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Limited Alternative Stock Appreciation Right Agreement

 EXHIBIT 10.12 
 HERITAGE BANKSHARES, INC. 
 LIMITED ALTERNATIVE STOCK APPRECIATION RIGHT AGREEMENT 
 GRANTEE: Michael S. Ives 
 DATE OF GRANT: July 26, 2006 
 NUMBER OF SHARES: 70,000 
 PRICE: $

 This Limited Alternative Stock Appreciation Right Agreement is made as of the above date of grant by and between Heritage Bankshares, Inc.
(“Corporation”) and Michael S. Ives (“Grantee”) to implement the grant to the Grantee of the Limited Alternative Stock Appreciation Right described herein (“Right”), made by the Board of Directors of the Corporation on
July 26, 2006. This Right is independent of and is not granted under the 2006 Heritage Equity Incentive Plan (“2006 Incentive Plan”), but for convenience, capitalized terms used herein shall have the same meaning as defined in the
2006 Incentive Plan unless otherwise defined herein or unless the context requires otherwise. For purposes of this Right, “terminate employment” and “termination of employment” shall mean terminate employment or termination of
employment with the Corporation and/or a Subsidiary as a consequence of which the Grantee is no longer employed by the Corporation or any Subsidiary; “termination for cause,” “termination without cause,” and “resignation for
good reason” shall have the same meaning as defined in the Employment Agreement between the Corporation and the Grantee dated February 7, 2005, as amended by the Amendment dated June 30, 2006 (“Employment Agreement”); and
“permanent disability” shall mean disability as provided under Section 8(a) of the Employment Agreement. 
 The grant to
Grantee of this Right by the Corporation is made on the following terms and conditions: 
 1. (a) This Right shall become exercisable only
upon a Change in Control with respect to the Corporation, in which event this Right shall become vested and exercisable in full. 
 (b)
Notwithstanding subparagraph 1(a), this Right shall become exercisable only in the event that prior to the date of a Change in Control, the Corporation’s shareholders have not approved the 2006 Incentive Plan or a successor plan or other
program pursuant to which the Option to purchase 70,000 shares of Common Stock granted to the Grantee by the Board of Directors of the Corporation on July 26, 2006 remains in effect. 

 2. Once exercisable, this Right may be exercised until the close of business on the date which is two
(2) years from the date of the Change in Control. 
 3. This Right may be exercised in whole or in part by delivering to the Treasurer
of the Corporation written notice of exercise on the form to be provided for that purpose, and the date on which any such delivery is made shall be the “Date of Exercise” as to the applicable portion of this Right. 
 4. Notwithstanding the foregoing, this Right shall not be exercised unless the exercise shall comply, in the opinion of counsel for the Corporation, with
all applicable provisions of law, including state and federal securities laws and rules and regulations thereunder, and any listing agreement with any securities exchange on which the Shares may be listed. 
 5. The exercise of this Right shall entitle the Grantee to receive an amount equal to the product of (a) the excess of (1) the Fair Market
Value of a share of Common Stock on the Date of Exercise over (2) the Price, multiplied by (b) the number of Shares with respect to which the Right is exercised. The amount to which Grantee becomes entitled shall be paid (without any
payment by Grantee other than any required tax withholding amounts) in cash. 
 6. (a) Subject to subparagraph 6(b), if the Grantee
terminates employment for any reason, the Grantee shall forfeit this Right to the extent that this Right has not become exercisable pursuant to paragraph 1 on the date employment terminates. 
 (b) Notwithstanding subparagraph 6(a), this Right shall continue in effect in the following events for the period specified so as to become exercisable
upon a Change in Control in accordance with subparagraph 1(a), subject to subparagraph 1(b), as if the Grantee had not terminated employment: 
 (1) In the event of Grantee’s Retirement, until the date that is ten (10) years from the Date of Grant. For purposes of this subparagraph 6(b)(1), Executive’s Retirement shall be deemed to have occurred if the Grantee resigns
or otherwise voluntarily terminates his employment (other than for cause or after cause exists) prior to Retirement but after attaining age fifty-five (55), and if upon termination of employment, the Grantee enters into a noncompetition agreement
with the Corporation that provides for an extension of the provisions of Section 10 of the Employment Agreement during the period that this Right continues in effect (but not beyond December 31, 2010). 
 (2) In the event of Grantee’s termination by the Corporation without cause, Grantee’s resignation for good reason, Grantee’s death or
Grantee’s disability, the date that is two (2) years from the date of the applicable event. 
 7. This Right shall not be
transferable by Grantee other than by will or the laws of descent and distribution. During the Grantee’s lifetime, this Right shall be exercisable only by Grantee, or in the event of Grantee’s legal disability, his legal representative.
After the death of Grantee, any exercisable Right may be exercised by Grantee’s personal representative, heirs or legatees. 
  

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 8. Tax obligations of the Grantee resulting from the exercise of this Right shall be withheld or provided
for in a manner prescribed by the Corporation. 
 9. The number and class of Shares subject to this Right and the Price shall be adjusted by
the Corporation, as appropriate and equitable, to reflect such events as stock dividends, dividends payable other than in cash, other extraordinary dividends, stock splits, recapitalizations, mergers, consolidations or reorganizations of or by the
Corporation. 
 10. Notwithstanding anything herein to the contrary, this Right shall be void and of no effect from its inception upon
approval of the 2006 Incentive Plan or any successor plan or other program pursuant to which the Option to purchase 70,000 shares of Common Stock granted to the Grantee by the Board of Directors of the Corporation on July 26, 2006 remains in
effect. 
 IN TESTIMONY WHEREOF, Grantee has hereunto affixed his signature and the Corporation has caused this Agreement to be executed in
its corporate name by its duly authorized officer all as of the date first hereinabove written. 
  

			
	HERITAGE BANKSHARES, INC.
		
	By:	 	 /s/ Peter M. Meredith, Jr.

		 	Its: Chairman
		
		 	 /s/ Michael S. Ives

		 	Michael S. Ives, Grantee

  

 3Second Amendment to License Agreement

 [*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 
 Exhibit 10.1

 AMENDMENT TO LICENSE AGREEMENT 
 This Amendment to License Agreement (“Amendment”) dated August 22, 2006 (“Effective Date”), is by and among the Mayo Foundation for Medical Education and Research, a Minnesota
charitable corporation, located at 200 First Street SW, Rochester, Minnesota 55905-001 (“Mayo”) and Accentia Biopharmaceuticals, Inc. and Accentia Specialty Pharmacy, Inc., a subsidiary of Accentia, Inc., both Florida corporations having a
place of business at 5310 Cypress Center Drive, Suite 101, Tampa, Florida, 33609 (collectively, “Accentia”); each a “Party” and collectively, “Parties.”  
 WHEREAS, Mayo and Accentia entered into a license agreement of February 10, 2004, as amended (collectively the “License Agreement”)
regarding the treatment of chronic rhinosinusitis and/or asthma with amphotericin-B compounds; and 
 WHEREAS, Mayo and Accentia wish
to provide and clarify the manner in which non-prescription products, including OTC, health and beauty aides, homeopathic, and disinfectants, are treated under the License Agreement. 
 NOW THEREFORE, in consideration of the forgoing and the promises and covenants set fort below, the Parties agree as follows: 
  

	 	1.	Article 1 is hereby expanded by adding the following: “1.30 “Non-Prescription Product” shall mean any Product which Product does not require sale by a prescription,
including but not limited to OTC, health and beauty aides, homeopathic, and disinfectants. Non-Prescription Products are referred to herein as “NPP Products”. 

  

	 	2.	Article 3 is expanded by adding the following: “3.012(d) an exclusive world-wide license to use, offer for sale, sell, develop, manufacture and have manufactured NPP Products
(“NPP License”). Without limiting the exclusivity of the NPP License, Mayo shall have the right to consent to each NPP Product before Accentia can commercialize such NPP Product under the NPP License, which consent Mayo may withhold in its
reasonable discretion. Mayo hereby consents to the first NPP Product, which is any NPP Product that includes [*] at a concentration of [*]. 

  

	 	3.	Article 4 is expanded by adding the following: “4.11 With regard to NPP Products: 

 (a) Accentia shall pay to Mayo the following upfront Royalty: (i) [*] Dollars ($[*]) on the date hereof; (ii) a Warrant to purchase Four Hundred and Fifty Thousand (450,000) shares of Accentia Common
Stock an exercise price of Three Dollars and Fifty Cents ($3.50) per share for a period of five (5) years to be issued on the date hereof and vesting according to the following schedule 150,000 warrants immediately, 150,000 warrants at the
first year anniversary of Effective Date and 150,000 warrants at the second year anniversary of the Effective Date and (iii) at such time as Accentia commences the sale of a second NPP Product and for each NPP Product for which Accentia
commences sales thereafter, an additional [*]. The 

  

 
up-front Royalty is non-refundable and is not an advance or creditable against any royalty or other payment otherwise due here under; 
 (b) In lieu of any other Earned Royalties under the License Agreement, Accentia shall pay to Mayo Earned Royalties on all NPP Products according to the
following schedule: (i) [*] percent ([*]%) of all Sales of NPP Products from the date of invoice for first sale of such NPP Product until one year from such date; (ii) [*] percent ([*]%) of all Sales of NPP Products for the one year period
following the last day set forth in (i) above; and (iii) [*] percent ([*]%) of all Sales of NPP Products from the day following the last day set forth in (ii) above; 
 (c) With the exception of any sublicenses between Accentia and an Accentia subsidiary which is an Affiliate as defined in Paragraph 1.02, in addition to
the Earned Royalty obligations set forth herein, Accentia shall pay Mayo [*] percent ([*]%) of any upfront Sublicensing Revenue received from any sublicense of an NPP Product. Accentia shall be permitted to deduct from payment to Mayo that part of
Sublicensing Revenue attributable to royalties on Sales for which Accentia has paid an Earned Royalty to Mayo pursuant hereto. Accentia shall have the burden of documenting such deduction to Mayo; and 
  

	 	(d)	Accentia can sublicense the right to use, offer for sale, sell, develop, manufacture and have manufactured any NPP Product to any subsidiary of Accentia provided the Accentia
subsidiary is an Affiliate of Accentia as defined in Paragraph 1.02 hereof and further provided that any such sublicense complies with each of the following requirements: (i) Accentia shall remain liable for the subsidiary’s compliance
with the License; (ii) the Sublicensee shall agree to comply with all applicable terms of the License, including but not limited to, to indemnify Mayo, in accordance with Section 6.05 of the License for uses by the subsidiary of the
sublicensed Patent Rights and Know-How; (iii) the sublicense shall be effective as of the date Mayo receives Notice from Accentia and shall terminate on the last to expire claim within the Patent Rights; (iv) notwithstanding anything to
the contrary, the sublicense shall terminate ninety (90) days after marketing approval by the FDA of the NPP Product so sublicensed as a prescription product for the treatment of chronic rhinosinusitis and/or asthma; (v) nothing herein
grants the Accentia subsidiary or Accentia the right to develop any NPP Product as an FDA Product; and (vi) any sublicense must: (a) contain an agreement by the subsidiary not to seek FDA approval for any Product or Compound as a
prescription; (b) be limited as provided herein; and (c) contain and be consistent with all the terms and conditions of the License (including, without limitation, provisions relating to Sales, limitation on name use, confidentiality and
indemnification), or the sublicense shall be null and void; (vii) Accentia shall remain liable for the subsidiary’s compliance with the License and the sublicense, including to indemnify Mayo, in accordance with Section 6.05 of the
License for uses by the subsidiary of the sublicensed Patent Rights and Know-How; (viii) Mayo shall be listed as a third party beneficiary in any sublicense regarding the Patent Rights and Know-How; (xi) if Accentia or its subsidiary
desires to sublicense a NPP Product 

  

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 other than to a subsidiary of Accentia which is an Affiliate as defined in Paragraph 1.02 hereof, it must
obtain Mayo’s prior written consent for each such Product, which consent Mayo is not obligated to give and (x) Accentia has issued and delivered the Warrant to Mayo as provided in Paragraph 4.11(a) (iii) above. 
  

	 	3.	Except as amended hereby, the License Agreement, as amended, remains in full force and effect. 

 (signatures on following page) 
 IN WITNESSETH WHEREOF, the parties have
executed this Amendment on the day and year first above written. 
  

			
	 “ACCENTIA”
 ACCENTIA BIOPHARMACEUTICALS, INC.

		
	By:	 	/s/ Frank E. O’Donnell, Jr. M.D.
		
		 	Chairman and CEO

  

			
	
	ACCENTIA SPECIALTY PHARMACY, INC.
		
	By:	 	/s/ Frank E. O’Donnell, Jr. M.D.
		
		 	Chairman

  

			
	
	MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH
		
	By:	 	/s/ Steven P. Van Nurden
		
		 	Assistant Treasurer

  

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