Document:

Mortgage, dated December 7, 2010

 Exhibit 10.6 
 MORTGAGE 
  

			
	 MORTGAGOR:
	  	LENDER:
		
	 JMS Holdings, LLC

3500 Main Street, Suite 300

Coon Rapids, MN 55448
	  	 The Economic Development Authority
 in and for the City of Coon Rapids
 11155 Robinson Drive

Coon Rapids, MN 55433

 This Mortgage (“Security Instrument”) is given on December 7, 2010, by the Mortgagor indicated above (“Mortgagor”), a Minnesota limited liability company to The Economic
Development Authority in and for the City of Coon Rapids, a public body corporate and politic under the laws of the State of Minnesota (“Lender”). Mortgagor owes Lender the principal sum of One Hundred Three Thousand and 00/100 Dollars
($103,000.00), evidenced by a Promissory Note (“Note”) of Mortgagor to Lender herewith the following terms: 
  

							
	 Interest 
Rate
	  	Principal Amount/
Credit Limit	  	Funding 
Agreement Date	  	Maturity 
Date
	 Months 1 – 60 at 2.5%
	  		  		  	
		  	$103,000.00	  		  	December 1, 2020
				
	 Months 61 – 80 at 5.0%
	  		  		  	
				
	 Months 81 – 100 at 7.0%
	  		  		  	
				
	 Months 101 – 120 at 9.0%
	  		  		  	

  
 1 

 This Security Instrument secures to Lender: (a) the repayment of the debt evidenced by
the Note, with interest, and all renewals, extensions and modifications of the Note; (b) the payment of all other sums, with interest, advanced under this Mortgage to protect the security of this Security Instrument; and (c) the
performance of Mortgagor’s covenants and agreements under this Security Instrument and the Note. For this purpose, Mortgagor does hereby mortgage, grant and convey to Lender, with power of sale, the following described property located in Anoka
County, Minnesota: 
 TRACT B R.L.S. NO 86 
 which has a street address of 8500 Evergreen Boulevard NW, Coon Rapids, MN 55433. 

TOGETHER WITH all the improvements now or hereafter erected on the property, and all easements, appurtenances, and fixtures now or
hereafter a part of the property. All replacements and additions shall also be covered by this Security Instrument. All of the foregoing is referred to in this Security Instrument as the “Property”. 

The Mortgagor and Lender further covenant and agree as follows: 
 1. MORTGAGOR’S OWNERSHIP. Mortgagor is lawfully seized of the Property and the estate hereby conveyed and has the right to mortgage, grant and convey the Property and warrants that the Property is
unencumbered, except for encumbrances of record and those other encumbrances identified on the attached Exhibit A (the “Permitted Encumbrances”). Mortgagor warrants and will defend generally the title to the Property against all claims and
demands, subject to any Permitted Encumbrances. 
 2. PAYMENT OF PRINCIPAL AND INTEREST; PREPAYMENT AND LATE CHARGES. Mortgagor
shall cause Biovest International, Inc. (“the Borrower”) to promptly pay when due the principal and interest on the debt evidenced by the Note and any prepayment and late charges due under the Note or shall pay such amounts within ten
(10) business days of written notice that such amounts remain unpaid by Borrower. The failure of Mortgagor to do so shall be a default under this Mortgage and Mortgagor shall have all cure rights and rights to written notice of default in
accordance with the terms of the Loan Agreement herewith between Mortgagor and Lender. 
 3. TAXES AND INSURANCE. Mortgagor
shall cause Borrower to pay on the day payments are due until the Note is paid in full: (a) yearly taxes and assessments which may attain priority over this Security Instrument as a lien on the Property; (b) yearly leasehold payments or
ground rents on the Property, if any; (c) yearly hazard or property insurance premiums; and (d) yearly flood insurance premiums, if any. 
 4. APPLICATION OF PAYMENTS. Unless applicable law provides otherwise, all payments received by Lender shall be applied: first, to any prepayment charges due under the Note; second, to late payment
charges; third, to amounts payable under paragraph 3, along with any other expenses; fourth, to interest due; and last, to principal due, or, in any other order as determined by Lender, in Lender’s sole discretion. 

  
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 5. CHARGES, LIENS. Mortgagor shall cause Borrower to pay all taxes, assessments, charges,
fines and impositions attributable to the Property which may attain priority over this Security Instrument, and leasehold payments or ground rents, if any. 
 6. HAZARD OR PROPERTY INSURANCE. Mortgagor shall cause Borrower to keep the improvements now existing or hereafter erected on the Property insured against loss by fire, hazards included within the term
“special perils” and any other hazards for which Lender reasonably requires insurance as of the date of this Mortgage. This insurance shall be maintained in the following amounts and for period that this Mortgage remains in force:
$1,000,000 commercial general liability insurance and 100% full replacement cost on all buildings and related improvements at the Property. If Borrower fails to maintain the coverage described above, Lender may, at Lender’s option, obtain
coverage to protect Lender’s rights in the Property in accordance with paragraph 8. 
 All insurance policies and renewals
shall be acceptable to Lender and shall include a standard mortgagee clause. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall cause Borrower to promptly give to Lender all receipts of paid premiums
and renewal notices. In the event of loss, Mortgagor shall give prompt notice to the insurance carrier and Lender. Lender may make proof of loss if not made promptly by Mortgagor. 

Until the indebtedness secured by the mortgage of the First Secured Lender has been paid in full, the Lender hereunder shall have no
right or claim in or to the insurance proceeds. To the extent there are insurance proceeds available after the lien of the mortgage of the First Secured Lender has been satisfied, the insurance proceeds shall be applied to the sums secured by this
Security Instrument, whether or not then due, with any excess paid to Mortgagor. 
 Any application of proceeds to principal
shall not extend or postpone the due date of the payments referred to in paragraphs 2 and 3 or change the amount of the payments. If under paragraph 20 the Property is acquired by Lender, Mortgagor’s right to any insurance policies and proceeds
resulting from damage to the Property prior to the acquisition shall pass to Lender to the extent of the sums secured by this Security Instrument immediately prior to the acquisition. 

7. PRESERVATION, MAINTENANCE AND PROTECTION OF THE PROPERTY; LOAN APPLICATION; LEASEHOLD. Other than approved improvements, Mortgagor
shall not destroy, damage, or impair the Property, allow the Property to deteriorate, or commit waste on the Property. Mortgagor shall be in default if any forfeiture action or proceeding, whether civil or criminal, is begun that in Lender’s
good faith judgment could result in forfeiture of the Property or otherwise materially impair the lien created by this Security Instrument or Lender’s security interest. Mortgagor may cure such a default and reinstate, as provided in paragraph
17 by causing the action or proceeding to be dismissed with a ruling that, in Lender’s good faith determination, precludes forfeiture of the Mortgagor’s interest in the Property or other material impairment of the lien created by this
Security Instrument or Lender’s security interest. 

  
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 8. PROTECTION OF LENDER’S RIGHTS IN THE PROPERTY. If Mortgagor fails to perform the
covenants and agreements contained in this Security Instrument, or there is a legal proceeding that may significantly affect Lender’s rights in the Property (such as a proceeding in bankruptcy, probate, for condemnation or forfeiture or to
enforce laws or regulations), then upon reasonable advance notice to Mortgagor, Lender may do and pay for whatever is necessary to protect the value of the Property and Lender’s rights in the Property. Lender’s actions may include paying
any sums secured by a lien which has priority over this Security Instrument, appearing in court, paying reasonable attorneys’ fees and entering on the Property to make repairs. Although Lender may take action under this paragraph 8, Lender does
not have to do so. 
 Any amounts distributed by Lender under this paragraph 8 shall become additional debt of Mortgagor secured
by this Security Instrument. Unless Lender agrees to other terms of payment, these amounts shall bear interest from the date of disbursement at the Note rate and shall be payable, with interest, upon notice from Lender to Mortgagor requesting
payment. 
 9. INSPECTION. Lender or its agent may make reasonable entries upon and inspections of the Property. Lender shall
give Mortgagor notice at least 24 hours prior to an inspection specifying reasonable cause for the inspection. Notice requirements are deemed waived in the event of an emergency entry and inspection. 

10. CONDEMNATION. The proceeds of any award or claim for damages, direct or consequential, in connection with any condemnation or other
taking of any part of the Property, or for conveyance in lieu of condemnation, are hereby assigned and shall be paid to Lender, after the lien of the mortgage in favor of the First Secured Lender is satisfied in full. 

Unless Lender otherwise agrees in writing, any application of proceeds to principal shall not extend or postpone the due date of the
payments referred to in paragraphs 2 and 3 or change the amount of such payments. 
 11. MORTGAGOR NOT RELEASED; FORBEARANCE BY
LENDER NOT A WAIVER. Extension of the time for payments or modification of amortization of the sums secured by this Security Instrument granted by Lender to any successor in interest of Mortgagor shall not operate to release the liability of the
original Mortgagor or Mortgagor’s successors in interest. Lender shall not be required to commence proceedings against any successor in interest or refuse to extend time for payment or otherwise modify amortization of the sums secured by this
Security Instrument by reason of any demand made by the original Mortgagor or Mortgagor’s successors in interest. Any forbearance by Lender in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or
remedy. 
 12. SUCCESSORS AND ASSIGNS BOUND; JOINT AND SEVERAL LIABILITY; CO-SIGNERS. The covenants and agreements of this
Security Instrument shall bind and benefit the successors and assigns of Lender and Mortgagor, subject to the provisions of paragraph 18. Mortgagor’s covenants and agreements shall be joint and several. Any Mortgagor who co-signs this Security
Instrument but does not execute the Note: (a) is co-signing this Security Instrument only to mortgage, grant and convey that Mortgagor’s interest in the Property under the terms of this Security Instrument; (b) is not personally
obligated to pay the sums secured by this Security Instrument; and (c) agrees that Lender and any other Mortgagor or mortgagor may agree to extend, modify, forbear or make any accommodations with regard to the terms of this Security Instrument
or the Note without that Mortgagor’s consent. 

  
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 13. NOTICES. Any notice to Mortgagor provided for in this Security Instrument shall be given
by delivering it or by mailing it by first class mail unless applicable law requires use of another method. The notice shall be directed to JMS Holdings, LLC, 3200 Main Street NW, Suite 300 Coon Rapids, MN 55448 or any other address Mortgagor
designates by notice to Lender. Any notice to Lender shall be given by first class mail to Lender’s address stated herein or any other address Lender designates by notice to Mortgagor. Any notice provided for in this Security Instrument shall
be deemed to have been given to Mortgagor or Lender when sent as provided in this paragraph. 
 14. GOVERNING LAW; SEVERABILITY.
This Security Instrument shall be governed by the law of the jurisdiction in which the Property is located. In the event that any provision or clause of this Security Instrument or the Note conflicts with applicable law, such conflict shall not
affect other provisions of this Security Instrument or the Note which can be given effect without the conflicting provision. To this end the provisions of this Security Instrument and the Note are declared to be severable. 

15. MORTGAGOR’S COPY. Mortgagor shall be given one conformed copy of the Note and of this Security Instrument. 

16. TRANSFER OF THE PROPERTY OR A BENEFICIAL INTEREST IN MORTGAGOR. If all or any part of the Property or an ownership interest in it is
sold or transferred without Lender’s prior written consent, Lender may, at its option, require immediate payment in full of all sums secured by this Security Instrument. Notwithstanding the foregoing, Mortgagor shall have the right with written
notice to Lender without being in default under this mortgage, to lease the Property and to sell, convey or transfer ownership interest in Borrower, provided that JMS Holdings, LLC retains at least a 51% ownership interest in the Mortgagor. However,
this option shall not be exercised by Lender if exercise is prohibited by federal law as of the date of this Security Instrument. 
 If Lender exercises this option, Lender shall give Mortgagor and Mortgagor notice of acceleration. The notice shall provide a period of not less than 30 days from the date the notice is delivered or
mailed within which Mortgagor must pay all sums secured by this Security Instrument. If Mortgagor fails to pay these sums prior to the expiration of this period, Lender may invoke any remedies permitted by this Security Instrument without further
notice or demand on Mortgagor. 
 17. MORTGAGOR’S RIGHT TO REINSTATE. If Mortgagor meets certain conditions, Mortgagor
shall have the right to have enforcement of this Security Instrument discontinued at any time prior to the earlier of: (a) five days (or such other period as applicable law may specify for reinstatement) before sale of Property pursuant to any
power of sale contained in this Security Instrument; or (b) entry of a judgment enforcing this Security Instrument. Those conditions are that Mortgagor: (a) pays Lender all sums which then would be due under this Security Instrument and
the Note as if no acceleration had occurred; (b) cures any default of any other covenants or agreements; (c) pays all expenses incurred in enforcing this Security Instrument, including, but not limited to, reasonable attorneys’ fees;
and (d) takes such action as Lender may reasonably require to assure that the lien of this Security Instrument, Lender’s rights in the Property and Mortgagor’s and Mortgagor’s obligation to pay the sums secured by this Security
Instrument shall continue unchanged. Upon reinstatement by Mortgagor or Mortgagor, this Security Instrument and the obligations secured hereby shall remain fully effective as if no acceleration had occurred. However, this right to reinstate shall
not apply in the case of the acceleration under paragraph 16. 

  
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 18. SALE OF NOTE; CHANGE OF LOAN SERVICER. The Note or a partial interest in the Note
(together with this Security Instrument) may be sold one or more times with prior notice to Mortgagor. A sale may result in a change in the entity (known as the “Loan Servicer”) that collects monthly payments due under the Note and this
Security Instrument. There also may be one or more changes of the Loan Servicer unrelated to a sale of the Note. If there is a change of the Loan Servicer, Mortgagor will be given written notice of the change in accordance with paragraph 13 above
and applicable law. The notice will state the name and address of the new Loan Servicer and the address to which payments should be made. The notice will also contain any other information required by applicable law. 

19. HAZARDOUS SUBSTANCES. Mortgagor shall not cause or permit the presence, use, disposal, storage, or release of any Hazardous
Substances on or in the Property. Mortgagor shall not do, nor allow anyone else to do, anything affecting the Property that is in violation of any Environmental Law. The preceding two sentences shall not apply to the presence, use, or storage on the
Property of small quantities of Hazardous Substances that are generally recognized to be appropriate to normal residential uses and to maintenance of the Property. 
 Mortgagor shall promptly give Lender written notice of any investigation, claim, demand, lawsuit or other action by any governmental or regulatory agency or private party involving the Property and any
Hazardous Substance or Environmental Law of which Mortgagor has actual knowledge. If Mortgagor learns, or is notified by any governmental or regulatory authority, that any removal or other remediation of any Hazardous Substance affecting the
Property is necessary, Mortgagor shall promptly take all necessary remedial actions in accordance with Environmental Law. 
 As
used in this paragraph 19, “Hazardous Substances” are those substances defined as toxic or hazardous substances by Environmental Law and the following substances: gasoline, kerosene, other flammable or toxic petroleum products, toxic
pesticides and herbicides, volatile solvents, materials containing asbestos or formaldehyde, and radioactive materials. As used in this paragraph 19, “Environmental Law” means federal laws and laws of the jurisdiction where the Property is
located that relate to health, safety or environmental protection. 

  
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 20. ACCELERATION; REMEDIES. Lender shall give notice to Mortgagor prior to acceleration
following breach of any covenant or agreement in this Security Instrument (but not prior to acceleration under paragraph 16 unless applicable law provides otherwise) and any notice of a default by Borrower under the Loan Agreement, Note or any other
document executed by Borrower in connection with this Security Instrument. The notice shall specify: (a) the default; (b) the action required to cure the default; (c) a date, not less than 30 days from the date the notice is given to
Mortgagor, by which the default must be cured; and (d) that failure to cure the default on or before the date specified in the notice may result in acceleration of the sums secured by this Security Instrument and sale of the Property. The
notice shall further inform Mortgagor of the right to reinstate after acceleration and the right to bring a court action to assert the non-existence of a default or any other defense of Mortgagor to acceleration and sale. If the default is not cured
on or before the date specified in the notice, Lender, at its option, may require immediate payment in full of all sums secured by this Security Instrument without further demand and may invoke the power of sale and any other remedies permitted by
applicable law. Lender shall be entitled to collect all reasonable expenses incurred in pursuing the remedies provided in this paragraph 20, including, but not limited to, reasonable attorneys’ fees. 

If Lender invokes the power of sale, Lender shall cause a copy of a notice of sale to be served upon Mortgagor. Lender shall publish a
notice of sale, and the Property shall be sold at public auction in the manner prescribed by applicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the following order: (a) to
all expenses of sale, including, but not limited to, reasonable attorneys’ fees; (b) to all sums secured by this Security Instrument; and (c) any excess to the person or persons legally entitled to it. 

21. RELEASE. Upon payment of all sums secured by this Security Instrument, Lender shall discharge this Security Instrument without charge
to Mortgagor. Mortgagor shall pay any recordation costs. 
 22. MORTGAGE. THIS MORTGAGE SECURES AN OBLIGATION FOR THE
CONSTRUCTION OF AN IMPROVEMENT ON LAND AND IS A PERMANENT FINANCING MORTGAGE. Any materials, equipment or supplies used or intended for use in the construction, development or operation of the Property, whether stored on or off the Property, shall
also be subject to the lien of this Mortgage. 
 23. SUBORDINATION. The indebtedness evidenced or secured
hereby and all liens securing such indebtedness are expressly subordinated in all respects to all indebtedness in favor of Central Bank, a Minnesota financial corporation (the “First Secured Lender”) whose address is 3585 124th Ave NW, Coon Rapids, MN 55433, until such indebtedness is paid in
full and the lien of the mortgage securing such indebtedness in favor of the First Secured Lender has been satisfied. 

  
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 IN WITNESS WHEREOF, the Mortgagor has caused these presents to be executed as of the date
first above written. 
  

			
	 JMS HOLDINGS, LLC

		
	 By:
	 	 /s/ James M. Stanton

		 	James M. Stanton
		
	 Its:
	 	 Chief Manager

  
 8 

							
	 STATE OF MINNESOTA
	  	 	)	  	  	
		  	 	)	  	  	ss.
	 COUNTY OF ANOKA
	  	 	)	  	  	

 The foregoing instrument was acknowledged before me this 12th day of January, 2011, by James M. Stanton, the Chief
Manager, for JMS Holdings, LLC, a Minnesota limited liability company, on behalf of the limited liability company. 
  

	
	 /s/ Kim McFarlin

	 Notary Public

  

			
	 This instrument was drafted by:

 
 David Brodie, Assistant City
Attorney
 Coon Rapids City Attorneys Office

11155 Robinson Drive

Coon Rapids, MN 55433

763-767-6495
	  	 Tax statements for the real property described in this instrument should be sent to:

 
 MORTGAGOR:

 
 JMS Holdings, LLC
 3200 Main Street NW, Suite 300
 Coon Rapids, MN 55448

  
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 EXHIBIT A 
 Permitted Encumbrances 

  
 10Loan Agreement

 Exhibit 10.7 
 LOAN AGREEMENT 
 THIS AGREEMENT is made and
entered into as the 7th day of December, 2010, by and
between the Economic Development Authority in and for the City of Coon Rapids (the “EDA”) and Biovest International, Inc. (the “Borrower”); 
 ARTICLE 1 
 Definitions 

Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: 

“Borrower” means Biovest International, Inc. 
 “City” means the City of Coon Rapids 
 “Development Property”
means the real property described as TRACT B R.L.S. NO 86. 
 “EDA” means The Economic Development Authority in and for the
City of Coon Rapids. 
 “Initial Disbursement Date” means the date of the first disbursement of any Loan Proceeds by the EDA to
the Borrower. 
 “Leveraged Funds” means the funds described in Section 2.2. of this Agreement. 

“Loan” means the funds loaned by the EDA to the Borrower pursuant to this Agreement. 

“Loan Proceeds” means the funds disbursed to the Borrower pursuant to this Agreement and any proceeds thereof. 

“Project” “Project” means the Borrower’s construction of tenant improvements to the real property it leases at 8500
Evergreen Boulevard NW, Coon Rapids, MN 55433 as generally discussed in the application for MIF which resulted in the Grant Agreement. 

“Termination Date” means the date of the final payment made to the EDA. 

 ARTICLE 2 
 Financing for Project 
 Section 2.1. Project Financing. The
Borrower has secured a commitment for the financing necessary to complete the Project, in a form and under conditions satisfactory to the EDA and the Borrower. 
 Section 2.2. Borrower’s Equity and Other Financing. The Borrower shall commit no equity and not less than $1,100,000 of other financing (exclusive of the Loan) to be used for the
completion of the Project. In addition to this loan, project financing is also being provided by the landlord’s tenant improvements and a loan from the Minnesota Investment Fund, administered by the City, in an amount of $250,000. 

Section 2.3. Loan. The EDA shall make a loan to the Borrower of not more than $103,000 for tenant improvements at property it leases
at 8500 Evergreen Boulevard NW, Coon Rapids, MN 55433. The Loan includes the repayment of $3,000 for costs incurred by the EDA to process the loan application. 
 ARTICLE 3 
 Loan Terms and Conditions 

Section 3.1. Basic Loan Terms. The principal amount of the Loan shall not exceed $103,000. The Loan terms may not be modified without
prior written approval from the EDA. The Loan shall be used exclusively for the purposes stated in Section 2.3. The detailed Loan terms are set forth in Article 5 of this Agreement. 
 Section 3.2. Prepayment. Prepayment of the Loan may occur at any time during the Loan without penalty. 
 Section 3.3. Assignment. If, prior to the Termination Date, the Borrower sells, conveys, transfers or disposes of the Development Property, or any part thereof or interest therein, or
enters into an agreement to do any of the foregoing, the Borrower shall immediately repay all amounts then outstanding on the Loan. This shall be in addition to any other remedies at law or equity available to the EDA. 

Section 3.4. Termination. This Agreement shall automatically terminate without any notice to Borrower: (1) if no Loan Proceeds
have been disbursed to the Borrower prior to March 31, 2011; or (2) if: (a) the Borrower has not received any disbursement of Loan Proceeds from the EDA; and (b) the Borrower fails to pay its debts as they become due, makes an
assignment for the benefit of its creditors, admits in writing its inability to pay its debts as they become due, files a petition under any chapter of the Federal Bankruptcy Code or any similar law, state or federal, now or hereafter existing,
becomes “insolvent” as that term is generally defined under the Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they become due in any involuntary bankruptcy case commenced against it, or
fails to obtain a dismissal of such case within sixty (60) days after its commencement or convert the case from one chapter of the Federal Bankruptcy Code to another chapter, or is the subject of an order for relief in such bankruptcy case, or
is adjudged a bankrupt or insolvent, or has a custodian, trustee, or receiver appointed for it, or has any court take jurisdiction of its property, or any part thereof, in any proceeding for the purpose of reorganization, arrangement, dissolution,
or liquidation, and such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, vacated, or stayed within sixty (60) days of the appointment. 

 Section 3.5. Promissory Note, Security Agreement, & Business Subsidy Agreement.
The Borrower shall execute a promissory note, security agreement, and business subsidy agreement as set forth in herein. 

ARTICLE 4 

Default and Collateral 
 Section 4.1. Default. The Borrower shall be in default under this Agreement upon the happening of any one or more of the following events: 

(a) the Borrower fails to pay when due any amount payable on the Loan and such nonpayment is not remedied within ten (10) business
days after written notice thereof to the Borrower and JMS Holdings, LLC, the owner of the Development Property (“JMS”) by the EDA; 
 (b) the Borrower is in breach in any material respect, of any obligation or agreement under this Agreement (other than nonpayment of any amount payable on the Loan) and remains in breach in any material
respect for thirty (30) business days after written notice thereof to the Borrower and JMS, by the EDA; provided, however, that if such breach shall reasonably be incapable of being cured within such thirty (30) business days after notice,
and if the Borrower commences and diligently prosecutes the appropriate steps to cure such breach, no default shall exist so long as the Borrower is proceeding to cure such breach; 

(c) if any material covenant, warranty, or representation of the Borrower shall prove to be untrue in any material respect, provided such
covenant, warranty or representation of the Borrower remains untrue in any material respect for thirty (30) business days after written notice thereof to the Borrower and JMS by the EDA; provided, however, that if such untruth shall reasonably
be incapable of being corrected within such thirty (30) business days after notice, and if the Borrower commences and diligently prosecutes the appropriate steps to correct such untruth, no default shall exist so long as the Borrower is so
proceeding to correct such untruth; 

 (d) the Borrower, on or after the Initial Disbursement Date, fails to pay its debts as they
become due, makes an assignment for the benefit of its creditors, admits in writing its inability to pay its debts as they become due, files a petition under any chapter of the Federal Bankruptcy Code or any similar law, state or federal, now or
hereafter existing, becomes “insolvent” as that term is generally defined under the Federal Bankruptcy Code, files an answer admitting insolvency or inability to pay its debts as they become due in any involuntary bankruptcy case commenced
against it, or fails to obtain a dismissal of such case within sixty (60) days after its commencement or convert the case from one chapter of the Federal Bankruptcy Code to another chapter, or be the subject of an order for relief in such
bankruptcy case, or be adjudged a bankrupt or insolvent, or has a custodian, trustee, or receiver appointed for it, or has any court take jurisdiction of its property, or any part thereof, in any proceeding for the purpose of reorganization,
arrangement, dissolution, or liquidation, and such custodian, trustee, or receiver is not discharged, or such jurisdiction is not relinquished, vacated, or stayed within sixty (60) days of the appointment; 

(e) a final judgment is entered against the Borrower that the EDA reasonably deems will have a material, adverse impact on the
Borrower’s ability to comply with the Borrower’s obligations under this Agreement; 
 (f) the Borrower sells, conveys,
transfers, encumbers, or otherwise disposes of all or any part of its interest in the Development Property or Equipment without the prior written approval of the EDA; 
 (g) the Borrower merges or consolidates with any other entity without the prior written approval of the EDA; or 
 (h) there is a loss, theft, substantial damage, or destruction of all or any part of the Collateral that is not remedied to the EDA’s satisfaction within sixty (60) business days after written
notice thereof by the EDA to the Borrower. 
 Section 4.2. Remedies Upon Default. 

(a) In the event of a default, the EDA shall have the right as its option and without demand or notice, to declare all or any part of the
Loan immediately due and payable, and in addition to the rights and remedies granted hereby, the EDA shall have all of the rights and remedies available under the Uniform Commercial Code and any other applicable law. 

(b) The Borrower agrees in the event of a default to make the Collateral available to the EDA. The Borrower agrees to pay the costs and
expenses incurred by the EDA in enforcing its rights under this Agreement, including but not limited to the EDA’s attorneys fees. If any notice of sale, disposition or other intended action by the EDA is required by law to be given to the
Borrower, such notice shall be deemed reasonably and properly given if mailed to the Borrower at the Development Property or at such other address of the Borrower as may be shown herein, at least fifteen (15) days before such sale, disposition
or other intended action. 

 Section 4.3. Collateral. The Borrower shall grant to the EDA a first security interest in
the equipment, pari passu with that granted to the City of Coon Rapids and the State of Minnesota, in an amount equal to the amount of the Loan disbursed hereunder and pursuant to the executed Security Agreement, as described in an exhibit
attached to the Security Agreement. 
 Section 4.4. Default on Business Subsidy Act Requirements.
(a) In the event of an Event of Default arising from a breach by the Borrower of any provision of Section 7.1 of this Agreement, if the implicit price deflator for government consumption expenditures and gross investment for state and
local governments prepared by the Bureau of Economic Analysis of the United States Department of Commerce for the 12-month period ending March 31st of the previous year, exceeds five and one-half percent (5.5)% on the date of the earliest such Event of Default, the
Borrower shall, in addition to any other payment required hereunder, pay to the EDA the difference between the present value of the interest actually paid and accrued on the Loan as of the date of the payment required by this Section 4.4, and
the amount of interest that would have been paid and accrued on the Loan if the interest rate of the Loan at all times had been equal to the implicit price deflator on the date of the earliest Event of Default. 

(b) Nothing in this Section 4.4 shall be construed to limit the EDA’s rights or remedies under any other provision of this Agreement, and the
provisions of Section 4.4(a) are in addition to any other such right or remedy the EDA may have available. 
 ARTICLE 5

 Loan Disbursement Provisions 
 Section 5.1. Payment Requisition Documentation and Format. Loan disbursements shall be for tenant improvement costs. The disbursements shall not exceed $103,000. The Loan shall be
disbursed to the Borrower only after the EDA has received from the Borrower documentation of the expenditures for the aforementioned uses. Upon receipt of such documentation, the City will disburse an amount equal to the amount of the expenditures,
up to a total disbursement amount of $103,000. 
 Section 5.2. Provision for Evidentiary Materials. No disbursements of Loan
funds shall be made until all evidentiary materials required by the EDA have been submitted and approved by the EDA. These evidentiary materials shall include, but not necessarily be limited to, the materials described in Article 6 of this Agreement
and the invoices described in Section 5.1. 
 Section 5.3. Project Time Frame. Borrower shall complete the project by
December 31, 2011 and receive a certificate of occupancy. 

 Section 5.4. Loan Terms. The term of the Loan shall be amortized over two hundred forty
(240) months, with a balloon payment on the one hundred twentieth (120) month. The loan term shall commence and interest shall accrue as of the Initial Disbursement Date. The Loan shall bear interest at a per annum rate as follows:

 Months 1 – 60 at 2.5% interest 
 Months 61 – 80 at 5.0% interest 
 Months 81 – 100 at 7.0% interest

 Months 101 – 120 at 9.0% interest 
 Section 5.5. Loan Repayments Schedule. Payments of principal and interest shall commence on the first day of the first month immediately following the Initial Disbursement Date, and
shall continue on the first day of each and every month thereafter until paid in full. Such payments shall fully amortize the Loan over two hundred forty (240) months; provided, however, the entire remaining unpaid balance of principal and
interest shall be due and payable in full on the first day of the one hundred twentieth (120) month following the Initial Disbursement Date. 
 Section 5.6. Leveraged Funds. The Leveraged Funds described in the Loan Application must be used for the same purposes and under the same terms, rates, and conditions as specified
therein. 
 ARTICLE 6 
 Provision of Evidentiary Material Requirement 
 Section 6.1.
Provision of Evidentiary Materials and Documentation of Use of Funds. In addition to those materials described in Section 5.2 of this Agreement, the Borrower shall provide the EDA with all evidentiary materials and necessary
documentation that the Loan and the Leveraged Funds have been used for the items and purposes stated herein.  

ARTICLE 7 

Provision of Monitoring Information Related To Project Progress 
 Section 7.1. Provision of Progress Information. The Borrower shall provide to the EDA information for incorporation into progress reports, as required by the State and as needed by the
EDA, to monitor project implementation for compliance with the Business Subsidy Act. 
 ARTICLE 8 

Non-discrimination 

Section 8.1. Nondiscrimination. The provisions of Minnesota Statutes, Section 181.59, which relate to civil rights and
discrimination, shall be considered a part of this Agreement as though wholly set forth herein and the Borrower shall comply with each such provision throughout the term of this Agreement. 

 ARTICLE 9 
 Borrower’s Acknowledgments Representation, and Warranties 

Section 9.1. Representations and Warranties. The Borrower warrants and represents, that: 

(a) Representations, statements, and other matters provided by the Borrower relating to those activities of the Project to be completed
by the Borrower, which were contained in the Grant Application, were true and complete in all material respects as of the date of submission to the EDA and that such representations, statements, and other matters are true as of the date of this
Agreement and that there are no adverse material changes in the financial condition of the Borrower’s business. 
 (b) To
the best of the Borrower’s knowledge, no member, officer, or employee of the EDA, or its officers, employees, designees, or agents, no consultant, member of the governing body of the EDA, and no other public official of the EDA, who exercises
or has exercised any functions or responsibilities with respect to the Project during his or her tenure shall have any interest, direct or indirect, in any contract or subcontract, or the proceeds thereof, for work to be performed in connection with
the Project or in any activity, or benefit there from, which is part of the Project. 
 (c) The Borrower acknowledges that the
EDA relied in material part upon the assured completion of the Project to be carried out by the Borrower, and the Borrower warrants that said Project will be carried out as promised. 

(d) The Borrower warrants that to the best of its knowledge, it has obtained all federal, state, and local governmental approvals,
reviews, and permits required by law to be obtained in connection with the Project and has undertaken and completed all actions necessary for it to lawfully execute this Agreement as binding upon it. 

(e) The Borrower warrants that it shall keep and maintain books, records, and other documents relating directly to the Leveraged Funds,
and that any duly authorized representative of the EDA shall, at all reasonable times, have access to and the right to inspect, copy, audit, and examine all such books, records, and other documents of the Borrower until such time that the EDA has
determined that all issues, requirements, and close-out procedures relating to or arising out of the Loan have been settled and completed. 
 (f) The Borrower warrants that it has fully complied with all applicable local, state, and federal laws pertaining to its business and will continue such compliance throughout the terms of this Agreement.
If at any time notice of noncompliance is received by the Borrower, the Borrower agrees to take any necessary action to comply with the local, state, or federal law in question. 

 ARTICLE 10 
 Other Special Conditions 
 Section 10.1. Antitrust. The Borrower
hereby assigns to the State of Minnesota any and all claims for overcharges as to goods and services provided in connection with this Agreement resulting from antitrust violations that arise under the antitrust laws of the United States or the
antitrust laws of the State. 
 Section 10.2. Loan Closeout. The Borrower shall, provide the EDA with all documentation
necessary to demonstrate that the Loan has been used for the items and purposes set forth in the Application. 
 Section 10.3.
Review of Documents. The Borrower shall not be entitled to any disbursement of Loan Proceeds until the EDA’s legal counsel have reviewed and approved this Agreement and the exhibits attached hereto. 

Section 10.4. Effect on Other Agreements. Nothing in this Agreement shall be construed to modify any term of any other agreement to
which the EDA and the Borrower are parties. 
 Section 10.5. Release and Indemnification Covenants. Except for any breach of
the representations and warranties of the EDA or the negligence or other wrongful act or omission of the following named parties, the Borrower agrees to protect and defend the EDA and the governing body members, officers, agents, servants, and
employees thereof, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action, or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from the acquisition,
construction, installation, ownership, maintenance, and operation of the Development Property and the Borrower’s activities on the Development Property. 
 Section 10.6. Modifications. This Agreement may be modified solely through written amendments hereto executed by the Borrower and the EDA. 

Section 10.7. Notices and Demands. Any notice, demand, or other communication under this Agreement by either party to the other shall
be sufficiently given or delivered only if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally: 
  

					
	 (a)
	  	as to the EDA:	  	Coon Rapids EDA
		  		  	ATTN: City Manager
		  		  	11155 Robinson Drive
		  		  	Coon Rapids, MN 55433
			
	 (b)
	  	as to the Borrower:	  	Sam Duffy
		  		  	Biovest International
		  		  	324 South Hyde Park Ave., Suite 350
		  		  	Tampa, FL, 33606
			
		  		  	Mark Hirschel
		  		  	Biovest International
		  		  	8500 Evergreen Blvd
		  		  	Coon Rapids, MN 55433

					
	 (a)
	  	as to JMS	  	JMS Holdings, LLC
		  		  	Attn Jim Stanton
		  		  	3200 Main St. NW
		  		  	Coon Rapids, MN 55448

 or at such other address with
respect to any party as that party may, from time to time, designate in writing and forward to the others as provided in this Section 10.8. 
 Section 10.8. Conflict of Interests; Representatives Not Individually Liable. No officer or employee of the EDA may acquire any financial interest, direct or indirect, in this
Agreement, the project site or in any contract related to the project site. No officer, agent, or employee of the EDA shall be personally liable to the Borrower or any successor in interest in the event of any default or breach by the EDA or for any
amount that may become due to the Borrower or on any obligation or term of this Agreement. 
 Section 10.9. Binding Effect.
The covenants and agreements in this Agreement shall bind and benefit the heirs, executors, administrators, successors, and assigns of the parties to this Agreement. 
 Section 10.10. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be merged by reason of any deed transferring any interest in the
Development Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. 

Section 10.11. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of this Agreement are inserted
only for convenience of reference and shall be disregarded in construing or interpreting any of its provisions. 
 Section 10.12.
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. 

Section 10.13. Choice of Law and Venue. This Agreement shall be governed by and construed in accordance with the laws of the state of
Minnesota without regard to its conflict of laws provisions. Any disputes, controversies, or claims arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any objection to
the jurisdiction of these courts, whether based on convenience or otherwise. 

 Section 10.14. Waiver. The failure or delay of any party to take any action or assert any
right or remedy, or the partial exercise by any party of any right or remedy shall not be deemed to be a waiver of such action, right, or remedy if the circumstances creating such action, right, or remedy continue or repeat. 

Section 10.15. Entire Agreement. This Agreement, with the exhibits hereto, constitutes the entire agreement between the parties
pertaining to its subject matter and it supersedes all prior contemporaneous agreements, representations, and understandings of the parties pertaining to the subject matter of this Agreement. 
 Section 10.16. Separability. Wherever possible, each provision of this Agreement and each related document shall be interpreted so that it is valid under applicable law. If any
provision of this Agreement or any related document is to any extent found invalid by a court or other governmental entity of competent jurisdiction, that provision shall be ineffective only to the extent of such invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement or any other related document. 
 Section 10.17.
Immunity. Nothing in this Agreement shall be construed as a waiver by the EDA of any immunities, defenses, or other limitations on liability to which the EDA is entitled by law, including but not limited to the maximum monetary limits on
liability established by Minnesota Statutes, Chapter 466. 
 [Remainder of this page intentionally left blank] 

 IN WITNESS WHEREOF, the EDA has caused this Agreement to be duly executed in its name
and behalf and the Borrower has caused this Agreement to be duly executed in its name and behalf as of the date first above written. 
  

			
	ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COON RAPIDS
		
	 By:
	 	 /s/ Tim Howe

		 	Tim Howe, Chair
		
	 By:
	 	 /s/ Denise Klint

		 	Denise Klint, Secretary
	
	 BIOVEST INTERNATIONAL, INC.

		
	 By:
	 	 /s/ David Moser

	 Name:
	 	David Moser
	 Its:
	 	Secretary

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