LITIGATION ARISING UNDER OR RELATING TO THIS AGREEMENT. 
  

 8 

 13. Counterparts; Facsimile Signatures. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. This Agreement may be effective upon the execution and delivery by any party hereto of facsimile copies of signature
pages hereto duly executed by such party; provided, however, that any party delivering a facsimile signature page covenants and agrees to deliver promptly after the date hereof two (2) original copies to the other party hereto.

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

			
	Accentia Biopharmaceuticals, Inc.
		
	By:	 	/s/    Alan Pearce
		
	Name:	 	 Alan Pearce

		
	Title:	 	 CFO

	
	 Address and Facsimile Number:

	
	 5310 Cypress Center Drive Suite 101
 Tampa, FL 33609-1057
 Fax: 813-287-6642

	
	EMPLOYEE
		
	By:	 	/s/    Frank O’Donnell
	
	 Printed Name: Frank O’Donnell

	 Address and Facsimile Number:

	
	 Sarasota, FL Fax: 941-

  

 9

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