Document:

Secured Term B Note between Biovest and Valens Offshore SPV I

 Exhibit 10.11 
 THIS NOTE IS EXECUTED AND DELIVERED AS PART OF THE CONFIRMED FIRST AMENDED JOINT PLAN OF REORGANIZATION OF BIOVEST INTERNATIONAL, INC., BIOVAX, INC., AUTOVAXID, INC., BIOLENDER, LLC AND BIOLENDER II,
LLC, AS MODIFIED, IN THE JOINTLY ADMINISTERED CHAPTER 11 CASE STYLED IN RE: ACCENTIA BIOPHARMACEUTICALS, INC., CASE NO. 8:08-BK-17795-KRM, IN THE UNITED STATES BANKRUPTCY COURT FOR THE MIDDLE DISTRICT OF FLORIDA, TAMPA DIVISION, AND IS,
THEREFORE, EXEMPT FROM DOCUMENTARY STAMP TAX PURSUANT TO 11 U.S.C. §1146(a). 
 THIS NOTE AND THE COMMON STOCK
ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS. THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH COMMON STOCK UNDER SUCH SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS OR (B) AN EXEMPTION FROM SUCH REGISTRATION
REQUIREMENTS. 
 THIS NOTE IS ISSUED IN REGISTERED FORM. UNLESS THIS NOTE IS PRESENTED BY THE HOLDER (AS DEFINED BELOW)
TO THE COMPANY (AS DEFINED BELOW) FOR REGISTRATION OF TRANSFER, EXCHANGE, CONVERSION OR PAYMENT, ANY TRANSFER, EXCHANGE OR OTHER USE HEREOF SHALL BE VOID AND PAYMENT SHALL NOT BE MADE. 

TRANSFER OF ALL OR ANY PORTION OF THIS NOTE IS PERMITTED SUBJECT TO THE PROVISIONS SET FORTH IN THE SECURITY AGREEMENT (AS DEFINED
BELOW). 
 SECURED TERM B NOTE 

FOR VALUE RECEIVED, BIOVEST INTERNATIONAL, INC., a Delaware corporation with a principal business
address of 324 South Hyde Park Avenue, Suite 350, Tampa, Florida 33606 (the “Company”), hereby promises to pay to VALENS OFFSHORE SPV I, LTD., a Cayman Islands company with a principal business address of c/o Laurus Capital
Management LLC, 875 Third Avenue, 3rd Floor, New York, New
York 10022 (the “Holder”) or its registered assigns or successors, the sum of One Million Nine Hundred Eighty Thousand Five Hundred Ninety Two Dollars ($1,980,592.00) (the “Principal Amount”), together with any
accrued and unpaid interest hereon, on November 17, 2013 or such earlier date as required pursuant to the terms hereof whether by acceleration or otherwise (the “Maturity Date”), if not sooner indefeasibly paid in full.

 Capitalized terms used herein without definition shall have the meanings ascribed to such terms in that
certain Term Loan and Security Agreement dated as of November 17, 2010 (as amended, restated, modified and/or supplemented from time to time, the “Security Agreement”) among the Company, the Holder, each Lender from time to
time party thereto and LV Administrative Services, Inc., as administrative and collateral agent for the Holder and the other 

 
Lenders (the “Agent” together with the Holder and the other Lenders party thereto, collectively, the “Credit Parties”). 

This Secured Term B Note (the “Note”) is secured by a security interest and lien on all assets of the
Company including Accentia’s pledge of certain of the shares of Biovest Common Stock it holds, in each case in accordance with the terms of the Security Agreement and the Ancillary Agreements. This Note is guaranteed by Accentia in accordance
with and subject to the terms of the Accentia Limited Guaranty. The indebtedness represented by this Note shall be a senior obligation of the Company, except as otherwise expressly provided in the Confirmed Plan for administrative expense claim
carve-outs approved by orders of the Bankruptcy Court and except that the Company’s obligations hereunder shall be junior to the obligations of the Company to the Exit Lender in a maximum amount of $3,000,000 in accordance with the terms of a
Subordination Agreement dated the date hereof between the Agent and the Exit Lender. 
 This Note shall be
subject to the terms and provisions of the Confirmed Plan. To the extent that there is any conflict between the terms and provisions of this Note and the terms and provisions of the Confirmed Plan, the terms and provisions of this Note shall
control. 
 The following terms shall apply to this Note: 

ARTICLE I 

CONTRACT RATE AND MATURITY 
 1.1        Contract Rate.  Subject to Sections 4.2 and 5.9, interest payable on the outstanding Principal Amount of this Note shall accrue at a
simple interest rate per annum equal to eight percent (8%) (the “Contract Rate”). Interest shall be (i) calculated on the basis of a 365 day year, and (ii) payable on the Maturity Date or upon the date of any
Mandatory Prepayment (as defined below) or Optional Prepayment (as defined below). If a Mandatory Prepayment or Optional Prepayment occurs, accrued and unpaid interest on the portion of the Principal Amount being repaid shall be due and payable at
such time. 
 1.2        Principal Payments.  Subject to Sections 2.2
and 4.3, the outstanding Principal Amount together with any accrued and unpaid interest and any and all other unpaid amounts which are then owing by the Company to the Holder under or in connection with this Note shall be due and payable on the
Maturity Date. 
 ARTICLE II 
 PREPAYMENT 

2.1        Optional Prepayment.  The Company may prepay this
Note at any time, in whole or in part, without penalty or premium (“Optional Prepayment”). 

2.2        Mandatory Prepayment.  The Company shall prepay this
Note as follows (“Mandatory Prepayment”): 

(a)        If the principal amount of and all interest on the Term A Notes have
been paid in full, upon receipt by the Company after the date hereof of cash proceeds from any capital contribution, loan, or issuance of debt or equity (a “Capital Raise”), and provided

  
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that the Capital Raise is from funds provided by Accentia (an “Intercompany Funding”), thirty percent (30%) of the amount proposed to be funded by Accentia in the
Intercompany Funding shall first be used by Accentia to prepay the Accentia Term Notes to the holders thereof and, if the Accentia Term Notes have been paid in full, the balance of such thirty percent (30%) of the Intercompany Funding, upon the
receipt by the Company of the Intercompany Funding, shall then be used to prepay the Term B Notes (on a pro rata basis). However, if the Intercompany Funding was made with funds obtained by Accentia from a third party, and if Accentia made a
mandatory prepayment under and in accordance with Section 2.2(a) of the Accentia Term Notes on account of such third party funding (an “Accentia Mandatory Prepayment”), then the combined aggregate prepayment required to be made
under the Accentia Term Notes and the Term B Notes pursuant to the preceding sentence will be reduced by the amount of such Accentia Mandatory Prepayment actually made in respect of such Intercompany Funding. The term “Capital Raise” shall
not, in any event, include any new loans made by Accentia to the Company after the date hereof, up to a maximum amount equal to the difference between (x) $3,000,000 and (y) the principal amount outstanding under the Exit Lender Credit
Facility as of the date hereof. For purposes hereof, cash proceeds received by the Company from the exercise of stock options or stock purchase warrants shall not constitute a Capital Raise if the stock option or stock purchase warrant was issued
prior to the date hereof or issued pursuant to the Confirmed Plan. 

  (b)        On a Mandatory Prepayment Date, the amount required to be
paid pursuant to Section 2.2(a) (the “Mandatory Prepayment Amount”) shall be paid in immediately available funds to the Holder. In the event the Company fails to pay the Mandatory Prepayment Amount on the Mandatory Prepayment
Date as set forth herein, then it shall constitute an Event of Default hereunder. 
 ARTICLE III 

CONVERSION OPTION 
 3.1        Conversion Election.  At any time after the date hereof, the Company may elect to convert all or a portion of the principal and all
accrued and unpaid interest thereon outstanding under this Note into shares of Biovest Common Stock (a “Conversion Election”) upon prior written notice to, and the written consent of, the Holder. If the Company wishes to make a
Conversion Election, the Company shall give notice of such election by delivering an executed and completed notice of conversion in substantially the form of Exhibit A hereto (appropriately completed) (“Notice of Conversion”)
to the Holder and such Notice of Conversion shall provide a breakdown in reasonable detail of the principal and accrued and unpaid interest thereon outstanding under this Note that are being converted and the calculation of the number of shares of
Biovest Common Stock issuable to the Holder on conversion. 
 The number of shares of Biovest Common Stock
issuable to the Holder (the “Conversion Shares”) upon its delivery of a Conversion Acceptance (as defined below) shall be equal to (a) an amount equal to the aggregate portion of the principal and accrued and unpaid interest
thereon outstanding under this Note being converted, divided by (b) ninety percent (90%) of the average closing price publicly reported for the Biovest Common Stock for the ten (10) trading days immediately preceding the date of the
Notice of Conversion. 

  
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 The Holder shall have five (5) Business Days after receipt of a Notice
of Conversion to notify the Company in writing of whether or not it consents to the Company’s Conversion Election (a “Conversion Acceptance”). If the Holder fails to provide written notice to the Company, within such five
(5) Business Day period, the Holder shall be deemed not to have consented to such Conversion Election. 

3.2        Issuance of Conversion Shares.  If the Holder has
delivered a Conversion Acceptance (together with the surrender of this Note), effective as of a Conversion Date (as hereinafter defined) and in accordance with the Notice of Conversion, the Company shall make the appropriate reduction to the
Principal Amount and accrued and unpaid interest thereon outstanding under this Note as entered in its register and its records, and if conversion is in part, issue a new Secured Term B Note in accordance with Section 3.6 hereof. Each date on
which a Notice of Conversion is delivered to the Holder in accordance with the provisions hereof shall be deemed a Conversion Date (a “Conversion Date”). Pursuant to the terms of the Notice of Conversion and if the Holder has
delivered a Conversion Acceptance, the Company shall, within one (1) Business Day after the date of the delivery to the Company of the Conversion Acceptance (together with the surrender of this Note), issue instructions to its transfer agent
(accompanied by an opinion of counsel) to transmit the certificates representing the Conversion Shares to the Holder, by crediting the account of the Holder’s designated broker with the Depository Trust Corporation (“DTC”)
through its Deposit Withdrawal Agent Commission (“DWAC”) system within three (3) Business Days after receipt by the Company of the Conversion Acceptance (the “Delivery Date”). In the case of the exercise of the
conversion rights set forth herein and the consent of the Holder to such conversion, the conversion privilege shall be deemed to have been exercised and the Conversion Shares issuable upon such conversion shall be deemed to have been issued upon the
date of receipt by the Holder of the Notice of Conversion. The Holder shall be treated for all purposes as the record holder of the Conversion Shares, unless the Holder provides the Company written instructions to the contrary. 

3.3        Late Payments.  The Company understands that a delay
in the delivery of the Conversion Shares in the form required pursuant to this Article III beyond the Delivery Date could result in economic loss to the Holder. As compensation to the Holder for such loss, in addition to all other rights and
remedies which the Holder may have under this Note, applicable law or otherwise, the Company shall pay late payments to the Holder for any late issuance of the Conversion Shares in the form required pursuant to this Article III upon conversion of
this Note, in the amount equal to $500 per Business Day after the Delivery Date. The Company shall, jointly and severally, make any payments incurred under this Section 3.3 in immediately available funds upon demand. 

3.4        Adjustment Provisions.  The kind of shares or other
securities to be issued upon conversion as determined pursuant to Section 3.1 shall be subject to adjustment from time to time upon the occurrence of certain events during the period that this conversion right remains outstanding, as follows:

   (a)         If the Company at any time shall, by
reclassification or otherwise, change the Biovest Common Stock into the same or a different number of securities of any class or classes, this Note, as to the unpaid Principal Amount and the accrued and unpaid interest thereon, shall thereafter be
deemed to evidence the right to purchase an adjusted number of such 

  
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securities and kind of securities as would have been issuable as the result of such change with respect to the Biovest Common Stock (i) immediately prior to or (ii) immediately after
such reclassification or other change at the sole election of the Holder. 

3.5        Reservation of Shares.  During the period this
conversion right remains outstanding, the Company will reserve from its authorized and unissued Biovest Common Stock a sufficient number of shares to provide for the issuance of the Conversion Shares upon the full conversion of this Note. The
Company represents that, upon issuance, the Conversion Shares will be duly and validly issued, fully paid and non-assessable. The Company agrees that its issuance of this Note shall constitute full authority to its officers, agents, and transfer
agents who are charged with the duty of executing and issuing stock certificates to execute and issue the necessary certificates for the Conversion Shares upon the conversion of this Note. 

3.6        Issuance of New Note.  Upon any partial conversion of
this Note and surrender of this Note, a new Secured Term B Note containing the same date and provisions of this Note shall be issued by the Company to the Holder for the unpaid Principal Amount and accrued and unpaid interest thereon which shall not
have been converted or paid. The Holder shall not pay any costs, fees or any other consideration to the Company for the production and issuance of a new Secured Term B Note. 

3.7        Rule 144 Limitations.  Sales of the Conversion Shares
by the Holder will be subject to, and the Holder will comply with, the limitations on the number of shares of Biovest Common Stock that may be sold from time to time contained in Rule 144(e) of the Rules and Regulations under the Securities Act of
1933, as amended, promulgated by the United States Securities and Exchange Commission (“Rule 144”), without regard to whether or not the Holder is considered an “Affiliate” of the Company for purposes of Rule 144(e).

 ARTICLE IV 
 EVENTS OF DEFAULT 

4.1        Events of Default.  The occurrence of any Event of Default under the
Security Agreement shall constitute an event of default (“Event of Default”) hereunder. 

4.2        Default Interest.  Following the occurrence and during the
continuance of an Event of Default, the Company shall pay additional interest on the outstanding Principal Amount of this Note in an amount equal to the Contract Rate plus four percent (4%) per annum (calculated based on a 365 day year), and
all outstanding obligations under this Note, the Security Agreement and each other Ancillary Agreement, including unpaid interest, shall continue to accrue interest at such additional interest rate from the date of such Event of Default until the
date such Event of Default is cured or waived. 

4.3        Acceleration.  Upon an Event of Default, the entire outstanding
Principal Amount, together with all accrued but unpaid interest and all amounts due and payable hereunder, shall be immediately due and payable hereunder, without notice or demand. Upon an Event of Default, Holder may exercise any and all other
rights and remedies available to it under this Note, the Security Agreement, the Guaranties, the other Ancillary Agreements and applicable law. 

  
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 4.4        Designated
Directors.  In addition to any other remedies available to Holder under this Note, the other Ancillary Agreements or under applicable law, upon an Event of Default under Section 20(a) of the Security Agreement (after giving effect
to any applicable grace period provided therein) (a “Trigger Event”), the Agent shall be entitled in its sole discretion to appoint and maintain one-third (1/3) of the total number of directors of the Company (the
“Designated Directors”) and to remove from office any person so appointed and appoint another person in his or her stead or fill his or her vacancy if he or she shall resign. Following a Trigger Event, such right to appoint
Designated Directors shall continue notwithstanding the Company’s cure of any such Event of Default until the BVTI Term Notes have been paid in full. Upon the occurrence of a Trigger Event, the Board of Directors of the Company shall be
restricted from taking any action until the Agent shall have had a reasonable opportunity to appoint the Designated Directors, except that the Board of Directors of the Company shall, as promptly as practicable, take such action to permit compliance
with the provisions of this Note, including, without limitation, increasing the size of the Board of Directors to permit the Agent to appoint the Designated Directors and/or removal of existing directors. 

ARTICLE V 

MISCELLANEOUS 
 5.1        Cumulative Remedies.  The remedies under this Note shall be cumulative. 

5.2        Notice; Failure or Indulgence Not Waiver.  No failure
or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise
thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available. The Company hereby waives all demands for payment, presentations for
payment, notices of intention to accelerate maturity, notices of acceleration of maturity, protest, notice of protest and notice of dishonor, to the extent permitted by law. 

Upon execution of this Note, the Company acknowledges, agrees and confirms that it has no defense, offset or counterclaim
for any occurrence in relation to this Note and the Company acknowledges that Holder has complied with all of its obligations under the Security Agreement as of the date hereof. The liability of the Company to the Holder shall be absolute and
unconditional and without regard to the liability of any other party. 

5.3        Notices.  Any notice herein required or permitted to
be given shall be given in writing in accordance with the terms of the Security Agreement. 

5.4        Amendment Provision.  The term
“Note” and all references thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument as such
successor instrument may be amended or supplemented. This Note may not be amended or modified without the written consent of the Holder and the Company, and subject, in any event, to the Security Agreement. 

  
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5.5        Assignability.    This Note shall be binding
upon the Company and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns, and may be assigned by the Holder in accordance with the requirements of Section 24 of the Security Agreement. The
Company may not assign any of its obligations under this Note without the prior written consent of the Holder and any such purported assignment without such consent shall be null and void. 

5.6        Cost of Collection.  Following the occurrence of an
Event of Default under this Note, the Company shall, jointly and severally, pay the Holder the Holder’s reasonable costs of collection, including attorneys’ fees. 

5.7        Governing Law, Jurisdiction and Waiver of Jury Trial.

   (a)        THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
   (b)        THE COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE AND/OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK
SHALL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THE COMPANY, ON THE ONE HAND, AND THE HOLDER AND/OR ANY OTHER CREDIT PARTY, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR ANY OF THE OTHER ANCILLARY AGREEMENTS OR
TO ANY MATTER ARISING OUT OF OR RELATED TO THIS NOTE OR ANY OF THE ANCILLARY AGREEMENTS; PROVIDED, THAT THE COMPANY ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF
NEW YORK, STATE OF NEW YORK; AND FURTHER PROVIDED, THAT NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER AND/OR ANY OTHER CREDIT PARTY FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION
TO COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE HOLDER AND/OR ANY OTHER CREDIT PARTY. THE COMPANY EXPRESSLY SUBMITS AND CONSENTS IN
ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND THE COMPANY HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS. THE COMPANY AND
THE HOLDER HEREBY WAIVE PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREE THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO THE
COMPANY, THE AGENT OR THE HOLDER, AS APPLICABLE, AT THE ADDRESS SET FORTH IN THE SECURITY AGREEMENT AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF THE COMPANY’S, THE AGENT’S OR THE HOLDER’S, AS APPLICABLE,
ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAIL, PROPER POSTAGE PREPAID. 

  
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   (c)        THE COMPANY
DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND/OR OF ARBITRATION, THE COMPANY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER AND/OR ANY OTHER CREDIT PARTY, ON THE ONE HAND, AND/OR THE COMPANY, ON THE OTHER HAND, ARISING OUT OF, CONNECTED WITH, RELATED OR
INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, ANY OTHER ANCILLARY AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO. 

5.8        Severability.  In the event that any provision of
this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the limited extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule
of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of this Note which shall be enforceable to the maximum extent permitted by law. 

5.9        Maximum Payments.  Nothing contained herein shall be
deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum rate
permitted by such law, any payments in excess of such maximum rate shall be credited against amounts owed by the Company to the Holder and thus refunded to the Company. 

5.10        Security Interest.  The Agent, for the ratable
benefit of the Credit Parties, has been granted a security interest in certain assets of the Company as more fully described in the Security Agreement and the other Ancillary Agreements. 

5.11        Construction; Counterparts.  Each party acknowledges
that its legal counsel participated in the preparation of this Note and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Note to
favor any party against the other. This Note may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument. Any
signature delivered by a party by facsimile or electronic transmission shall be deemed to be an original signature hereto. 
 5.12        Registered Obligation.  Notwithstanding any document, instrument or agreement relating to this Note to the contrary, transfer of this
Note may only be effected in accordance with the Security Agreement. 

5.13        Only Registered Form of Notes.  This Note is issued
in registered form only. The Company shall maintain a register which shall reflect the registration, transfer, conversion and exchanges of the Term B Notes. Any transfer, exchange or conversion of this Note is required to be registered on the
register of the Company and only upon surrender of this 

  
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Note for registration, exchange, conversion or transfer at the office of the Company maintained for such purpose, or at such other location as designated by the Company, accompanied with such
other instruments as required by the Company, and thereupon one or more new Notes, of authorized denominations and for the same aggregate principal amount (or upon conversion, a reduced principal amount), will be issued to the Holder or designated
transferee or transferees. The Company shall treat the person in whose name this Note is registered in the register as the owner of this Note for the purposes of receiving payment of any amounts due hereunder and for all other purposes whatsoever in
connection with this Note. 
 IN WITNESS WHEREOF, the Company has caused this Secured Term B Note to be signed in its name
effective as of November 17, 2010. 
  

							
	WITNESS:	 		 	BIOVEST INTERNATIONAL, INC.
				
	 /s/ YiYi Lam
	 		 	By:	 	         /s/ David
Moser

							
		 		 	Name:	 	         David Moser
		 		 	Title:	 	         Secretary

  
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 EXHIBIT A 

NOTICE OF CONVERSION 
 (To be executed by the Holder in order to convert the 
 Secured Term B Note)

 The undersigned hereby elects to convert $             of
the principal and $             of the interest due on the Secured Term B Note dated as of November 17, 2010 (the “Note”) issued by Biovest International, Inc.
(the “Company”) into shares of Common Stock of the Company in accordance with the terms and conditions set forth in the Note, as of the date written below. 

 

			
	Date of Conversion:	 	  

		
	Conversion Price:	 	  

		
	Shares to be Delivered:	 	  

		
	Signature:	 	  

		
	Print Name:	 	  

		
	Address:	 	  

		
	Holder DWAC instructions:	 	  

  
 10Contingent Payment Agreement between Biovest and Erato

 Exhibit 10.12 
 CONTINGENT PAYMENT AGREEMENT 
 BETWEEN 

BIOVEST INTERNATIONAL, INC. 
 AND 
 ERATO CORP. 

This Contingent Payment Agreement (this “Agreement”) is made as of November 17, 2010 (the
“Effective Date”), by and between BIOVEST INTERNATIONAL, INC., a Delaware corporation (“Biovest”), and ERATO CORP., a Delaware corporation (the “Company”). Unless otherwise defined herein,
capitalized terms used herein shall have the meaning ascribed to such terms in the Security Agreement (as defined below). 

RECITALS 
 WHEREAS, Biovest and its subsidiaries, Biovax, Inc., AutovaxID, Inc., Biolender, LLC, and Biolender II, LLC, were previously debtors and debtors in possession in the jointly administered bankruptcy cases
of Biovest and its aforementioned subsidiaries (the “Biovest Bankruptcy Cases”) filed in the United States Bankruptcy Court for the Middle District of Florida, Tampa Division (the “Bankruptcy Court”); 

WHEREAS, as of the Petition Date, Biovest was indebted to Laurus Master Fund, Ltd. (In Liquidation), Valens U.S. SPV I,
LLC, Valens Offshore SPV I, Ltd. and Valens Offshore SPV II, Corp. (collectively, the “Prepetition Lenders”) in an aggregate principal amount of $30,154,082.65, plus interest and other amounts due thereon, according to proofs of
claim filed by the Prepetition Lenders in the Biovest Bankruptcy Cases (the “Prepetition Debt”); 
 WHEREAS, in connection with Biovest incurring the Prepetition Debt, Biovest and Accentia, pursuant to various agreements, granted to certain of the Prepetition Lenders an aggregate royalty equal to 19.50%
of the net sales and license revenues from the Biovest Biologic Products received by Biovest (the “Prepetition Biovest Royalty”); 
 WHEREAS, in satisfaction of the Prepetition Debt and for other consideration, certain of the Prepetition Lenders have agreed to accept allowed secured claims against Biovest in the Biovest Bankruptcy
Cases in the aggregate amounts of $24,900,000.00 and $4,160,000.00, respectively, upon the terms and conditions set forth in a Term Loan and Security Agreement, dated as of the date hereof, by and among Biovest, LV Administrative Services, Inc., as
administrative and collateral agent for the Lenders, and the Lenders party thereto (the “Security Agreement”) and in the Confirmed Plan; 
 WHEREAS, pursuant to the terms and conditions of the Security Agreement, the Prepetition Lenders (and certain of their Affiliates), Biovest and Accentia have agreed, by separate agreements, to terminate
the Prepetition Biovest Royalty effective as of the date of this Agreement; and 

 WHEREAS, pursuant to the terms and conditions of the Security Agreement,
Biovest has agreed to enter into this Agreement and other agreements in order to grant contingent payments to each of the Company, Valens Offshore SPV I, Ltd., Valens Offshore SPV II, Corp., Valens U.S. SPV I, LLC, and PSource Structured Debt
Limited, (a) in the aggregate amount of six and twenty-five hundredths percent (6.25%) of the Gross Revenue derived from the sale, license or other disposition of the Biovest Biologic Products received by Biovest or its Affiliates (the
“Aggregate Biovest Contingent Payment”) and (b) in the aggregate amount of six and twenty-five hundredths percent (6.25%) of the Gross Revenue derived from the sale, license or other disposition of the Biovest Biologic
Products received by Sublicensees and Transferees (the “Aggregate Sublicensee/Transferee Contingent Payment”) as more particularly described below. 

NOW, THEREFORE, in consideration of the various promises and undertakings set forth herein, the Parties agree as follows:

 ARTICLE 1 - DEFINITIONS 
 As used herein, the following capitalized terms shall have the following meanings: 
 1.1         “Accentia” shall mean Accentia Biopharmaceuticals, Inc., a Florida corporation. 

1.2         “Accentia Companies” shall mean Accentia and its
subsidiaries, other than Biovest. 
 1.3         “Aggregate
Biovest Contingent Payment” shall have the meaning set forth in the Recitals hereto. 
 1.4
        “Aggregate Sublicensee/Transferee Contingent Payment” shall have the meaning set forth in the Recitals hereto. 

1.5         “Affiliate”, with respect to any Party, shall mean
any Person or entity controlling, controlled by, or under common control with such Party. For those purposes, “control” shall refer to (i) the possession, directly or indirectly, of the power to direct the management or policies of a
Person or entity, whether through the ownership of voting securities, by contract or otherwise, or (ii) the ownership, directly or indirectly, of at least 50% of the voting securities or other ownership interest of a Person or entity.
Notwithstanding the foregoing, the term “Affiliate” shall not include any arrangement or entity formed to develop and/or commercialize one or more products jointly with one or more non-affiliated Third Parties (“Joint
Venture”); provided the product which is the subject of the Joint Venture was not previously owned by Biovest, was not being developed by Biovest prior to the commencement date of the Joint Venture and is not based upon or related to the
BiovaxID vaccine or an autologous production process or produced using mouse-human heterohybridoma cell culture techniques. 

  
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 1.6
        “Agreement” shall mean this Contingent Payment Agreement, as the same may be amended, modified or supplemented from time to time in accordance with its terms. 

1.7         “Bankruptcy Court” shall have the meaning set forth
in the Recitals hereto. 
 1.8         “BBP Purchase Price
Allocation” shall have the meaning set forth in Section 6.2 hereto. 
 1.9
        “BiovaxID®” shall mean the personalized, patient-specific therapeutic vaccine, currently in clinical development by Biovest, designed to stimulate the patient’s own immune
system to recognize and destroy cancerous B-cells for treatment of follicular non-Hodgkin’s lymphoma. 

1.10         “Biovest” shall have the meaning set forth in the
preamble hereto. 
 1.11         “Biovest Assets” shall
have the meaning set forth in Section 6.2 hereto. 
 1.12
        “Biovest Bankruptcy Cases” shall have the meaning set forth in the Recitals hereto. 

1.13         “Biovest Biologic Products”
shall mean all biopharmaceutical products, including but not limited to monoclonal antibodies, peptides, infectious disease and cancer vaccines, including but not limited to BiovaxID®, autologous cancer vaccines such as for non-Hodgkins lymphoma and renal cell carcinoma, cell-based therapies, stem cells, cytokines, and viruses produced by
mouse-human heterohybridoma cell culture techniques, which are currently owned, licensed or being developed by Biovest or its Affiliates or which may be subsequently acquired or developed by Biovest or its Affiliates during the Term of this
Agreement. Notwithstanding the foregoing, Biovest Biologic Products shall not include (i) any vaccines for respiratory viruses, such as influenza, (ii) any biopharmaceutical products produced under contract for Third Parties,
(iii) and biopharmaceutical products being developed by Biovest or its Affiliates for Third Parties or (iv) any products owned, licensed, or developed by the Accentia Companies; provided that in the cases of clauses (i), (ii) and
(iii), no such vaccine for a respiratory virus or biopharmaceutical product shall be based upon or related to the BiovaxID vaccine, Biovest’s Intellectual Property (as of the date hereof) or shall be based on an autologous production process or
shall be produced using mouse-human heterohybridoma cell culture techniques. 
 1.14
        “Biovest Party” shall have the meaning set forth in Section 3.10 hereto. 
 1.15         “Biovest Contingent Payment” shall have the meaning set forth in Section 3.1(a) hereto. 

  
 3 

 1.16        “Contingent
Payments” shall have the meaning set forth in Section 3.1(b) hereto. 

1.17        “Effective Date” shall have the meaning set forth in
the preamble hereto. 
 1.18        “Full Product Sale”
shall mean either (i) the irrevocable sale of all of Biovest’s or its Affiliate’s rights and interest in a specific Biovest Biologic Product to a Third Party, or (ii) the grant to a Third Party of a perpetual worldwide exclusive
license to a Biovest Biologic Product in one or more fields of use. 

1.19        “Gross Revenue” shall mean any and all revenue or
royalties actually received by Biovest or any of its Affiliates, Sublicensees or Transferees from the sale or license of the Biovest Biologic Products, including, without limitation, derived from a Full Product Sale, whether as a single closing
payment, installment payments, or continuing license payments or any combination thereof, upfront revenue, milestone revenue, license fees, royalty income, and the market value at the time of transfer of all non-monetary consideration such as barter
or counter-trade in the country of disposition. “Gross Revenues” shall not include revenue from sales of Biovest Biologic Products at below-market prices or rates to the indigent, poor, or disadvantaged pursuant to any program of Biovest
(or any Affiliate, Sublicensee, or Transferee) or any program of any Third Party relating to sales of product to the indigent, poor, or disadvantaged. 
 1.20        “Party” shall mean Company or Biovest and “Parties” shall mean Company and Biovest. 

1.21        “Patent” means (i) any unexpired patent
(including inventor’s certificates) which has not been held invalid or unenforceable by a court of competent jurisdiction from which no appeal can be taken or has been taken within the required time period, including without limitation any
substitution, extension, registration, confirmation, reissue, re-examination, renewal or any like filing thereof, and (ii) pending applications for patent, including without limitation any continuation, division or continuation-in-part thereof
and any provisional applications. 

1.22        “Person” shall mean any individual, corporation,
partnership, limited liability company, trust, joint venture, governmental entity or other unincorporated entity, association or group. 
 1.23        “Prepetition Biovest Royalty” shall have the meaning set forth in the Recitals hereto. 

1.24        “Prepetition Debt” shall have the meaning set forth
in the Recitals hereto. 
 1.25        “Prepetition
Lenders” shall have the meaning set forth in the Recitals hereto. 

  
 4 

 1.26        “Prime
Rate” shall have the meaning set forth in Section 3.6 hereto. 

1.27        “Security Agreement” shall have the meaning set
forth in the Recitals hereto. 

1.28        “Sublicensee” shall mean the holder of any right to
sell, license or otherwise dispose of the Biovest Biologic Products, excluding any licensee or sublicensee in a Full Product Sale. 
 1.29        “Sublicensee/Transferee Contingent Payment” shall have the meaning set forth in Section 3.1(b) hereto. 

1.30        “Term” shall have the meaning set forth in
Section 6.1 hereto. 
 1.31        “Third Party”
means any Person or entity other than Company, Biovest or any Affiliate of either Company or Biovest. 

1.32        “Third Party Claims” shall have the meaning set
forth in Section 5.1 hereto. 

1.33        “Transferee” shall mean any Person to whom Biovest
or any of its Affiliates shall sell any of the Biovest Biologic Products, excluding any transferee in a Full Product Sale. 

ARTICLE 2 - REPRESENTATIONS AND WARRANTIES 
 2.1        Representations and Warranties of Both Parties. Each Party represents and warrants to the other Party that: (i) it is free to enter into this
Agreement; (ii) in so doing, it will not violate any other agreement to which it is a party; and (iii) it has taken all corporate, limited liability company or partnership action necessary to authorize the execution and delivery of this
Agreement and the performance of its obligations under this Agreement. 

2.2        Representations and Warranties of Biovest. Biovest hereby
represents and warrants to Company that: 
 (a)        Biovest has the
right to enter into this Agreement and has received all consents and approvals from all Third Parties, including, to the extent applicable, all governmental and quasi-governmental authorities necessary for it to enter into and be bound by the terms
of this Agreement; 
 (b)        Biovest is not aware of any asserted
or unasserted claim or demand against any Biovest Biologic Products; 

(c)        To the best of Biovest’s knowledge, no Biovest Biologic Product
infringes upon any Patent or other proprietary rights of any Third Party; and 

  
 5 

 (d)        Biovest has not entered
into any agreement with any Third Party which is in conflict with the rights granted to Company pursuant to this Agreement. 

ARTICLE 3 - CONTINGENT PAYMENTS AND REPORTS 
 3.1        Contingent Payments. 
 (a)        Biovest Gross Revenue.    Biovest shall pay to Company, or its assigns, a perpetual contingent payment equal to 13.28% of the
Aggregate Biovest Contingent Payment (the “Biovest Contingent Payment”). For the avoidance of doubt, no contingent payment right is granted to Company hereunder with regard to any Biovest activity other than the Biovest Biologic
Products, and no right, interest, or license to use any Biovest Biologic Product (or other product or intellectual property of Biovest or its Affiliates) is granted under this Agreement whatsoever. 

(b)        Sublicensee and Transferee Gross
Revenue.    Biovest shall cause each Sublicensee and Transferee to pay to Company, or its assigns, a perpetual contingent payment equal to 13.28% of the Aggregate Biovest Sublicensee/Transferee Contingent Payment (the
“Sublicensee/Transferee Contingent Payment” together with the Biovest Contingent Payment, the “Contingent Payments”). For the avoidance of doubt, no contingent payment right is granted to Company hereunder with
regard to any Biovest activity other than the Biovest Biologic Products, and no right, interest, or license to use any Biovest Biologic Product (or other product or intellectual property of Biovest or its Affiliates) is granted under this Agreement
whatsoever. 
 3.2        Term of Contingent Payment
Obligations.    The Biovest Contingent Payments and the Sublicensee/Transferee Contingent Payments shall continue for so long as Biovest or its Affiliates, Sublicensees or Transferees, as applicable, manufacture, sell,
commercialize, or license any Biovest Biologic Product, provided that the Biovest Contingent Payment and the Sublicensee/Transferee Contingent Payment shall terminate as to any Biovest Biologic Product that is the subject of a Full Product Sale as
of the effective date of the Full Product Sale, subject to the payment to Company or its assigns of the Biovest Contingent Payment derived from such Full Product Sale, including any Biovest Contingent Payment with respect to any Gross Revenues
received by Biovest or any of its Affiliates after the closing of such Full Product Sale. 

3.3        Payments of Contingent Payments. Contingent Payments shall be
paid no later than sixty (60) days following the end of the calendar quarter during which the applicable Gross Revenues for the Biovest Biologic Products are actually received by Biovest or its Affiliate, Sublicensee or Transferee, as
appropriate. 
 3.4        Place of Payment. All Contingent
Payments due shall be payable in U.S. Dollars by wire transfer to a bank account designated by Company from time to time. Biovest shall convert all non-U.S. Dollar sales to U.S. Dollars using the average

  
 6 

 
exchange rates quoted in the Wall Street Journal for the final day of each month in the relevant period for which the Contingent Payment is being paid. In the event payment of any Contingent
Payment is restricted or prohibited by the laws or regulations of a particular country, then, to the extent of such a restriction or prohibition, Contingent Payments shall be paid to Biovest, any Sublicensee or any Transferee, as applicable, in that
country and in the currency of said country into an account to be designated by Biovest, such Sublicensee or such Transferee, as applicable. 
 3.5        Taxation of Payments. 
 (a)        Insofar as any payment that is due under this Agreement is subject to any tax, duty, levy, or other government imposition, the Party receiving the
payment agrees to bear any and all such taxes, duties, levies or impositions. Each Party hereby authorizes the other Party to withhold such taxes, duties, levies or impositions from the payments in accordance with this Agreement if Biovest, any
Sublicensee, any Transferee or Company is required to do so under the laws of the United States or any country where such taxes, duties, levies or impositions are payable. Whenever a Party deducts such tax, duty, levy or imposition from any payments
due, then it shall furnish the other Party with a certificate showing the payment thereof to the United States or any applicable country. 
 (b)        In the event any payments which are due under this Agreement are subject to value added taxation by any government, then the Party receiving the payment
shall bear such value added tax in full and the Party making the payment shall be reimbursed therefor. If appropriate, the Party receiving payment may add such value added taxes to its royalty accounts, provided such value added taxes are credited
against the other Party’s value added tax debt and the other Party is reimbursed in full with respect thereto. Notwithstanding anything herein to the contrary, the Party making the payment shall have no liability for any value added tax
directly or indirectly relating thereto. 
 (c)        In the event any
payment is subject to a withholding or other income tax in any country, promptly following becoming aware of the applicability of any such tax, the Party making the payment shall so advise the other Party. The Party receiving the payment shall have
the right to contest such tax or any such proposed withholding with the appropriate governmental body and the other Party shall provide, at receiving Party’s expense, reasonable cooperation in any such contest. The Parties shall provide each
other with such receipts or other evidence of any tax withheld as is necessary to claim any credit or deduction available to it in other jurisdictions. Payments shall only be reduced for withholding taxes imposed by the jurisdiction out of which the
payment is directly made. 
 (d)        The Parties hereto agree that,
for U.S. federal income tax purposes, this Agreement shall be treated as a contract described under Section 483 of the Internal Revenue Code, and that no U.S. federal income tax shall be withheld from any payment

  
 7 

 
made hereunder, provided that in the case of a payment made to a non-U.S. party, such non-U.S. party shall have furnished to the party making the payment a properly-completed Form W-8BEN.

 3.6        Interest.    All payments due
hereunder that are not paid when due and payable as specified in this Agreement shall bear interest at an annual rate equal to the prime rate (the “Prime Rate”) for U.S. dollar deposits in effect from time to time, as published
daily in the Wall Street Journal plus 5%, compounded monthly from the date due until paid, or at such lower rate of interest as shall then be the maximum rate permitted by applicable law. 

3.7        Right to Documentation.    Upon request,
Company shall have the right to request reasonable documentation of Biovest’s calculations to determine Biovest’s Gross Revenue, to request reasonable documentation of any Sublicensee’s or Transferee’s calculations to determine
such Sublicensee’s or Transferee’s Gross Revenue, and to request discussion of such calculations with appropriate representatives of Biovest or its Sublicensees or Transferees, as applicable. 

3.8        Records Retention. 

(a)        Biovest shall keep complete and accurate records pertaining to
Biovest’s, Sublicensee’s and Transferee’s Gross Revenue for a period of three (3) calendar years after the year in which such revenue was derived, and in sufficient detail to permit Company to confirm the accuracy of the Biovest
Contingent Payment and the Sublicensee/Transferee Contingent Payment calculations hereunder. Such records shall be available at all reasonable times for inspection by Company or its representatives for verification of the Biovest Contingent Payment
and the Sublicensee/Transferee Contingent Payments or compliance with other aspects of this Agreement. 

(b)        Biovest shall cause each Sublicensee and Transferee to keep complete
and accurate records pertaining to such Sublicensee’s or Transferee’s Gross Revenue for a period of three (3) calendar years after the year in which such revenue was derived, and in sufficient detail to permit Company to confirm the
accuracy of the Sublicensee/Transferee Contingent Payments calculations hereunder. Biovest shall cause such records to be available at all reasonable times for inspection by Company or its representatives for verification of the
Sublicensee/Transferee Contingent Payments or compliance with other aspects of this Agreement. 

3.9        Audit Request.    At the request of
Company, Biovest and/or its Affiliates shall permit, and Biovest shall cause each of its Sublicensees and Transferees to permit, an independent, certified public accountant appointed by Company and acceptable to Biovest (or its Affiliates,
Sublicensees or Transferees, as applicable), at reasonable times and upon reasonable notice, to examine those records and all other material documents relating to or relevant to Gross Revenue in the possession or control of Biovest, its

  
 8 

 
Affiliates, Sublicensees or Transferees, for a period of three (3) years after Contingent Payments have accrued, as may be necessary to: (i) determine the correctness of any report or
payment made under this Agreement; or (ii) obtain information as to the Contingent Payments payable for any calendar quarter in the case of Biovest’s, its Affiliate’s or its Sublicensee’s or Transferee’s failure to report or
pay pursuant to this Agreement. Said accountant shall not disclose to Company any information other than information relating to said reports and Contingent Payments. Results of any such examination shall be made available to the Company and Biovest
and any Sublicensee or Transferee, as applicable. Company shall bear the full cost of the performance of any such audit, unless such audit demonstrates underpayment of Contingent Payments by Biovest or its Sublicensee or Transferee of more than ten
percent (10%) from the amount of the original Contingent Payment made by Biovest or its Sublicensee or Transferee, as applicable. In such event, Biovest or its Sublicensee or Transferee, as applicable, shall bear the full cost of the
performance of such audit. 
 3.10        No Double Contingent
Payments. In order to prevent the application of a double Contingent Payment hereunder, no Contingent Payment will be payable on sales of Biovest Biologic Products by Biovest or any of its Affiliates (a “Biovest Party”) to
another Biovest Party. 
 ARTICLE 4 - CONFIDENTIALITY 

4.1        Use of Name. Company agrees not to use, directly or indirectly,
Biovest’s name or information without Biovest’s prior written consent, except as part of its required filings or in connection with a discussion of the business, as consolidated, of Company or any of the Lenders. Biovest agrees not to use,
directly or indirectly, Company’s or any of the Lenders’ names or information without Company’s prior written consent. Notwithstanding the foregoing, Company or any of the Lenders and Biovest may include an accurate description of the
terms of this Agreement to the extent required under federal or state securities laws or other mandatory disclosures. 
 4.2        Confidentiality; Exceptions. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing, the Parties agree that,
for the Term of this Agreement and for three (3) years thereafter, the receiving Party shall keep completely confidential and shall not publish or otherwise disclose, and shall not use for any purpose other than proper performance hereunder,
any information furnished to it by the other Party pursuant to this Agreement, except to the extent that it can be established by the receiving Party by competent proof that such information: 

(a)        was already known to the receiving Party, other than under an
obligation of confidentiality, at the time of disclosure by the other Party; 

(b)        was generally available to the public or otherwise part of the public
domain at the time of its disclosure to the receiving Party; 

  
 9 

 (c)        became generally
available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; 

(d)        was disclosed to the receiving Party, other than under an obligation
of confidentiality, by a Third Party who had no obligation to the disclosing Party not to disclose such information to others; or 
 (e)        was independently developed by or for the receiving Party by Persons not having access to such information, as determined by the written records of such
party. 
 ARTICLE 5 - INDEMNIFICATION 
 5.1        Indemnification by Biovest.    Biovest shall defend, indemnify and hold Company and each of the Lenders and their respective
officers, directors, employees and consultants harmless from and against any and all claims, suits or causes of action of Third Parties (collectively, “Third Party Claims”) for liability, damages, losses, costs and expenses
(including the costs and expenses of attorneys and other professionals), at both trial and appellate levels, relating to Biovest’s and its Affiliates’ and Sublicensees’ activities related to the Biovest Biologic Products contemplated
under this Agreement, including, but not limited to, breach of the representations, warranties and obligations of Biovest hereunder. The foregoing indemnification shall not apply to any claims to the extent caused by the gross negligence or willful
misconduct of Company. 
 5.2        Notice. In the event of
indemnification under Section 5.1, Company shall: (i) promptly inform Biovest of the Third Party Claim, (ii) permit Biovest to assume direction and control of the defense or claims resulting therefrom (including the right to settle it
at the sole discretion of Biovest), and (iii) cooperate as reasonably requested (at the expense of Biovest) in the defense of the Third Party Claim. 
 5.3        Insurance. 
 (a)        Prior to the first sale of any Biovest Biologic Products by Biovest under this Agreement, Biovest shall obtain and maintain broad form comprehensive
general liability insurance and licensed product liability insurance with a reputable and financially secure insurance carrier, subject to approval by Company, to cover such activities of Biovest under this Agreement. Such insurance shall provide
minimum annual limits of liability of $3,000,000 per occurrence and $5,000,000 in the aggregate with respect to all occurrences being indemnified under this Agreement. Such insurance policy shall name Company as an additional insured and shall be
purchased and kept in force for the period of five (5) years after the cessation of sales of all Biovest Biologic Products under this Agreement. 

  
 10 

 (b)        At Company’s
request, which shall not be more frequently than annually, Biovest shall provide Company evidence of any insurance obtained pursuant to this Section 5.3. 
 ARTICLE 6 - TERM; TERMINATION 

6.1        Term. This Agreement shall commence as of the Effective Date
and shall continue for so long as Biovest, its Affiliates, Sublicensees or Transferees manufacture, sell, commercialize, or license any of the Biovest Biologic Products and satisfy all of their obligations herein or under the terms of any sublicense
or similar agreement with Biovest (the “Term”); provided that this Agreement shall terminate as to any Biovest Biologic Product that is the subject of a Full Product Sale as of the effective date of the Full Product Sale, subject to
the continuing payment of any Biovest Contingent Payment arising out of such Full Product Sale as required by Section 3.2 of this Agreement. 
 6.2        Surviving Obligations. This Agreement and the obligations set forth herein shall be binding on the survivor of any merger or consolidation of
Biovest or the purchaser of all or substantially all of the assets of Biovest and any of its Affiliates (collectively, the “Biovest Assets”); provided that, this Agreement shall not be binding on any such purchaser if in connection
with such asset sale at the closing thereof, the Company shall have received payment of the Biovest Contingent Payment based on that portion of the purchase price paid by the purchaser for all or substantially all of the Biovest Assets that is
allocable to the Biovest Biologic Products along with any related goodwill (the “BBP Purchase Price Allocation”) and the Company shall be entitled to receive the Biovest Contingent Payment with respect to any post-closing purchase
price or similar payments to be made by the purchaser with respect to the BBP Purchase Price Allocation. The BBP Purchase Price Allocation shall be acceptable to Company and shall be included in any asset purchase agreement for the sale of all or
substantially all of the Biovest Assets. If the Parties are unable to agree upon the BBP Purchase Price Allocation, the determination thereof shall be subject to arbitration under Section 7.11(b) hereof. 

ARTICLE 7 - MISCELLANEOUS PROVISIONS 
 7.1        Sublicense Agreements. Biovest covenants and agrees that each sublicense agreement with any Sublicensee or any agreement with any Transferee with
respect to the sale, license or transfer of any Biovest Biologic Product shall include an agreement from the Sublicensee or Transferee to be bound by the terms of Sections 3.1(b), 3.2, 3.3, 3.4, 3.5, 3.6, 3.7, 3.8(b), 3.9, 7.11 and 7.12 of this
Agreement, and that the Company is a third party beneficiary of any such sublicense, transfer or sale agreement with the right to enforce the terms thereof against the Sublicensee or Transferee, as the case may be. Biovest shall, promptly following
the execution and delivery of any sublicense with any Sublicensee or a transfer or sale agreement with any Transferee with respect to any Biovest Biologic Products, provide a copy to Company of such sublicense or agreement. 

  
 11 

 7.2        Relationship of
Parties. Nothing in this Agreement is or shall be deemed to constitute a partnership, agency, employee or joint venture relationship between the Parties. No Party shall incur any debts or make any commitments for the other, except to the extent,
if at all, specifically provided herein. 

7.3        Assignment. Except as otherwise provided herein, neither this
Agreement nor any interest hereunder shall be assignable by any Party without the prior written consent of the other, which approval is not to be unreasonably withheld; provided, however, that either Party may assign this Agreement to any
wholly-owned subsidiary or to any successor by merger or sale of substantially all of its assets to which this Agreement relates in a manner such that the assignor shall remain liable and responsible for the performance and observance of all its
duties and obligations hereunder. This Agreement shall be binding upon the successors and permitted assigns of the parties and the name of a Party appearing herein shall be deemed to include the names of such Party’s successors and permitted
assigns to the extent necessary to carry out the intent of this Agreement. Any assignment not in accordance with this Section 7.3 shall be null and void. The right to any payments made hereunder may be transferred only through a book entry
system maintained by Biovest or its agent. For such purpose, a book entry system is a record of ownership that identifies the owner of an interest in the obligation. 

7.4        Further Actions. Each Party agrees to execute, acknowledge and
deliver such further instructions, documents and agreements, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement. 

7.5        Force Majeure. Neither Party shall be liable to the other for
loss or damages nor have any right to terminate this Agreement for any default or delay attributable to any act of God, flood, fire, explosion, strike, lockout, labor dispute, shortage of raw materials, casualty, accident, war, revolution, civil
commotion, act of public enemies, blockage or embargo, injunction, law, order, proclamation, regulation, ordinance, demand or requirement of any government or subdivision, authority or representative of any such government, or any other cause beyond
the reasonable control of such Party, if the Party affected shall give prompt notice of any such cause to the other Party. The Party giving such notice shall thereupon be excused from such of its obligations hereunder as it is thereby disabled from
performing for so long as it is so disabled and for thirty (30) days thereafter. Notwithstanding the foregoing, nothing in this Section 7.5 shall excuse or suspend the obligation to make any payment due hereunder in the manner and at the
time provided. 
 7.6        No Trademark Rights. Except as
otherwise provided herein, no right, express or implied, is granted by this Agreement to use in any manner the name “BiovaxID”, “Autovax”, “AutovaxID” or “Biovest” or any other trade name or trademark of the
other Party in connection with the performance of this Agreement. 

  
 12 

 7.7        Public
Announcements. Except as required by law or as may otherwise be required in connection with the Bankruptcy Cases, neither Party shall make any public announcement concerning this Agreement or the subject matter hereof without the prior written
consent of the other, which shall not be unreasonably withheld. In the event of a required public announcement, the Party making such announcement shall provide the other with a copy of the proposed text prior to such announcement. 

7.8        Notices.    Any notice required or
permitted to be given or delivered hereunder or by reason of the provisions of this Agreement shall be in writing and shall be deemed to have been properly served if: (a) delivered personally, (b) delivered by a recognized overnight
courier service instructed to provide next-day delivery, (c) sent by certified or registered mail, return receipt requested and first class postage prepaid, or (d) sent by facsimile transmission followed by confirmation copy delivered by a
recognized overnight courier service the next day. Such notices, demands and other communications shall be sent to the addresses set forth below, or to such other addresses or to the attention of such other person as the recipient Party has
specified by prior written notice to the sending Party. Date of service of such notice shall be: (i) the date such notice is personally delivered or sent by facsimile transmission (with issuance by the transmitting machine of confirmation of
successful transmission), (ii) three days after the date of mailing if sent by certified or registered mail, or (iii) one day after date of delivery to the overnight courier if sent by overnight courier. Unless otherwise specified in
writing, the mailing addresses of the Parties shall be as described below: 
 (a)    If to
Biovest, addressed to: 
   Biovest International, Inc. 

  Suite 350 
   324 South Hyde Park Ave. 
   Tampa, Florida
33606 
   Attention: Samuel S. Duffey, President 

  Facsimile: 813-258-6912 

  With a copy to: 
   Charles A. Postler, Esq. 
   Stichter,
Riedel, Blain & Prosser, P.A. 
   110 East Madison Street, Suite 200 

  Tampa, Florida 33602 

  Facsimile: 813-228-1811 

  and 
   Foley & Lardner LLP 
   100 North
Tampa Street, Suite 2700 
   Tampa, Florida 33602 

  Attention: Curt P. Creely, Esq. 

  
 13 

   Facsimile: 813-221-4210 

(b)    If to Company, addressed to: 

  Erato Corp. 
   c/o Laurus Capital Management LLC 

  875 Third Avenue, 3rd Floor 
   New York, New York 10022 

  Attention: Portfolio Services 

  Facsimile: 212-581-5037 

  With a copy to: 
   Marc P. Press, Esq. 
   Cole, Schotz,
Meisel, Forman & Leonard, P.A. 
   Court Plaza North 

  25 Main Street 
   Hackensack, New Jersey 07601 
   Facsimile:
201-678-6271 
 7.9        Amendment. No amendment, modification
or supplement of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party. This Agreement may be executed in a series of counterparts, all of which, when taken together,
shall constitute one and the same instrument. 

7.10      Waiver.    No provision of this Agreement shall be
waived by any act, omission or knowledge of a Party or its agents or employees except by an instrument in writing expressly waiving such provision and signed by the waiving Party. 

7.11      Dispute Resolution. 

(a)        Senior Officials. The Parties recognize that a bona fide
dispute as to certain matters may from time to time arise during the Term of this Agreement which relates to either Party’s rights and/or obligations hereunder. In the event of the occurrence of such a dispute, either Party may, by notice to
the other Party, have such dispute referred to their respective senior officials designated below or their successors, for attempted resolution by good faith negotiations within thirty (30) days after such notice is received. Said designated
senior officials are as follows: 
 For Company: Patrick Regan, Senior Managing Director 

For Biovest: Samuel S. Duffey, President 

  
 14 

 In the event the designated senior officials are not able to resolve such
dispute within the thirty (30) day period, either Party may invoke the provisions of Section 7.11(b). 
 (b)        Arbitration.    In the event of any dispute, difference or question arising between the Parties in connection with this
Agreement, the construction thereof, or the rights, duties or liabilities of either Party, and which dispute cannot be amicably resolved by the good faith efforts of both Parties, then such dispute shall be resolved by binding arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitration panel shall be composed of three arbitrators, one of whom shall be chosen by Biovest, one by Company, and the third by the two so chosen. If
both or either of Company and/or Biovest fails to choose an arbitrator or arbitrators within fourteen (14) days after receiving notice of commencement of arbitration or if the two arbitrators fail to choose a third arbitrator within fourteen
(14) days after their appointment, the then President of the American Arbitration Association shall, upon the request of both or either of the Parties to the arbitration, appoint the arbitrator or arbitrators required to complete the board or,
if he shall decline or fail to do so, such arbitrator or arbitrators shall be appointed by the New York office of the American Arbitration Association. The decision of the arbitrators shall be by majority vote and, at the request of either
Party, the arbitrators shall issue a written opinion of findings of fact and conclusions of law. Costs shall be borne as determined by the arbitrators. Unless the Parties to the arbitration shall otherwise agree to a place of arbitration, the place
of arbitration shall be at New York, New York, U.S.A. The arbitration award shall be final and binding upon the Parties to such arbitration and may be entered in any court having jurisdiction. 

7.12        Governing Law. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Delaware. 

7.13        Severability. Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent
of such prohibition or invalidity, without invalidating the remainder of this Agreement. 

7.14        Entire Agreement of the Parties. This Agreement constitutes
and contains the entire understanding and agreement of the Parties and cancels and supersedes any and all prior negotiations, correspondence, understandings and agreements, including, without limitation, the agreements governing the Prepetition
Biovest Royalty, whether oral or written, between the Parties respecting the subject matter hereof. 
 [remainder of page
intentionally left blank] 

  
 15 

 IN WITNESS WHEREOF, each of the Parties has caused this Contingent Payment
Agreement to be executed by its duly authorized officer as of the day and year first above written. 
  

			
	BIOVEST INTERNATIONAL, INC.
		
	By:	 	 /s/ David Moser

	Name: David Moser
	Title: Secretary
	
	ERATO CORP.
		
	By:	 	 /s/ Patrick Regan

	Name: Patrick Regan
	Title: Authorized Signatory

  
 16

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